It's time to take another look at the presidential campaign from a marketing strategy perspective. I've said before that election campaigns are the ultimate marketing challenge. You're not trying to influence decisions over a period of time. You're trying to influence a single decision at a single moment in time. The only thing that counts is the state of mind of the voter at the moment they cast their vote.
That's what makes political campaigns great case studies. I think one of the biggest mistakes John McCain and company have made over the course of this campaign is in trying to "out-Obama Obama".
McCain has been playing the "me too" card in running against George Bush and even his own party. Dedicated Republicans had a hard time warming up to McCain in the first place and were bouyed a bit when Palin, a fellow true believer, was added to the ticket. Now they've been subjected to criticism from their own candidate, who seems to be constantly telling the country what a bunch of scoundrels they are.
The problem is, if someone is basing their vote largely on an anti-Republican sentiment, why would they not vote for the Democrat? Why would you pick the second most anti-Republican candidate?
Just as in marketing, you don't go head to head with your opponent in areas where you know they are stronger. You look for where you are strong and they are weak. McCain's strength had been his reputation as a fiscal conservative. He had a golden opportunity, when he suspended his campaign and went back to Washington DC to deal with the "rescue package". Had he worked to his strength and stood up and said "hell no!" to the bail out, even if he had been over-ruled, he would have been a hero. He likely would have run away with this election. Instead he went to meetings and put his stamp of approval on a modified version of the original plan, which contained such crucial additions as aid for toy wooden arrow importers and money for wool research.
In stark contrast, when Obama is confronted by the right, he shrugs it off. He has not made a big deal of his association with Bill Ayers or his choice of words in saying we should "spread the wealth around" because he knows his base doesn't have a problem with those things. He's not trying to pander to free market capitalists because he doesn't see a need to. He's simply ignoring them.
The lessons? Discover your strengths. Know your customers. Reinforce your strengths. Take care of your customers. If you are a broccoli salesman, don't pour a lot of resources into sponsoring the "We hate broccoli" convention. Tell those who like broccoli why more is better and how you're going to enhance the quality, value and distribution. Don't tell those who are on the fence "Don't worry, I wont try to sell you that much."
I'm not buying what Obama is selling, but at least I'm pretty clear on what he's selling. But, the fact that I'm not buying Obama doesn't mean I must buy McCain. It's not enough to dissuade people from patronizing your competition. You must give them a reason to patronize you.
Subscribe To
Posts
All Comments
Saturday, October 25, 2008
Tuesday, September 23, 2008
Halloween Marketing
A Sweet Promotion!
Halloween is the biggest retail holiday except for Christmas. What does that mean? That it’s very popular! Consider supplying your friends and neighbors with coupons that the kiddos (with their parents) can redeem at your place of business for a candy bar or other treat (be specific, ie: Redeem this coupon for a FREE SNICKERS bar at ........ Stick to the treats. Don't add anything about your oil change special or closing costs discount or other offers. The idea is to give people an excuse to come visit your place of business, with no strings attached. Handing them a flyer or coupon along with the candy bar when they come in however, is a great idea. Give the coupons a week or so for expiration so they can come in at their convenience.
You'll want the coupons to either be numbered, or a less expensive way to go, have a space for "authorized signature" to avoid counterfeits. Using colored paper is also a good idea. That way you can budget for a maximum redemption, assuming every coupon is brought in. Of course you wont get 100% return, so once the coupons expire, leave out the left-overs for your walk-in customers.
You can get black ink coupons on AstroBright Cosmic Orange paper for as little as 2 cents each, depending on size and quantity at from Easy Street Designs (call 719-390-5080 for details). Shipping is a flat $7.50 to anywhere in the continental US.
In any case, it's a great way to enlist the help of your friends and neighbors in your marketing efforts, It actually helps them out in that they can give out more goodies without spending a dime, and it gives parents a safe place to go get a treat for the kiddos, while making them more familiar with your business.
