History of Marketing

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History of Marketing Advertising

• In the early days of advertising (late 1800s
  early 1900s), most companies competed on a local
  or regional basis
• Competition was fierce
• Much of the advertising was comparative in nature
• This forced advertisers to use their brains when
  crafting their ads

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History of Advertising
Smaller companies got pretty good at getting
attention and building a case
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Blame TV

• In Post WWII, everything changed
• North Americans had unprecedented prosperity
  income and free time started to grow rapidly
• Most significantly, post WWII brought us
  Television
• In 1945, TV was first commercially introduced
  fewer than 7,000 sets exist, and only 9 stations
  in 5 markets
• By 1951, there are 12 million BW sets
• 1952 20 million households
• 1955 Prime spots garnering 4,000 a minute
• 1957 Variety Magazine reports viewers encounter
  420 commercials a week totaling 5 hours, 8 minutes

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Brand Builders

• Television The Era of the BRAND BUILDERS
• National companies had a new medium to reach the
  entire North American continent
• Because of limited supply, cost quickly went up
• Commercials shrank from two minutes down to 30
  seconds
• Advertisers had less time to build a case so the
  SLOGAN became popular
• Arent you glad you use Dial?
• Ring around the collar
• Melts in your mouth, not in your hands
• Finally, logos became the most cost-effective way
  to advertise
• McDonalds abandoned their You deserve a break
  today slogan because it cost too much to say and
  instructed their agency to just flash the arches

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Benchmark Emulation

• 1950s to Present
• National companies made fortunes by advertising
  on the tube
• Ad Agencies and Business Schools benchmarked
  these large companies
• Institutional (or image) advertising was the
  calling card of BIG, RICH companies
• Everyone drew the conclusion Thats how you do
  it!
• Ad Agencies, Business Schools, and Advertisers
  (business people) dont know any other way to do
  it BUT this way
• Assignment Make a list of
• This emulation of Fortune 500(0) advertising has
  been going on for well over 40 years now by ALL
  SIZES of companies.
• Institutional style and menu-board style
  advertising

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Fortune 5000 Influence

• HUGE Budgetsstats from 1999
• Pepsi 1.31 Billion
• Proctor Gamble 2.61 Billion
• McDonalds 1.13 Billion
• General Motors 4.04 Billion
• Coca-Cola
• 300,000 Billboards
• 20,000 Walls with their logo painted on it
• 5 Million soda glasses with Coca-Cola logo
• 400 Million newspaper impressions
• In 1930!

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Ineffectiveness

• Symptoms of the BRAND BUILDER emulation
• Focus is primarily on GETTING ATTENTION
• Heavy reliance on design, pictures, and humor
• Ad Agency Formula C R
• Creativity 25-year olds sitting around thinking
  crap up
• Repetition Get BRAND into your brain enough
  times
• Deficiencies in effectiveness made up for with
  repetition
• Which is still okay if your ad budget is over
  250 million a year
• Platitudes Generalities rule the roost
• Advertising puffery (remember Papa Johns vs.
  Pizza Hut) Judge declared nobody believes it
  anyway

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What About You?

• Most companies are not Fortune 5000
• Provides more personalized products and services
• Marketing budgets are much smaller
• Your Marketing Needs Are Different
• Need to get maximum results for every dollar
  spent
• Need to utilize action-oriented advertising
• Need to build a case for your unique products
• Need to separate from your competitors
• Need to lower the risk of trying

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Need, Need, Need YES. But the fact is, most
companies marketing

• Does NOT maximize dollars spent.
• Is NOT action-oriented
• Does NOT build a case for their unique products
• Does NOT separate from their competitors
• Does NOT lower the risk of trying

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Brand Building Works Just Fine
If There Are Only 3 Competitors And Each Has
250 Million To Spend On Advertising But
Thats NOT You!
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Competition Has Changed Over The Last 10 To 20
Years
Now Youve Got HUNDREDS Of Competitors And A
Limited Budget, And Its Hard To Break Through
The Clutter.
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The Days of Simple Selling10 to 20 Years Ago
Back Then, The Seller Had The POWER...
Because The Buyer Had Very Few Options.

