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Let's think of the steps as puzzle pieces. You must use all the pieces available — in our case, seven pieces — to achieve all the success possible.

Marketing = Advertising






Advertising is merely the first piece of the whole picture necessary to achieve total success. Advertising is a tool in the overall marketing strategy.

We begin in the arena of marketing on the Internet. Most companies will tell you their Internet marketing has been somewhat successful. They have their website up, but it's just not producing the expected results. Why? There is a reason for this limited vs. the full-blown, knock-your-socks-off, money-is-no-object kind of total success. And the reason is: Your website alone - no matter how sophisticated and well-designed it is - is only one piece of the complex marketing puzzle.

Most businesses have been conditioned to stick with those familiar methods of marketing that brought forth success, albeit limited success (along with wasted marketing dollars, we might add). They continue to use what has worked in the past. And why not? After all, Uncle Joe's Five and Dime, with its direct mail and simple coupon campaigns, sent two kids to Harvard. However, as time would show, Uncle Joe's kids learned something through that higher education ůsome very valuable principles about marketing and the technology available in the business world today. We'll discuss that later.

Before the Internet, businesses employed the numbers game (old school) — marketing was used solely to bring traffic into the storefront, and a small percentage of the traffic was converted to sales. When they wanted more sales, they simply did another burst of marketing (advertising).

To better understand this, let's look at the old school method Uncle Joe's Five and Dime used to achieve an increase in sales.

Say a Uncle Joe did a 100,000 piece direct mail which over time has shown this usually resulted in a 1% response rate. So, out of the 100,000 mail pieces sent out, 1,000 people responded and became leads coming into Joe's Five and Dime. Now, the actual number of sales resulting from those 1,000 leads depended on Uncle Joe's sales conversion ratio. Let say Uncle Joe's lead to sales conversion ratio is 5%, the average rate. So, Uncle Joe sold 50 customers.

100,000 mail pieces x 1% response rate = 1,000 leads x 5% conversion to sales ratio = 50 sales.

The result : 200,000 mail pieces x 1% response rate = 2,000 leads x 5% conversion to sales ratio = 100 sales.

What really happened here? Uncle Joe actually doubled his entire advertising cost, and it resulted in another 50 sales. Not bad, but wouldn't it be better to have tripled his sales? Or even quadrupled them — for the same money spent? Of course it would. But that was the numbers game. Old school. Double your marketing (and advertising expense) to double your sales. Even though Uncle Joe increased his sales, nothing else changed. All of Uncle Joe's response rates and conversion to sales ratios stayed the same, and this is why we say limited success was achieved.

Enter The Internet, with new technologies that could change all that. Yet Joe continued the same method in his Internet marketing - only employing the first piece of the whole picture: advertising. For this reason, Uncle Joe will experience the same results, receiving limited sales success from using only the first piece of the whole picture. Over and over again.

Remember Uncle Joe's kids? Well, they graduated from Harvard and came back to the Five and Dime. Yes, at Harvard they learned about the marketing and the technologies available via the Internet. They were taught about all the pieces of the puzzle, and how to put them together. Now let's look at the method Uncle Joe's kids would employ to achieve total sales success while reducing advertising costs.


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