Business in General Archives - Page 14 of 25 by Mark Murnahan

Is Your Marketing Microcosm Too Micro?

This is not just about thinking bigger, but more about thinking outside of what you know … or rather, what you think you know. This is not an attack against you, or it must be attack against me, too. The fact is that we plain and simply do not know how much we do not know. Until we know it, and address those important but unknown issues, we stand to suffer many losses.

Some people will term it “thinking outside the box” but that is not natural for most people, and it can certainly hold its dangers in office politics. Let’s face it, independent and creative thinking is not encouraged enough. Most people think the way they are told to think. After all, that is most of what proper schooling is about. I respect the way Albert Einstein observed it with his statement as follows:

“Great spirits have always encountered violent opposition from mediocre minds.”

–Albert Einstein

It is hard to believe this occurs in a time with such great communication and collaboration tools, but it is quite common. Just consider how many times a creative person is suspected of gunning for the boss’ job and gets kneecapped for having great ideas. Even when this is not the case, it is often feared to be reality, or there are fears of not receiving proper recognition. Most companies hate to admit this, but a lot of great thoughts never make it up the flagpole because of a culture like I describe here, or somebody mediocre shot it down prematurely. Maybe it is because the decision makers do not understand the value, they are threatened, or otherwise just can’t get their head out of that box. Whatever the case, I know that it exists, because I see it all the time. Companies create their own misery, and the same thing happens in companies from one employee to thousands of employees. It is often a case of not knowing what they do not know, and it stunts their growth … often very badly.

The Tragedy of Projecting Your Own Beliefs

The fact that we do not know how much we do not know about our potential customers and their way of thinking can be tragic. It is so simple to think we have a good picture of them, but a very common fact is that we project our own lives and ideas onto them. When we think we know what they want, or what they should want, it gets in the way … badly! For example, I recall roughly 20 years ago selling cars to supplement three companies I was getting off the ground at the same time. I was pouring everything I could into those companies, and thank goodness. Two were pretty big hits for me.

At the time, I did not really relate to buying high dollar cars. Later, as life changed and I started buying nicer cars, I started seeing things differently. I realized signs of mistakes I had made back then by projecting my own thoughts or lifestyle. I have witnessed it from salespeople who were shy to ask for the sale or to ask for their reasonable profit, because they could not see themselves in my position, as the customer. I like buying nice things. I like cars and motorcycles … a lot. I have spent well over half a million on cars in a given year. I recall making a believer of a sales manager when I purchased three Corvettes, and a Cadillac Escalade from him. He learned to ask for the money when I came to buy cars that range from $60-80,000 each, and I admire him for it. I wanted those fine things, and even though it was not something that made a lot of sense in his life, he realized it made perfect sense in my life. You see, he stopped second-guessing the sale by projecting his life onto customers, and he did a lot more business for it.

You Know Your Market, But Could You Know More?

I am a marketing guy. I work with clients every day who think they know their market. To some degree, they do … they must, or they would not be in business at all. Would it surprise you to hear an opinion that the majority of businesses are really far off the mark where it comes to the most valuable resources for growing their business? This is not just something that struck me today. No, not at all. This is something that I have learned in over two decades of marketing experience and studies.

It is astonishingly true for many companies that a more refined look at their own marketplace is simply impossible from within. They need outside eyes, and new ideas. They do not have the means to reach beyond their microcosm … their little box where they are comfortable. I consider the locker scene from “Men in Black” or “Horton Hears a Who” by Dr. Seuss. These are good examples of not seeing beyond a small microcosm and realizing things from the other side.

Unless a company is enjoying a huge burst of market share increase, they can generally make big improvements. Come on, we can agree on this point, right? Even in instances of a dwindling market, if a business is not growing but yet somebody else in the industry getting bigger, there is some reason. Would you like to guess the most common reason? I hope you guessed marketing, because it is true that if a company reaches the right people, at the right time, with the right message, and there is a sufficient value proposition, their business will grow.

Marketing … really good marketing makes a difference, but that often requires an uncomfortable look beyond what a business thinks. It means thinking outside of themselves. It all sounds simple, but I have seen it a squillion times that a whole room of marketers will all turn pale and their mouths get dry when you show them how wrong they were. Although it often feels like lightning just cracked through the room, the reality is that it is often far more subtle differences that make the big difference.