If you do a 500 piece promotion, giving, say 25 coupons each to 20 friends and neighbors, you'll likely wind up spending less than $100 including printing and candy and you get free distribution.
Don't wait too long. Candy can get scarce just before Halloween, and keep it in the fridge between now and the time they come in to pick it up. If you want to give out something healthier or even a non-food item, that can work too, but it has to be a "treat", something people will make an extra stop to pick up on the way home; something the kids will insist they stop for on the way home. Celery sticks wont cut it. Slim Jim's might.
Halloween is the biggest retail holiday except for Christmas. What does that mean? That it’s very popular! Consider supplying your friends and neighbors with coupons that the kiddos (with their parents) can redeem at your place of business for a candy bar or other treat (be specific, ie: Redeem this coupon for a FREE SNICKERS bar at ........ Stick to the treats. Don't add anything about your oil change special or closing costs discount or other offers. The idea is to give people an excuse to come visit your place of business, with no strings attached. Handing them a flyer or coupon along with the candy bar when they come in however, is a great idea. Give the coupons a week or so for expiration so they can come in at their convenience.
You'll want the coupons to either be numbered, or a less expensive way to go, have a space for "authorized signature" to avoid counterfeits. Using colored paper is also a good idea. That way you can budget for a maximum redemption, assuming every coupon is brought in. Of course you wont get 100% return, so once the coupons expire, leave out the left-overs for your walk-in customers.
You can get black ink coupons on AstroBright Cosmic Orange paper for as little as 2 cents each, depending on size and quantity at from Easy Street Designs (call 719-390-5080 for details). Shipping is a flat $7.50 to anywhere in the continental US.
In any case, it's a great way to enlist the help of your friends and neighbors in your marketing efforts, It actually helps them out in that they can give out more goodies without spending a dime, and it gives parents a safe place to go get a treat for the kiddos, while making them more familiar with your business.
If you do a 500 piece promotion, giving, say 25 coupons each to 20 friends and neighbors, you'll likely wind up spending less than $100 including printing and candy and you get free distribution.
Don't wait too long. Candy can get scarce just before Halloween, and keep it in the fridge between now and the time they come in to pick it up. If you want to give out something healthier or even a non-food item, that can work too, but it has to be a "treat", something people will make an extra stop to pick up on the way home; something the kids will insist they stop for on the way home. Celery sticks wont cut it. Slim Jim's might.
Saturday, September 6, 2008
Marketing to a Sluggish Economy
It's been a tough year economically for many independent business professionals. The mortgage and housing market has been decimated. The stock market is stuck in the mud. Credit in general is tough to come by. Customers are struggling so businesses are struggling. Given the latest economic statistics, a rapid recovery is probably not in the cards. So what type of marketing strategy do you employ in this kind of environment?
Customer retention is always important. During slowdowns it's even more so. The whole point of marketing and advertising is to acquire new customers. If you're not keeping the ones you have, you're spinning your wheels at best. Take care of the customers you have. Take every opportunity to exceed their expectations. Send them updates, greetings or special offers at least once per quarter. Even if you do no other advertising, do not neglect this group.
Don't go away. It may not be a good time to engage in massive, aggressive advertising campaigns. All forms of advertising are going to be less effective in a down market than in a healthy one. However, if you don't keep your brand visible, you'll be starting from scratch when the recovery arrives. Shift more resources to "top of the mind" advertising. This is marketing designed, not so much to spur a quick sale as to keep the public aware of who you are and what you have to offer. These ads can be small and simple. They may consist of nothing more than your logo, name, tagline and contact information. Lasting promotional items are a great way to go for this type of marketing. Things like refrigerator magnets, car magnets, banners at local sports events, calendars, pens and other free goodies can all help keep your customer base "brand aware" for a prolonged time at a one-time cost.
While you may have the time to engage in more new product and service development and testing, don't put too much stock in sales results at this point. Put the new stuff out there, but don't bank on it. Also, don't label it a loser because it didn't catch wind in this economy. Save the aggressive roll out for better times. What people are looking for right now is value. Try new ways to package and bundle current products and services in a manner that creates a better value for the customer.
