Improving Advertising Performance
In the world of automobile racing – different types of racing demand different types of cars. A car designed for Formula One racing would perform miserably if asked to race in an off-road environment.
While a Formula One driver would never take his car “off track,” many business owners do just that with their marketing and advertising campaigns.
If your marketing and advertising are not producing the desired results – it’s possible you’re using the wrong type of “vehicle” to deliver your message.
Most of the information you’ll find about advertising and marketing is geared towards businesses making a specific TYPE of sale which Neil Rackham in his book SPIN Selling calls a Minor Sale.
Minor Sale tactics work well if you’re making a Minor Sale. However, ff your business is making a Major Sale – then using marketing tactics geared for Minor Sales is like taking a Formula One racing car to compete in the Dakar Rally.
Marketing and advertising strategies vary greatly depending upon whether your business is making a Major Sale – or a Minor Sale. If you’re a business owner – before you throwing any more money at your advertising and marketing , take a moment to see in which “race” your business is competing.
Minor & Major Sales
Understanding the difference between Major and Minor Sales is essential to creating successful marketing messages.
According to Rackham, the following criteria determine which type of sale your business is making.
Your business is making Minor Sales if:
- There is a single decision-maker.
- The buyer’s financial or emotional investment is low or insignificant.
- The purchase does not warrant the time/energy necessary to research alternatives.
- There is little interaction between you and the customer
- The consequences of a purchasing mistake are inconsequential or insignificant.
On the other hand, the stakes are higher when you’re making a Major Sale. According to Rackham, your business is making Major Sales if:
- There is more than one decision-maker
- The buyer’s financial and/or emotional investment is significant
- The purchase warrants significant time and research into alternatives.
- There is the potential for a long-term relationship between you/the business and the customer.
- The consequences of making a purchasing mistake are high.
The biggest difference between these two types of sales is the amount of trust you must build with prospective customers. If your business is making Minor Sales, then the internet abounds with marketing tactics you can use to improve sales and boost your bottom line.
However, if your business is making Major Sales, then you’ll find that many Minor Sales marketing and advertising tactics are ineffective at best – and sometimes positively destructive.
If you haven’t given much thought to the type of sale your business is making, then I encourage you to do so. It may just be the most important information you discover about your business.