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Difference Between Display Marketing And Targeted Marketing

Difference Between Display Marketing And Targeted Marketing

Today we’re gonna talk about targeted marketing. How does targeted marketing work? What is the psychological difference between display marketing and targeted marketing? We are gonna go through that. I truly feel that a lot of Indian business owners need to start learning about these things. Because, like I keep mentioning, again and again, that supply-based marketing supply-based economy as you know kind of changes then we don’t have the kind of demand that is existing in the market for the last 20-30 years.

You need to start understanding how to generate the demand and for that there are two different kinds of marketing and you know one of them is something that I recommend one of them, something that I don’t recommend the decision is entirely yours. But if you’ve been doing one of these you will know exactly whether it works or not and then you will understand why I keep talking about the topics that I do.

So let me just quickly get into the subject matter. We have two types of marketing.

1. Display Marketing – which is geared more towards inbound inquiries
2. Outbound marketing – which is geared more towards I am gonna go out to get the customer’s attention and convert into business.

How does it work? Let me give you some examples that you have probably used in the past. TV ads, putting ads on the TV. If you are a big business you will probably put ads on the TV. They are very expensive. But with the number of channels that they are expanding has got a call from some companies saying, hey man we are a TV channel we just opened up, we have like 20000 subscribers and many of them are in your town. So if you would like to give the TV ad which starts with 20000 rupees or something like that. They can get very expensive because obviously TV by itself is a very expensive medium. Then you have something called a newspaper. Again they will start with a minimum of 10000 to 20000 rupees depending on what newspaper you go for. If you go for the Times of India and all they would get very very expensive. Then you have things like visiting cards, right people make visiting cards and they keep throwing out these visiting cards everywhere. Hey, man here is my card, here is my card.

Now if you are a corporate employee, ok what are the big questions that I get from students of the Startup Frat academy of corporate employees? Says I am already working in a job I have my boss, I have my colleague’s and you know I don’t do anything that puts my name out there with you know they may find it and they say it, Hey man, why are you trying to build your own business?” Because of the people’s crab mentality, right if you’re trying to do something nice for yourself there are people who try to kind of you know figure out how to hurt you, pull you down.

This is a very normal human nature, no problem about that, but obviously, if you are in a job, if you are a corporate employee or if you are some person who wants to keep the business activity different from their family. They wanted their family to know they wanted friends to know which is perfectly fine are highly recommended it. Then doing things like putting your name into the newspaper, throwing out a bunch of visiting cards everywhere, but you know the wrong kind of people may find it. People put stickers all over the place like they go to commercial buildings and you have the stickers you know this is what we do etc.

You have people put banners and hoardings knowing they could be very small like you have the small banners put up on tries and so on and then you have larger holdings and all. You have people doing spanning on the Facebook group, you join a Facebook group which is meant for like entrepreneur Facebook groups and then everybody puts up their post, Hey man I help people do GST, Planning, etc and here is my number and all that. That’s the display, then you have websites ok by now you must have figured out the website is a great thing to have but it’s not gonna get you business. In fact, in the Startupfrat academy, I have helped students to get up to six figures of income without even having a website.

Why because nobody at the time goes through our website and a website is the number one reason why the wrong kind of people find you. Anything to do with YouTube or Google SEO Right, especially your name, your face on a website.If you are doing Google SEO or if you are doing a bunch of YouTubing. None of this stuff can make you money. Let me just cut it short. All this YouTubing etc is not gonna make you money because all of these things are mint for big players.

For you to become big on YouTube will take an average of 800 days of video posting every single day. Means more than 2 years. Posting 800 days of video content probably makes you a YouTube sensation. But do not bet on it. Then you have people throwing up business names and addresses on Justdial & Yelp and other sites which is fair no problem. Freelancing websites and all of those networks are called yellow page networks. This is great, there is no problem with that but the point is you will either not get business or you will get a price compared with at least 10 people before I ever get a customer inquiry. Why? What does Justdial do? Have you ever gone and given an inquiry like an end customer on Justdial you say, Hey man I want an electrician. They are gonna send you the phone numbers of 10 electricians and you start getting calls from 10 different people before you ever make a decision as a consumer.

