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The Promotional Idea Showcase - Spring 2002
- Updated
Quarterly
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Guerrilla
Marketing: Now More
Than Ever
By Mark S. A. Smith
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| 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.
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.
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.
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.
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?
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.
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.
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. |
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Use
Many Weapons
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There
are over a hundred weapons and tactics you can
use to market your business to bring in
profitable customers. And while many of these
marketing weapons can apply to imprinted
merchandise, the good news is that half of
them cost nothing more than a change in
behavior.
Most companies use half a dozen weapons.
Aggressive firms may use a dozen. Guerrillas
use 30 to 40. Review the list, ranking those
you’re using as A; areas where you could
improve with a B; those you could use (but
aren’t presently) with a C; and those that
don’t apply with a D. Then get to work on
your Bs and Cs. Here are a few examples: |
- Marketing
Plan
- Niche
- Identity
- Logo
- Theme
- Stationery
- Business
Cards
- Inside signs
- Outside
signs
- Hours of
operation
- Days of
operation
- Packaging
- Flexibility
- Word-of-mouth
- Community
Involvement
- Neatness
- Referral
Program
- Hotline
- Guarantee
- Telemarketing
scripts
- Gift
Certificates
- Brochures
- Electronic
Brochures
- Location
- Networking
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- Quality
- Reprints of
Ads & PR
- Flip Charts
- Upgrade
Opportunities
- Contests
& Sweepstakes
- Barter
Options
- Clubs &
Associations
- Partial
Payment Plans
- Cause-Related
- Marketing
- Toll-free
number
- Free
Consultations
- Gift-with-Purchase
- Courses
& Seminars
- Free Samples
- Success
Stories
- Attire
- Customer
Support
- Follow-up
- Promotional
Products
- Catalogs
- Article for
Publication
- Newsletters
- Customer
Comment
- Cards
- Selection
- Contact Time
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- Public
Relations
- Online
Marketing
- Classified
ads
- Infomercials
- Direct-mail
- Customer
Recognition
- Fax on
Demand
- Special
events
- Aggressive
Listening
- Posters
- Thank You
Cards
- Research
Studies
- Honor
Payments
- Testimonials
- Reputation
- Enthusiasm
- Credibility
- Easy to do
Business With
- Customer
Mailing List
- Personality
- Satisfied
Customers
- Sales
training
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