fotolia_6014222_xs_2 A short while ago Eben Pagan did a Private Marketing Seminar.

It was called Modern Marketing Mastery. Here are the notes from Session One of Four.

Hope you enjoy. Let me know in the comments section below. ____________________________________________________

Understanding the perspective of the other person, understand how they think, understand the words they use to describe things, and then communicate with them using THEIR favorite communication not YOUR favorite communication.

Start listening behind the words, start listening for what people are really saying – listening for their emotional drives, their motivations, their

fears, their frustrations, their wants, where they’re trying to go…being understood and someone who really wants to understand…offering the products/services that help them get the results they’re looking for

The best products/services market themselves…people are buying buying a result, an outcome, delivery from some pain/anxiety their feeling…product/service is a means to an end they’re seeking…talk about the product/service VS “I understand the outcome you’re trying to achieve, I understand your fear/frustration/pain, I understand what you want to be delivered from – and I’ve created something that if you use this it will deliver you, it will get you to here, it’s a means’ …and keep talking about them and their needs and how your product will deliver what they want. It’s not about you and your product, it’s about them and the outcome that they’re seeking. Until you get that you must stop talking about how great you and your product are/is, and until you get that you must start talking about them and their needs and the results or outcome they want or benefit they’re seeking, you’ll be banging your head against a wall.

Ultimately you build the marketing INTO the product/service. So when they see the product/service, on it’s face they see it’s what they need to solve their problem. Then marketing and selling becomes easier as all you’re saying is “I understand your needs and this is what will deliver the result you’re looking for”

Innovation – something that’s new, better, and different BUT ALSO something that solves a problem/delivers a result/gets a customer the outcome they want that wasn’t available previously
Marketing – connecting with those people and showing them you have stuff that solves their problems, explaining it, and helping them to buy it

MARKETING AND INNOVATION ARE ALL THAT MATTER – you can hire people for the rest of the stuff

…just because you did something doesn’t mean you deserve the money

Becoming a powerful marketer that then takes what they’ve learned about marketing, psychology, understanding the customer and uses that to fuel innovation. Because the expert marketer that innovates creates innovations people want to buy because the marketings built right in.

Marketing russian roulette
1. copying everything from others
2. knowing what you like and creating original things you like
…trying to copy others and create your own marketing and not knowing WHY you’re doing what you’re doing and copying blindly means not having a long term strategy that will get you anywhere…

…it’s not about getting your name out there, it’s about getting their name in here…yelling your name from a mountaintop is not a useful startup strategy…
getting their name in here is about: finding your audience, finding your market, get infront of them, understand their needs, and then communicate clearly that your product/service/the thing that you offer will deliver them to the promise land will help them get the result/the outcome/the delivery from the fear the anxiety the pain they seek at a fair price and you’ll make an offer to do it.

(sidenote algorithm: Find -> Understand -> Found -> Understood -> Fair Offer -> Transfer)

MARKETING IS ABOUT CONVERSION, NOT ABOUT COMMUNICATION

You’re not trying to communicate with people, you’re trying to get them to come in and convert and give you money in exchange for what it is you’re trying to sell

Your Market, Your Model, Your Strategy…these are more important than things like the words written at the top of your ad

What is your market?
The people you sell stuff to/The target market + Products/services you sell
Put those together you got people that need stuff and stuff they need and they’re buying it, and that creates a market.
Narrowing your focus, creating a category, dominating your niche – very important elements, you have to understand your market

Your Strategy?
Your psychological approach. It’s not what you’re doing but how you’re doing it. The methodology, the philosophy you’re using to get there. Are you the best in your market? The cheapest? The unique new solution that wasn’t available before? Being all things to all people is a fundamental mistake. Talking to everyone except the person that needs or wants our product the most and talking just to them.

Your Model?
How all the puzzle pieces fit together. It’s the marketing channel you market through (i.e. print, TV), how you generate a lead or a prospect, how you convert it to a sale, how you follow up, how you upsell someone to the next product/service while they’re purchasing, all these steps in a spreadsheet in a real model with metrics so you can see how they affect each other and how they influence each other, and how if you grow it will scale and how the numbers will change – and as you grow putting these together in a model you can see a diagram of and show how they all affect each other and how you pour all the leads in the top how they all come out and how the money comes out and how the ROI looks so you have a business.

Some models?

