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Marketing Models Defined
The first step in improving financial results is understanding what marketing bucket a business is in. All businesses fall into 1 of 3 primary categories when it comes to attracting and acquiring new customers.
The "Marketing Attributes" are the drivers that typically detemine which model a company fits. Understanding your marketing model allows a company to focus its time and resources on the type of marketing that will produce the best results and therefore the greatest return on its marketing investment.
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Attributes |
Relationship Marketing Model |
Personal Selling Model |
Advertising Model |
| Percent Of New Business From Existing Relationships |
>50% |
10-50% |
<10% |
| Marketing Budget As A Percent Of Revenue |
<5% |
5-10% |
>10% |
| Marketing Personalization Required |
High |
Medium |
Low |
| Scaling Velocity |
Low |
Medium |
High |
| Purchase Consideration |
High |
Medium |
Low |
| Sales Cycle |
Long |
Medium |
Short |
The Advertising Model is the easiest to relate to. We are bombarded with advertisments day in and day out. When General Motors introduces a new model it spends literally millions of dollars in advertising in an attempt to produce awarness in the new vehicle and create, if not demand, then at least consideration when we go to purchase a new automobile.
When the local retailer wants to generate additional sales volume, she runs an ad in the local paper, radio or TV station announcing the special pricing or offer of the day.
The Relationship Marketing Model is a bit more challenging to understand. Why? Because we rarely experience this type of marketing first hand.
Relationship Marketing is the model most professional service providers fall into. One typically is not going to hire an attorney because of an ad on the Radio. Or a CPA because of her newspaper ad. Or a consultant because you got a generic flyer in the mail.
These services will be purchased based on the recommendation of a trusted adviser, one's previous experiences with the professional service provider and the "feelings" one gets about that service provider when meeting with them to discuss specific needs. One hires these services based on the relationship that has been or is being built.
And finally, the Personal Selling Model, is a hybrid of the other two. Before one feels comfortable about letting someone in their home or business for the first time one needs to be comfortable that the company will stand behind their products and services. Most of the trades (plumbers, painters, remodelers, electricians, etc.) fall into this category. Plumbers, for instance, need to both advertise - so people know that they are even a possibility - and they need to build relationships with the people they do serve and with others that are in a position to refer business to them.
Let Vantage Point Direct be your Silent SalesforceTM.
For information on Vantage Point Direct's Silent SalesforceTM Relationship Marketing SystemTM click here
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Challenges of Marketing
