Nowadays it seems like there are plenty of "social marketing experts" for hire. The explicit (or implied) promise is that if you get enough posts, likes and tweets, these modern-day wizards will magically solve your business problems.
This reminds me of the late 90s dot.com boom, and the promises I heard back then. Phrases like:
"It's a new era in business.... just get enough 'clicks' and 'eyeballs' to your website, and the profits will take care of themselves."
That advice didn't work real well for a lot of companies. Such as Pets.com... Contentville... Flooz... Kozmo.com, and other victims in the dot.com boneyard.
Clicks and eyeballs weren't enough to keep them in business. They still needed old-fashioned things like sales and cash flow.
A book was written about this dot.com graveyard by Phillip Kaplan titled F'd Companies. It chronicles the Alpha and Omega (beginning and end) of multiple companies with no product... experience... or realistic business model. Just hot air, blue sky and empty promises.
Todays 'tweets' and likes' seem to be the equivalent of the late 90s 'clicks' and 'eyeballs.' I'm not sold on the idea that if your Fan page is popular enough, you'll convert enough folks to purchase your product or service. Or that you can effectively communicate your marketing message in 140 characters or less.
I realize that you can write a short tweet or post that can get someone to a website or landing page. Social Media can be part of a sound marketing strategy, but it's not the be-all / end-all to your business challenges.
The biggest whopper I've heard from the Social Media Kool-Aid drinkers comes from the Head Twits themselves, Ev Williams and Biz Stone. Speaking last month to the "Tech Crunch Disrupt" conference, they had the chutzpah to tell capitalists in attendance to 'Stop stressing about how your business will make money. The money will come."
Ah yes, the Field of Dreams approach to business. Brilliant!
This quote is the leader in the clubhouse for the biggest load of BS I've heard in 2012. It's terrible advice, defies business fundamentals and common sense.
Why do I bring up the F'd Companies book and the Twitter quote? Because technology and good intentions aren't enough aren't enough to be successful in business. You have to put in enough consistent effort, and make sure that effort is guided by a sound business plan and fundamentals.
It's not enough to be a Facebook / Twitter / Other Social Media Outlet marketing expert... you have to know the fundamentals of good marketing to be considered an expert - or at the very least competent.
Preferably if you've learned those fundamentals from folks like Claude Hopkins and his book Scientific Advertising... John Caples and David Ogilvy, to name a few. Or more modern-day marketing wizards, such as Jay Abraham, Ted Nicholas, Gary Bencivenga, or John Carlton.
You really need to know the market you're selling to... what product or service(s) said market really wants... and what will motivate them to buy said product or service. If you hire a marketing consultant or copywriter to increase sales and cash flow, they darn well better know these three things - or else you're probably throwing your money away.
The moral of this story? I'll say it again: It's not enough to be a __________ marketing expert, and it's not the medium (or media) that make the difference... it's the rock-solid, time-tested marketing fundamentals put into action.
They've worked for all kinds of companies for over 100 years, and they can work for yours too. Give 'em a try. If done correctly, I think you'll like the results you see.
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Thursday, October 04, 2012
Tuesday, August 21, 2012
Why Groupon Should Have Listened To Claude Hopkins...
It looks like the honeymoon is over for Groupon, judging by this recent article at Slate.com. The stock price has dropped from over $31/share down to $5.36 and no profits to speak of. Instead, Groupon has an annual net loss of 27 cents a share. Just like the over-hyped dot.com stocks of the late 90s, this Social Media darling has had plenty of hype and hot air... but nothing in the way of earnings, or a good business model.
You may be asking: "Why should Groupon have listened to Claude Hopkins... who the heck was he... and why was/is he so important when it comes to marketing and business?"
Claude was one of the great advertising pioneers of the early 20th Century. He believed that advertising existed only to sell something, and the results should be measurable and justify the results it produced. (That sounds familiar... I wonder who else has been talking about that?)... but I digress.
Hopkins wrote the classic marketing book Scientific Advertising in 1923. What Claude said back then about advertising still applies today. If you're serious about marketing or business, you should read this book. I'm reading it for the fifth time, learning (and re-learning) solid marketing fundamentals.
Groupon's execs should have read what Claude wrote to avoid the problems they face today.