-Retail distribution (you create the product you find the distributors retail outlets you got to them and say “sell this thing and I’ll support it with my marketing and I’ll give you the product and you got a lot of foot traffic and you got the customers so we’ll put it there”)
-Subscription (i.e. magazines, book of the month – more of a long term model trying to get someone into the beginning and get them to subscribe so you can sell them many things with one sale)
-Infomercial models (not really about selling the thing on the infomercial as it’s just a loss leader designed to get you to call cause you’re hot to buy and then they sell you a bunch of other things i.e. don lapre $100 mil not making money from the toolkit but upselling to merchant accounts and biz ops etc)
-Dell computer model (get lead to come to website with all your lead gen stuff and person starts build their dream computer and selecting all the parts and psychologically in the process they weave themselves into it and they start to own this thing that they’re creating and by the time you get to the end you’ve built this computer you want and you got it all ready and you can see it and imagine it and say ‘well I got to buy it’)
-Windows OS model (they find a distributor like Dell that sells millions of computers they make wholesale deals with them to put windows on their computer that is going out the door and they do that for several years and the next thing you know everyone is using that OS and everyone starts upgrading to get new versions and new software won’t run on the old versions and rather than buying a new version they buy a whole new computer that already has the new version of windows and it’s a virtuous cycle – IT’S A MARKETING MODEL)
-Affiliate marketing (sell something, allow tens of thousands to be distributors and they drive leads that buy it, cut cheque to them, get third party tracking and measuring and paying the cheques and doing the whole thing, and you just get a report)
-Social Networking/Social Media (places people come to do virtually what they used to do in the real world virtualizing human interaction, and they can interact with your business in all sorts of ways)

The best models typically have 1 thing in common: They’re not trying to sell 1 thing in 1 shot. There’s upsells, there’s backend, there’s continuity, there are other products, there’s a long term life time value model.

Marketing is not “I’m going to create a great ad and it’ll make all the money for me”, but marketing is “building a long term relationship with a prospect and selling them one thing after another after another after another to help them get the results they’re looking for”

Brand based marketing
Direct response marketing
Hope based marketing

…figure out what people want to buy and give a little of what they want to buy/result they want, give that little bit away for free, and have the next part something they buy…

Strategies:

* Be the best: highest quality, flawless experience, high status, conspicuous consumption, pride of spending, image, you are the gold standard (i.e. rolex, apple, ferrari, 4 seasons, whole foods market, virgin atlantic) … you premium price/high profits as you have that whole segment to yourself and people will pay a lot more, you become visible to highest spending customers quickly and you can corner the market – but perfection is expected and your competing with the experience those other brands deliver and expensive to deliver the gold standard premium experience

* The Cheapest/Best Value: lowest cost, best value (i.e. walmart with exploiting technology to attain efficiencies and just being better faster more on top of their game, southwest, home depot, staples, mcdonalds, dell) if you can achieve high volume and dominate the market then the volume can make huge amounts of money, it’s a no brainer strategy that you can yell from the treetops and you will attract people, and it’s easy for your company and team as you just tell them ‘we need the lowest price that’s how we stay in business’ so it keeps you aligned – but it’s a tricky game that if you compete on price and someone shows up and can do it at a better price your margin is thin and will be hard to compete (i.e. china wiping out sectors of industry i.e. importing steel even with all shipping costs is still cheaper from china than here) big companies that own the market and don’t want you taking any doing 1000x the business you’re doing can tweak the prices a bit and make it painful for you

* The New Unique Solution/The New Category: you create this new category not out in reality but in the mind of the prospect and you’re going to become a new niche expert as you will create the niche and then become an expert in it, this is the land of zero competition and you can set your own prices because when you’re the only one offering the product as far as the prospect is concerned then they need to pay what is reasonable to pay and if you can persuade them you have the value then you can persuade them it’s worth paying whatever you want them paying…if it’s a hit you can parlay and develop it into “the best” strategy cause you created the category and you can morph or evolve into the owner of the market (i.e. Ipod, Jamba juice, myspace, google, altitude, double your dating) – google didn’t create the search engine category? IN THE MINDS OF ALL THE PEOPLE THAT USE IT, THEY DID. Who invented the search engine? Ask the average person and they say ‘google’. Did Apple invent the Mp3 player or portable Ipod? No. Do you think most people that own them think they did? Yes. Why? BECAUSE THEY CREATED A NEW CATEGORY IN THE MIND OF THE PROSPECT. The challenge here is it requires you spending time to get to know your customers, finding out where they have a pain problem frustration a result they want to achieve, that they don’t feel like they have any options – and then you can address that with a new niche you can create. This strategy allows you to compete with big well funded players. It allows you to jump in, charge premium prices, and create your own category. Competitors lump you in with everything else, but as far as the customers are concerned the customers are getting something new different and better. The downside of this is it requires legwork, thinking, and experimentation. If you’re creating something new, it means you’re blazing your own trail, your on path no one has taken. You’re not walking down the trail a lot of animals have taken for 100s of years, you’ve got to find your own way.

