The Important Difference Between Marketing, Selling and Advertising

I’ve heard the same sentence from many small business owners: “I’ve tried that, it doesn’t work for my business”. The practice of advertising is a mystery to most small business owners. For them it’s hard enough trying to perfect the process of doing business with their clients; the acquisition of new clients is a whole other challenge. Most business owners aren’t fully aware of the difference between advertising and marketing.

Let’s take some of the mystery out of the practices.

One of the most misunderstood aspects of the process is the distinctions between: marketing, advertising and selling:

Marketing: is the overall collection of tools used to build your business. Marketing has one overall objective – to drive clients through the process of noticing your business, purchasing from your business, enjoying the products or services of your business successfully enough to tell their friends and family and come back for more if applicable.

Some of the tools of marketing include:

1. Advertising

2. Public Relations

3. Direct Mail

4. Personal Sales

5. Internet

6. Print Promotions

7. Education

Advertising: Advertising doesn’t sell to your audience, it is a tool similar to the male ostrich tail; its job is to get you noticed for the specific things you do well. Advertising promotes the distinguishing features, benefits and advantages of your offer to a wide market. The goal of advertising is to bring in valuable leads for the selling process to take place.

I’ve sold Yellow Page advertising to business owners who initially felt that Yellow Page ads brought a lot of callers who were just shopping around. They didn’t want to waste time with “looky loo’s”.

If someone takes the time to make a phone call or send you an email regarding your product or service, why treat them with disdain? These folks are looking for the right answers to their problems. Even more important, they each know about 250 other people personally. Each opportunity to make a connection or a sale should be treated as equally important.

Selling: Once advertising has attracted the potential buyer, the selling process takes over. This is done either by personal sales or the use of point of purchase materials (ie., a store display, video demonstration etc.). Selling should come into play after a prospect has been determined to be right for the product or service.

The mystery and confusion begins when a business owner must decide what tools to use in the process of client acquisition. To whom should you advertise? Where should you advertise and why? How do you advertise? What kind of return should I expect to make on my advertising program? When do I use the other tools of marketing to bolster my advertising program? What should my ratio be between advertising and selling?

To whom should you advertise? Let’s be very clear about this one. You should never put a single dollar into advertising until you know who you will eventually sell your product or service to. You should not even be in business if you have no clue who you want to do business with.

Marketing is used to identify your ideal market. Sure, you may not get 100% of your ideal market, but if you know who will most likely benefit from what you have to sell or service, you can get more of them.

For example, if you’re a chiropractor in a big city, your ideal market might be the couple in their late 40′s to early 60′s that’re health conscious and active. They are looking to stay fit and are open to CAM’s (Complimentary and alternative medicines.). They may have an unfavorable view of the current healthcare system and wish to take a proactive approach to health maintenance. So let’s say after determining your ideal market, you identify 15,000 of them in your market region. So now you have 15,000 likely prospects to reach on a regular basis.

Where should you advertise and why? If you wanted to find a 34 year old Buddhist from Cambodia where would you look for one? The question may seem a bit silly but you know that you wouldn’t start by going to all the mosques in the area.

Sometimes you do have to eliminate all the unlikely places to search until you get to the most likely ones.

You must, of course choose the targets of your ad programs based on how many of your intended prospects will likely see your message. If the local health club in your area has a demographic membership of over 3,000 45 to 65 year olds, you might want to advertise in their monthly newsletter. If they don’t have a newsletter, you may want to sponsor one for them.

Remember the “The best place to go fishing is where the fish are biting”. Take the time to know about your target audience and their buying habits.

How do you advertise? Imagine that your very expensive Mercedes breaks down and the mechanic says that it’s your fuel pump. He needs to change it so he’s going to take a blow torch and cut through your hood, crack open your engine block and then replace the fuel pump. Once he’s done, he’ll weld all the parts back together and get your vehicle back to you.

Would you give this guy the OK to go to work on your vehicle? Of course you wouldn’t. Once you determine what you need to do, you have to be careful about how you execute the solution.

Coming back to our chiropractor, if he finds that the best way to reach the 15,000 couples ages 45 to 65 in his area is through the Yellow Pages; then he needs to decide if it’s cost effective, timely and competitive.

The goal now is to figure out the best way to reach all or most of those 15,000 ideal prospects.

Will he get comparable results from the repeated exposure in the health club newsletter where he’ll have a captive audience and no competition?

There’s no reason not to use both the Yellow Pages and the health club newsletter if they pull their weight economically. The goal of advertising is to gain valuable leads for the selling process to take place.

