How to create wealth Using Marketing?
Ever wondered how something as common as marketing can help you create wealth? Why do companies hire marketing experts and pay huge amounts for marketing? Obviously something is going on here. In this article, I will talk about the hidden features of marketing which will challenge your entire belief system so proceed with caution. I have tried to boil the concepts down to basics so that my thoughts can easily reach you. This article is meant to give you a unique angle towards understanding about marketing so it will be useful to Salesmen, Entrepreneurs hoping to start new product, Professionals, Freelancers and marketing enthusiasts.
The fundamentals of Marketing:
The law of marketing: “Marketing is about understanding the customer so well that the product fits itself and sells automatically”.
This law changes most of our beliefs about marketing. We might think that marketing is about selling the product by using paid ads. This is not marketing. Marketing begins before creating the product. Marketing means understanding the market and then creating a product according to the needs of the market.
It is highly believed that marketing begins from the customer and ends when transaction is complete. But this is a misconception as marketing includes customer retention and post sales follow up. We must build a strong relationship with the customers in order to ABC(Always Be Closing).
Many people and companies tend to create a product first and when they are unable to sell, they hire a marketing agency to boost sales. This is a totally wrong way of marketing. Had they understood the market earlier, they would’ve been able to achieve natural sales(Product sells itself).
Marketing is not a tangible object but rather a process. The main attraction is the product. A good product does not require effort to sell because then potential buyers will come looking for the product. So marketing should never be given a higher position than the product.
Marketing does help to build a strong brand in the industry. So marketing is not something that is required to be done continuously. For eg: Amazon is the number one online marketplace. So now Amazon does not need to do marketing as it already has a spot in the industry.
Marketing is different from sales and advertising. These are only a part of marketing, whereas marketing is a huge field.
The best form of marketing is word of mouth because it includes element of trust along with it.
Digital marketing vs. Traditional marketing
Digital marketing is the new way to market a product but earlier only traditional marketing was used and it worked wonders. Traditional marketing is the best way to reach a huge audience if your product is something that can be used by everyone. For ex. Detergent is used by most of the people so marketing such a product by using television or radio is a very good idea. Out of the 300 million homes in India, Approximately 200 million homes have a TV. So considering around 4–5 people per home, TV easily has a reach of 800 million to 1 billion people. The reach of digital marketing is nowhere close to this.
Also radios have a smooth reach of about 60% of the population of the country. So again, if a product is something that can be used by everyone, then traditional marketing works wonders.
Coming over to digital marketing, it is more useful when you have a product that suits only a small percentage of the population. For eg. Hostinger is a website Hosting service provider. Not everyone wants to create a website and host, so it will not be a good idea for Hostinger to do traditional marketing and run TV ads. So it uses digital marketing(Display Ads, Facebook Ads, etc.) As this helps them reach the specific population that they are looking for. So digital marketing is very effective if your product is for a specific set of population. Traditional marketing can never be underestimated because of the reach it has.
Even Newspaper has a reach of 475 million people(traditional marketing). Digital marketing is the best and easiest way to reach the affluent English speaking population of the country with spending power(approximately 100 million). So if your product targets such an audience then go for it.
The nCATT marketing Funnel
I have been very fortunate to come in contact with a formula created by digital Deepak and it is the formula of wealth
Wealth=n^CATT. This formula might change your entire perspective about wealth so proceed with caution.
n= niche. Half of your success is based on choosing the right niche. When you have a market that has a problem, and you can provide a solution to them, then you have found your niche. But a niche should be something that you like to do otherwise you might eventually stop working towards it.
C= Content. Create content for the market to view(Blog posts, Youtube Videos, Live Webinars). This content should be preferably free, because through free content only can you reach a wider audience as no body would want to buy a product from a random person. It is only through free content that people will come to know that you are the real deal.
A= Attention. Now that you have the content in place, its time to drive attention to it by using different means like SEO(Search Engine Optimisation ), SEM(Search Engine Marketing)/ Paid ads, etc. Only when people actually come and view your content, will they be able to access your worth and the value that you provide.
T= Trust. When the audience begins to view your content, then they will be able to trust you and the information that you provide. If the tips that you have shared start working for them, then you have gained their trust.
T= Transaction. With the earlier stages in place, now the audience is craving for more content from you. This is the point where you can now charge for your content. This stage is known as transaction. Effective transactions require sales pages, Sales call, Follow up emails, etc. The more that the audience has trust in you, the easier it will be for you to complete the transaction.
When you feel like you have saturated in a niche, you can use the profits earned from the transaction phase to invest in a new niche and this cycle goes on. So it is a repetitive cycle that can go on and on and on. This was the secret formula for wealth.
The formula is a power formula. So the wealth will increase exponentially if we increase things like quality of content, Drive more attention to content, Build greater trust, Increase the rate of transaction. This is self explanatory.
Integrated Digital Marketing
When we set out to perform a task, it is not possible to complete it in isolation. Many factors are at play during the process. For example, cooking pasta requires you to boil the pasta, prepare the sauce, stir the ingredients while heating them and finally present the pasta in a fancy plate. If we think that only boiling the pasta means preparing pasta that is delicious, then we are mistaken. Similarly when working to get profits out of the work you do for your niche, requires the functioning of many different factors at once. Many of the people starting out will only put the maximum attention on Social Media and then wonder why they don’t make sales. Some will put attention on Website and wonder the same thing. Email marketing is a powerful tool but of no use if used in isolation. These tools have to work together if we want results.
