Online Marketing vs Traditional Marketing

Comnez Inc

22 Nov 201002:51

Summary

TLDRJohnny and Joey start separate businesses with contrasting approaches. Johnny opens a physical store with high overheads and low margins, while Joey launches an online store with low costs and high profits. Over two years, Johnny stagnates, but Joey thrives and expands. Upon meeting again, Joey's global marketing insights inspire Johnny to pivot to online strategies, leading to increased profits and reduced costs for Johnny.

Takeaways

🌅 Johnny and Joey both had different approaches to starting their businesses, leading them down separate paths.
🏢 Johnny chose to open a physical store, investing heavily in traditional marketing methods such as brochures, flyers, and newspaper ads.
📈 Joey opted for an online store, focusing on digital marketing strategies like SEO, email marketing, and pay-per-click advertising.
💸 Johnny's business had high overhead costs and low profit margins, causing him to struggle with growth.
💻 Joey's online business had low overhead costs and high profit margins, allowing him to expand quickly.
📉 After a year, Johnny's business remained stagnant due to sticking with traditional methods, while Joey's business flourished and expanded.
🌐 Joey's success in the online market highlighted the importance of thinking globally, even for small businesses.
🚀 Realizing his mistake, Johnny revamped his business by adopting online marketing strategies, leading to increased profits and lower overheads.
🎯 The story emphasizes the importance of modernizing marketing strategies to stay competitive in today's market.
🛍️ The script ultimately serves as an introduction to Commes, a company offering web and online marketing services to help businesses succeed.

Q & A

What type of business did Johnny decide to start?
-Johnny decided to start a brick and mortar store to sell his products.
What were some of the initial steps Johnny took to promote his store?
-Johnny rented a building at a good location, hired salespeople, printed brochures and flyers, and advertised in local newspapers.
What was Johnny's financial situation after starting his business?
-Johnny had a high overhead and a low profit margin due to his traditional marketing and operational costs.
How did Joey's approach to starting a business differ from Johnny's?
-Joey decided to start an online store, focusing on a visually appealing website, online marketing, SEO, and email marketing.
What were some of the advantages Joey had with his online business model?
-Joey had low overhead costs and high profit margins, allowing for rapid growth and expansion.
How did Joey's business evolve over the years mentioned in the script?
-Joey moved to a new office, hired more people, and expanded his business by starting another online store with a different product line.
What was Johnny's situation after a year of operating his business?
-Johnny remained in the same building with the same salespeople and marketing strategy, still facing high overheads and low profit margins.
What changes did Johnny make to his business after meeting Joey again?
-Johnny fired his salespeople, stopped using traditional advertising, and outsourced his online marketing to a web company.
What was the outcome of Johnny's changes to his business model?
-Johnny saw increased profits and lower overheads, which made him happy and thankful to Joey for the advice.
What lesson did Johnny learn from Joey's success?
-Johnny learned the importance of thinking globally and leveraging online marketing to expand his customer base beyond the local area.
What is the final message conveyed in the script about business strategies?
-The script emphasizes the importance of adapting to modern marketing techniques and the benefits of having a global outlook for business growth.

Outlines

00:00

🛍️ Johnny's Traditional Brick and Mortar Business

Johnny and Joey decide to start their own businesses with different approaches. Johnny opts for a traditional brick and mortar store, renting a prime location and hiring salespeople. He invests in brochures, flyers, direct mail, and local newspaper advertising. Despite initial sales, Johnny faces high overheads and low profit margins, leading him to wait for growth. His business remains stagnant over the next year, with the same strategies and limited customer base.

💻 Joey's Online Business Success

In contrast, Joey chooses to start an online store with a well-designed website and a catchy name. He hires a content writer and invests in online marketing, SEO, and email marketing. Joey also utilizes pay-per-click advertising and expands his reach across the country. His business thrives with low overheads and high profit margins, leading to expansion and the launch of a new online store with a different product line.