Misery may love company, but company doesn't like misery. Stay upbeat and pleasant. If a customer wants to vent for a few minutes, listen, offer empathy, but don't pile on. You don't have to be a Polly Anna, but keep your own problems to yourself.
If you want referrals, give referrals. In good times, a referral from a network partner, friend or associate is a pleasant surprise. In times like these, it's solid gold. It will be appreciated and remembered. Remember the first question a good capitalist should ask him or herself is "How can I help?". That's how you find and create opportunity, generate goodwill, acquire and retain customers and relationships.
In good times and in bad, all you can do is the best you can do. So, do all you can do.
Customer retention is always important. During slowdowns it's even more so. The whole point of marketing and advertising is to acquire new customers. If you're not keeping the ones you have, you're spinning your wheels at best. Take care of the customers you have. Take every opportunity to exceed their expectations. Send them updates, greetings or special offers at least once per quarter. Even if you do no other advertising, do not neglect this group.
Don't go away. It may not be a good time to engage in massive, aggressive advertising campaigns. All forms of advertising are going to be less effective in a down market than in a healthy one. However, if you don't keep your brand visible, you'll be starting from scratch when the recovery arrives. Shift more resources to "top of the mind" advertising. This is marketing designed, not so much to spur a quick sale as to keep the public aware of who you are and what you have to offer. These ads can be small and simple. They may consist of nothing more than your logo, name, tagline and contact information. Lasting promotional items are a great way to go for this type of marketing. Things like refrigerator magnets, car magnets, banners at local sports events, calendars, pens and other free goodies can all help keep your customer base "brand aware" for a prolonged time at a one-time cost.
While you may have the time to engage in more new product and service development and testing, don't put too much stock in sales results at this point. Put the new stuff out there, but don't bank on it. Also, don't label it a loser because it didn't catch wind in this economy. Save the aggressive roll out for better times. What people are looking for right now is value. Try new ways to package and bundle current products and services in a manner that creates a better value for the customer.
Misery may love company, but company doesn't like misery. Stay upbeat and pleasant. If a customer wants to vent for a few minutes, listen, offer empathy, but don't pile on. You don't have to be a Polly Anna, but keep your own problems to yourself.
If you want referrals, give referrals. In good times, a referral from a network partner, friend or associate is a pleasant surprise. In times like these, it's solid gold. It will be appreciated and remembered. Remember the first question a good capitalist should ask him or herself is "How can I help?". That's how you find and create opportunity, generate goodwill, acquire and retain customers and relationships.
In good times and in bad, all you can do is the best you can do. So, do all you can do.
Friday, August 8, 2008
How not to retain a customer
Over the past week or so, I've received about a dozen automated calls from my trash service provider. I assume it's because my contract is about to expire and they'd like me to renew.
I wont mention the company name, but it starts with a "Waste" and ends with ...agement.
The recording instructs me to call a toll free number. At first I just ignored the calls. I generally don't take orders from recorded messages. But, after a few times, curiosity got the best of me and I actually made the call.
Incredibly, the call was answered by another recorded voice that instructed me to wait on hold! I still don't know why the heck their robots keep calling. Evidently, it's not important enough for any actual human being on their end to be bothered with. Their regard for my time, on the other hand, is non-existant.
Of course I will be using a different provider when my contract with these diva's expires, which can't come soon enough.
I wont mention the company name, but it starts with a "Waste" and ends with ...agement.
The recording instructs me to call a toll free number. At first I just ignored the calls. I generally don't take orders from recorded messages. But, after a few times, curiosity got the best of me and I actually made the call.
Incredibly, the call was answered by another recorded voice that instructed me to wait on hold! I still don't know why the heck their robots keep calling. Evidently, it's not important enough for any actual human being on their end to be bothered with. Their regard for my time, on the other hand, is non-existant.
