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Q. I’m considering a direct-mail campaign this spring to attract new customers. What do you think?
A. I wouldn’t recommend it for a small company. Direct mail is expensive and only generates about a 0.5 percent to 1 percent lead closure rate for every 100 units mailed. If you still want to give it a try, consider this: Forty percent of success comes from your mailing list; 40 percent will depend on the offer, and the remaining 20 percent will depend on miscellaneous factors (design, copy, delivery, date, etc.).
Q. What’s the difference between a business plan and a marketing plan? Which should I attempt first?
A. The business plan provides a wide overview of the business, which includes information about staff, operations, location, sales, marketing and financial aspects, as well as clearly outlined strategies, missions and goals. The marketing plan focuses on the marketing strategy, target markets, messaging, programs, etc. I strongly recommend the marketing plan be included as part of the overall business plan.
Q. A business associate suggested I focus on vertical marketing. What’s the advantage?
A. Vertical, or niche, marketing is the promotion of services to a targeted business or consumer segment. Messages are received more effectively, carry more credibility, are more cost-efficient and result in significantly less-competitive influences. Customers are willing to pay more to vertical marketers because they have credibility and knowledge of their niche. Examples of vertical markets include the healthcare and hospitality industries.
You can reach Harvey Goldglantz, president of Pest Control Marketing Co. and author of Marketing Matters, at hgpcmcinc@aol.com. His book, Marketing Matters, is available from the PMP bookstore.
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