Posts tagged: ROI

Are you a successful business?

By , March 22, 2014 9:15 am

Three of the most important things startups need to focus on / demonstrate if they are raising money, want to grow or just plain want to be successful:
 
1.       Gaining customers (or if no proof of concept then a list of qualified customers)

2.       Showing they know how to grow their business

3.       Demonstrating profitability and ROI

These points may sound easy to achieve and you may be saying to yourself, ho hum, I don’t need to read further.
 
Point number 3 – Demonstrating profitability and ROI. A lot of startups get lost here.  They don’t realize that you have to invest/spend money in order to make money – Lie #4 – I have to show a profit before I can market.  Investors (and actually the company owners should feel this way too) are looking to see if you’re profitable or when you are predicting profitability (break even and beyond).  And tossing some money out willy-nilly at marketing efforts will never bring ROI into your company…you have to be strategic in how you market.

Here’s some definitions and formulas for calculating ROI and profitability:
http://www.dbmarketing.com/articles/Art129.htm


Sandra Holtzman teaches CEO 035: Licensing.

She is the author of Lies Startups Tell Themselves to Avoid Marketing.

Are you a successful business?

By , March 15, 2014 8:33 am

Three of the most important things startups need to focus on / demonstrate if they are raising money, want to grow or just plain want to be successful:

1. Gaining customers (or if no proof of concept then a list of qualified customers)

2. Showing they know how to grow their business

3. Demonstrating profitability and ROI

These points may sound easy to achieve and you may be saying to yourself, ho hum, I don’t need to read further.

Point number 2 – showing you know how to grow your business is key to not only getting funding but to keeping your business healthy. This is something that many startups and small businesses don’t focus on. They say cash is king and “they” are right. Sometimes companies become very successful very quickly and can’t handle it. Prepared for growth. By managing your cash flow you can set goals to grow your business, manage cash on a monthly basis and get a clear picture of what’s going on in your business. Make sure you understand all the financing options available to you – traditional as well as alternative and invoice factoring.

Don’t put your entire business at risk because of something that’s easy to plan for and track.

Here’s some interesting related points:

http://www.alleywatch.com/2014/02/5-red-flags-of-startups/?utm_source=AlleyWatch+Daily+Pulse&utm_campaign=c1ae92d926-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_e01c347085-c1ae92d926-62886025


Sandra Holtzman teaches CEO 035: Licensing.

She is the author of Lies Startups Tell Themselves to Avoid Marketing.

Are you a successful business?

By , March 8, 2014 9:26 am

Three of the most important things startups need to focus on / demonstrate if they are raising money, want to grow or just plain want to be successful:

1.       Gaining customers (or if no proof of concept then a list of qualified customers)

2.       Showing they know how to grow their business

3.       Demonstrating profitability and ROI

These points may sound easy to achieve and you may be saying to yourself, ho hum, I don’t need to read further.

Point number 1 – gaining customers is something that many startups and small businesses don’t focus on. They fall into my Lie #1 – If I build it, they will come.  Investors (and actually the company owners should feel this way too) are looking to see where your market is – are you marketing?  And startups, even marketing startups, often get lost in this space.  Ask yourself:  Would I invest in a company that can’t show me their market?  The customers lined up to buy the product as soon as it’s available?  A list of beta-testers?  ANY INTEREST AT ALL?

More and more I’m seeing startups and small businesses flounder in this area.  Forget for the moment Michael Moore’s crossing the chasm…these businesses aren’t even getting the early adopters.  Take heed and show the market interest.

Here’s some interesting related points:

http://www.alleywatch.com/2014/02/5-red-flags-of-startups/?utm_source=AlleyWatch+Daily+Pulse&utm_campaign=c1ae92d926-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_e01c347085-c1ae92d926-62886025


Sandra Holtzman teaches CEO 035: Licensing.

She is the author of Lies Startups Tell Themselves to Avoid Marketing.

