The Essentials of Marketing, Advertising and Fishing

As a little girl being raised with three Uncles fishing was a huge part of the weekend activity. There were many weekends when the whole “Webb” clan could be found at Hayesville Lake fishing, and that is where I learned the basics. You have to have the necessary equipment, granted this varies based on the type of fishing you are doing, but you must have the right EQUIPMENT none the less. BAIT is the second necessity; this too varies depending on type of fish you are going for. Third is the right LOCATION and last but definitely not least you must have PATIENCE, TIME AND ENDURANCE! These are the necessities of a successful fishing trip and there is a direct correlation between the necessities of successful fishing and the necessities of successful advertising and marketing.

EQUIPMENT: In advertising you must have the proper equipment. No, I’m not talking about software to make your own ads or to build your own website. I’m talking about having a marketing budget built into your business plan. This marketing budget should be reviewed at the minimum bi annually but ideally annually. How much should be in your marketing budget? Well, according to

“As a general rule, small businesses with revenues less than $5 million should allocate 7-8 percent of their revenues to marketing. This budget should be split between 1) brand development costs (which includes all the channels you use to promote your brand such as your website, blogs, sales collateral, etc.), and 2) the costs of promoting your business (campaigns, advertising, events, etc.).”

For more marketing budget helps for small businesses from check the resource box of this article.

Another great piece of equipment is finding someone who understands marketing that will guide you through the process. This person should be fair, honest and have a sincere desire to see your business succeed. And yes, you can find that in an advertising rep, and once you do, my advice is to treat that person as a valued friend or employee even if you don’t have them on your payroll! And remember not every advertising rep that walks through your doors will fit this description.

BAIT: When you are going fishing you have to find bait that attracts the kind of fish you are looking for. Worms and corn work pretty well for trout, it’s chicken liver for catfish and herring if you’re going fishing for the halibut! In advertising your bait has to be tailored to your potential customer as well. Your commercial whether print, television or radio should be appealing to the customer you are after. And just like when your fishing if it doesn’t have a hook inside it’s not going to work! A good ad always has a hook, a call to action, something that will spur your potential client to pick up the phone, to come to your store or at the very least visit your website. Without a hook the best bait in the world becomes nothing more than food for the fishes!

LOCATION: You wouldn’t go fishing for catfish in the Atlantic Ocean nor would you go fishing for a Marlin in Cartoogechaye Creek in Franklin North Carolina, and if you did, you would only be setting yourself up for failure. That same principle applies in marketing. It is absolutely imperative that where you choose to cast your well baited hook be the same place your potential customers hang out. For instance if you have a women’s apparel shop where the target customer is women 25-64, placing advertising on an album rock station or heavy metal station whose demographic according to is men 25-44 would be just as much a waste of your time and money as my Uncle Timmy fishing for a Marlin in a small creek in the middle of North Carolina! Another major consideration when choosing location is how many of your potential customers are there in that pool. Would you choose to fish for catfish in a pond of 3 catfish or would you rather fish in a pond that has 500 catfish in it? Well the same applies when picking your stations or mediums to advertise in. There may be two TV stations in your market that targets the same demo the decision lies in picking that one with the most eyes watching! This may mean paying a little more per ad but let’s face it you can fish in a pond for free that has no fish in it all day long and you are guaranteed not to catch anything. I’d much rather invest my money in a pond that has actual fish in it!

PATIENCE, TIME AND ENDURANCE: How many times in your life have you gone fishing and come back empty handed? If you are a dedicated, truthful fisherman you will admit there has been many and probably too many depending on how you look at it… With advertising it is the same. Don’t expect to receive ten calls the first time your ad airs, or even one! The truth is, the consumer has to build confidence that you are a real business before they will trust you enough to take the bait. That confidence generally happens in the first 3 months. And then you have to keep the bait fresh to keep them biting. That means running the same commercial for years at a time would be the same as using the same worm over and over again after it is dried on the hook. Not a good idea. Neither is putting a worm in the water just to reel it back in and head home. But, keeping a freshly baited hook out there is the best way to keep your freezer full and your business growing!

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The Fed moves up its timeline for rate hikes as inflation rises

The Federal Reserve on Wednesday considerably raised its expectations for inflation this year and brought forward the time frame on when it will next raise interest rates.

However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program, though Fed Chairman Jerome Powell acknowledged that officials discussed the issue at the meeting.

“You can think of this meeting that we had as the ‘talking about talking about’ meeting,” Powell said in a phrase that recalled a statement he made a year ago that the Fed wasn’t “thinking about thinking about raising rates.”

