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Sales and Selling: Beginnings of Your Small Business

 


Marketing: Artillery for Sales

A small business has many ways to generate awareness of its products and

services, and all are expensive! It is therefore critical that small business owners

devise a marketing mix that best reaches likely purchasers. This can hopefully be

thought out in great detail and then modified over time, but the initial plan is

especially important: Its success could bring abundance to the small business,

but failure could result in wasted money when the firm is most vulnerable.

There are four parts to this effort:

1. Determine the Unique Selling Proposition of your small business

(as described in Chapter 1).

2. Define your target market.

3. Decide upon the message to these customers.

4. Choose the best media to deliver the message.

Determine Your Unique Selling Proposition

How to determine the USP of your small business was discussed in Chapter 1.

The USP is the nexus of your business. This must be resolved before proceeding.

Define Your Target Market

This should be easy. Simply write down the characteristics of your most likely

customers.

Choose the most important metrics and forget the others. Your target cus-

tomer base may include age, gender, profession, income level, residence, reading

interests, hobbies, university, etc. Or, if you are selling business-to-business, you

might consider company size (revenues, number of employees), type of com-

pany, number of workstations, etc.

A few examples:

 A pizza restaurant in a small town targets hungry people within delivery

distance of the shop.

A titanium-dioxide distributor targets companies within 500 miles

that produce white products—anything from paper to paint to cast-

polymer products such as white countertops (titanium dioxide is a

chemical whitening agent).

 A company producing small motors targets model-airplane

enthusiasts around the world.

 A computer services firm offering backup services targets small

businesses in the $500,000 to $50 million revenue range, within a 50-

mile radius.

 An aircraft valuation expert targets banks, lessors, and insurance

companies involved in commercial aviation, as well as aircraft

operators and owners worldwide.

 A sporting equipment retailer targets families with children of

school age and the directors of sports leagues (Little League

Baseball, AYSO, etc.) within the county.

It’s not complicated to define your market. If this part of the effort gets

bogged down, then you’re probably going in the wrong direction. Defining the

market is actually the easy part. Reaching the market, which we discuss later, is

more difficult.

Decide Upon the Message to These Customers

Now that the Unique Selling Proposition and target market have been consid-

ered, it’s time to decide upon the message itself. It will then be easier to decide how

to deliver the message. We assume here that your small business is interested in a

direct-response advertisement (that is, the prospect will buy something now) rather

than image or branding ads, which create or reinforce awareness.

During this time, you will decide how much to say about your product and

services, and this will help determine the best advertising media. If the message

is very short and simple, a billboard, yellow-pages ad, or post card may work. If

much needs to be said, a complete mailer, brochure, or television ad may be the

best delivery medium.

In all cases, the use of images such as photos, drawings, charts, maps, etc.,

should be included whenever possible. Images attract attention in ways that words

cannot. Notice, for example, that newspaper ads for grocery stores present doz-

ens of common items such as batteries, trash bags, and paper towels, and include

color photos. Why is the photo necessary? Everyone knows what batteries look

like. Technically, the image is not needed—but well-placed images attract atten-

tion and increase sales.

We will review two types of ads: AIDA and Announcements.

AIDA

Many ad agencies use a simple but effective method for producing advertise-

ments: AIDA. This technique is a great tool for bringing attention to ads and

converting lookers into buyers, regardless of the media used.

Small differences in ad content can make a huge difference in pull rates.

AIDA provides a structure for constructing the ad to draw a direct response.

AIDA is an acronym for Attention, Interest, Desire, and Action.

Attention

Ads must begin with an attention-getter, directed at your target market. Fear

is always popular; so is appeal to an interest (for example, vacation spots or

antique autos) or a surprising statement. Drag prospective customers into the ad

by hooking them on your attention-getting device. This is a good time to be loud

and abrasive—but keep it short.

Here are a few examples:

Cool your computer to ensure peak performance and stable operation.

(Plays on fear; we will develop this ad later.)

Mortgage rates at five-month lows!

You deserve the smell of new car leather!

Lose 6 pounds per week without dieting!

Less Money—More Options on our newest models!

These headlines catch your attention. Make a list of some other headlines

that will catch the attention of your target audience, then ask around to gain a

consensus on which is the best.

