Online Marketing vs Traditional Marketing

Summary

Johnny 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.