The Game & Lifestyle Epiphany

Ankesh + I have had this discussion at least once before.

It can get quite heated.

Imo, here are the 3 "B"s to avoid at all costs (because they are myths)...

"B"e a magnet.

"B"uild a better mousetrap and the wolrd will beat a path to your door.

"B"uilt it and they will come.

Who is a bigger magnet than McDonald's? Yet they advertise. Why?

Because if they were to stop advertising, they would go out of business.

Why?

Because: "The initial spark that leads to the vast majority of transactions emanates from the marketER, not the marketEE."

The main purpose of the McDonald's ads is not to impart knowledge about McDonald's -- you already know everything there is to know about McDonald's. The purpose of the ads is to BUG YOU. If they stop BUGGING you, you stop going there.

Take Halbert's Coat of Arms letter. How many of those sales were from people who were already looking for a coat of arms? Almost NONE, I'd guess. That means, if he had gone the 'magnet' route (set up SEO + pay per click + website, etc. -- for instance), he would have a FRACTION of the sales he DID get via using the OUTGOING ("pushy") route. In other words, he would have had NO SUCCESS, and no one in the world would know his name now.

There IS some value in being a 'magnet,' yes. But, from what I see, it doesn't do what you think it's gonna do -- ie: let you 'coast.'

Even Wal-Mart advertises. I'm assuming, because they NEED to.

-- TW

The other factor that is in play is industry marketing specifics.

McDonald's, Walmart & etc. are offering products to the general public. Since the general public is always aging and new consumers are coming into play, it's mandatory that they keep advertising. They do not rely on the loyalty factor.

Products that Harvey Brody has a toll position on do not demand the same regimented marketing approaches. He is not marketing to the consumer but to an industry that knows who has control and is required to be loyal. It will be that industry's responsibility to market and offer the product(s) to the general public.

So just in this example, you have two completely different dynamics in play.

I only picked Wal-Mart + McDonald's because those are examples everyone knows.

I think the same arguements can be made about all biz's -- big + small... niche + general public.

The two parts to every (successful) duck. The visible part -- floating calmly, magnanimously on the water (what could be called the front counter).

Then there's the feet UNDER the water -- furiously paddling like hell to stop from going over the waterfall (what could be called the back room).

I say that's the way it is -- and should be. It's dangerous to believe you can be a duck who has the top part without having to have the bottom part (too). Dangerous because it is an untruth. There's a very good chance you'll go over the waterfall.

-- TW

It certainly is an alluring idea! I become a magnet, and my customers become iron filings! I do nothing, and my magnetic 'power' DRAWS them to me. I relax in my hammock, and the phone rings off the hook. Aaahhh.

Almost all so-called magnetic marketing 'systems' I've seen, including Kennedy's, offer that same dream. Testimonials like, "I can't believe it - customers were coming in from NOWHERE! TONS of them!"

Here's the problem... All of those testimonials are about STEP 2 of the 'system.' What they leave out is Step 1.

Step 1 is (ALWAYS) -- BUG your potential customers *** A LOT ***. REPEATEDLY.

OOPS! Sorry. Did we forget to mention that?!?

In Kennedy's case, Step 1 is: Send out ZILLIONS of direct mail pieces.

Step 2 is "The phone rings off the hook." -- But that is Step TWO, not Step 1. There is NOTHING 'magnetic' about that system. It is NOT 'the customers come to you!!!' -- It is (just plain old) YOU go to the customers.

Unfortunately, it's really no different than the ancient WILLIE LOWMAN approach. The only difference is -- with the Kennedy plan, etc. -- you're using the mail, not in-person or the phone. The benefit is, YOU DON'T HAVE TO EXPERIENCE THE REJECTION FIRST-HAND!

But make no mistake, the rejection IS there. It's just that the rejection is: people ignoring or throwing away the letters -- instead of hanging up on you or slamming the door in your face.

Yes, it's a more 'pleasant' form of rejection. You can pretend it isn't there. You can convince yourself that Step 2 is really Step 1.

But it sin't.

I still say, the fatal mistake being made here is believing that the group called "My potential customers" is the EXACT SAME GROUP as the group called, "People who are already looking for what I offer."

That is almost never the case.

If Halbert had believed that, he never would have crafted his letter, or sent any out. The marketer GOAL is to CHANGE (yes, CHANGE!) the marketEEs from being a potential customer to being a customer -- whether that potential customer was already looking for that product/service -- OR NOT!

The vast majority of GH's *customers* were NOT already looking for what he was offering!!! Read that again -- it is profound.

So, being a 'magnet' would not have helped him at all.

Knowing that *instinctively* (as GH did) is the best way of not falling for the alluring 'magnet' myth. ----- imo.

-- TW

[GordonJ]

Originally Posted by -TW

Because if they were to stop advertising, they would go out of business.



