Budgeting for Marketing Activities – 5

Assumptions, B2B, budget, campaign, Marketing, Marketing Stamina, media, single target market

In the last 4 posts we started with nothing but a napkin and created a rough budget that you can spend every month so that you can hit your target of 10 leads.

While most people you talk to will say Maths is tough, here it’s the reverse. Making 5he budget using math is the easy part. But even if you spend $1600/- on Google or Facebook every month (to understandwhere this has come from, read the 4th part of the post on this topic) , you won’t get leads and you may end the year with no orders but $25000/- gone.

The reason for that , whether you’re using LinkedIn or Google or print ads, these are all only media at the end of the day. Someone has to respond to your ads. If no one responds to the ads then you don’t get the leads.

So you have to test for two things here – if the media is right and if the message is right. My assumption is that you have defined your single target market earlier. If not, then that will be the first step.

Not everyone is comfortable, or using the same media. Some people maybe more comfortable with LinkedIn and not okay with Facebook. In some cases the media you are wanting to use, may not have the ability to target the people who are in your Single Target Market.

Next you have to test your ads to see what gets people to click or respond to an advertisement. You have to change them until you start seeing a response. Then you need to make changes keeping the one that’s getting you a response as the benchmark, or what is called as the “control ” in copyrighting circles.

In marketing there’s no such thing as failure, its all about experiments. So you keep testing various hypothesis till you are able to figure out the best combination of media and message for your market.

Till next time then.

Carpe Diem!!!

Finding the right market niche

Marketing, niche, single target market

Today I had an interesting discussion on choosing the right niche or the Single Target Market that I keep mentioning with one of my colleagues and she was not convinced on my logic. So I will throw this open to your comments. I will give my logic and my colleagues logic. In marketing there’s nothing right or wrong. The market decides. You try to go with as much common sense and logic.

We will discuss it by using an analogy of the Indian automotive market. The Indian passenger transport market for personal travel is primarily broken down into two wheelers and four wheelers. The two wheelers are scooters and motorcycles and then you have cars which start from 800CC engines all the way to the Bentley and Rolls Royce.

Suppose the product we have is a 1000CC engine car which is more expensive than the 800CC car (not our product) by almost 40%-100% and is more expensive than the general two wheeler by about 10 times.

So who should be the customer you should target. Someone who has an existing 800CC car and wants to upgrade in life because the car has got old or should we target the person who owns a scooter or a motorcycle and wants to upgrade in life because the family has grown and they can now afford to buy a car.

My suggestion would be to look at the person who already has a 800CC car and suggest our product as an additional car or an upgrade from the old car. My colleague’s logic was that there’s a much larger market which is driving two wheelers and if we can convince them to move to our product rather than to the 800CC car we would be able to target a much larger market even though it will be a tougher sale to crack

I would love to hear your comments below on what you think we should do out of the two options or if you can think of a third option.

Till next time then.

Carpe Diem!!!

80/20 for digital consumption

Focus, Leverage, Marketing, Product Management, single target market

I write quite often about leverage, using the 80/20 principle or its other fractal dimensions 64/4 etc. I am regularly trying to figure out more points of leverage so that I can become more effective and see how it plays out even in my practice of marketing.

I consume a lot of content through podcasts and I subscribe to a considerable number of them. Today while seeing my pattern of consumption of content from these podcasts, I realized that I predominantly end up with only 3-4 of them and within those also the primary ones are the Ilovemarketing.com podcast with Dean Jackson and Joe Polish and the Morecheeselesswhiskers.com podcast with Dean Jackson.

This is the true fractal nature of 80/20 where just these two podcasts are utilized by me for a major portion of my listening even though I subscribe to 15 or 16 of them.

If I look at at my consumption of digital entertainment platforms – Netflix, Amazon Prime, Disney etc. I have a subscription for maybe 10-12 of these platforms but I end up primarily on just Netflix or Prime.

Again concentration on consuming through a few platforms for a majority of the portion of my time.

The internet has created a level playing field in a lot of areas and the “long tail” impact exists where even small players get a chance to play.

On the other hand from a marketer’s perspective for you to be able to dominate a market therefore you have to be able to choose a very fine niche so that, for that category you can become the top player so that by default people have to use you.

There’s massive leverage in choosing a very small niche and then moving into other adjacent categories. As a product manager if you operate in the digital consumption category, you should be leveraging on this instead of trying to be everything to everyone.

Till next time then

Carpe Diem!!!

The advantages of a Single Target Market

B2B, Marketing, Product Management, segmentation, single target market

Once you have identified your niche and segmented the market by usage, you may be left with a very small portion of the overall market which you had originally thought.

In context of the B2B space you should at least have a bundle of around 100 accounts to start out , as your minimum economically viable market,  to test your offerings. You can build this to a maximum of a thousand. Anything more will be unmanageable if you’re a small company.

Once you start of with this bundle of 100 accounts,  you get to learn and adapt your offerings extremely quickly.  Within these 100 if you keep sustained education based marketing,  you will be able to create a “brand” for yourself. While B2B marketing is a slow process because of the inherent inertia of a complex structure like an organisation, you can also be sure that within a typical period of 3-5 years 50% of these prospects will be looking for a new vendor for the services you offer.

Once you’re able to get into a conversation with one prospect,  you can quickly identify the challenges and mould your future communication with the new understanding.  As you grow, your interactions, your learning compounds at a much faster rate because all the prospects are similar in nature. So the challenges they face could be similar and the solutions that you deploy can also be deployed faster.

Which helps you reach critical mass faster and you’re able to quickly dominate that market before moving to th we next market.

Till next time then .

Carpe Diem!!!