Establishing Sales with Limited Marketing Budgets — How to Maximize the returns


ImageYour Company has a limited budget to market your product.  You are weighing what should be your priorities and how you can establish your first sale.  First, you must identify your target market.  Who is really your true target? Second, what is your product? Once you have answered those two questions, one begins to narrow selection from the marketing matrix that reaches some sales traction as soon as possible.

For example, recently I noted an online product that is incorporated in a point of sale for a chain of supermarkets. The product is a mobile app.  But who are the potential consumers for this the product?  Is it the grocery shopper or the supermarket chain?  Most likely is the supermarket chain since it must incorporate the technology within its network.

Now supermarkets might be leery about incorporating a new technology.  How does one create the “need” for that chain to adopt the product? First, the product must be validated.  Generally, one creates a “white paper” which will prove the usefulness of the product.  Second, since the product is new and must be adopted across the board, one has to create a “brand” that underscores that it IS the right product to incorporate.  Branding is about product awareness, product identification (trademark), and segregation. PR is an inexpensive means to start that branding process – product awareness. By laying out this groundwork, the next step is reaching out to the target market.

Now, in the earlier conversation, we have two limiting factors: capital and time.  Since the product must be demonstrated to certain supermarket chains, it will require person to person presentation to management teams in order to pitch the product.  Since money is time, time is money, we want to market efficiently.  The best way is to determine geographically various chains that are close to the management team, set a numerical target of how many pitches a day can be done logistically, and establish a statistical scoring card of successes.

My preference here is to look at the demographics for supermarket chains that fit the Company’s profile.  The closer they are geographically, the more targets I can reach out to on a daily basis. For example, would I reach to supermarket chains in West Texas where the density is sparse? No. Too much time would be wasted travelling to the potential targets and the returns would be meager.  I would look at Austin first, which is much more urban, and then Dallas.  The marketing team would not have to travel far and one gets a higher return for marketing.   The objective here is to reduce my marketing costs and still achieve my most important objective: sales.

Note that each product is different. And the target consumer might have a different profile.  For example, in the Federal contracting space, the target consumer is the U.S. government. Virtually every federal government contractor is located near or around the 495 that surrounds Washington, D.C. So the business development costs are reduced.  Sometimes I am perplexed when one endeavors to enter into that space and its government support is located in Texas.

Again, the objective of this exercise is to get the maximum from the marketing budget by establishing the exact steps to gain the first sale and seeing which steps are necessary to reach that objective quickly and efficiently.  Some products can be marketed through social networks, very much like Zynga with its games used Facebook.  But I have remarked that social networks might not be the right marketing solution for some products. In that case, you dust off the classical marketing tools and apply them, as I had noted in an earlier blog.

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About Juan Ramón Zarco, SVVGP 胡安•雷蒙•扎尔科

Juan Ramon Zarco, 胡安•雷蒙•扎尔科, Silicon Valley Ventures Growth Partners llp, Hygieia Healthcare Technologies Company, AllRest Technologies LLC, Crimson Growth Partners LLP, jrzarco2001@yahoo.com, is an experienced as CxO, General Counsel and Secretary to public and private companies with global operations. Established track record of producing practical, revenue-focused solutions. As Counselor and Secretary, demonstrating vision, integrity, and sound business judgment, to CxOs. Managed complex, strategic transactions, M&A, contracts support, PE Financing, IPO, SEC compliance, Corporate/HR governance, IP licensing, Budgeting, Staff, outside counsel management, International market access strategies, Domestic & foreign government relations and advocacy. Creative in designing and implementing market access strategies. Practices law beyond conventional model with low-overhead and project-based fees. Effective at managing departments, formulating marketing strategies, balancing budgets, and implementing cost-saving measures. Extensive in-house and private practice experience, advising clients on commercial, corporate, international business, and technology law and policy. http://www.docstoc.com/video/89135472/make-your-business-an-international-presence; http://www.youtube.com/watch?v=fx5gijf3yoc For Sprint, he managed iDen international development in Southeast Asia, Middle East, and Africa, and contractual issues with Verizon. In Private Equity, he worked with Pegasus in vetting international investment deals and interim President for portfolio companies, such as Data Foundation, a data storage company, handling marketing, strategy, fund raising, and accounting. Before Pegasus, Mr. Zarco, as CLO and V.P. of Corporate Development, played a principal role in the structuring, international expansions for 2 telecom companies, U.S. Cable Group and Viatel, Inc. in financing and M&A deals exceeding $200 million. Mr. Zarco earned a J.D. from NYU Law School, M.B.A. from Cornell, and B.A. from Williams College; is fluent in Spanish, Portuguese, French, and German, with working knowledge of Russian, Arabic and Japanese.
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