As expected, the policymaking Federal Open Market Committee unanimously left its benchmark short-term borrowing rate anchored near zero. But officials indicated that rate hikes could come as soon as 2023, after saying in March that it saw no increases until at least 2024. The so-called dot plot of individual member expectations pointed to two hikes in 2023.

Though the Fed raised its headline inflation expectation to 3.4%, a full percentage point higher than the March projection, the post-meeting statement continued to say that inflation pressures are “transitory.” The raised expectations come amid the biggest rise in consumer prices in about 13 years.

“This is not what the market expected,” said James McCann, deputy chief economist at Aberdeen Standard Investments. “The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary.”

Markets reacted to the Fed news, with stocks falling and government bond yields higher as investors anticipated tighter Fed policy ahead, including the likelihood that the bond purchases will slow as soon as this year.

“If you’re going to get two rate hikes in 2023, you have to start tapering fairly soon to reach that goal,” said Kathy Jones, head of fixed income at Charles Schwab. “It takes maybe 10 months to a year to taper at a moderate pace. Then you’re looking at we need to start tapering maybe later this year, and if the economy continues to run a little bit hot, rate hikes sooner rather than later.”

Even with the raised forecast for this year, the committee still sees inflation trending to its 2% goal over the long run.

“Our expectation is these high inflation readings now will abate,” Powell said at his post-meeting news conference.

Powell also cautioned about reading too much into the dot-plot, saying it is “not a great forecaster of future rate moves. “Lift-off is well into the future,” he said.

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Bitcoin plunges 30% to $30,000 at one point in wild session, recovers somewhat to $38,000

plunged 30% to near $30,000 at one point on Wednesday, continuing a major sell-off in the cryptocurrency markets that began a week ago.

The digital currency hit as low as $30,001.51 as the selling intensified Wednesday before paring some of those losses. The cryptocurrency hasn’t traded at those levels since late January.

Bitcoin rebounded as the day went on, was down 12% to about $38,205.49 shortly after 3 p.m. ET. At its intraday low, the cryptocurrency’s loss for the past week was more than 40%.

The sharp drop means bitcoin had temporarily erased all its gains following Tesla’s announcement that it would purchase $1.5 billion worth of the cryptocurrency. It was also down more than 50% since hitting a record high of $64,829 in mid-April.

Other cryptocurrencies also plunged on Wednesday. Ether, the digital currency that powers the Ethereum blockchain, was down more than 22% at $2,620.97, according to Coin Metrics. Dogecoin, a cryptocurrency that started as a joke and has been talked up by Tesla CEO Elon Musk, fell 25% to less than 36 cents. Both had substantially larger losses earlier in the session.

Additionally, cryptocurrency exchange Coinbase was temporarily down for some users as the coins plunged on Monday morning.

Negative news over the past week has dampened sentiment for bitcoin.

On May 12, Musk said the electric carmaker had suspended vehicle purchases using bitcoin, citing environmental concerns over the so-called computational “mining” process. This is where high-powered computers are used to solve complex mathematical puzzles to enable transactions using bitcoin.

Musk’s comments caused over $300 billion to be wiped off the entire cryptocurrency market that day.

Musk did suggest on Wednesday that the automaker was not selling its existing bitcoin, saying with emojis on Twitter that Tesla has “diamond hands.” That tweet was published near bitcoin’s lows for the day.
The announcement to suspend bitcoin payments came just three months after Tesla revealed that it bought $1.5 billion worth of bitcoin, and would start accepting bitcoin in exchange for its products.

Early this week, the Tesla CEO suggested the company may have sold its bitcoin holdings but later clarified that it has “not sold any Bitcoin.”

Then on Tuesday, three Chinese banking and payment industry bodies issued a statement warning financial institutions not to conduct virtual currency related business, including trading or exchanging fiat currency for cryptocurrency.

China’s hard line on digital currencies is not new. In 2017, authorities shut down local cryptocurrency exchanges and banned so-called initial coin offerings (ICOs), a way for companies in the space to raise money through issuing new digital tokens.

Traders in China once accounted for a huge share of the bitcoin market but after the crackdown, their influence was reduced significantly. Chinese cryptocurrency operations have moved abroad.

“The crypto markets are currently processing a cascade of news that fuel the bear case for price development,” said Ulrik Lykke, executive director at crypto hedge fund ARK36.

More than $250 billion evaporated from the bitcoin market alone last week, Lykke said. Though that number seems “astronomical,” such moves aren’t uncommon in the volatile crypto market, he added.

“In terms of Bitcoin’s outlook, things may be looking grim right now, but historically this is just yet another hurdle for Bitcoin to overcome and a small one compared to what it has braved in the past,” said Lykke.

Bitcoin is still up over 30% year-to-date and around 300% in the last 12 months.

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