Love them or hate them Apple is about to do it again. The new iPhone 5 will be available later this month and at a glance it’s just a slightly taller iPhone4. But that’s why it’s so brilliant. iPhone is the most precious asset in a company full of precious assets. It’s the best selling phone on the planet so why would Apple stray from the formula? Sure to some the new iPhone 5 looks like Apple’s attempt at a pre-Christmas money grab but that’s also why they are masters at the business of business. Consumers are pre-programmed to spend money leading into the Christmas season so what better time to launch the next chapter of the most successful story in cell phone history.
The iPhone 5 will be on shelves on September 21st, which is one week before Apple’s fiscal year ends and the holiday quarter begins. How important are those three months to Apple’s bottom line? Last year during the same period, the iPhone 4S drove Apple’s fiscal first quarter smartphone sales to 37 million units, and an overall profit of $13 billion. To put that in context, that’s more money than Google made in all of 2011. (source: gizmodo.com)
Consumer trends are paramount in the marketing world and we can all take a lesson from the leaders at Apple. Having a great product is only step 1. Where, when and how to deliver that product can be the mega-factor for success. It’s why Apple stores at the mall are jam packed while all other stores seem empty by comparison. Apple gets people engaged in their product right from the get-go by getting the consumer base into a frenzy. Launching a product when people are primed to buy sets the tone and creates demand. From there the loyal consumer brand advocates carry the torch and Apple can turn their focus to the next thing – probably the iPhone 6. Which will, in all likelihood be just a marginally improved iPhone 5.
Here’s a great article on it from Gizmodo.com http://bit.ly/QXRZUA
Hiring a marketing company to save you money, seems contradictory but consider this: most businesses trending towards, or already at $1 million in annual revenue, are losing money by not working with an agency partner. How? By hiring one person designated to “marketing”. This one person time and time again gets overloaded with all the bits and pieces of corporate marketing. Everything from website updates to business cards to somehow trying to generate new business. There is no realistic way to accomplish a proper marketing plan with one person – unless you want them to burn out.
We look at it like this: in Company X they have one full-time staff member who does marketing. This person gets overloaded with work and others–usually Sr. Managers or even Exec’s–need to do some of the leftover work. Now, how much is each person’s time worth? The marketing person is paid a salary but they have too much work so other people are spending time in their day helping out. Let’s say 10% of the day from 2 other managers is also used up for “marketing”. That’s one full-time salary plus 20% of management’s salary dedicated to marketing. That adds up to one full day of management time lost to “marketing” each week. What is it worth to have your managers doing what they do best and not trying to spread too thin? In most businesses, it’s worth a lot.
Here’s a look at the numbers:
Let’s say in Company X the marketing person makes $65,000/yr and the managers make $100,000. That means that annually Company X is spending $65,000 on marketing PLUS an extra $20,000 from the managers. So in real terms, there’s a marketing budget of $85,000 that Company X is paying out. And for this fee they still carry all of the overhead: source deductions, vacation pay, computer equipment, benefits… you get the idea. Is there a better way to use that $85k/year – yes. Not only does an agency partner give you access to all ranges of experts (designers, programmers, copywriters, SEO specialists) but you get real “experts”. No single person does it all.
What does it mean for businesses:
Hiring Erickson Group offers you the best of all worlds. You get to use your marketing budget much more efficiently. Your full-time staff remain focused on what they do best while your business gets access to specialized experts which makes for a better product. You get the write-off expense instead of added overhead. If you are a company operating under the antiquated ideal that marketing must be done in-house I invite you to call our office and let’s chat about how we can help. Often times there is still an internal “marketing” person but now their focus is streamlined and simplified and they coordinate with our group directly. It’s a beautiful system and our clients are seeing benefits in all industries.
If you’re ready for a change that will elevate your brand, reduce your overhead and alleviate stress – it’s time for a chat.
If you’re an MBA at Business School right now, stop studying for that Accounting test next week. I’m going to make it much easy for you to succeed in your career. Assuming you get your degree, you’re going to have a basic… full article