Interest

Interest is created by describing one or more benefits your product or ser-

vice offers that will improve the life of the buyer. Remember, customers buy on

benefits not on features, so stress the benefits.

When a CPU overheats as your old fan fails, your computer will expe-

rience problems right away. Much slower performance, malfunction,

noises, and even fire can spell the end quickly. Beat the heat with the

AsterTech.FX-D2000A CPU Cooler. Running with an ultrapremium Xidec

permanently lubricated dual ball-bearing fan makes for trouble-free

operation and twice the life of other ball-bearing fans.

Here, we again stress the problem to generate attention but then build inter-

est in a credible solution. Note that no one cares about “ultrapremium Xidec

permanently lubricated ball-bearing fans”—that is merely an impressive sound-

ing feature. The benefit is “trouble-free operation and twice the life…” and that

solves the problem.

Desire

Build desire by making your offer compelling. This is the time to describe

free shipping, bonuses (for example, “free adapter included—normal retail price,

$4.95”), guarantees, endorsements, etc., to seal the buying decision.

Continuing our example from the previous section:

Since 1999, over 825 Value-Added Resellers nationwide have insisted

on using the FX-D2000A in every machine they install.

Comes with industry-best two-year warranty.

From Palm Chemical—the leader in quality industrial resins.

Note that these statements are not time-related; they build interest and a

desire to own the product, but do not compel the buyer to do anything now. But

the call to action is coming.

Action

The purpose of the ad is to convert the ad-recipient into a customer right

away. It’s futile to hope that the prospective customer will remember your ad

and come back later. Great ads close with a call to action—immediate action.

Without a call to action, shoppers will keep on shopping and the next competitor

will close the deal instead.

Examples:

Order by (week + 1) and get free shipping!

Buy now and get a $25-off upgrade coupon for our next model

(which buyers may fear is coming soon).

Sign up by January 31 and receive 256MB of extra memory—for

free!

Limited quantities, so act now!

The call to action is the most important part of your ad.

Announcement Ads

Announcement ads are easy, compared to AIDA-structured messages. An-

nouncements assume the audience is already shopping for your product or ser-

vice, so the message gets right to the point. In other words, attention and interest

are not so important here. The purpose is to inform and call for action.

A good example is shown on page 59.

A 2" × 3.5" ad like this was seen in a trade magazine for computer resellers.

The seller ran similar ads for four products side by side. Computer resellers

have a continuing need for this type of product, which is resold to their custom-

ers. Thus, there is little need to convince resellers of the need to purchase tape

storage devices—this is assumed. Announcement ads get right to the point and

assume the buyer is already looking for this type of product.

STORGARD AIR-7 StorGardStation

Data Protection Drive for servers

AIR-7 tape drives deliver performance and reliability with 60GB –

120GB max capacity (compression ratio varies from 1:1 to 2:1) in

an 8mm compact data cartridge with fast data transfer rate of

16mb/sec.

 Wide Ultra-SCSI interface

 16MB Buffer Memory

 3.5" form factor

 Amber and green front LEDs

Call StorageDudes at 800-555-5555 or see www.StorageDudz.com

Advertising people are not usually enthusiastic about announcement ads be-

cause they don’t require as much creativity, but they can be very effective

when used in the right places and repeated frequently. They are normally short,

simple, and in a specific format. Announcement ads are used most often in

trade publications or professional situations where other formats would not be

appropriate.

A few final tips on writing an advertisement:

Consider the appropriateness of the AIDA and announcement formulas for

every piece of sales collateral now in use at your small business. In addition, use

these techniques to develop all new ads. This may take some time, but the differ-

ence in response rates generated by great ads as opposed to mediocre ads can be

dramatic.

Finally, look at the ads produced by your best competitors—yours should

probably not deviate too far from them.

Choose the Best Media to Deliver This Message

Once the ad content is determined, picking the vehicle to deliver your mes-

sage to a particular market becomes much easier. If the message is complex, a

letter with a brochure or catalog might be required. “Sam’s—the largest selec-

tion of commercial electrical supplies in Kern County” (announcement ad) is

complete in itself, so a billboard, yellow-pages ad, or post card mailed to a care-

fully selected mailing list could yield great results.

