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The Original 800-Pound Guerrilla
Master marketer Levinson talks about accomplishing big things on small budgets
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Business New Haven
10/4/1999
By: Mitchell Young
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Jay Conrad Levinson wrote the business bestseller Guerrilla Marketing by accident. Students in a course he was teaching at the University of California/Berkeley asked him to recommend a book on low-cost marketing. He couldn't find one, so he wrote one instead. That 1984 title was the first in a series of 12 Guerrilla books, the most recent of which is Mastering Guerrilla Marketing (Houghton Mifflin, 250 pps., $15), to be published October 15. Levinson was in New Haven [DATE] to speak to [WHO]. He also spoke to BNH.
What is guerrilla marketing?
Guerrilla marketing is pursuing conventional goals with unconventional means. There are several differences between guerrilla marketing and traditional marketing, which says you should be investing money. Guerrilla marketing says you should be investing time, energy and imagination. Traditional marketing is enshrouded by mystique; guerrilla marketing simplifies the marketing process beyond belief. Traditional marketing is always so geared to big business. Guerrilla marketing is geared toward small businesses. Traditional marketing measures its efficacy on sales; guerrilla marketing is based on profits. Traditional marketing says you should get big and then diversify. Guerrilla marketing says if you want to get big, you can, but make sure you maintain your focus.
So it's everything that Proctor & Gamble doesn't do?
No - Proctor & Gamble is doing it. But [it's] also things they wouldn't think to do, like putting signs on community bulletin boards. Guerrilla marketers learn the names of their customers and they write personal letters, not just mass mailings. The amazing thing is that the books I wrote on guerrilla marketing were written for small start-up companies. Now these companies are turning into Fortune 500 companies, calling me to serve on their board. Guerrilla marketing really does work, for small and big businesses, although every word I write is geared toward small businesses.
How can somebody create a guerrilla tactic?
Instead of looking at mass marketing, they'd think of going to individuals. For example, instead of putting a 33-cent stamp on a letter they'd put 12 stamps on it, [or] a combination of two-cent stamps. It's impossible to ignore a letter with 12 stamps on it. They used to call it one-on-one marketing. It's aiming not for customer service, but for customer bliss.
Are guerrilla marketers winning?
The economy is dividing into two. One is the huge companies, the Microsofts, the Disneys. And the other world is small businesses, which is growing even faster. Small businesses are the people who were left in the middle. They were part of middle management. They were downsized out of the huge conglomerates and they're forming their own small businesses. And because of the growth of the Internet, a lot of them are able to use online marketing to market their own businesses. Many of them are doing it from home.
Everyone know what traditional public relations is. What are some guerrilla methods?
If you talk about running an ad in Time magazine, it may cost about $84,000. But if you run an ad in your local edition of Time, because [it has regional [editions], it would run you about $2,000. Then you use that ad for the next 20 years. You use reprints of it in all of your future mailings and signs in your stores. You use the media wisely, rather than investing in a larger marketing campaign. People are learning to buy things in a new way. Online communications is pretty much free. Forget the idea of a Web site; I'm talking about e-mail, getting involved in chat rooms, being active in forums, posting messages, posting conferences, posting articles you write. It's very low-cost.
Why don't big companies use guerrilla tactics more?
Because big companies are run by people who have Stamford MBAs - or, in your case, Yale MBAs. They think in terms of traditional, and they think in terms of mass numbers. Guerrilla companies break free of that. They realize it's important to give gift certificates. They realize that advertising is not the most important thing you can do - it's only one out of 100. They engage in word-of-mouth marketing. For example, a restaurant opened in a community. They gave two free dinners to all the owners of hair salons. And those hair stylists would go back to work and talk it up. The restaurant would get very large. Big companies can't do that. They can't control word-of-mouth marketing like that.
Are large and small companies at war?
