Rus Articles Journal

The reasons for which the companies lose money.

Approximately a year ago I conducted a peculiar research: the most popular words of search on the Internet connected with business development. The picture turned out following:
the Word “Advertising“ in a month used 612. 835, marketing - 201. 951 persons. For comparison: strategic management - 10. 804, management of sales - 2. 392, competitiveness - 1. 211 people, the analysis of consumers - 216, the analysis of competitors - 874 persons, the competitive analysis - 636.

In general, one may say, that those who thought of the analysis of the competition, and, therefore, of how to be allocated on the general background 600 times smaller, than those who consider as the main development tool of the business advertizing.

Well and absolutely ridiculously other comparison looks: 201. 000 people interested in information on marketing and 216 (!) the consumers who are interested in the analysis and 874 - the analysis of competitors that, as a matter of fact is a marketing basis. It is obvious that marketing is understood as something between advertizing and sale.

A conclusion arises by itself: advertizing also developments of business in Russia are fixed assets of sale of goods. Lack of the serious competition and the big size of sales markets meanwhile allow the companies to make the development plans, relying on advertizing. In a condition of crisis many try using the same advertisements which used in “corpulent years“. That is, the companies continue to do the same, expecting at the same time absolutely new result.
At the same time, the competition constantly amplifies, it is objective regularity, attempts of the majority of the companies to strengthen the business due to the strengthened advertizing will lead to rise in price of advertizing and reduction of the size of announcements and, therefore, increases in number of announcements on advertizing spaces of newspapers and magazines. Each separate announcement will become less noticeable on the general background. Return from the advertisement will be less and less.

Of course, without advertizing and marketing today it is hardly possible to develop business. However, I will not be afraid to tell that today advertizing left quite far from the sources. The small companies assimilate to big and do advertizing for creation of the image instead of creating advertizing which sells. Probably, it is necessary to remember the essence of advertizing again and to change the approach, respectively.

For a start remember what is advertizing and when it appeared? Advertizing replaced the seller offering goods face to face to one buyer. Advertizing is the same seller offering your goods not to one, but to a great number of buyers, and the text of advertizing - replacement of its oral presentation.

You take the word to the seller who just speaks to you: “Buy from me, I - the best!“, without explaining why he so considers? Most likely it will raise at you suspicion and doubts in sincerity. Similar reaction is caused by the advertisement with a similar advertizing message. You like the seller who pours unclear for you slangy words, suggesting to buy goods? I think, no. And now look how many advertisements on sale of computers are made thus.
Starting writing of the text, always ask a question: “I could use these words and the argument, at a personal selling of the goods? “ Same
concerns also marketing, I adhere to definition which Jay Abraham gave: “Marketing is the actions of the company directed to education of potential clients in how they can solve the problems with the help of our goods“. Advertizing has to be directed to it: To EXPLAIN how the consumer will be able to solve the PROBLEMS with the help of your goods.

1. The main function of advertizing - either to sell goods, or to collect information on potential consumers.

2. It is necessary to remember distinction in perception of advertizing and the real seller. To ignore the person quite difficult, and him, maybe, it is necessary to listen, even out of politeness. On the contrary, it is very easy to ignore advertizing. Therefore advertisement heading - the main. He acts as a peculiar filter, drawing attention of consumers NECESSARY to you and forcing to pass by those to whom your goods are not of any interest. Be not afraid to spend time for writing and testing of various headings for your announcement. It will pay off.

3. Do not practise in wit, creating the advertizing text. Sale is very seldom made as a result of the joke told by the seller or a nifty.

4. Advertizing always has to answer a question of the consumer: “And me - that from that?“ The text of advertizing has to describe the benefits received by the client as a result of purchase. One of popular beliefs is that the seller considers that he knows needs of the buyer and proposes marriage, proceeding from the understanding. Everything can be much more difficult. Do not hope for yourself and on “perhaps“, check the hypotheses and study the valid needs of your buyers. And then propose the solution in advertizing of your goods.