So the networks are in the business of providing the consumer the best possible choice. This is awesome, but as a business, if you are listed over there you are just one among many and you will be priced compared with hundred other people before you ever get a business sale. All of these are essential displays kind of advertising, where you are expecting a deal to come through the door. A paying customer came to the door. It doesn’t work like that and if you are a business owner you would have realized that by now. Even if you are a certified independent professional like a doctor, lawyer, chartered accountant architect you would realize that this stuff doesn’t get to the business. At least not the kind of customers that you want and not the kind of customers that you will get. You will make a tidy profit and you will be in a position to serve them to your best ability. you will get the price rates and all of those kinds of people you are unable to help them and serve them to the best of your capability because they don’t want to pay you anyway.

Outbound Marketing

Now we have something called outbound marketing. What is outbound marketing? Outbound marketing is highly targeted marketing that you can start with the investments in terms of money are a fraction of what you would pay for any of this type of marketing. Just to give you perspective, a good website will cost about 65000 rupees a year to maintain. If you can get a website for 5000 rupees, I will make you a website that is not gonna work. So a good website will cost you about 60000 to 65000 rupees a year just to maintain the website. If you get SEO services, If you get up the smart Alec person who knows Google SEO, Google keywords and kind of put you in the directories and all of that, it will cost you at least two and a half lakh rupees a year my friend.

If there is somebody who said I can do your SEO for 8000 rupees and all of that. trust me it’s not gonna happen. How do we do targeted marketing? I’ll give you different scenarios. All of these will work for you. The first one is instead of giving an ad in the newspaper which will cost you upward of 10000 to 20000 rupees. You could start by distributing pamphlets which have a deal on them. How do you work that? You go to the newspaper supplier who has a distribution in the 10 societies in your area or different area. Which is why it is targeted. You can find a newspaper supplier on the other end of town, you will find a newspaper supplier who is in a different town, etc and you pay them Rs. 1000 and they will put 1000 pamphlets or 500 pamphlets into 500 different newspapers. Put all these newspapers only in 1 society.

Now imagine you have a restaurant, you put Rs. 500 or Rs. 1000 in one society, you put another Rs.1000 worth pamphlets in another society. You put another Rs.1000 pamphlets in 4th society, you put another Rs. 1000 pamphlets in 5th society ok. in the kind of place where you don’t have your friends, colleagues, family members, etc. So you are really targeted really fine. Now you imagine you are a restaurant that serves nonvegetarians and one of these societies will have a lot more vegetarian people living there. So you are not gonna get any inquiry, not gonna get any business from this society.

Maybe there’s another society which may be a little low-income level where people don’t kind of afford the kind of dish prices, the price per dish that you are charging and you get a negative return on investment. This means you lost your thousand rupees in the first society. In the second society, you got only 2 orders from the whole housing society and the orders amounted to 800 rupees so you lost 200 rupees. In the third society what happens is you know you have your kind of customers may be the social or economic type etc. All those people are slightly better, you get let’s say 2000 rupees of business, in the third society get 4000 rupees of business and the last society let’s say you get 5000 rupees of business. Imagine you have a profit percentage of 30% of 5000 rupees a business, you make 1700 rupees profit. What does this pamphlet say? It says Friday night 30% off, If you order between the hours of 6 o’clock to 9 o’clock so we can serve a customer, provide timely deliveries. So after 30% of you are able to make let’s say 28 to 30% profit on your dish price. The restaurant business typically makes about 50% profit. Let’s say you collect Rs.1700 of profit on this Friday night, for a thousand rupees of investment.

