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63 quotKiller Marketing Strategies By Dan S Kennedy Presented by More Valuable Kimme 3 Kennedy Marketing Tools Publishing Get more FREE marketing ebooks 3355 Bee Caves Road Suite 202 Austin TX 78746 T9 512 3284442 Dan Kennedy39s Complete Fax 512 3284454 Marketing Products Line wwwkimblekennedycom wwwfreebonuscom Important Notice C Published Under License by Kimble amp Kennedy Publishing All Rights Reserved You may freely distribute this ebook give it away from your website upload to bulletin boards distribute online but this ebook may not be sold For any questions or problems please email supportkimbIekennedycom 63 quotKillerquot Marketing Strategies How To Insure That Your ProductServiceOffer Is The Best It Can Be Presented The Best Way It Can Be By Dan S Kennedy Marketing Strategist Published under license by Kimble amp Kennedy Publishing 9433 Bee Cave Road Suite 2110 Austin TX 78733 wwwkimblekennedycom Copyright MCMLXXXIX by Dan S Kennedy ALL RIGHTS ARE RESERVED No part of this publication may be reproduced or transmitted in any form or by any means mechanical or electronic including photocopying and recording or by any information storage and retrieval system without permission in writing from the Publisher Published by Kimble amp Kennedy Publishing 9433 Bee Cave Road Suite 2110 Austin TX 78733 Tel 5122635151 Fax 5122639898 wwwkimblekennedycom DISCLAIMER AND OR LEGAL NOTICES While all attempts have been made to verify information provided in this publication neither the Authors nor the Publisher assumes any responsibility for errors inaccuracies or omissions Any slights of people or organizations are unintentional This publication is not intended for use as a source of legal or accounting advice The Publisher wants to stress that the information contained herein may be subject to varying state andor local laws or regulations All users are advised to retain competent counsel to determine what state andor local laws or regulations may apply to the user39s particular business The purchaser or reader of this publication assumes responsibility for the use of these materials and information Adherence to all applicable laws and regulations both federal and state and local governing professional licensing business practices advertising and all other aspects of doing business in the United States or any other jurisdiction is the sole responsibility of the purchaser or reader The Authors and Publisher assume no responsibility or liability whatsoever on the behalf of any purchaser or reader of these materials PRINTED IN THE UNITED STATES OF AMERICA Introduction 4 58 PM Saturday I39ve just come home from a 2 12 hour meeting with a new client In our discussion I stopped him from making a terrible mistake with a premium that would have cut the sales of his promotion in half it was a violation of Principle 12 1 also showed him a different way to use exactly the same premium that would enhance sales not diminish them Why do I tell you that To brag No that39s not necessary you39ve already bought this book And I have no burning desire to be a show off In fact I grow more reclusive with each passing year I tell you that because this fellow is a smart successful businessman with many years of experience under his belt and he has had the help of a number of other sharp people in putting together his business plan before getting to me Still he and they all missed this fallacy in their plan Not because they didn39t know enough to spot it I know for a fact that they did Not because they chose to ignore it Mbecause nobody no matter how smart they are can think of everything every time without a checklist Pilots forget to put the aps up Surgeons leave utensils inside people and sew 39em up As recently as six months ago I was so mentally preoccupied with something that when I pulled my car into a parking space I got out and started to walk away leaving the damned thing in 39drive39 running In this book I39ve done my level best to build the very best marketing checklist ever devised My idea is that each and every time you create or modify a product or a service or a promotional offer or an entire business each and every time you39re about to spend some hardearned money on advertising you39ll take out this book and go through it covertocover one Principle after the next checking to make sure your current brainstorm has taken every one of them into account The plain truth is that I created this thing for myself Then having put so much work into it I couldn39t get any sleep until I figured out how to sell it But now that I39ve done it I39m pretty pleased with it With it in your hands you39ve got a knowledgeable properly critical consultant on standby looking over your shoulder to make sure you put the aps up take the forceps out and shut off the ignition This will keep you from making a fool out of yourself if you use it I hope you will Dan S Kennedy The Author Beware Creativity Creativity can creep into the picture many ways including your own boredom with your business overestimating the sophistication of your market taking advice from unqualified sources etc The most important thing to remember as David Ogilvy put it is creativity is what sells Every element of an ad printed piece or strategy should advance the sales process If something does not move the prospect closer to purchasing what is its purpose It39s interesting to note that much of the advertising that wins the awards and the approval of the advertiser his associates friends and family members fails miserably in selling anything Most marketing purposes can best be served by sticking to the proven basics rather than relying on the current creativity fads Principle 1 Ask yourself are we being creative just for the sake of being creative Principle 2 About humor being funny in marketing is risky When it works it39s wonderful but it flops much more often than it works Ask yourself why are we trying to be funny Does it capture attention better than any other mechanism Also a tip being funny is safer with regular customers than with new prospects Principle 3 Watch out for the quotcreative graphic artistquot in putting together your print media The Artist is irresistibly tempted by creativity for creativity39s sake to justify his existence USP Without a UNIQUE SELLING PROPOSITION marketing is a tough challenge Having a USP that can be clearly and concisely stated often makes marketing easy A good USP should 0 differentiate you from any and all competition 0 emphasize a positive desirable customer benefit 0 be easily understood One of the best examples of USP helped Tom Monaghan build an empire in a stagnant oversaturated industry quotFresh hot pizza delivered in 30 minutes or less guaranteedquot Not only is this a terrific USP based on the above criteria it actually reveals a masterful insight into that particular customer39s overriding concern in this case not the best tasting pizza not the best ingredients and not 4 price delivery Incidentally Tom Monaghan is a savvy marketer An exclusive interview of mine with him appears on the following pages I also suggest you read his book PIZZA TIGER Principle 4 Why should 1 your prospective customer choose you vs any and every other alternative available to me You MUST answer this question Principle 5 If you offer the same product or service as someone else one of you is unnecessary An Exclusive Philosophy Of Success Interview with THOMAS MONA GHAN Founden Dominos Pizza Our MayJune Issue profiled Mr Monaghan and featured excerpts from his great book PIZZA TIGER Mr Monaghan is one of the true modernday Horatio Alger stories A brief capsule biography of Mr Monaghan is reprinted below then our exclusive interview begins Meet Tom Monaghan 23 years old no college degree no business experience no money He and his brother Jim open a small ordinary pizza shop at the edge of the Eastern Michigan University in Ypsilanti Michigan in December 1960 Their sales for the first week were an unimpressive 9900 After about eight months Jim abandoned the partnership trading his half for it battered Volkswagen Beetle that was being used for deliveries Meet Tom Monaghan 50yearold CEO of DOMINO39S PIZZA with 3846 stores in all fifty states plus seven foreign countries providing sales of nearly 2billion Toni Monaghan is also the owner of the Detroit Tigers baseball team a 35billion purchase No they are not two different people coincidentally carrying the same name Tom Monaghan is Tom Monaghan entrepreneurextraordinaire He transformed his little pizza shop into a giant business empire by developing and adhering to a simple successful concept delivery of a hot tasty pizza in 30 minutes or less incredible persistence hard work and a set of remarkably simple values Now he has chronicled his story of struggle and triumph in a new autobiography PIZZA TIGER Tom was raised in a Catholic orphanage He joined the Marines because he could not afford to go to college He started in the pizza business with a 500 00 investment in the single store and despite the partnership breakup a near bankruptcy a mismanaged expansion effort that caused him to lose control of the company and have to fight to get it back Tom has built the most successful pizza delivery business in the world His story is an outstanding example of how to overcome adversity in order to achieve success An Exclusive Philosophy Of Success Interview with THOMAS MONA GHAN POS Describe your personal success philosophy and how you developed it TSM The techniques I applied in building Dominos were developed mostly by trial and error But all of them were based on a homemade philosophy I call my five priorities I first came up with this list during a voyage from the Philippines to Japan while in the Marine Corps I had plenty of time aboard that troopship to re ect on my life and goals and I haven39t changed my list in any way since My five priorities are spiritual social mental physical and financial in that order POS If you would elaborate on those five priorities TSM First spiritual my religious faith I know I can never be a success on this earth unless I am on good terms with God In my early years I was hit by a long series of di iculties But I was able to get o the oor every time and come back stronger than ever because I believed in myself That39s what the power of faith did for me My spiritual priority as far as business is concerned is expressed in the Golden Rule To be successful you must have a good product give good service and apply the Golden Rule POS Tell us about the social priority TSM Having a loving wife and family that39s essential for a happy and productive life My wife Margie was in my corner through all those tough battles of the early years at Dominoes Pizza To say I couldn t have succeeded without her would be a tremendous understatement After family on my scale of social relationships come friends Nobody can succeed in business without friends Community involvement is another important part of my social priority A business has an obligation to participate in programs to help the community that supports it POS Describe your mental priority TSM The purpose in having a strong mental priority is that it is the key factor in maintaining a healthy mind and a clear conscience A healthy conscience fosters selfesteem a positive attitude and an optimistic outlook All these things promote success in business I firmly believe the mind needs exercise It will grow in capacity and thinking ability if it is forced to by constant questioning and the desire for new information POS And your physical priority TSM It may sound corny but I subscribe to the idea that the body is the temple of the soul That39s why I place so much emphasis on maintaining a healthy physical condition I try to work out 6 days a week and run to work at least 3 times It alleviates stress and really gets my adrenaline going I can39t think of a better way to start my day POS Now we come to your nancial priority last on your list which will probably seem a little odd to our readers Why last TSM The nancial priority is last on my list because it arises from the others I know that ifI attend to the first four properly nancial success will follow POS You39re known to have a large extensive selfimprovement library What are the business and success books and authors that have had the greatest impact on you TSM While I credit my ordered list of personal priorities as being responsible for my success I did turn to other sources for suggestions and guidance Two that come to mind right away are Napoleon Hill39s THINK AND GROW RICH and the Dale Carnegie courses and publications You can never read too much but always know that you have final editing privileges and can use what information and advice you feel is valuable and ignore the rest POS Do you recommend any other books TSM I have a standard list that I recommend to help people as they get started in life business or any venture THE ONEMINUTE MANAGER IN SEARCH OF EXCELLENCE THE SKY39S THE LIMIT by Wayne Dyer THE AUTOBIOGRAPHY OF FRANK LLOYD WRIGHT UP THE ORGANIZATION any publication by Knute Rockne GRINDING IT OUT by Ray Kroc CORPORATE CULTURE HOW SHOWMANSHIP SELLS MY LIFE AND MY WORK by Henry Ford POS Let39s delve into your success story How did Dominos start TSM I was in the process of enrolling at the University of Michigan and operating a newsstand in Ann Arbor when my brother Jim who was a postal worker came to me with a terrific proposal for a business partnership He had a chance to buy a pizza place in Ypsilanti Michigan from Dominick DiVarti The place was known as DomiNick39s Jim 8 proposed that we buy it together and take turns operating the place The selling price was 50000 plus assumption of a few thousand dollars in debts It seemed like a big obligation but the store only operated 7 hours a day from 500 to midnight I figured I would work 312 hours Jim would work 312 hours and the income would put me through architecture school I could see myself becoming an architect and a wealthy pizza entrepreneur at the same time POS What were those early days in business like TSM Those days were my education My confidence rose quickly during those early months in the warm kitchen of DomiNick39s I was learning something new Sales were climbing I spent a lot of time developing the product DiVarti took Jim and me to his Ann Arbor store and gave us a few lessons in pizza making He claimed the secret of a good pizza depended on the sauce His statement made a lasting impression on me and I spent a lot of time developing the sauce POS Did you get much continuing training or help from DiVarti or anyone else TSM I learned mostly through trial and error I soon knew what sold and what didn39t where we made money where we lost our shirts and how to speed up the pizzamaking end of the business POS When did you begin to see your business as a big business TSM About 8 months after starting Jim came to me and said he wanted out of the partnership He was concerned about jeopardizing his job at the post office I on the other hand was committed to the pizza store I had given up my newspaper enterprise I felt the weight of the debts we had to pay off With Jim stepping out my hope of running the business parttime and going to school fulltime ew out the window for good It was a setback but I took it in stride and felt optimistic I told myself to accept the situation as it was and turn what seemed to be a negative into a positive In that instant I made the decision to commit myself heart and soul to being a pizza man And the funny thing was I felt a sense of relief My purpose was clear I thought of all the dreams I39d had of being wealthy and successful and I told myself quotif it is to be it39s up to mequot POS Many entrepreneurs look at your example as real proof that they can succeed in a big way too What advice can you offer such a person TSM The best advice I can give is not to give up if you believe in yourself and your goals I think that kind of determination sets an entrepreneur apart from other businesspersons That never give in or give up39 attitude is so important 9 Looking back I39m sure a majority of people if asked to advise me on my business affairs would have said to bail out But I didn39t andthe payoff has been tremendous POS What39s the biggest business problem you ever faced and how did you overcome it TSM The biggest problem was losing control of Dominos Pizza in 1970 Some very serious financial errors and poor management decisions put the company about 15million in debt It took me two years to turn things around and gain control In that time I did a lot of re ecting on what went wrong Primarily I believe our problems involved sending inexperienced managers out to run our stores expanding too rapidly POS From that experience what do you think your greatest strength is as an entrepreneur TSM With the business problems I39ve suffered along the way I39ve always held the attitude that the best solutions and plans of action are created through trying and failing Failure teaches you to nd the positives that all adverse situations contain So I believe one of my greatest strengths is the ability I39ve developed to turn adversity into advantage POS if we can do a little word association just give us whatever pops into your mind as a result of these words PERSISTENCE TSM It proves that you really believe in what you39re doing It is a necessary ingredient no matter what you39re trying to attain POS ENTHUSIASM TSM I read somewhere that Freud said the two most important things in human existence are love and work I agree And I think people are at their best when they combine the two and love their work POS VISION TSM Of your list I believe vision is most important It was such a driving force for me Without vision it would have been impossible for me to be effectively persistent From almost the beginning I saw Dominos as being a strong force in the future of the food industry POS COMPETITION TSM Competition makes all the work and all the efforts more fun and meaningful The idea of being in competition with other fast food establishments has been a strong part of my drive I have to add that I firmly believe in competing by the rules I don39t believe you39ve really won unless you39ve done it fair and square 10 POS What39s next What lies ahead for Tom Monaghan TSM Because I am a goaloriented person there are a lot of things that lie ahead for both Dominos Pizza and myself Professionally I39d love to see Dominos become the 1 fast food chain in the world Personally I will see my dreams and plans for Domino39s Farms in Ann Arbor the site of our world headquarters carried out This Exclusive interview was possible through the personal cooperation of Mr Monaghan and Ms Anna Chaperis Philosophy Of Success Magazine appreciates their assistance Mr Monaghan39s new book PIZZA TIGER is available in most bookstores Principle 6 Attack On A Narrow Front 11 In their marvelous book MARKETING WARFARE Ries and Trout39s Offensive Warfare Principle 3 is quotLaunch the attack on as narrow a front as possiblequot As you evaluate your competition you should be looking for a narrowfocus aspect of business to attack rather than going head to