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Finding The Most Cost Effective Form Of Marketing
Posted By: professional* on 1/5/2005 1:23 AM (CST) 250 Points
Guardian Aerospace consists of three inter-related businesses. A fledging flight school, a small air charter company for 1-7 passengers and a structural rebuild facility for small aircraft. Money is tight. One of many challenges is to determine the most cost effective form of advertizing and marketing without losing funds by experimenting. Our market is predominantly male, ages 18-45 for all three divisions, the target area covers the central third of British Columbia, has a low population density and our market is dependant upon a population with after tax dollars to spend?

How does one determine the most cost effective form of advertizing without committing sometimes large financial errors?

Posted by: Manu Rajan Member Response
1/5/2005 4:10 AM (CST)
18-45 is a way too broad segment. You will end up wasting money trying to inform these people about the brand without being relevent to any of them.

I guess, you want to start at 18 for your flight school and as they grow older and richer for the other two services.

each service you offer is different! Each one satisfies a different need and each one is addressed to a different profile of people! I guess, you will have to look at each one differently.

To start with the flight school, what would be the minimum qualification to get admission? Where would your next year's prospect be now? Can we contact them where they are? Who funds their education? Parents?

How about contacting churches to announce a new career option for the young ones?

I am not clear about who will buy the other two products/services? Who would need those products?
 
Posted by: Manu Rajan Accepted Answer
1/5/2005 4:29 AM (CST)
Hi professional,

I just came across an article by Joe Gracia. It says 28 low cost ideas to increase your sales and profit. Hope you find it useful.

Here is the article.

Growing your business doesn't have to be difficult or expensive. These simple, cost-effective ideas are designed to help you increase your sales and profit, without draining your budget.

1. Focus on Helping, Instead of Selling

You shouldn't be trying to force people into purchasing your product or service. You should find people who want your product or service and then focus on offering any helpful information to them so that they can make an informed decision.

2. Target

If you're trying to target everybody, then chances are, you're not targeting anybody. For example, if you're selling something that homeowners would want, as opposed to renters, then target homeowners. State your target clearly in all of your marketing materials.

3. Stop Spending Money on Ineffective Marketing

One great way to save money is to stop wasting it on marketing and advertising that isn't producing for you. Don't forget to track the number of responses you are getting from whatever method you use. If you're not reaching your goals, then your strategy needs to be revised.

4. Network

Networking is a great way to get your message out to a large number of people, for free. Since each person knows about 250 other people, you can spread the word about your business pretty quickly. Go to your local Chamber of Commerce meetings. Shake hands at business functions. Exchange business cards with associates you see in stores, churches and community events.

5. Set Goals and Deadlines

Collect your thoughts for a moment or two, and set goals and deadlines. These are vital to your business success. State your goals as specific numbers. (e.g. 10 new accounts, 11% increase in sales, etc.)

6. Focus on Benefits Not on Features

Spend your time focusing on how your prospects will benefit if they purchase your product or service. For example, if you're selling central air conditioning units, don't sell the power of the unit. Sell the benefit of comfort. Selling insurance? Don't sell the coverage amount. Sell the benefit of security.

7. Write Tips Articles

Newspapers and other publications are always looking for helpful tips articles that would be of benefit to their readers. Submit simple, problem/solution type articles related to your product or service. State the problem, and then share some insightful tips that can help to solve the problem. Always include information at the end of your articles so that people will know how to contact you to receive more information about your services.

8. Be Persistent

Persistence is power when it comes to increasing your sales and profit. Far too many firms fail because they don't follow-up long enough to produce results. Most sales are made after the seventh or eighth contact--the sale is rarely made after just one contact.

9. Submit Press Releases

Press releases are a very cost-effective way to get your message out to many people . . . for free. Submit your press releases to a wide variety of publications for immediate release. Keep in mind that the newspapers will usually only print releases that are of interest to their readers, rather than of a selling nature.