It means taking the uncomfortable look outside of what you know. It means knowing that if you do not know it, you had better find somebody who does, and is willing to share it with you. It means finding that lightning and bottling it.

In the end, it often means getting a clean set of untarnished eyes to stand outside the box and help drag you out to see what you could not see before. It should not be a surprise to learn that one of the distinct advantages of a marketing consultant it that they are not already contaminated by what cannot be done, or what a client thinks cannot be done.

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The Business of Money, Marriage, and Marketing

Money is a huge topic for businesses and marriage alike, and they are each influenced greatly by psychology. The psychology surrounding money is so profound that many of us lose all sight of why we do the things we do … and why others do the things they do. Losing sight of the power and myths of money will often create a huge confusion and misrepresentation for people in their marketing efforts. Yes, I am tying money, marriage, and marketing all together, and I will not get to the point in only a couple paragraphs, but upbringing and psychology really do have a place here in marketing. Here are just a couple thoughts for your day, and I hope you can find ways to use this.

I could write all day on the topic of people’s psychology surrounding money. Perhaps this is because I have been in business for a while … over 20 years. In that time, I have controlled squillions of dollars. I have seen how even the topic of money makes people squirm. Sales representatives may love to show their product, but when it comes time to ask for the money, it is the scary and uncomfortable moment of “yes” or “no”. Money is a top cause of divorce, and yet, seldom the top cause of happiness. I can say these things about money and back them with statistics, and I can say them from experience, because I demystified it by making a ton of money. I have earned money at rates that would make some countries jealous. I have also lost money at rates that would make most people leave a pucker mark in their seat. I know both sides of the money deal. I also know that overcoming money and doing great things for great purposes and putting the fears away can create even more joy, inspiration, and success than chasing the dollar. I even wrote a great (of course I say “great”) book about creating joy and inspiration. No, I didn’t write it for the money, either.

Basics of Money and Psychology

So, let’s look at the basics first: A business needs money to survive. They use their money to create more money. Of course, without money, a business cannot survive. Tragically, when left to their own devices, many businesses will focus more on what they sell, and forget to properly address this one essential fact: Every decision about money is made by a person. Even decisions coming from the most brilliant boardrooms and teams of financial experts still come down to people. They make decisions the best they can based on information, and some of the most important information comes from their experience. This means that their psychology plays an enormous role in whether they decide to do business with you or not. Regardless of the job role, whether it is as a spouse, executive, or etcetera, they rely on their decisions to please themselves and / or others around them. Making the wrong decision of buying from your company could come in the way of the things they seek. Are you surprised? Probably not, but how much do you consider this in your marketing?

The topic of psychology of money came to mind while I was on the phone with my wife as she was driving home from taking our kids to her parents home for a visit. Our kids will spend about a week with their grandparents, as they do each summer. They will catch toads, get muddy, and ride horses. We will miss them very much, but it is a great adventure for them.

We got to talking about the years we have spent together and the ways our upbringing still influences our companies. We will soon celebrate our eighth wedding anniversary, and we have spent nearly every day of the last ten years together, working, playing, and raising our family. We talked about the way her parents once really doubted our decisions and our ways of being self-employed and owning multiple companies. When we merged two of our companies back in 2001, I recall her parents liking me and hating me at the same time. We spent every dollar we had to build a business and create something big for our future. Her parents have always worked for companies and had a great sense of security from that. They raised their daughter (my wife) to think that way, too. They often did not understand our ways of sacrificing today for tomorrow, and the struggles it would require. I understand how a parent thinks. I have three kids. I want good things for them and I want them to always be secure.

It made me think of two dramatically different psychological approaches to money. There are the kind like them, who feel more secure with other people’s decisions about money. The company will handle all of the money, and they will give the employees their cut, in the form of a paycheck. Then, there is the kind who run the companies, make hard decisions about money for other people, and have what some would consider a risk taker mentality. I was raised by entrepreneurs who never understood the idea of having a job. It rubbed off, and I think working for somebody as an employee would be about the scariest thing. Actually relying on the mood or means of a boss to feed my family spooks the heck out of me. It seems to me that either approach has its risks. Either has its long term and short term advantages and disadvantages. I think most people live their lives in a safe space somewhere between my wife’s parents and my parents. They find a comfort zone that keeps them feeling good.

