April 2010 - Page 3 of 4 by Mark Murnahan

Marketing Cost vs. Marketing Value

If you make your price the first priority in a cost to value comparison, you may want to reconsider. Cost is a fast way to get a lot of public attention, but it can also provide a negative net return. Showing a low cost has a solid place in some markets, but consider evaluating the cost and value propositions you present to your market. If you are building upon only an audience of “glancing prospects”, you may miss your best customers in the process. What I call glancing prospects are the ones who are out for cost, and that is the primary factor in their decision making. They glance in your direction and give little consideration to anything but how much it will cost. You may like these customers if you are content to offer the lowest cost, but they are also often not return customers or loyal to your brand. It is not just because you didn’t provide value, but because value is not what they were seeking. Thus, they never realized your value.

There are different kinds of buyers in any market, and there are still many who consider value over price. Even while shopping for identical products, many people will consider the value of buying it from somebody they trust or find other benefits from. It takes more effort to find value-shoppers than to find price-shoppers, but they are worth every bit of it. They will be back, and they will tell their friends.

I will use my industry as an example, but it is important to consider this in any industry. I sell marketing. In my case, value is all that really matters. Return on investment (ROI) is what makes sense to my clients. What they spend is not what matters but rather what they will receive for their money … which is more money. Profit is what my clients want, and they will do what it takes to get it. At the same time, I also attract a lot of “glancing prospects” and “lookers” without any intention of seeking value. Do you want to guess which one I consider important? That’s right … I want the ones who want the ROI and look closer to understand the value of my services.

Cheap Marketing and Low Value

Business people are cost-conscious, and more now than ever. Ironically, this often leads them to mistakes that sabotage their business efforts. As a reaction to their fears, companies will often drop their prices and subsequently drop their value. Marketing is the easiest cost to cut, but also the fastest way to reduce profit and go out of business. I watch companies all the time that neglect the value of their marketing, and try to use a cost proposition in place of a value proposition. It is a short-term cashflow bandage that becomes their undoing.

You can call me crazy, but I am smart enough to get dressed before going to the grocery store. In fact, I can be pretty downright bright, on a good day. I guess I am not smart enough to see the “wisdom” in some people’s reasoning of comparing cost above value. Some will try to weigh the cost with value, but often use completely flawed metrics for comparison. I see people all the time who do not understand how dangerous bargain hunting can be when it comes to their marketing, or with other purchases.

How Valuable is Marketing?

Marketing is what makes companies money. Marketing is how customers find companies and companies find customers. Marketing, in some manner or another, is the only way a company will earn a profit. Marketing should not have a net cost, but rather a profit gain. Marketing should be viewed as an investment, and not an expense. Seeking the lowest cost for something so value-driven seems like the absolute absence of logic. Looking for value, on the other hand, is brilliant.

Do People Really Seek Cheap Marketing?

Yes, a lot of people ask questions about the cost of marketing and rates for marketing-related services. At least that is what my website visitor logs show me. Perhaps you see the same in your industry. I am including a list of cost-related things people searched for and found my blog. Some of them are pretty amusing. People even found my blog searching to find how much it costs to join Facebook.

One of the first things a person in my field often hears is “how much will it cost?” I weed these out fast, because when cost is the question and value is secondary, usually the person asking fits into one of two categories as follows:

They do not have enough money to afford quality marketing. If they do not have the money to do things right, they will never be pleased … ever. It is the same kind of client who tries to tell the consultant what to do rather than accept the consultation they pay to receive.
They ask about cost because it is the question they know best. They assume that a lower investment comes with a lower risk, but this is really not the case. This assumption places the value equation completely backward. Without value, the cost of marketing does not matter. It is not worth it at any cost, and can often have disastrous results.

Similarly, in your line of work, you will likely find that if your prospective customers recognize the value of what you offer, they will often find a way to deal with the cost.

Marketing Value and Cost Consideration: Do You Buy Price Tags?

I have never bought a price tag, but I have purchased a lot of things with price tags on them. Sure, some people buy price tags … literal price tags. What I mean is whether you look at an item and decide that you want it and then look at the price tag, or do you look at the price tag to decide whether you want it. Think about your customers and how they may address this same question. Value-seeking customers will decide whether they want or need something, acknowledge that they want or need it, and then look at the price tag. Cost-seeking customers will look at the price tag and if the price is “right” decide whether it was something they were even interested in buying. They love to look, but they hate to part with money more than they enjoy what they receive in return. NOTE: For this customer, the “right” price is highly subjective to poor interpretation.

Cost, Rates, and Value: Lookers Are Everywhere!

