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Without a doubt, one of the most difficult things to decide for any business is how much to spend on promotion. There is one way to determine the answer. How much is the customer worth to you? This would be a sure sign on how much you can afford to spend on advertising.

A simple way to determine this is by figuring out what the Cost Per Contact would be.
Lets say you spent $1,000 on advertising in a magazine and your advertisement will be seen by 1,000 paid subscribers of this publication. The Cost Per Contact would be $1.00 per contact, which is a small price to pay to have your add viewed by 1,000 people!

Large corporations use this formula to base their advertising costs per person. For example, a 30 second spot during the Super Bowl would set you back $2.4 million. BUT, on average 40 million people watch the Super Bowl every year. That means companies like Pepsi, FedEX, IBM, etc. had a cost per contact of $0.06 per person. Was it worth it? I’d say so. These companies make hundreds of millions of dollars every year. And to spend $0.06 per person to bring in that kind of revenue is well worth it.

So the question is, can you afford not to advertise?

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About iMAJ Marketing: iMAJ Marketing is a marketing firm designed to aid businesses in Direct Marketing Programs. For additional information on how we can help your company’s marketing efforts, please email us at teamimaj@imajmarketing.com or call 407-264-8746.

Tags: Advertising Costs, Cost Per Contact, Direct Advertising, Direct Marketing, Promotional Advertsing

Customers would rather not lose something than save something. If offered the choice to not lose $100, or to save $100, the customer will choose the not lose option. This is an important marketing understanding. Always communicate the consequences to the customer of going without your product. The fear of loss is a much stronger buying motive than the potential to save.

For example, take the storm window manufacturer who claims its double-paned windows “Will save you $2.00 a day in reduced energy consumption.” It is more effective, more memorable, and more compelling to say, “You are losing $720 a year with your old single-pane windows. Try ABC Double-panes.” The gauge and controls company that says, “New Spillex Controller prevents overfilling, saving you hundreds of dollars in cleanup costs,” would generate more inquiries and more sales using, “Overspilling spills your dollar bills on the ground. New Spillex Controller stops your loss.”

Every benefit for every product can be dollarized. Every benefit for every product can be expressed in the dollars and cents and delivers to the customer. Every benefit can be calculated to show the economic value to the customer. The benefit can be presented as a saving for the customer, or as the cost of going without the solution.

It is always more effective to influence the customer by showing the cost of going without, along with any other consequences of not buying your product. Few customers knowingly ignore consequences and then deliberately buy an alternatative product just for a lower price.

The super marketer dollarizes the product benefits and then shows the customer what it is costing him per year, per week, per hour to go without the product.

Fewer than 5 percent of all marketers ground their product claims on benefits to the customer. Fewer than 1 percent of all marketers dollarize the value of their product and sell with numbers. Only the super marketer dollarizes and sells on the consequences of not buying.

Customers don’t want to lose. Do customers a favor: Warn them what they will lose if they don’t buy your product. When they buy, everybody wins !

For more information on the Inside Secrets Of Advertising, please visit http://www.insidesecretsofad.com/

Tags: Advertise, advertising, copywriting, earn, Marketing, money, prospect, sale, sell