What are these problems? Lack of long-term, repeat customers that result from Groupon and "daily deal" advertising... small-business clients selling goods and services at a discount... then paying Groupon steep commissions - usually 50% of the already-discounted sales price.
Groupon's business model assumes that a company will sell a discounted "sample" of its product or service.... then customers will gladly pay full price on future buys. That doesn't make sense to me, and it didn't make sense to Claude.
Here's what he says in Chapter 13 - The Use of Samples:
"For the same reason some advertisers say, 'You buy one package, we will buy the other (Ed: Buy one, get one free).' Or they make a coupon good for part of the purchase price. Any keyed returns will clearly prove that such offers do not pay. Before a prospect is converted, it is approximately as hard to get half price for your article as to get the full price for it.
As Claude Hopkins reminds us, it's difficult (if not impossible) to pull this marketing feat off.
It's a great lesson for business owners, investors and marketers alike. Before you start-up or invest in any new or existing business, make sure it has a good long-term sustainable business model... and competent, experienced management.
Or if you consider hiring a marketing consultant or copywriter, ask them if they know who Claude Hopkins is. I can almost guarantee you that many of today's "social media experts" don't have a clue who Mr. Hopkins was... and why his words of wisdom are still so important today.
They know the ins and outs... likes and pokes... tweets and re-tweets of Facebook and Twitter... but I'm not convinced they truly know the "old-school" fundamentals of good marketing - which (if applied correctly) always work in any type of market or advertising medium.
That's what I'll cover in my next blog post, which talks about the difference between the medium and the marketing... and why it's so important for your business.
Until next time...
You may be asking: "Why should Groupon have listened to Claude Hopkins... who the heck was he... and why was/is he so important when it comes to marketing and business?"
Claude was one of the great advertising pioneers of the early 20th Century. He believed that advertising existed only to sell something, and the results should be measurable and justify the results it produced. (That sounds familiar... I wonder who else has been talking about that?)... but I digress.
Hopkins wrote the classic marketing book Scientific Advertising in 1923. What Claude said back then about advertising still applies today. If you're serious about marketing or business, you should read this book. I'm reading it for the fifth time, learning (and re-learning) solid marketing fundamentals.
Groupon's execs should have read what Claude wrote to avoid the problems they face today.
What are these problems? Lack of long-term, repeat customers that result from Groupon and "daily deal" advertising... small-business clients selling goods and services at a discount... then paying Groupon steep commissions - usually 50% of the already-discounted sales price.
Groupon's business model assumes that a company will sell a discounted "sample" of its product or service.... then customers will gladly pay full price on future buys. That doesn't make sense to me, and it didn't make sense to Claude.
Here's what he says in Chapter 13 - The Use of Samples:
"For the same reason some advertisers say, 'You buy one package, we will buy the other (Ed: Buy one, get one free).' Or they make a coupon good for part of the purchase price. Any keyed returns will clearly prove that such offers do not pay. Before a prospect is converted, it is approximately as hard to get half price for your article as to get the full price for it.
As Claude Hopkins reminds us, it's difficult (if not impossible) to pull this marketing feat off.
It's a great lesson for business owners, investors and marketers alike. Before you start-up or invest in any new or existing business, make sure it has a good long-term sustainable business model... and competent, experienced management.
Or if you consider hiring a marketing consultant or copywriter, ask them if they know who Claude Hopkins is. I can almost guarantee you that many of today's "social media experts" don't have a clue who Mr. Hopkins was... and why his words of wisdom are still so important today.
They know the ins and outs... likes and pokes... tweets and re-tweets of Facebook and Twitter... but I'm not convinced they truly know the "old-school" fundamentals of good marketing - which (if applied correctly) always work in any type of market or advertising medium.
That's what I'll cover in my next blog post, which talks about the difference between the medium and the marketing... and why it's so important for your business.
Until next time...
Wednesday, April 25, 2012
Can You Spend Brand Awareness?
This is an odd question to ask, but it's relevant when it comes to marketing. Why is that, you ask?
Because it ties into the seemingly never-ending debate between the merits of ad agency "branding" (or image)-type marketing... and old-fashioned direct-response marketing. If you've read my blog for any period of time, you know that my bias is towards the latter.
The reason I thought of this question was because of a meeting I had with two local radio hosts. I met with them to see how I could increase the effectiveness of their advertisers' radio ads. The better response they get from their ads... the more sales and money they would make... and that would increase the chances they would stick with this radio show as a longer-term advertiser.