I say to heck with the comfort zone … you will never experience “spectacular” being comfortable. Your sofa is comfortable, too, but seldom very productive. That is just me … and yes, it gives me that crazy little edge you may have picked up on.

Companies have had a lot of shake-ups in the last couple years. People are doing jobs they never expected to do. Many have entered business ownership against their will or their plans. Markets have changed, and jobs are scary … self-employed or otherwise. Many people react with more caution than ever, and it is hard to call them “wrong” for this. Much of the reaction in a marketplace comes from psychology, and when it involves money, there is sure to be a look-back into their upbringing and the things which made them who they are.

Be careful how you address these matters of money and psychology. You may have to justify your cost more than ever. You may have to develop a more meaningful call to action and a better value proposition. It will make your company stronger and better than ever. It will probably cost money, too. Don’t fight it when it is for your benefit.

Things You Cannot Sell Online

What Cant You Sell Online? — What Can't You Sell Online?

Is it true that there are some things you cannot sell online? I was recently visiting with a gentleman who had made some haphazard attempts to sell online. After his short-sighted efforts, he had developed some doubts about marketing his products and services on the Internet. I think this happens to a lot of people who are unfamiliar with online marketing and had a share of online failure. This gave me some interesting thinking points.

I want to help shatter the myth some people hold that their product or service cannot benefit from targeted online exposure and careful branding. I also want to explain how dreadfully wrong it is to assume that your ideal customers cannot be reached here on the Internet.

I should note that even the items which are not ordered by way of ecommerce are still sold online. Sure, there are restrictions for selling some items online. Examples of things you cannot sell online are certain explosives and illegal drugs. Some products are restricted by location, such as alcoholic beverages, ammunition, and encryption software. This does not mean these are things that can’t be sold online, because there really isn’t anything sold that in some fashion or another is influenced by the Internet. In fact, in the real estate industry it is claimed that over 98 percent of home purchases in USA begin online. A much smaller number of sales are completed online, but the sale begins here, so it is an important place to be.

I feel dismay for companies missing so many opportunities because they just don’t know how much they don’t know. I feel ashamed for the ones who know it and do nothing about it.

In the instance of the gentleman who brought this to mind for me, he was convinced that the only people who will encounter his business online are bargain hunters seeking the lowest cost and do not seek value. I tried to explain that if this is the case online, it is also the case offline, and that those are the same people who turned his salesman down during their last sales call. When the salesman left, the prospective customer went to shop online, and where was he? He was nowhere to be found. I tried to explain the importance of brand recognition, improving customer experience, and gaining customer loyalty. It all kind of escaped his grasp like a greased pig when I explained that you can actually target a marketing message to qualified customers of your choice based on demographics and their propensity to buy your product or service.

I tried to help him better understand the value proposition his company offers, and how to make it more obvious to buyers. I explained that providing a value proposition is important, and that it will not make sense to everybody. It will make sense to some, and those are the ones we call customers. You will never reach them all, but the area you concentrate on are the people you can turn into customers. Then you find out how you did that, and you do it more.

Proof About a Product You Cannot Sell Online

A good web statistics system is great. You can pinpoint exactly who is on your website and what they are doing there. I phoned this gentleman today when I noticed somebody interested in his product offering. They searched Google for the term “where to buy airliner slate”, and they found my recent blog article titled “Smart Slate, Smart Airliner, and Other Interactive Slates“. They even read it for three minutes forty seconds. I called my prospective client on the phone and told him the actual name and location of the company who was searching for the product. I had a hot lead for him to follow up with. He told me “They are a customer of ours” and he gave me the impression that the information was not useful to him. It was almost an arrogant tone he gave me. He laughed it off as a fluke that I actually had one of his customers on my site seeking to buy his product offering.

He did not grasp that this is only one of many instances that can help him to know what is happening in his market, and to potentially avoid losing customers to somebody else. He really didn’t understand how valuable information like this can be when it is not just once, but many instances each day, each week, and each month. It blows my mind that he does not see the advantages the Internet can hold for his market. I mean, people are searching for his products … a lot, but they are finding me. I don’t sell that stuff, he does, and I have showed him the competitive advantages that good data, good targeting, good branding, and a good value proposition can provide. I gave him a tiny little example of this, and explained that it is one of many little advantages that add up to a huge advantage. This was a real case of specific information that could help him avoid losing an existing customer.

