Core Business Solutions Advice

Some business owners have occasionally asked me "How should I balance my efforts between Traditional Marketing and Internet Marketing?

I typically ask them "What's your answer to that question?" Most try to give me percentages of this or that type of marketing that they are trying.

My answer to the question is: Why would you want to balance them at all? Is that wise?

In 2005 a Harris Interactive Poll and a survey by the Public Relations Society of America asked a total of 10,000 people (5,000 Consumers,2,500 Fortune 1000 business people, 2,500 Congressional staffers) this question: Is Traditional Marketing Still Valid? 80% said "Yes" "It still works because people still view them."

Let me be clear that I'm defining Traditional Marketing as Print Mediums of all types, Newspapers, Magazines, Billboards, as well as TV & Radio spots and all various types of mailers, flyer's, Door Hangers, etc. It has been suggested that Traditional Marketing does have some advantages such as:

1. Best way to spread your message locally?
2. Best way to spread your message within a small targeted group?
3. Works Best For Local Retail Offers!!!
4. One Time Local Events/Sales!!
5. Uses a Physical Reminder (Card/Flyer,etc)
6. Reaches Prospects Not Web Connected

To me the most important advantage is #6. Why? Since 2005 Traditional Marketing has declined! To see why, look at these statistics:

• 72% 0f the American population owns or has access to computers connected to the Internet (Jan 2009)
• 28% of the world population has Internet access, but increasing by 10% per year [Jan 2008]
• Internet is the preferred medium to receive/find product info at work/employers [office products catalogs]and second preferred at home to a majority of Americans…..Since 2007
• Americans spend 14 hours per week watching TV- Jan 2009 {Nielsen Ratings}
• Americans spend 14 hours per week online (Google Stats) Jan 2009
• 11 research firms predicted that online ad spending will grow by 12-19% in 2009
• According to a AMA Flash Poll- May 2009- 72% of marketers : “their online marketing budgets will rise or remain the same during the recession"

Online or Internet Marketing has 3 Vital Advantages:

1. It's less costly- a large CPA firm did a cost analysis that showed the typical 1,000 piece traditional marketing campaign cost its clients a $1,450 capital outlay plus the use of from 128 to 184 man hours to produce; an email campaign had no capital outlay and used only 32 man hours to produce. So, $1,450 + up to 184 man-hours vs. $0 + 32 man-hours- seems like a no brainer to me!
2. Better Proof Of Reach- How do you know if someone actually received and read your flyer or mailer or ad in any publication. You have to take it with some blind faith unless you're running some type of coupon required special. But even then you can only count those who brought the coupon to you, not how many actually viewed the coupon or your ad. Internet marketing provides powerful web analytics, traffic tracking programs, real time conversion statistics and you can make real time changes to your campaign to improve it immediately. You'll know who came to your website and what they viewed, how long and the list goes on.
3. Conversion Rate - Traditional Marketing- General Audience Target; If you're looking for potential new customers a 1-2% prospect response is typical; a 5-7% current customer response rate is the norm. But with Internet Marketing your prospect/customer comes to you, customers know what they want and are more likely to be ready to buy!
   The typical conversion rate is higher, as much as 20%.

Another item to consider are the current generations of buyers-

• The Millennials/Gen-Y’s (born 1980- 2000) are 75 million strong!
  
• The Gen-Xer's (born 1964-1979) have about 51 million members
• The Baby Boomers generation (born 1946-1964) are 112 million potential buyers

Please note: Gen Y & X: are only reached consistently through electronic/Internet media marketing. Why? They do not respond to print media as a whole. They are always connected to computers, blackberry's, TV's and using the texting world on their cell phones. [Now you know why the Boston Globe and the NY Times are up for sale and a Seattle newspaper stopped printing & now only produces an internet version of it's paper]

• Plus the Boomers are retiring and their buying power dropping

So to sum this all up, I see there are 6 reasons why Internet Marketing is more effective:

Internet Marketing is More Measurable
A-Brand Awareness is easier to develop & measure based upon website visits/conversions,etc.
B-You'll see what you’re paying for- $ vs. result
C-Traditional Marketing requires lots of trust, did your audience really get it and respond? How do you know?
D-Your ROI is easily determined using real facts and details

Internet Marketers Make Strategic Decisions Based on (Real Time)Facts
A-You can get detailed analytics in Real Time.
B-You'll know how people found your website
C-You'll know what they do once they are on your site?
D-You'll know what people respond to?
E-You'll know what led to your conversations/sales!
F-You can make changes anytime to increase effectiveness!

Internet Marketing Is Better at Reaching Your Target Audience
A-Traditional Marketing can only target based upon a TV station's, Radio station's or Magazine's assumed demographics.
B-Internet Marketing can target small audience groups such as by Zip Code, State, Age, Gender,etc.
C- You'll know your targeted advertising spend!

Internet Marketing is a Constant Source
A- Traditional marketing has a finite shelf life (30 second commercials play & go, print ads get thrown away,etc.)
B- Internet Marketing has a permanent online presence and a good SEO/Web hosting company can provide that for you. Finding the right SEO however is critical to your websites visibility!
C-Prospects/customers can view your information anytime!
D-Search Engines will bring new customers to you who are looking for your product or service. But again effective SEO techniques are a must!
E-Searchers are more predisposed to buy when they find you.

Internet Marketing Provides Better Word-of-Mouth
A-Word of Mouth we all know provides the most likely conversions
B-Social Media Marketing (FaceBook, LinkedIn, Twitter, etc) can provide evangelists of your company or product and can speak virally throughout the world wide web!
C-Word of mouth advertising is a more trusted source of leads than Traditional Ads

Internet Marketing = More Conversions
A-Campaign details can be studied
B- You'll know what’s working & what’s not quickly
C- You have less guessing so you can emphasize what’s working and eliminate what’s not working and always be improving your campaign!
D- You can test new ideas immediately and get instant feedback!

So as you can see the bottom line about Internet Marketing is it's:
1-More Efficient & Effective
2- More Flexible (adjust on the fly)
3- Much Less Expensive
4-Providing Real Time Analytics
5- Giving You Return On Investment Details Immediately

In a few weeks or so I'll cover another subject designed to provide business owners with information they can use to help them work "on" their business.

Until Then Please:

1- Live Simply.

2- Speak Kindly.

3- Care Deeply.

4-Love Generously.

All The Very Best...Always,

Walt Morey -

Executive Business Advisor

Accredited by the Institute for Independent Business

http://www.corebizsolution.com/