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Impact Radius

by Kurian M. Tharakan

Once of the most common mistakes new entrepreneurs make is not accurately determining what their Impact Radius should be.  An Impact Radius can be defined as the geographic region that your business could realistically influence to do business with you.  Many businesses may want to have a client base of millions, but one must gauge whether it is realistic to serve this customer base given limited resources.

For a bowling alley, a realistic Impact Radius could be one that contains between 50,000 to 100,000 people.  For a big box grocery store, it may be a region which contains 100,000 to 350,000 people.  For a newspaper publisher it might be the whole city, and the neighboring cities.  And for a specialty paper like the Wall Street Journal, it is at least a national radius, and may even be international.

Here’s the problem.  Most people have limited marketing dollars to get new business in the door, and it usually takes repeat exposures to a marketing message for a prospect to act upon it.  Let me demonstrate by example:

Example: $10,000 Budget.  Minimum 7 exposures needed to induce a trial purchase Audience Reach Single Insertion Cost ($5 CPM) Audience Impressions for $10,000 Spent
Publication 1 400,000 $2,000 5
Publication 2 200,000 $1,000 10
Publication 3 100,000 $500 20

With Publication 1, if we spent $10,000 we could reach 400,000 people with 5 exposures to our message (i.e. 5 insertions of the ad).  Publication 2 would reach 200,000 people with 10 exposures. And Publication 3 would reach 100,000 people with 20 exposures.

But the example also states that it takes 7 impressions to induce a trial purchase.  If we reach 400,000 people only five times (Publication 1), this will not be as effective as if we reached 200,000 people 10 times (Publication 2) or 100,000 people 20 times (Publication 3).

Realistically, a business will be better able to serve a smaller population base with its existing resources than overextending their assets with a larger one.  By focusing on the smaller population within a practical Impact Radius, you will have a greater chance of maximizing your profits.

 

About Kurian Tharakan

Kurian Mathew Tharakan is the founder of sales and marketing strategy firm StrategyPeak Sales & Marketing Advisors, a 27 year veteran of the sales and marketing industry, and the author of the Amazon bestseller, The Seven Essential Stories Charismatic Leaders Tell. He has consulted for companies in numerous sectors, including Retail, Professional Services, Manufacturing, Distribution, High Technology, Software, Non-Profit, and Life Sciences. In addition to his consulting practice, he has also been an Executive in Residence at the business accelerators TEC Edmonton and NABI where he has assisted clients with their go-to-market strategy. Prior to StrategyPeak, Mr. Tharakan was a vice president of sales & marketing for an Alberta-based software firm where his team achieved notable wins with several members of the US Fortune 500.

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“When someone loses their way, it is almost always because they have lost their story. When they regain their story, they will regain their way.” – Kurian M. Tharakan

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KURIAN MATHEW THARAKAN
Managing Director
Strategic Marketing Services


StrategyPeak Sales & Marketing Advisors
204, 10108 - 125 Street
Edmonton, Alberta, T5N 4B6
Canada

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