Glancing prospects are very easy to lure. I can drag them in by the truckload. Just have a look at these recent searches people performed to land here at my blog, and then consider how many of these I will likely do business with. Don’t get me wrong, because I like when people ask about cost. It is a buying sign and tells me they are in the market. The fact remains that when somebody asks me about cost before understanding value, I normally tell them kindly that they are simply not ready for what I offer. What I offer is profit!

There are enough people asking about cost, but it is funny to find that a comparatively few people ask questions of value. Those are the people I want, and I hope you can see the value in this, too!

Note that my list of “What Cheap People Search For” is based on actual terms people typed into a search engine and clicked on my blog. I couldn’t make this up if I tried. You may not be as amused as I am, but somebody actually wanted to know “how much does a sheep cost” … really, a sheep. Darn, I don’t sell sheep. You can bet that if I did sell sheep, they wouldn’t be cheap sheep.

Write Page Titles That Get Attention

Page titles that get attention are smart, short, and compelling. Without a good page title, the rest loses importance. If you want to write a page title that works, stop using so many words. Write like you want it to be read.

I am a conversational writer, and I use too many words. I write books and long blog articles. You use too many words, too. Most of us use too many words. We make sentences too long. If we word-it-up, we (think we) seem smarter.

Page Titles Get Clicked

Page titles are a top priority for SEO. Titles are indexed, and page titles are what people click to read the rest. Practice writing page titles. Write it in fewer words if you can. Make it easy to understand.

Try using Twitter if you need practice.

Stop using too many words.

Topeka Kansas Car Dealer Social Media Marketing Case Study

Car dealers are infamous for their marketing short-sightedness, so they make a great social media example. New and used car sales organizations live or die in short bursts of business, and it creates huge anxiety for them – but this is not just about car dealers. This principle applies to many industries. I’m just using our auto-peddling worst nightmare as an example so we can all relate.

In the auto dealer scenario, as with many other retail industries, the inventory is often financed using a “floor plan”, and if the inventory is not selling, the bank will make it very uncomfortable for them. This creates a challenge that is not so unlike the urgency felt in any other businesses. The sales must keep coming, or somebody is going to need some creative answers.

It causes a lot of companies to focus more closely on an eight percent increase in new business and overlook the eighty percent increase they could achieve if they look ahead and give people reasons to buy from them.

Topeka, Kansas has fourteen pages of car dealers and related automotive ads in the telephone book Yellow Pages. I had to ask my wife if we have a telephone book, and I was delighted to find that we actually do. I do not know how many car dealers still advertise in the Topeka newspaper, because I do not subscribe. The last time I saw a newspaper, it was a lot thinner than it used to be. The auto industry was hit hard by the economy in the last few years, and car dealers sought a better way to reach their market, just like everybody else.

It is not surprising that there are at least half as many results for car dealers in Topeka, Kansas returned in a Google search than there are residents of Topeka. A car dealer without a website would be like a car dealer without cars for sale.

Everybody knows that the Internet is where people buy things, right? The automotive industry caught on, and all of the sudden the job of Internet marketing shifted from the part-time receptionist to the “Internet Sales Manager”. That is often the fancy title for the guy who fiddles with a computer all day and tries to sell cars online. He emails his buddies and asks them to come and test drive a car, just so he looks busier. He is afraid for his job, and it is really important to show the boss that the Internet is a good investment.

After a few more doughnuts, he will put the latest finance rates on Facebook. After lunch, he will plan to tell Twitter users how he can save them a ton of money if they get there for the big tent sale this weekend. The successful car dealers are on Facebook. At least that is what they said at the last Car Dealer Internet Sales Manager’s Convention. Wait, maybe it was LinkedIn … I forget. In any case, getting the latest advertised specials out to the people is of the highest importance, right?

This Marketing Style is Not Limited to Car Dealers

This mentality is not only about car dealers, so make no mistake. I am just using them as a fun example. If you read carefully and think about this, you can probably relate it to many other industries.

What drives me absolutely crazy is that I watch far too many companies treat their business like my example of the Internet Sales Manager urgently trying to get the boss off his back. They do all that they know to make their advertising visible and be sure that everybody knows their name when they are looking for a car.

Companies frantically try to shorten their sales funnel while the importance of brand recognition and brand loyalty lose ground to immediate needs.

You could blame the Internet Sales Manager, but much of his focus is imposed by managers above him, the general manager, or dealership owner. Dealers are car guys, not marketing guys, and not Web Guys. Under the pressure of a competitive market, they completely lose sight of what motivates people to buy things.