head with every product or service offered by the competition In the quotinstant printingquot or quotstorefront printingquot business companies like AlphaGraphics and Kinko39s Copies did this brilliantly Although like their competitors they do just about any type of printing including envelopes booklets etc they focused all their marketing muscle just on quotcopiesquot Unlike most independently owned neighborhood pizza and Italian restaurants Dominos kept its menu to a minimum just pizza and one brand of soft drink so they could attack on the issue of delivery A frequent natural and understandable entrepreneurial error is quotspreading oneself too thinquot There are so many terrific opportunities So many great ways to promote Like a kid turned loose in a candy store we overindulge We must pick and choose the battles we39ll wage and the battlegrounds we39ll fight on carefully strategically If we say quotyesquot to every opportunity we39ll spread our resources so thin giving a little to a lot of different projects that every project will be cursed with insufficient resources Instead we want to funnel our resources We want to divide our resources between only a handful of projects so we give more to fewer projects 12 More About The Importance Of Market Niche To operate as a quotgeneralistquot takes huge sums of money To open inventory staff and operate a department store for example obviously costs a great deal more than to open a specialty retail store In the bookstore business the independently owned bookstore is virtually extinct they cannot compete with Walden s and Barnes and Noble But there are independently owned Mystery Book Stores doing quite well In mail order the same principle applies To go up against say Eddie Bauer and sell all sorts of outdoorsy wear is going to be a tough very costly proposition But you might be able to build a successful business selling appropriate outerwear just to trout fishermen with a helluva lot less money and risk It seems to me there39s a wonderful opportunity right now in the quothair businessquot for a chain of updated modern maleoriented barbershops Principle 7 As a general rule of thumb I think you need 20 times as much capital to build a generalist business than to build a specialized business 13 Create Names That Communicate I believe that the name of a business product service or offer should communicate what it is or does Why make it tough on the customer I drive past businesses with names that could be restaurants or could be gift stores or could be Godknowswhat How can this possibly help business The people at Marriott are generally pretty sharp but whoever conned them into changing the name of the Big Boy Restaurants to J B39s Restaurants should be shot All those years and dollars building that name and character identification thrown away in favor of a quotnothing namequot This is a big big mistake A much better move quotMarriott39s Big Boy Family Restaurantsquot Keeps the established ID adds the quality Marriott name adds Family to imply meals not just sandwiches You39ve got to think very carefully about product service offer publication and business names They should earn their keep They should add something to the marketing process not detract from it EverReady is a much better name for a battery than RayOVac Obviously you can point to exceptions After all McDonalds could be just about anything couldn39t it Yes but first remember that Ray inherited that name he didn39t choose it or create it Second do you really want to make their kind of investment in creating name recognition Principle 8 Choose a name that makes a positive contribution to the marketing process March 3 1989 Even the biggest and the best can be stupid The May Company Department Store chain having acquired our Arizona Goldwaters stores has announced it will change the chain39s name from Goldwaters to Robinsons Is this smart Consider the Goldwaters chain was created and built in Arizona by the famous Goldwater family best known nationally for the crusty Senator Barry Goldwater The name in Arizona is as old as Arizona Specific to the stores it is generally regarded as the highest quality or if you will elite department store Millions and millions of dollars of cumulative advertising has built this name Free publicity occurs every time Barry makes news which he still does with regularity Presumably the decision to change the name is motivated by a desire to connect with the strong West Coast identity of Robinsons Given all that what would you do Well the one thing I definitely would not do is abandon the Goldwater name I might call it The New Goldwaters39 Or I might call it Goldwaters amp Robinsons Or Robinsons amp Goldwaters 15 Personality People generally Prefer dealing with other people not nameless faceless entities Many mailorder company leaders have discovered this and thoroughly injected their personalities into their catalogs such as Richard ThalIheimer Lillian Vernon etc It39s worked pretty well with laccoca at Chrysler too I believe most marketing to consumer or businesstobusiness can be enhanced by funneling the message through a single dynamic personality with whom the customer can identify and relate Example in the casinohotel business in Las Vegas nobody does this better than Bob Stupak owner of Vegas World on the Strip My exclusive interview with Bob and my article about him is reprinted on the following pages Consider the personality of Mickey Mouse quite possibly the most effective spokesperson personality the world has ever seen Emperor Hiruhito was buried wearing his Mickey Mouse watch And more Chinese kids watch Mickey on TV everyday than the entire US population If world peace ever breaks out it will probably be because of this character and the ingenuity sincerity and goodwill he represents Imagine inventing and owning such a personality Bill Cosby the perfect personality for Jello products Colonel Sanders For every one of these superstar personality examples there are hundreds of lesser known but nonetheless effective examples In businesstobusiness marketing the President of Viking Office Products is a shining example Bill King the founder is a powerful believable and likeable spokesperson for the BrakeO repair shops Principle 9 Most businessesproductsservices can benefit greatly from either an actual owner spokesperson celebrity spokesperson or created character spokesperson 16 Interview With Bob Stupak Of Vegas World by Dan S Kennedy In Las Vegas the talk about Bob Stupak is never neutral it is positive or critical or satiric but never quotneutralquot The brush boy wonder of the far end of quotThe Stripquot has transformed the Vegas World Hotel and Casino from a small joke to a giant contender using innovative marketing and entrepreneurial techniques unheard of in the gamblinghospitality industry His is a ragstoriches story with some added mystery and drama appropriate for a glittercity entrepreneur he was accused of burning down his first casino for the insurance money Stupak has heard so much criticism he generally replies only with his phenomenal record of accomplishments However in this Exclusive Interview he agreed to answer any and all questions posed to him I met with Bob Stupak first in the coffee shop then at an unused poker table in the casino in his Vegas World properly I have visited Vegas World maybe a dozens times in the last several years and it has always been under construction the main oor interior was redone last year in an outer space motif now the showroom is being remodeled In spite of the nonstop change that has become an unadvertised Stupak trademark the main casino areas and the lower rooms are so well done that Vegas World was used as the filming site for many scenes in the NBCTV series CRIME STORY in 1986 As we sat in the casino talking customer after customer stopped to say hello to Bob most acting as if they were old friends DAN That39s the fourth person who s stopped to talk with you but they don 39t exactly look like highrollers BOB They39re not We have some big players who are regulars but also a lot of other smaller players even a lot of locals I know many of them and many more of them feel they know me DAN You seem to cultivate that Do You BOB Well it39s one of the ways Vegas World is different You can39t exactly go into Caesar39s or Bally39s lose your money and shake hands with Caesar or Bally Here people know who they39re losing to or winning from me DAN Isn39t that sort of it throwback to the beginnings of this business BOB Sure In the 4039s it was Wilbur Parks Desert Inn Sam Boyd39s California There39s still Binions But there39s no casino owner today as visible as I am People know who I am and that they39re 17 DAN BOB DAN BOB DAN BOB DAN BOB DAN BOB doing business with a person We compete with the personal touch Well let39s back up and nd out how Bob Stupak got to be king of Vegas World How 39d you get started its business At age 19 I put together a restaurant coupon book and a phone room operation to sell them I built that business into Dine Out Clubs Of America Along the way I sold the business once went to Australia for eight years and did business there My exwife has the Dine Out business today although I kept one city to remind myself where I came from When I went broke I went back to the coupon book business and was out on the street selling right back where I was when I was 19 That was tremendous inspiration Give us Your Vegas chronology My first casino a tiny slotmachine casino burned to the ground six weeks after I got it I was able to move the license to another little place only 90000 a month rent Ultimately I sold the place for really just a few thousand dollars and used the money to get Vegas World You know I bought this property dirt cheap I thought it I was on the strip I was so dumb I didn39t know that quotThe Stripquot ended at the Sahara Most of the owners of39 the hotels on the strip laughed about the dumb kid who bought this lemon location Turns out my customers don t know where The Strip ends either You39ve built a giant entity here so your philosophy obviously works I guess so but I don39t feel all that successful I feel like I39m always struggling If I didn39t I don39t think we39d keep growing Can you elaborate on that give me an example The new tower is a good example See we don39t owe anybody anything I borrowed to build in 1978 but never have again Bankers and I don39t get along very well So we pay cash as we go for everything That new tower finally cost eleven million dollars Are you saying that you saved up eleven million in cash to build the tower No I got enough money to do the plans then started building We39d go as far its we could stop wait until I had enough money to build the next oor Just one month at a time and before I knew it it was finished But I doubt that I would have worked hard enough promoted hard enough to make that eleven million in that short period of time if I hadn t been committed to the 18 DAN BOB DAN BOB tower I mean that s eleven million dollars taken right out of the current cash ow and profits of this place What I do is constantly take on projects that I can t afford so that I keep creating and working It39s in my observation that there is more marketing and promotion going on here than with most casinos Is that your work Marketing is what I do I can hire terrific qualified people to do just about everything else but marketing is what brings in the people brings in the money so that39s what I do I have over 100 different marketing methods working at one time 100 I 39m aware of the Vacation Club packages Is that you39re main method Funny the Vacation Club package is a sophisticated version of the coupon books I started in business with when I was 19 We advertise those in PLAYBOY at 3600000 a page I think PARADE MAGAZINE in many Sunday newspapers at over 10000000 a page and in many other magazines 1 We also distribute little minicoupon books free by the ton Five million coupon books a year These bring in several thousand people on a good day some staying here most just passing through and playing We spend 30000000 per month running tour buses DAN You39re also famous for the weird games aren39t you BOB DAN BOB DAN BOB Not as much as I used to be In the early days when I couldn39t afford to do as much advertising and marketing I had to find ways to get publicity So I altered the games In 1979 for example I made national news with quotDouble Exposure 21quot I created my advertising for it first by the way Then I got the mathematicians and computer people to figure out how to make it work The same with our Crapless Craps These kinds of games are tied to my being known as quotThe Polish Maverickquot I notice that the neckties your dealers wear are imprinted with the Words He 39s Polish That39s obviously part of the Polish Maverick idea right Yeah The whole thing39s just plain fun People think it39s funny It communicates that I39m a regular guy How do your peers in the casino industry view you and your innovative promotions I don39t really have any peers The others are all big corporations 19 DAN BOB DAN BOB DAN BOB DAN BOB DAN BOB DAN BOB run by bankers accountants executives in pinstripes I m a gambler In the entrepreneurial sense Yes but in the gambling sense too I gamble personally My biggest bet was 80000000 on a fight Does that sound shocking I gamble millions here every day too When somebody comes in here and wins big that39s my money he39s taking from my pocket to his I39m thinking of building a second 1100room tower That39s gambling another 25 million dollars Back to how do others in tire casino business view you Why don39t you ask them Some think I39m a joke even as I39m sneaking up on them I39m glad they don39t copy what I do If Caesar39s did it everybody39d copy it But because it39s me the oddball nobody copies Did your recent campaign for Mayor cause the city and the industry establisment to take you any more seriously I don39t know about that I sure got a lot of press And we wound up with the biggest voter turnout in Vegas history But as you know I lost Want to talk anymore about it Not really I don39t like losing But I understand I was bucking the entire establishment They were afraid of me they knew I would be 100 independent I was also bucking my own promotional image Some people were probably afraid that I39d paint giant spaceships on City Hall 2 Last year CRIME S TORY filmed here but not this Year Any problems with NBC No It was good for us I assume good for them But it is such a disruption I couldn39t afford to have it continue year after year You39d be amazed I watched 135 people involved in filming a simple 90second sequence The cost of39 all that The time Incredible Is the movie business in your future What is next for Bob Stupak As a matter of fact we are in preproduction on a movie I want to make My handson control I could shoot that same scene with six people I think I can make a movie for 12million dollars 20 that will look like a typical ten million dollar production I39ll still be here though I moved so I live within a few minutes of this property I39m building a new second oor showroom This is more than just a business to me DAN Bob thank you for your time I 39m certain our readers will see many success principles and lessons in your comments Thanks and good luck 1 The Vegas World Vacation Club will probably be advertised in a future Success Bazaar Supplement to this Magazine 2 This comment refers to the dramatic outer space theme of the entryway to Vegas World PHILOSOPHY OF SUCCESS MAGAZINE issues its special International Doers Family Club Membership to Mr Stupak We appreciate his giving of his valuable time to this interview 21 More About Personality I just heard 0139 Tom Bodett on the radio for Motel6 with the country fiddle music in the background and the friendly tag line quotand we39ll leave the light on for youquot These radio commercials have been fabulously successful and it39s easy to understand why As I listen to him I get sucked right in He39s a friendly voice to a lonely traveler He says that eating a pizza on the bed while watchin39 TV is the price of success But if you39re lonely you can call home with no nasty hotel surcharge on the call and listen to the kids fight Even knowing what miserable bland crackerboxes these motels are he makes me want to like them I remember reading an article somewhere about Tom and how surprised he was at the success of the commercials and how happy he was to get the money they paid him for them Well he39s worth every penny A lot of spokespersons aren39t If given a choice of marketing tasks I prefer working on a project with either a strong celebrity spokesperson or in my opinion better yet a strong owner spokesperson You can throw celebs and athletes around all day long and you still can39t beat Lee Iaccoca talking about the customer39s bill of rights And where is GM39s Chairman anyway I suspect Perot is correct he39s hiding From Iaccoca you just get the feeling that this guy might actually visit a service department once in a while eat ribs with his fingers have a couple beers and cuss out the refs I think John Madden39s a good choice for Ace Hardware You can picture him bumbling around the house trying to fix something and screwing it up I don39t think the actress from 39Moonlighting what39s her name was a very good spokesperson for the beef council Somehow I doubt she eats real food How about you There39s a wonderful marketing principle that can be applied to many different situations that says people want most what they get the least of Denied access increases desire that39s why sexual excitement39s tough to carry off in a marriage As a general observation we mostly have to deal with quotimpersonalquot institutions computers and quotimpersonalquot people It39s getting worse not better So give your public a really friendly personable believable quotregular guyquot to deal with and they39ll be thrilled By the way think about Ronald Reagan for a second I39ll bet you could list 100 products services and companies he39d be a great spokesperson for Now try the same exercise with Carter Mondale or Dukakis 23 Specialization No doubt you39ve heard the old joke about the husband who comes home from his first visit in a While to the supermarket amazed at all the changes that have taken place there since the last time he39d gone quotEverythin39s specializedquot he tells his Wife quotWhy they even have a VicePresident in charge of prunesquot Of course she doesn39t believe him calls the store and asks for the VP of prunes The voice on the other end asks quotPitted or driedquot Well this is the Age Of Specialization and specialized products for specialized purposes and specialized markets have more value than generic versions of the same product Example here in Arizona we have quotSun Tea quot It s very popular to put tea bags and water in a jar outside and let the sun brew it naturally And although any jar works the stores sell huge quantities of SUN TEA JARS They are ordinary glass jars with the words SUN TEA JAR silkscreened on them They sell for as much as 15 in some stores Example by taking our basic marketing advice and packaging it as quotpractice promotion