Example scenario: A million dollar marketing strategy

When a new company survives its startup phase and the attrition that entrepreneurs are all too familiar with, it reaches a new phase when its success depends upon its ability to grow. This time is the most crucial for the deployment of a competitive marketing plan, since it can not only ensure a company's continued survival but also uncover the untapped wealth that exists in undiscovered markets.

The following example scenario illustrates what can be achieved using only CoTangent's four basic services plus the ability to adapt each of them to a company's specific requirements.

A great company with no marketing strategy

The flagship product of a small financial services company is its Stock Options Alert service, which offers quick profits in the options market. It has been selling a small number of subscriptions to this service for US$1,000 per year. The analysts have done very well in their forecasts, and the service has both a verifiable track record and a handful of extremely satisfied customers.

It has enough incoming sales to stay solvent, but revenue exceeds costs by only a small margin. Since existing sales are covering expenses, the owners project that any substantial increase in the customer base would be measured as almost pure profit.

The company has been promoting itself with an eight-page insert in a monthly investment newsletter. This regular promotion has an mail-in order form on the back, a toll-free phone number to order the service, and a link to a single-page web site with information about the company.

Identifying the need for growth

When this company takes a survey of its customers, they find that only a minority of new subscriptions have been through the order form. The remainder have come through the toll-free ordering number. Most of the customers surveyed were not even aware the web site existed… a good percentage report that they called the telephone sales number after hearing a friend's recommendation.

The directors of the company realize two things at this point:

  • New customers are being pre-sold from existing customers based on word of mouth referrals.

  • Their unique service and very small subscriber base have not even come close to saturating the market.

Consequently, they decide to reapply their budget for space advertisements in investment magazines towards an aggressive, growth-oriented direct marketing campaign.

Initiating the growth period

After consultation with a marketing design firm, the company develops the groundwork for this marketing campaign by employing three methods:

  1. replacing their existing web site with a CSS design so new promotional pages can be written quickly to provide material for search engines, installing the new web site on a cost-effective and reliable open systems server

  2. developing a template for a monthly free PDF newsletter to establish a pattern of regular new customer contacts and to provide links into the new web site

  3. transforming their old printed sales letter into a dynamic sales letter linking to an online version of this sales material and order form on their new web site

First stages of implementation

The company directors are advised that frequently adding new material containing keywords for their target market into their overall CSS web design will gradually begin to draw customers to their site spontaneously. One of the partners has an idea for an Option Speculator's Blog — a free blogging script is then installed on their open systems server. This blog's use over time will add dozens of highly focused pages to their collection of online, searchable material.

When the company emails its first PDF newsletter, customers are encouraged to forward the email to interested friends and share it with their investment clubs. This email also includes a link to a company web page where new customers can sign up for the newsletter.

Shortly afterward, the subscriber list to the free newsletter begins building exponentially. Comments posted to the entries in the new blog provide a weath of topic ideas for the second and subsequent newsletters.

The company decides to cancel its regular direct mail insert with the monthly investment publication, sending it instead in its own cover their new dynamic direct mail promotion to a small subset of that publication's mailing list. They find that the response rate per letter mailed is dramatically higher due to the new customers subscribing through the online sales form.

Establishing an ongoing growth pattern

Upon further consultation, the company establishes the following three priorities to meet their marketing goals:

  1. They maintain frequent and relevant links from their blog to their educational and promotional web site content, and from their site to the online sales mechanism of their web server.

  2. As a supplement to their online marketing effort, they re-send their dynamic direct mail promotion to a different subset of their investor's mailing list every month. This is mailed mid-way between releases of their monthly PDF newsletter.

  3. They are strict with the timing and quality of their free newsletter, realizing that their "customers" are not just their paying subscribers. Their sales pattern begins to reveal that the conversion of a curious customer into an active client is often just a matter of time and regular contact.

After several months of applying this process, the company's subscription list for its options trading service reaches one thousand members. The company is now a million-dollar business! They decide to send a "thank-you" check to each of their original, loyal customers who executed the company's first marketing campaign... by word of mouth.

This example is offered to suggest the imminent possiblity of exorbitant growth in your business, which can be realized through creative and technologically informed marketing consultation alongside a solid foundation of marketing services.

You are warmly encouraged to when you are ready to unlock this potential in your business.

Best regards,

Robert Phair, Principal
CoTangent Marketing Design

2004 Robert Phair

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