Makes perfect sense, right? Well.... not exactly.
As I explained the difference between direct-response and branding-type marketing, it was obvious that one of the hosts wasn't sold on it. He starts asking question after question about "if" direct-response marketing was effective... and the one question that he asked (that I wish I had this answer for at the time) was:
"Well, what about brand awareness in marketing?"
My natural instinct was to give a smart-ass answer and say: "Well, what about it?" But that wouldn't have done much good to avoid an argument.
Let me take a step back and explain this marketing theory.
Ad agency folks love to talk about "brand awareness" because they tell their clients that the more you get your name in the marketplace... the more people will be aware of your brand... and eventually this will lead to more sales and cash flow. But - these "creative gurus" will tell you - this will take time for their creative genius to work its magic, and get the results you want.
Never mind the fact that you can't track how well the ads or campaign are working. Just trust them, keep giving them your money... and eventually it should work out alright. And the more time it takes to "get your name out there," the more money you're paying for unaccountable marketing.
Let's get back to the topic: "Can You Spend Brand Awareness?"
Go to a Starbucks and order your favorite beverage, then ask the clerk if you can pay for it in brand awareness. He or she will look at you like you're crazy, and rightfully so.
Obviously you can't spend brand awareness to buy the material things you want in this life. So why should your marketing be focused on something that's difficult (if not impossible) to measure... and is useless to buy the things you want?
I like marketing that you can measure, monitor and adjust, and will bring in US dollars... fungolas... Federal Reserve Notes - and lots of them. When done correctly, that's what direct-response marketing will do for any business.
Forget about being cool or creative, unless it increases your sales and positive cash flow. If an ad agency or or marketing consultant talks about brand awareness instead of results, snap your wallet shut and end the meeting. Then find a marketing professional who believes in accountable, results-oriented marketing - and not some half-baked yuppie fantasy.
You'll save time, energy and frustration, and have more business success.
Because it ties into the seemingly never-ending debate between the merits of ad agency "branding" (or image)-type marketing... and old-fashioned direct-response marketing. If you've read my blog for any period of time, you know that my bias is towards the latter.
The reason I thought of this question was because of a meeting I had with two local radio hosts. I met with them to see how I could increase the effectiveness of their advertisers' radio ads. The better response they get from their ads... the more sales and money they would make... and that would increase the chances they would stick with this radio show as a longer-term advertiser.
Makes perfect sense, right? Well.... not exactly.
As I explained the difference between direct-response and branding-type marketing, it was obvious that one of the hosts wasn't sold on it. He starts asking question after question about "if" direct-response marketing was effective... and the one question that he asked (that I wish I had this answer for at the time) was:
"Well, what about brand awareness in marketing?"
My natural instinct was to give a smart-ass answer and say: "Well, what about it?" But that wouldn't have done much good to avoid an argument.
Let me take a step back and explain this marketing theory.
Ad agency folks love to talk about "brand awareness" because they tell their clients that the more you get your name in the marketplace... the more people will be aware of your brand... and eventually this will lead to more sales and cash flow. But - these "creative gurus" will tell you - this will take time for their creative genius to work its magic, and get the results you want.
Never mind the fact that you can't track how well the ads or campaign are working. Just trust them, keep giving them your money... and eventually it should work out alright. And the more time it takes to "get your name out there," the more money you're paying for unaccountable marketing.
Let's get back to the topic: "Can You Spend Brand Awareness?"
Go to a Starbucks and order your favorite beverage, then ask the clerk if you can pay for it in brand awareness. He or she will look at you like you're crazy, and rightfully so.
Obviously you can't spend brand awareness to buy the material things you want in this life. So why should your marketing be focused on something that's difficult (if not impossible) to measure... and is useless to buy the things you want?
I like marketing that you can measure, monitor and adjust, and will bring in US dollars... fungolas... Federal Reserve Notes - and lots of them. When done correctly, that's what direct-response marketing will do for any business.
Forget about being cool or creative, unless it increases your sales and positive cash flow. If an ad agency or or marketing consultant talks about brand awareness instead of results, snap your wallet shut and end the meeting. Then find a marketing professional who believes in accountable, results-oriented marketing - and not some half-baked yuppie fantasy.
You'll save time, energy and frustration, and have more business success.
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