advice quot for Doctors we 39re able to charge roughly double for it in book and tape form Ijust recently saw a TVcommercial for a line of microwaveable dinners labeled KID39S KITCHEN for the kids to prepare for themselves Listen microwaved spaghetti is microwaved spaghetti but I39ll bet you39ll find kitchens stocked With adult microwaveable spaghetti dinners and these Kid39s Kitchen dinners This is very savvy thinking Principle 10 How can you customize your offer so that it is specialized not generic 24 BUYING MOTIVES Success in marketing depends greatly on our ability to match a productoffer with existent strong buying motives Although there are many different adaptations for the most basic of motives we always begin with the most basic of motives which is AN EFFORTLESS MAGICAL INSTANT QUICK FIX Example observe weightloss ads print or broadcast One of the most successful of these in recent history was headlined LOSE WEIGHT WHILE YOU SLEEP Example one of our alltime bestselling businessoriented Audio Cassette products is a program directed at the receptionistsecretary teaching effective telephone skills We produce a version of this product that we market under our own label another version for chiropractic and dental offices and we created a version for a client which they sell in their catalog Why is this product so successful Because the employer sees it as an effortless quick fix buy it hand it to the employee and she39s trained Example the remarkable success of 39subliminal cassettes39 is due to the idea that they create positive change with no effort on the user39s part Principle 11 Have we made getting desired results with our productservice sound as EASY as possible BUYING MOTIVES From the book BREAKTHROUGH ADVERTISING by Eugene Schwartz 39The power the force the overwhelming urge to own that makes advertising work comes from the market itself and not from the advertising copy Copy cannot create desire for a product It can only take the hopes dreams fears and desires that already exist in the hearts of millions of people and focus those already existing desires onto a particular productquot This is why success comes from identifying a buying motive and structuring a productserviceoffer to fit it not from creating a productserviceoffer and then going in search of a buying motive for it No amount of advertising can sell a product no one wants Example in 1988 or 1987 there was considerable publicity about a new product called quotLe Fuenellequot a disposable paper funnel device that makes it possible for women to urinate without sitting down Most recently I read in the trades of the extraordinary difficulty the inventor was having in marketing this product I wonder why Principle 12 Does somebody really WANT not just need your product 25 Needs Wants Zig Ziglar coined a marvelous phrase quotEmotional Logicquot I don39t care if you39re selling the dullest most technical businesstobusiness product ever invented you won39t sell it successfully on logic alone After a seminar for a direct marketing club an executive from a very large computer manufacturing company accosted me and wanted to know if I thought expensive sophisticated software packages in the 1000 to 5000 price range could be sold via direct mail I said quotYesquot if you know who your prospect is and why he should want your software The exec then gave me a 10minute dissertation on why his software was needed For one thing it sped up the processing of certain data by 200 quotSo a guy could get a project done in 14th the time it takes now and go play an afternoon of golf without feeling guiltyquot I asked quotWhat does golf have to do with itquot he asked Hopefully you understand that golf has everything to do with it Why in hell would I want to get my work done four times faster if all I39m going to get as a result is more work to do Then a guy like that39ll tell me quotThe people we deal with are more sophisticated than thatquot Really I wonder why that Jones fella shelled out all that money for the Dallas Cowboys Did he need a football team Did he need a job Donald Trump just bought a huge house in Palm Beach Guess he needed a place to sleep Sophisticated folks buy a lot of stuff just because they want it Like car phones I know people who live four miles from their offices and never go anywhere who have car phones One of the reasons I got my current house was the spa in the backyard and I haven39t been in the damned thing in five years If you market based on rational thinking on the prospect39s part and only that you39re in trouble Some years ago in of all places the Houston Airport I got hooked in a boot store by a lady named Avis Hall She sold me a pair of winecolored all eel skin cowboy boots for 80000 At the time I didn39t even need a new pair of shoes let alone 800 worth of eel But boy was she good She showed me how incredibly comfortable those boots were How well they held a shine How they were so distinctive everybody39d admire them She told me how rare all eel skin boots were She showed me the Hollywood stars she sold boots too When she got done I wanted 39em and I bought 39em Together she and I figured out that wearing these marks of quiet elegance would surely help me close some deal that would more than pay for the boots I also got a black tan and gray pair Avis fed me just enough logic to justify the purchase but she gave me a supercalifragilistic dose of emotion at the same time If you want to sell more of whatever you sell try this exercise write down all the logical reasons why I ought to buy what you39re selling Then come up with an emotional motivation tied to each logical item If you don39t know who Zig is where have you been Get his book SECRETS OF CLOSING THE SALE and devour it There39s a great story in there about how years ago Amway39s Rich DeVos got sold his first private jet 26 A Few Words About Giving People What They Want The American public may not be very bright and I suggest they are not but they sure are stubborn If they don t want it you just cannot make them buy it The Democrats have been having a hard time learning that lesson in recent history Jimmy Carter tried to sell the public on a sour depressed anxious view of life He reminded me of Charlie Brown who said I only dread life one day at a time And the public threw him out of the White House Walter Mondale tried to sell the American public on the idea that we must sacrifice in order to give more of our money to the bureaucrats so they may trickle some of it back into social programs His own mother didn t vote for him Michael Dukakis tried to sell the public Jimmy Carter with a different accent The public was not fooled by the disguise Keep in mind by the way that all this selling has been done as a sparenoexpense basis bringing together the best and brightest or at least the outrageously paid copywrititng advertising marketing and public relations pros on the planet Together they still could not sell the public what they didn t want So what do you do if you have something that people need but don t necessarily want Health for a long time was in that category to some degree still is Or safe sex and condoms Or life insurance One good answer is get out of the business You ve no doubt heard the old gag about the guy at the circus stuck with the job of cleaning up after the elephants There he is under the hot sun up to his ankles in elephant dung sweating shoveling and grumbling He s asked Why don t you just quit this lousy job And he answers What and leave show business For over ten years I ve been involved at various depths in the sale of self improvement and success education materials books cassettes seminars and other stuff having to do with goalsetting personal finance selfesteem and communication information people desperately need to live fulfilling and successful lives but for the most part information they just don t want But get out of show biz Not me I long ago committed the Big Business Sin of falling in love with the product I cannot quite bring myself to leave it all behind me From this experience I ve learned out of necessity the only way you even have a prayer of successfully selling people what they want and what is good for them you have to sell it to them for reasons other than the real reason they should have it for purposes other than the real purpose it will serve touching buying motives stretched to fit If you find yourself charged with the task of marketing something that people do not automatically want I urge you to think very carefully about all this Principle 13 RT Barnum said No man ever went broke overestimating the ignorance of the American public 27 Guts Sometimes successful marketing requires courage Example I lived in the Cleveland Ohio area when Carl Stokes ran for mayor At the time he was one of the first blacks to seek the mayor39s office in a major city and it was a very big deal The Stokes campaign ran a fullpage newspaper ad with this headline DON 39T VOTE FOR A NEGRO The body copy of the ad continued Vote for a man Vote for ability Vote for character Vote for a leader A man who can attack the problems and solve them A man who can rally the people of Cleveland Carl Stokes Carl Stokes won he was the mayor of Cleveland Running that ad took guts It took an issue people were whispering about and screamed it out in the open It turned a marketing disadvantage into a weapon It challenged people Example for several years I ran a company in Chapter 11 bankruptcy Early on in the process we faced the problem of that blemish being gossiped about in our primary marketplace erroneous information being spread by a competitor and the problem of having new clients trust us My choice was to meet it head on We talked about it openly and explained the facts in all of our advertising and promotional materials We disclosed it at the beginning of every sales presentation We39d say quotBefore we get started Mr Client you should know that our company is in Chapter 11 Reorganization Let me quickly explain what that means quot As a result we had no difficulty securing new business and retaining established clients Principle 14 Have we taken a gutsy approach Could we Should we Is there anything we39re avoiding talking about because we39re gutless Principle 15 Every product or service has a flaw When you own up to your flaw you gain strength you don39t lose it 28 How Can The Damaging Admission Strengthen Credibility First it can do so only when you make it first and make it voluntarily If you wait until someone else like a competitor points it out look out A friend of mine ran for the US Senate from Arizona against an entrenched incumbent One of my friend39s problems was the revelation that he had only recently become a registered voter This was much more damaging than it needed to have been only because he wasn39t the first to announce it He also happens to be a recovered alcoholic and AA member Had I been he I would have included in every speech from the beginning something like this quotTo save my opponent the trouble let me tell you the only two liabilities I bring with me to this important race First I have lived in Arizona for years as a nonregistered voter Why I have no good reason although I have many excuses some better than others but none admittedly good enough I was very busy building my business from scratch working 18hour days and 7day weeks and I told myself that I would get financially secure first then turn my attention to civic responsibility In retrospect that probably wasn39t such a good idea but it is fact I would now hope that my qualifications and my sincere desire to serve will be judged not my past noninvolvement I might add that every one of you knows someone who39s not registered to vote either Please join me and encourage them to join me in doing it now Second I am a recovering alcoholic and AA member Let me tell you what that meansquot etc Second how can a damaging admission strengthen credibility As an example consider these facts about me which I freely and frequently mention in my speeches as well as my books I39ve been personally bankrupt had two cars repossessed that same year and have had one business go through Chapter 11 and Chapter 7 and subsequent rebirth from the ashes Does that describe someone you want to take business advice from Of course when you balance that against my record of successful accomplishments the picture changes dramatically But beyond that I suggest that I bring added wisdom to the table thanks to the problems I use it all as a marketing tool I believe everybody knows no thing and no one is perfect They are on the alert for the hidden aws By bringing the aws out in the open you are more believable not less believable 29 Specific Marketing Techniques A quottechniquequot is a certain way of doing something There are probably hundreds of different techniques for putting using a pool cue counseling troubled teens sewing fabric or having sex And although different techniques undoubtedly work with differing degrees of effectiveness for different people in different situations there are some techniques that stand out as most effective most often for most people in most situations In marketing there are such techniques too and the ones that follow this page are the ones I39ve found most effective most often in most situations for myself and most of my clients By the way there are even different techniques for something as mundane as shoveling manure When I did that at the racetrack I noticed that everybody had a different technique One guy attacked a stall by first separating all the straw that was still clean dry and good and stacking that in a corner Another guy divided the stall into quadrants and did one quadrant at a time top to bottom Another guy well you get the idea Some people used lime powder to dry out and deodorize the soggy spots before layering over them with straw Others just used dry dirt never lime I39m not sure that any one way was universally better than any other way I tried a bunch of different ones before settling into my own technique In fact it took me months before locking in on a single technique I felt was best It39s taken me a lot longer to lock in on the techniques suggested here Each one probably represents years and tens of thousands of dollars maybe more in experimentation 30 Value Vs Cost The Bigger The Spread The Better There39s no easier marketing job than selling money at a discount IfI was having a sale on 20 bills today and you could buy as many as you wanted for 5 each and were absolutely convinced they were real how many would you want How fast would you respond That39s the kind of offer you need to structure No it39s not easy to do this But it can be done and it is done all the time Recently in our market area Burger King ran a promotion where you got a free quotcompanion ticketquot on Southwest Airlines with every Whopper fries and Coke Now you can look at that one of two ways free food if you need to y or a free trip if you need to eat but either way it39s terrific I do not think it worked very well but that had more to do with Burger King39s chronic ineptitude at advertising the offer itself was a great one Example Bob Stupak39s Vegas World quotVacation Cubquot package for 396 you get a 2 night stay free drinks 1000 in gambling money and other goodies He39s selling money at a discount and doing fabulously well with this promotion You don39t consistently run fullpage ads in the National Enquirer Playboy and airline magazines unless your promotion works Principle 16 Build value as far out of proportion to price as possible so you can sell money at a discount 31 Apples To Oranges Comparisons Why play fair One way to build perceived value is through an applestooranges comparison Example in one sales structure used for a particular series of cassette programs we market we compare their prices to the enrollment costs required to attend the seminars on which the cassettes are based This comparison makes the cassettes a terrific bargain That Order Form appears on the following pages Principle 17 Create comparisons that favor your product or service Editor39s Note I happen to believe this is one of the most powerful marketing ideas of all and it39s important to understand that the only limit in this game is your imagination The comparison need not be fair It need not compare to something the customer would ever buy There are no rules quotREALITY IS ONLY FOR THOSE WITH NO IMAGINATIONquot Sign on the wall in a friend39s office 32 COMPARATIVE SEMINAR VALUE OF YOUR MEMBERSHIP SUBSCRIPTION TO SUCCESS TRAK 1 1 PRACTICE PROMOTION 4 Tape Sessions 1Day Seminar 2 WINNING TELEPHONE TECHNIQUES 3 Tape Sessions 12Day Staff Seminar 3 CREATIVE PRACTICEBUILDING 6 Tape Sessions 112Day Seminar 4 ENTREPRENEURIAL THINKING AND SKILLS FOR THE DOCTOR 2 Tape Sessions 12Day Seminar Seminar Value 19500 9500 29500 9500 5 CREATIVE PROFESSIONAL39S IDEA MANUAL M 78000 MEMBERSHIP INCLUDES CRITIQUE CERTIFICATES39 CONSULTATION VALUE Sm 158000 Your Membership Subscription Only m AMAZING USETHENDECIDE ONE YEAR SATISFACTION GUARANTEE We are so certain of the exciting profitable results you will receive from your SuccesTrak System we guarantee your satisfaction by a full 100 refund after you39ve used the System for one full year from purchase date Use the system for 12 months then if not convinced it39s one of the very best educational investments you39ve ever made just return everything for a full refund All we ask is that you quotplay fairquot listen to each cassette at least 7 times and share it with your staff Thousands of happy SuccessTrak Members and this remarkably generous guarantee equals your insurance that this System will benefit you too personally professionally and financially YOU SAVE 123100 A Few Comments From Doctors About SuccessTrak Seminars quotThank you for your practice promotion ideas From April to August 1987 we increased our income 20000 over the same period in 1986quot Dr John Bare DC Balantrae Chiropractic Stouffville Ontario Canada quotI Listen to the tapes given every day on the drive to and from work Somehow ft is working Somehow beyond my efforts ft is happening I do though feel a change in my attitude This past week we received the most ever 5300001quot Joseph Gallegos DC Colorado quotYour tapes have been a continuing inspiration and full of so many great ideas we look forward to each new onequot Allwyn Mefherell DDS California quotThe Success Trak cassette series has been a great benefit to the develop ment of my dental practice It has helped me direct my progress forward in new and positive waysquot Donald Lipnik DDS Michigan Principle 18 Right Pricing How do you determine the price of an offer I39ve seen a myriad of formulas and I don39t think any of them work Obviously you39ve got to know and apply the economics of your business there39s not much point in losing money to make sales So you39ve got to consider all the costs of sales all the costs of goods and all the costs of fulfillment Fine I assume you know how to figure all that out in your business However one funny story a client of mine started a newsletter business She put in her time at 400000 to write each issue her secretary39s time to input it into the computer