Marketing Channels: the frequencies, the wavelengths, the pipes you’re going to use to reach a mass audience. You’re going to have to reach a lot of people and use some mass marketing channel to do that.

* Cold marketing/Canvassing: outbound telemarketing, door to door
* Blind direct mail: mail to a zip code
* Traditional mass marketing/media: buying inclusion, being included with the broadcast message that’s going out to a lot of people, buying a little ad in the newyork times (it’s going out to millions of people and you know you’re going to get included and ride along) Another example might be placing an advertising on a show a million people watch – you know it’s getting to a million people, you’re just going to get in there and jump infront of them…another is a banner ad placed on a mass media site, they’ve a million people and you know it and your banner is going to show up infront of a lot of people…Broadcast… just sending it out there, PR, trade shows (lots of traffic and hoping you meet your prospect), basic affiliate marketing where you make a product and just put it on an affiliate network and hope a bunch of people pick it up, Maybe email such as coreg databases with millions of people and someone just broadcasts your message to them. All MASS MARKETING. The idea is to ride along with someone elses message and hope your prospect sees you.

* “Existing Customer Relationships Of Others” Channel: can also be a broadcast where you’re paying for inclusion or paying to be delivered, but instead of just going out to the world with a little bit of targeting, now you’re going in with some endorsement and some trust and there’s an assumed relationship in some way…an example might be an endorsed marketing piece (this is probably the strongest version of this) where you find someone who has a successful company has a lot of customers has a good relationship with their customers and a lot of trust and you say “Hey I sell something that would be complimentary to your product or service, will you send all of your customers a communication that tells them about me and says that I’m great and recommend them to buy from me?” so that’s like riding in on an existing customer relationship…some bundled offers can be this too like a lot of computer manufactures bundled pieces of software on the computer and they say ‘if you buy the computer we throw in all this software’ and the person selling that software kind of got bundled in there and are now also selling their product through an existing customer relationship channel riding in on the buying channel…targeted DM to a rented customer list, it’s someone that bought something like/related to what you’re selling you know they’re a buyer and so you’re coming in through that channel…retail – someones in there buying stuff and they can buy your thing…search marketing, either PPC or SEO, the person there is a ‘customer’ of the search engine using it to do something that can be just as powerful as buying which is typing in search phrases meaning they’re looking for the thing, so in a way you’re riding in with someone who has interest in the topic with search marketing…Endorsed Relationships the most powerful of these

* One to One Marketing: ‘to motivate or incentivize an individual to refer or sell others’, this might be a network marketing model or a work of mouth or viral model, the internet has made the viral model easier than ever but very few can do it…On word of mouth marketing: “No one knows how to do it on purpose” – David Ogilvy. Rely on response based marketing where you go out and find good qualified prospects, sharing your offer, and asking them to convert.

There are a ton of ways to skin a cat.

Start with a high probability model: response based marketing/a DM model…learn that, develop that, potentially start with targeted online advertising or endorsed relationships and spend a little bit of money and really see whether or not the offer works, maybe use search marketing or online affiliate marketing – things where you’re really able to measure and pay for results – and if you can make those work, you can then go on to tackle the bigger beasts. If you can’t make those work, you’ll probably have a hard time making the sophistocated abstract and complex models work. So start with response oriented direct marketing.

