Why Focusing Solely On The Overall Size Of Your Promotional Budget Is A Huge Mistake!
(And By Constantly Doing So Is Potentially Costing You A Ton Of Money And Countless Missed Opportunities!)
Are you ready for this? Listen up and definitely take heed.
If you’re serious about (A.) continually growing your semi cash strapped business and or semi resourced challenged service.
Irregardless of the current size and or overall effectiveness of your promotional budget.
And (B.) if you’re serious about avoiding almost certain failure and inevitable bankruptcy. Like a staggering 88 plus percent of your aspiring peers eventually do, within five short years, (make that) just 60 months, from when they first opened their offline doors.
And sadly, the window of opportunity shrinks and closes even faster online, when you continuously violate this unspoken rule of law.
The remainder of this post, is solely dedicated, to helping you avoid being just another, in an extremely long, and constantly growing line, of missed informed and missed guided entrepreneurs, who failed to take heed to this proven advice.
Do You Think Knowing And Understanding The Factors Affecting Your Advertising Budget Gives You Any Type Of Potential Advantage?
So have you ever bothered to watch, one of those expose type of shows called, “Behind The X!” Meaning, it may show the stuff or chaos, behind the making of an extremely popular movie.
Or it may focus on the turbulent personal and professional relationships, with an incredibly popular band or superstar athlete and or entertainer, power broker movie producer and or defense or divorce attorney to the stars etc.
The main point being.
Sadly, when it comes to both starting and maintaining, (read that as) nurturing an ongoing business and or service.
Why Using A Typical Marketing Budget For A Startup Could Potentially Spell Disaster!
A staggering 95% of aspiring entrepreneurs or more! Focus on the overall size of their allocated promotional budget, as opposed to it’s overall effectiveness.
So in other words. Even though they can clearly see, what they’re currently doing, in terms of outrageously expensive, dismally performing, traditional advertising and or promoting, simply isn’t getting it done.
For any number of reasons, they stay the course, until they are finally forced, primarily due to financial reasons, to close their doors officially.Sound all too frighteningly familiar?
It should, because sadly far too many on and offline ventures,(no matter how well intention-ed) ultimately end up in the junk pile of missed entrepreneurial opportunities.
Your Ongoing Method Of Advertising And Or Promoting Can And Definitely Will Ultimately Make All The Difference!
Case in point. Let’s do a really quick side by side A/B split test comparison, of two semi well financed, retail jeweler stores.
And let’s say, even though each of them, (currently) only has one retail location each. And just for the sake of numbers. Let’s say their ideal -local- female customers, who from an incredibly broad, overview demographic perspective.
They range in the ages from 21-55 and they currently earn annually, anywhere from the mid five figures, to at least a couple of hundred thousands dollars a year.Obviously, an even smaller percentage earns even more.
The Advertising Budget Allocation Decisions You Make Will Ultimately Determine If You Make It Long Term Or Not!
But for the most part, the vast majority (90 plus percent), earned in the aforementioned annual income range.(And more than likely, this is probably the case, for the the vast majority, of their personal and professional inner circles as well. 😀 )
This being said.
Company (A.), which is pretty much married and deeply committed to, the old school way, of constantly spending a fortune, on some outrageously expensive, dismally performing, traditional advertisements and or promotions.
And typically, (once) all the marketing and or advertising smoke clears. On average, they spend anywhere from $125- $650 dollars per lead.
Based on their $20,000- $60,000 dollar a month,(or more) advertising and or promotional budget allocation.(Do not get caught up on the actual numbers being used.
Instead focus on the marketing concepts being demonstrated. In order to get a much fuller and deeper understanding and or appreciation of the marketing concepts being shared.)
Strategically Use Your Core Marketing Concepts And Or Strategies To Consistently Out Promote Your Major Competitors!
Case in point. Watch (very closely) how retail jeweler company (B.) strategically,initially allocations about $5,000 dollars of their $30,000-$40,000 dollar a month advertising/promotional budget.
And watch how they masterfully and relatively inexpensively, (accomplish) two primary goals.
A.) They will inexpensively lead generate, for literally pennies on the dollar.
B.) They will also simultaneously generate a consistent buzz, both on and off of social media.
So retail jeweler company (B.) goes another marketing route.
Your Customized Marketing Concepts And Techniques Can Be The Literally Springboard To Some Long Term Possibilities!
Company B reaches out to an extremely popular, independently owned Mom & pop, family orientated bakery owner.
And propose the following. On the bakeries, traditionally two slowest days of the week. The first 50 (or X) number of women, who spend at least X amount of dollars, they will given, an extremely time sensitive, gift certificate, (which will be) individually holed punched, (by either) the owners and or their employees.
And their next five (or X) number of extra large cups of X, only cost $1 dollar each. Say what?Exactly! 😀
Keep in mine (A.), these X number of local women, have no idea whatsoever, they were about to be justly rewarded, for their long term loyalty to this particular bakery, correct? 😀
So you know, once they get back to both their professional and or personal circle of influences, they’ll be enthusiastically sharing the good news, correct?
This Is How You Go About Becoming Major Players In The Marketplace Of Your Choice!
For just a second. Do the really quick math. The Mom & pop bakery owners, readily agrees, to sell these five extra large cups of coffee or some other beverage, per the first X number of local female customers, who spend at least X, on two of their traditionally slowest days of the week.
And they’ll enthusiastically sell them at their actual cost, to the extremely marketing savvy jeweler, who in reality, is financing this particular marketing ploy.
Because remember, their ideal female customer, between the ages of 21-55, have a total lifetime customer value metric, of somewhere between $6,500- $11,000 dollars.
Give or take, over the next five to seven year period.Plus, think about the other, Mom & pop non franchised bakery owners, (in the immediate area),who don’t currently have a joint venture (JV) like partnership arrangement, with an extremely well financed, marketing savvy, non directly competing vendor. 😀
You Simply Have To Take Advantage Of Your Indirect And Or Direct Selling Advantages!
First of all, let’s say (over time of course), 500 local women, have spent at least X with the bakery owner or florist or hair and or nail salon owners.
(Are you starting to get any new potential lead generation spin off ideas yet? 😀 ) Anyway..
These 500 (or x number) of local women, (some of whom), own their own business and or services, or work with other local women, right?
You know they’ll be busily texting and posting all over social media, correct? And they’ll tell (more like) brag to their in -laws, neighbors and closest girlfriends and or family members etc.
Which definitely means, at least some of their acquaintances will also be visiting the bakery, to see for themselves, what the deal is right?
Remember There’s All Types Of Proven Methods Of Retailing!
After the ladies receive their 5th and final hole punch, for their extra large beverage, for just $1 dollar.And keep in mine, they only have a total of 30 calendar days to do so. Otherwise, the gift certificate style index card, expires worthless. 😀
This is when, the bakery store owners, or their employees/associates, hand these ladies, one of the jewelers best market tested two side index cards.
In part two, you’ll discover the remainder of this battlefield tested strategy, okay? For now, hopefully, you are definitely beginning to better appreciate, why focusing solely on the overall size of your promotional budget, instead of the overall effectiveness of it.
Is potentially a huge mistake. Don’t you agree? See you in just a little bit in part two.
P.S.Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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