photocopying addressing a drive to the post office and some factor for her office overhead This newsletter by the way is four typed pages per issue She came up with a cost of over 30000 per subscriber per year Either she can39t do math or she39s doing it based on only a handful of subscribers Still she wanted me to advise her about the best price to advertise the publication at Now about price solely in terms of marketing First charging the lowest price you can afford to charge may not necessarily be the best strategy Somebody told me a story about a gift store in an exclusive area with a shelf full of quotartsy lookingquot ashtrays At 1995 each they sat there and gathered dust At 6995 each they sold like hotcakes One of my clients jumped the price of an already successful item from 89 to149 and he doubled its sales You have to understand both your product and your customer to determine how important the price is in the overall buying decision In many cases other considerations completely obscure price The car business is a good example of that the monthly payment is the important number In each situation there will be some levels of price resistance In the cassette program business for example it seems that either 3995 or 4995 is the first price point a place where sales drop off once you go past it However once past that point I find there is no significant difference in customer response between 50 and 9995 That means if we can39t price it at 49 we might as well charge 99 If you study our literature though you39ll notice that everything we sell isn39t priced that way Why not Because there are other variables that effect response to pricing such as audio only or audio plus print general or specialized toplc Every product or service has such quotrule of thum quot price points as well as other variables that control pricing within those resistance points You have to learn yours What about quoteven dollarsquot versus 1995 or 1999 Overall I find that a price ending in 95 works better than 99 often 89 outperforms 95 and the odd numbers almost always outperform even dollars pricing continued on next page If you finance you might never mention price at all Some of the magazine subscription promoters say quot3 Monthly Payments of Only 297 Eachquot instead of 34 stating the price Rodale Press the mailorder book marketer has recentlybeen using this technique with reportedly good results I will make this important observation the poorer the sales job the lower the price has to be If you39re severely limited in time or space or number of words or in selling capability then price gets a lot more important If you39re looking for a way to dramatize discounts consider a tiered price presentation It might go something like this In many fine department stores you39ll pay 150 to 200 In popular discount stores you may pay as little as 49 to 69 But our low preferred customer price is just 2995 Or Many dentists charge 35 to 50 for an office visit exam and cleaning Some dentists offer specials as low as 29 But during our New Patient Promotion Drive we39ll give you a complete exam cleaning and polish up your smile for 1995 Let39s try and summarize all this 1 The economics of your business will determine your lowest practical price 2 Understanding your product and your customer should give you some price parameters the lowest price they39ll believe the highest price they39ll pay 3 Experience andor testing in your field as well as general marketing knowledge will give you certain price resistance levels If you can39t stay below one it probably makes sense to push all the way up to the next one 4 How you present price is extremely important 35 Justify Any Deal That s Too Good To Be True If you39re selling something at 10 below cost or giving anything away free you need to attach a reason why before the customer can feel comfortable with the offer Admittedly it doesn39t have to be much of a reason but there does have to be a reason It could be that your idiot brother ordered 10000 widgets instead of 1000 widgets it could be tax time it could be to say thanks to VIP customers etc but there does have to be a reason And the better the deal the better the explanation needs to be Principle 19 If any part of the offer seems TGTBT Too Good To Be True it destroys the credibility of the entire offer People want to believe it but they need help Proof I believe this is the most powerful marketing strategy ever invented proof I like testimonials case histories beforeandafter pictures You can learn a lot about using proof by studying weight loss product advertising on TV and in print media There are really only two reasons why someone does not respond to your o er 1 They don39t need or want it which probably means you did a lousy iob of selecting your prospective customers in the first place 2 They don39t believe it Believability makes people respond Principle 20 Prove it Principle 21 Prove it every way you can A preponderance of proof Principle 22 Present proof in a positive manner Never sound defensive Another type of proof is the credible celebrity endorsement I39ve been involved this year with a cableTV show commercial starring Fran Tarkenton Because he39s credible he gives extra credibility to the product and the offer I think James Garner did a good job for Mazda You have to be careful not to use someone who39s not trusted or is such a prostitute that he or she will endorse and advertise anything for a buck Some businesses use local sports personalities or local radio and TV personalities to promote local businesses and that often works fine if that person is not overexposed as an endorser If you do use such a celebrity use him or her in every media not just one For example a car dealer using a local TV personality in his TV commercials should have that same celebrity signing sales letters in his directmail campaign appearing in his print ads in the newspaper etc In the program I just mentioned we not only use Fran Tarkenton on the show we use him in brochures in followup letters to customers many different ways We get maximum value out of the relationship Principle 23 A credible endorser is another form of proof 36 Liberal Guarantees I constantly wrestle with clients worried sick over their guarantee liability Listen if you can39t attach a very generous guarantee to what you sell do yourself and the world a big favor and stop selling it Go find something to sell you can be proud to sell and that people will enjoy owning so you can guarantee it properly I39ve used 90day guarantees in fields where 30day guarantees are common one year guarantees in fields where no one else guaranteed anything quotyour money back plus X for your troublequot guarantees even double your money back guarantees and almost without exception I39ve found that the stronger the guarantee the fewer the problems The exact opposite of what most chickenhearted marketers39 expect A strong guarantee is a tremendous marketing advantage Below is our quotUSETHENDECIDE GUARANTEE from SuccessTrak As you can see it39s pretty strong And as you might imagine I lean on it very heavily in selling this product Problems A return rate of less than 2 in a business where an 8 to 10 return rate is the norm and where a 30 day guarantee is the norm Principle 24 Generously guarantee Principle 25 If you can39t guarantee it don39t sell it Oh by the way the very very very very best way to stay out of trouble with all the federal and state regulatory and consumer protection agencies and to avoid lawsuits is to generously guarantee and honor your guarantees I personally know of two cases where businesses were destroyed needlessly only by their owners39 stubborn refusal to refund If your refund rate is killing you you39re selling something shoddy Otherwise you39ll have a reasonable refund rate Accept it budget for it reserve for it deal with it and stay out of the AG39s office the courtroom and the pokey 37 4 5 How quotOrdinary Businessesquot Can And Should Use Direct Mail To generate leads for salespeople For most products or services a simple typewritten two three or fourpage letter or even a simple postcard can do the job With a letter you might enclose a reply card Using the postcard you39ll have to prompt a call Done right this is much more time and money efficient than having salespeople make inperson or telephone cold calls To communicate frequently and repeatedly with present customers Postcards newsletters letters brochures statement stuffers the works Anything and everything can work when going back to satisfied customers To reinforce other media If you39re doing TV advertising you might mail stressing the quotas seen on TVquot theme and still photos from your TV commercial or program To bring people in to a store restaurant or other place of business To stimulate referrals from past and present customers If you39re not using all of these methods you39re probably doing an incomplete marketing job and your marketing program could stand some improvement If you39d like to explore all the ways that effective direct marketing including direct mail could benefit your business we39d be happy to consult with you beginning with a free initial consultation The qualifications you must meet for a free initial consultation and other information appears on the following page 38 The Envelope Or Mailing Exterior Courtesy of Gary Halbert Principle 26 The People Of America Sort Through Their Mail While Standing Over The Wastebasket Postage How should you mail Bulk Rate is cheap but a gamble less of a gamble in one local area than nationally in terms of postal mishandling If mailing Bulk use of a Bulk Rate stamp rather than an imprint can help quotdisguisequot the quotjunkquot nature of the mailing If mailing First Class a good investment more often than not be sure you let the world know Use stamps if possible rather than an imprint Print the words FIRST CLASS POSTAGE in large bold type on the envelope Principle 27 the right postage decision can have a huge impact on the success of your directmail effort Bonus Principle If you can39t afford to mail First Class I question either the economics of your business or the quality of your lists TIP if you insist on mailing Bulk affix Bulk Postal Stamps don39t meter If using a mailing house this should only cost 350 to 550 more per 1000 less than 1 cent per piece 39 If You39re Going To Mail When Should You Mail The Direct Marketing Association has kept track of directmail response by months excluding yearend holiday gift offerings and we39ve used their data in making many mailing decisions We also have our own data From this combined base we offer the following general guidelines and observations BEST MONTHS February May September quotOKquot MONTHS January August October WORST MONTHS June July It39s important to remember that you must mail far enough in advance to quothitquot when you want to hit If using Bulk Mail which we generally oppose for example the time to mail for an early February hit would be the very end of December Local mailings for a local business are much less sensitive to these cycles than nationwide mailings for a national business If mailing out of your immediate area it39s generally beneficial to push and get mail out on Friday so that it moves over the weekend this can cut an average five day delivery down to two business days If mailing locally though you probably do want your mail to hit on Monday particularly if mailing to businesses so a Friday drop is illadvised If mailing holidayconnected promotions to consumers pay attention the creeping increase in the number of days prior to a given holiday that merchandising for that holiday begins Generally the best days for mail to arrive are Tuesday Wednesday and Thursday Seasonal promotions work better with consumers than with businesspeople however holidays and seasonal times seem to be gaining in overall importance in our society Halloween for example has virtually become a big national adult holiday St Patrick39s Day once only a quotbig dealquot in the East and a few Midwest cities is now a national holiday The savvy marketer starts each year with a comprehensive list of holiday dates Principle 28 It helps to be in the right place at the right time 40 Expiration Dates If you39re going to make a special offer you39ve got to have an expiration date and make a big deal out of that date Alternative approaches either give some extra benefit for fast response or impose a penalty for tardy response One way or another you need a time element to create a sense of urgency in the customer39s mind You do not want him to feel he has the luxury to mull things over When you mail you don39t want him to think he can set your material aside and look at it quotlaterquot Later never comes Your job is to inspire immediate action In printed matter the most effective expire dates are actually rubberstamped on by hand not printed If they are printed on it39s good to simulate handstamping with stencillike typeface and a different color ink than is used anywhere else in the piece I also like having the printer lay yellow ink over the date to simulate a swipe with a yellow hiliter pen Coupons should definitely have expiration dates This is particularly important when quotcrosscouponingquot Principle 29 A special offer must expire or it isn39t special Bonus Principle Every offer should be special And I don39t care what you39re selling Guy says quotThat39s fine for products but I39m dealing in professional servicesquot Great Earlier this year I made a quotspecial offerquot of my services to ten selected organizations in the entire country From those 10 mail pieces I booked six speeches A 60 response You can make a special offer for anything And you should 41 Premiums Often Make The Sale I believe that iust about every offer should involve a quotPremiumquot a free bonus giftand whenever possible the premium should 1 have some relevance to the primary offer but not be something you would ordinarily sell and 2 should have perceived value close to equal to or even greater than the price of the primary offer Using this approach marketers will often discover that customers will be motivated to purchase as much by the premium as by the primary offer I guess I learned this first from the direct selling industry It39s quite common there for the set of encyclopedia to be sold thanks to the free vacation certificate or free portable TV the fire alarm system to be sold thanks to the free set of cookware etc I39ve adapted that idea to directmail marketing with great success Example for a client I created a series of eight booklets on eight different subjects somewhat related to his primary product With this premium added to his advertising he was able to increase his price from 89 to 149 and still double sales Premium cost under 300 Example in mailorder marketing cassette programs in the 75 to 95 price range we have frequently used a 35MM Camera with a perceived value of over 100 as the premium Example in selling our educational system to Doctors in the SuccessTrak Div of our company the package sells for 399 to 548 and the premium is a set of bymail consultation certificates with a value of over 80000 There is no doubt in my mind that many times the purchase is made to get the consultation premium How can this be adapted by any business Easily There are numerous wholesale sources to obtain premium merchandise from including those listed in my MONEYBUSINESSSUCCESS COURSE or you can make deals with suppliers in your own area Here are just a few ideas 0 a travel agency could use cameras luggage clothing store gift certificates 0 a restaurant could use movie tickets 0 an office equipment co could use a dictionary or other reference books free bonus gift is obviously a redundant phrase anything free is a gift a gift by nature must be free Still this phrase works remarkably well in advertising and only serves to point out that grammar must be thrown to the wind when crafting powerful offers and marketing materials Principle 30 what39s the Premium The Premium is at least as important as the offer and just as much time energy effort and talent should be invested in selecting or developing and presenting it as is invested in the primary product or service 42 Adding Value Until They Holler Uncle Do yourself this favor The next time your state or county fair comes around get out there go to the commercial exhibit tent and watch the guys who demonstrate and sell stuff like the Ginzu knives or the Miracle Chamois I know I know not very sophisticated Well get the monocle out of your eye and pay attention because these guys know how to pile on value until you holler quotUnclequot The people who put together the Sports Illustrated Magazine TVcommercials learned this lesson well and sell a lot of subscriptions because of it Anybody can use this if they39re smart and have the guts Let39s take the real estate business as an example IfI was advertising in that business here39s the kind of thing I39d do I39d say look we both know you can go buy a house from any real estate company and that any company can get you any house But when you buy from us here39s what we39ll do First we39ll give you a 90day warranty on the heating and cooling system and major appliances Second we39ll give you this great camera so you can take pictures of your new home to send to your friends Third the day you39re moving in we39ll send a big strong strapping college kid out there to help you unpack boxes and move furniture and do anything else you need done The kid39s yours all day at our expense Fourth you39ll probably be buying at least one or two pieces of new furniture so we39ll give you a 10 Discount Certificate from this fantastic furniture store Fifth you39re going to be tired after moving in so we39ve got a 2for1 dinner certificate for you at a nice local restaurant so you won39t have to worry about dinner Sixth just for fun here39s a coupon for two free video rentals at a nice video store right in the new neighborhood Now you39re not going to pay a cent more letting us find you a house than dealing with any other real estate company You might even pay less because we39re pretty good at our job But you will get all this great stuff free How much will all that cost the real estate company 100 for the warranty 10 for the camera 25 for the college kids zip for the coupons 43 Communicating By Direct Mail For just about any product service profession or business directmail marketing will deliver better overall results than any other media or method I know I know that hasn39t been your experience As a matter of fact most people have favorite horror stories to tell me about direct mail That39s okay as long as your past experiences don39t blind you to future opportunities You see direct mail does work if you know how to work it Just a few encouraging examples A Doctor with an average new patient acquisition cost via other advertising of 180 lowered that cost to 118 with a directmail program A company with a customer list developed via other media took a 1000000 investment in a directmail campaign and converted it to 8000000 in business approximately 4600000 profit in 30 days then basically repeated the process seven times in