Of course I will be using a different provider when my contract with these diva's expires, which can't come soon enough.
Sunday, August 3, 2008
Six Degrees of Separation, It's not Just for Kevin Bacon anymore.
The Six degrees of separation theory, made popular by the Six degrees of separation from Kevin Bacon game, got a boost this week from a rather extensive study conducted by Microsoft. Actually it's more like 6.7. The idea is that any person on Earth can be connected through acquaintances of acquaintances within less than 7 "degrees". One degree would be your friend, two degrees a friend of your friend, etc..
Of course the phenomenon would be less expressed in societies that prohibit or restrict communications. Connecting with someone in North Korea would be a more difficult task than with someone in London.
What does this mean from a marketing perspective. There are a few take-aways. First, come up with a consistent, but concise message. If you've ever seen "Johnny Dangerously" you know how badly the grapevine can screw up a lengthy message, even in just 7 generations. Keep it simple, memorable and to the point. Second, don't target your market too narrowly. While you may focus on a particular demographic, that demographic interacts with other demographics. Some of your marketing efforts should be directed at more general audiences. Let your message "resonate".
Perhaps the most important take-away is that any person you come in contact with is a potential conduit to billions of others. Take nobody for granted. You are always in the spotlight, even if you can't see it.
Of course the phenomenon would be less expressed in societies that prohibit or restrict communications. Connecting with someone in North Korea would be a more difficult task than with someone in London.
What does this mean from a marketing perspective. There are a few take-aways. First, come up with a consistent, but concise message. If you've ever seen "Johnny Dangerously" you know how badly the grapevine can screw up a lengthy message, even in just 7 generations. Keep it simple, memorable and to the point. Second, don't target your market too narrowly. While you may focus on a particular demographic, that demographic interacts with other demographics. Some of your marketing efforts should be directed at more general audiences. Let your message "resonate".
Perhaps the most important take-away is that any person you come in contact with is a potential conduit to billions of others. Take nobody for granted. You are always in the spotlight, even if you can't see it.
Friday, July 25, 2008
Leverage Your Marketing Influence
Marketing is all about influence. You're trying to influence your potential customer base to give you a try. Of course you have to deliver on expectations once you convince someone to come your way, but your success is first dependent on getting the customer to your website, your door or on the phone.
There are many ways to go about reaching your customer base. Most of them are very expensive. After all, putting an idea in front of thousands, tens of thousands, hundreds of thousands of people can take a lot of distribution resources. What if you could reach them through proxies? What if you only had to reach 100 people to influence 10,000?
In marketing, this is done all the time. The most common form of this type of marketing is the celebrity endorsement. The idea is to influence the people who influence your customer base, or at least a significant percentage of them. You could make the worst ham sandwich in the world, but if Brad Pitt went on a television interview and said "Boy the ham sandwich I had at Bob's Deli on 5th street the other day was the best thing I've ever tasted." you can bet that Bob's Deli would be swamped, at least for a few days. To make good use of leveraged marketing you have to get to know your customers. What else are they interested in? Who do they look up to? Where do they get their information? To be sure, all of your customers are not going to be the same, but if you could reach 80% of them by focusing on a half dozen areas of interest, you can save yourself a lot of time and resources.
Choose your targets carefully. You don't want to turn on one segment of your potential customers while turning off another. For example, if 40% of your customers are registered with one political party and 30% with another, specifically creating a message to appeal to one or the other risks turning off 60-70% of your customers. You want to associate your product with personalities and ideas which are appealing to a significant segment of your customers and at least neutral to the rest. If you decide to team up with an organization, don't choose a polarizing one.
Your budget may not allow for a celebrity endorsement from Brad Pitt, but there are no doubt, celebrities you can tap. Use the image of a popular radio show personality, team up with your local YMCA, think of industry experts in your field and how you can work together. Whenever possible, feature your current customers in your advertising.