Pizza, Porsche, and Proctology Each Sell Here!

You can buy anything from a pizza to a Porsche online, and nearly every imaginable product or service is represented. People have sold items including dog poo, prostitutes, televisions, homes, and even whole cities using the Internet. I have not found an industry segment without an Internet success story to tell. Of course, there is the occasional skeptic who gets in his own way and believes he is the unlucky one who cannot sell his products or improve his market share online. Imagine that dreadful industry that is entirely overlooked by Internet users. It is that sort of product or service that the proprietors believe is only harmed by the Internet, and everything would be fine if all those dreaded websites would just go away. Do you know the type I am talking about?

I met another one like this who did not believe the Internet would provide value to their brand or influence their potential customers. Well, they knew it mattered enough to contact me and even sign a contract, but not enough to pay the bill. Somehow that all looked a bit different to them when they found that thousands of people were seeing this article about them when they searched for “Suture Express“. I had previously given them a clear example of Internet marketing with a real life example showing that people were actually searching to buy Ethicon surgical sutures online. They signed a contract for Internet marketing and SEO services with me and never paid for the services. Later, they thought I was a “kook” when I tried to explain the value of reputation management and taking their Internet reputation more seriously. In this case, they just didn’t realize I am a very smart “kook” with a lot of experience at Internet marketing and reaching the right people with whatever message is appropriate.

It seems that my most common encounters with this type of mentality comes from people who have expressed an interest in improving their online market position, but come to me with all of their own answers instead of wanting the right answers. They are the know-it-all about their market, and even people who specialize in marketing cannot tell them anything they don’t know. Other instances occur when people realize that the Internet is important to their business, but not important enough to do things well.

Their real fears seem to come out once they realize they will actually have to make an investment in their business. They want to know what I know, but they also want to have excuses to avoid paying to get what they want. So, they throw up this smokescreen response that they just don’t see how good branding and greater exposure to their market, and exposure to the people who influence their customers, could ever really be valuable.

Can You Name a Product That Cannot be Sold Online?

Is it the termite farmer? No, termite farmers use the Internet to promote their brand, and yes, to sell termites. If you are in the market to buy termites, you may order termites here. Maybe it is the proctologist? No, although they may not perform your surgery online, a proctologist can grow recognition as an authority in the field of butt medicine. I am having a hard time finding what cannot be sold online, so maybe you can help me in this fun and interesting quest.

I have given you just a glimpse of the mentality of those who get in their own way with believing the myth that their product is exempt from the long list of Internet success stories. Do you have any thoughts on this?

Building Trust Comes First in Business, But How?

I was recently referred to a businessman by a few mutually trusted acquaintances. In total, three different people have come to me suggesting that I could help this man to grow his business. Each of these three people are involved in his personal and professional life in different ways, and each carries a different level of trust. It all got me to thinking a lot about the importance of trust, and what a role it has in business relationships, personal relationships, and how they overlap.

I thought of the trust others had placed in my work and my integrity, and I thought about ways trust is conveyed to others. How to build trust is a tricky topic, at best. There are many factors involved, and it is different to each person. I do not have all the specific answers for this, but here are a few things that came to mind for me. I hope you will enjoy the food for thought.

The First Step to Selling is Trust

The way this really came to me was when the man I was referred to set aside time to meet with me. We will be meeting for the first time tomorrow morning. I asked him how much time we could set aside to visit, because I am often long winded and wanted to know what to expect. I told him that I am not a “pitch man” and that an “elevator presentation” really does not give justice to the work I do. Ironically, a lot of my job has to do with building trust, but I do that online, through branding and delivery of consistent value. In this case, I don’t have a lot of time.

He is a bit cramped for time, so I thought of ways I could present the most important facts right upfront. I considered the specific facts, figures, and projections I could make for marketing his business better. I thought of the “silver bullet” to how I can bring him success with his online marketing. I guess I could just give him the facts, and maybe he would trust those facts … real facts, real numbers, real proof. You can see why I am not a pitch man, right? Yes, I agree … I am not a salesman. He has probably heard all of that before, or if he did the right research, he could certainly ascertain facts, figures, and proof of the things I would tell him.