Of course, we determined our target market earlier, so this makes media

selection that much easier. Once again, an overall theme here is that the plan

should probably not differ greatly from what your most successful competitors

are doing.

The advertising world has been kind in offering us limitless opportunities to

spend money and reach various target markets. This includes everything from

bus-bench ads to T-shirts to browser pop-ups to Google AdWords (Google is a

registered trademark of Google, Inc.). They show a lot of variety but have one

thing in common: All are expensive.

We review a few of the most popular ads here:

Direct Mail

The science of mailings includes four key variables: what to say, what to

send, whom to send it to (mailing list), and when to send it. Many great books

have been written on this subject, but the topic is reviewed here in enough detail

that small business owners may construct a good program.

Advertising people say that mailers have a success rate of around 2 percent

to 5 percent, but the real low-end answer is 0 percent. That’s right: It’s actually

possible to spend a lot of money designing and mailing thousands of mailers and

end up with zero extra revenues.

The easy solution is offered first, for those who have a little more money and

a little less time: Find a mailing house and outsource the whole job. Companies

that specialize in this area will advise your small business on how similar projects

have worked for related companies, and thereby determine whether a simple

post card will work or whether a large envelope with a four-color letter, glossy

brochure, postage-prepaid reply card, and other enclosures are necessary. These

companies can also acquire mailing lists and perform labor-intensive tasks such

as adding mailing labels, folding, stuffing, sealing, stamping, and sorting (sorting

by zip codes is required to get better postal rates). These tasks may seem simple,

but they can cause huge headaches for small business owners who are accus-

tomed to other types of work.

To find a local company that specializes in turnkey mailing projects, ask around

among printers, designers, and list brokers. These people all seem to know each

other, and many have worked together before. A printer, for example, will refer

you happily to a mailing house with the expectation of getting the print job.

If outsourcing the job is not an option, here is some more information on

doing the direct mailer internally:

What to Say

Fortunately, you’ve already accomplished this part, as described earlier in

this chapter.

What to Send

Most small business owners should concentrate on simple mailings, such as

large post cards (my favorite), form letters produced in Microsoft Word or a

similar program, or a mass-mailed brochure. If the sales situation is simple, the

piece will call upon the recipient to buy. In more complex situations, recipients

can be encouraged to call a sales rep rather than read a large and complex assem-

blage of printed items.

This story is short, but the stress

caused by a simple newsletter mail-

ing will be easy to understand.

I worked with a small business

that published a newsletter every

two months for a group of database

users. We wanted the December

issue to be mailed in late Novem-

ber, in advance of the holiday

crunch.

The project got off to a rather

slow start, and the text was not ap-

proved until November 20. But the

printer needed five days to produce

the piece, which, of course, was

really 10. The printer claimed that

this was because he had to wait for

us three times as we approved the

design copy, which was partially

correct. Unfortunately, “November

issue” was still printed on the

newsletter.

Blinded by wishful thinking, the

management expected that the

printed newsletter would be in the

mail within a day after printing was

finished, but clerical people needed

to be found who could add labels,

stamp, seal, and sort into postal

containers. Everyone was busy on

another big project, so the news-

letter was temporarily shelved.

On December 11, everyone was

assembled to begin again, but then

someone asked, “Where are the

mailing labels?” The newsletter was

mailed to an internally developed

mailing list that resided on a com-

puter somewhere in the company,

but only the systems administrator

knew exactly which mailing list file

to use, and he was out of town until

December 16.

On December 16, the list was

printed, but the folding, stuffing,

labeling, sealing, and stamping op-

erations took longer than expected.

Clearly, the mailing could not reach

the post office before December 21,

and that was too close to the holi-

days.

Management was then faced

with two bad choices: (1) mail on

December 21 and expect that most

newsletters would be trashed by

readers who were on holiday until

January, or (2) mail on January 2

for receipt around January 9, and

hope readers would not notice the

November date printed on the news-

letters.

The “November 63” option was

finally selected, and the mailing fi-

nally went out in early January, de-

spite additional delays in

coordinating the tasks required to

organize the work among vacation-

ing employees.

Note that when form letters are produced, an additional complication arises

where the letter to Mr. Gray must be placed in the envelope addressed to Mr.

