Sakaduski Marketing Blog

The Management Advisor Newsletter recently printed an article on the 10 Biggest Mistakes Marketers Make. Number 1 was “Handing off leads to sales–and then forgetting about them. This is something we see frequently in the dental industry. Companies are paying huge portions of their marketing budgets to attend shows such as the upcoming CDA meeting, and then failing to maximize these expenditures through solid lead management. Here are some ways you can convert hot prospects into increased revenues:

1. Train booth personnel to use a system (whether your own or one provided by the show) that captures all relevant information, including full contact information and product(s) of interest. Ideally, additional information might include level of interest (immediate purchase vs. literature gathering), dealer preference, competing products being considered, any special requirements or preferences (pediatric practice, storage limitations, instrument delivery position, etc.). A good rule of thumb is that the reps taking the leads should include any information they would find valuable if the leads were going to them.

2. Maintain a record at the home office of each lead. If sales time is at a premium (as it usually is), have a clerical worker verify the information, making sure it is complete and looking up anything that is not. Some companies may want to have this person pre-qualify the leads by calling the practices, confirming what information the dentist or staff members would like, and even asking when a sales rep might call.

3. Get the leads to the reps as quickly as possible, preferably in electronic form. Let them know a follow up will be expected and they should report back the results. If your products are sold through dealers, a process should be in place for getting copies of the leads to the proper dealer reps.

4. After a reasonable period, reps should be required to report the results of their contacts. This can be incorporated into any existing sales reporting practices.

5. Evaluate the results across the sales force and you will begin to be able to evaluate the quality of leads from the various dental meetings, the reps who need further training, and any improvements you might make in your lead generation, processing, and follow-up routines.

If you have a lead maximization practice that has worked well for you, we would love to hear about it!

If there is one single topic everyone in the dental industry can agree deserves attention, it is infection control. Ever since the Kimberly Bergalis case (the case in which a patient apparently contracted HIV from her dentist), dentists have been increasingly vigilent in the area of asepsis. The Organization for Safety & Asepsis (OSAP) has been way out in front in terms of educating dental professionals and trying to increase understanding of and compliance with infection control standards.

The annual OSAP Symposium will be held in Charlotte, NC May 31 - June 3. Educators, consultants, government personnel, industry leaders, dental professionals, and internationally known experts in infection control will gather to discuss responses to new threats such as bird flu as well as new techniques such as salivary diagnostics. This year a state-mandated program for North Carolina dental professionals will be held during the Symposium, drawing additional attendees.

If you are not already involved in this important event, you should be. Here are some ways to participate:

1. Attend the Symposium

2. Contribute an item or service to the auction, which raises critical funds for the OSAP Foundation

3. Exhibit at the Symposium- OSAP does a super job of integrating the meeting with the exhibits, assuring attendees will get to know your company and its products

Go to www.osap.org for more information or contact me through the Sakaduski Marketing website.

We have added a spam filter to our blog, so as long as there is no abuse of our goodwill, we will allow comments to be posted. Please let us know how you feel about our posts and add your own insights. If you have a subject you would like us to address, or a question you would like to pose, please let us know. We know you are out there because we keep running into people who say they are reading the blog, so let us hear from you! As always, you can contact us privately through the website or by calling 610-388-2560.

Within the dental industry, there seems to be a troubling trend by manufacturers to reduce their costs by cutting off the small dealer. It seems to be an easy way to streamline distribution and to gain support from the larger conglomorates. But wasn’t our industry built on the backs of the “Ma and Pa” dealer? Many families started in the dental business that way, and there are still dealers run by second and third generation familiy members. Our business is a people business, and many dental practices still rely on their local dealer for products and service, as well as news about new products and promotions. Nothing will reverse the consolidation that has taken place on the distribution side. But there is still a place for the small to mid-size dealer. So before you implement a stategy that calls for reduced distribution outlets, think about the people who may have been selling and supporting your product for years. They play a vital role in our business, and without them, our industry will be worse off than it is today.

Ah, Spring is in the air and the yard sale signs are popping up with the tulips. But when was the last time you spring cleaned your marketing ideas?

It is easy to fall into a “that’s the way we’ve always done it” habit when it comes to marketing. So every once in awhile it can be useful to step back and look at your marketing activities with a fresh eye. So you’ve always had a product-packed booth at the American Dental Association Meeting. What would happen if you left half the products home and instead made room for a demonstration area or for clinicians to give short talks or presentations of interest? You may find you attract fewer, but more serious buyers. Instead of rerunning the same ad, consider using an email blast to announce a new promotion or starting a sampling program. Take a hard look at your website–is it a marketing tool? Does it attract repeat traffic? Does it engage the visitor and provide useful information? Are you maintaining visibility in the market or have you gotten a little lazy about getting out press releases and dealer announcements?

As you welcome Spring, look at your company and its products from an outsider’s perspective (better yet, hire a consultant to give you an experienced, but unbiased review!). You may find there are a number of old ideas that could be swept out to make way for better, more efficient and cost effective marketing strategies.

What is a commodity? Many people would say that a commodity is a product that cannot be differentiated from the competitor’s because it is the same as the competitor’s product. In the dental market, product categories such as cotton rolls, gloves, and many medicaments might be described as commodities. But I would argue that even commodity products can be differentiated–with a little creativity.

Mask manufacturers took what was basically a commodity and created differentiation: masks in a variety of colors and patterns, masks with animal faces for pediatric use, and masks specific to certain activities or usage to name a few.

