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Fishing For Customers - Free Small Business Marketing and Advertising Tools, Tips, Articles, Strategies, and Advice. Fishing For Customers: October 2008

Saturday, October 25, 2008

What's the Boss's Most Important Job?

The boss has a unique responsibility. And it's not the one most people think of when they describe the duties at the top.

Robert Kiosaki, in his best selling business book Rich Dad, Poor Dad, explained that as an employee, you have a job. As a self-employed professional, you own the job. And the owner of a business hires people to perform the job.

So, in terms of making business happen you are either someone else's employee, or you're responsible. There are no other options. And though there's an outside chance that in good times any business can just muddle through, over the next few years if you're not aggressively pursuing new business you're not likely to make it. Sorry.

Some people are just cut out to be employees.

Consider a carpet cleaning business. Not just any carpet cleaning business, this one was being contemplated by a young man who asked my help creating a marketing plan. He had worked for another, similar, business, enjoyed the work, and saw the profit potential.

We spent two days together researching and building that plan. When it was finished, I offered my best advice: DO NOT OPEN THIS BUSINESS.

The market was strong, there was room for another competitor, and the young man with the ambition and the new marketing plan actually enjoys cleaning carpets.

Unfortunately, he hates selling.

And, as we've already established, the owner's primary function is to bring in the work.

Does that mean face-to-face selling? Possibly. But it definitely means that the owner can't simply place an ad in the Yellow Pages and wait for the phone to ring. Business owners who avoid selling end up with skinny children.

At any given time, roughly 2 percent of any market is actively seeking what you sell. That 2 percent will come looking for you, or someone else who sells what you sell.

The other 98 percent?

You're missing them. Most of your competitors are missing them, too.

Most of your competitors.

Care to know who's attracting that other 98 percent? Those who actively sell the value of doing business with their companies.

The competitors who have television ads that are being watched by potential customers are getting some of the 98 percent. Those competitors who's postcards and letters are making it to the homes, who's public speaking and referral programs are producing familiarity, and who's Yellow Pages ads are being read by the very people who need their goods or services are tapping into the other 98 percent.

But, like the young man waiting for carpet cleaning customers to find him, those businesses which wait for customers/clients/patients to seek them out are hoping that their “share” of the 2 percent will pay the bills. It won't. After all, we're discussing 2 percent of a pie that may be shrinking for a while.

What will grow your slice of that pie?

There are two things you can implement immediately, and you should be doing them both.

Find a reason to get back in touch with every customer and every former customer, then remind them of the reason they chose to do business with you. That reason shouldn't be price.

If they were originally drawn to your business because of your selection, remind them that you can help them find exactly what they're looking for. If customers chose you for the speed of your service, point out all the other things they can be doing when they finish with you. If they chose you for your detailed knowledge, help them recall the value of getting exactly what they need.

You may indeed lower prices, but only do it if it will help you to gain some of your competitor's customers. And remember that he's going to be strongly tempted to lower his prices, too. Reminding people of why you're their best choice keeps you profitable.

Bringing in the business is the boss's most important job.

Are you the boss?

It's time to start selling.

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about marketing your business during tough times may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Sunday, October 19, 2008

Can You Use Cognitive Dissonance to Create More Successful Advertising

A couple of decades ago I sat on the invisible side of a two-way mirror and studied the members of a focus group as they watched some television ads my company was testing.

One of my company's most vocal supporters watched an ad that positioned our product as quite similar to our major competitor's product. He immediately lambasted our competitor.

Did you catch that? He saw a test ad in which our product claimed the same marketing position as our major competitor, and immediately assumed that the ad had been produced by that competitor, and promoted the competing product.

Was he easily confused? I think the answer is much more interesting: he suffered an episode of cognitive dissonance.

Cognitive dissonance is a psychological term.

The term was coined in 1957 by social scientist Leon Feistinger to describe the uncomfortable tension which results from a person having two conflicting thoughts at the same time. Feistinger theorized that when the mind is presented with evidence which contradicts strongly held beliefs, the mind acquires or invents new information in order to justify the belief.

Our supporter in the focus group was presented with evidence that one company (ours – his favorite) was claiming attributes of a company he actively disliked. His reaction? It must be the OTHER company making these claims. To admit otherwise would be to admit that his favorite product had THOSE characteristics.

Selective observation is another manifestation of cognitive dissonance. We see this in each of the Presidential debates. Viewers accept those statements which reinforce their current beliefs (justification), and ignore those which contradict (denial). You can accurately gauge the politics of each network commentator by noting which of the candidates the commentator proclaims to be the winner.

How does cognitive dissonance affect advertising?

In general, people tend to be optimistic. They believe themselves to be virtuous, to be intelligent, to be successful. And pointing out the difference between people's self images and the reality of their current situations can be a valid advertising strategy. The resulting cognitive dissonance can create an incomplete feeling in the customer who doesn't own whatever the advertiser is selling.

Does it work on everyone? Of course not. But, it can work on enough customers to be a valid strategy.
  • John thinks of himself as successful, but he drives a 5-year-old car. Mr. Car Dealer reminds John that the new precision driving machine only appeals to those with discerning tastes, and that being seen in a performance car will telegraph to the world that John is someone to be reckoned with.

  • Jim loves his wife. Mr. Jeweler suggests that if he really loved her, Jim would show it with jewelry as precious as she is. Mr. Jeweler suggests that two months salary is the appropriate amount to consider spending to tell her he'd marry her all over again.

  • Jake is a young professional, at the beginning of his career. Jake has been advised to look successful in order to appear to management to be ready for promotion. Jake's friends drink one of the mass advertised domestic beers. Jake has been affected by the advertising of an import positioned as higher quality.
  • Most advertising delivers images of what people say they want. Most advertising emotionally connects the those images things the advertisers sell. Cognitive dissonance adds the elements of guilt, regret, anxiety, or dereliction.

    Am I recommending the application of cognitive dissonance in your advertising?

    Maybe. Do you sell a premium product or service? For some premium products it's a valid strategy. For most, it's not.

    The stronger your position, the more likely you are to be noticed by high-probability prospects. It simultaneously eliminates the low-probability prospects. The stronger the dissonance, the better this strategy will work, if implemented properly. Taken too far the customer can be made to feel like a failure, and won't buy at all.

    Of course, there are consequences to no image, too. Serious consequences.

    What's your image? How strong is that image?
    __________

    Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about the use of cognitive dissonance to create more successful advertising may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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