All too frequently I hear from a product managers that his CEO just doesn't "get it." The value of Sales and Development are self-evident. The both product tangible results. When it comes to marketing, the effects appear to be nebulous at best. In fact, we see a lot of companies try to quantify the value of marketing with metrics like leads generated or market awareness scores. That is better than nothing, but unless those metrics are tracked to sales, you are still left guessing.

Recently I was able to demonstrate the value of marketing in a very short period of time, using eBay®. In preparing to sell an unusual piece of heavy construction equipment, I researched my market. I knew the ranges of prices for this item was between $8,000 and $10,000. I decided I would sell my item for $9,500.

When I checked eBay to see if any were already listed, I was surprised to see an identical unit currently available with a minimum bid of $9,500. It was one year newer than mine, and in better overall shape. It has been listed on eBay for several days with no bids.

So, here was the challenge. How do I out-market this competitor who has a better product, which wasn't selling, and still get the same price? I looked at the competitor's description and found my opportunity. Although technically correct, the description was boring. All the seller talked about was specifications. His marketing message pretty much consisted of height, width, range, and lots of features.

in contrast, I wrote a positioning statement that spoke in first person about the problems this equipment solves. I described how you could tow this equipment to your job site and be up and running in minutes. I emphasized why my unit was easier to maintain than more conventional units. instead of talking about specs, I just included a link to the manufacturer's specification page. At some point, the buyer may want that info, but I don't want to clutter my marketing message with details at this stage of the sales cycle.

As I write this, my "competitor" is just finishing his second 7-day listing. During 14 days, he has had no bids for his $9,500 item with no reserve. During my listing, I had 377 hits, 15 people added it to their watch list, and three bidders. I sold the equipment in just over four days and for my target price of $9,500.

Can the effects of marketing be documented? You bet! Prove your marketing approach against and known entity (either a competitor or even yourself). With the internet, you can get results at light speed. Once you have tangible results, you will need to promote your findings within the company so the skeptics will "get it."

Craig Stull
President and CEO
Pragmatic Marketing, Inc.