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Battle of the Brands
June 17, 2008
Let me tell you the story of two companies who
make very similar products, and sell to the same customer base. Both make
excellent products that provide a huge benefit to their customers. One of
them is incredibly successful at lead generation, and closing the sale,
while the other is sailing without a sail. Which do you think is the more
respected leader in their industry?
Both the companies I'm talking about make tool vending machines and
inventory management software to drive the machines and keep track of
inventory. They both sell to manufacturers in the aerospace, automotive,
medical, and general machining industries. Both companies' products offer
huge cost savings to their customers through better control of tooling
inventory. In many cases each companies' products save up to 30-40% in
annual spend on tooling.
Shouldn't they both be doing bang up business, especially in a down economy?
I won't mention the companies' names because I have worked with one of them.
Guess which one?
Well, one of the companies does well enough, and has grown sales about 2-3%
per year in the last 3 years. Not bad.
The other company has increased sales an average of 20% each year over the
last 3 years, and just had to move to a new 80,000 square foot facility to
handle their amazing growth.
In fact, the more successful company sells a tool dispensing machine made by
the other company, and does a better job marketing the machine. They sell
the machine for 10% more than the company that makes it, and they blow the
actual maker of the machine out of the water. How do you explain it?
Simple. The more successful company utilizes an ongoing article marketing
strategy that keeps them in front of their current, and more importantly
their prospective customers. By using articles published in trade magazines,
and industry web sites the successful company has built their credibility
and positioned themselves as the hands-down leader in their industry.
The less successful company has relied on distribution, and paid advertising
to generate quality sales leads. By relying on distributors they have
essentially placed their marketing efforts in the hands of other companies
who also have 100+ other product lines to sell to their customers. That
strategy insures they will only get about 1/100th of their distributors'
marketing effort. That's a pretty poor ratio, and doesn't lead to massive
sales growth. Plus, who knows if the distributors have any clue how to
effectively market their product?
There is nothing wrong with paid advertising, but it costs the less
successful company a fortune, and the results don't really justify the
expense. The very successful company puts the emphasis on article marketing,
and uses sporadic paid advertising as an accent to their article marketing
strategy.
In addition, the very successful company has a web site that entices their
prospective customers even more with an easy to navigate design, and lots of
free information. They even offer a free trial of their software via instant
download. All you have to do is enter your email address, and you get a free
trial for 60 days. The company also gets an opt-in sales lead they can
follow up with a few days later, and in email newsletters forever. The
articles bring prospects to the web site, and the web site continues the
sales process.
The less successful company has a bulky web site design with little
information, and no free downloads, in fact no free anything. There is
nothing to really entice their prospects to want to learn more, and
eventually buy.
So, the moral of the story is to build credibility, and grow sales by leaps
and bounds you must have a consistent article marketing campaign.
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