Tuesday, March 16, 2010

Making Sense of Marketing Models

Marketing can be bewildering for busy small business owners who wear many hats and are aiming to figure out the most effective marketing strategies while managing their day-to-day businesses. Daily we are bombarded with marketing messages from all directions-television, radio, SMS, internet and print media. The marketing messages may reach us via solicited or unsolicited (spam) channels.
Research on the internet reveals a multitude of marketing models and techniques, each claiming to be the best and most cost-effective one. There is Telemarketing - Bum Marketing - Niche Marketing -- Metaphor Marketing - Guerrilla Marketing - Ambush Marketing - Fusion Marketing and Alliance Marketing to mention a few. Not surprising, more and more people complain about having too much information and choices vs having too little. A working definition of the Marketing Models is provided at the end of this article.

How do you respond to this avalanche of information? Do you feel overwhelmed and do nothing? Or do file the information away for review when you have more time? Maybe that time never comes and you end up not making the decision that could support your business growth.

Marketing Models - What do they have in common? 

In its essence marketing models are a contest for your attention or the attention of your potential clients! They simply can be divided into Permission Marketing and Interruption Marketing Models.
Internet marketing pioneer and founder of Permission Marketing, Seth Godin says, "Advertising just doesn't work as well as it used to - in part because there's so much of it, in part because people have learned to ignore it, in part because the rise of the Net means that companies can go beyond it...we are entering an era that's going to change the way almost everything is marketed to almost everybody." This was in 1999. And while marketing with the rise of the Net has changed, the philosophy of permission marketing is as relevant to small business owners today as it was then.
Mass marketing, based on the Interruption Model, has become less effective because there's too much going on in our lives for us to enjoy being interrupted anymore. Interruption Marketing, however, is still extremely effective when there is not an overflow of interruptions. No doubt, you have your own thoughts and feeling about having your favorite TV show interrupted several times by an advert or your family dinner by Telemarketing calls, or your email inbox overflowing with spam emails. Is it possible that your potential clients have similar thoughts and feelings about your marketing strategy?

The challenge for marketers, Godin argues, is to persuade consumers to volunteer attention - to "raise their hands -- to agree to learn more about a company and its products." This makes perfect sense. He calls the new model "Permission Marketing" because it is built around permission. Permission marketing, he claims, "turns strangers into friends and friends into loyal customers."
Readers' Digest use permission marketing by giving the consumer an opportunity to win prizes in their Sweepstakes in return for the permission to send marketing literature. Another example is your subscription to newsletters.

In the United Kingdom opt-in is required for email marketing, under The Privacy and Electronic Communications (EC Directive) Regulations 2003. This came into force on the 11 December 2003.
Reflect and Act Marketing is a crucial aspect of your business success. If you are like most small business owners you will want to invest your marketing dollar wisely to maximize your marketing results. Permission Marketing is a powerful "be-in-touch, stay-in-touch" targeted relationship building strategy.

To get a better understanding of the effectiveness of your marketing strategies, I invite you to reflect on the following questions:

1. Am I maximizing my marketing opportunities?

2. Do my marketing efforts focus on the segment of the market that is likely to do business with me?

3. Are my marketing strategies based on the Permission Model or the Interruption Model?

4. How do potential clients perceive my marketing strategies? Do they welcome them? Do they create overwhelm?

5. How effective are my current marketing strategies?

6. What is the return on my marketing investment?

7. What is the most effective marketing strategy I can implement today?

To find out how consumers perceive your marketing strategies, I invite you to develop a five question questionnaire to conduct a mail or phone survey of 10-25 potential clients. Awareness is power when combined with effective action.

Marketing Models: Working Definitions

Alliance Marketing: "It's about developing a well-oiled strategy between companies who are doing business with the same prospects on a daily basis but are not competing with each other. It's a strategy that leverages each company's strengths and database for each other while yielding major results at the end of the day." - Matt Tommey

Ambush Marketing - "A deliberate attempt by a business or brand to associate itself with an event in order to gain some of the benefits associated with being an official sponsor without incurring the costs of sponsorship. - Blah La Word Press

Bum Marketing: Also known as article marketing.

Fusion Marketing: Is tying your marketing efforts in with the effort of others. It is a make-everybody-wealthy marketing tactic known in Japan and by guerrillas worldwide. It is also known as Collaborative Marketing. - Jay Conrad Levinson

Guerrilla Marketing: Is high impact low cost marketing.

Interruption Marketing: as the name indicates that each and every marketing strategy interrupts what potential customers are doing in order to get them to think about the marketing message. - Seth Godin

Metaphor Marketing: Is essentially Brand Marketing.

Niche Marketing: Is concentrating all marketing efforts on a small but specific and well defined segment of the population

Permission Marketing: As the name indicates, consumers need to grant you permission to send messages.

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