Five Traditional Marketing Principles That Young Entrepreneurs Need To Know

In 1990s,

We all know that great changes have taken place in the world.

However, the only thing that has not changed is the nature of human beings. Therefore, young entrepreneurs will still be making the same mistake again and again.

In 1990s, direct sales were mainly direct mail (product catalogue and letter), telemarketing and TV shopping guide.

Since then, e-mail marketing, targeted network marketing, mobile phone marketing and other ways have emerged.

Enterprises adopting direct selling mode rely mainly on some reliable rules.

These rules stem from the analysis and verification of many years of sharp analysts. The analysis is based on the understanding of human nature and buying motivation.

Again, although our buying patterns may have changed, our way of thinking has not changed.

We are still driven by the same desires, and still respond like our parents and grandparents.

For example, the first time you saw the reaction of Afanda's 3-D movie was the same as when I first saw Star Wars special effects in 1970s.

In the process of new media channels and the use of advanced technology, I often find some typical mistakes, but also think of some traditional marketing principles.

Here are five rules that I value most.

Rule 1: "442" rule

The 442 rule explains the factors that influence the effectiveness of marketing activities.

The success of 40% depends on the marketing target.

40% depends on quotations or products;

20% depends on marketing creativity.

This rule was put forward by Ed Mayer, which was widely adopted in 1960s, though not applicable to all situations, but a rule I often like to mention is Ed Mel.

You will find that most of the successful sales come from pmitting the right information to the right person.

If you can find people who are most interested in your product, then the chances of successful sales are high.

There is no secret to successful marketing.

Innovation is very important.

Marketing design, color, fonts and so on have done a good job, but not enough to ensure successful marketing.

The purpose of marketing activities is the key, which is why large group buying websites are willing to spend a lot of money on this in-depth study.

In fact, I think they have found a solution, but lack of targeted products on the market.

Be sure to identify who your customers are, whether you can sell them, and whether you can find the technology they use (proper marketing channels).

Then send the right message to them at the right time.

This is the key to the success of marketing activities. Accurate application of this well-known rule will achieve successful marketing.

Rule two: RFM model

The meaning of the RFM model is: the most recent consumption (Recency, what is their last purchase time?) how often do they consume (Frequency, how often do they spend?), the amount of consumption (Monetary Value, how much money do they spend?)

The use of this traditional model is to subdivide customers.

Those customers who have recently consumed, often consume, and spend a lot of time, are the best customers.

A simple way to measure the RFM model is to set five levels for each variable, marking them from 1 to 5 (1 for the lowest and 5 for the highest), and then score each customer.

The 15 point customer is the best customer, while the 3 point customer is not profitable.

This rule has passed the test of time, because no matter what industry you are in, customers are different.

So segmentation is very important, so that you can provide them with more relevant information.

Now, there are still many enterprises sending the same email and text messages to the entire customer group. It's amazing.

These enterprises often use the excuse of "no resources", which usually means that they do not allocate their time according to the "442" rule.

Rule three: 28 rule

The 28 rule is the longest traditional marketing rule, also known as the "Pareto rule".

Around twentieth Century, Vilfredo Pareto (Vilfredo Pareto) noticed that 20% of Italy's population had 80% of the land, and then he found other countries alike.

In fact, in the business world, the 28 rule is everywhere.

In many enterprises with stable customers, you will find that 20% of customers create 80% sales or profits.

Similarly, 20% of the goods generated 80% of sales.

The same is true of Internet marketing.

In social media, if you do an experiment, you will find that 80% of the news posted on blogs, Facebook and Twitter, only 20% of your friends read it, and your 80% reply comes from your 20% friends.

Have you noticed that the industry standard of mail opening rate is around 25%? This means that only 80% of the mail is read by the 20%, which is also applicable to click through rate.

Using this rule, we can understand and understand that "a few decide the majority".

Pay attention to training customers, and strive to excavate 20% of the customers from 80% of the group.

Use this rule to continuously improve your website's click through rate, marketing efficiency and product sales.

Try to break the 28 law. Even if you can't, you can improve your sales performance.

Rule four: AIDA mode

This is also one of my most important rules.

AIDA stands for attention (Attention), arousing interest (Interest), stimulating purchase desire (Desire) and facilitating purchase (Action).

Using creative information to attract potential customers' attention (such as AdWords sponsors link), interest arises when potential customers begin to focus on the services and solutions provided by enterprises.

Persuading customers to believe that your solution is the best solution, you will succeed in stimulating the desire to buy and finally buying.

Remember I mentioned earlier that human nature has not changed? This is proof.

AIDA mode is the only way to decide when to buy.

According to the characteristics of your industry, maybe two or 2 years AIDA marketing mode will have an impact.

Whether or not you know the term AIDA, the best user experience professionals are most aware of the AIDA mode.

There are a lot of abbreviations in this article. In fact, AIDA is a user experience (UX).

The following is an excellent article written by Luis Lazaris about how to use AIDA mode in network design: http://www.noupe.com/design/the-aida-marketing-model-in-web-design.html

Rule five: price promotions > discount promotions

It is precisely because of the last rule that enterprises can continue to make profits through traditional direct selling for many years.

This rule simply shows that all things are equal, and the direct way of reducing sales price can cause greater market reaction than discount sales promotion, and bring more economic benefits.

Many people who have practiced agree.

This is about human nature.

This rule shows that people like simple and direct ways.

Consumers do not like to think, they especially do not like to do arithmetic.

Direct price concessions can be immediately understood.

And the discount needs to be calculated, sometimes it will give people a sense of being cheated.

Above are five eternal laws of marketing, which can help improve the marketing level of enterprises.

These rules will apply at any time, so remember them.

But what is more important is to remember their essence:

Remember, target customers and marketing content are more important than marketing methods.

Remember, all customers need to be treated in a small way, and a few decide the majority.

Remember, it is necessary to encourage customers to purchase.

Remember, consumers do not like to think, so marketing is as simple as possible.