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The Small Business Advisor Newsletter for September, 2000

(ISSN #1089-3121)

The Small Business Advisor NEWSLETTER for September, 2000
(ISSN #1089-3121)

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CONTENTS
Notes, tips, etc
Selling on The Internet - The Rules
A new market!
Don't do this!

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NOTES/TIPS/etc
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ONLINE SHOPPING. For those of you contemplating an online store take note of Greenfield OnLine's "shopping index" of findings why consumers do or don't shop online (in order of most to least significant). Then incorporate this data into your online store design:

Reasons TO shop online: Save time, find lowest price, buy hard-to-find items, better selection, more product information.

Reasons NOT to shop online: Shipping charges, can't return items easily, worried about credit card safety, can't ask questions, screen takes too long to load, worried about delivery time.
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DOMAIN SEARCHING. Looking to check if a domain name is taken? Use http://www.betterwhois.com. This database includes all domain name providers, not just Network Solutions.
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CONSUMER PROBLEM? You can file a complaint with the FTC by contacting the Consumer Response Center by phone: toll-free 1-877-FTC-HELP (382-4357); by mail: Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave, NW, Washington, DC 20580; or through the Internet, using the online complaint form. Although the Commission cannot resolve individual problems for consumers, it can act against a company if it sees a pattern of possible law violations.
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YOUR ONLINE STORE. Lots of lessons have been learned about how and why consumers shop via the internet. Learn from these lessons and keep in mind the following and make sure you get your share of the estimated $50-Billion(!) in sales this year:

(1) The three most important features to ensure a visitor will purchase from your e-store are a) availability of a way to search for a product, b) fast and easy ordering procedure, and c) discounts.

(2) Want a customer to return? Then make sure you deliver on-time and ensue that there is a way for a customer to contact you in case of a problem.

(3) To attract customers: Provide free shipping; a first-time discount; free gifts; generous return policy.
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CHECKING LINKS TO YOUR WEBSITE. We keep getting asked how to find who is linked to a website. You can use AltaVista (http://www.altavista.com) and enter "link:www.yourdomain.com" in the search box or visit HotBot (http://www.hotbot.com), enter "http://www.yourdomain.com" into the search box and select "Links to this URL" from the drop down "Look For" menu.
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The Internet Marketing Center, http://www.marketingtips.com/t.cgi/7115 Marketing tips, strategies, and secrets for internet marketing, online advertising and website promotion that will skyrocket your small, medium or home based business profits through the roof.


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SELLING ON THE INTERNET - The Rules
by Robert Sullivan

The Federal Trade Commission (FTC) spells out the ground rules for making promises about shipping, refunds, product performance, etc. Make sure you are aware of your responsibilities.

SHIPPING
The FTC's Mail or Telephone Order Rule applies to orders placed by phone, fax or the Internet.

By law, you must have a reasonable basis for stating that a product can be shipped within a certain time. If your advertising doesn't clearly and prominently state the shipment period, you must have a reasonable basis for believing that you can ship within 30 days.

If you can't ship within the promised time (or within 30 days if you made no promise), you must notify the customer of the delay, provide a revised shipment date and explain his right to cancel and get a full and prompt refund.

For definite delays of up to 30 days, you may treat the customer's silence as agreeing to the delay. But for longer or indefinite delays - and second and subsequent delays - you must get the customer's written, electronic or verbal consent to the delay. If the customer doesn't give you his okay, you must promptly refund all the money the customer paid you without being asked by the customer.

Finally, you have the right to cancel orders that you can't fill in a timely manner, but you must promptly notify the customer of your decision and make a prompt refund.

In the case of unexpected product demand you can change your shipment promises up to the point the consumer places the order, if you reasonably believe that you can ship by the new date. The updated information overrides previous promises and reduces your need to send delay notices. Be sure to tell your customer the new shipment date before you take the order.

You must provide a delay option notice if you can't ship within the originally promised time. The Rule lets you use a variety of ways to provide the notice, including e-mail, fax or phone. It's a good idea to keep a record of what your notice states, when you provide it, and the customer's response.

WARRANTIES AND GUARANTEES
The FTC Rule on Pre-Sale Availability of Written Warranty Terms requires that warranties be available before purchase for consumer products that cost more than $15. If your ad mentions a warranty on a product that can be purchased by mail, phone or computer, it must tell consumers how to get a copy of the warranty.

ADVERTISING
Sellers are responsible for claims they make about their products and services. Third parties-such as advertising agencies or web site designers and catalog marketers-also may be liable for making or disseminating deceptive representations if they participate in the preparation or distribution of the advertising, or know about the deceptive claims.