Gray, and not in the envelope for Mr. Blue. This may seem simple, but when

thousands of envelopes and letters are lying around in boxes at your small

business—and some letters did not print correctly and some envelopes were

ruined—headaches will result and the project can stall.


Since the message is known, the issue here is reduced to finding a designer

who can create a piece that will attract the target market. After you approve the

piece, the designer turns over the computer files to the printer. Printers often

work with designers, so ask for a referral.

Who Gets It?

There are basically two sources of mailing lists: internal and purchased. The

best results will be obtained from internally developed lists, where previous cus-

tomers and contacts are culled from one or more databases. However, these lists

are often not large enough. If that is the case, supplement the internal list with

one from an outside source.

Utilizing mailing lists purchased or rented (good for one mailing only),

direct or from a list broker, are quick ways to get your mailing to thousands of

new customers. Databases (lists) may be purchased or rented directly from sources

such as InfoUSA, the Harris Directory, Dunn & Bradstreet, and other compa-

nies. Many trade magazines also sell or rent their subscriber lists to vendors with

relevant products and services, so this may be the best source for specialized

small businesses.

InfoUSA (www.infousa.com) allows customers to select and sort lists in

various ways (for example, health services companies in the 312 area code,

with 10 to 999 employees, sales from $1 million to $500 million, and an A or A+

credit rating). The list can then be purchased with a credit card and downloaded

immediately.

Finally, most lists these days are delivered in the form of a spreadsheet or

similar (for example, tab-delimited) computer file, so someone at your small

business must be familiar with this format and understand how to use it to pro-

duce mailing labels, print form letters, and load the data into related programs

such as ACT (contact management programs, described in Chapter 14).

Pricing will vary greatly, depending upon the list quality, quantity, and extra

information required (such as telephone number, fax number, title, department,

SIC code, etc.) and many other factors, but as an order of magnitude, expect to

pay about $0.10 to $1.50 per name. Don’t acquire the list until it is needed, be-

cause a portion (maybe 2 percent to 10 percent) of the names will already be

outdated, and as the list sits on your computer, unused, the situation will only

grow worse.

A firm able to help in acquiring, importing, and producing mailing lists and

mailers is described at http://www.ant91.com/InfoUSA.htm.

When to Send It

Most small business owners will be able to determine for themselves the

best times to send various mailing pieces. Sporting goods companies, for ex-

ample, know the seasons in which their products are purchased, and plan ac-

cordingly. Allow large amounts of slack time because mailing projects always

seem to take longer than expected, and a late mailing can be a complete waste of

money (for example, a ski equipment mailer sent in April; yes, it can happen).

Budget for repetition, because almost all experts agree that response rates

increase after recipients see a similar ad several times. Once again, watch what

your successful competitors are doing: If they send out a large format card every

quarter, consider sending a larger format post card every quarter, too.

Publicity and Public Relations

Good PR is often the least expensive and most effective means of generating

greater awareness of your product or service—and getting lots of new business.

Publicity (free publicity is what we really mean here) in this context means

getting print or broadcast coverage of your small business as a news item, not as

an advertisement. Good publicity is better received by prospective customers

than advertising because the seeming objective of the story is to inform or inter-

est and not to sell, and because information disseminated by the media as news is

perceived as more credible than advertising.

Editors of trade magazines, newspapers, and local radio and television news-

rooms have a ravenous and continuing need for stories that will be of interest to

their audience. Therefore, they will be receptive to your suggestions. On the

other hand, most are sensitive about being duped by businesses into releasing

stories that are thinly veiled advertisements. If your small business can properly

disseminate news of interest and cooperate with the media, the benefits to your

bottom line may be huge.

Many small businesses prefer to retain a publicity agent, who should constantly

inform relevant media outlets about new developments at your company. PR agents

normally know exactly who to call, what to say, and how to spin mundane events

into something exciting. This can mean quick, effective results for you.

Otherwise, always be on the lookout for any kind of information that could

be of interest to the media, even if you have to dress it up a little. Then, write

a press release. A press release is a short (one- to five-paragraph) article de-

scribing what is going on and utilizing the standard who-what-when-where-why

format. Popular themes are: how the world will be a little bit better because of

this development, fear (always popular), or how a local company is making a

splash elsewhere. Creative PR releases may yield important results.

