Question

Topic: Strategy

For Profit Group Wishes To Expand

Posted by Anonymous on 11/12/2010 at 6:37 PM ET 1000 Points
PROSPECT:
GROUP OF (SPECIFIC) INDUSTRY PRINCIPLES. Small-Service-Business Owners have unique concept.

QUOTE: We are checking out the possibility of creating an organization to (go after specific lines of business). The organization will be driven by technology. We are looking for some exclusive programs and want to attract not only clients but other owners in our industry into the system.

I would like you to think about how to phase in a marketing strategy and the budget for such a program. UNQUOTE

As I understand this: The organization will create the technology to assist others in their industry to close more business. They want a strategy that once the technology is developed, to use its operational functions to draw others to join the group and permit the organization to help them accomplish their increased sales goals.

I know you will have questions. I welcome them, except for the question: "What is the industry?"

Does anyone have experience with the formation of "industry-specific organizational marketing"?

BIG points for great responses.

Thanks, Randall
WMMA
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RESPONSES

  • Posted by telemoxie on 11/12/2010 at 8:47 PM Accepted
    I'm not completely sure that I understand what this firm is trying to do. however, I may add some relevant experience.

    Many outbound marketing programs share the costs of targeting a specific market. For example, companies such as Mailer mailer split the costs of direct mail to target certain homeowners. Advertisers share the costs to produce a magazine. Exhibitors share of the costs of a trade show.

    I attempted on various occasions to implement this sort of idea, using telemarketing and e-mail and snail mail to reach selected target markets. This was similar to a manufacturer's rep model, but I was attempting to work on a time and materials basis rather than a commission basis.

    This was surprisingly difficult to do.

    I attempted this sort of approach several times targeting several target markets, and never quite got it to work. I would be happy to share lessons learned with anyone who is interested.

    Am I reading your question correctly? Do you have someone who is attempting to share the costs of reaching an unnamed market using an unnamed new marketing technology?
  • Posted by michael on 11/12/2010 at 9:39 PM Accepted
    Randall,
    The idea of marketing an association comes to mind first, but those tend to focus mostly on education...not closing business. Well, also cost savings for members.

    Then I thought about those local lead-sharing business organizations..but those people aren't all in the same industry. In fact the "clubs" limit the number of each type of member.

    But THIS, this seems to all be competitors? Unless we're talking about small business owners from around the country, i.e., not direct competitors.

    Are we talking about revenue sharing? So, helping another member also puts money in my pocket? Hmmm...

    Funding could be a set amount from each member. Almost like stock, the members would earn based on the amount they put in....with some limit..say 5%?

    I wonder if something like what cars.com has done would be similar to what they're looking to do....except the members would own the technology.

    Michael
  • Posted by CarolBlaha on 11/13/2010 at 7:58 AM Accepted
    I'm not 100% sure of what they're trying to do either-- but this comes to mind. I worked wtih a restaurant chain that developed their own technology to manage their units. After that investment, they then offered it to other restaurants, creating a separate profit center. They spun it off as a separate entity cause another restaurant chain might be hesitant buying software from a competitor. The clients didn't know they were buying x's software-- it was branded separately-- but the new co boasted they were the creator of x's technology and it was available to their competitors.

  • Posted by mgoodman on 11/13/2010 at 11:42 AM Moderator
    I'd love to help, but I don't think I understand the concept yet. Randall, this may not be the kind of marketing issue that can be addressed intelligently without the kind of information you don't want to disclose.

    I have quite a bit of experience with pieces of what I think you're describing, but I can't tell if I'm just reading into it what I know, or if you really have the problem I'm able to address.

    Is this a nail looking for a hammer, or a hammer looking for a nail? Start with a clear definition of the target audience, then the positioning benefit you think you want to offer them.
  • Posted by Gary Bloomer on 11/13/2010 at 1:10 PM Member
    Dear Randall,

    I agree with Michael: an association with membership-based access (and tiered access at that) that enables members to access varying levels of educational content from peers in the niche might be a good way to go.

    I think the notion of closing more business needs to be educational rather than sales-pitch based, but that's just my take on things and naturally, that might be what you mean.

    A site like this can be built with a Wordpress based blog and a membership-based plugin. Content can then be dripped to members on a monthly basis. This also allows the content to be given controlled access—access that can be granted for a fee.

    I have a strategy to make the most of this idea, a strategy I'll gladly share with you off forum (and with anyone else that cares to learn more—just send me an e-mail via my name above).

    I hope this helps.

    Gary Bloomer
    The Direct Response Marketing Guy™
    Wilmington, DE, USA

  • Posted on 11/13/2010 at 5:24 PM Accepted
    I don't have direct experience but I have seen a few variations on the theme. Small businesses in a service industry.

    1-800-dentist comes to mind. Really just a call center and shared marketing. No shared processes, systems, etc. Just a way of group marketing. However, I doubt 1-800-dentist ever drills teeth themselves so no direct to consumer.

    I have seen groups formed under a banner in the trade industry. Bob the local plumber changes his banner to nationwide plumber group. Here there may be some magic shared technology or it may just be shared advertising. There may also be the possibility of some future consolidation by the group leader...it gives me an avenue of selling my business to the group after building value over a period of years.

    Another that comes to mind is done by intuit. Quickbooks Pro Advisers. Independent bookkeepers/accountants pay Intuit for the privilege of selling Intuit's products. In return they fly the QB Pro banner and are able (in theory) to attract more business.

    I can't recall any specifics but I have seen a few groups try to organize accountants into marketing groups over the years. Never seemed very attractive.

    Hope this helps.

  • Posted on 11/13/2010 at 5:27 PM Member
    Well...I didn't put the link to the dentists phone number is my post. It has appeared through the wizardry of computers and marketing. I have no affiliation with that group...it was just an effective advertising campaign.
  • Posted by mgoodman on 11/13/2010 at 5:50 PM Moderator
    bob, you can turn off that linking feature for phone numbers if you want to. It's planted there by sites like Skype, thinking that you might find it a convenience. It's the default, but not everyone lives with it ... so some of us never even see it.
  • Posted by Jay Hamilton-Roth on 11/14/2010 at 8:12 PM Member
    The first thing that comes to mind is The Chiropractic Dashboard (https://www.thechiropracticdashboard.com/). Members get a lot of software/video turnkey support. Supposedly get a lot of leads on "autopilot". A chiropractor I knew who's a member says he's only using a fraction of the system and is happy with the results. I don't know if this is the sort of thing you're looking for, Randall.
  • Posted by Chris Blackman on 11/15/2010 at 1:39 AM Accepted
    Hi Randall

    Sounds like what you're contemplating is essentially a kind of marketing co-op or what might be loosely-termed a "banner marketing organisation", i.e. multiple organisations marketing under a common name or banner, without having to be part of a franchise group or having any cross-ownership.

    To decide the appropriate organisational structure, operational strategy and tactical plan, you must first decide the strategic objectives of the group and establish any pre-existing ground-rule requirements.

    I've done exactly this kind of thing before for a very specific kind of industry where the leading player in each city was united under a common banner to form a national collective, employing a common software platform to deliver services like a truly national company at a fraction of the cost.

    The group went from minnow to whale in twelve months and have now become the dominant industry player.

    I can provide more info offline if required.

    Cheers

    Chris
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