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MARKETING TO CUSTOMERS WITH DISABILITIES

The Potential Market

According to a 1992 U. S. Census study, there are over 50 million Americans with disabilities-that's nearly one out of every five Americans. Approximately half those over the age of 65 are disabled. The more the population ages, the more likely it will be that the number of persons with disabilities will increase.

The 50 million Americans with disabilities currently control $175 billion in discretionary income, despite the fact that only 52 percent of the working-age population, 15.3 million persons with disabilities, is employed. People with disabilities who are unemployed receive public and private direct income support totaling $109 billion. As more and more individuals with disabilities enter the workforce, their purchasing power will increase.

Added to these dollars is the purchasing potential of families of persons with disabilities. A recently released study by the U. S. Department of Education, based on 1990 data, reports that of the 69.6 million families in the United States, 20.3 million have at least one member with a disability.

Except for products geared specifically to disability-related needs, this segment of the consumer market has been largely ignored. Only in recent years have advertisers of general merchandise begun to recognize persons with disabilities as an important market segment.

What You Need to Know

The first thing to remember when marketing to persons with disabilities is that they have the same range of preferences, perceptions, attitudes, habits, and needs that drive consumer behavior of persons without disabilities. Customers with disabilities have the same requirements as customers without disabilities quality products and services that meet their needs, reliability, and competitive market prices. Company outreach initiatives need to convey that people with disabilities are valued as customers. If their needs are satisfactorily met, customers with disabilities become loyal users and advertisements for the products and services. In addition to the discretionary purchasing potential that individuals with disabilities and their families may have, public and private third party payers, such as veteran service organizations, vocational rehabilitation programs, and the educational system, purchase services, equipment, and/or products for persons with disabilities. In 1993, direct service expenditures by the Veterans Administration, the U. S. Department of Defense, and the Rehabilitation Services Administration totaled $3 billion.

According to a recent General Accounting Office report, implementing the access provisions of the Americans with Disabilities Act has increased revenues in the hotel and hospitality industry by 12 percent. Other industries should take note and follow suit. Some advertisers cater heavily to the teen market, which controls only $67 billion in spending power less than half that of the disability market. A largely untapped consumer market exists, and business has a lucrative window of opportunity to tap into this market if it becomes customer responsive to persons with disabilities.

Marketing Strategy

As with any market, it is important to segment and define the disability market and to utilize a variety of strategies that include both generic and niche marketing. In developing a marketing strategy, perhaps the most important thing to remember is that people with disabilities are the only ones who really know what they need or want. For much too long, assumptions have been made for them, rather than with them.

The following ideas should be considered in a marketing strategy for consumers with disabilities:

· Test your marketing approach with people with disabilities. Select people with a variety of disabilities to be part of your strategy

· Keep an open mind about what persons with disabilities can or cannot do, want or need, to drive your marketing strategy. Advances in technology, rehabilitation, and medicine, coupled with changes in societal attitudes, make many activities previously thought impossible for persons with disabilities possible.

· Recognize the diversity of the disability market. Do not assume that one size fits all. Define why this market sector needs your services or products.

· Include people with disabilities in your product development. Remember that products geared to meet the needs of persons with disabilities often can be marketed to the public at large (e.g., the electric garage opener).

· Develop simple modifications to make existing services and products user-friendly to persons with disabilities.

· Test market your products and services with the disability community to measure accessibility and/or usability by persons with different types of disabilities.

· Develop promotional strategies that target persons with disabilities and their family members as desired customers.

· Integrate persons with disabilities in your print and television advertising. Use persons with disabilities as models, actors in your commercials, or as spokespersons.

· Include disability community newspapers, magazines, and newsletters in your print advertising budget.

· Attend and exhibit at annual consumer disability conferences, as well as disability-related conferences for third party payers and professional organizations.

· Become involved with the disability community by sponsoring and/or participating in a national or local event or project.

Resources

President's Committee on Employment of People with Disabilities:
(202) 376-6200 (tele) - http://www.pcepd.gov

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DON'T TO THIS!
by Robert Sullivan

I'm planning a driving trip in a few weeks and being a cyberhead I immediately went to the Internet for information. I had special requirements for the hotels and motels that I would stay at during the trip so I searched out places in cities and towns where I would be spending the night. I sent about 25 e-mails to different hotels (including big ones like Hyatt Regeny, etc.). To my absolute amazement only ONE (yes, one) responded with information!

The obvious question is why do these folks even have a website? What a waste of effort and money! If YOUR business has a website (and it should) make certain that you and your staff understand the importance of responding to electronic requests for information. Not responding to an e-mail is sorta like having a customer call you, ask a question, and you simply hang-up!

Don't do this. Your website can be an important adjunct to your other marketing efforts. Don't lose customers by ignoring simple requests for information. Especially when all it takes is a simple e-mail….!

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