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You're
Not General Motors, McDonald¹s or Coca-Cola,
So Don't Emulate What They're Doing.
The
key to their success isn't necessarily based on
how good they are (inside reality), but rather
on advertising repetition. General Motors, McDonald's,
and Coca-Cola advertise for the sole purpose of
building distribution and BRAND awareness. They
do image advertising - their ads attempt to marry
a lifestyle feeling to their product so you'll
get that same feeling when you go to buy.
In
1997, Pepsi spent $1.24 billion in advertising,
while Proctor & Gamble spent $2.743 billion. McDonald¹s
spent $1.041 billion and General Motors spent a
whopping $3.087 billion! That's why GM can hum
a tune "like a rock, like a rock, like a rock"
and it works. If you spend over a BILLION dollars,
you'd get stellar results too! Here's a stat that
will surprise you: Do you know how many billboards
Coca-Cola has along American roads? A thousand?
10,000? 100,000? Try 300,000! Along with 20,000
building walls painted with their logo, over 5
million soda glasses with their name printed on
them, and over 400 million newspaper and magazine
advertising impressions... IN 1930! See, it takes
time and money to really build that kind of brand
awareness... and it can work great for your advertising
and marketing If you are fortunate enough to have
a marketing budget over $100 million a year.
99%
of advertising is nothing but a huge jumble of
hyperbole, fluff and unbelievable platitudes with
black-hole nothing words: cheapest, professionalism,
service, quality, speedy, convenient and best. You'll
hear a lot of commonplace phrases and one of the
most popular ones is We're Number One. Well, whoop
dee doo. Number one in whose eyes? These mindless
words and phases do absolutely nothing to communicate
why you're the best deal, why you're an exceptional
value, why or how you solve the problems that nobody
else solves. But most businesses go on year after
year spewing these verbal platitudes that do nothing
more than get their name out there... if that. Why
would anyone want to waste marketing dollars that
hardly say anything to anyone? It's because the
majority of us have been obediently trained from
the wrong sources on how to advertise.
We
now have three types of businesses that give people
what they want. Level ONE business, surprisingly,
is the biggest provider of services and products
in this country our government. Some of us would
adamantly argue that our government has taken over
our education system, transportation, safety &
protection, our savings for retirement, and distribution
of food and clothing for over 15% of our population.
Even many of the medical and legal services are
closely controlled/provided by our government.
Average business owners cannot compete in these
markets, which control as much as 40% of our gross
national product.
Level
TWO businesses are what we call the Fortune 5000,
which includes the top 1 to 5 thousand companies
in the country. They are comprised of premier global
majors with diverse growth portfolios such as ConocoPhillips,
ExxonMobil, General Motors, McDonald's, and Wal-Mart.
Some of the top Fortune 5000 companies have portfolios
of high quality assets, capabilities, and financial
strength to generate enhanced value for its shareholders.
We've been indoctrinated by years of advertising
and social acceptance to buy from these companies.
Any product or service that can be standardized
and distributed to 80% of the population without
changing the design or concept has been converted
to a national brand name over the last 50 years.
They have the financial resources to advertise all
over the place... a million dollars here, half
a million there. It takes a lot of money and time
to build that kind of brand equity.
Level
THREE businesses include everybody else. Everything
from start up businesses and mom and pops, all the
way up to companies that do hundreds of millions
of dollars in annual sales. Level 3 companies cannot
rely on broad-based repetition-oriented advertising
that builds brand awareness. It's not that Level
3 businesses can't or shouldn't build brand awareness.
And it's not that they can't spend a lot of money
on advertising. They just can't do it nationally
on ABC, NBC, and CBS at $50,000 to $500,000 per
30-second spot. Level 3 businesses need to be more
frugal with their marketing budget in order to create
successful action-oriented advertising.
Because
of the integration of advertising into our daily
lives, we are constantly exposed to Level 2 advertising.
And everyone assumes, based on years of passive
observation, that's how marketing and advertising
are done. That probably explains why so many people
consider themselves to be advertising experts.
People say, "Hey, I've been submersed in it
my entire life, so I certainly must know something
about it." If you go to college and learn
how to do advertising, they'll teach you Level 2
business advertising. That's fine if you're working
for a Level TWO business. But here's the problem:
most of these folks who graduate with all these
degrees in advertising and marketing don't know
how to make money in the real world. If you stick
them in one of the Fortune 5000 company's marketing
department, they might do okay, but if they don't
have the 20, 50 or 100 year history of the company
backing them up, along with the multi-million dollar
or billion dollar advertising budget, they don't
know how to make money. They don't know how to get
prospects to take action. And for you, that's what's
crucial getting the prospect to get past the
confidence gap, to realize that you offer a superior
value, and to take action.
What
you need to be able to do is craft your business
and then advertise where prospects can take action
that will lead to a purchase. That action could
be anything. Maybe it's to call in and place an
order or to request an information kit. Maybe you
want the prospect to send in a reply card, call
a toll-free hotline or visit your website. That's
different than Level 2 advertising where you're
trying to create a feeling/lifestyle and attach
it to your product. You've got to manipulate your
advertising so the prospect will take ACTION!
The
bottom line is that you have to spend your marketing
dollars more intelligently than level 2 businesses.
The way you do that is by using action-oriented
advertising. There are many benefits to this type
of advertising. The main one is that you know almost
instantly how profitable or unprofitable your ads
are... based on the number of inquiries, orders,
hits or leads you receive DIRECTLY from the ads.
You'll hear a lot of people in the advertising
industry say you can't quantify the results of your
advertising like that... and in some cases they're
right. But that's only because many businesses
don't understand the fundamentals of how to make
their advertising make money. Some people will
bark that you can't do action-oriented advertising
in certain media. Again, you can, IF - and only
if - you know how to do it properly. There are a
lot of factors and components that will affect
your response. You're not General Motors, McDonalds
or Coca-Cola, so don't emulate their advertising.
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