Costly Marketing Mistakes You Should Avoid

[ejayz]

Many small business start-ups fail because of poor use of capital. So informing yourself about the pitfalls to avoid is vital if you want to be one of the survivors!

The following list of 10 Marketing Mistakes is subjective and the order is not significant. Other authors will have their own list, so take the time to peruse our resources below and take advantage of the wealth of marketing information on the Internet.

MISTAKE #1: Forgetting to present a professional image

“You only have one chance to make a good first impression.” This may be a cliché, but it’s the truth. Potential customers will make a decision whether to call you or buy from you based on the most trivial details. If your written materials (business cards, flyers, brochures, printed ads) are sloppy and homespun, readers may assume that your services or products are equally substandard. If your personal appearance is not clean and neat when you go out of your house, some will jump to negative conclusions about the quality of your business. If your young children answer your business telephone or if callers are distracted by “family noises” in the background when they call, your image may be tarnished.

At the risk of getting too basic, please don’t forget to provide complete contact information on every promotional item that you produce. An ad, pencil, mug or T-shirt imprinted with your business name without a phone number is not maximizing the money you spent. If you have a Website, its URL should always be used. If you have a slogan, use it consistently so that prospects will begin to associate it with your business. Create a consistent and professional image, and it will become a foundation for business growth.

MISTAKE #2: Focusing on yourself or your company instead of on your prospect or customer

This is probably the most common—and most preventable—marketing mistake that businesses make. In their ads, they talk about themselves, their product, their service, their length of time in business, yet they fail to address what their product or service can do for their customers. Can you save your prospect money? Can you solve a problem they have? Can you make their life easier or their own business more profitable? That’s what a potential customer really wants to know: “What can you do for me?” Never forget this.

MISTAKE #3: Emphasizing the wrong elements in your ads or promotional literature

What stands out in your ad when a reader is perusing the newspaper or scanning a Website? Far too often, it’s your company name or your fancy logo. The rule of thumb for a written ad is to grab the reader’s attention first—with a compelling headline and a supporting sub-headline—then provide details elsewhere in the ad or provide an easy way for them to get more free information.

Example:

ARE YOU PAYING HIGH ENERGY BILLS AND STILL FEELING COLD IN YOUR HOME?

Our Acme woodstove will keep you comfortable for pennies a day!

Writing good ad copy is a complex topic about which entire books have been written. If you feel this is an area of your business that needs improving, make it a point to learn more about it from Internet experts or your local business library.

MISTAKE #4: Cutting your marketing budget during slow times

It’s such a temptation--when your sales are down and so many of your expenses are beyond your control, you think the only place to cut corners is in your marketing budget. Yet this would be cutting off the very best means for bringing new customers into your business, and without a continuous flow of new customers, your business will eventually shrivel up and blow away.

Keep your marketing campaign steady and consistent. When cash flow is tight, consider moving to less expensive—and perhaps less traditional—marketing venues, but never cut off your marketing all together. If a dairy farmer started reducing the amount of feed he gave his cows, he would soon start seeing a reduction in milk production and a deterioration of his business. Don’t let temporary cash flow shortages put you into a downward business spiral.

MISTAKE #5: Not giving prospects a compelling reason to take action

Even if you have gotten your prospects’ attention and convinced them that your product or service can provide a solution for them, you must motivate them to take action immediately—before their attention is diverted to something else.

This can be done by offering such incentives as discounts, rewards/bonuses, or “limited time” offers. You’ve probably seen television shopping ads that do this beautifully: “Order today and we’ll also send you an additional…or two for the price of one...or free shipping, etc.” Give your prospects a compelling reason to act now, and you’ll greatly increase the chance that they will do so.

MISTAKE #6: Neglecting current customers

Keeping your current customers satisfied so they will give you repeat business is much less expensive than getting new customers, yet so many business owners neglect this powerful fact. These simple activities can help:

· Stay in touch with your customers through mail, newsletters, or phone calls.

· Follow up after you’ve made a sale to see if they are satisfied.

· Return phone calls promptly.

· Correct problems immediately.

· Ask for testimonials and keep a file for future use in your marketing literature (See Mistake #7 below). One testimonial from a popular or influential member of your community can be more effective than many other ads combined.