• Fewer Competitors
• Fewer Choices
• Low Technology
• Low Education

• Low Information
• Low Resistance
• Easier to make a buying decision

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The Confidence GAPThe New Paradigm Shift to
Marketing
Now The Buyer Has The POWER...
...And The Seller Is At His Mercy
Confidence GAP

• Entrepreneurial Boom
• Increased Technology
• Increased Competition
• More Choices
• Increased Information

• Increased Resistance
• Longer Buying Cycles
• Price Competition
• Products Are Commodities
• Identical Marketing Messages

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Look Around Your House For Proof

• Product Mid 1970s Now
• Frito-Lay Chip Varieties 10 78
• Breakfast Cereals 160 340
• Pop Tarts 3 29
• Soft Drink Brands 20 87
• Colgate Toothpastes 2 17
• Mouthwashes 15 66
• OTC Pain Relievers 17 141
• Running Shoe Styles 5 285
• Contact Lens Types 1 36

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Now Theres More Competition Than Ever
And Because Of The Brand Builder
Mentality Nobody Big or Small Is
Communicating Anything Worthwhile! So Now There
Are Some New Rules
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The New Sales Paradigm
The big money goes to those companies with
superior marketing operations. Entrepreneurial
companies of today MUST evolve from being sales
oriented to being marketing oriented in order to
now win the consumer. Scott DeGarmo,
Editor SUCCESS Magazine
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Marketing Is Making People WANT To Listen
It is as useless to try to sell a man
something until you have first made him want to
listen as it would be to command the Earth to
stop rotating. Napoleon Hill
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Because of the nature of business, it has just
two functions, and only two. Marketing and
innovation. Marketing and innovation make money.
Everything else is a cost. Peter Drucker
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Marketing Bridges The Confidence Gap
MARKETING
The GAP

• Non-Obtrusive
• Reviewed At Own Pace
• Reviewed When Its Convenient
• Can Ignore If Not Interested
• No Commitment

• Concise and Well-Articulated
• Powerfully Stated
• Low / No Pressure
• One-Way Communication
• Not Afraid of Rejection

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How The Business World Bridges This GAP

• Better Customer Service
• Youve got to have customers to give them
  service.
• More Sales Training
• Youve got to have prospects to use sales skills.
• Advertising Tricks Techniques
• You must understand principles, not just
  techniques.

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Two Sides To Every Business

• 1. The Inside Reality
• Quality of your product or service
• Your people/staff - Customer service
• Your systems, performance
• Those things that make you valuable to the
  marketplace

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Inside Reality?
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Two Sides To Every Business

• 2. The Outside Perception
• How the marketplace perceives your Inside
  Reality
• Based upon your communications with the
  marketplace.
• Your sales, marketing and advertising messages
  all build the Outside Perception

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Outside Perception?
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Marketing Is Communication
Most Companies Outside Perception And Inside
Reality Dont Match Up.

• You must communicate your inside reality to the
  outside world in such a way that customers and
  prospects arrive at this simple conclusion

I would have to be foolish to do business with
anyone else but you regardless of price.
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What Are We Trying To Communicate?
- C O N F I D E N C E -

• The Four Cs of Confidence
• Character
• Competence
• Communication
• Consistent Contacts

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The New Sales Paradigm
The big money goes to those companies with
superior marketing operations. Entrepreneurial
companies of today MUST evolve from being sales
oriented to being marketing oriented in order to
now win the consumer. Scott DeGarmo,
Editor SUCCESS Magazine
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In order for any business to succeed,
it must first become a system, so that the
business functions exactly the same every
time down to the very last detail. Michael
Gerber, The E Myth
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A Step By Step System for innovating
marketing your business -------------Measurable
- Sustainable ProfitableRevenue Growth
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The MYM Marketing System

• 4 Distinct Components
• Discovery Process
• Powerful Communications
• Franchise The System
• Maximize and Optimize