twelve months for over 32000000 extra profit A professional speaker used a directmail campaign to make followup offers to audience members and created a new quotprofit centerquot producing an average of 200 per person profit in a year over 5000000 in additional income A new restaurant created about 50 steady customers in 30 days with a directmail campaign costing less than 200000 The information in this next Section represents my best tips on direct mail 44 About Direct Mail This Section of this book is not and cannot be a complete treatise on the successful use of direct mail This really is a tremendously complex and I find fascinating science in and of itself A companion book of mine HOW TO WRITE MILLION DOLLAR SALES LETTERS deals with it in more detail But to give you an idea of how complicated this thing can be consider that I have more than an entire bedroom closet of reference materials on the subject none of which gather dust I consult them constantly I spend thousands of dollars each year quotkeeping up withquot this field including many subscriptions to newsletters and services that each cost more than 100 such as Dennis Hatch39s WHO39S MAILING WHAT and THE GARY HALBERT LETTER Direct mail is a lot of fun because of the ungodly number of variables involved The envelope to tease or not to tease that is the question The lift letter the Johnson Box the choices of sizes and colors and textures And on and on and on I39ve personally counted up as many as 200 decisions in a single directmail piece Direct mail is a meanspirited nasty bitch because of the ungodly number of variables involved Goof up any one of them and you may kill the response but try and test each item individually and you39ll die of old age before knowing why you went broke I have lived with direct mail my entire adult life I think I was 13 or 14 years old when I put together my first directmail piece to sell something sent out some and actually got money sent back to me in the mail I have been doing it ever since In the context of this book I39ve not attempted to teach you direct mail If that Herculean task can be done it cannot be done here I have come at it from the perspective that you may be using direct mail as part of an integrated marketing approach so I39ve simply hit the real highlights the bases most commonly missed Beyond this I would urge you to become a serious student of direct mail Oh one personal aside I used to have a cat who loved the taste of the glue used on the back of postage stamps He was a great ally in many directmail projects and I miss him sorely If you have a cat you might investigate his taste for postagestamp glue You may have an eager assistant there quietly waiting for the opportunity to make his contribution to the cause 45 A Miscellaneous Creativity List With Comments For brochures mailing campaigns instore handouts etc 31 Unusual artwork Enlarged section of a photograph A child39s drawing An illustration of a famous person A cartoon relevant to your audience PP Pi 32 Unusual containers 1 Paper bags An insurance salesperson sent me a fullsize supermarket brown bag with this note attached quotCould your employees fill bags like these to feed their families if they were disabled and could not work Let39s talk about a plan to take care of that at no net cost to YOUquot 2 Plastic bags or sealed plastic envelopes so the contents show through 3 Bottles The store where my daughter currently works Latitudes a beachwear surfer store puts its parchment gift certificates inside a plastic bottle with some sand and a few seashells sealed with a cork to simulate a bottle with a message that might wash up on the beach Does displaying this in the store sell more gift certificates I have a hunch it does 33 Remember the outer envelope 1 Bright oddcolored envelopes 2 Oddsize envelopes 3 A photograph on the outside of the envelope If you39re mailing to people you believe will be interested in a message from you then your big concern must be to be certain they immediately recognize your envelope as coming from you Recently for the company airing the THINK amp GROW RICH TVProgram with Fran Tarkenton we designed a mailing using a stillphoto from the show of Fran holding the product as the return address Why Because the company name is meaningless to most of these people but they will want the message if they know it39s coming from this same source Should your envelope have a photo of your store your product or you on it 46 34 Unusual inserts 1 Keys Auto dealers sometimes use this promotion a mailing with a key inside You bring the key to the showroom and try to start a car with it If it starts it39s your car But this need not be limited to the car business Realtors could use the key with an inoffice dollhouse retailers with a pirate39s treasure chest etc 2 Snapshots One of our most successful directmail campaigns selling a set of books used a letter and as the only enclosure a snapshot of the books instead of the typical brochure Coins Tokens Foreign currency Simulated money C3Lquot39gtm Many direct marketing experts still contend that there is no stronger attentiongetting device than money 7 Simulated Checks Often used in conjunction with window envelopes While used often and for many years these too still work well if tied to a good promotion One tip authentic check appearance is important 35 Unusual pieces Fake telegram Oversize telegram Giant handwritten memo Extra letter from your wife husband kid P9P One office furniture store created a quotclassicquot directmail campaign built around a character a mouse who wrote the letters and sent them out at night after all the humans had gone home In one series of promotions we sent letters direct from quotNapoleon The Computerquot 5 AudioTape The quotaudio brochurequot grows ever more economically practical as the costs of print escalate And in many cases it can be incredibly effective 47 36 Unusual paper stock 1 Parchment 2 Certificates 3 Check paper 4 Graph paper 5 Paper imprinted to look like fabric 6 Yellow legal pad Remember the immortal phrase 39I39m gonna make you a deal you can39t refusequot When that was hot I got a letter in the mail printed on paper that looked like pinstripe suit fabric with a half dozen bullet holes in it and that phrase scrawled at the top in what looked like blood 48 Principle 37 The Secret Of The Swipe File One of the best marketers I know has never had an original idea in his life But has he got a Swipe File A Swipe File is simply a collection of ads mail pieces components of mail pieces headlines phrases coupons etc His collection spans thirty years and contains well over 10000 items My own is smaller built over a shorter period of time but to brag better organized Given a marketing assignment he goes to his Swipe File and plods through every item in it His mission is to find good creative ideas that can be swiped from their past uses and reworked for the new project I39ll cheerfully confess truly creating an entire marketing campaign from scratch is more work than I ever want to do In my Swipe File there39s a famous very successful headline WHO ELSE WANTS A SCREEN STAR FIGURE Yes it was used quite a few years ago But in my newest ad for an audiologist you39ll see this headline WHO ELSE WANTS TO HEAR EVERYTHING THAT39S GOING ON Another similarly famous and frequently used headline begins WOULD YOU BUY I39ve seen it used for clothes rare coins bullion real estate etc For example WOULD YOU BUY A 10000000 HOME FOR 2280000 In my Catalog for my audio cassette album on marketing strategies you39ll see this headline WOULD YOU HIRE A HIGHLY PAID MARKETING CONSULTANT FOR MINIMUM WAGE In my Swipe File just added is a phony telegram that begins FINALLY YOU39RE A SWEEPSTAKES WINNER REPLY REQUIRED WITHIN 48 HOURS I wonder how I39ll use that in the future In my Swipe File is a renewal notice from Fortune Magazine It39 handscrawled on a simulated phone message slip Although they goofed up by using yellow instead of pink for the base color of the message slip the idea39s still good You39ll do yourself a tremendous favor by building up your own Swipe File As it grows organize it as best you can But in the beginning just throw it all in a big box then rummage through the box when a good idea is needed Just like the pros do 49 Copy As you know I39ve written a whole book on this subject HOW TO WRITE MILLION DOLLAR SALES LETTERS which includes a 27 Step System for that purpose However there are certain key tips to copywriting not heavily emphasized in that book which I39ve included here Every other factor in print media ie letters ads brochures postcards directmail packages etc has one chief purpose and that is to get people to read the copy Then the copy does the heavy lifting Weak wimpy copy rarely gets the job done You need to rip open a can of spinach like Popeye grab your copy by the throat and pour the whole darned can in 50 The AllImportant Headline My headline says it all there is no more important component part of any advertisinginprint than the head line If the headline doesn39t perform nothing else matters very much Keep these key ideas in mind about headlines should telegraph the promise of a positive benefit usually should emphasize the best strongest benefit can emphasize two even three benefits helped if it also stimulates curiosity must be easily understood no fancy words grammar is unimportant should stand alone is roughly equivalent to the first selling statement you39d make if making the pitch in person or on the telephone The Stand Alone Test If you placed your headline and only the instruction quotwrite for more informationquot in a classi ed ad would it draw lots of response Writing headlines is an art and science in and of itself and well worth mastering Some of the best headlines ever written appear in tabloids like THE NATIONAL ENQUIRER I strongly suggest studying the ads in the Enquirer Today a client called I had prepared tradejournal advertising copy for him He said quotI39m over here at the publication39s office reworking your ad with their people and we need to shorten the headline Any ideasquot The one idea I instantly had is not fit to repeat in print Some headlines can be one or two words For example the headline PANIC worked very well in financial newsletters for a stock advisory offer Other headlines can be quite long like THE AMAZING DIET SECRET OF HOLLYWOOD ACTRESSES THAT ACTUALLY CAUSES OVERNIGHT WEIGHT LOSS worked very well There is no right or wrong number of words for a headline Principle 38 The headline has to do certain things to work That is the only rule about headlines And if the headline doesn39t do those things punt 51 Long Copy Works Best Even after numerous statistical studies and decades of experience have proven them wrong many advertising pros insist that people will not read long copy The fact is that a twopage letter works better than a onepage letter and a threepager outpulls a twopage letter and most ads can be improved with more copy not more quotwhite spacequot It is after all the copy that sells This tells us several things Principle 39 Tell your story the very best way it can be told then start thinking about how many words you ve used and what format will work If you can possibly avoid it don39t write to fit predetermined space limits Principle 40 Don39t worry about people not reading the long copy just because it39s long If it39s boring then you39ve got a problem But if it39s exciting and interesting and matched with the customer39s interests and fun to read length is never a problem and is most often an advantage Principle 41 You can get away with smaller type than you think I make folks squint all the time and get some of the highest response rates and most pro table responses in the DMindustry Recently I designed a new ValPak Coupon for a Chiropractor client of mine The ValPak people told him too much copy His friends told him too much copy The results 40000 multiple coupon packs mailed Cost to the Doctor for his insert 130000 Number of new patients 10 Acquisition cost per patient 13000 Average value of patient 150000 That39s over a 10times ROI You tell me 52 The Order Form Coupon Or Reply Card Principle 42 I f your coupon or order form doesn 39t increase the desire to buy you 39ve done it wrong quotHerschell Gordon Lewis Here39s a good way to evaluate your Order Form response device ask yourself What If They Look At This First Well what happens Might they be sold just by what39s on the response device Will they at least be highly motivated to dig back in and read the rest of the material Or will they quickly decide quotnot for mequot or quottoo much moneyquot and set it aside Incidentally I do not think your materials should be structured so that they do see it first On a catalog project Ijust worked on the layout people wanted to put the order form on the outside back of the cover to solve a space problem No no no If at all possible we want the order form concealed in the beginning That39s like a salesman selling in person starting with the closing question Tough sledding However you cannot totally control this Some perverts read magazines from back to front These must be the same people who get up 30 minutes earlier every morning eat their Oat Bran and leave 30 minutes earlier than necessary an appointment because driving their Toyotas is so much fun Anyway the idea is to keep the Order Form out of the way but to design it so it has a fighting chance if some pervert digs out and reads it first If people would just follow directions it sure would be a lot easier to sell them stuff Sigh 53 The Psychology Of Color In Print Advertising An awful lot of the stuff we do for our companies and for our clients is in plain old blackandwhite In many cases the extra costs of colors are not recouped in extra sales When you do want to use color there are some things you might consider 43 You can always get gray by screening black no extra charge And the same thing39s true for any color you use red can also provide pink for example 44 According to a couple of real hot shots in this field of color psychology Dr Siegfried Vogele the Institute Of Direct Marketing in Germany and Dr Ned Kennan Kennan Research the eye sees the color red first The theory is this is because of a strong re ex response to fire and to blood I use this information two ways First if there39s no reason for any other accent color preference use red Second be sure you use red to emphasize what you want read first 45 I like fake yellow hiliter marks and yellow background panels But never yellow type 46 Response devices like order forms coupons and reply cards seem to pull best if printed black on yellow or pink 47 Color combinations that are hard on the eyes may initially attract attention but will cost you sales There39s a Buick ad out right now with red type reversed out of a solid black panel Whoever thought that one up should be shot 48 Almost without exception photographs should be printed black on white or in full color Photographs printed in blue red or green ink look sick 49 Sometimes a very miserly use of color can have big impact The Nuprin ads where everything is black and white but the little yellow pill itself are striking attentiongetting and clever Clever isn39t easy though and should only be attempted when you have extra time and money to fool around with Bonus If you can39t sell it profitably in black and white color won39t help enough If you do well in between adding color may help you do even better 54 Special Checklist cmsewewpe HHWWSQP PP P quot9 Factors Likely To Decrease Response To A Promotion Bulk Mail Bulk Mail that is glaringly identified as Bulk Mail Vague general claims and promises cliches quotthe greatest the bestquot Testimonials without full names cities states No testimonials at all Lack of a guarantee or warranty Technical terms Complex language Lengthy sentences Dull graphics Lack of a response device coupon card etc Likely To Increase Response First Class Mail Live Stamps vs Meter Specific precise promises Strong testimonials Strong guarantee or warranty andor free offer free trial Coupons gift certificates Simple easy to understand language Short sentences short paragraphs Exciting graphics that quotleadquot the reader through the copy Product or peopleandproduct photographs 10 Premium extra free gift 11 Celebrity endorsement Likely To The 800 WATTS LINE Works well in acquiring new customers Makes no difference in soliciting orders from established customers Can add credibility COD SHIPMENTS The massive proliferation of credit cards has made this obsolete in terms of making buying easier Only of value if you can39t convince the buyer you39re credible and will deliver FANCY STATIONERY Only of value if communicating with quothigh societyquot lawyers or doctors 55 About The Customer And Other Stuff I never cease to be amazed at the huge chasm between the extraordinary expense and effort companies invest in acquiring customers and the minimal thought they give to keeping them Some companies shouldn39t even be advertising at all Holiday Inns for example currently run commercials with the actor from 39Night Court39 in them The ads depict a hapless guest at a bargain motel discovering that there39s no gym no restaurant not even any ice Then he39s told how wonderful things39d be if he39d spent just a few bucks more and stayed at a Holiday Inn God knows what they39re spending on all this but I promise you it39s a huge waste of money Why Because most not all Holiday Inns are guilty of worse sins than the seedy competitor they39ve sadly positioned themselves against And anybody who travels much and occasionally has no option but a Holiday Inn laughs at these commercials Anybody swayed by them will only be swayed once If you advertise before you39re ready all you do is speed up the pace of the world finding out that you39re no good Customer acquisition is stupid without at least equivalent emphasis on customer retention Write that on the chalkboard 500 times Did you happen to see the Easter Parade telecast from Disneyland in Anaheim this year Regis Philbin was interviewing bystanders An amazing number came from far far away But just as many came from right there in southern California and an amazing number of those people made mention of how many times they keep coming back to Disneyland One family had been there forty times A consultantcolleague of mine is working with a major US automaker which shall remain nameless on improving customer service at the dealership level But stats show that some of their highest volume dealers have the worst customer satisfaction ratings My friend points out that this means they39re losing customers as fast as they39re getting them exchanging shortterm sales results for serious longterm damage to themselves and to the manufacturer He tells me that the top executive leaned back and said quotScrew long term results I39m dying anyway I want sales increases right nowquot And that39s why everybody39s buying Japanese cars 56 The Extended Family Concept Of Customer Relations It39s this simple most of us want something more than a Onenight stand as consumers we want a quotmeaningful relationshipquot with the folks we give our hard earned money to