10. Offer to be a Speaker

Business and civic organizations are always looking for speakers for their meetings and get togethers. Make yourself available by contacting these groups and offering to talk about your area of expertise.

11. Give a Free Demonstration

If possible, give free demonstrations of your product or service to those that might be interested. Follow-up with these prospects in a timely manner to attempt sales conversion.

12. Distribute Samples

If possible, get samples into the hands of people who may be potential customers. People like to try before they buy.

13. Distribute Informative Literature

Make sure that you get your product benefits, features and ideas into the hands of your prospects. If people don't know what you have, how can they make a decision to purchase it?

14. Use the Telephone

The telephone can be one of your most effective, and least expensive, sales tools. Call people who you would like to do business with. Ask for a few minutes of their time so you can show them how your services can help them save time, cut costs, increase sales, etc.

15. Generate Referrals

Referrals are a great way to generate new business. Don't just wait for people to refer you. Proactively ask for referrals from existing customers, acquaintances, family and friends. Don't forget to graciously thank anybody who refers your business to someone.
 
Posted by: Manu Rajan Member Response
1/5/2005 4:30 AM (CST)
16. Have Fun

Frustration and stress will slow you down. You will succeed far better when you're doing something that you love.

17. Talk to Your Customers About Them and Their Needs

Most company publications, ads, letters and sales literature are filled with words, photographs and information that do nothing more than toot the company's horn. Talk about your customers needs instead. Rather than using the words, "I," "me," "my," use "you" and "your."

18. Develop Customer-Oriented Relationships

Take an interest in your prospects and customers. Send them helpful articles that you think would interest them. If you know of an event that your prospect or customer will be celebrating, such as an anniversary or birthday, send them a card or small gift. They will appreciate your generosity and will think of you when they need your service, or if they know someone else who may need your service.

19. Tell Your Prospects and Customers What to Do

Getting your message into the marketplace is important, but getting prospects/customers to respond is the real test. Tell your prospects exactly what you want them to do next (e.g. call for your free brochure, drop your reply card in the mail, etc.)

20. Take Advantage of Testimonials

Whenever an existing or potential customer says something positive about your company, ask them if you could use their statement in your marketing materials. Your company's credibility will increase with the use of testimonials from happy customers.

21. Make it Easy for People to do Business with You

Your customer is not going to work for you. You have to work for them. Do anything you can to make doing business with your company easy and a pleasure.

22. Content First, Form Second

When developing your sales materials and literature, spend less time worrying about the graphics and colors, and more time working on the content -- what's in it for your customers. As long as your message is enticing, black ink on white paper could work just as effectively as expensive four-color materials.

23. Give to Get

There's an old saying, "You can get everything you want, by helping enough people get what they want." Listen carefully to your prospects and customers so you'll know exactly what they want and be generous in your offers. That way you'll be sure to reap the maximum rewards.

24. Learn a New Marketing Technique Every Day

Read, go to seminars, listen to audio tapes. Continuously improving your sales and marketing skills will help you to increase your sales and profits.

25. Associate with Positive, Successful People

Talking to and learning from people who are always striving for and meeting their goals, will help you commit to and achieve your own objectives.

26. Believe in the Product or Service You Sell

If you don't believe in the quality and benefits of your product and service, your prospects won't either. Present the benefits of your product/service with confidence and enthusiasm.

27. Focus on the Lifetime Value of Your Customers

Don't focus on generating one-time customers. Build a relationship so that a prospect becomes a repeat, lifetime customer.

28. Learn from Someone Who Has Experience

Marketing is an important skill based on both knowledge and experience. The fastest way to gain that knowledge is to find someone who knows what works and has done it successfully. Ask about his or her specific experience in generating marketing results, as well as references, or testimonials. Reasonably priced marketing materials, like books, courses, workbooks, newsletters, audio cassettes, etc. can be excellent resources, that allow you to learn and apply effective marketing systems at your own pace.
 
Posted by: AndrewS Accepted Answer
1/5/2005 4:33 AM (CST)
"Cost per prospect" is the best way of seeing how effective a particular media is for you.