Following the car dealer theme, many companies will look at the Internet the way they look at the big inflatable gorilla and colorful balloons dealerships put out on Saturdays to make passing traffic do a double-take (and if they are lucky, crash their car right out front). These are all fine and dandy, but they lack the sustainable value of social media.

These are the companies you see with a Facebook Profile instead of a Facebook Page, think Digg refers to an arcade game by Namco, and never understood the reasons to blog.

These companies usually have about 90 friends on Facebook and perhaps 14 Twitter friends to tweet stuff to. They are so wrapped up with search engine optimization (SEO) that they never understood how SEO and social media are inextricably paired with the more challenging factors of understanding what their customers want, need, expect, deserve, and demand.

They neglect that social media makes SEO a whole lot easier and more effective. They do it the hard way and just know that with enough SEO, the Internet will deliver more hot leads and they will sell more cars – and it will, but it lacks forethought.

They try to learn from their peers who are making the same mistakes, and then wonder why it did not work – while overlooking what their customers are already trying to teach them.

Is Your “Car Dealership” Being Creative?

Thinking is often underrated and undervalued. Marketing takes a lot of effort, and the numbers matter. What you do with the numbers also matters. Instead of just looking forward to the next email blast or rewriting your h1 tags, it may be useful to think about a social media strategy.

Everybody is using tactics, but strategy takes real marketing talent, creativity, and looking beyond the next 30 days. It takes guts, and regardless what others tell you is an easy fix, guts are where success grows.

Consider your own examples in place of the car dealership. Have you thought about why people love their cars? Have you considered holding a poker run with your Facebook fans and friends? Have you thought how cool it would be to integrate Foursquare when you do a scavenger hunt with potential buyers? Have you ever thought of holding a ride-along with a race car driver at your local race track? Did you ever consider that you could build more incoming links if you were the first to craft a story about something important to your industry … important to the people who care about your industry? Did you ever think to monitor social media to see if somebody is talking about your dealership, your products, or your industry?

Do you ever wonder what happens if your competition gets it right first?

I started thinking about this after two different instances of friends in the automotive industry who told me of two different car dealerships in the Topeka area in need of a better marketing plan. I looked at their online efforts and found lack of strategy. It appeared that they approach their online efforts and offline efforts as two completely divergent markets, rather than integrating them. Although there were some pretty websites, they were hard to navigate and lacking a call to action. Worse yet, they display their companies about as interesting as a car salesman in a leisure suit rushing across the lot to shake my hand.

Maybe it is time for me to perform a social media and SEO case study on a Topeka, Kansas car dealer. I think it could be really interesting to share what would happen when one of them led the way. On the other hand, in Topeka, we have what I see as the worst stereotype of car dealers. I would probably do better to poke my eyes out with a Chevy bumper than try and explain something car dealers refuse to hear.

Save your dealership – stop acting like a car dealer!

To Car Dealers: Car dealers always express urgency to buy today, so let’s spin the table and see how urgent you are about increasing your car dealership’s profit using effective social media and SEO. Subscribe to my blog today and I’ll let you read it for $0 down and $0 per month.

UPDATE: I have a funny update to this blog post. Shortly after publishing this, I received a call from a Topeka area car dealer who was referred to my services. The man on the other end of the line wanted to hire me to actually work for and work at the dealership … selling cars. It seems that somebody bumped their head … really hard.

I told him what I do (marketing consulting), and he kind of had that “duh, I don’t understand” glazed over effect. Many people just don’t understand that they will not improve their dealership’s new and used car sales volume until they stop trying to sell cars the way their father, and his father sold cars.

The world has changed, and car dealers seem to think they can hold back the change. This is why so many of them are going out of business. They do not want good advice. They just want another person to explain how “right” they are. It is a sad loss for them.

Brandon’s Baseball Cards and Google SEO Starter Guide

Did you know that Google will help you to have better results in their search engine? Google provides useful advice on how to improve a website’s search engine ranking, and they did it with Brandon’s Baseball Cards. If you have never heard about Brandon or the example Google made with his baseball cards, I would not be surprised. There is a lot of information on the Internet, and it can be hard to take it all in. The information Google provides to explain search engine optimization is worth the time it will take to read and take notes. This is especially true if you are going to try do-it-yourself search engine optimization (DIY SEO) for the first time.