This accounts for example for the success of the affinity credit card business How can you use this quirk of consumer nature 1 Sell via the Membership Concept Issue a Membership Card make them Members have Memberonly events sales special offers etc 2 Communicate as an association would with its members such as with a monthly newsletter Egs Bob Stupak Vegas World Hotel amp Casino created a separate inactive corporation just so he could give away shares of stock to quotlocalsquot so he could then have a quotStockholder39s Comerquot special cash prize drawings only for stockholders free drink nights only for stockholders etc Egs perhaps the ultimate example is AARP the American Association of Retired Persons which is not a nonprofit association it is a profitmaking business selling a variety of products and services to its members Principle 50 Adopt your customer About The Customer In my senior year of high school I tended bar weekends in a openonweekendnightsonly Gay 9039s singalong joint owned by a high school teacher and optometrist whose motives had more to do with having fun and creating a tax loss than with getting rich Nevertheless this place thrived for only one reason Nobody thought of it as being the owners39 place it was the customers39 place The customers came in groups every Friday and Saturday night with 90 of the regulars never missing If they did they39d usually call to let us know why they weren39t coming If they had friends or relatives who hadn39t been there they drug them there The band the bartenders and at least half the customers were all on a first name basis The customers even brought stuff to decorate the place with As I recall we bartenders got 750 a night plus whatever we could drink The band got 20 each with the same perk The way I got to be a bartender was going behind the bar one night when they were extrabusy and helping out Then I stayed for a couple years Everybody else seemed to wind up working there pretty much the same way It was a fantastic fascinating environment It taught me one big marketing lesson just how much you can make the customer part of the business 57 After The Sale Many companies overlook opportunities for sales and profit improvements via reduced returnforrefund rates through quotpostpurchase reassurancequot If your business for example currently has say an 8 return rate which can be cut to 4 that can have a big impact on sales and on the bottomline The bottomline impact is generally greatest because it usually costs less to prevent a return with a good postpurchase reassurance system than it does to create another new sale to replace the return The simplest most basic level of postpurchase reassurance is a simple quotThank You Notequot Your own needs can determine how much more sophisticated you wish to get However I believe every purchase deserves some postpurchase reassurance Example one of the Home Study Courses we sell by mail had a 6 return rate its first two years on the market We then devised the following quotsystemquot 1 Shortly after shipment a letter was sent to the customer thanking him congratulating him and including some fresh testimonials from other satisfied Course owners 2 The customer was given an opportunity to exchange his list of the 50 best ideas he got from studying the Course for a 5000 rebate This procedure brought the return rate down from 6 to 25 Since this is a 40000 item that percentage difference represents significant dollars A version of this same process has now been put into effect for one of my clients with similar results Principle 51 In planning your sales strategy think it all the way through including what steps you can and should take to minimize refunds Devise and implement a good postpurchase reassurance system It is a pro t center And it builds goodwill 58 Repetitive Contact With Customers As we repeatedly communicate with customers we tend to quotshort cutquot our sales presentation leaving out certain facts about ourselves and our products that E believe they already know This is a huge error The most effective marketing approach is to tell our complete sales story each and every separate time we communicate with the customer Example I personally sell a number of different specialized books manuals tapes newsletters etc to one relatively small market appx 4000 people and mail to them frequently and repetitively In mailings where I39ve omitted or abbreviated the description of my qualifications and background believing they knew it and were as sick of hearing about it all as I was of writing about it sales were significantly less than in those mailings where that part of the sales story was fully reiterated Principle 52 Don39t shortcut your sales story Give it all you39ve got every time 59 Other Ways To Promote Principle 53 The Radio My friend Joe Sabah has put together a tremendous resource manual for anyone interested in getting booked on radio talk shows nationwide to promote themselves their cause book product or business This is a very inexpensive means of promotion or of market testing and most interviews can be done via phone from your own home or office For information contact Joe Sabah at Box 24147 in Denver Colorado 80224 or 3037591414 Principle 54 CrossCouponing CrossCouponing can be done internally Example a restaurant gives dinner offer coupons to its breakfast customers A clothing store gives its male customers a coupon for women39s clothing CrossCouponing can be done externally Example an enterprising J ackinTheBox restaurant franchisee has arranged for the nearby Exxon station to hand out coupons promoting the new chicken sandwich In return the J ackInTheBox is giving out oil change coupons for the Exxon 60 Yellow Pages Advertising is a bitch There39s no other advertising situation I know of where the battle is so directly combative Your ad is next to a competitive ad above another competitive ad and below still another competitive ad Most Yellow Pages advertising is lousy for three main reasons 1 Advertisers get most of their advice from Yellow Pages advertising reps so everybody39s ads wind up looking pretty much the same as their competitors39 and saying pretty much the same things as competitors39 2 Advertisers fail to answer the questions their potential customers will logically have I39ve seen restaurant ads for example that omit the days and hours open and which credit cards they accept 3 Advertisers do not tell a complete persuasive sales story as they hopefully would in other media The effectiveness of most Yellow Pages ads can be doubled merely by doubling the amount of copy in the ads Of course the Rep will tell you you can39t fit that much copy in the type39s too small there39s not enough yellow space etc etc All bullshit 55 A Yellow Pages ad is after all an ad It should have A headline Preferably that telegraphs a benefit A sales story A call to action Easy ways to respond Maybe even a premium for response Then in addition it must have the quotstandardquot stuff like name location phone hours Location is generally more important in Yellow Pages advertising than in most other types of advertising If you are advertising in more than one category in the YP you should not just run the same ad in all the categories The basic ad should be altered slightly to perfectly fit the category One easy change is the headline 61 Principle 56 The Outright No Strings Attached Free Offer Another consultant told me about a new restaurant that gave away free lunches for two weeks No not 2for1 Free No strings attached And the business has been booming ever since If Marriott Courtyards could get a list of frequent business travelers who stay at Holiday Inns 0r Ramadas they could afford to give every one of them a free night no strings attached Why Their product is so superior they39d switch just about everybody over We still do totally free seminars in our SuccessTrak Division The only way we make money is if 65 or more of the audience so clearly sees the value of our expertise that they buy our educational systems Years ago I tended bar on weekends Our place closed a couple hours earlier than several bars across the street so the quotcrewquot usually went someplace together afterwards for a few drinks then someplace else for breakfast One night the owner of one of the acrossthestreet bars dropped in quotYou guys have never been in my placequot he said quotbut if you39d like to try us I39ll buy your first two rounds of drinks any night you want to come inquot He got our business from then on Not just because of the freebie But because he had a genuinely good product a nice place with good music stiff drinks goodlooking barmaids and good bar snacks If you39ve got a truly outstanding product or service and can pinpoint legitimately qualified highly desirable customers you might try the outright nostrings attached free offer 62 Principle 57 Cold Call Selling We lazy quotHow39s businessquot I ask quotDownquot he answers quotHow many prospects have you gone out and dropped in on this weekquot quotThat39s not for mequot he answers And it doesn39t matter whether he owns a restaurant a clothing store a dental office or a hair salon Cold Call Selling still works In recent memory our office has been dropin called on by a pizza shop owner a baker and a computer salesperson All three made sales Are we that easy No if anything we39re kind of tough Overall the actual efficiency of cold calls to promote one area business to another is good my observation is that about 40 of the calls will yield business particularly if discount or special offer coupons are used This means that if Joe the local sandwich shop owner butcher baker candlestick maker printer car wash owner etc will get off his duff and go make dropin calls on the other offices and stores in his area and he drops in on 50 such places in a week he39ll get 20 new customers Hmm If that39s true and I promise you that it is why don39t more folks do it I suggest two books COLD CALL SELLING by Lee Boyan THE SUCCESS SYSTEM THAT NEVER FAILS by W Clement Stone 63 Principle 58 The Incoming Phone Call I can39t tell you how many times I39ve been told quotMy advertising isn39t workingquot checked into it and found the advertising producing plenty of calls but the callers not being converted Handling an incoming promotiongenerated call is telemarketing yet most businesses let someone do it who has no training and no experience and no skill in telemarketing Every time a prospective customerclientpatient calls you have incurred a cost If for example your Yellow Pages ad costs 100000 a month and this month it produces four calls each call cost 25000 Get smart 1 Train roleplay rehearse motivate and reward the person responsible for handling incoming calls Create scripts for repetitive types of incoming calls Continually refine and improve the scripts Insist on use of the scripts Fire anyone who refuses quotShopquot your own operation Call as a quotprospectquot Have someone else call as a quotprospectquot and record the conversation for your review Do this frequently Don39t expect what you don39t inspect 6 Monitor the conversion effectiveness In most businesses it should be at least 50 9593 Principle 59 The Outbound Phone Call This is not a treatise on telephone marketing nor am I expert in it However many businesses can use very simple telemarketing successfully The simplest easiest use is to call pastpresent customers with news of a special offer or special event 64 Principle 60 The NonThreatening First Contact Some people do not respond to some advertising because they are afraid the person they call will quothammerquot them So some marketers are introducing an intermediate step for these timid folks to take Using a recorded message and a separate phone line the marketer invites the interested prospect to call and hear a recorded message The recorded message then endeavors to sell the person on calling the regular number coming into the store etc It39s working in varying degrees One interesting thing is its ability to permit cheaper advertising For example a car dealer accustomed to running two fullpage ads in the paper might cut back to one fullpage of his typical advertising supplemented by a fourthpage that only says BEFORE YOU BUY A CAR CALL THIS RECORDED MESSAGE IF YOU DON39T YOU39LL SPEND MORE MONEY THAN YOU HAVE TO FOR YOUR NEXT CAR CALL 0000000 We39re experimenting with it in our own businesses You can39t use an ordinary answering machine by the way You need a unit that just plays the endless loop 30 60 90 or 120 second cartridge Check with your local business equipment dealers 65 The Inner Game Of Marketing We have met the enemy Pogo said and they is us In every activity including Marketing there is an Outer Game ie techniques and tactics and an Inner Game ie psychology The Inner Game of Marketing requires you to have your head screwed on straight While working on marketing projects so that you assemble the best stuff you can I apologize for the cliche but garbage in garbage out 66 Doing Your Homework One of the greatest sources of inspiration for the marketer is THE NATIONAL ENQUIRER I believe it should be read carefully every week skipping if you wish the articles about the Martians39 impregnating Vanna White etc and concentrating on the ads Why For the simple reason that the very best most proficient and highest in fact outrageously paid copywriters create the ads that appear repeatedly in this media An education in 1 themes 2 creating headlines 3 writing long sales copy and 4 creating order forms is readily available in the Enquirer Other media from which you can learn wonderful advertising lessons 1 Cosmopolitan Magazine 2 quotOpportunityquot type magazines such as OPPORTUNITY MAKING PROFITS or INCOME OPPORTUNITIES Doing Your Homework If you39re serious about being a Marketing Wizard you39ve got a lot of reading to do And good new books are being published every month that are worthy of your attention I suggest reading a book a week in this field as a good basic mental discipline Doing Your Homework Frequently buy products services from your competitors Order from them Send for their literature Call their stores and offices pretend to be a prospect and quotput39 em through their pacesquot Study what they do Think about what they don39t do Principle 61 quotSchool is NEVER out for the proquot Cavett Robert Bonus Principle Creative copycatting from successful pros39 proven campaigns and experience is preferable to inventing or innovating When you go to the bank to make a deposit they don39t give you a bonus for originality 67 Desire What does DESIRE have to do with experiencing success as a quotmarketing wizardquot Everything If you39re serious how many books on direct marketing advertising and copywriting do you own I own over 150 How many seminars have you been to Me dozens How much do you spend each month on books tapes newsletters and other means of learning more about this field Me some months 500 some months 1000 How many hours a week do you spend studying this subject Me 10 or 20 Etc Etc Etc Can you name the twenty best copywriters in the country If not why not I can Etc Etc A lot of people wish they could be better at marketing Very very few are willing to get better Even fewer are willing to get great Principle 62 quotWinning takes a lot more than just wanting to Mike Ditka 68 Principle 63 A Positive Attitude I know you39ve heard this 39positive attitude stuff39 over and over again so many times you get nauseous at the mere mention of it Still let me just tell you a couple things from my experiences First you39ve got to be able to set aside all of your own personal and business problems when the time comes to focus on putting together a successful marketing plan You see your mental attitude sneakily permeates everything you write everything you assemble in a marketing effort If you39ve got mental BO while working on a marketing project I39m telling you the project is doomed You need to be excited and enthusiastic I39ve forced it the other way more times than I care to admit to Been under immense stress and pressure and tried to do creative work while intermittently dealing with problems and interruptions The end result has seemed okay but most of the time it has opped miserably in implementation Second I think you39ve got to have the Eternal Optimist inside you to get ahead in business anyway I39ve got a client and close friend right now who is giVing up on something too soon He puts out a newsletter each month for his clientele He sells certain professional services but he also has tangible products too The newsletter goes to past and present clients some prospective clients and other business contacts There39s a section in it where he advertises his products The idea is that product sales will offset the cost of the newsletter which makes all the sense in the world but hasn39t worked After a few months he39s decided to stop advertising products in his newsletter This is a reaction akin to the cat that sat down on a hot stove He gave up sitting on hot burners real quick But because he really wasn39t bright enough to figure out the precise problem he gave up stoves altogether When he walks in the kitchen he gives the stove a pretty wide berth You see I contend that there is a way to sell products through that newsletter and if we try enough different ways we39ll make it work Some things work great right from the beginning Others don39t And I39m frequently amazed at how little determination people have to make things work 69 How Weird Is The Advertising Business When the famous rocknroll singer James Brown was dropped as a prospective commercial spokesperson by Polaroid the head of the ad agency preparing the commercials explained it this way that the decision to drop Brown had been made after Brown39s arrest for destroying his wife39s car with a machinegun quotWe had to take Brown outquot the ad exec saidquot there39s a five year moratorium in the ad business if you shoot your wife39s carquot If you have never been locked in a room for four or five days with a half dozen burnt out quotcreativesquot trying to think up a good name for a lipstick that hasn39t already been used you can39t fully understand how easy it is to go nuts and stay nuts in the advertising business By the way they39re obviously running out of names for perfume hence Liz Taylor39s fragrance being named 39Poison That has worked thanks to her identity and the weirdness of our times And at least they didn39t use it for a breakfast drink A lot of truly commercial advertising is simple straightforward lying You39ve probably seen the TV commercials for example that position the Snickers Candy Bar as health food Most of this is more the fault of manufacturers who bring unimaginative deceptively packaged products to the table in the first place like all those highinfiber foods supposedly so good for your heart which also happen to be terribly high in Sodium too Some of the blame also lies with the consumer for criminal stupidity The biggest quotgamequot in the advertising business though is to hang on to a given client as long as possible and get as much money from him as possible with advertising that cannot be accurately and quickly measured in