What kind of return should I expect to make on my advertising program? My answer to my clients to this question is usually a shocker; the answer is a big fat zero (0). How can a business owner spend so much money on advertising and expect no money in return?

This is the basis of the confusion between marketing, advertising and selling. Advertising’s value in the marketing mix is in lead generation. When properly used as such, the measurement of its effectiveness is in how many leads are generated.

This is why it’s so important to distinguish between the various tools of marketing. If our chiropractor had 20 leads coming in each day from his ad campaign and the front desk had a lousy conversion ratio, I bet that he’d blame his ad for not pulling in more clients.

Gauge your response rate when quantifying advertising results. Measure the number of leads coming in and adjust the ad copy to test for better results.

When do I use the other tools of marketing to bolster my advertising program? Advertising should never be used alone. Please remember that the average adult has to deal with over 2700 messages a day from all types of media.

Marketing should be seen as a combined effort to reach the minds and hearts of your target market. You should be using at least five of the seven tools of marketing every week. Depending on the age of your business and your business plan, you should be budgeting 10 to 15% of your estimated annual revenues for marketing. If you just opened your doors in the last five years, crank that up to 20%. There’s a reason that Pepsi and Coke spend over 400 million a year each to satisfy their shareholders bottom-line.

What should my ratio be between advertising and selling? Think of the relationship between advertising and sales as a complimentary one. If your advertising is generating a large number of leads, tailor your sales strategy to convert at least 30% of your leads while capturing all your leads for systematic follow-ups.

Keep in mind that at any given time, 3% of your market is ready to commit to your product or service. The goal is first to convert the 3% of your leads. Then to work on selling to the ones who are on the fence. Whether through personal sales, direct marketing, or point of purchase sales, your ratio will be determined by several factors, the offer, the product or service and the immediate need of the prospects and of course, price.

Don’t get too anal about the ratios. The most important thing to remember is that marketing is an inexact science. You will have to keep testing and trying for better results as the market changes.

Determine the value of a new client and the life time value of your clients. Once you do that, be sure that your marketing efforts are bringing in enough new business to cover the cost of getting new clients and that your sales efforts cover the cost of keeping you in business.

Tweak the numbers and track consistently. If your estimated marketing budget is $37,500 for the year, and your estimated revenue is $250,000 then you have a standard starting point.

At the end of the year your numbers should add up. If you haven’t made the $250,000 don’t simply blame your advertising, look at your leads list and determine if you’ve converted the required number into sales.

MoS2 Low Friction Coatings – Not Just For The Aviation Industry Anymore

MoS2 low friction coatings (also known as molybdenum disulfide, also spelled, disulphide) are regarded the most widely used form of solid film lubrication today. What makes them unique (with the other dichalcogenides) is the weak atomic interaction (Van der Waals) of the sulfide anions, while covalent bonds within molybdenum are strong.Thus, lubrication relies on slippage along the sulfur atoms. All the properties of the lamella structure are intrinsic. No external form of moisture is required. In fact, best performance from MoS2 low friction coatings is attained in the absence of water vapor, which are prone to surface adsorption. This makes them ideal under vacuum.There are a number of methods to apply MoS2 low friction coatings, including a simple rubbing or burnishing, air-spraying resin-bonded or inorganically bonded coatings, and more recently by sputtering through physical vapor deposition (PVD).Thickness will vary, depending on form of MoS2 low friction coatings, but typically ranges between 5 to 15 micrometer. Sputtering techniques can produce thin films of 0.2 micrometer. While plasma sprays will result in higher builds, beginning at 0.003 inch or more.Friction coefficient less than 0.05 is attainable, but will also vary with humidity and sliding conditions. Tests show friction decreases with increasing vacuum strength. Friction also lowers with higher load, faster surface speed, or both. In fact, MoS2 low friction coatings are superior to both graphite and tungsten disulfide (WS2). Friction with MoS2 low friction coatings is independent of particle size, though the larger particles can carry more load.Dry lubrication for MoS2 low friction coatings remains superior at higher temperatures, with oxidation rates remaining relatively low at temperatures up to 600 degrees Fahrenheit. And in dry, oxygen-free atmospheres, lubricating performance, even with oxidation products, is stable to 1300 degrees Fahrenheit.Higher air flow can affect oxidation kinetic rates in atmosphere. Molybdenum oxide products (MoO3) and sulfur dioxide. Since MoO3 alone offers dry lubrication, based on its relative softness, molybdenum disulfide coating are ideal in higher temperature environments. At higher temperatures, though, they are better suited under vacuum. In atmosphere, they are prone to water adsorption from air based on their hygroscopic properties.As with the other dry film lubricants, while differences may prove negligible, you will have to determine which is better for you: longer wear life or better performance, using MoS2 low friction coatings. Generally, friction will be slightly higher by coating both surfaces, rather than coating one surface only. But wear life will increase coating both surfaces.Friction can be good in so many areas of life. Without it we could not easily stop and start our motion, or change direction. But in moving machinery, friction causes considerable loss of energy, poorer performance, not to mention limiting wear life.As with many non-lubricated systems, the static coefficient of friction is higher than the dynamic coefficient of friction. The resultant motion is often referred to as ‘stick-slip’. Basically, the two surfaces stick together until the elastic energy within the system has accumulated to some threshold, where a sudden, forward slip takes place. Under magnification, it’s apparent the union of two surfaces is often limited to intimate contact only at the tips of a few of the asperities (small scale, surface irregularities). At these point areas, pressures relating to contact may be near the hardness of the softer material. Thus, plastic deformation occurs on some localized scale. This is known as cold welding. Where bonded junctions are formed between two materials.For lubrication to occur, these bonds, this adhesive component of friction, must be broken. And this is where products like MoS2 low friction coatings serve well.So, where are these products used today? Consider aerospace, automotive, marine and electronic, for starters. There, you’ll find MoS2 low friction coatings, again and again.