Don’t Create Your Own Missed Opportunities

By , June 8, 2013 9:58 am

I just saw Janet Falk’s blog on how she managed a placement for one of her clients and it made me mad and sad.  Not about Janet.  She does a great job.  But about a company that I ran into a few years back that has an amazing story  and results from a new kind of toothpaste. I’ve used the product (the company was smart enough to hand out, nicely packaged I might add, samples at a bootcamp/pitch fest).  The “toothpaste” stops bleeding gums, actually heals gums, and stops all other kinds of gum and related ills.  So why has no one ever heard of it?  Because senior management of the company doesn’t believe in marketing or PR. Marketing directors come and go but can’t get senior management to invest in their own success.  So many startups don’t understand the $$$ ROI power of marketing and PR.  And if they manage to stay on the market at all, it’s because of a tiny amount of traction they’ve built. Most companies fold.  Companies with good ideas and great products, like this toothpaste. Make sure you’re not one of them.

http://us6.campaign-archive1.com/?u=c87b80819a244b029786430f7&id=42f8a35dee&e=eddcb40635

 

Sandra Holtzman teaches CEO 035: Licensing.
She is the author of Lies Startups Tell Themselves to Avoid Marketing.

GOOGLE MAKES MAD MEN, SAD MEN

By , February 28, 2013 9:54 am

Brandpsych logo

Print Media Commissions are not in Mad Men Visions

GOOGLE MAKES MAD MEN, SAD MEN

drawing by Art Winters

In 2012, Google billed over 20 billion in advertising dollars.  This was more than the total of all U.S. print media.  What a contrast to what magazines and newspapers sold just five years ago!  In 2006, print media sold 60 billion dollars more in advertising than did Google!  How will this change brand marketing?  This isn’t your Mad Men’s day of advertising. (“Mad Men” is AMC’s TV show based on Madison Avenue’s advertising business and people in the early 60’s.)

So what does this mean for brand management performed by many of today’s advertising agencies?  Well, they had better get their act together.  They need to deliver branding power that can compete or at least do co-branding with the Googles, E-Bays, Amazon.coms, and many others, which will keep coming down the Internet superhighway.

The big question is how much of a threat is online advertising?  Is it delivering the ROI experienced through print media advertising?  It’s vital to realize that Google, just 14 years old, is now taking in more ad revenue than print media, which has been here for over 100 years!

However, it must be accounted that Google has a global operation, so this can’t be simply analyzed.  It must also be analytically figured that Google has seen a 15% decrease in ad Cost-Per-Click, CPC (the average fee that advertisers are charged for each clicked on ad) in 2012.  But now, Google’s CPC drop has slowed and perhaps turned the corner in January, as their CPC share increased due to click share on tablet devices. As more people are watching content across a variety of their mobile devices, Google has decided to pull out of its 5-year effort to build its TV Ads product.  Since 2009, they have shut down similar services for print and radio advertising.

Google is concentrating on beating Facebook in the sale of online display ads.  (Online display ads feature the advertiser’s content message on a destination website, usually in a box on the top or side of the page.)  The company is planning to lead web-search ads and online display ads that feature graphics, interactive communications and videos.

Google’s significant increase in display ads that concentrate on brand content is evidence that they have ambitious brand marketing goals.  Now Google is building and developing plans for their advertisers to more efficiently buy across a multitude of sites.

This is not only an important story for the online aspects of our businesses; it is also a good brand invention and reinvention story to watch in real time. 

Where has Google been and where is it going – stay tuned… the next generation of Mad Men is in the digital works….

Arthur & Peggy Winters co-teach SXB 200 Brand Marketing Communications for Image & Meaning and SXR 050 Intro to Branding: The Art of Customer Bonding.

Even – especially – the big guys just don’t ‘get’ it

By , May 12, 2012 8:39 am

I was doing some market esearch yesterday and surfing around Plunkett. I came across customer focused research and how that is changing. It seems that now, instead of marketers showing concepts to individuals sitting around a table in a focus group, they can reach even more indiiduals if they show the concepts online.

Excuse me. How is that customer-focused?
The fact is it’s not. The concepts still come from the agency, or the client. And respondents are still asked to react to someone else’s idea of what might get them to shell out money. The only thing different is the delivery system.

In true customer-focused market research and marketing, the customer (respondent) solves the problem by coming up with the ideas. This allows the customer a total free range of thought and ideation. They tell you how they want to be “told and sold”. They come up with the concept, ad ideas, new product ideas, even strategies for reaching them!

In short they tell you exactly how to help them want to buy your product.
Your ROI soars when you give the customer exactly what they want. I have the statistics to prove it. Statistically significant statistics…like increasing a $500 million dollar company’s new product sales by 10-fold, or helping a start-up company attract a larger company in order to do a successful exit, or help a sole proprietor’s bookings increase by 60% six months after putting up a customer-focused website.

And it can all happen is a period of days.

There. Now isn’t that better?

Sandra Holtzman teaches CEO 035: Licensing.
She is the author of Lies Startups Tell Themselves to Avoid Marketing.

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