Transcript want cash? do branding!

Want CA$H?
The Keys to Building More Value
into Your Business
(ESB Presentation Version—No Animation)
Presented by:
Edward S. Balian, Ph.D.
© 2003
Gemological Institute of America
and
Edward S. Balian, Ph.D.
For your notes….(optional pull out)
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For your notes….(optional pull out)
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(c)2003 GIA and E.S.
Balian,Ph.D.
Dr. Ed Balian….
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Q-Stat started 1977
Owned numerous companies; corporations
Started, maintained, bought & sold businesses
School of Business professor since 1976
Authored: textbooks and software
Consulted with over 60 companies to date; large & small
Former Dean of GIA School of Business
Over 500 instructional seminars presented, including
Harvard Business School
(c)2003 GIA and E.S.
Balian,Ph.D.
I Welcome Three Groups
that are Before Me Today:
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Those wanting (or
praying?) to BECOME
millionaires
Those who ALREADY
ARE millionaires, now
wanting to become
MULTI-millionaires
Those who already are
multi-millionaires
(Let’s do LUNCH!)
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(c)2003 GIA and E.S.
Balian,Ph.D.
I Promise You…..
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BIG MONEY—TODAY!
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No tricks—it takes:
Hard work, YES, but
also:
Spending your time
efficiently, on the
“RIGHT STUFF!”
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(c)2003 GIA and E.S.
Balian,Ph.D.
Keep It Simple, Stupid
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(c)2003 GIA and E.S.
Balian,Ph.D.
YES---we all know this
catchy and cute
saying, but when it
comes to today’s
complex business
challenges, it is,
UNFORTUNATELY, just
not so “simple”
anymore.
Questions that “DRIVE” the
Creation of Your Success: (1)
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WHAT are you driving?
WHERE are you
going?
HOW and WHEN are
you moving forward?
How FAST will you go?
When will you know to
SLOW DOWN?
Note that the size, style or cost of “car,”
(i.e., your business) does NOT matter--You still need knowledge and control
of your MARKETING PLAN to
move it where you want to go.
(c)2003 GIA and E.S.
Balian,Ph.D.
Questions that “DRIVE” the
Creation of Your Success: (2)
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How will you measure
your business’
EFFICIENCY?
If inefficient, will you
blow your cool?
Will you be glancing
back or moving
forward? Both?
Can you avoid panicstops?
Note that the size, style or cost of “car,”
(i.e., your business) does NOT matter--You still need knowledge and control of
your MARKETING PLAN to move it
where you want to go.
(c)2003 GIA and E.S.
Balian,Ph.D.
Major Points Today:
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Ways to Operate Your Business
The Power of Marketing Working for You
How Market Research Will Help You
The 4-P’s of Marketing
SWOT Analysis
A Marketing Plan
Branding and its Ultimate Power to You
(c)2003 GIA and E.S.
Balian,Ph.D.
There Are Two Basic Ways to
Operate Your Business….
SO, CHOOSE:
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(c)2003 GIA and E.S.
Balian,Ph.D.
Think OUTSIDE the Box:
 The
guy who
invented the
wheel….
Be creative and courageous---but not crazy!
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(c)2003 GIA and E.S.
Balian,Ph.D.
Need Proof-Positive?
Fair Enough!
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When MARKETING is applied CORRECTLY:
SUCCESS HAPPENS: SUCCESS HAPPENS:
A senior-citizen, fictional rodent now owns
ABC Broadcasting, Touchstone Movies, and
countless mega-resorts, worldwide.
A “Diamond is Forever” is recognized by
99% of those within the company’s
industry; 78% of those not in the industry.
(c)2003 GIA and E.S.
Balian,Ph.D.
Diamonds or Football?
The “Game” is the Same:
BRANDING!
DeBeers
DaBears
BOTH “BRANDING” Identities are Quickly Recognized!
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(c)2003 GIA and E.S.
Balian,Ph.D.
In over 60 Years of Marketing &
Branding, He Has Done Quite Well!
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(c)2003 GIA and E.S.
Balian,Ph.D.
No More “Mr. Nice Guy:”
Mickey Mouse STRIKES:
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Disney challenges town library's new mouse
logo:Story Posted by Blake on Saturday June 22 2002, @
11:39AM -- Read 1927 Times.
from the Corporate-Greed dept.
A Sad Story from FL says Walt Disney Co. officials have until
July 30 to decide whether to challenge the Genesee District
Library's mascot for an alleged similarity to Mickey Mouse.
Last summer, the library submitted a trademark registry request
with the U.S. Patent and Trademark office for "Book Mouse," a
blue, large-eared rodent wearing red-rimmed glasses and a
backpack. Book Mouse appears on bumper stickers and in
coloring books, and even marches in local parades.