Even Wal-Mart advertises. I'm assuming, because they NEED to.

-- TW

TW,

It could be a splitting of hairs on some issues, I won't argue with your premise...however, there are companies out there who really don't need to advertise, because of their "position" in the market.

Here is one of my favorites:

JIFFY MIX. Found in probably every supermarket and grocery store in
America. The blue box hasn't changed in years. They are the "low priced" product in the category. And they maintain that position because they DON'T ADVERTISE.

And, it is a HIGH quality product too. Most of their mixes (OPINION: some need improvement)...compete with the big name brands at 40 to 50% higher cost.

Their corn muffin mix is superior to most on the market, I use it all the time.

It is a great company, has been around forever...chances are EVERYONE who shops and bakes has seen their products.

They simply pass the "marketing" costs savings on to the consumer. Super company with high employee retention, been around forever and they don't advertise or "market" their products in the "traditional" ways.

Again, I'm not totally disagreeing with what you say, there is some accuracy in what you posted...but there are exceptions too.

HOW do we get a "magnetic position" in the marketplace like JIFFY MIX? It is having a clear understanding of your customers and what they want.

Gordon Jay Alexander

Their 'ad' could be the price label on the shelf under their product and/or the way the box looks compared to the others.

A store's 'ad' could be their physical location (in a high-traffic area).

An 'ad' can be anything that a potential customer sees or experiences, whether they want to -- OR NOT!

Like a billboard -- or a biz's storefront (which is a billbaord, basically).

It is any 'message' that is SENT by the marketER -- and RECEIVED by the marketEE ---- not the other way around!

And that includes the (comparison) price labels on supermarket shelves.

It's grow or die.

Jiffy Mix's growth depends on *changing* the minds of their potential customers (active marketing), not just fielding incoming orders (being a 'magnet'). To do that takes an OUTGOING effort, such as advertising -- in one form or another. Their pricing IS a form of them 'stating their case' in an active way --- imo.

It's not just about having a difference in the marketplace that is 'magnetic.' It's about making sure that difference gets SEEN, UNDERSTOOD, and ACTED UPON by one's potential customers!

If a company has a USP in the forest, will anyone hear it? Does the 'sound' even 'exist?'

-- TW

[GordonJ]

gja

I ask people that all the time.

They all seem shocked when I tell them the real answer.

"How many people does your website reach -- on average?"

Real answer: ZERO.

It's a trick question, in the first place.

Websites don't 'reach' anyone.

They merely wait for others to reach them.

That is backwards thinking, from a marketing perspective.

It's the type of thinking that HELPS one believe in dangerous marketing myths.

It's the type of thinking that led to the dot-com BUST.

It's the type of thinking that I'm sure causes Gary Halbert to roll over in his grave.

-- TW

[GordonJ]

Originally Posted by -TW

It's the type of thinking that I'm sure causes Gary Halbert to roll over in his grave.

-- TW

I see you are a HUGE Gary Halbert fan. I LOVED Gary. HOWEVER, regarding business...he wasn't very good at it. By his own admission. He was great at creating excitement...

but, he died a pauper...his estate unable (or unwilling) to refund the $15,000.00 in cash that people gave to him for work he never got around to doing. It wasn't that he got the money the day before he died, he held onto their money for months without delivering the goods.

I don't think anyone compares to Gary as a person able to capture people's attention and their imagination...but he really didn't offer up much in the way of "permanent" business advice. It wasn't his cup of tea.

So, as for Gary turning over in his grave...I doubt it. He didn't care all that much when he was alive. He knew how to make a buck, often quickly. He didn't know how to keep them, or how to build a business.

But TW, I see this "discussion" has you with a very clear and distinct point of view...you don't believe in "magnetic marketing" in any way, shape or form...is that about right?

gja

GH was a terrible biz person. The only reason he even survived was his instictual knowledge that active mrktng is the way to go.

I DO believe there is such a thing as magnetic marketing -- or, more accurately, there IS an advantage to becoming a 'magnet.'

For instance, having a website is usually a GREAT idea -- and vital to one's success.

What I object to is, people not putting 'being a magnet' into proper perspective. Often, on the list of things to do, it should be placed at the bottom of the list, not the top.

It produces the least amount of biz, not the most. Yes, it produces the EASIEST amount of biz -- the amount that requires the LEAST amount of work, yes.

One could even say it produces the BEST customers. But it almost never produces the MOST customers.

If you are looking to create a marketing MACHINE (which I see as the ultimate goal), then being a magnet -- or trying to -- is a losing proposition.

THAT'S the perspective from which I am jumping up + down ;-)

I just see so many people getting that wrong -- because it's so SEDUCTIVE to follow those who would have you believe in the 'magnet' myth.

It allows one to *abdicate* one's own (true) marketing 'responsibility' -- and smile blindly/ignorantly while doing so.

Cheers!

-- TW