Negative comments from dissatisfied customers can severely hurt you, so keep your customers happy!

MISTAKE #7: Not using testimonials in your marketing literature

Building credibility is one of your main tasks as a business owner, but this can be tough when you’re new and have no positive track record. Using testimonials in your marketing materials can be an extremely effective way of gaining a prospect’s confidence.

Whenever you get positive feedback from a customer, ask if you may quote them. As mentioned in #6 above, keep a file of these and use them in your next ad, flyer, or brochure. Failure to do this is wasting a free and powerful marketing tool

MISTAKE #8: Not offering a guarantee

The fear of being dissatisfied or taken advantage of is frequently the underlying reason why prospects do not buy, yet many small business owners fear offering a guarantee because they believe it will encourage more returns.

Marketing research has shown that the increased sales from offering a guarantee will more than offset any increase in percentage of returns. Anything that converts prospects to customers more easily is to your advantage, and a customer who knows he can return something he doesn’t like is much more likely to make a purchase in the first place.

MISTAKE #9: Not testing your market and tracking your results

Far too many business owners believe that their product or service will be snatched up by thousands of customers without having done the market research to support this belief. They spend thousands of dollars promoting something, only to find that the market is not what they thought or that a modification would have greatly improved the product’s marketability.

Use the Internet to look for published information on products/services like yours. Get free feedback from chat rooms. Take surveys (your local business school may have students who will design and conduct a survey for you as a project for a very reasonable fee). Put together a focus group composed of prospects from your target market.

Virtually ALL effective marketers track their ads and marketing methods so they know which ones pull and which ones don’t. You can easily spend thousands of dollars on promotions that aren’t producing results, but if you don’t know which ones they are, you’ve wasted money. Ad results can be measured by using a code of some sort. Direct mail results can be measured by using response cards or coupons. As in market testing, surveys and focus groups can also be used to provide marketing feedback. Think about how you can track your results when you plan a marketing strategy.

MISTAKE #10: Not diversifying your marketing methods

Plan your marketing budget so that it covers as broad a range of marketing methods as you can afford. When you use only one or two methods, you could be severely limiting your exposure to the maximum number of potential customers. Direct mail, print, radio, and Internet ads are important, and sometimes TV and magazine ads can be effective if they are carefully targeted and professionally done.

Don’t forget less obvious ways of promoting your business:

· Get involved with community organizations and charities.

· Network at chamber of commerce gatherings or business associations.

· Offer yourself as a speaker or presenter--find out if there is a speaker’s bureau in your area.

· Offer low-cost or free seminars.

· Throw a party to celebrate your opening, your business anniversary, or a national holiday.

· Insert small flyers in every bill you pay.

· Sponsor local teams.

· Participate in local discount cards.

· Partner with other small businesses to put on an event or sponsor an activity.

 

good informed article

But how do I keep 2 hungry Burmese quite while on the phone to a customer

 

[Calypso]

with an airpistol?

 

[ejayz]

Hi sirearl,

I'm not the expert in keeping pets quite while busy at work

Speak to someone who knows about feeding habits for your 2 hungry Burmes!

 

[directmarketingadvice]

In his seminars, Jay Abraham used to do "The Ten Biggest Marketing Mistakes Everyone Is Making and How to Avoid Them".

They were:

1. Not testing.
2. Running institutional advertising instead of direct response advertising.
3. Not ascertaining and developing your Unique Selling Proposition (USP) and articulating it clearly as an integral part of all of your marketing.
4. Not having a "back-end."
5. Failing to determine and address your customers' and prospects' needs.
6. Forgetting, or never recognizing, that you have to both sell and "educate" your way out of a business problem. You can't just cut the price.
7. Failing to make doing business with your company easy, appealing, desirable and even fun.
8. Failing to tell customers the "reasons why."
9. Not sticking with marketing campaigns that are still working.
10. When preparing ads, TV and radio commercials or direct mailings, forgetting to focus on the intended customer and NO ONE ELSE.

