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Web Site Promotion
A Comparison of Direct Mail Catalog Marketing to Internet Marketing (2)

 

Lesson 1 of Direct Marketing

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The heavy buyers within any niche tend to know the products they are buying. They have probably read product reviews and have strong opinions about which products they might buy. Within the niche, they are informed buyers. And, they get many catalogs that offer the same products. Unless you truly have proprietary products, even if you are selling to a niche market, you are in a commodity-type business. Low-cost seller of the desired product gets the order.

Given the above lesson, how do catalog sellers with higher-quality color catalogs that are aimed more at selling rather than offering the best price survive? It is not by selling to a targeted niche! As stated, the real niche buyers tend to be price aware and know what competitor's prices are.

Catalog companies with more expensive catalogs survive, or try to, not by targeting the real niche, but rather by skimming the surface of the niche. By generating sales not to the most serious hobbyists, but by selling to the rainy-day hobbyists. By selling to those with a lukewarm interest in the area.

 

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The advantage of this strategy is that for every truly dedicated fisherman, there are probably hundreds or thousands of rainy-day fisherman. Or, sunny-day fishermen. Whatever.

The disadvantage is that these lukewarm people buy fewer bobbers. Actually, they probably buy more bobbers, and basic hooks to use with night crawlers they brought to the surface the night before by flooding their backyard with water. But, they do tend to buy fewer of the killer-must-have-high-tech lures. The ones made of plastic, but that feel like live bait. They tend not to like the idea of casting something costing $5 into the weeds. It is precisely these higher-end toys that the more expensive catalogs are selling. Not to mention depth finders and other necessities. But, the core buyers of such toys are the serious hobbyists.

It is precisely these higher-end toys that the more expensive catalogs are selling. Not to mention depth finders and other necessities. But, the core buyers of such toys are the serious hobbyists.

Lesson 2 of Direct Marketing

In addition to the real niche buyers, any market has many more less-informed buyers who are much less price aware. They like to view themselves as knowledgeable in the field under question, but at heart they are dilettantes. Also, many people who are just getting involved with a specialty area will have first marketing exposure to the area from the companies that more aggressively promote their catalogs to more general audiences. These will tend to be the more expensive glossy catalogs. [cont..]

Click here to read part 3
Click here to go back to part 1

 


Peter Hupalo, author of Thinking Like An Entrepreneur How To Make Intelligent Business Decisions That Will Lead To Success In Building And Growing Your Own Company http://www.hcmpublishing.com

 

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