This is the gist of integrated digital marketing. So instead of focusing only on social media, try putting some effort into building an email list and more content. Remember, “If you want to change your outcome, you have to change the process. If you don’t change anything, nothing will change.”
A trick that digital Deepak uses, he promotes his free content by using paid advertising. This is a total loss to him and many will fear such things, but calculated risks are safe. When he gets audience on his free content, they understand his worth. Then they sign up for his email list. Now whenever he creates content, he sends out an email to his email list and they visit his website to view content. If people like his content, they might share it on social media, then he will receive traffic from there also. Since people have visited his website, the Search Engine will notice this and start ranking his website.
In conclusion, he has been able to get traffic from various sources just by thinking from basic principles. He used paid advertising to build email list instead of selling products. Then he used email list to promote social media and also help with SEO. This would not have been possible in isolation. This way integrated digital marketing is superior when as compared to other methods.
Personal Branding:Mass Trust Blueprint
Personal Brands are not built in a day, they take entire lifetimes. It starts with the person and ends at the person. To build trust with your audience, you have to be genuine and the audience will come to know about this only when you pass through an evolution phase. This phase is known as the mass trust blueprint. Anybody can become an expert through this process.
Learn: First you must learn what it is that you wish to teach to the world. The process of learning is never ending. “Only he who learns can finally provide/teach.”
Work: Things seem pretty simple when we only know a fraction of it. Our knowledge about anything will improve only when we start to use that information and implement it. Some information will only come to our focus when we begin to actually put that to use. Otherwise it will seem as though we have been theorising and nothing is practical. When working, we find some shortcuts, some defects and also some false statements. These things force us to learn even more
Blog: When we write about something we learnt, then there is a deeper understanding about it. If we learn something, then work and convert knowledge to action, the world will crave to hear what we have to say. This is so because we will be experienced, and the fact that we can actually organise our knowledge will automatically attract attention from different people.
Consult: The next step is to consult people. Those who have read your blog will understand your worth and will be ready to have a 1 to 1 consulting call so that you can help them solve their problems. These clients will be ready to pay you fees for your time. There are companies that earn thousands of dollars by just consulting.
Mentor: Now that you have the entire system in place, mentoring will still be a huge obstacle and something totally different. While mentoring, it would be efficient to speak in general terms. This feels very awkward at first. While mentoring, we must boil topics down to the basics so that it becomes very simple to comprehend.
Startup: When we pass through the above steps, then it will be time for the startup phase. We would be required to bring a team together and put in the effort to scale our product and ideas to reach a huge population.
This was the mass trust blueprint. By passing through this evolution phase, we will finally be able to reach a huge list of potential customers who also have trust in the value that we provide to them. Completing the CATT funnel will become easier if we have “Mass Trust”.
How to Make your financial dream come true:
Here comes the intersting part:
It is very important to set a goal for your monetary needs. Let’s say you wish to earn 1 Cr rupees. Now that we have a number on our goals, we have overcome one obstacle. Now the next step is to divide the goal into small achievable parts.
The following part will involve a little bit of mathematical calculation so bear with me
Let’s go back to the 1 Cr example. So 1 Cr can be divided in the following ways:
1 X 10000000
10 X 1000000
100 X 100000
1000 X 10000
10000 X 1000
100000 X 100
1000000 X 10
10000000 X 1
And many more ways by using other numbers.
With a population of more than 130 Cr people — it will not be too hard to find like 3 Cr people who are really interested in what you have to sell. Also with a 1 re product, it will sell to around 1 Cr so aim reached.
This is a way to simplify our goal. So now we have to make a product of Rs 1 and sell it to a crore people and that way we make 1 Cr rupees. This formula can be used to set your own financial goals.
This seems too good to be true. But is it really? So the idea is simple but the process is quite the contrary.
Now a common question might pop up in your mind. A product is not free. It has a cost attached to it. So now we can dive deeper into this topic. Another cost to consider is the income tax.
As of right now the income tax for Rs. 10 lakh and above is 30%.
So if you want to earn 1 Cr in profits then we have to add the income tax to it.
1 Cr after tax=1.428 Cr before tax.(1.428 Cr — 30%=1 Cr)
We have to earn 1.428 Cr in revenue.
Wait! I almost forgot. The cost that is linked with a product should also be included to this. If your product of rupees 1 costs you 40 Paise to manufacture and sell then total cost for 1 crore products will be 40 lakh
Total money now is 1.428 Cr + .40 Cr = 1.828 Cr
So selling price for each product will be 1.828 Cr/1 Cr= 1.828 (approximately 2)
So with the adjusted goals — the price of product will be 2 Rs.
You can adjust your goals accordingly and work backwards. Make a plan. Working towards it will become easier.
Also if you have quality products, then the customers will also be willing to purchase future products and services that you have. You can sell these customers a higher priced product. This will reduce your ad spend and profits go up.
Further information in blogs to come!!
