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Guerrilla Marketing: Now More Than Ever |
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By Mark S. A. Smith |
It's truly a jungle out there. With the crash of the global
economy and the aftermath of September 11, finding business is
brutal (and seems to be getting tougher). If you're like most
companies, you're minimizing the marketing budget, slashing
staff and battling for business. The ruthless competition
squeezes your profits, and customers drive a hard bargain on
every deal. What can you do to compete and make a fair profit?
Market like a guerrilla.
So what exactly is guerrilla marketing, anyway? It all started
back in the early '80s, when Jay Conrad Levinson wrote his first
book with the same name. As a top advertising executive
responsible for some of the world's most successful marketing
campaigns, Levinson studied what small businesses did to
profitably compete with a limited budget. He discovered that
successful entrepreneurs used strategies and tactics similar to
guerrilla freedom fighters. They use their limited resources to
maximum advantage. They never fight the enemy directly, but
instead choose to strike at the competition's weaknesses. They
operate with the utmost efficiency and integrity, but they
refuse to play by the normal rules of engagement.
In this spirit, here are nine fundamental strategies of Guerrilla
Marketing. Embrace them all and you'll be a success. Miss just one
and you could be an also-ran in your industry. And be sure to ask
your counselor how you can incorporate effective promotional
products into the mix.
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Time, Energy And Imagination
Instead of relying on money, power or brute force, guerrillas rely
on brain power. You may be facing competition with a marketing
budget larger than your entire annual sales. You could fret about a
lack of funds, unless you realize that you'll never be out-spent on
time, energy and imagination.
Everyone has the same number of hours in the day. Guerrillas
maximize the time they spend in contact with customers and prospects
because that's where the money is. Take this principle into account
when you select what promotional products to use. What can you
select that creates an impact and saves precious time for your
prospect? Perhaps it's a tool that delivers a short-cut, such as a
slide rule or a cross-reference table. Maybe it's combination
pen-highlighter for rapidly notating your catalog.
Guerrillas also maximize their personal energy. Vince Lombardi
observed: "Fatigue makes cowards of us all." You can create a
winning edge when you eat right, rest well and care for your body.
Healthy living is in, so consider this concept when approaching your
prospects. Select a logoed stress-reliever, massage tool, nutrition
bar or water bottle as your product. Finally, as Einstein pointed
out: "Imagination is more important than knowledge. Knowledge is
limited. Imagination encircles the world." Given this, guerrillas
often choose to abandon common knowledge and invent their own rules
and outcomes. Could you imagine doubling your business over the next
year? If you can, you've taken the first step to actually getting
there. Try this: Grab your calendar and look at today's date a year
from now. Imagine yourself heading out to a companywide celebration
because business has doubled from the year before. Take a moment to
review what you did that allowed you to achieve that. Sure, you'll
have to use your imagination to figure it out, and in the process
the wonderful ideas you'll create will help you get where you're
going.
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Psychology, Not Guesswork
Around 1880, retail genius John Wanamaker said, "I know that half of
my advertising is wasted - I just don't know which half." The good
news is that now we can track what works and what doesn't, so we no
longer have to guess. In the 1970s, 75% or more of marketing budgets
went into advertising. Now, because of lead tracking and analysis,
25% percent or less of the average budget is directed to
advertising, about 50% goes to trade promotions and another 25% gets
spent on consumer promotions, with a substantial proportion of the
budget moving to online marketing.
Guerrillas use practical, applied psychology to decide how to
approach prospects and motivate customers. They learn about and stop
doing what prospects dislike. They discover and do more of what
motivates customers. Here's how: Most businesspeople ask customers,
"How is everything?" The answer is usually, "Fine," which tells you
nothing. Instead, ask customers, "What one thing can I do to improve
your experience doing business with us?" Then listen. Don't make
excuses; your customer is telling you a secret to increasing your
business.