Work out how many of you prospects (suspects) will see a promotion and divide by the cost of that promotion. If you do that across your entire marcoms plan, you will find out what media is most effective.

Secondary to that is the creatives used, the way in which you get the message across. Simply put, if you have a stunning graphic and text, but no "call to action", response will be poor, and not effective.

In my FREE Toolkit, you will be able to get hold of an effectiveness model I have developed with other businesses which may help you.

Good Luck
 
Posted by: professional* Author Response
1/5/2005 5:21 AM (CST)
Thank-you for your quick replies...I am waiting for additional repsonses and review your comments in the later morning.
 
Posted by: pkemper* Member Response
1/5/2005 10:55 AM (CST)
Since you already have clients, I suggest you use them to promote you businesses. Give them something in return if they refer people to you.

Also, have students do some calling into a selected set of addresses. ZIP codes might be helpful to find the richer areas of your geography.
 
Posted by: professional* Author Response
1/5/2005 12:57 PM (CST)
Mr. Manu Rajan thanks for your info. The simplistic and "cheap" methods mentioned in "the 28 ways to..." could easily be applied to a small company as ours where one person may be holding several key positions within the company. This affirms my thoughts that there are no complicated systems that need to be employed to arrive at basic conclusions or success. I am sure I will have further questions in the future.

Mr. Andrew S. I have received and reviewed your information and have found solutions to my questions there as well that are complimentary to those from Mr. Rajan. Thanks for your assistance and I will follow up with further questions in the future.

To further describe my position within this company: I hold too many positions of responsibility and the company can not afford to hire employees to specialize in varying departments. At the end of day I will have acted as the chief instructor, charter pilot, marketing director, operations manager and president of the company. Each of these positions, especially with the level of government regulation can become a full-time position. Obviously with time, delegation will occur.

In conclusion thanks to all the participants.
 
Posted by: Bill Moore* Accepted Answer
1/5/2005 5:09 PM (CST)
Dear Professional -

I was born in Vancouver so howdy ...

In addition to what the other members have suggested I would recommend that you utilize referral marketing. Specifically develop an incentive for your existing customers to bring in new business "Friends Fly Free". In essence turn your customers into sales people because clearly you don't have the time. A critical component to this is to get people in the air so they can experience the small aircraft rush. After they have experienced the sensation your closing rates will increase dramatically. This is called the "puppy dog sale".

Also you may want to consider talking with the Federal Govt and see if they want to strap some infrared cameras on your planes so they can check those BC apple crops (wink).

Good Luck, Fly safe and just think where Canadian aviation would be if the Avro Arrow project was never canceled.
 
Posted by: Ivy Mills* Accepted Answer
1/8/2005 1:11 AM (CST)
Hi professional, and welcome to the KHE! Where is your flight school located exactly? I live just outside of Salmon Arm, BC, and I am very interested in getting my ultralite (spelling?) license. If you're nearby, maybe I'll come down to see you in the summer (or winter for ground school I think?)

I think there's only way you can target the oh-so-vague 18-45 male group. Introduce flying as the "new and improved" flashy sports car. I know a few guys with planes and holy crow - they just adore those things. They're always talking about how to make their planes lighter, faster and more fuel efficient (not that fuel efficiency is cool, but you can go farther). Brand the planes as the evolution of the old big block Chevy.

This will hit the young guys hard as long as they can show off to their girlfriends, and it could replace the classic mid-life crisis red corvette. Do not waste your money on newspapers (unless we're talking free press) - your target should be adventurous types - not the kind that read the morning paper with their coffee.

A well-crafted television ad aired on a local station won't cost much - but again, don't run it during the news (unless it's free press). A website is a cheap and easy way to increase curiosity and hype. The main thing is to keep high quality in all of your touch points.

I agree with Bill - get people in the planes. I was hooked after my first flight!