Library attorney Pxxx Pxxxx said "I don't think we cut into their
movie profits this last year." Disney owns FL. They will win this
one. Similar case in FL with a daycare center-they were trounced by
the Mouse Machine.
(c)2003 GIA and E.S.
Balian,Ph.D.
Need Proof-Negative?
Fair Enough!
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When MARKETING is applied
incorrectly or not applied at all,
DISASTER HAPPENS:
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1972 Chevrolet Vega vs. Honda Civic
1959 Edsel (Ford) vs. Anything
Beta-format video tape (Sony) vs. VHS
“New” formula Coca-Cola vs. Classic Coke
(Notice that ALL the above were large, multinational corporations---so what? They can error,
(c)2003 GIA and E.S.
too!)
Balian,Ph.D.
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So, At This Point,
We Just Need to….
…and CONSIDER:
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(c)2003 GIA and E.S.
Balian,Ph.D.
Critical Steps…..
1.
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3.
4.
5.
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Use Sound Business Practices
Learn & Understand Your Target
Market, then:
Refine Your 4-P’s, thus Leading to:
Creation a Marketing Plan
Branding of Your Business Name
(c)2003 GIA and E.S.
Balian,Ph.D.
TARKET MARKETING:
You MUST KNOW YOUR CUSTOMER BEFORE You
Can Effectively Promote Your Business
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COSTLY ERRORS if you “just guess,” no matter
how confident you are in being correct.
Your current “success” is a poor measure---how
much better still COULD it be?
In today’s new, highly competitive global
environment, no one can afford to GUESS
WRONG. The “expense” of doing research is a
myth. The cost of not doing it could result in
Chapter 7.
(c)2003 GIA and E.S.
Balian,Ph.D.
Market Research POWER
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Always learn more about HOW YOUR
PRODUCT/BUSINESS is perceived by potential
customers. Don’t just guess!
WHO are your customers?
WHERE are they?
HOW do they behave? (Travel? Read? Do? Internet?)
HOW will they know about and/or care about your
products or services?
THE ANSWERS TO THESE QUESTIONS WILL
DEFINE YOUR TARGET MARKET
(c)2003 GIA and E.S.
Balian,Ph.D.
Product (by DeBeers):
3-Stone Anniversary Ring
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A PRODUCT target
marketed to Baby
Boomers, but
obviously NOT
Boomer-newlyweds.
DeBeers “BRANDING”
adds the “trust”
dimension.
(Courtesy: DeBeers)
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(c)2003 GIA and E.S.
Balian,Ph.D.
Can You Suggest the TARGET
MARKET(S) for This PRODUCT?
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3 Emeralds in
Platinum Mount
(Courtesy: DeBeers)
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Suggest the TARGET
MARKET(s) for this
Product.
(Narrower or wider
target than 3-DIAMOND
target market?)
(c)2003 GIA and E.S.
Balian,Ph.D.
First-Hand Data?
First-hand (Primary) Data:
Surveys, POP/receipts data
 PRO: Customized for you and your
business
 CON: Can be slower and sometimes,
expensive.
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(c)2003 GIA and E.S.
Balian,Ph.D.
Second-Hand Data
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Second-Hand (Secondary) Data: gov’t data,
published industry trend data
PRO: Fast, less costly
CON: Not specific to your products or
services, questionable quality, not under
your control
(c)2003 GIA and E.S.
Balian,Ph.D.
The 4-P’s of Marketing….
Product
 Price
 Placement
 Promotion
This is NOT “mumbo-jumbo,”
they lead directly to higher profits through
greater efficiency of your business.
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(c)2003 GIA and E.S.
Balian,Ph.D.
The Building Blocks:
The 4-P’s of Marketing
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PRICE: Wal-Mart, Dollar General Stores,
Cartier, Tiffany
PRODUCT & PROMOTION: Ford T-Bird went
from 2-seater to 4-seater, DeBeers
PRODUCT, PROMOTION & PLACEMENT:
Tiffany, Pet Rocks, Cabbage-Patch Dolls
PROMOTION: AVIS Car Rental, Zales
(c)2003 GIA and E.S.
Balian,Ph.D.
P1: PRODUCT
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ESSENTIAL: Is your Product or Service in demand
by a particular (targeted) market? MARKET
RESEARCH may help.
NOT ESSENTIAL:
Unique?
Necessity or Discretionary?
Alluring? Fun?
Packaged “Correctly?”
Has Potential to Expand into Larger Product Line
(Variety & Assortment)?
You DON’T NEED
allGIA(or
of these, necessarily!
(c)2003
and ANY)
E.S.
Balian,Ph.D.
DeBeers and Product Expansion
 DeBeers
print
ad (October,
2003)
promoting
“RIGHT HAND
RINGS” to
women for
women.
