Wednesday, March 3, 2010

Offering a comprehensive strategy for marketing a small business, Diamond suggested some "Quick Tips" throughout the book. Regarding websites, a "Quick Tip" advised, "make sure your website and other venues include multiple information formats, audio, video, white papers that detail a successful case study, etc. Have plenty of downloadable PDFs, articles, photos of the product, etc. Consider conducting teleseminars and webinars where people can ask questions: (p. 63).

Deliberately establishing an email marketing campaign necessitates a plan. Diamond begins her discussion about a mailing list by stressing the need for a mailing list. The choices are building one from stratch or buying one. She documented these steps to growing a list:
"Put a sign-up link for your newsletter at the bottom of all the emails you send.
Offer a free issue of your newsletter in exchange for an email address.
Put a sign-up box on your website home page (make it easy to see).
Put links to your sign-up page on everything you've published online.
Create online ads that send users to the sign-up page
Sign up for a variety of directoryt listings
Let all you colleagues and firends know how to find you online
Comment on blogs similar to your own and link back to your blog or website
Devleop coregistrations or reciprocal links with partners who have your sign-up link on their thank you page
Promote your site at speaking engagements
Hand out business cards at trade shows.
Use autoresponding tools.

To engage in a web site check, ask yourself these questions posed by Diamond:
"Has the size of your website grown substantially in the last year?
Is 25 percent or more of the contect outdated or unnecessary
Are you procrastinating about using social media marketing tactics on your site?
Does your website design reflect old business objectives--not what you are focusing on now?
Do you have 'one size fits all' content for everyone who visits you site?
Do your headlines and copy talk about features and not benefits?
Are you reluctant to determine how visitors use your site, so you don't look at any web statistics" (pp. 88-89).

Her comprehensive approach entails 7 steps:
1. Niche "narrowly define your audience segments" who will I market to? Find out their information viewing styles. Demographics psychographics persona, a cusotmer profite in order to build targeted marketing tactics . . . a profile of your customer. (Allen Cooper, 1999, The inmates are running the asylum)
2. Brand, "harnessing the power of keywords" How does my customer perceive me vs my competition identity, consistency, trust, pricing Positioning questions--am i first, am i bigger, am i the only one in my category, do I have credentials to support my claims, do I state quantifiable differences, can I redefine my product category Taglines (what is this about)
Logos
3. Story, entertaining stories from blogs, videos, and podcasts What do I tell my customer so they understand my company and product. Stories your customers care about, what do my customers worry and care aobut, what are my customer's expectations for my product or service, which media do my customers perfer (video, audio, text), where do they get their informaiton (magazines, newspapers, blogs, etc.) Capture your success stories
4. Content, "materials to educate and sell your products effectively . . . sconstant stream of new and valuable information"
5. Search, "to build a keyword list and figure out how to approach optimizing your website
6. Tactics, "social media tactics and thetried and true marketing tactics that will help you jump ahead of your competition.
7. Results"setting up your web analytics and what measures to analyze to encourage profits" (pp. 108-109).

Rating your email marketing campaign: get an independent evaluator, assess effectively of weekly or monthly mailings, audios and videofeatures to mailings, make reading your newsletter pay off for your customer every time. Always offer discounts, value free content, use your support area to launch new newsletters. FAQs and support would be a welcome change from all the marketing newletters.

Benefits of Article Marketing--establishing backlinks. One of the ways search engines find you is by the volumn of your backlinks, links that point back to your site from other places on the Web. The more backlinks you have, the higher you will rank on the results page.

Producing quality articles (p. 201)
It requires a bit of effort to continually generate quality articles, but it's worth it. There are several ways togenerate articles:
Take all the press releases, white papers, and other content you have and turn them into articles.
Repurpose your newsletter content into articles
Repurpose your blog posts into articles. (Make sure to vary the content so it's not exactly the same."
1. Focusing the business purpose should help you determine what to write
2. Decide which of the three main business purposes you are focusing on: (1) branding--concentrate on how your new product or service upholds you high standards (2) lead generation, demonstrate that youahve the knowledge to solve a particular problem (3) improved search engineranking and increased site traffic, quantity of articles and not quality.
Make the length 300 to 600 words.






Diamond, S. (2008). Web Marketing for Small Business: Seven steps to explosive business growth. Naperville, IL: Sourcebooks, Inc.

Monday, March 1, 2010

The inefficient stock market: What pays off and why (2d ed.) Robert A. Haugen

Haugen employed factors, such as dramatic changes in production, interest rates, or inflation to predict stock returns. He divided the eras of finance into three--old, modern, and new finance. He designated the theme of new finance as inefficient markets and its paradigms as "inductive ad hoc factor models" (p. 3). In addition to Haugen's use of factors, other writers applied factors for predictions of risk (Chen, Roll & Ross) and behavior (Kahneman & Tversky). Three disciplines contribute to the understanding of factor models, statistics, econometrics, and psychology.

After discrediting the other methods, Haugen detailed the expected-return factor model and the five classes that it encompasses--risk, liquidity (measures of cheapness), profitability, and technical elements. Because many factors constitute each class, I will not list them all here. One example, however, is the liquidity factors--market capitalization, market price per share, trading volume/market capitalization, and trading volume trend. The author admitted that this list did not exhaust the universe of factors, such as insider trading.

To calculate expected return with factor information, the author instructed the investor to execute the following steps: "you multiply the stock's factor exposure by the projected payoff to the factor. This gives you the component of total expected return coming from the particular factor" (p. 50). This is the formula:
factor exposure X projected factor payoff = factor component of exposure return
"After doing this for each factor, you add up all the components to get the total relative expected return for the stock" (p. 50). This calculation does not incorporate trading costs. Regarding payoffs, the author states "The cheaper the stock, the better the outlook for future returns . . . then other things--including price -- being equal, the outlook for future return improves with more profitable companies in the portfolio" (p. 47).

In the chapter, "Super stocks and stupid stocks", the author graphs the factors to demonstrate the application of his theory. First, the author charts returns on a scale of deciles of 1 to 10, based on risk. He drew six graphs, decile risk characteristics, size and liquidity characteristics, technical history, current profitability, profitability trends, and price level. Decile stocks constitute the stupid stocks and decile 10, the super stock. These stocks exist within a range between true abnormal profit and priced abnormal profit. Furthermore, the author attests that "stocks ranking low in book-to-price ratio are likely to be relatively profitable" (p. 94). Comparing value and growth stocks, the author wrote "while growth stocks have been priced as though they will be able to sustain their relative profitability, this assumption has not been validated by actual corporate performance even during the period over which they enjoyed superior performance in terms of their market price" (p. 95). The author ends by explaining the strengths of the factors, cheapness and the profitability of the company, to increase expected return.

Haugen, R. A. (2002). The inefficient stock market: What pays off and why, 2d ed. Upper Saddle River, NJ: Prentice Hall.

Cheapness Factors:
Earnings to Price Ratio
Earnings to Price Trend (five year monthly time trends throughout)
Book to Price Ratio
Book to Price Trend
Dividend to Price Ratio
Dividend to Price Trend
Cash Flow to Price Ratio
Cash flow to price trend
Sales to Price Ratio
Sales to Price Trend