2 Faces of Marketing:

* External Face (lead gen, advertising, going out and finding the people that might be interested in your prod/serv and getting their attention and getting them to look at what it is you have)
* Internal Face (conversion, once you have their attention looking at your stuff, then connecting bonding communicating the value of your prod/serv and converting them to a sale)
2 teams handle each – one if the lead acquisition team trying to get people to come in, and conversion team figures out what to do with them from then on in terms of offering them products helping them to achieve what they want to achieve in the right sequence that will get the most value to the customer and thus the most value to you

YOU BREAK THESE INTO 2 SO THAT YOU DON’T GO INTO SALES MODE WITH A PERSON WHO HASN’T GOTTEN TO KNOW YOU AT ALL AND DOESN’T KNOW, LIKE, OR TRUST YOU AND YOU’RE ALREADY TRYING TO SELL THEM. Don’t sell too soon, so you see how to link the 2 together.

Testing and Optimization:

Expect 80% of your advertising and marketing tests to fail, meaning they don’t bring in enough sales to justify continuing. “IN MARKETING WE’RE NOT TRYING TO WIN A COIN FLIP, WE’RE DRILLING FOR OIL.” We can afford to try alot of test wells because we know that when we find a good one it’s going to be worth A LOT to us. So when you find that right combination of the right strategy, the right channel, the right marketing piece, the right conversion, the right upsell, the right backend…when you find that right combination and you find a model that works that you can then start tweaking and optimizing – THAT is when you have something that’s really really valuable. That’s when you have a marketing system that works, that’s when you have a marketing model that works.
SO USE THE MATERIAL IN THIS PROGRAM TO MAKE A LOT OF MARKETING TESTS. Keep the things that work, throw away the things that don’t, don’t get too attached to anything, and remember: YOU’RE DRILLING FOR OIL.

What is Marketing?
THE PROMISE OF FULFILLMENT OF THE NEED THE CUSTOMER HAS INCLUDING AN ACTION STEP IN THERE SO THE CUSTOMER CAN TAKE ACTION AND GET THEIR NEED FULFILLED AT A PRICE THAT MAKES SENSE.

10 Response Marketing Commandments:
1. ‘Show me I am in the right place immediately by giving me what I’m looking for’ – at a gut level
2. ‘Know the emotional hot buttons or pain points that are important to me and keep saying them over and over and relating EVERYTHING to those points and the outcome/result that I want/am looking for’ – critical to line up the beginning of the communication, middle of the communication, and end of the communication when you ask a prospect to take action, they have to be lined up, they have to be congruent with each other
3. ‘Talk to me in a personal one-to-one conversational tone and show me that you get me’ how? by being specific, getting right to the point and not wasting words
4. ‘Design everything in a way that’s easy and intuitive for me to understand and comprehend’ in a way that naturally evokes confidence and trust at some level
5. ‘leave me better off than I was when I arrived by giving me something I can use to get closer to my desired result NOW’ get them one step closer to the result they want
6. ‘help me to feel that you are trustworthy’ that you’re authentic, that you’re authoritative, by sharing the good the bad the ugly, be real with me, and help me feel you are trustworthy, it’s an emotion I want to feel it help me feel the emotion of trust
7. ‘help me get the feeling that I have discovered a wonderful secret personal resource and now I have a go-to advantage I can go to when I’m in need’ and can access whenever I need to
8. ‘tell me your story of how you/your product/your service came to be in a way that resonates with me on a personal individual level’ and in your story tell me about your passion for your prod/serv, tell me about your passion for helping me as a person
9. ‘tell me EXACTLY what I need to do in order to take the next step to get the result that I want’ and further translate or convert your methods into a currency that I can understand on an intuitive level, convert it into a currency that I understand
10. ‘take away my risk or better yet turn it around so that you as the business owner have more of it than me’ take away all my risk or better turn it around so you have it and not me

“what are all these people trying to accomplish?” “what’s in common?”

i.e. maybe business people who are also interested in spirituality THUS you may ask “hmm are there any online communities where business people into spirituality share enlightened business concepts?” and figuring out who these people are you may stumble across that and ask “how do we communicate with impact so that when one of those people sees our community or website ‘this is for business people who are also into spirituality’ and they go ‘oooh interesting that’s kind of the group I want to be in’ and then you go in and figure out people who are business people who are also enlightened spiritual oriented people what are their needs, fears, irrational desires, motives, problems they’re trying to solve and then base your community on addressing those top 3 or 5 harddriving emotional needs and focus on narrowly what they’re trying to accomplish so when they show up you can show them exactly what they’re looking to get, you have to know the specific needs of the people by asking them.

Let me know what you think below and I’ll post part two soon…

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