terms of contribution to sales This is what a lot of agencies are really good at An old advertising axiom is find a dog food company owned by a guy whose wife loves French poodles and you can keep the account for a year just by putting a poodle in all the ads I find all this reprehensible which is one of the reasons I did not pursue the development of an ad agency a path I spent a couple years on It39s also the reason I prefer to concentrate on directresponse advertising and direct mail where results are quickly and accurately measurable In these cases I39m sometimes a genius and a hero other times a dolt but at least the client doesn39t waste a fortune finding out Very few 39full service agencies39 do directresponse well They don39t like it they don39t understand it and they justifiably fear it You are much better off finding a credentialed directmarketing freelancer to help you than going to an agency And even then you39d better learn the lessons in this book well so you can ask the right questions 70 Advice You39ve really got to be very very very careful who you take advice from when you39re putting together a mailing It39s okay to listen to everybody if you want to heck you never know when somebody39s going to have something of real value to contribute But you better be careful too When it comes to advertising in general and direct mail in particular everybody39s got an opinion The typesetter the layout artist the printing broker the press operator Oddly their opinions usually don39t have much to do with their specialties As an example consider this recent conference I had with a team of vendors The typesetter wanted to tell me how to write copy not talk about typestyles The layout artist wanted to talk about the color of the paper being used not graphic devices to increase readership Geez 71 What The Heck Is quotMarketingquot Anyway I39ve been running around for over ten years teaching successful marketing strategies and I39ve gradually come to the conclusion that we can help ourselves by defining it before doing it The articles of mine reprinted on the following pages attempt to do just that 72 ARTICLE REPRINT FROM PHILOSOPHY OF SUCCESS MAGAZINE JanFeb 1987 Issue Successful Marketing Strategies For Any Business By Dan Kennedy The printing company39s truck backed up to our warehouse door loaded with about a hundred cartons of brochures for one of our companies The driver got a pushcart out of the back and asked where we wanted him to take the boxes to Following our directions he wheeled the cart full of boxes through our warehouse area and into a back o ice Just pile them over there I said We have to separate them by the title of the brochures parked inside before putting them on the shelves quotI39ve already done that for you quot the driver said And these boxes are labeled with the di erent titles right here on the side to make it easier for you to access the right boxes quot He then proceeded to put the boxes in the right places on the shelves Then as he left the building he closed the warehouse door behind him And incidentally he thanked us for our business I don39t know if this surprises you or not but that39s MARKETING39 I39ll tell you this this experience was a lot different than our experiences with most vendors39 delivery people This driver was courteous This deliveryman did more than was required of him This deliveryman let us know that our business was appreciated Common courtesies you say Unfortunately these courtesies are not very common at all In fact they39re extremely rare And it39s worth noting that our society our marketplace prizes that which is rare most This particular experience with this particular deliveryman may have been accidental He may just be a naturally pleasant considerate helpful fellow Or he may have taken it upon himself for some unknown reason to develop a pleasing personality and to practice good customer relations But if this is an accident it is a great example of an accident that should be repeated on purpose as a marketing strategy What is Marketing 73 Most people expect a column in a magazine on marketing to address such subjects as advertising direct mail increasing customers purchasing stimulating referrals finding a market niche and so on And you won39t be disappointed in future issues of THE PHILOSOPHY OF SUCCESS MAGAZINE in this column I will be addressing those topics and others like them Specific methods and strategies that virtually any type of business can use to attract more customersclients and to do more business with the customersclients they have But in this 39premiere column39 I want to let you know that everything you think of as something other than marketing is actually marketing For example most businesses think of maintenance as maintenance The Disney parks think of maintenance as Marketing because the remarkable cleanliness of the parks is a major stimulant of positive wordofmouth advertising What aspects of your business aren39t thought of as marketing but should be thought of as marketing and reworked as marketing strategies QUALITY is certainly one of them Product quality Service quality IN SEARCH OF EXCELLENCEquot author Tom Peters jokes about the retail executive who became aggravated at Peters39 criticism of his industry in a seminar and cried out quotWe are no worse than anybody elsequot Peters had a graphic artist design a company logo with the slogan in it we are no worse than anybody else Quality must be developed as a marketing strategy because no other marketing strategies can build and sustain a business without it Another aspect of business often overlooked as a marketing strategy is courtesy Courtesy can be expressed many different ways Like the deliveryman taking time to sort the boxes Or the Horschow mailorder company sending each item ordered during the holiday season in a beautiful Christmasgreen giftbox with a gold elastic ribbon and a gift card all at no extra cost Or the Figi39s Company a mailorder marketer of gourmet foods and gifts sending a personalized letter acknowledging receipt of an order and reassuring the customer that it will be shipped on time Or the Doctor who calls his patient at home the evening after treatment just to quotcheck on himquot Or even with a simple quot39thank youquot It39s an important marketing principle people want most what they have the least of Today somewhat sadly the things most people get the least of are recognition and appreciation Gratitude As A Marketing Strategy Several years ago I took over a business with mammoth collection problems almost all of its customers had openaccounts and paid their bills ten to sixty days late except those who didn39t pay at all We quickly instituted a number of corrective measures including tighter credit controls and policies interest charges a sequence of pastdue notices and collection calls However we also 74 implemented a positive strategy We started sending handsigned thankyou notes for prompt payment to anybody who did pay on time those who were almost on time and even late payers who responded to a pastdue notice Guess what happened Those customers who received the thankyou notes became better paying customers I know a Doctor who started a procedure of giving fresh longstemmed red roses to his womenpatients who showed up for their appointments on time or paid their bills on time or referred another patient quotFunny thingsquot he told me We no longer have patients missing appointments Our collections have improved Referrals are up And some guys are starting to ask how they can get roses tooquot Here are a few specific ideas you might adopt as ways of saying thank you 0 Keep customers39 birthdays on file and send cards and or small gifts 0 Send Thanksgiving cards or letters 0 Make it a habit to drop a personal thankyou note in the mail each day to at least one customer 0 Send a gift certificate or discount certificate to a customer who makes an unusually large purchase 0 Host a Customer Appreciation Eventquot a Christmas party a backyard barbque 0 Have an occasional closedtothe public preferred customer sale 0 Drop in personally on your best customers with a surprise gift I figured it up just the other day in 1986 personally and for my various businesses combined I signed checks for well over one million dollars in payment for goods and services to all sorts of people and companies And don39t care what anybody says a million bucks is a lot of money Yet I can count on the fingers of one hand the number of the recipients of all that money who39ve expressed any gratitude in any formal kind of way Only one of them found out about and recognized my birthday Just saying quotthanksquot is a big step ahead of the competition today DAN KENNEDY is a Contributing Editor of ThePhilolophy 0f Success Magazine author andcreditor of a number of books cassettes newsletters and other publications successful entrepreneur and executive with ownership interest in eight diverse businesses and a popular speaker and seminar leader Mr Kennedy can be reached clo Kennedy amp Associates Konsulting 5313 N 7th Street Suite 5149 PhoenixArizona 85014 6029977707 75 ARTICLE REPRINT FROM PHILOSOPHY OF SUCCESS MAGAZINE MarchApril 1987 Issue Successful Marketing Strategies For Any Business By Dan Kennedy Genius is sometimes defined as the ability to make the complex simple Certainly quotmarketingquot is a complex subject so complex it39s very difficult for many business people to ever get a handle on it Its complexity is intimidating After years in quotmarketingquot I39ve finally found a definition of marketing that re ects the genius of simplicity MARKETING is simply making the right presentation of the right message to the right people With that simple definition as a guide just about every businessperson can clearly see his past errors and do a more effective job of marketing in the future Let39s talk about the right people first Many salespeople and business owners have dramatically unsuccessful experiences with direct mail and with telemarketing for this simple reason they39re mailing to or calling the wrong people Who are the right people Prospects who most closely match the demographics of your good established customers andor your desirable customers quotDemographicsquot refers to statistical lifestyle and preference information about people The best way to explain it is through example Let39s say you39ve got a restaurant a small retail store of some kind or a service business maybe a hairstyling salon Your business is doing well but could do much better A good first step in seeking new customers would be to find out as much as possible about your existent customers in search of demographics that might help you in the pursuit of new customers For example you might discover that the majority of your customers live within a xmile radius of your place of business Or you might discover that the majority of your customers drive latemodel compact cars have MasterCards and VISA Cards subscribe to a certain magazine are between the ages of 25 and 40 are married Armed with this information you can obtain a mailing list or compile a mailing list of prospects who closely match the characteristics shared by the majority of your customers You might for example get a mailing list of all the subscribers to FAMILY CIRCLE MAGAZINE who are between the ages of 25 and 40 and who live within a 50mile radius of your business Is such a list available You bet You might get another list of MasterCard and VISA Cardholders who are married and live within a 50mile radius of your business This is generally called LIST SELECTION and many directmarketing experts believe it to be the single most important factor in success or failure with a direct marketing campaign I happen to agree and firmly believe that money spent in obtaining the best possible list is 76 more than recovered via savings on printing quantities in direct mail and via improved response If you are unfamiliar with the availability of mailing lists and with list selection you should begin your education with a visit to the main public library in your area to study a huge directory Standard Rate And Data Service SRDS This directory provides detailed information on tens of thousands of available mailing lists and list suppliers In your local Yellow Pages you39ll also find list brokers under the category quotMailing Listsquot You should meet with several of these people before choosing to do business with one of them You may also want to deal with national list brokers There are a number of longestablished reputable list brokers and many of them publish catalogs of the lists they own andor represent If you39d like a free list of the brokers I personally recommend just drop a note to Postal Marketing Institute 5515 N 7th Street 5149 Phoenix Arizona 85014 and ask for the LIST OF MAILING LISTS You can also compile your own list for many purposes from local telephone directories a quotCrissCross Directory that lists people by geographic area or membership directories of certain clubs or organizations And still another list compilation method suitable for small businesses is through inexpensive classified advertising I know an attorney for example who has this ad running continually in the quotbusiness opportunity sectionquot of his local newspaper quotBefore you buy a business obtain free consultation on legal issues you need to consider Also specialized assistance for the small businessperson with contracts incorporations partnerships buysell agreements etc Call for FREE BOOKLET THE SMALL BUSINESSMAN39S LEGAL QUESTION AND ANSWER GUIDEquot He gets at least a dozen calls every week requesting his free booklet These people are placed on his mailing list and receive letters and other information from his office periodically over a period of time Eventually over half of them come in for initial consultations and again more than half of these become clients There are many different businesses that could adapt this idea to their needs So our first three steps to success in direct marketing is targeting the right people to receive the message In the next issue of PHILOSOPHY OF SUCCESS MAGAZINE we 3911 tackle the second step developing the right message I also want to encourage you to use your own customer list as a mailing list more often and more effectively Most business people quotmiss the boatquot by failing to maintain frequent contact with their customers For one thing it39s important to remember that someone who has purchased from you once and been satisfied is then predisposed to purchase from you again Second you do have competition to be concerned about so there is a need to stay on the top of your customer39s consciousness after all out of sight out of mind Third frequently communicating with customers is an appreciated form of quotextra mile service Here are a few ideas for communications with customers 77 FOR ALMOST ANY BUSINESS 0 A NewsAndIdea Letter 0 Seasonal Greetings 0 Thank You Letters FOR RETAILERS 0 Preferred Customer Sale Flyers 0 Letters introducing new products product lines FOR SERVICE BUSINESSES AND PROFESSIONALS 0 Reminder Notices of serVice date time for a dental checkup time for an oil change etc 0 Informative booklets or reports It39s been my experience that most businesses39 repeat sales can be doubled simply by making additional more frequent contact and offers to established customers 78 ARTICLE REPRINT FROM PHILOSOPHY OF SUCCESS MAGAZINE MayJune 1987 Issue Successful Marketing Strategies For Any Business By Dan Kennedy In our last article we defined MARKETING as quotmaking the right presentation of the right message to the right people quot Then we discussed how to determine who the right people are to contact for your particular business This month let39s tackle the right message The right message will include everything that a customer or client of your type of business or user of your type of goods or services traditionally expects plus an added Unique Selling Proposition The customer or client already expects certain things from your business If you operate a car dealership for example he expects you to have a showroom an inventory of automobiles salespeople competitive prices financing and a service department If you operate a restaurant the customer expects you to have a clean pleasant facility menus daily specials waiters and waitresses good food If you39re an insurance agent your client expects you to offer a full range of insurance plans and policies competitive rates personalized service prompt handling of claims and knowledgeable advice Whatever your business there are certain things that your prospective customer or client expects of you Your message has to affirm the existence of these expected things It is a mistake to take anything for granted to assume that the prospect will assume that you have them Instead quotyou should put forth your complete sales message every time you deliver any message at allquot You cannot predict what information may be of prime importance to a given prospect at a given time so you must present all the relevant information all the time Here39s one example I travel quite a bit and often conduct evening seminars that end around 1000 PM I39m interested in finding a restaurant that serves dinner late in the evening and accepts American Express those are the two pieces of information of prime interest to me Eight out of ten times one or both of these pieces of information is omitted from restaurants39 Yellow Pages advertising Of course someone else may have a bias for familyowned and operated restaurants A true Italian food lover wants to know if the pasta is homemade The restaurant39s message then needs to cover all of these bases and many more In other words the right message is a complete message The more you tell the more you sell So the first step in creating a compelling sales message is to develop a comprehensive quotmaster listquot of every fact feature and benefit of your 79 product service or business you can think of Don39t be judgmental List every thing you can possibly think of Here are some examples of marketers who have erred by omission A supermarket has quotbag boysquot take every customers groceries to the car and place them in the trunk but never mentions this in its advertising A manufacturer I recently consulted with guarantees ontime shipment or the order is free but this policy appears only in fine print on the contracts A restaurant has a relish tray and dessert included with all its meals but never tells anybody until they get there A car wash quotArmorAllsquot the tires dashboards door panels and vinyl tops of all the Cars as a matter of routine but never mentions this in its advertising In each of these cases I asked the owners of these businesses quotWhy don39t you talk about this in your marketingquot The answers I got were 0 quotGee we never thought about itquot 0 quotThee customer expects it anywayquot 0 quotIt39s no big dealquot 0 quotMy competitor does it tooquot Here are my answers 0 You have to think about it Leave no stone unturned in developing a complete marketing message 0 How do you know what the customer expects And even if he does expect it shouldn39t you let him know that he39s right 0 You