Here are a few other points to keep in mind:

 If the press release is event-related, be sure to send it out at least two weeks

before the big day to get maximum exposure.

 Be sure the press release includes contact information such as the name,

telephone number, and e-mail address of your PR person. This makes it easy

for the media to call for more information.

 Most press releases quote the president or a top officer of the company.

 Most press releases offer a short company description at the end.

Sample Press Release

The following press release may not be entirely serious, but note that it does

have all the elements needed to interest editors and producers. This item would

be released to industry sources, such as trade magazines.

* * * PRESS RELEASE * * *

SkoolTel Announces New Telephone for In-Class Use

Educators Expo, Washington D.C., August 30

SkoolTel® today unveiled its newest product, an apple-shaped cell-

telephone for the desktop with a small but high-resolution graphics

screen, aimed at the high-school student market. The new SkoolTel

Rotten A+® model boasts a 2-inch active matrix LCD monitor,

understands Morse code (entered when students tap pencils), and

operates in “dead mode” - meaning it dumps all memory and appears

to turn off in less than 10 milliseconds after students tap a small,

playful-looking worm on the top of the unit.

The Rotten A+ model will be especially popular with students who rely

upon cheating to improve their grades.

Pricing & Availability

The new Rotten A+ will begin shipping worldwide in mid-August—just in

time for the new school year—and will retail for $199.99 in leading

consumer electronics outlets. See www.skooltel.com to find an

authorized SkoolTel retailer nearby.

The new Rotten A+ also ships with:

2-inch LCD with 1680-by-1050 pixels

1.8 GHz 64-bit PowerXX5 processor

iCheat AV, an easy-to-use desktop video-conferencing solution

customized for in-classroom usage

128-bit encryption technology to keep test administrators at bay

AutoClass Networking, which automatically and silently connects all

students in the classroom using high speed CheaterNet, 802.12

wireless connection protocol

The entire GlobalBook Encyclopedia, current year edition, so that

students may look up just about anything in seconds

Invisible, wireless earpiece and microphone

AC Adapter and batteries

Everything needed for the modern high-school test-taker is included

right out of the box.

“The Rotten A+ will raise the bar for all students, because test scores

will improve dramatically,” said David Reebar, SkoolTels’s senior vice

president of worldwide product marketing. “With the entire system,

including a gorgeous 2-inch display, all shaped like an apple sitting on

the student’s desk, even teachers will love it.”

Formed in 1999, SkoolTel ignited the multi-use cellular-telephone

market for students with the Crabby II. Today, SkoolTel continues to

lead the industry in innovation with its award-winning products. SkoolTel

is also spearheading the digital music revolution with free music

downloads of major artists to cell telephones with its “Crabster” music

download service.

Press Contacts:

Derick Sheeter

SkoolTel

(800) 555-5555

dericksheeter@skooltel.com

NOTE TO EDITORS: For additional information, visit Skootel’s,

www.skooltel.com, or call our Media Helpline at (408) 974-9288 x101.

SkoolTel, the SkoolTel logo, Rotten A+, iCheat AV, Crabby II, AutoClass

Networking, and CheaterNet are either registered trademarks or

trademarks of SkoolTel. Other company and product names may be

trademarks of their respective owners.

-


The press release can be fine-tuned a bit for local media by using the same

text as above but adding the following paragraph:

Skooltel, an area firm employing 55 technology workers, is making a

mark on the national scene. SkoolTel is improving the educational

system by helping high-school students all over the U.S. improve their

test scores.

The first press release should be sent to a well-researched list of industry

experts. It’s worth a few phone calls to find the appropriate contact person at

major trade publications, research firms, Internet sites, etc.—and keep this list

updated.

The second press release is sent to the local media, including television, ra-

dio, and newspapers. Again, keep the list current and send the press release

directly to the appropriate contact, not simply to the newsroom.

Press releases will eventually generate great publicity, goodwill, and increased

revenues for your small business.

Promotional Items

The use of free promotional items such as pens, mouse pads, kitchen mag-

nets, yo-yos, stress balls, T-shirts, and zillions of other devices can be effective if

the message is extremely short, or if the objective is to reinforce a message that

is developed in detail elsewhere.

