Thursday, December 21, 2006


Member Articles

Marketing Mistakes You Should Avoid
By Jim Cermak, President of Cermak Marketing

One thing I have noticed about big to small companies over my 20-year industry experience is that they tend to make the same mistakes over and over. And at first glance, some of these may not even seem all that bad.

Big companies can overcome some of these mistakes because of their strong customer base or overwhelming presence in the marketplace. But for small companies, these mistakes can perhaps mean the difference between success and failure. In either case, if you do them, you’re costing yourself untold gobs of time and money.

Please note that I'm not saying that these are the only or worst marketing mistakes, but these are easy to overlook...and the results can be quite damaging.

Mistake #1) Assuming the customer will understand why they need your product

Never assume that your target audience is going to automatically want what you have to offer. They may in fact need your product or service, but you have to convince them of that fact.

For example, if your target audience is people that have a home office, don’t just say, “Perfect for home offices” and assume the reader can figure out why. I know in your mind it may seem like such a logical connection (because I have made similar assumptions myself) but you never know who is going to read your ad. To play it safe, you have to go with the assumption that the reader has never heard of your product or service before and write a sentence or two connecting your product to their need. So then you’ll end up with something more compelling like, “With its compact design and affordable price, it’s perfect for home offices.”

Mistake #2) Saying the same things as your competitors

Your competitors may be excellent marketers. You may even love what they put in the marketplace and feel it is very effective. But using the same key words, graphics or messages will only make you blend in.

You need to stand apart from your competitors by telling the customers why you’re different and better! And if you don’t know what your competitors are doing, then stop your marketing and take time to do your homework. At the very least, check out your competitor’s Web sites and see what they say and how they say it. This information will put you in a much better position to draw customers with a unique, compelling message.

Mistake #3) Failing to focus

Having several different target markets that may be interested in your product or service is a great thing. However, trying to go after all of them at once can set you up for failure. Advertising to various markets can get quite expensive and complex. And using a single marketing message to varied audiences with varied needs can cause confusion.

For the greatest chance at success, focus on the target audience that provides the greatest opportunities for sales. Then do your homework! Get to know their wants, needs, hot buttons, demographics and anything else you can get your hands on and then match your offering directly to those needs. You’ll see your success rate go up substantially.

Mistake #4) Doing things once

It amazes me how many small businesses will place just one ad in a magazine, or send out a postcard one time and then take the results from those campaigns as gospel. Just because you didn’t get the results you were expecting from an ad, direct mail campaign or whatever doesn’t mean it shouldn’t be tried again.

Way too many businesses miss the boat on their advertising and marketing by trying something out one time and expecting big results. There is a reason why McDonalds, Coke and every other big consumer brand continues to spend billions on advertising. You see commercials and ads from these companies over and over year round.

Here's a question: If you never saw another Coke or McDonald’s commercial ever again, would it affect your buying habits? Answer: YES!! (What? Weren’t expecting that answer?)

Coke and McDonald’s have learned an important lesson: They continue to advertise because their competitors continue to advertise.

With all the messages that bombard us each and every day, we remember and act on those that stay in our minds, which are usually the most recent. You need to stay in the mind of your target audience, so repetition is key! And most likely they’ve never heard of your business which makes it even more critical.

Mistake #5) Being too vague or too clever

Whether it’s your tagline, headline or ad, being too vague or too clever about what you have to offer will cost you many potential customers. People don’t have time to think about or try to figure out what you’re telling them. You only have a couple of seconds to grab their attention to the point where they say “I need to read this.”

Confusion is not a good marketing tactic!

I recently came across the business card of a company named Pinnacle Enterprises. I'm not going to tell you what they do. See if you can tell. On their business card was the name of the company and their tagline, "Experience the Pinnacle Difference!" Then there was the person's name and contact information. That's it. For the life of me I cannot remember what this company does. All I have is the business card. And I'll probably just throw it away because I'm not going to take the time to call and find out what they do.

Remember, it’s okay for someone to not buy from you because what you are offering doesn’t meet their needs. But it’s NEVER okay for someone not to buy from you because they don’t understand what you’re offering.

If you find yourself making any of these critical mistakes, don't worry! Just stop, make adjustments, learn from your mistakes and become a smarter marketer.


Descriptive Trademark Potential
By James Lindon, Patent Attorney with Lindon & Lindon, LLC

Many of you reading this article may operate a home-based business that provides a service. Trademarks are not just for manufacturing businesses. A trademark, or a service mark, can help a service provider build brand loyalty. The mark can distinguish you as a preferred provider and let your customers know how your service is different from that of your competitors. The mark can be the same as the legal name of your business or may be different all together.

One potential pitfall when selecting a service mark is to select a mark that is too descriptive of the service you provide. This is important to think about whether the mark is registered with the United States Patent and Trademark Office [USPTO] or not. Consider the recent case of a business that wanted to register the mark QUALITY REFACING SERVICES. The business provided construction and remodeling services.

The USPTO denied registration of the mark because the mark was deemed “merely descriptive” as intended to be used in connection with construction and remodeling services. A service mark is merely descriptive when it immediately conveys information concerning a quality, characteristic, function, ingredient, attribute or feature of the service in connection with which it is used. It is not necessary to have the mark describe all characteristics of the service – one will do. The determination of mere descriptiveness is made in relation to the goods or services for which registration is sought, the context in which the mark is used and the impact that it is likely to make on the average purchaser of such goods or services.

In all likelihood, somebody that is denied registration of the merely descriptive service mark is faced with the prospect of having to share their mark with their entire industry. The same would be true even if there was no attempt to register the merely descriptive service mark. The problem is with the mark - not a lack of registration. That is because the mark is most likely not sufficiently distinctive to that particular service provider. The merely descriptive mark refers to a type of service or characteristic of that service, not one service provider. You want your brand of service, even if it is a relatively common service, to stand out and not blend in.

There can be a fundamental conflict that arises in advertising and the marks that are used in advertising. Think about how much money you spend, or would like to spend, on advertising. A good mark can enhance the value of that advertising. Successful advertising often uses a service mark as part of the advertising. Advertising should be descriptive – letting the consumer understand the value of the service being offered. The mark itself, however, can’t be too descriptive or it ceases to function as a mark and becomes a characteristic of the service. There can be a fine line between describing the service and indicating the source of that service in selecting and using a service mark.

The good news is that you are generally safe if you are merely describing your services and somebody else thinks you are infringing their mark. There are, as always, some exceptions. Consider the mark AMERICAN AIRLINES. That mark is pretty descriptive of the services provided, yet it has matured and acquired distinctiveness over the years and is now probably considered a fairly strong mark. As always, check with your attorney before selecting a service mark for your home-based business. Planning is key. Having a weak mark can be avoided with planning and creativity.


Past Member Articles:
Realities of Home-Based Businesses by Will Limkemann
Customer Experience as a Competitive Weapon By Jacob Mathew, Ph D., MBA

Would you like to write an article on a business topic you have in mind? Is there something you’d like to read about on this site? If so, please Colleen Beard at cbeard@gcpartnership.com with: the topic; let me know if you would like to write an article or read about something on the Web site; tell me why you think it would be beneficial to COSE Home-Based Business Network members; and send your contact information so that I can reach you.