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Part 1
Discovery Process

• Research the Industry Product / Service
• Define Target Market
• Profile John/Jane Smith
• Identify The Competitive Landscape
• Interview/Screen Prospective Clients
• Know with pinpoint accuracy, the entire
  landscape the ROI to dominate the market
• NO GUESS WORK ALLOWED
• Genesis of all marketing / business growth plans

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Part 2Communications

• The Psychology of Buying
• Look at how John / Jane Smiths brain works
• in relation to marketing
• "It is as useless to try to sell a man
  something until you have first made him want to
  listen as it would be to command the earth to
  stop rotating.
• 
  
  Napoleon
  Hill

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Part 2CommunicationsAlpha Mode

• Alpha Mode and Marketing
• State of apathy (Unconscious) toward marketing
  communications.
• Consumer literally oblivious to nearly all
  marketing messages.
• Marketing communications not even noticed in the
  first place gives businesses little chance to
  sell.
• Your job is to break John Smith out of this
  state get him to snap awake.

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The Psychology Of BuyingBeta Mode

• Beta Mode and Marketing
• Person consciously notices marketing
  communications
• Person actively seeks information on products or
  services.
• Person is open to ideas and suggestions about how
  to solve a problem.
• Person reads and absorbs as much information as
  necessary to make the best decision.

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• The Reticular Activating System
• Part of the brain on 24 / 7 lookout for things
  that are
• Familiar, Unusual or Problematic
• This System is responsible for snapping
• John / Jane Smiths brain from Alpha to Beta
• Note The Brain will respond to Activators
• But, for it to work, it must be based on a
  Hot Button (a value that is important/relevant)

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Buying Cycle

Educational / Buying Spectrum ---- 95-99
-------------------------------------1-5
Time --------------------------------------------
---------------------------------------------?
Gathering Info
Purchase
Thinking about Buying
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• Almost All Marketing Is Targeted at NOW Buyers
• Many FUTURE buyers respond to the ACTIVATOR
• Theyve been INTERRUPTED, ENGAGED, but
• With NO OFFER, theres no way they can stay
  engaged
• So they dont respond, even though theyre
  interested
• Result Marketing dollars are wasted and
  youre not in control of your target market.

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The REALCommunications Equation

• Interrupt Hot Button Based Headlines
• Moves John Smiths brain from Alpha to
  Beta (gets attention)
• Engage Sub Headlines Holds Attention
• Keeps John Smiths brain in Beta (stays
  engaged)
• Educate Opportunity to Sell
• Become the facilitator (Discovery
  Information) Put them in CONTROL of the decision
  process
• Offer Low Risk to Take Next Step
• Helps client take the next step in the sales
  process Move her along the Educational Spectrum
• I E E O Maximize Sales Revenue

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Part 3Franchise the System
Marketing is NOT
Black Magic
A Silver Bullet
A Creative Exercise ITS A DISCIPLINED
PROCESS
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Requires Commitment
Has to be the way you do business to have a
lasting, long term impact.
THE GOOD NEWS As you get better at it youll
keep widening the gap between yourself and your
competitors
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Systemization Makes Sales People Better

• Make so-so sales people good
• Make good sales people great
• Make great sales people SUPERSTARS
• The Power of Systems

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Part 4Maximize and Optimize

• Continue measure and interpret your results
• Use the results to refine and improve
• Develop strategies to develop new and repeat
  business
• Referral Systems
• Lifetime Value Analysis measure ROI over time
• Joint Ventures
• Strategic Alliances
• Up-Selling Strategies
• Knock Down Lists
• Licensing
• Taking your Business to a Whole New Level

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• The True Impact Of A Fully Implemented Marketing
  System In Your Business
• More Qualified Leads
• Improved Closing Rates
• Higher Margins
• Shorter Sales Cycles
• Controllable Revenue Growth

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To Learn More

• Youre invited to an Executive Briefing
  Orientation To Learn How To Solve Most Of The
  Marketing Impotence That Seems To Retard The
  Efforts Of Most Businesses
• The Angus Glen Golf Club10080 Kennedy
  RoadMarkham, Ontario
• Register Here
• www.MYMToronto.com/ExecBrief.html 647-477-6820

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