Promotional items may travel far and wide, and you never know where they

will end up. Many also have very long lives and can bring new customers to your

small business years after distribution.

Some items are more effective for a particular demographic group, such as

golfers or office workers. However, many end up with the children of the in-

tended recipients, which may be of limited value to your business.

If you are considering promotional items for your marketing mix, contact a

company that offers these products. Most will ask about your intent (for ex-

ample, “We are giving these away with brochures at a trade show,” or “We put

Monopolizing the Show

I once exhibited at a trade

show where vendors competed

furiously for attention from at-

tendees. The most successful

gave away increasingly expen-

sive promotional items, and

the most popular of all was a

well-known board game that

had been customized from its

original 1930s format to a mod-

ern, industry-specific theme.

The game was a big hit, but

the savvy exhibitor did not just

hand it out. Interested attend-

ees had to sit and listen to a

well-produced 15-minute dem-

onstration of the company’s

services and pass a simple

test before they were handed

the coveted box.

The exhibitor had no

trouble filling seats for each

presentation, and making at-

tendees “earn” the game in-

creased the perceived value of






both the prize and the

company’s services.

these in the bag of every customer at check-

out”), give you a catalog offering hundreds

of different items in various colors, sizes,

etc., and then advise on what may work best

in your particular situation. A graphics per-

son will advise you on what message can be

effectively applied.

Customizing the design and producing

and shipping these items will take at least

three weeks, so plan for a month. Although

these giveaways are free to your custom-

ers, they are hardly free to you: Expect to

pay from $0.25 for a cheap pen to maybe

$10 for a good coffee cup or calculator. In

most cases, printing, setup, and design

charges are additional.

Most small businesses do not have wide-

spread name recognition, so the short mes-

sages imprinted on promotional items

should be used in conjunction with other

devices if the products and services offered

are not apparent. For example, hand out a

brochure with the promotional item, or

make the items available to customers only:

They already know your business but may

need a reminder when it comes time to pur-

chase in the future. On the other hand,

“Tommy’s Tire Shops” need not be con-

cerned with developing the message since

the company name says it all.

Print Advertising

Print ads are the basis of all other forms of advertising.

Print ads, in this sense, mean newspaper, magazine, or trade-journal place-

ments, in contrast to brochures (described later). Although newspaper adver-

tising is not a great growth area, an increasing number of specialty trade

magazines serve just about every possible niche and interest of every possible

industry in every geographical region. As a result, the number of print adver-

tising choices available to small business owners continues to increase. Since

print ads can be expensive to produce and run continually, the big question is:

Are they effective?

It takes a lot of time and money to get the answer to this question. Many

companies have experimented with many publications over long periods of time

(repetition is important). Further, many potential buyers have become accus-

tomed to looking in specific publications when certain products and services are

needed. For many small businesses, the answer is simply to see where your most

successful competitors are advertising and then do the same.

Note also that there is a big difference in expected results from newspapers

as opposed to magazines or trade journals. Newspaper ads enjoy a shelf life of

only one day. Results can be expected almost immediately: If the phone does not

start to ring within 24 hours after release, it’s not going to happen. Magazines or

trade journals, in contrast, may have a shelf life of several months, as they sit

around in waiting rooms, on conference-room tables, and in the briefcases of

interested but busy executives.

In addition, newspaper ads are normally black and white, while print ads in

trade journals and magazines are usually in high-resolution full color. This re-

sults in better quality and impact, but higher design and production costs.

Timing of your ads is also of critical importance. In advertising, timing is

everything. A newspaper ad run by a toy store in January will probably not do

well. In contrast, an ad for an industrial products distributor describing the avail-

ability of the new HotHead welding gun in the very issue that names HotHead as

the most advanced gooseneck-design 400 amp welding gun on the market, should

draw a much better response.

Timing requires advance planning. The time required to design and approve

a printed ad and send it in an acceptable form to the publisher may vary from an

absolute minimum of two weeks to three months.

Speak with your advertising rep to learn more about this. While some reps

will say just about anything to get the business, others will suggest upcoming

special issues or insert sections designed to attract special groups. Also, learn

about production schedules, printing deadlines, and discounts for a long-term

commitment. Repetition pays. And repetition pays.

And also, repetition pays.