The marketer’s challenge is to take a product that has no apparent point of differentiation and create one. The obvious place to differentiate is price, but that is a poor choice as it often triggers downward price pressure and a market in which no one wins. Here are some other ways to differentiate commodity products:

1. Faster order fulfilment/shipping

2. Free shipping (preferably with a minimum purchase requirement)

3. A loyalty program that rewards customers who routinely buy your products

4. Convenience packaging

5. Money back guarantee/extended warranty

6. Cross promotion with other products (price advantages for buying products in another category)

7. Easier ordering process than the competition

8. Automatic reorder/inventory control capability

9. Willingness to inventory product for customers, allowing them to receive shipments when convenient

10. Superior educational/technical/customer support

11. Free gift with sufficient order

12. Customization of packaging or the product itself for large customers

13. Support of dental organizations/charities to create goodwill

How many more can you think of?

After the dental industry finishes an IDS meeting, there is a real uptick from European manufacturers who are interested in entering the US market. They see a tremendous opportunity based on the shear number of dentists. 5% of 130,000 potential users is a big number. In years past, the task was not as daunting as it is today. First of all, there were more US dealers, but consolidation has changed that. Secondly, currency exchange has been dramatically effected by the value of the Euro (today around $1.35). Many companies will rethink what they are doing under these circumstances. They have a few choices. They can do nothing and hope that the economic conditions change. That could be a long wait. Or they can forge ahead and make the situation work for them. Since the US works in its own ways, any new  vendor must realize that the landscape is littered with the skeletons of companies who have ignored the nuances of this market. Price is important to the US dentist but so is quality, reliabilty and the ability to get service if something goes wrong. This is a people business, and despite the increase of electronic information, the US dentist (and the office staff) like to be able to talk to someone about the product they are about to buy. Dealers in the US have dealt with many European suppliers, and want more than the same product at a better price. They need to know that adding a new product, increases overall sales, and does not just move business from one vendor to another.

The US market is a big investment, but can result in a long-term payout. If you are a new supplier, find someone in the US who can create a roadmap for success. There are a number of us around.

More and more Americans are realizing the dangers of toxins in our environment. From increasing cancer rates to rising global temperatures, the chemicals we spew from our factories, homes, and cars are damaging our bodies and our world. ”Going green” is becoming a goal, not just of a few environmental extremists, but of mainstream businesses. Recently even Walmart made a commitment to purchase organic produce.

Here’s a dentist who is doing his part: http://www.transcendentist.com.  The Transcendentist has what he claims (I believe him) is the first eco-friendly dental practice. He devotes a page of his website to explain what he is doing to protect the environment, from reducing his use of toxins to choosing wallpaper made from recycled materials.

Is your company making any effort to reduce its environmental impact? If it is, tell your customers about it (if it isn’t, it should be). Use boxes stamped “made from recycled materials. Pack them with cellulose peanuts rather than plastic and put a note inside to explain your choice. If your equipment can use nontoxic chemicals, offer them to your customers. Your dentist customers may appreciate brochures or displays that explain to their patients how your products are environmentally friendly.

As concern for the environment increases, customers will be looking for companies and products that help them “go green.” If you are able to meet that demand, you will be able to do well by doing good.

Just when I thought I had heard everything in the way of technological exhibitionism/voyeurism, I read about Twitter, an instant message program that alerts everyone–at least those who have chosen to be alerted–to what you are doing at that moment [I'm blogging and thinking I may need another shot of caffeine]. Like youtube, people develop communities of “friends.” Then they begin instantly messaging each other (in 140 characters or less) what they are up to [I'm thinking I better finish this because we have a proposal to finish this morning] as they are doing it.

What this brought to my mind is that people like to know what is going on. For companies in the dental industry, this means that customers appreciate knowing what is happening, even if nothing is. As the folks at the Dental Insider (http://dentalinsider.wordpress.com) have pointed out, some manufacturers have not been as forthcoming as they might have been during the recent dental anesthetic shortage. If there are delays, even with a single customer’s order, it is almost without exception better to own up to the delay than to leave the customer wondering. Have you had a product problem? A major reorganization? A change in distribution? Let your customers know. Think of it as good manners if you don’t want to consider it good public relations.

The platinum meridian bar for proactive disclosure was set by the Tylenol folks. At the height of the product tampering scare years ago, which revolutionized product packaging and threatened not only the Tylenol brand but the survival of the company itself, the manufacturer stepped up to the plate, acknowledging the tampering reports, laying out what it was doing to prevent future problems, addressing rumors, and so forth. The company and its brand survived.

Give your customers the courtesy of information. On your website, through the mail, or via email, keep them informed about your company, your products, and their orders. Good news or bad, let them know what is going on.

We’re just back from a client presentation in Europe. This client, like many European companies, is looking for help with entering the U.S. market. Fortunately, unlike a lot of European companies, this company realizes that it will need the help of someone who really knows and understands the American market.

Entering the U.S. market involves more than just translating literature into English. Dentists making a purchase, particularly a significant purchase, want to feel comfortable with the manufacturer as well as the product. There needs to be a familiarity, a sense of trust. Poorly translated literature, questions about access to parts and service, a website that has prices in foreign currency or that uses unfamiliar terms such as “dental surgery” instead of “dental operatory” create distance, rather than bonds, with potential customers.

This is true for American companies as well. If you can communicate a personality that customers connect with, you are halfway home when it comes to selling them a product. Consumer products companies go to great lengths to accomplish this, using personalities such as the “Dell dude,” company owners like Frank Perdue, or celebrities as spokesmen.

In the dental industry, you can convey your personality through your advertising, charitable participation, employee involvement in trade organizations, trade show exhibits, websites, literature, and by being consistent in all of your communications. A company that has done a particularly good job in this regard is Whip Mix. Whip Mix is a family-owned company based in Kentucky, and as such conveys a friendly, responsive personality that really resonates with many customers, particularly their primary base, the laboratory market.

People like doing business with people they like. The more you can connect with customers, the easier the selling process will be, no matter where your company is based.