Ontario’s Wine Industry – Harvesting the Benefits of SR&ED

How wonderful it is to proudly browse the wide selection of Ontario’s wines at your local LCBO. Knowing that your own winery is both a driving force in the Canadian economy and an innovator of the local wine industry can certainly be rewarding, both personally and professionally.From challenges to opportunitiesQuite often the goal of a grape grower to produce a consistent, high-quality brand of wine is met with many unexpected challenges. With the erratic situation of the Canadian economy following the recession, wine makers of Ontario struggle to produce at the risk of manufacturing downsizing. In addition to economic factors, the wine industry of Ontario is faced with a higher stringency under Vintners Quality Alliance (VQA) regulations, and the push from Wine Council of Ontario (WCO) to raise industry standards by participating in programs like Sustainable Winemaking Ontario.For the individual winery of Ontario, keeping up with competition means continuously utilizing new technologies and finding innovative ways to provide a premium product, despite such challenges. Simply put, this boils down to having the necessary financial opportunities become available to maintain a healthy competition. Are these opportunities available to the wine industry of Ontario? Yes – SR&ED is the answer!The SR&ED programThe SR&ED program (Scientific Research & Experimental Development) aims to reimburse companies for their experimental development expenses. For over 20 years and with about $4 billion a year in funding, it remains the largest single source of federal funding for R&D in Canada. The goal is to make creativity and innovation affordable in the Canadian business environment and foster future development.The program is highly relevant to businesses who are naturally involved in shop-floor
experimentation. R&D projects that qualify under the program include (1) work undertaken for the purpose of achieving technological advancement and/or (2) creating new, or improving existing materials, devices, products or processes. The actual refund amount depends on proper identification and qualification of eligible expenditures.Wineries in Ontario serve as ideal candidates for such funding. Typical SR&ED eligible activities that apply to the wine industry include:Developing new wines
Altering soil chemistry
Handling and harvesting technology
Improved bottling techniques
Altering practice as result of the weather
Many more…
Wineries and growers may be regularly overcoming such obstacles in daily operation. Your innovative solutions to these problems may very well qualify you for some SR&ED funding. The program supports any attempts to improve your business operations, even if they do not prove successful.Which costs qualify?Working on new ideas takes time, wastes material and requires equipment modification. The SR&ED program allows retrieving these expenses:68% of wages and salaries of personnel directly involved in R&D
41% of sub-contractor expenses
22% of capital expenditures
The refund has no strings attached – as a winery owner you are free to spend it anyway you like – buy new equipment, attempt new projects, or give everyone a big bonus – the decision is yours!How we can help?Submitting a SR&ED claim is a fairly complex and time consuming process. It involves properly identifying eligible activities within your business, associating the appropriate costs to these projects and completing a highly technical report to support the claim.Using the extensive experience of a professional consultancy like ourselves, business owners have the opportunity to review their potential for qualification, and complete the application process in a few hours, and with no up-front costs. We get paid when you do!Discovering that your business is eligible for SR&ED funding makes a world of difference. The goal is to help your winery take potential technical risks that will eventually lead to significant improvements in your industry.