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As a new business owner, you have important questions about yourcompany's sales and marketing programs. How will you create aprofessional image and win customers? Where will you run ads andhow often? How can you use public relations and special events toget noticed? How much should you invest in direct-mail marketing?Take this quick quiz to test your sales and marketing know-how;then read the expert tips to put your marketing program on the fasttrack.
Answer True or False
1. A new business should produce a quick, temporary brochure atfirst, then invest in a higher-quality piece when the businessbecomes successful.
A. True
B. False
Answer: B. False. You never get a second chance tomake a first impression. Carefully craft your company's imagefrom the start, or you risk creating a poor impression that will bedifficult to correct. You may also miss out on sales that could beyour initial springboard to success.
2. When it comes to sales and marketing, stick with what you dobest, such as networking or direct-mail marketing.
A. True
B. False
Answer: B. False. For most businesses, the salescycle can be fairly long, requiring eight or 10 contacts with aprospect before a sale is closed. You need a wide range of salesand marketing tactics to motivate prospects throughout thecycle.
3. It's normal for a company's marketing activities toincrease or decrease based on work flow, with reduced marketingduring busy times and peak marketing during slow periods.
A. True
B. False
Answer: B. False. Entrepreneurs who market only inthe slow times experience corresponding highs and lows in theircash flow and risk plunging into a valley so deep they can'tmarket their way out.
4. The advertising term "frequency" refers to thenumber of times you run an ad. If you run an ad seven times, youhave a frequency of seven.
A. True
B. False
Answer: B. False. Frequency is the number of timesreaders of a specific publication are expected to see your ad.While actual percentages vary among trade and consumer magazinesand newspapers, for example, a typical subscriber will not seeevery page of every issue. This is why ads typically run many timesin different issues of the same publication.
Choose the right answer for each of the following:
5. Each time a prospect is exposed to your message--in person,on the phone, in an ad or when reading your brochure--whichquestion is foremost in his or her mind?
A. What will this cost?
B. How will this benefit me?
C. Who else is using this product/service?
D. What are the features?
Answer: B. How will this benefit me? Prospects makecritical decisions about your company based on the benefits youcommunicate. No ad, brochure or face-to-face sales interaction cansucceed unless it answers the prospect's primary question,"What's in it for me?"
6. Case histories (descriptions of how you've solvedproblems for customers) are most useful when:
A. Overcoming objections
B. Building credibility
C. Demonstrating customer loyalty
D. All of the above
Answer: D. All of the above. Prepare three or fourgood case histories that demonstrate ways you've solved avariety of challenges for customers.
7. Contact-management software is valuable for companieswith:
A. Hundreds of prospects
B. Thousands of prospects
C. Any number of prospects
Answer: C. Any number of prospects. The smaller yourcompany, the better you must manage call-backs, letters anddirect-mail contacts. Put the right software in place now toprevent important contacts from falling through the cracks.
8. Which of the three elements of an effective presentation canmost easily be upgraded using a videocassette recorder?
A. Content
B. Structure
C. Style
Answer: C. Style. Before your next presentation,videotape your rehearsals to help eliminate any negative vocal orphysical behaviors.
Answer True or False
9. A steady stream of press releases to a single sourceeventually gets your business noticed.
A. True
B. False
Answer: B. False. Journalists and news directors receiveyour information with one question in mind: "Will thisinformation interest my readers or viewers?" Instead of asteady barrage of so-so information, fax or e-mail only what is ofspecial interest or newsworthy; follow up by phone.
10. The best way to contact a new business-to-business prospectis by phone.
A. True
B. False
Answer: A. True. The traditional contact sequence inbusiness-to-business sales is: Call, mail, call. Those who mailfirst, then call, are generally disappointed to learn the prospectcan't remember receiving their materials.
11. A typical response rate for direct mail is 1 to 3percent.
A. True
B. False
Answer: A. True. That's why testing is soimportant. Mail 3,000 to 5,000 pieces first, and gauge resultsbefore mailing to the full list.
12. With all the information available on the Internet, you nolonger have to do your own primary research.
A. True
B. False
Answer: B. False. The Web has reduced the amount ofprimary research necessary to launch a business, but it can'treplace testing your product or service with your real-life targetaudience, using tools such as surveys and informal focusgroups.
13. You should maximize a limited special events budget bytaking a small booth in as many community events as possible.
A. True
B. False
Answer: B. False. A small booth in a fair withseveral hundred others gets lost in the crowd. A bigger booth orsponsorship in one key event allows your company to shine.
14. A one-on-one meeting is going well when your prospect isdoing most of the talking.
A. True
B. False
Answer: A. True. The two most important componentsof effective interaction with a prospect are asking questions andlistening to the answers. If you're doing most of the talking,chances are your meeting isn't going well.
15. It's better to run an ad where there is less competitionso it will be noticed.
A. True
B. False
Answer: B. False. Media such as newspapers createwhat's called a "search corridor" by clusteringcompetitive advertising in a designated section or on a particularday. This is where prospects look when they're ready to buy.Running an ad elsewhere is like opening a store a mile away fromthe mall--you get a lot less traffic and fewer sales.
How did you score?
Give yourself 10 points for each correct answer.
150 = A perfect score! You're a marketing whiz.
120 to 140 = Very good, but you could benefit from brushing upon the finer points of marketing.
70 to 110 = You've got some of the basics down, but need tolearn more about marketing.
60 or less = You've got a lot of work to do.
