In Letter No 1 we outlined the basic challenge of Sales and Marketing today – that, due to the rise and development of the Internet things are changing forever.
In this diagram
we highlighted the difference between the Internet based marketing methods and the ” traditional ” marketing methods. We noted ( in the comments ) that there are other marketing methods not identified here e.g. word of mouth marketing, business networking ( attending business networking meetings and other gathering of business people ), television and radio advertising etc. etc. We also mentioned that some of these methods are described ( now ) as ” Push ” marketing and some as ” Pull ” marketing.
One of the problems with the ” traditional ” marketing methods highlighted toward the right of the above diagram ( e.g. print advertising, tradeshows, direct marketing etc ) is that they are expensive and consuming in both time and money. Advertising in traditional print media ( papers, magazines etc. ) is very expensive and it is not just the cost of the actual advertisement it is also the cost,time and skill involved in producing the right advertisement in the first place. Attending Tradeshows is horrendously expensive if ALL the costs are taken into account e.g. not just the cost of the stand space but also the stand itself, supporting marketing materials, staff costs,travel costs, hotel costs etc. etc. Direct mail, telemarketing and traditional P.R. are also expensive ( Internet based P.R. and traditional media PR can be very efficient and effective ).
In addition it is hard to track the returns from some of these marketing investments: How many actual leads or sales did you get from that advertising campaign/tradeshow/direct mail campaign/telemarketing campaign ???????
Furthermore it is getting harder and harder to get results from these methods because e.g. people don’t read print advertising as much; people don’t have time to attend tradeshows; direct mail ends up in the bin because nobody has time to read anything and you can’t get through by phone to the decision makers because they are too busy and have effective filters in place like their secretary or receptionist. Even email campaigns end up in Spam filters.
So it is no real surprise to hear that marketers are shifting their time, efforts and money toward the first 3 or 4 items in the above diagram.
The reasons for this would include:
1. That people are shifting their time online – in various ways and that they get information and buy when they want to and not when you want them to.
2. That the traditional methods are too expensive all around – in time, skill, effort and money.
3. That the traditional methods are not working as well any more mainly because the people are not there any more or are filtering out those efforts.
4. That the old ways are not as easily trackable as the new ways ( you cannot work out the R.O.I. as easily )
So, you must put in place a digital marketing strategy that transitions you from the old world to the new world.
How will be the subject of Letter from Marketing No. 3.