Guest Opinion: Pursuing Your Potential 'Marketing Perfect Storm'1 Apr, 2011 By: Irv Brechner Response
There are many products and services that have the potential to become “marketing perfect storms” — hugely successful, scalable and highly profitable enterprises, just waiting to happen. With the right management of online and offline marketing tactics, exponential growth is very possible.
A “marketing perfect storm” exists when four specific criteria relating to a company’s product or service are met. When these conditions exist, “symbiotic marketing” can materially power growth and derive high profits in a short period of time. The first three key criteria are:
1. An ideal candidate for DRTV: Appeals to a broad audience; product or service can easily be demonstrated; clear benefits that solve a consumer problem; availability of real and compelling testimonials.
2. A large search inventory on relevant keywords: Consumers are searching on keywords in huge numbers, and the prices of those keywords are reasonable.
3. A recurring revenue stream: Leads to a greater lifetime customer value, and the ability to spend more to acquire customers/members/subscribers in the first place.
The fourth element varies by the type of product or service:
- Online-only service — a friction-less business model: low overhead; high profit margin; little or few hard costs (COGS, shipping, warehousing); and the ability to be run solely on line.Offline service — a national service capability: dealers/resellers in most or all markets; service that’s always in demand; brand recognition.
- Inexpensive product — the right margins and retail distribution: traditional DRTV margins and existing national shelf space.
- Expensive product — the right margins and a superior lead/closing system: ability to handle volumes of leads with offline/online information and close sales efficiently.
When all four components are present, it is worth having a serious discussion about symbiotic marketing, which is the simultaneous use of DRTV and paid search to drive large volumes of customers, revenues and profits.
It’s not just as simple as doing both DRTV and SEM. It’s the ability to do both successfully, with your DRTV media buyers working closely with your SEM team — and that’s just the beginning. Media buying and search are two totally different skill sets, and if you don’t have both, it turns a perfect storm into a drizzle.
In addition to doing media and search right, another major component is to be able to correctly track, allocate and analyze Web activity that results from your DRTV campaign, which usually has three components:
- Phone calls to the toll-free number displayed in the commercial.
- Web visitors to the URL displayed.
- Consumers who don’t call or use the URL, but instead go to Google and type in the company name, product name or other words they hear in the commercial. (We call this “media driven search” and understanding its role is critical.)
Having the potential for a marketing perfect storm, combined with a well thought-out plan of attack, can lead to enormous success in a short period of time.
Irv Brechner is executive vice president and founding partner of Acquirgy. He can be reached at (732) 321-1924 or via E-mail at [email protected]