🌐 Global Marketing Strategy

A year later, Johnny and Joey meet again, and Joey shares his new marketing strategy, emphasizing the importance of thinking local but acting global. Johnny realizes the limitations of his traditional marketing approach and decides to make changes. He replaces his sales team and old-school advertising agencies with a web company and outsourced online marketing. The shift results in increased profits, lower overheads, and a broader customer base.

🎉 Welcome to Commes: Your Online Marketing Hub

The script concludes with a welcome message to Commes, a one-stop shop for web and online marketing needs. The narrative showcases the transformation of Johnny's business and the success of Joey's online ventures, highlighting the power of online marketing and the importance of adapting to global strategies for business growth.

Mindmap

Keywords

💡Business

Business refers to the organized activities involved in the production, distribution, or sale of goods and services for profit. In the video's narrative, Johnny and Joey both decide to start a business, which is the central theme of the story, illustrating the different approaches to entrepreneurship.

💡Brick and Mortar Store

A brick and mortar store is a physical retail establishment as opposed to an online store. Johnny chooses this traditional business model, renting a building and hiring salespeople, which becomes a significant factor in his high overhead costs and low profit margins.

💡Overhead

Overhead refers to the ongoing costs of running a business, such as rent, utilities, and employee salaries, which do not directly contribute to the production of the company's products or services. Johnny's high overhead is a key challenge in his business, limiting his profit margin and growth potential.

💡Profit Margin

Profit margin is the measure of profitability of a business, calculated as the difference between revenue and production/operation costs. The video contrasts Johnny's low profit margin with Joey's high profit margin, highlighting the impact of business model choices on financial success.

💡Online Store

An online store is a type of e-commerce that allows consumers to directly browse and buy products or services over the internet. Joey opts for this modern approach, which leads to lower overheads and higher profit margins due to the global reach and reduced operational costs.

💡Content Writer

A content writer is a professional who creates written content used to inform, entertain, or promote a product or service. In the script, Joey hires a content writer to enhance his online marketing efforts, which is part of his successful online business strategy.

💡SEO (Search Engine Optimization)

SEO is the process of improving the visibility of a website on a search engine's unpaid results. Joey invests in SEO to increase his website's visibility, which is a key component of his online marketing strategy and contributes to his business's growth.

💡Email Marketing

Email marketing is the act of sending messages electronically to a group of people using email. Joey utilizes email marketing as part of his online strategy to engage with customers and promote his products, contributing to his business's success.

💡Pay-per-click Advertising

Pay-per-click (PPC) advertising is a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Joey signs up for PPC advertising to drive traffic to his online store, which helps him reach a wider audience and increase sales.

💡Growth

Growth in a business context refers to an increase in size, revenue, or market share. The video script repeatedly mentions growth as a goal for both Johnny and Joey, with their differing strategies impacting their ability to achieve this growth.

💡Marketing Strategy

A marketing strategy is a plan for reaching a business's marketing-related goals. The video contrasts Johnny's traditional marketing approach with Joey's digital marketing strategy, which ultimately leads to Johnny reevaluating and adapting his strategy to achieve better results.

Highlights

Johnny and Joey decide to start a business with their own ideas.

Johnny opens a physical store with a rented building and hires salespeople.

Johnny uses traditional marketing methods like brochures and local newspaper ads.

Johnny faces high overheads and low profit margins despite initial sales.

Joey opts for an online store with a visually appealing website and a catchy name.

Joey invests in content writing, online marketing, SEO, and email marketing.

Joey advertises on various websites and uses pay-per-click advertising.

Joey experiences low overheads and high profit margins with a wide customer base.

Joey expands his business by hiring more people and attracting repeat customers.

Joey launches another online store to sell a different line of products.

Johnny remains stagnant with the same marketing strategy and high costs.

Two years later, Johnny and Joey meet again to discuss their business strategies.

Joey shares his new marketing strategy with Johnny, emphasizing global thinking.

Johnny realizes his mistakes and decides to revamp his marketing approach.

Johnny fires his old sales team and advertising agencies, embracing online marketing.

Johnny hires a web company and outsources online marketing, reducing costs and increasing profits.

Johnny is grateful to Joey for guiding him towards a more profitable business model.

The transcript concludes with a welcome message to a one-stop shop for web and online marketing needs.