High Octane Marketing

Chapter 2
High Octane Marketing

Objectives
• After going through this chapter you will be
able to understand:
– Why and how to fine tune your operation?
– How to get better of others?
– The work is your life and it is fun
– The importance of setting goals and
– What is mastermind group?

19 ways to supercharge your
sales: High Octane 1
How to make your imagination a reality

• You have to think about buying a customer as
you buy a commodity

• You have to keep on buying customers on a
regular basis


• You spend a lot of money on advertizing
sending direct individual mails, telephone
calls etc. for marketing of your product

• One should not think of expenditure on
attracting customers towards his business


• There is one more reason for they getting
satisfied with one sale per customer –
Complacency


• If you are selling only a single brand of
product then it is high time that you look for
incorporating a value added aspect to that
product


• The idea of value addition need not
necessarily be adhered to electronic products
only


• Be ready with your additional offer at the
time of your very first sale

• Keep in mind:
– Never develop the front-end without building up
the back-end also then keep the chain reaction of
sales stretching as long as you can!

Concentrate on the Best Customers

• The computer is playing the vital role in
today’s various business activities

• Almost all the retail shops, supermarkets etc.
have installed the computers


• With installation of the computer the data
like –
– The customers who visited more often
– Who go for costly items
– Those making frequent visit and poor buying etc.
can be retrieved


• Concentrate your advertizing and marketing
efforts on good section of customers and
drop or spend less on bad lot of customers


• Your computer data show not only how much
certain customers spend but also what they
like to buy the most


• For Example
– Consider a grocery shop

– Sometimes the grocer puts certain items on a sale
to make low profit from on them


• If your computer data is well maintained, it
will show you who step in your shop to buy
the high profit items most often


• For example:
– Mail a good customer a coupon along with your
leaflet

– This would generate a unique feeling in them and
would jump on the offer without any hesitation

Standing on the Shoulders of Giants

• The world has seen man a lot of very
intelligent personalities

• Newton possessed the most monstrous brain
power


• If you want to achieve something in your life,
you follow what Newton did – stand on the
shoulders of the giants

• A simple calculation will get you what the
lifetime value of customer is


• The work out is very simple
– Imagine a new customer comes into your shop
and buys Rs. 1,000 worth of products

– If he keeps on visiting and effective purchase of
about Rs. 5,000 on an average of three years then
you make a business of Rs. 15,000


• The work out is very simple
– So, Rs. 5,000 is average profit

• This is a blind shotgun method which may or
may not be a viable proposition


• Once you are able to assess the exact worth of
a particular customer you can plan your
marketing strategies in a broader spectrum


• You are likely to attract many more times, say
four to five times a customers as before
resulting into a lot more business and much
coming into your pocket


• Process to evaluate the lifetime value of a
customer
– Observe your business data and find out a what
customer buys and the amount he spends

– Find your net profit on each customer


• Process to evaluate the lifetime value of a
customer
– This evaluation is possible only if you collect the
correct sales data for each of your valid customers

– Calculate the average monetary worth of your
customer

Your Unique Selling Schemes

• Whatever may be your business, you have
competitors close by

• The buyer need not choose to buy from you,
he may buy from your competitor also


• There are two things are to be done to make
the switch over effectively
– Develop a unique selling scheme

– Make sure your prospective customers notice the
proposition


• How to develop a unique selling scheme?
– If you advertize loud and clear people will get the
idea o your product

– Free delivery is a unique selling scheme


– Use car dealers complete for grabbing major
share of the market

– There is little to lose whereas much to gain


– Write down each and every benefit and quality of
your product and compare them with your
competitor’s

– You have to make know the customers that you
have something special to offer

Be Different in Positioning

• The another way to of keeping you
outstanding is ‘Positioning yourself as an
expert in your field of activity’

• People do not care to pay a little more for an
expert

Be Different in Positioning

• Write a book about the virtues of a particular
product and distribute it in your area