I think small businesses help large businesses. The large business can cut costs by dealing with people from the outside. They can bring in consultants, work with freelancers. These consultants and freelancers are owners of small businesses. They no longer have to have these people on their payroll because some of the best people have different values these days. They prefer to work from home. They prefer to work abbreviated hours. I've worked a three-day week since 1971.
One things you write about is a special chemistry in long-term relationships. What do you mean by that?
Large companies try to go for new customers all the time. Guerrilla marketers realize the precious nature of a customer and the lifetime value of a customer. They revere their customers as they revere their employees. They try to nurture long-term relationships knowing that it costs six times as much to sell something to a new customer. And when they do that, it brings their marketing costs down and makes their profits go higher.
You also wrote, 'Ill-advised marketing is usually the result of a personality flaw in the business owner.' Why?
People craft a marketing campaign and they say the right things to the right people. But there's a tense pressure by big business to change their marketing. They get advice from their co-workers, their employees, their directors, their wives, to change their marketing. So they do. Guerrillas realize that the key to success in marketing is commitment. The longer it's in place, the better it's going to work.
Is Guerrilla Marketing a good tool for rapid growth, or is it a good tool for stability?
It's for stability. It's not a get-rich-quick scheme. People who get rich quick have sales. And if you have sales, it's going to hurt your profit. People are just going to wait for the next sale to buy from you. Instead, guerrillas try to establish their expertise by offering to write an article for a newspaper for free. Big businesses don't do that.
What's the difference between advertising and marketing?
There are 100 different weapons of marketing, and one of them is advertising. When you are advertising, you are doing one percent of what you can be doing. You've got to think of your business stationery, the signs inside and outside of your store, your hours of operation, your window display, having a referral program, doing sales training, doing networking, offering free consultations and seminars. These things have nothing to do with advertising, cost way less than advertising, and are all part of a very sensible marketing mix.
What type of feedback do you get from people after you've given your talks?
The [most frequent question] I get is, 'How long does it take marketing to work?' They say, 'I've run an ad in the newspaper for months and nothing's happening.' I tell them that it's not supposed to happen. It takes a while to change human behavior. And that's what marketing is all about. I try to teach people the value of patience and the value of commitment. They want to know if it's important to run one big ad in a major publication for big impact. I tell them that consistency is the most important thing you do and repetition is they key to success.
A lot of people think that if they have a good product, people will pick it up. If you build it, will they come?
Absolutely not. You've got to build it and let them know that it's there. You've got to let a lot of people know and you're got to let them know many times because they don't pay attention most of the time.
You talk about finding allies in business. How do you do that?
You find people that have the same kind of prospects as you do. These people often form what's called as "leads clubs." At the end of the month they trade information on the different leads. This causes them to reach more people, but it cuts their marketing costs because they are sharing them with other people. You've got to look in your own community - but also online and globally - to find the people who have the same kind of prospects you do.
How do you play 'virtual' relationships into guerrilla marketing?
A lot of people think that if they are going to run a business that they need an office. Well, an office requires overhead. Once they realize that the name of the game is personal service, they need a cell phone, a laptop, and they need a car phone. That will enable them to keep up with their customers while not having to maintain an office. By being virtual they are very connected, they are able to render much faster service, and they are easy to get in touch with.
How can you use guerrilla marketing to get more business from big companies?
By offering to help them in areas that they may be weak in. Rather than fighting big businesses, they should carve small niches by specializing in one or two particular things.
How should these small companies present themselves?
They should present themselves as being smart, experienced, fast, and able to render very personalized and flexible service. They have to prove that even though they are small, they are very technologically aware and they're aware of the need for speed.
What are the most important tactics in a guerrilla campaign?
The first is doing the research. You have to find out who your customers are and who they want to be. The next thing to do is write a marketing plan. It's not going to be a long plan. If it's only seven sentences, it forces you to focus. Then they select the weapons that they will use - radio, television, magazines, newspapers. They realize that there are 100 different weapons, and 62 of them are free. They take the time and track their progress.
BNH
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