Ivy
 
Posted by: professional* Author Response
1/14/2005 8:50 PM (CST)
Hello Bill Moore and Ivy from BC. Thanks for your info.
I also thank the other contributors to my question. The infomation received will help sharpen the focus in marketing in very specific areas for the target market. It is becoming more obvious we need to narrow the field to whom we will be directing our advertizing. I will be closing the question now, but will have others for you in the future. Thanks for help.

For Ivy, Vanderhoof is located 7 hours drive North of Kamloops. We are actually 1 hr West of Prince George. Your are always welcomed to visit if you're in the area.
I did take some training with a guy from Salmon Arm who specialized in the Challenger Ultra-light. His name was John and that was his little niche market.
 
Posted by: D4Demand Accepted Answer
1/28/2005 4:47 PM (CST)
From Guerilla D4!

Word of Mouth is by far the least expensive form of advertising. It is the result of 1) doing a great job for your customers and 2) having some promotion that causes a buzz.

Offer a free flight half hour (or wahtever you can afford) to newbies and those who might be interested n your services. Better yet, identify things that you are already paying for but of which you have excess capacity (e.g. storage space in which to wash a plane on a cold, cold day?)

Decide on the promotion and the time period for which you will offer it and use Ivy's idea of the sports car as your graphic then use Email as your distribution tool.

Email all your clients and ask them to forward it to everyone in their email databases who might be interested.

Your cost? Whatever the giveaway costs. As long as it is less than you are currently spending to get a prospect (and there are costs) you are ahead of the game. So you can put all your marketing dollars in the GIVEAWAY item instead of spliting it with the advertising costs.
 
Posted by: Allan Accepted Answer
1/28/2005 5:43 PM (CST)
There is a wealth of data in the latest "Response Rate Survey" which you can buy from the Direct Marketing Association (www.the-dma.org). They tabulate the response rates companies across many industries have achieved from their various marketing efforts, including direct mail, telemarketing, infomercials, inserts, etc etc. This can give you some well-founded guidance on which media or combination of media to use.

The other key thought to consider is targeting small, tightly focused groups of prospective customers with tests. For example, if you can define the "sweet spot" in your target market for the flight school, a short run of mailings can be done using digital printing for very little money. With the new technologies available to personalize and do 1-to-1 marketing via direct mail, you can actually track response right down to the individual recipient and achieve far higher response rates than ordinary direct mail. Then, using the market intelligence you gain from a test mailing, you can refine the mailer and do another test run to a new list. The keys here are (1) defining the market; (2) using a prospect database that allows you to select only those people; and, (3) getting the sales messaging and offer just right. We do this for clients on a daily basis, so feel free to contact us if you'd like more information (Note - I'm not soliciting your business, but would be happy to direct you to resources you'd find helpful).

As for the charter portion of your business, the same principles apply. Here though, it seems you might have a business-to-business opportunity. That would require a different kind of sales message and offer. Sometimes when a company has several products/services to offer we like to ask two questions: (1) Which one provides the greatest profit? (2) Which one has the shortest sales cycle? If it should happen that one product/service provides both the best margin and the shortest cycle to close business, that one clearly becomes the place to focus marketing efforts. It might be worthwhile to look at your different operations and decide where to best spend your resources.

Hope this is useful.
 
Posted by: telemoxie Member Response
2/1/2005 11:51 PM (CST)
Sorry to be a pragmatist - but if I were in the marketing position, I would try to determine the preferences of your CEO. For example, he or she might really like to sponsor golf outings. If so, he or she might be more willing to stick with such a strategy and give it enough time to succeed. On the other hand, if thru focus groups, white papers, case studies and other means you were to discover the absolute best form of marketing, it won't work if you are a small company and your CEO doesn't believe in it, and pulls the plug too soon.
 
Posted by: Val (Moderator)* Moderator Response
2/4/2005 2:15 PM (CST)
Hello all. I am closing this question, since its more than two weeks old. We do this to make sure members' contributions are rewarded in a timely manner and to improve the visibility of newer questions.

Thanks, so much, for participating!
Val (Moderator)
 


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