Case study: Lao Zhang's Moving Company (4)

"Lao Zhang's Moving Company" in the third article, I think Lao Zhang is very difficult to apply Baidu Phoenix Nest to promote their business, mainly because of competitive costs. In this respect, the Bank of Heaven has put forward different views.

The 1th day shore proposed: "Apart from marketing factors, have you considered the operational factors?" Perhaps the profits of these high-priced movers are high (high prices, low relative costs)? And, of course, the cost of clicks and conversion costs (if they have a calculation) have little impact on them. The drawbacks of their own competitive advantage are also one of the factors that limit the use of better marketing methods by old Zhang. ”

Because this problem is very good, so I was reluctant to reply in direct, or pull out again into a.

Lao Zhang This series of Bowen is mainly to do the network marketing of small and medium-sized enterprises, regardless of moving companies or cafes, they face the problem has a certain degree of similarity, generally speaking is to enter the threshold of low, high competition intensity. Or a moving company for example, a car a phone several young men started. Of course, if the detailed analysis, the different moving company's cost structure marketing ability is different, can adopt the marketing strategy is also different. But to enter the threshold low this one is bound to pull down the profit margin, any industry is the same.

　　

The product life cycle theory can well explain this: in the monopolistic market conditions, product growth leads to profit growth, and profit growth is bound to attract more competitors. In the process of full competition, the market becomes saturated, and the profit margin begins to fall until the final zero.

The vast majority of SMEs are in a monopolistic market, and there is insufficient policy/resource/technical/commercial barriers to keep competition out of the door. As a result, they are less likely to enjoy profit margins above market standards. It is not difficult to verify this, and in the case of Lao Zhang's moving company, the profitability of the competitor is translucent. Just click on those ranked in front of the moving company ads, you can see the price of opponents, is basically ￥150 to ￥180 the basic cost of the car. "Famous" moving company charges will be higher, but not too high, the reason is very simple: moving after all is not a high technical content of the work, is also a car four people move bedrooms's home, the charge ￥ 300 yuan can be compared to the ￥150 service how much better? Even if the service is really good enough to attract many repeat customers ? After all, few people have moved 35 times a year. Because the homogeneity of this product is very strong, it is difficult for old Zhang to get too much profit by custom/personalized means. (Note, we are discussing here are ordinary customers, the museum moved and so do not count, because this kind of business is too small, not live old Zhang)

Of course, we can also assume that market competition tends to be balanced, the old Zhang formed the industry barriers, together to maintain a relatively high profit margins, so that they have a more adequate budget for network marketing work. But if this is the case, the competition can withstand the CPC, the old Zhang should also be able to withstand, thus intensifying competition to the CPC war to climax, and will not have not yet started on the competition compared to the failure of competitors.

Lao Zhang's Moving company is a special case, but the abstract problem is universal: that is, the vast majority of SMEs are equal/approximate level of competition. If the core competitiveness of which is much higher than the opponent, will grow into a big enterprise, play is different. If the core competitiveness is much lower than the opponents, it is obviously difficult to survive, there is no need to say more.

The day of the 2nd, "but no matter what, long tail keyword still want to try, in addition, to maintain the highest price to bear the advertisement in Phoenix Nest cover Bai, wait until the home of advertising costs, may have a short spring." ”

This contains two pieces of content: one is the long tail of the keyword, the second is to take turns charge. Let's take a look at the Long Tail theory chart:

　　

What is a long tail? The long tail is the concept corresponding to the short head, there must be a head, no head, no tail. The long tail word itself means pulling large nets to catch small fish, long tail must spread out to have value. For the moving company this industry (can call the industry?) The long tail word may be present. But for Old Zhang's moving company, the long tail word exists, this is not necessarily the case. Two long tail words are different concepts. If the industry long tail Word can provide a stable and continuous return for Lao Zhang, it is not long tail word for Lao Zhang. Industry long tail word for an enterprise/organization is not the long tail word in the account, this is entirely possible, but also search marketing managers should pursue. But in a fully competitive market environment, it is difficult to find such a long tail word. UU commented: "Can (guest) view, the customer is not aware of the search engine marketing and some semer to create the industry's CPC trend, interest-driven." Now you want to correct it, it's hard. Long tail words should not be done? It should be, a few long tail words also can not become a long tail effect, but China does not seem to have long tail market, the search for long tail words is insufficient, so, to accurately measure the long tail of the input-output ratio. "I agree with the comment that the long tail market in China may be a little bit over, but the tail is a reality."

Another trouble with the long tail word is the lowest bid min CPC. I have never had a chance to ask Baidu's friends what the minimum bid is based on. In practice, the industry's long tails are not necessarily cheap--if they fall in a "hot industry" that Baidu believes. I think this is Baidu Phoenix Nest income generation process is very simple and rough one way. There are a number of old Zhang who are scared off by the lowest bid, and these displays are wasted. The minimum bid should be based on the algorithm, and the value of the display of key words to hook up. If Baidu's idea is old Zhang a list can get 100 yuan gross margin, then I provide him with this click is worth at least 20 yuan, business did not open the idea of splitting the money is more stingy. To open the threshold of competition, 5 cents 1 dollars let the old Zhang come in, if the profit is high enough, old Zhang will certainly compete for these shows, the actual CPC. If the profits are not high enough, the old Zhang stops at the lowest CPC, which is better than the income whiteboard. The fact that the lowest CPC is too high reflects what UU says, and is the result of interest-driven. If Baidu's big customers check ROI at the keyword level, they will probably find that some key words of CPC deviate from the value of how serious the situation is. But it is good for Baidu (to eat advertising), for agents (eating point or Commission), and customers without strict ROI management (as long as the overall goal is happy), status quo. For search marketing itself, this is actually very unhealthy.

Take another look at the problem of taking turns Republicans, I cut screen a Baidu index map as a reference.

　　

Baidu index is added over weight, not real display data, here is only the comparison of different keywords to illustrate the problem. If the Beijing area one day "Ctrip" has 4000-8000 of the display volume, "Moving Company" is only hundreds of, and "Chaoyang District Move" The display is too low, Baidu Index can not give a picture. Therefore, even the "move" or "moving company" so that the comparison of generic keyword display volume is very small. Taking into account the moving company to pick up the phone business also has a scope, in the premise of fixed-point delivery, the current in the Phoenix Nest advertising moving companies to invest in the advertising budget is not necessarily huge to bear, then the old Zhang can pick up the opportunity to fall limited.

Jump back to the long tail word, the actual display of generic words and clicks are so small, long tail word is smaller, will cause insufficient flow. Lao Zhang is reluctant to spend money on the one hand and eager to bear fruit. 35 days to get a list, perhaps from the effectiveness of the cost is not bad, but may not meet the old Zhang's appetite.

In fact, the views of the bank is very exquisite, two views are inserted in the key, large customers must be worth doing, because search marketing this channel must go. However, the expectations of small and medium-sized enterprises are different, step to put the evaluation correction, but in the current market environment is not perfect under such a condition, it is really difficult. I believe that this can be done out of a piece of business, since there are so many companies in the launch, the positive return is guaranteed, the key issue is the ROI management will be the work of the mill. Can Lao Zhang make chicken nest to launch? sure. I'm afraid I'll have to weigh it.

Case study: Lao Zhang's Moving Company (3)