Most importantly, keep in mind that everyone you deal with everyday will interact with a number of other people during the course of their day. Will they talk about you? What will they say? Will they relate a positive experience or a negative one? The people within your sphere of influence each have their own spheres of influence. Always be aware of that fact and look for opportunities to engage new spheres in a positive manner.
There are many ways to go about reaching your customer base. Most of them are very expensive. After all, putting an idea in front of thousands, tens of thousands, hundreds of thousands of people can take a lot of distribution resources. What if you could reach them through proxies? What if you only had to reach 100 people to influence 10,000?
In marketing, this is done all the time. The most common form of this type of marketing is the celebrity endorsement. The idea is to influence the people who influence your customer base, or at least a significant percentage of them. You could make the worst ham sandwich in the world, but if Brad Pitt went on a television interview and said "Boy the ham sandwich I had at Bob's Deli on 5th street the other day was the best thing I've ever tasted." you can bet that Bob's Deli would be swamped, at least for a few days. To make good use of leveraged marketing you have to get to know your customers. What else are they interested in? Who do they look up to? Where do they get their information? To be sure, all of your customers are not going to be the same, but if you could reach 80% of them by focusing on a half dozen areas of interest, you can save yourself a lot of time and resources.
Choose your targets carefully. You don't want to turn on one segment of your potential customers while turning off another. For example, if 40% of your customers are registered with one political party and 30% with another, specifically creating a message to appeal to one or the other risks turning off 60-70% of your customers. You want to associate your product with personalities and ideas which are appealing to a significant segment of your customers and at least neutral to the rest. If you decide to team up with an organization, don't choose a polarizing one.
Your budget may not allow for a celebrity endorsement from Brad Pitt, but there are no doubt, celebrities you can tap. Use the image of a popular radio show personality, team up with your local YMCA, think of industry experts in your field and how you can work together. Whenever possible, feature your current customers in your advertising.
Most importantly, keep in mind that everyone you deal with everyday will interact with a number of other people during the course of their day. Will they talk about you? What will they say? Will they relate a positive experience or a negative one? The people within your sphere of influence each have their own spheres of influence. Always be aware of that fact and look for opportunities to engage new spheres in a positive manner.
Saturday, July 5, 2008
Inflation/Recession strategies
Being a business owner means predicting the unforeseeable, making adjustments on the fly and dealing with ever-changing market conditions. Inflation is looming as a threat today. While nobody can predict the future. There are ways to cope should inflation become a reality.
Just-in-time inventory management (ordering just what you need as you need it) is a good way to go in a relatively stable or declining price environment. During periods of inflation, bulk buying makes more sense. If you have product on the shelf that you purchased at $1/unit and your next shipment runs $1.50/unit, with just-in-time inventory management, you adjust your retail price accordingly and just keep up with the increased costs. If you have a large inventory on hand at the lower price, you can adjust your price immediately, increasing your margin on the previous shipment, or choose to stay below your competition for a time, giving you a marketing edge. Take advantage of bulk pricing and give yourself more price flexibility.
Cushion the blow. If you find you must raise prices you may be able to soften the impact by adding value or adjusting packaging sizes. You may choose to reduce quantity per package rather than raise package price. Conversely you may choose to up both the price and the quantity, saving some money on packaging and so reducing the price increase. You can add services, such as installation or extended warranty. You can package related goods together, or offer a free related or accessory product with the purchase.
Credit's tight. Capital can be hard to come by. But there are ways to generate cash flow without borrowing from a bank. Having a limited time big sale is essentially like writing yourself a 30 day loan (if you're on net 30 with your suppliers). You have to get the word out and you have to make it an offer that's hard to pass up (10% off is not going to get the job done). This is a very short term play and requires cash-flow discipline on your part, but it has the added benefit of generating customer traffic and buzz.
If you have fixed rate debt and your income is keeping pace with inflation, accelerating payments is not a good strategy. Your debt to income ratio is declining, providing you're not taking on new debt. Put any excess cash flow to work somewhere else. If you have variable rate debt, and you think inflation is on the horizon, now's the time to refinance to fixed rate.