Google Wants to Index Your Site

Google wants to include your website in their index, and for good reason. When you can find anything and everything you ever want to know at Google.com, it is good for their company. This is how Google maintains its ranking as the number one search engine. Being the perfect go-to source for information is what drives Google’s AdWords advertising sales up, and keeps their market share strong. The biggest challenges website owners face mirror the challenges Google faces, and are as follows:

Billions of Competing Web Pages
Providing High-Quality Information

Google works very hard to provide the best results when users search the Internet. If your website is not among the top results, it is not because Google is out to kill your business, but mostly that somebody else had more relevant and easier to index information.

Google Will Help You With SEO

The efforts Google has made to help people better understand their search engine is not a secret. Any decent search engine optimizer (SEO) is aware of Google Webmaster Tools and Google’s Search Engine Optimizer Starter Guide. Most SEO will be happy to share the information with you just as I am here. A good SEO will be glad to know their clients have read the information so they understand the job we do. An informed client will understand the value of SEO work, and is less likely to fall asleep when we talk.

If you put this information to good use, and you do not try to cheat Google’s well-formed system, your Google ranking will improve and your website will receive more traffic. Better yet, it will receive more relevant traffic because people will be finding your site based on exactly what they search for. It will cost you nothing but your time and attention, but what it can return is extremely beneficial to your business. Now that I put it this way, wouldn’t it really seem crazy to neglect it? Really, this is free exposure to your business using the number one way that people find businesses to buy from. Doesn’t it seem like that is worthwhile? I believe your answer is yes, but you may be wondering what this has to do with Brandon’s Baseball Cards, so I will get to that.

Brandon’s Baseball Cards and Search Engine Optimization

If you do not already know what Brandon’s Baseball Cards has to do with SEO, it is only because you did not read “Google’s Search Engine Optimizer Starter Guide” yet. It is only 22 pages in length and I really hope you will take some time to read it. Even if you are a professional SEO, the information contained in the document may just be what your next client needs to help them understand how you can help them.

Since I know some of you will never take my advice and read the SEO starter guide, I will let the cat out of the bag. Brandon’s Baseball Cards is the product Google used in its examples. Go ahead and see what is at brandonsbaseballcards.com. If you did not guess, it goes to Google.com.

What Google Didn’t Mention

The information Google provides about SEO is very important, but it is not everything. There is not a single element that will place your link at the top of every search results page. If there was an easy fix, everybody would be doing it. Effective SEO requires marketing talent, and it is a mix of both art and science. If I could condense all that you need to know into a list of SEO lessons and make it simple, I would do that. As it is, there are still a lot of important tasks that a professional SEO performs. Two search engine optimizers will never achieve the exact same results, and implementation of SEO skills will vary. There is only one position at the top, and I hope to see you there. If you need help with that, ring me any time at *REDACTED DUE TO AGING WEBSITE* (*REDACTED DUE TO AGING WEBSITE*).

Just one more thing: Can you name the baseball player pictured above? Add your guess in the comments!

SEO Directory Submissions and Pink Ponies For Sale

Sometimes I wonder how pink ponies became so popular in today’s Internet marketing world. Then again, I guess I should stop wondering. People just love buying pink ponies and fairy dust. It is a shame, but when I look around the Internet and talk to people, I have to believe it is true. They think there is a magical fix for their dwindling or less-than-stratospheric profit levels.

Pink Pony Rental: $180 Per Month

I do not like to call people stupid. I try to inform them, instead. It usually doesn’t work, because the majority of people really love pink ponies, fairy dust, and all the other Internet marketing magic that gets sprinkled into their eyes every day. I can only try my best to save one or two of you.

I see a lot of “SEO companies” (that’s search engine optimization for the record) offering packages for placing companies at the top of search engines for search terms. The packages often consist of submission to a squillion search engines and directories, building incoming links to the client’s website, and a bunch of other magical fairy dust. Some of them will say their magic potion includes creating h1 tags (Google h1 tags and see where my article about h1 tags is), meta tags (serious, this is a joke) and HTML title tags (sure, that is all it takes).

What bothers me is how hard some people’s heads are when you try to explain that pink ponies and fairy dust are just ways that pretend SEO companies take people’s money and then leave them thinking that this whole Internet thing is a big unicorn chase. I hope this is not the case with you, but based on the numbers … the real hard facts … you probably have a lot of room for pink pony rentals deep in your heart. If you keep reading, I am going to smash some pink ponies into tiny little bits and eat them. This is not for the faint of heart.

Maybe you believe in magic, and you aren’t ready to put down your “My Little Pony” doll. Fine, but maybe you should mark your calendar for a good time to have somebody pop that bubble for you and help you to do things that actually work. You know, things that actually increase your profit and create more sales. If you are in business, profit is what you need, right? Not precious little pink ponies and fairy dust. Just in case you are not ready or you are in SEO relapse, I will give you a fun little pony video to look at while your competition continues reading and takes away some more of your profit.