5. Respect intelligence of the client, be not banal. Forget about “ headings the best goods“ and “The lowest prices“. Be specific. I will give an interesting, in my opinion, example. As if you chose a wine glass? Probably, as well as I earlier, on appearance. It is pleasant to drink good wine from a beautiful glass. But recently, presented me a set of glasses with the description which made impression on me. In advertizing of these glasses it was told that they have the specific form which allows to get to wine on the first third of language, especially chuvstvitelnay to flavoring feelings. Thus, it was told further, our glasses it is better, than others, will allow you to enjoy and feel the flavoring bouquet which is contained in wine. And that is interesting, now, when I drink from these glasses, my attention involuntarily concentrates on the first third of my language that forces more sharply I feel wine tastes. Magnificent marketing mix!

6. One more conclusion which can be made of an example with glasses: establish the rules of the game in the market. Describe what has to be goods which most fully satisfy need of the client. If your competitors did not make it yet, then, trying to repeat your course, they will already look not so advantageously.

7. If you use an illustration in your advertizing, remember that she has to sell too. We very often see advertizing with the photo of the attractive half-naked girl, and the content of advertizing is not connected with the sexy beauty in any way. The girl is remembered, and advertizing is not. And it is impossible to call the desire arising at the same time desire to immediately acquire goods of the company.

8. Advertizing should be tested. Simple change of heading can increase sales of goods for 20 - 30% and above. Before being put in it on full, try several advertisements in the press with small circulations.

The interesting idea was introduced in the book The Ultimate Sales Machine of Chet Holmes. He offers “model of stadium“ when developing the advertisement. The essence of this model is as follows:

Holmes claims that 3% of potential clients buy your goods right now. This percent is also the trade engine as a result of advertizing. About 7% of the population are ready to discuss idea of purchase. These are buyers who are dissatisfied with the acquired goods or the supplier and which not against something to change, though do not buy right now. The remained 90% are divided into three equal categories: the first 1/3 - “does not think of such purchase“, they and not pro, but also not contra such purchase, they just did not think of it. Following 1/3 - represent the category “I think that to me these goods are uninteresting“. This not so neutral category as first third. And at last, the last 1/3 - category which knows that it “is definitely uninterested in purchase“.

Now present stadium which visitors were told: “You come on stadium, but you are not obliged to remain there. If the person who arranges show there, tells things, uninteresting for you, you can just leave“.

Now about you. If you come to a tribune and will tell: “We sell office equipment, best in the world!“, 90% of listeners will rise and will leave stadium. It not that it is necessary for you. Your purpose - to draw attention as it is possible the bigger number of people. And in it the stadium and your performance are similar to advertizing in the newspaper. You do not know personally each of a huge number of the people reading the newspaper. But, if you do not draw their attention with heading (the beginning of performance), then they just will not notice your announcement (will leave stadium).

We will think of the beginning of performance before the people at stadium again. If you begin the performance so: “Five ways which our office equipment can serve better than others“, again you will draw attention of 3% of clients, ready to purchase, and, perhaps, 7% of those who are ready to think of such purchase. 90% will get up again and will leave stadium.

And again, the objective is not carried out. And if to address audience so: “Five reasons for which you lose money at service of your business“? Though such heading “will also “not paste“ the head to his chair, but it also will not leave, intrigued with such heading. Practically all audience at stadium is interested in economy of money. To find such phrase which can appelirovat to the greatest number of your potential clients - in it and the advertizing heading essence consists.

In the conclusion I will dare to quote Holmes: “The most difficult of what we need to make today is capture of attention of potential clients and deduction of it attention during the time sufficient to sell them our product. Approach which are assumed by some valuable training in our clients gives us an essential opportunity to attract more buyers and to create the atmosphere of trust. I call it “marketing on the basis of training“ and here that you have to write down: you will attract much more buyers if suggest to teach them to something valuable, than just trying to sell them your goods or service“.