Once I got to thinking a little deeper about what this man really wants to hear and believe is me. If I do not have his trust, nothing I say will matter … even the best information will be pointless. I could prove how much I know about the Internet, and how I create great visibility to a company. I could show him big profit gains by having a better marketing message. I have that proof on my side, but if I relied on proof alone, it will just fly right on by and at the end of the meeting, we will have both wasted our time. So the challenge is really in how to earn just enough of his trust that he will want to know more … and believe it once I do give him the facts.

Building Trust in an Distrusting World

I started thinking about factors of building trust online. We only have seconds to earn that little bit of trust that makes people want to know more … and believe in us. If we get just a tiny piece of their trust … enough to want to know more, we may get somewhere. Otherwise, we are shot down and we have nothing to show for it. On the Internet, that generally comes with a nice professional looking website, but why? If somebody sees a great website, it is less likely that they wasted their time and money just to throw it all away by trying to rip you off. It conveys some sense of authority.

When I considered this in the offline world, it didn’t really translate so well. Sure, we know that the numbers prove that good looking people earn more money. That is true, but being good looking does not break the trust barrier. There has to be more!

Rapport: Finding Common Threads

I thought of things I know about this man. I guess we could talk about cigars. He likes cigars, too. People like people with common interests. Maybe we could talk about my auto racing … everybody likes fast cars, right? Here is in-car video of me qualifying 7th of 77 at Road America with a top speed of around 170 miles per hour … who wouldn’t like that?! No, this is going nowhere. Rapport, or finding common threads is fine. It can make somebody feel a little more comfortable, but it still does not fill the trust gap. What is the answer? I really want to know.

Honesty and Sincerity: If You Mean it They Can Tell

This is something I guess I have always really tried hard to do. I mean, if you could see the look on my face, you would really know that I mean what I say. I have always been one of those guys who will tell people my sincere thoughts over and above telling them just what they want to hear. I am simply not a schmoozer, and I have always felt like my sincerity and willingness to polarize an audience with what I really think and feel has been an asset to me. Being honest even when it is hard is something I think my father spanked into me at a very young age, and I have been very successful as a result of honesty. It has also caused a few hardships, but it is overall my greatest gift. Some people have a good gauge for honesty, but some do not, so it still does not fill the trust gap. What’s next? There has to be something … some good answer that will make the big difference in trust.

Time and Familiarity Builds Trust … You Trust Grandma, Right?

Maybe grandma is not a perfect example for you, but in general, time and familiarity builds trust. I trust my grandmother implicitly. Over time, people observe others actions and intentions, and with experience, they learn whether they can trust somebody. Time and familiarity are huge factors in trust, but in business, we often only have a moment. Busy business people often do not have time to build trust, either from the buyers’ perspective, or the sellers’ perspective. I have put off sales representatives for over a year before. In fact, one of my largest suppliers took over a year to earn my trust, but I have been a large client to them for over eight years now. Today, that is unlikely to happen, because postponing good business decisions during a recession can sink a company fast. Besides, how many companies will really take the initiative to build trust with you the way this sales rep who called me once a week for a year did?

Referrals Convey Trust

I have written about the value of referrals, and how they can help a business. They shorten the trust gap, because when somebody you trust vouches for somebody else, some of the trust is conveyed. In my case, it seems that about every time I give a business referral, I get a call from the person I referred to say thank you. I guess it happens for two reasons. I am selective, and before I will refer somebody to another business acquaintance or friend, I want to know that they are a good match. When I give a referral, I will convey a huge lot of my influence to be sure that the two parties (referral and referred) will do business together. I almost find myself a bit offended if I give a whole-heartedly earnest referral to somebody and they go elsewhere. It is because I gave a huge piece of my trust, and when my trust is wasted, I don’t like it. I don’t like it one bit.

I have a large collection of reference letters and kind words people have written about me over the years. I could give him a nice leather bound copy of reference letters to show I am trustworthy, but even that is not a perfect answer. There is still more to it than just this … a lot more.

What About the Jaded?