A challenging economic environment can also present opportunities. Look for used equipment or special offers from suppliers. When suppliers have specials, they're generally signaling that they need cash-flow. Help yourself out by helping them out. Take advantage of sales and special offers. Look for estate sales and liquidations. Position yourself for the economic recovery now. When customer traffic increases, be ready for it.
If you've been putting off upgrading your website because you didn't have the time, and sales are currently down, you have the time. Get it done. The same is true for aesthetic improvements and maintenance inside and outside your shop or office. Consider this an economic "half-time". Don't spend it hunkering down. Spend it preparing for the next leg up. Work on new product ideas, get active in your networks again. Don't spend a lot of time conversing with peers about how tough things are. Pessimism breeds pessimism. Spend quality time with optimists.
I'm not an old man, but I've seen a few recessions and periods of enconomic upheaval. Every time, you'll hear predictions of the end of the world as we know it. Don't buy it. Staying positive, looking for opportunities and hanging tough through hard times will give you "street cred" as well as confidence. Both of which will benefit you and your business when the inevitable recovery arrives.
Just-in-time inventory management (ordering just what you need as you need it) is a good way to go in a relatively stable or declining price environment. During periods of inflation, bulk buying makes more sense. If you have product on the shelf that you purchased at $1/unit and your next shipment runs $1.50/unit, with just-in-time inventory management, you adjust your retail price accordingly and just keep up with the increased costs. If you have a large inventory on hand at the lower price, you can adjust your price immediately, increasing your margin on the previous shipment, or choose to stay below your competition for a time, giving you a marketing edge. Take advantage of bulk pricing and give yourself more price flexibility.
Cushion the blow. If you find you must raise prices you may be able to soften the impact by adding value or adjusting packaging sizes. You may choose to reduce quantity per package rather than raise package price. Conversely you may choose to up both the price and the quantity, saving some money on packaging and so reducing the price increase. You can add services, such as installation or extended warranty. You can package related goods together, or offer a free related or accessory product with the purchase.
Credit's tight. Capital can be hard to come by. But there are ways to generate cash flow without borrowing from a bank. Having a limited time big sale is essentially like writing yourself a 30 day loan (if you're on net 30 with your suppliers). You have to get the word out and you have to make it an offer that's hard to pass up (10% off is not going to get the job done). This is a very short term play and requires cash-flow discipline on your part, but it has the added benefit of generating customer traffic and buzz.
If you have fixed rate debt and your income is keeping pace with inflation, accelerating payments is not a good strategy. Your debt to income ratio is declining, providing you're not taking on new debt. Put any excess cash flow to work somewhere else. If you have variable rate debt, and you think inflation is on the horizon, now's the time to refinance to fixed rate.
A challenging economic environment can also present opportunities. Look for used equipment or special offers from suppliers. When suppliers have specials, they're generally signaling that they need cash-flow. Help yourself out by helping them out. Take advantage of sales and special offers. Look for estate sales and liquidations. Position yourself for the economic recovery now. When customer traffic increases, be ready for it.
If you've been putting off upgrading your website because you didn't have the time, and sales are currently down, you have the time. Get it done. The same is true for aesthetic improvements and maintenance inside and outside your shop or office. Consider this an economic "half-time". Don't spend it hunkering down. Spend it preparing for the next leg up. Work on new product ideas, get active in your networks again. Don't spend a lot of time conversing with peers about how tough things are. Pessimism breeds pessimism. Spend quality time with optimists.
I'm not an old man, but I've seen a few recessions and periods of enconomic upheaval. Every time, you'll hear predictions of the end of the world as we know it. Don't buy it. Staying positive, looking for opportunities and hanging tough through hard times will give you "street cred" as well as confidence. Both of which will benefit you and your business when the inevitable recovery arrives.
Subscribe to:
Posts (Atom)