• You can attend public for a and debates

• Publish your own newsletters and distribute it
freely to your customers

Endorsement – A Flood of New Business

• People go through an advertisement with a
prejudiced mindset

• When there is a well known personality to
endorse your product it will be far better than
a full page color ad


• The key is to get other people endorse your
product for you

• There are two different ways:
– You may ask your friend customers to
recommend your product among their friends


• The other way is to get a third-party
endorsement from a non-competing business
owner, or celebrity

• They may prove highly expensive

Direct Mail

• Direct mail is the best marketing tool as you
can reach thousands very fast and for lesser
cost than any other instrument

Direct Mail

• You may be rightly apprehensive that the
direct mail is treated as junk by vast majority
of the recipients

• Some of them will not bother to open the
cover and have a look at the contents

Direct Mail

• For example
– Let us say your Rs. 2,000 worth of product really
cost costs you Rs.700

– This means your cost towards the product is
100X700 = Rs. 70,000

Direct Mail

• For example
– Take the case of the book ‘How to Fight Cancer
and Win’

– First, the publisher test marketed a direct mail
piece and got a response rate of about 20%

Direct Mail

• For example
– Copy Writing: Not any Peter, Dick and Harry can
create a direct mailing material

– It should be noted that the list of customers
sending direct mail must contain only the selected
ones

Free Advertisement with Multiple Out-pull

• There are a certain kinds of advertisements
that come entirely free and without any stigma
attached with it

• You have to come up with a newsworthy
angle to your service


• How to get newsworthy angle?
– Be creative and you get a sense of what makes
news and accordingly you make some news
happen

– You have to be innovative and imaginary


• Free advertisements acts as a compelling
factor for the customers to try your product
leading to a massive influx of new customers
and money as well


• Issuing press releases is another method of
creating public awareness

• Work hard to get this angle to your business

Do it Fast – Tomorrow is Too Late

• Time is more than anything else

• The money we spend is gone as the time we
spend

• Time and money are intimately bound with
each other


• In the World, noting is valuable than the
Time

• You will be astonished to see that you really
spend only a fraction of your time in money
making


• Two reasons for people wasting money
– They do not think of the fact that time is money

– They are simply careless


• Once you are aware that every moment is
precious, you will withdraw yourself from
wasting time any more

• Each one of us is allotted with a certain fixed
time on this Earth

Remove the Risk Factor

• It is the fact that all buyers have several
reasons for not buying a certain product

• The perfect business persons have ready
remedy with them to counter these allegations


• Do not think literally that the buyer will come
back for pay-back

• Each new customer costs you money but each
repeat sale comes free if cost


• When you remove the hurdle of risk from
your products, the sales boost up in multiples
without spending for ads and marketing


• The stronger you make the guarantee, the
better it is

• Stronger the risk removal factor, better your
sales prospects

An Ad Five Times More Effective

• An ad contains many a variables which
interact unpredictably due to its natural
instinct

• Nobody can predict about an ad


• There is always an element of risk in
advertising effort

• An ad has to hit the market at the right time


• There is no scientific formula that can
guarantee a total success in an advertizing
campaign

• Sometimes even the first run may be
successful


• Many times slight change in wording of
headline or an alternative offer get changed in
the body matter can alter the situation
favorably


• It’s quite advisable to test and change your ad
very often

• No doubt, changing an ad very often is quite
expensive, but when it pulls high response
you will reap the rewards as well

Learn from the Farmer

• If you ask a prospective farmer how he is
doing in his harvest, he will place before you
all the factors for which he had spent


• The exciting market area is the business
‘acreage’ for a businessman

• You can easily make out, on a close
observation that a majority of your business
comes from an area that falls within four to
six kilometers of area


• There are two ways to improve your yield per
acre:
– You can increase your market share by getting
more of those 20,000 to come in and be your
customer

– You can get more business from those 7.5% you
have already captured


• Take a look at what you are doing to get your
usual 7.5 yield

• Many of them may turn out to be casual step-
in


• Make a big offer of give something entirely
free on a certain amount of purchase