SEO Magic Takes Research, Targeting, and Talent

Call it “SEO magic” if you like, but real Internet marketing and SEO takes research. Real research … the kind that compiles real data and has a focus on real results. You do not get that with an out of the box SEO service offering … for any price.

Once the research is done, online marketing success requires a targeted approach to reaching the right audience. The research tells who the audience is, but knowing where to find them and targeting their attention is another task. This is often skipped and companies end up with the equivalent of trying to sell knitting needles to race car drivers. Is that the right audience to spend your money marketing toward?

When you understand who and where the audience is, it takes marketing talent (yes, you should click on the link about marketing talent) to convert those lookers into buyers. This is the artistic part of SEO and Internet marketing, and an important piece. If you get this part wrong, you can just drop a signed blank check in Times Square right now. Your money is wasted … gone … poof … it disappeared!

After these things are handled, it takes more research and understanding the marketing data to know where to focus the next efforts. When you discover what works, it is time to keep doing it, only better than before. That is what takes profit into orbit.

Oh, and I probably should not leave out the huge fact that it takes a website that does not suck. Here, read a story about a $150,000 website that sucks.

When you think about these things, maybe you can drop me a comment to tell me how stupid I am for never submitting this blog to any directory other than DMOZ. Maybe you don’t know what DMOZ is. Well, the pink pony salesman probably doesn’t either. He probably does not have thousands of incoming links pointing at his site, either. That is because most SEO fail at link building.

Real SEO Providers Eat Pink Ponies

I was talking to one of my SEO buddies yesterday as we dined on some pink pony burgers. He was telling me of a prospective client who came to him for search engine optimization. The man had a great product and wanted my pony munching friend to perform some search engine marketing for him. My friend, who had no reason to lie to me about this, told me he could make this guy’s product a smash hit. I mean, the way he described it, he could have sent this guys profits into orbit. A serious SEO guy knows when they can totally smash a market, by the way. We have research on our side.

My friend went on to tell me that after talking to this guy a bit, the potential client said he could spend $180 per month to sell his machines. Where in the heck did this guy get the figure of $180 and what kind of pink pony did this guy smoke? Seriously, a $180 per month budget to make a serious impact in his company’s profits? Is this really what people think we SEO people do? Do people really think that a person who can send their profit into orbit is going to live on minimum wage? Wow, so the one person who can truly make the biggest impact on company sales volume is worth all of $180 to the company?!

What really made us taste our partially digested pony burgers was that a lot of people think the same way. They have it in their head that there is some automated magical fix for marketing success. They think that the same thing that will work for a car dealer should work for an accident attorney, a construction company, and a real estate developer. The industry of Internet marketing has deteriorated into a pack of thieves who pick the bones of desperate companies who really so badly want to believe that there is one single magic pill they can buy over the counter and fix everything that ails them.

Those machines my buddy spoke about sell for a minimum of $14,000 and included a good profit margin, by the way. So, anyway, it kind of made us both gag on our pink pony burgers and face the fact that most people are really not ready to take their market seriously. They are not ready to push their marketing go button.

People Don’t Want the Truth: They Want Pink Ponies!

This all got me to realizing that people don’t really want to hear the truth. I have become pretty popular for telling people what they need to hear instead of what they want to hear. The crazy thing is that they may like to hear the real truth once in a while, but it is like watching a horror movie. It is like entertainment, but it could never happen in real life. Like Hollywood. They like hearing how their Internet marketing guy made millions of dollars conquering a market. What is sad about this is that the Internet marketers who actually have earned millions upon millions of dollars for themselves and their clients (yes, like me) are the guys you really don’t want to hear from, because we will pop the bubble you ride upon and give you the truth. We make fun of those guys. See … here I am in a video making fun of them, while subtly showing you that I am not full of pink pony poo and actually have been doing this successfully enough and long enough to buy a few toys of my own. Yeah, I didn’t do that selling pony poo … I did it making my clients a whole lot of profit!

Anybody who is tired of renting pink ponies and watching money slip away, what you really need is a pony slaying marketer. The presentation may be a bit crusty and abrasive for some people’s taste, but there is a reason serious pony killing search engine optimizers hang up the phone when people ask for a price before they even consider the real reason they called … the profit!

NOTE: If you like buying pink ponies, save us both the trouble and just drop me $180 per month in the mail. It will help me to cover my $1000 coffee expense while I work 25 hours per day to crush companies who try to compete with my clients.