Steve

 

[Chris Kaday]

Excellent posting which everyone should read. I could add another - Not fully understanding your medium.
Most marketers do not understand the medium they are using. Nowhere is this more obvious than with the web. Few companies (even large ones) understand even the basics of improving web site visibility, gaining interest, generating a quality response and analysing performance. The opportunities to stimulate enquiries and sales through the web have never been better but the rules of the game are changing daily and you have to keep up.
Chris Kaday
Business mentor

 

In his seminars, Jay Abraham used to do "The Ten Biggest Marketing Mistakes Everyone Is Making and How to Avoid Them".

They were:

1. Not testing.
2. Running institutional advertising instead of direct response advertising.
3. Not ascertaining and developing your Unique Selling Proposition (USP) and articulating it clearly as an integral part of all of your marketing.
4. Not having a "back-end."
5. Failing to determine and address your customers' and prospects' needs.
6. Forgetting, or never recognizing, that you have to both sell and "educate" your way out of a business problem. You can't just cut the price.
7. Failing to make doing business with your company easy, appealing, desirable and even fun.
8. Failing to tell customers the "reasons why."
9. Not sticking with marketing campaigns that are still working.
10. When preparing ads, TV and radio commercials or direct mailings, forgetting to focus on the intended customer and NO ONE ELSE.

Steve

Steve whilst having admiration for Mr Abrahams and his undoubted success .

I do wonder why he shouts so loudly about his methods to all mankind.

If I was in his position ,I think I would tend to keep quite about my methods,to enable me to clean up in the areas neglected by other business's

Reminds me a bit of the tipsters at a race course ?

And I have heard he takes 25% of the profits from business's he works on.

sounds like a snake oil salsman to me and a cheap one at that !!

 

[Chris Kaday]

Looks pretty good stuff to me although have not come across the gentleman. 25% of profit? Well if this is 25% of additional profit generated through his involvement then they have 75% of something they would not otherwise have got. Sounds like a good deal to me but then I do similar results only deals when the circumstances for growth ramp up are right. No result no reward. Regarding your point about putting it out there - why not. Reading it and doing it are two very different things. My if people only implemented 00001% of the great stuff in the management books they have on their shelves the business world would be a different place!

 

[directmarketingadvice]

If I was in his position ,I think I would tend to keep quite about my methods,to enable me to clean up in the areas neglected by other business's

I guess he taught it to promote himself and his consulting ($5,000 an hour, last time I heard)

Plus, when he did seminars, he used to charge up to $5,000 a head.

Assuming 100 attendees, that's $500,000 for 3 day's work (actually he'd share the stage with 2 or 3 others, so he wasn't doing all the work).

So, that might have been a reason too!

Well if this is 25% of additional profit generated through his involvement then they have 75% of something they would not otherwise have got

Chris:

25% of increased profit.

His pitch was

"If I could make you a dollar, a dollar you would never otherwise have had, could I keep a quarter?"

It's a fair way to work, but it presupposes that someone actually does the work and makes things happen.

I remember listening to one of his proteges who was saying that it just didn't work for him (the protege) unless he charged a deposit up front.

If he didn't, the other party would usually just sit on the information and it would just be a waste of time and effort.

To paraphrase your point: "hearing it and doing it are two very different things".

Steve

 

Looks pretty good stuff to me although have not come across the gentleman. 25% of profit? Well if this is 25% of additional profit generated through his involvement then they have 75% of something they would not otherwise have got. Sounds like a good deal to me

Regarding your point about putting it out there - why not. Reading it and doing it are two very different things. My if people only implemented 00001% of the great stuff in the management books they have on their shelves the business world would be a different place!

Chris points

1 if I make you a pound you would never have had .I want 50 pence

2 speading it around makes for more competition.:|

one don't see AMD telling Intel how they make there chips

Earl

 

[Chris Kaday]

yes precisely Earl. If he makes people a pound he wants 25p. Think that is what I was saying.

As far as spreading it around I probably will never change you on that one. However there is a difference between adding value and giving away the crown jewels. It is like with networking. Most people want to get something when the secret is to give something.

Good luck

Chris

 

[Calypso]

It is like with networking. Most people want to get something when the secret is to give something.