• Think and do what a farmer does

Looking Out for Common Traits

• You have to concentrate your efforts on a
carefully chosen group of customers, which is
called as ‘target marketing’

Looking Out for Common Traits

• Catch the very best and qualified targets

• For any trade, there is a publication related
with it, providing information about that
industry

No Problem if Your Customer has No
Money

• Is a customer says he really needs your
product but he does not have a money right
now, do not hesitate

• You tell him to take the product right away
paying whatever he could and the rest he can
pay on easy installments

No Problem if Your Customer has No
Money

• ‘No Money’ road block is most common
excuse but at the same time one of the best
overcome

• It is proven fact that many businessmen have
tried this and succeed enormously

Go Ahead and Break It

• The top ranking insurance salesman, Sid
Friedman, said “ If it isn't broke, brake it”

• You should always strive to lead making
others to play ‘catch up’ with you


• Differentiation is a business term

• If you cannot make any significant change in
the product atleast change the package


• Not all your differentiation effort may click

• What you learn from this experience is that
you must be prepared to face certain risk
while going with your differentiation formula


• Example:
– A photographer came out with a novel offer of
providing glamour photos

– Most of the petrol pumps switched over to self
service

They Go Away Quietly

• Very often you don’t know what happens
when you annoy your customer

• A satisfied customer will not hesitate to open
up himself and present a rosy picture of you
and your product

They Go Away Quietly

• One of the best thing to attract a repeat
business is to resolve customer problems in
their favor even if it costs you a little bit

• Does not be a penny-wise if you are going to
be pound foolish later

Value Added Attachment

• The customer will happy to get something for
which they don’t pay

• It will be much appreciable to gif something
connected with the item customer buys

Value Added Attachment

• For Example:
– Polish or a brush as a gift for every purchase of a
pair of shoes

– A shampoo as a gift for a lady, comes in Spa for
hair coloring

How to Make Shoppers into Buyers?

• After spending a lot on advertisements and
other marketing techniques if people come
into your shop and went out without making
any significant purchase it would be shame no
if a tragedy


• A customer is happy to stay more if he meets
inviting looks and atmosphere

• Displaying your guarantee prominently is
another way to make the customer to settle
down


• If you take a survey of a particular likes of
people by way of giving out forms to fill in
and ask them to come in for a discount

• Capture all relevant information regarding the
customers as much as possible


• Another method is to give customers an
immediate incentive to come back and buy
again

• The magic words ‘Thank You’ really are
capable of mesmerizing prospective
customers

Difference Being 1st and 2nd

• A margin between 1st and 2nd may ne narrow
but the power and fame go with the first while
the second is being pushed into obligation

Difference Being 1st and 2nd

• The second and third in the line are forgotten
and nobody cares to know even

• There are many examples where the number
two had acquire more fame with staunch
publicity

Summary
• To run your daily business, you have to buy
customers like a commodity

• It is mandatory for a successful businessman
to keep a record of purchasing behavior of all
customers

Summary
• Try to acquire a unique selling proposition

• Position yourself as an expert in your field
which can be done through calculated
publicity tactics

Summary
• Making a list of good and regular customers
by collecting and storing a vital data on a
computers will help you to send direct mail

• Time is money, nothing is more important
than the time

Summary
• All buyers have a dozen of reasons for not to
buy, such as
– Cost is too much
– Not sure of quality

• Two basic ways to improve sales:
– Increase your market share
– Increase your area of operation

Summary
• Do not leave out a customer who does not
have sufficient money right now. Offer them a
monthly installment paying

• If your customer likes you and trust you then
you need not compete on the basis of price

Summary
• Getting something free which a customer did
not expect makes him baffled and surprised

• Thank customer profusely for his visit and
purchasing your product so as to make the
customer to repeat

End of Chapter 2
High Octane Marketing

High Octane Marketing

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