can39t possibly judge what is and isn39t a quotbig deal to your customers You think differently than they do 0 Your competitor isn39t telling anybody either So Step One develop a complete marketing message Step Two tailor the message to your market You39ve selected certain prospective customers or clients based on demographics That means that you know quite a bit about those people That means you can organize your message to place the greatest emphasis on the things most likely to be of the greatest interest to those people Let39s use the restaurant as an example If you mail to people who are Diners Club members then the fact that your restaurant accepts Diners Club is a very important part of your message It deserves priority You might even use it as the opening gambit in your mailing ie quotDear Diners Club Member There39s a new dining experience waiting for you tonightquot On the other hand if you39re mailing to young marrieds who live in quotstarter homes near your restaurant your acceptance of Diners Club is a much less important item It still belongs in your complete marketing message some of the prospects my have a Diners Club card But there are other parts of your message much more deserving of emphasis to these prospects 80 Step Three add a quotUnique Selling Propositionquot This is the final factor that differentiates your business product or service and marketing message from every other similar competitor It is the answer to this challenging question quotWhy should I call youcome to youbuy from you instead of anyone else in your business anywhere I39ll admit this IS one tough question But if you can39t come up with a good answer for it I39d suggest thinking about getting into a different business Here are a few ideastarter examples of Unique Selling Propositions 0 Lucky Supermarkets claims to have quotlowest prices overallquot and documents the claim by comparing register tapes for assortments of groceries 0 Federal Express promises deliver by 1030 AM next day or no charge 0 AmericaWest Airlines advertises quotLess Fare More Carequot They then compete with the budget pricing of discount airlines but provide free drinks copies of The Wall Street Journal and other amenities 0 Dominos Pizza delivers in 30 minutes or the pizza39s free Pizza Hut used the same basic promise with their lunch pizzas 0 A dentist promises quotafter your first visit your child will not argue cry or otherwise give you a hard time about coming to the dentistquot 0 A furniture chain advertises its quotno money miraclequot no payments for six months after purchase When you have a good strong Unique Selling Proposition the development of a compelling marketing message and the use of that message in advertising direct mail and other forms of promotion becomes easy Without a Unique Selling Proposition marketing is difficult There is one warning warranted about your marketing message don39t promise what you cannot or will not deliver Businesses that lack this integrity almost inevitably fail It may take a while but they fail Each dissatisfied customer can do irreparable huge damage to your business Some research I39ve seen indicates that the average satisfied customer tells 3 people about his experience while the average dissatisfied customer gripes to 11 other people That ratio obviously can destroy a business How do dissatisfied customers develop The 1 Cause of dissatisfied customers is a significant breach between the promise of the marketing message and the reality of product andor service Then the 2 Cause is an apparent lack of concern on the business39 part when a complaint is registered about this breach As some of you who follow my writings and recordings are well aware I had a major altercation with the previously mentioned AmericaWest Airlines over a damaged piece of luggage I reported on this in copious detail in an issue of the quotLessons From America39s Worst Run Companies Cassette Seriesquot published by 81 General Cassette Corporation This incident and lack of responsible reaction to it by AmericaWest39s people was all the more irritating of course because of its juxtaposition to the more carequot selling proposition To be fair I want to now acknowledge that a copy of the Cassette and my correspondence finally reached Mr Edward Beauvais the CEO of AmericaWest Airlines and he demonstrated that he was in fact very concerned with passenger service and satisfaction He took responsible remedial action including replacing my damaged Hartman with a brand new one at the airline39s expense As it should be The unfortunate fact remains that at least up until now his willingness to accept responsibility for his company39s errors his desire to preserve passenger goodwill his integrity even his good common sense has not filtered down through the ranks of his organization The incident with me only cost his airline a few thousand dollars in lost revenue during the dispute and the price of a suitcase However the longterm failure to match the reality of service with the advertised promises could cost the airlines millions of dollars if not its very life If there are desirable benefits from selling quotmore carequot then everyone must accept the responsibility of delivering quotmore carequot because the customers who buy the quotmore care propositionquot then expect more than they otherwise would have No marketing message is strong enough to overcome a disappointing reality over an extended period of time For that reason I urge you to view quotcustomer relationsquot as positive productive profitable marketing not as so many businesses do as a costly necessary evil or worse as a quotbuzzwordquot to be tossed about lightly I highly recommend the following helpful materials Frank Cooper39s book titled THE CUSTOMER SIGNS YOUR PAYCHECK and Jerry Wilson39s audio cassette HOW TO BUILD CUSTOMER LOYALTY AND WATCH SALES SOAR In the next Issue of PHILOSOPHY OF SUCCESS MAGAZINE we39ll complete the successful marketing equation with the keys to the right presentation 82 ARTICLE REPRINT FROM PHILOSOPHY OF SUCCESS MAGAZINE JulyAugust 1987 Issue Successful Marketing Strategies For Any Business By Dan Kennedy In the two previous Columns in the two previous issues of Philosophy Of Success Magazine we defined MARKETING as quotmaking the right presentation of the right message to the right people We39ve already discussed how to find the right people and how to create the right message now we need the right presentation to completes the marketing formula The marketing media used to deliver the presentation can differ dramatically It might be a sales letter a directmail package a newspaper or magazine ad a TV commercial a telephone call an inperson sales call a group presentation seminar a brochure a catalog etc But regardless of which media you use to deliver a presentation there are certain keys to making it as effective as possible THE FIRST KEY is that the presentation has to be well organized People have to be led through the presentation in a prepared thoughtout stepbystep manner You39ll have to decide for example whether or not you first have to establish the need before even beginning to sell your product or service A company selling dog food doesn39t have to do this if they are talking to dog owners the right people about a superior quality vitaminfortified discountpriced dog food the right message they can leap right into presenting that dog food On the other hand a company selling an alarm device that goes off when someone such as a child goes in your backyard swimming pool may be talking to swimming pool owners the right people with a persuasive argument about this great device offered with free installation and 12month nointerest financing the right message but might have to start by discussing statistics concerning accidental drownings in swimming pools risks of lawsuits etc before even selling their device You have to think through a stepbystep order for your presentation THE SECOND KEY is that the presentation has to be understandable One of the most common errors made in marketing is overestimating the intelligence and sophistication of the customer client or prospect A brilliantly planned and delivered presentation full of jargon and buzzwords unique to your business vocabulary unfamiliar to your prospects difficult concepts complex math or long complex sentences like this one will not get desirable results The confused person does not buy The frightened person does not buy in most cases the intimidated person does not buy The marketer has to relate to his customers at their actual level of thinking not the level he thinks they think at 83 Most of us have illusions dangerous illusions about the sophistication of our clientele It39s actually attering to me to believe that my clientele is smarter than average isn39t it In this case that kind of self attery can be fatal To create the right presentation you really have to get a feel for your prospects and customers Go drive around in their neighborhoods eat where they eat shop where they shop read what they read and so on To use IN SEARCH OF EXCELLENCE terminology get close to the customer Here39s a great lesson about putting together the right presentation in retailing by being close to the customer At Stew Leonard39s supersupermarket they were bringing in fresh fish everyday carefully packaging it and putting it in the freezer cases labeled as quotfresh fishquot They had the right message people who like fish really like fresh fish they had the right people many of their customers are upscale consumers who have the money to buy fresh fish the time and inclination to prepare a meal with it and an appreciation of it but for many of their customers they had the wrong presentation One of their customers told them that she wished they had real fresh fish like at the fish markets laying there on a slab of ice Stew Leonard and his people divided the fresh fish that came in each day in half and presented the same fish two different ways one as they had been packaged two unpackaged on a slab of ice in a little food display unit labeled 39Fish Market39 Guess what Their sales of fresh fish more than doubled THE THIRD KEY is that the presentation has to be interesting even exciting and dramatic Whatever you do in marketing don39t be boring Your presentation has to make it fun for your customer to buy It has to make it impossible for him to ignore it It has to so captivate his curiosity and interest that he can39t turn away from it until he39s read or heard every word I just saw a new TVcommercial for a highfiber cereal that is really dramatic The man is sitting reading a newspaper I think the WALL STREET JOURNAL He lays it down on the table folded to an article looks at his wife and in a very serious voice quietly says We39ve been killing ourselvesquot Now are you going to turn away from that Don39t you have to wait and see what these ordinary looking people have been doing to themselves My God maybe we39ve been doing the same horrible thing to ourselves THE FOURTH KEY is that your presentation has to demand action I don39t care if you are selling in person in print or on television you cannot afford to be subtle You39ve got to tell the person exactly what you expect him to do how to do it and when to do it Too much marketing is wimpy It stops short of demanding any action Here39s our beautiful new car but never now come on down to the showroom plop your rearend in its driver39s seat and test drive the darned thing this Saturday from 9 to 4 and get a free case of Pepsi Here39s our wonderful new product but never now go to your phone dial our tollfree number and get a free sample sent to you along with 5 in coupons When you combine these four keys to Presentation with the other marketing ideas already covered you39ll have a marketing formula that gets great results every time In the next column I39ll introduce you to several of the greatest directmarketing campaigns ever used and how you can apply the ideas to your business Mr Kennedy is a Contributing Editor of Philosophy Of Success Magazine and an internationally respected marketing expert He is a Member of the Direct Marketing Association and consults with many different types of businesses on marketing strategies He is also the Author of two Cassette Learning Programs SUCCESSFUL MARKETING STRATEGIES FOR ANY BUSINESS and SUCCESSFUL DIRECT MARKETING STRATEGIES FOR ANY BUSINESS published by General Cassette Corporation 84 ARTICLE REPRINT FROM PHILOSOPHY OF SUCCESS MAGAZINE NovDec 1987 Issue Successful Marketing Strategies For Any Business By Dan Kennedy In previous issues of this column we39ve defined quotmarketingquot as quotmaking the right presentation of the right message to the right peoplequot In the Cassette Program I recently completed SUCCESSFUL DIRECT MARKETING STRATEGIES FOR ANY BUSINESS I used an advertisement for a restaurant in the Lady Luck Casino as a perfect example of this definition in action Now this same entity the Lady Luck Casino has done it again and deservedly won the 1987 Silver Echo Award for NewspaperMagazine Traffic Building Examining their awardwinning and successful trafficbuilding strategy provides a great object lesson for anyone with a retail store hotel restaurant beauty salon or any other business where attracting new customers is important The Lady Luck is not located on the famous Las Vegas Strip and it had an ad budget of only 3700000 Somehow it needed to use this comparatively small mound of ammunition to compete with the giant hotels39 colorful glamorous neon advertising Most of the Lady39s competitors run beautiful fullcolor fullpage newspaper and magazine ads featuring glamorous chorus girls famous celebrities and striking photographic montages With only 3700000 to spend for the year matching that approach was out First the Lady39s marketers carefully researched which airlines y the most tourists to Las Vegas This was an exercise in finding the most costeffective media possible for reaching quotthe right peoplequot Second a halfpage horizontal ad was created that was the dramatic opposite of other casinos39 advertising it had no photos no girls no color only 460 words of copy and the headline quotWIN OR YOUR MONEY BACKquot This editorial approach was the right presentationquot guaranteed winning represented quotthe right messagequot The actual message is centered around each customer39s opportunity to take a quotpullquot on a special slot machine and either win a big prize or get his money back Did this work You bet Every objective set was beat in five months the projected response was exceeded by 174 an additional 5192 airline magazine readers requested the coupon book advertised cost per response was reduced by 82 compared to previous more conventional advertising and 53547500 in directly measurable revenue was generated For every dollar invested 1432 was returned There are a number of lessons to be learned from all this Here are a few 1 Direct marketing is often the best method of presentation even for businesses that do not customarily use direct marketing Every business owner can benefit from learning about direct marketing If you39d like a complete list of 85 suggested books tapes magazines and newsletters for the serious student of direct marketing just drop me a note in care of this Magazine 2 Contrarian marketing often outperforms copycat marketing If everybody in a given business seems to be using a particular method of attracting customers there are two reasonably certain conclusions that can be arrived at as a result First that the method is working at least for those who started it who have now been copied by so many others that it39s an obvious trend Second it is being worn out rapidly and its effectiveness will diminish in the future When you come in as a copycat marketer chasing an already developed trend you are more likely to lose than to profit Often you can create the next new trend by doing the opposite of what your competitors are doing 3 Success in marketing begins with the step most are too lazy to do quality research The cost of good research is an investment that almost always pays big dividends down the road 4 As advertising wizard David Ogilvy observed quotThe heart of a great advertise ment is a great big promise In the Lady Luck39s case quotwin or your money backquot is a big promise Unlike any competitors39 promises Radical for the industry Look carefully at your marketing efforts and see whether they feature big exciting provocative promises or small ordinary promises or even no promises at all Learning and living by these lessons alone can make a big positive difference in the success of your marketing efforts As we approach the end of one year and the beginning of another it seems appropriate to call your attention to another fundamental marketing idea even though it is out of sequence with our IssuebyIssue progression through a course in marketing The idea is clarity of purpose This is the time of year when we typically take time to re ect on the accomplishments disappointments and events of the past eleven months arid then to look ahead and contemplate forecast and make resolutions for the twelve months ahead As you go through this exercise I urge you to evaluate the relative fogginess and clarity of your marketing objectives and plans from last year and to work for greater clarity for the objectives and plans of your new year One of the unique things I think about my approach to teaching marketing to doing marketing consulting and to implementing marketing campaigns is that I base it all on proven success philosophy For example I find that the principles enumerated in Napoleon Hill39s classic THINK AND GROW RICH examined indepth in Foster Hibbard39s teachings and presented in modern practical form in the new book Foster and I coauthored Secrets To Guaranteed Goal Achievement are as relevant to marketing as they are to more general personal and professional success One of those principles is of course quotDefiniteness Of Purposequot It is a great watchword for marketing decisions and investments MR KENNEDY IS A CONTRIBUTING EDITOR TO THIS MAGAZINE FREQUENT CONTRIBUTOR TO OTHER PUBLICATIONS AUSTOR OF SEVERAL BOOKS AND PROFESSIONAL SPEAKER BOTH ASSOCIATIONS AND CORPORATIONS CAN BENEFIT FROM HAVING HIS quotSUCCESSFUL MARKETING STRATEGIES SEMINAR IN 3HOUR OR 6HOUR FORMAT FOR INFORMATION CONTACT MR KENNEDY IN CARE OF THIS MAGAZINE 86 Our Consulting Principles We only accept clients we strongly believe we can help If a client39s needs are beyond the scope of our expertise we39ll say so If possible we39ll refer such a client to an appropriate professional We work not just at fulfilling the need the client brings to us but also at discovering or creating other opportunities for that client to profit Whenever possible we prefer to charge a relatively low retainer or base fee and derive the bulk of our compensation from participation in the success of the project There are never any hidden costs or charges Kimble amp Kennedy Publishing A Division of Group M Marketing Inc 9433 Bee Cave Road Bldg2 Suite 110 Austin TX 78733 Tel 512 2635151 Fax 512 2639898 wwwkimb1e kennedycom 87 88
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