You can also use psychology to select promotional products. Use
customers and prospects to help choose what you'll use. No need for
a complex focus group; just ask customers which item on a list would
best serve them. Ask prospects which choice would have the most
impact and be most memorable. Please don't ask your salespeople to
make the decision. Since they're not paying customers, they won't
use the correct mindset, and you'll probably make a poor decision.
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The Only Yardstick Of Success
Often, advertising execs will discourse about exposure or cost per
thousand impressions. Knowing that they can't eat exposure or imbibe
impressions, guerrillas judge the quality of a marketing campaign
solely by the profits generated.
Guerrillas measure everything meaningful. They calculate the cost to
close a sale instead of the cost of a lead. They determine the
logoed products that produce the most new business and return the
most repeat business. They always conduct a small-scale campaign
before rolling out big time. No matter how cool a potential item, if
it doesn't help turn a profit, they pass on it in favor of something
perhaps more mundane but money-making.
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Gear To Small Business
Entrepreneurs are natural-born guerrillas. They apply these ideas
without a second thought. Small businesses can, in fact, do certain
things large corporations can't. For example, they can base their
marketing on listening to customers instead of being driven by an
ivory tower marketing department.
Consider this: Most of your clients are probably small businesses,
and your most successful customers could be entrepreneurial spirits
working a corporate culture. Also keep this in mind when you choose
imprinted products. How can you identify and deliver entrepreneurial
spirit to your customers? Perhaps with inspirational quotes. Maybe
by recognizing their contributions with an award. Could you collect
the best ideas of your best customers and turn that into something
special?
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No Mystique
Successful guerrilla marketing doesn't require an advanced degree, a
huge research budget or a committee of experts. All you need is
information from people who buy or who want to buy. Your marketing
strategy can be as simple as promising prospects what they want and
guaranteeing against what they don't. The principles of successful
marketing are simple, but they require diligence and work. Marketing
isn't an event; it's a process that continues as long as you're in
business.
Guerrillas also understand that the bell curve of customer behavior
means that 2% of customers will hate you no matter how hard you
work, and 2% will love you no matter how poorly you perform. Never
make marketing decisions based on that 4%. Concentrate on the 96%
you can truly serve. Sure, you remember more of the negative
comments than the positive ones, but now that you're aware of the
real ratios, you can place the put-downs in their proper context.
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Marketing Combinations Work
There's no single marketing method that works all the time or for
everyone. There are great prospects who won't listen to the radio,
don't accept telephone sales calls, or would never consider reading
direct mail. Marketing combinations do work, however, and
promotional products are definitely part of the mix.
The most potent products remind people who you are and how to reach
you when the need arises. For example, refrigerator magnets that
advertise pizza delivery or appliance repair services show up in the
right place at the right time. Tools and other useful items are in
your prospect's hand when they need you.
You can also use product samples as premiums. Estee Lauder uses this
approach with great success. Its products never go on sale,
maintaining margins and positioning value. But when you purchase $25
worth of product, you receive a gift bag worth $50 that contains
peewee-size samples. How can anyone pass up a deal like that -
especially if the bag they're in is imprinted?
And let people know you have the promotional product available. Sell
it in your catalog, mention it in your product packaging, feature it
on your Web site. Create contests giving it away as prizes. One
company that has been successful with this approach is Horizon
Organic Dairy. Its Web site address is printed on its milk cartons,
often along with an offer for consumers to win prizes like logoed
clothing and totebags for completing a quiz about their products.
What a great way to educate consumers and gather important data in
exchange for a gift that further advertises your firm.
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Mark S A Smith is a partner of the Guerrilla Group
Inc. in Boulder, CO. He is co-author of Guerrilla Trade Show
Selling, Guerrilla TeleSelling and Guerrilla Negotiating. You can
reach him at mark@GuerrillaGroup.com
COPYRIGHT © 2002 The Advertising Specialty Institute. All rights
reserved. |
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