Marketing Survival Newsletter - Before You Spend
"I've spent my marketing budget with no results - can you help?"
I just finished a phone conversation with a software developer that started with the statement. "I've spent my marketing budget with no results - can you help?" It's not the first time I've heard these words, and probably not the last. Over the past 16 years I have probably received a call a month that contains the same lament. It really should not be surprising, it's human-nature for us to believe that we can do anything, especially if it looks easy. After all, how hard can marketing be? You put up a web site, run a few ads and presto - the sales begin. Unless of course, you spend your marketing budget and get no results.
I'm not complaining mind you, I just wish I could get the call before the budget is spent. Or, at least when part of the budget still remains. So here is my first suggestion: every software marketing manager out their put a percentage of their budget in a safe place before you start your next marketing campaign. Then, when you've spent your allowance, pick up the phone can call me before you touch what's left. That way we'll have something to work with when we develop your new campaign. Okay, my whining is over, now to some constructive suggestions.
So, what's the difference between getting results or not? On our web-site we have a document called, "The 26 Steps To Software Marketing Success". This pretty much explains the difference between successful and unsuccessful marketing. If you want an advanced degree in marketing you can take a look at the 26-steps, for a primer we'll discuss some basic steps in this newsletter.
In the phone consultation I just completed, my client explained that he had done some public relations and additional marketing through a web-based service offered by a national CAD publication. It seemed like a good plan, 6 different blast emails to over 60,000 registered CAD users. How could you not create enough interest and sales to cover the costs? Well, he got one lead that did not turn into a sale. In our discussion it became obvious that some basic steps were missed in creating his marketing plan. I should mention that although this conversation triggered these thoughts, I know hundreds of companies who are making the same mistakes as I write.
Step One - Strategic planning
My client's marketing plan had been more a good-idea than a marketing plan. He used his 'best-sense' of what would work to create what he thought would be a good marketing plan. The problem was that his 'best-sense' did not include the experience required to develop accurate knowledge about his specific market requirements. Does this mean he was not experienced? No, it simply means he was not experienced in the profession of marketing technical software. And why should he? Even though his background included some sales and marketing, his primary profession was software development and engineering. In order to create the very best product, he needed to keep his focus on development. Marketing was always an irritating afterthought. As a result he jumped into marketing activities without proper research and analysis, and when the result was not what was expected he found himself reacting to, rather than pro-actively managing his marketing campaign. What he needed was a thorough analysis of his market, his product positioning, his price point, and his distribution methods. After careful study, he could then develop a plan that reflected the needs of his defined market. Easier said than done, but still absolutely necessary for successful marketing.
Step Two - Multi-faceted Marketing
People that I work with get sick and tired of hearing me say Multi-faceted, but it is one of my favorite words regarding marketing, so I keep saying it. Multi-faceted, Multi-faceted, Multi-faceted, Multi-faceted, Multi-faceted, Multi-faceted. What I mean by this is that you must have 3 or more activities occurring over a period of time to penetrate the consciousness of your potential customer. As a race we are very dense. It takes multiple contacts for we humans to register an idea or image. This means we have to be hit several times in the head before acknowledging the hitter. The good news is that once contact is made, we can be influenced. If you disagree, just check out the GNP of the fashion and make-up industries and then we'll talk again. My point is that if you run one or two ads, or use a single marketing vehicle and expect it to generate results you will be disappointed. More times than not you will have the results of my client, one lead. Even if you get better results, I guarantee many times that result if you use multi-faceted marketing concepts. My recommendation: choose 3-5 different marketing vehicles and use them to create a long term marketing campaign that has at least one activity each month.
Some years ago a company approached me about helping them with marketing. They had just completed a 12 month advertising campaign that cost over $250,000. They had minimal results to show for their effort. On careful analysis I found that they had not used other marketing vehicles like PR, mailings, email, phone, etc. and had not developed an effective follow up activity. They had thousands of leads that had only been contacted with one follow up letter, and many more with which they had never spoken. They had a good product, they had good ideas, and they had had money, but their implementation was wrong. Having already spent almost their entire marketing budget, they tried to limp along on an underfinanced marketing plan and after a few years went out of business.
Step Three – Long-Term Persistent Marketing
The next equally important concept in marketing is time and persistence. Short term marketing only works if you are going after a very small, focused group and you hit them hard and fast. Even then, multiple hits are required to get your message through. For general marketing activities the best approach is long-term and persistent marketing activities. If you build a 12 month plan, with persistent marketing activities (see multi-faceted marketing above) then you give yourself the very best chance of reaching your target market. When I say reach, I mean having them actually read your material and hear your message.
Step Four – Effective Follow Up
Implementing good marketing and generating leads are only part of a complete marketing plan. There are several additional steps required to close sales. The most obvious is sales itself, meaning proper follow up on each and every lead generated from the marketing activity. This seems like a simple concept but I can’t tell you how many companies I speak with who simply do not have time or resources to follow up on leads. Let me say here, if you can’t follow up on leads, don’t do the marketing. It’s a waste of money. If you are doing marketing, include follow-up in your strategic plan, and budget for both the cost and resources required.
These few concepts are enough to get anyone started on good marketing. I don’t sell TPI services in this newsletter and I don’t care who you use, but I highly recommend you contact an expert in software marketing to build your strategic plan. There is no replacement for experience when it comes to knowing how to market technical software. It costs money, yes, but if you have a good consultant the savings will be many times the cost. Experience can be worth a great deal when it comes to the success of your business.
I’m reminded of a story about an electrician that came to fix a problem at a software developer’s office. They had a power failure on their network and he was called in to quickly fix the problem. He came in, asked what the problem was, and gave a quote of $350 to fix it. They needed their computers so they eagerly agreed. He went to his tool box, spent about 15 minutes checking wires and the circuit panel, and then he pulled out a hammer. He put his ear to the wall, listened in a few places, and then hit the wall. Bam, lights flashed and the systems went on. After he was finished the owner commented that $350 was a lot to pay for just hitting a wall. His response was, “hitting the wall cost $20, knowing where to hit it was $330”.
Visit our web site at www.thirdpartyintl.com for more information and articles on effective software marketing and knowing where to hit the wall.
~Nick Vasilieff
This newsletter was written by Nickolai N. Vasilieff; freelance writer and marketing consultant specializing in high technology industries.
For more information see www.nvasilieff.com. To contact Nick with questions or feedback, call 503-267-6339 or email vasilieff@mac.com.
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