Now, what should you do from next Friday onwards? Whenever you roll out a deal if you cut out all other social expenses and you focus on the 5th society, and then you add go society by society by till you have at least 4 or 5 societies that you know that you’re gonna make a tidy profit because the taste of the customer, the socio-economic status of the customer matches exactly what you providing. Imagine you start building a customer audience who are over a period of time they are loyal to you and you know they want to get the best service the best possible quality from you and you know that they are the kind of people who like to order out on Fridays and pay for it.

Telecalling

 

Telecalling

Now the 2nd model is called telecalling where you personally pick up the phone or you have a person pick up the phone you know you have an employee who picks up the phone make a hundred calls the day you get your appointment or you get your walking and your calling the kind of people that you want to call, again you follow the same exact model. You get a small database from somewhere, get another small database from somewhere and you call them and that’s how you run the model. Again you can make it very targeted, so you are not calling your own town, you are not calling the areas where you have your own colleagues, bosses living there, etc. If you are into B2B, which is you know calling a business or a company you can literally just exclude your current employer and have your telecalling guy call the companies he said that you intend to. This can be very very targeted.

Again upfront investment can be very low indeed the telecalling salary for a person will be 20000 rupees upfront. You can pay them some incentives and all. They perform well, but let’s say about Rs.20000 in any tier 2 city. If you are in a tier 1 city like Bombay or some other city, maybe the salary will be higher. So the spend is lower for Rs.20000 this guy will make 100 calls a day, 25 days a month that 2500 calls. Instead of just spending Rs.20000 on a newspaper ad and waiting for a customer to walk in.

The second thing is targeted ads. Anything to do with Facebook, Instagram, etc is a pay-for-play. This means regardless of how beautiful a Facebook profile you have and what nice business page you have and things like that. Nobody is ever going to find you on search. So you have to pay to play which means you have to either pay for ads or you have to do targeted marketing manually using a technique which is called the dollar 1.8 method which is the famous social media influencer Gary Vaynerchuk you know propagated. You can do it manually you can do it pay to play which is paid ads but all of these incidentally are not brand building ads. All of these ads are action ads which means they call us, message us, do this, you know put go on WhatsApp, put in an inquiry. Since the direct action ad that you tell customers you know.

If you like this you put out an ad that says If you want this discount or if you want this Friday offer, if you want something like this just message us, call us, send a WhatsApp message. These are targeted ads. Then you have something called SMS marketing which is again you can get your SMS agency to pay to send SMS only in a particular pin code you can send SMS is only in a particular City you can send SMS is only to people who are interested in you know financial products, only to the people who are interested in restaurant products, only to the people who are interested in Lifestyle products and things like that can be very very targeted. It will get you the necessary queries at the door. Now the key difference with this type of marketing can be highly predictable and the amount of profit or they want revenue to make from this activity will depend on whether you have a consistent system which we call in our community the Express Highway System. You have a consistent system to convert customer attention so what you’re doing is you literally buying customer attention by spending some money over here, by employing a guy over here. Then you’re buying customer attention, so you need to have a consistent predictable model of using this customer attention multiplying the customer attention harnessing, the customer attention, and making a profit from this customer attention. If you do not have a process like that then neither will this work for you, and I can guarantee you nor will this work for you. People think that, If I throw money at the problems suddenly I start getting business the answer is no not in this market. I can guarantee not in the future in India at least you can do this because this whole shift happened in the US about 50 years back and since then it’s never been the same again.

Demand Generation

demand generation

So if you go to a supermarket and look for corn flakes they have so many irons full of conflicts of various prices, various varieties, various flavors, various brands. If you are one of those brands your guarantee to never make a profit if you’re depending on Supermarket walk-ins to sell your product. So that brings us to something called demand generation. Is this process called a predictable process of getting customer attention, harnessing customer attention, multiplying and maximizing customer attention, and then monitoring customer attention? So you make a profit this process is called demand generation.

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