Good luck

Chris

Here, here, Chris! On the money there. Put something in and you'll get something out. I'm not trading yet, butstill try and contribute here and other places, so that I may get something back or even learn as I go!

 

[PintoPotts]

Nice article, probably includes some errors we have all been guilty of making!

 

[benobrien]

Hi ejayz,

can you have a look at my site and give me an opinion on what you think please.

adflyer. co.uk

 

[blazing_air]

Great post ejayz
It has certainly made me think about the content of my site, and the need to change it's focus away from me and towards the customer.
Thank you for sharing this.

Carl

 

[Chris Kaday]

I came a cross a marketing error this week which I suggest comes before all the ones mentioned excellent though they are and that is strating a business first and thinking about the marketing second. I get the impression that many in here are guilty of this to a greater or lesser extent. You can see this in thread after thread. I even see it in the investment prospectus of pretty large companies. People seem to have difficulty grasping the simple fact that getting business comes before doing business.

Chris Kaday

 

[lajlaj]

Thank you for this post, I had seen a lot of this stuff before and forgotten it as usual! I had a little tweak with the website last night to make it more "you" than "us" focussed but feel a major rewrite coming on for both sites!

 

[maggy-may]

good article

 

[KateCB]

Burmese - feed them?????

 

The essence of marketing information ON
subjects like how to do marketing is:

(a) Give a way the essence of what needs doing
(b) Charge for the essence of how
(c) Charge a lot more for the precise details of how, with a couple of tools thrown into the deal
(d) Go high ticket for involvement with how ie mentoring

 

[simonr]

I score 9/10 on the lis... oh, no.... wait.... darn!

 

[weddingcrafter]

I came a cross a marketing error this week which I suggest comes before all the ones mentioned excellent though they are and that is strating a business first and thinking about the marketing second. I get the impression that many in here are guilty of this to a greater or lesser extent. You can see this in thread after thread. I even see it in the investment prospectus of pretty large companies. People seem to have difficulty grasping the simple fact that getting business comes before doing business.

Chris Kaday

Excellent point, Chris.

I see so many people in the creative crafts industries who spend huge amounts of time, energy and cash developing beautiful products and websites without first thinking about who their customers will be and how they will reach them.

On the flip side, I also see people with very ordinary products be very successful.

Alison

PS: our most costly marketing mistake - attending a wedding fair. Just didn't work for our products.

 

[Gabriel Topman]

Giving up can be a bad idea, when all you need to do is analyze the situation and test new approaches, if your Brand has not been damaged yet.

 

[Chris Kaday]

Certainly but in my experience of looking at businesses which have not met expectations more people should give up than go on - the facts are often there for all to see except themselves.

Chris Kaday

Giving up can be a bad idea, when all you need to do is analyze the situation and test new approaches, if your Brand has not been damaged yet.

 

Certainly but in my experience of looking at businesses which have not met expectations more people should give up than go on - the facts are often there for all to see except themselves.

Chris Kaday

100% agree,how many times does one hear of a business that goes on struggling year after year,causing stress and misery to the owner.

Your dream is only viable if it is also the dream of the public.

No hard and fast rules ,but if after 6 months your not making money/sales.

You should consider another business.


Earl

 

[Chris Kaday]

Good maxim Earl

Also it is not just the business owners who suffer stress and misery but the poor family and friends around them.

Chris Kaday

 

[Gabriel Topman]

You just never know when your small niche market might start to come around.

so, I would bench the product and automate its processes as much as possible. before going onto something else! - building my portfolio of businesses as I go along.

I absolutely agree that 6 months is more than enough to make that decision, considering some needs are just not realized by the customers. But I would give the business 2 years to grow itself whilst it is on the bench!

Bearing in mind that Google Trusts older domain names than brand new .coms that could easily be a spam sites.

Whilst I agree with you guys, after 2 years you can just separate “Cash Cows from the Dogs”

Obviously businesses with high overheads should pull out before it is too late.

 

I was refering to a single business project.If as you say you have very little overhead or effort let it run .

I have several sites that produce very little revenue but as they are on the plus side of web hosting costs e.t.c one should allow them to run as there importance on the web site will always increase.

I guess I am talking about sites that have already obtained a high ranking but are still producing Ziltch.

Earl