I told my wife I was thinking about and writing about trust. I asked her if she trusts me. I already knew the answer. She clearly trusts me like none other. She trusts me as a husband, father, and provider. Then I asked her how to build trust, and she said “it depends on how jaded the person is.” That makes sense, and it reminded me of something I wrote in one of my books, “Living in the Storm” in the chapter titled “Wins and Losses of Cynicism”. Perhaps we just can’t reach everybody, and some people will just distrust everything. It has to do with the individual’s experiences, and sometimes their own trustworthiness and intentions. It is a lot harder to trust somebody if you have been jaded, or do not feel trustworthy.

A Summary of Trust

I cannot tell you in a single blog article what it takes to build trust. I know, that would be great if I could. One thing I can tell you is that in my job as an Internet marketing consultant, if you are not doing things to convey trust among your marketplace, you are not looking far enough ahead. Trust is a key factor in doing business, online or offline, and the sooner you start, the better.

Building familiarity and authority within your marketplace is never a simple task, but if you never begin the process, you will not receive the benefits. Online social networking is a good start.

I did not come up with all the answers for my meeting tomorrow, but I know that his confidence and trust in me will play a vital role. I hope that my knowledge, history, integrity, and the trust conveyed by others will help.

What do you think? I would enjoy hearing your thoughts on trust. If you are a subscriber to my blog, why did you trust my opinions enough to subscribe? If you are a regular visitor, why do you come back? Does trust play a role in that? My guess is yes.

If Your Blog Was a Sales Rep, Who Would it Be?

When the world spoke to you and said “You should have a blog”, you listened. Well, at least hundreds of millions did. Others may take a while to catch on and understand the many good reasons to blog. Overall, blogging has caught on extremely well in the past few years. Companies understand that a good blog with things people want provides a means to reach more potential customers than any other method. It can create a lot of additional sales. In fact, it can create a lot more sales than any sales representative you’ve got … even the very best of them. It can also make closing the sale a lot easier for the whole company, and greatly reduce marketing overhead. The potential customer has already done the research about what you offer, and if they contact you, they are already mostly sold.

This all begs the question of how your blog will come across to those potential customers. If you look at your blog like it is a sales representative, would it be the sleazy representative you hired and later regret the decision; the representative who makes people’s eyelids heavy and need a nap; or the sharp and clever representative who makes up your top percentile of volume producers? This really all depends on the person or people behind the blog. If you stop looking at it like a “thing” and start looking at it like your top sales representative, it can make a big difference.

Make no mistake! Blogging can create massive exposure to a company, and drive huge success, but it can also fail miserably without a great plan, clever branding, and fantastic content. If you look at it with the potential of becoming your top sales representative, it takes on a whole new feel, doesn’t it? Shouldn’t the people behind the blog have the skills of a master, and not just anybody you can find to produce it for the lowest cost? Really, this is your business front … shouldn’t you take that pretty seriously?

You should have a plan, and I mean a serious strategy to get what you want. What does this mean for you? For me, it means constantly trying to help people with great ideas, branding myself with a touch of snarky humor, and producing enough fantastic content that some of you will say “this guy really knows his stuff and I’ll bet he could help me sell a lot more if I pay him.”

That is my example … but what about you? Here are some questions to ask about whomever you will trust with your online business front. If it is you, these questions become even more challenging, and you should try to be very honest with yourself.

Do you know what readers want?
Do you understand the technology, psychology, mathematics, and creativity necessary to get what you want?
Can you produce the brilliant content it takes to stand out among thousands of worldwide competitors?
Are you able to amass enough readers that you can mathematically predict how many will become customers?
Do you understand the numbers and use them to optimally further your growth?
Can you defend your company’s position against naysayers?
Is online marketing your real job, or it is just another thing you feel you have to do?
Could somebody else do it better, and if so, will they work for you or for your competition?

The list can go on, but this should be enough to think about for now. Take inventory of these things and consider how you stack up. Is the best sales representative on the job?

Will You Get All the Pieces Right?
Do you know how to harness the value of what people want, and how to spread it to the masses? If not, I know a web guy who is for hire, and that can help you with a better call to action.

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Blogs Are Not Created Equal

All blogs are not created equal, and they are as different as the people behind them. Some will create amazing success, and some will be miserable failures. Remembering this and recognizing the marketing talent and creativity of the people behind the blog as the reason for success is important. It can save you a whole lot of time and money to do it right, and not just do it like everybody else.