Revealed – Why Businesses Fail At Marketing

“I tried direct mail once, and it did not work”

“I have tried many different marketing approaches none of them worked”

“Over the past years we have spent a fortune on marketing nothing worked.”

“We did not see any immediate results so we dropped it”

I hear comments like this on a daily basis from business owners who are disappointed and frustrated that their marketing does not produce instant success. Their first question to me is typically “ What am I doing wrong?”

These are some of the mistakes I see people making on a regular basis.

Expectations, Patience and Commitment.

Many small business owners expect quick and easy success. This is unrealistic and a mistake. They drop a tactic before it has the chance to work and replace it with another doomed piece of activity.

My first question to these people is along the lines of “ How do you measure success?”

Sometimes the answer shows that people have no idea of what to expect from their activity, sometimes they just do not even measure results. My first task here is to explain the marketing numbers and manage their expectations. Marketing does not produce instant results it requires patience and commitment to a programme.

I was discussing using web windows with a client recently. These are the advertisements that appear in the Sunday Magazines. Usually there are about 20 on a page. The cost for this client was £545 and the circulation of the magazine is 1million.

The client’s average profit per order is £12 so to recover the cost of the space they need to generate 45 orders from the circulation of 1million. Sounds possible doe it not? But until we try we will never know.

Trying to sell in one step

For some businesses this can work, they are ones with little or no competition. You may attract the prospects who buy on lowest price. For most businesses customers need to get to know you, to like you and to trust you, so a one step approach does not generate sufficient results.

Targeting or the lack of it

Not everyone is a prospect for your goods or services. You must match the specific needs and concerns of your target customers and find your own niche. Also flawed is the idea that as everyone needs my product or service, my business should attract everyone. Make sure you know what makes your ideal prospect then develop your messages at them.

The power is in the offer

Take a look in your local paper. How many businesses use their name as their headline? What are they offering? What will they do for me? Unless you make an offer the customer can ignore your message. By making an offer they have to make a decision.

Lack of emotion

Your prospects have a problem, a bad emotion; you have the solution, good emotion. Use motion in your messages to increase the good and reduce the bad feelings. Make sure you are clear what problem you are solving.

Benefits

People buy the results of your product; make sure you concentrate on the benefits they will receive, not the technical features.

Follow up seven times

1 is never enough, once shows interest and allows you to develop a get to know like and trust programme. Make sure you put a system in place to capture these prospects and stay in touch regularly and in a variety of ways.

Selling not helping

People hate being sold to. Make the objective of your marketing and selling to help people solve their problems. Find out what their problems or needs are then set out to solve them for them.

Failing to test and track

Trying to guess what will and what will not work will not work. You need to treat all your activities as a test. If you have used it before did it do as well this time. If it is new how does it compare with the other things you do? Keep the good and stop using the bad. Keep records ask people how they heard of you, put codes on mail shots etc.

Boredom or change for the sake of it!

A favourite of agencies, who think because they have lived with the idea for months before it goes live then it needs changing. Wrong. You need familiarity, what is old to you is new to untapped customers.

Relying on just one or two marketing tactics.

We have always advertised in Yellow Pages etc type of discussion. There are hundreds of ways to communicate your message to customers and prospects. Try Consider how you could use, email marketing, viral marketing, PR, advertising, exhibitions, networking, sponsorship etc. Different customers respond to different messages, delivered in different ways and at different times. Try something new, measure the results and see how you can improve it.

“I want new customers”

Actually you already have them! They are the people who used to deal with you and have stopped. The cost of finding new customers is 6 times greater than selling to an existing one. What else can you sell to existing customers? Your first sale is just the beginning of the relationship.

“ I need more leads”

Yes but only when you have fully exhausted the ones you have already. Make sure you have a system in place to keep in contact. If they have expressed an interest they are likely to buy eventually.

“Our competitors do it so it must work!”

Really. Would you follow them in a price war? Be aware of what they are doing but do not let them dictate your strategy. Remember your business is unique.

“Lets spend more money”

The implication here is that if you spend more money it will increase sales, if only it was that easy. More promotion is the medicine to cure lack of sales but does not treat any underlying problems such as poor quality, poor service etc.

“Our customers are only interested in low prices”

Are you sure? Do they not want the best value for money? Not all decisions are made on the basis of price alone. Make sure you balance the value vs. price proposition.

“ I don’t need to plan”

Perhaps you do not. But a plan will help you to stay on track, keep control, avoid surprises and ensure everyone is on the same path. Most importantly the planning process will make you take a step back from the coalface to look at the bigger picture.

Relying on one or two major customers

There are some great examples of businesses that were so dependent on one large customer that when the customer moved away they went out of business too. If you have a customer that accounts for more than 25% of your turnover treat this as a threat. You may not be able to replace that customer quickly and easily if they change. Keep an eye out too if your buyers are nearing retirement. Make sure you develop relationships with the likely successors.

About GAP Management

GAP Management helps business owners and managers to focus their sales and marketing efforts to be more effective and to find win and keep customers, to grow their businesses and be successful whether they market in person, in print or on the web.

For personal help with marketing and sales to grow your business contact me on 01226 290288 or email Gareth@gapmanagement.co.uk