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(c)2003 GIA and E.S.
Balian,Ph.D.
Who Started with Only THIS, then
EXPANDED their PRODUCT Line?
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(c)2003 GIA and E.S.
Balian,Ph.D.
Follow-up “Product,”
Customer Service, Nearing
Extinction?
USA TODAY, September 30, 2003,
Headline: Drop in Traditional “CUSTOMER SERVICE”
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(c)2003 GIA and E.S.
Balian,Ph.D.
P2: PRICE
(aka, “The Goldilocks Syndrome”)
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Is the PRICE reasonable vs. competitors?
Tangible vs. Intangible “value” to customer vs.
selling “price.”
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Is “low price” (or customer PERCEPTION of low
price) a selling point? (Wal-Mart)
Is high price a selling point? (Tiffany)
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MARKET RESEARCH to price it “just right”
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(TIFFANY SILVER HARMONICA vs. WAL-MART Earrings)
(c)2003 GIA and E.S.
Balian,Ph.D.
PRICING from Tiffany & Co.
Diamond Engagement Rings:
$1,000 to
$1,000,000
(As per website information)
(Courtesy: Tiffany & Co.)
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(c)2003 GIA and E.S.
Balian,Ph.D.
P3: PLACEMENT (aka, “Distribution”)
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(c)2003 GIA and E.S.
Balian,Ph.D.
How hard do customers
need to look to find you—
including .com sites. (Travel
the world? Tiring!)
How badly do customers
think they NEED to find
you?
What are your costs
regarding placement: store
location(s), internet, etc.?
MARKET RESEARCH will
help answer these
questions.
P4: PROMOTION
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“Promotion” potentially may include many
elements:
Press Releases
Print Ads
Radio, TV Ads
Community Sponsorship
Word of Mouth
“On Sale” Clearance Campaigns
Training for In-Store Sales Associates
And more….
(c)2003 GIA and E.S.
Balian,Ph.D.
Let’s Look at Each of the 4-P’s,
One at a Time, Using a Few
Real-World Examples….
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(c)2003 GIA and E.S.
Balian,Ph.D.
The 4-P’s at ZALES
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Let’s Discuss:
PRODUCT
PRICE ($299)
PLACEMENT
PROMOTION
(Courtesy: Zales)
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(c)2003 GIA and E.S.
Balian,Ph.D.
The 4-P’s at Wal-Mart:
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Let’s Discuss:
PRODUCT
PRICE ($299)
PLACEMENT
PROMOTION
(Courtesy: Wal-Mart)
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(c)2003 GIA and E.S.
Balian,Ph.D.
The 4-P’s at J.C. Penny
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Let’s Discuss:
PRODUCTS
PRICE ($499)
PLACEMENT
PROMOTION
(Courtesy: J.C.Penny)
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(c)2003 GIA and E.S.
Balian,Ph.D.
The 4-P’s at Starbucks:
Let’s Discuss:
 PRODUCT
 PRICE
 PLACEMENT
 PROMOTION
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(Courtesy: Starbucks)
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(c)2003 GIA and E.S.
Balian,Ph.D.
Let’s Go Back and Study Types of
P4: PROMOTION in More Detail
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(c)2003 GIA and E.S.
Balian,Ph.D.
Press Releases
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PROS:
Relatively low cost mailings
Can reach wide audiences
with your informational
message
Can word articles the way
you want
Can help build future PR
contacts for later re-use
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(c)2003 GIA and E.S.
Balian,Ph.D.
CONS:
Publications only run your
press release if they want to
No fine “targeting” of your
audience in most cases
You have no control over
editing
You have no control over
dates of publication
Must be “newsworthy”
Print Ads
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PROS
You personally create
your message and
image
No edits or alterations
Can be highly targeted
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(c)2003 GIA and E.S.
Balian,Ph.D.
CONS
Lead-time is
considerable
Gen X & Y are already
“turned off” by typical
print ad messages
Production cost can be
very high
Ad placement costs
can be very high
Community Sponsorships
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PROS:
Demonstrates your
involvement in
community, by name
and spirit
Local audience
targeted
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(c)2003 GIA and E.S.
Balian,Ph.D.
CONS:
Very limited “eyeballs”
on your name and
product/service
Potentially high cost
relative to small
audience
Could be perceived as
“small time” business
Radio & TV/Cable Ads
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PROS:
More “human”
approach with voices
and/or images
Allows excitement and
energy not found in
other approaches
Potentially huge
audiences
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(c)2003 GIA and E.S.
Balian,Ph.D.
CONS:
Gen X & Y just not
interested in typical ad
messages
“Bathroom Break” queue
Potentially very high cost
Audience may be too wide;
results in an inefficient
approach to target
Poor ad can result in
disaster—risk is high
“Positive” Word of Mouth
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No direct cost!