Company brochures may be the best overall way of describing to prospective

customers the Unique Selling Proposition (USP) of your small business, although

the usefulness of this marketing device is sometimes questioned. The purpose of

brochures is to give the prospective customer the warm, fuzzy feeling that your

small business is for real and can be trusted to deliver, whereas most other media

focus more on messages that issue an immediate call to action (“Buy Now”).

Consequently, brochures may be most needed in more complex situations, where

the products and services offered require real trust from the new customer be-

fore a sale can be contemplated. Or, the prospect may need to know more about

the exact USP of the seller.

A distributor of mail-order point-of-sale (POS) devices, for example, may

need a brochure to communicate to prospective customers across the country

that the seller is a large, established firm. Seller credibility is needed here, since

POS orders may be large, and if problems occur, an entire store may need to halt

business until the right equipment arrives. Here, a brochure with a picture of the

huge warehouse, a company history, a 1945 black-and-white photo of the founder

(the current president’s grandfather), and the normal feel-good statements (“The

customer is our number one priority”) would accomplish this purpose. Note that

the brochure does not contain an immediate call to action.

On the other hand, a company selling similar devices primarily from a retail

storefront most likely does not need a brochure. The living brochure is the store,

its employees, and its inventory. Printed hyperbole will not work as well here

because customers easily can see the real situation.

A brochure is normally a four-color production on high-quality paper stock

(read: the most expensive type of printed collateral) and requires a significant

amount of time to develop and print (read: design expenses not cheap). Because

of this, most companies design brochures to last a long time, even though spe-

cific products may change much more frequently. For this reason, most bro-

chures focus on the company and its USP, values, history, founders, and

clients—and not on specific products, services, and pricing. When prospective

customers need more specific information, then catalogs, spec sheets, line cards,

customized proposals, or other marketing materials are used.

For small business owners in some industries, a well-designed, high-quality

brochure is mandatory. In other cases, the usefulness of brochures is sometimes

questioned because few prospective 

 actually read them. As with

Websites, it’s too easy to end up with “company propaganda,” overstating the

firm’s credentials. Many readers become bored when every brochure they read

describes how every business is the best at everything.

Also, many adept sales reps sense that they are being turned away politely by

prospective customers who say “Send me a brochure and I will call you back

later.”

Look around. Most doctors, attorneys, CPAs and other professionals do not

use brochures, even though the business relationship requires great trust from

clients. In most cases, theses professionals prefer to sit with new clients for a

while and sell themselves.

Small business owners should think carefully about the value of brochures

before investing in this potentially important, but potentially useless, marketing

device.





Newsletters

A newsletter can be an inexpensive and effective way of reaching your target

audience, but when should it be used, and what can you say so that readers don’t

think it’s just another advertisement?

The purpose of newsletters is to generate goodwill and serve as soft reminders

that your small business offers certain products and services. The goodwill part

is accomplished by including articles and information of genuine interest to pro-

spective customers. These articles should answer questions and address con-

cerns picked up by your sales force or customer service reps. The newsletter

may also include direct ads.

For example, I once worked with a small business that offered a popular disk

storage subsystem to its medium-sized-business customer base. Many current

and prospective customers were asking if this device could be connected to more

than one server. The small business wrote an article in its newsletter laying out

customer options in a straightforward manner, including the pros and cons of

each choice, without any sales hype. The newsletter was well received and gener-

ated a number of calls.

Newsletters don’t need to be long and complex. My favorite format is a folded

11" × 17" sheet, resulting in a four-page newsletter where each page is a standard

8.5" × 11". This can be folded in half again, and half of one page can be used for

the mailing area (postage, return address, and mailing label).

As the name implies, newsletters should be sent regularly (for example, ev-

ery two months). If the newsletter conveys information of real value to your

target market, it may be read and passed around to others for some time. Other-

, it will be treated as just another advertisement. Useful newsletters are

often valued by readers, so to gain new contacts, be sure to include text such as

the following:


Address Additions, Changes, and Corrections

Want to receive Teramarkets? Just send us your name, title, business

address, and telephone number, as shown below. Already receiving

Teramarkets? Make sure we have the correct name and address

information for you and your associates. Please check the mailing

label (below), write in the corrected information (or additional names

to add), and fax back the entire page to (555) 820-6361. 

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