Personal testimonials
between friends are
powerful and credible
Pyramiding
(c)2003 GIA and E.S.
Balian,Ph.D.
“Negative” Word of Mouth
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Pyramiding
Danger: Just one bad
experience by ONE
“crying” customer can
be disproportionately
harmful to your
business
Whether the complaint
is actually valid or not
is immaterial
(c)2003 GIA and E.S.
Balian,Ph.D.
Training for Sales Associates
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MOST COMMON comments from my
students entering a retail operation on
assignment:
“I wasn’t treated well…”
“I was ignored”
“May I help you/No, I’m just looking,
thanks.”
(c)2003 GIA and E.S.
Balian,Ph.D.
SWOT Analysis
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Existing In the Present:
S= STRENGTH (how will you maximize it?)
W=WEAKNESS (how will you attack it?)
Potential In the Future:
O=OPPORTUNITIES (how and when to
capitalize on it?)
T= THREATS (how will you defend against it?)
(c)2003 GIA and E.S.
Balian,Ph.D.
Houston---
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(c)2003 GIA and E.S.
Balian,Ph.D.
WE HAVE A
PROBLEM:
With all these
marketing issues
and without
millions of dollars
behind us, how do
we find our
DIRECTION?
Until You Have A Marketing Plan….
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(c)2003 GIA and E.S.
Balian,Ph.D.
We MUST HAVE a “MAP” or
MARKETING PLAN to Move
Forward Intelligently
WOULD YOU TAKE A MAJOR
ROAD TRIP WITHOUT A MAP?
THE “MAP” IS CALLED A
“MARKETING PLAN.”
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(c)2003 GIA and E.S.
Balian,Ph.D.
The MARKETING PLAN
Takes into Account:
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WHO we are trying to reach (Target Market)
HOW we want to reach them
WHERE the product will be available
WHAT the MESSAGE needs to be (ad copy, images)
HOW MUCH $$$ is in our MARKETING BUDGET (per
Pro Forma P&L, Cash Flow, Balance Sheet)
SWOT Analysis
AND WHEN will the action happen, per a TIMELINE
(c)2003 GIA and E.S.
Balian,Ph.D.
Marketing Plan Quick-Tips:
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Concentrate on a “do-able” population and scale.
Be realistic in expectations.
Do an accurate SWOT, not “Pie in the Sky”
Stay the course; use your “map,” do not
unnecessarily “change direction” or make
adjustments to name or logo without quality
research behind it.
The Marketing Plan we follow MUST be thought out
and researched FIRST, not last.
(c)2003 GIA and E.S.
Balian,Ph.D.
Back to Where We Started in
Today’s Presentation:
Branding!
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MARKETING = POWER
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The sum of your marketing 4-P’s and
Marketing Plan will ultimately build your
“BRAND” (either one way or the other!)
Solid and positive BRANDING will
ultimately provide huge added value to your
name, your business and your products or
services= ADDED NET WORTH.
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(c)2003 GIA and E.S.
Balian,Ph.D.
In Review…..we discussed:
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Your Choices in How to Operate a Business
The Power of Marketing
Target Marketing through Market Research
The 4-P’s of Marketing
SWOT Analysis
Your Marketing Plan, Ultimately Leading to:
Branding and its Long-Term Value
(c)2003 GIA and E.S.
Balian,Ph.D.
Adding Net Worth to
Your Business
 The
Balance Sheet:
 Assets
 Liabilities
 “Balance:” Assets=Liabilities
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(c)2003 GIA and E.S.
Balian,Ph.D.
Ingredients of the Balance Sheet
(Simplified):
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ASSETS
Cash on Hand $100,000
Accounts Receivables
$200,000
Hard assets $400,000
Other assets $100,000
Branding, Logo,
Trademarks, “Goodwill”
$200,000
Adds up to:
 $1,000,000
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LIABILITIES
Accounts Payables $200,000
Other liabilities $100,000
Net Worth $700,000
Adds up to:
 $1,000,000
(c)2003 GIA and E.S.
Balian,Ph.D.
Branding and “Goodwill” to Build
Your Net Worth
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Branding
Trademark
Logo
Name Recognition
(c)2003 GIA and E.S.
Balian,Ph.D.
How Might I Further Assist YOU?
It was my pleasure to meet you today!
Best of luck in all your future
endeavors!
Stay in touch!
[email protected]
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(c)2003 GIA and E.S.
Balian,Ph.D.
Contact Me….

For a set of my
presentation notes (in
PowerPoint only):
Email:
[email protected]
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(c)2003 GIA and E.S.
Balian,Ph.D.
NOTES…………..
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