You now know that your customers are your best asset and an easy way to develop new marketing strategies is to follow the leaders and model your business marketing after their successes. Today I want to discuss the powerful, frequently used and sometimes misunderstood term “positioning.”
Positioning in its simplistic form is merely where does your business fit in the market and against your competition as well as what is unique about your business. Let me give you more information before we go further, as I think this will clarify it a little more.
I believe there are three ways to position a business. The first is what I call “Force in the Market”. When I was handling the marketing for Bridgestone Sports USA, I developed a friendship with the head of the tire division. One day we were talking about marketing and he happened to mention that at that time Bridgestone was number one in truck sales and airplane sales, yet they were not number one in new car sales. Firestone held the top position. So what did Bridgestone do? They bought the majority stake in the Firestone Company and became number one in new car sales. Unfortunately most businesses cannot grow by acquisition.
The second type of positioning is being “Number One”. This is quite simply either reaching the pinnacle of your business category through sales or developing something new to achieve the top spot. A perfect example is Avis. Many years ago when Hertz held the top position in the rental car business, Avis was in second place. Avis developed a new positioning campaign under the theme’ “At Avis We Try Harder”. The market was very attracted to a company that tried harder than the leader and eventually Avis became number one.
The third method of positioning I call “Reformulating an Old Idea and Making It Better”. A good example is Domino’s Pizza. There are pizza restaurants everywhere. It is difficult to make a pizza that much better than your competition. So Domino’s changed the playing field and developed their market position around “Pizza Delivered in 30 Minutes or Less.” Their success was instant.
So what do I as a business owner do in a tough economy with this information to increase my sales. You need to look at your business through the eyes of your customers and develop a newer or better way of presenting your business in the market.
I will give you an example that should tell the story best. I had a meeting yesterday with a top tennis pro. She had just signed a contract with a large popular tennis club where she will be starting a tennis academy. The challenges are that there are several tennis instructors already teaching there. How can she successfully launch her tennis school and rise above the high noise level of competition?
As a tennis player, I understand that instructors pretty much do the same thing. At your first lesson you go on the court and the pro starts hitting you tennis balls to see your strengths and weaknesses. I suggested that she create a new term for a new method of teaching. I cannot share the name at this time or the process, but lets give it a name like the Matrix Method. The words mean nothing, but the process is totally different. With the Matrix Method, your first lesson is done off court. The student is put through a series of movements and is measured to determine their strengths and weaknesses. They are questioned as to their goals to be achieved in taking tennis lessons and their level of commitment. By promoting this new school as the innovator of the Matrix Method, they are uniquely positioned to ask the question to all tennis students at the club; What is the Matrix Method and why is my instructor not teaching it? I am confident she will be very successful.
The ultimate goal in positioning is to have your brand become part of the vocabulary. Most people still ask for a Kleenex when they actually mean tissue. Kleenex is a brand not a product. How about making a Xerox copy? You don’t hear anyone saying make me a Toshiba copy? Or having a cup of Sanka when they mean decaf. You get the message.
My next article will discuss a better way of selling through NLP. Until next time.
August 29, 2009
August 27, 2009
Follow The Leaders To Increase Your Sales – Article 3
In my previous two articles I stressed the importance of understanding that your customers are your best asset. The more you understand about their wants and needs, the easier it will be to design marketing campaigns that will increase your sales at the most efficient cost to you.
Today I want to talk about how the industry leaders develop their marketing strategies. McDonald’s is number one on my list of companies that innovate and lead their industry. McDonald’s has long been known for doing the very best site location studies. Before they ever commit to a new location they have a marketing team that goes out and compiles every possible demographic, including; hourly car counts, area consumption data, population migration statistics and much more. That is why wherever you see a McDonald’s you will find a Burger King or Wendy’s within a few blocks. McDonald’s competition well knows that they cannot possibly do a better job on site location than McDonald’s so they just follow the leader.
Let’s talk about what McDonald’s does that you can use to grow your business and grow it now! The term I want you to learn, understand and put into action immediately is “Bounce-Back Marketing”. Quite simply, as the name implies it is a process to bring your customers back to your business. When you eat at a McDonald’s they always stuff in your food bag a coupon giving you something either for free or at a deep discount the next time your return. For example, “Super Size Your Fries” or “Get a Free Drink”.
Couponing is not a new concept. It actually dates back to the 40’s, Do any of you remember S&H Green Stamps? Whenever you would buy a product at almost every store, but mostly concentrated to food and gasoline, you would get a certain number of Green Stamps based upon the purchase amount. These green stamps had a large “S&H” stamped on them. You would paste them into a booklet and then redeem them at an S&H Redemption Center. These centers were located everywhere and inside they looked like a department store. They had all kinds of products on display from radios to toaster ovens to vacuum cleaners. You would simply pick out your product, turn in the required amount of books to the sales person and leave with your new product.
Today, McDonald’s is the leader in couponing. Look at all the companies that have followed McDonald’s and mail you coupons or include them in your local newspapers. Everyone is doing it. The reason is quite simple; IT WORKS!
I am certain you can tailor to fit a bounce-back program for you business that will work well for you. Have fun with it. Be creative! Make it valuable and you will find immediate success.
Something else to think about is understanding product sampling. Every food court in every mall in our country has people standing in front of their food counters handing out free samples of their products. If you are fortunate enough to be in a business that allows you to give free samples, then do it. It does not have to be a food product to work. It could be something as simple as a “how to” card from an attorney, doctor or car dealer. Information presented in a creative design can be quite valuable to many people. You must include an incentive to create urgency and motivate your prospects to take action. Almost every business has something they can give out for free that is valuable. This information does not have to be given out at your business location. You can use direct mail to distribute them. Give this some thought and you will easily find lots of things you can do that will increase your business and result in new sales.
My next article will discuss Positioning and the importance of understanding this powerful marketing term and how it can change your business forever.
Today I want to talk about how the industry leaders develop their marketing strategies. McDonald’s is number one on my list of companies that innovate and lead their industry. McDonald’s has long been known for doing the very best site location studies. Before they ever commit to a new location they have a marketing team that goes out and compiles every possible demographic, including; hourly car counts, area consumption data, population migration statistics and much more. That is why wherever you see a McDonald’s you will find a Burger King or Wendy’s within a few blocks. McDonald’s competition well knows that they cannot possibly do a better job on site location than McDonald’s so they just follow the leader.
Let’s talk about what McDonald’s does that you can use to grow your business and grow it now! The term I want you to learn, understand and put into action immediately is “Bounce-Back Marketing”. Quite simply, as the name implies it is a process to bring your customers back to your business. When you eat at a McDonald’s they always stuff in your food bag a coupon giving you something either for free or at a deep discount the next time your return. For example, “Super Size Your Fries” or “Get a Free Drink”.
Couponing is not a new concept. It actually dates back to the 40’s, Do any of you remember S&H Green Stamps? Whenever you would buy a product at almost every store, but mostly concentrated to food and gasoline, you would get a certain number of Green Stamps based upon the purchase amount. These green stamps had a large “S&H” stamped on them. You would paste them into a booklet and then redeem them at an S&H Redemption Center. These centers were located everywhere and inside they looked like a department store. They had all kinds of products on display from radios to toaster ovens to vacuum cleaners. You would simply pick out your product, turn in the required amount of books to the sales person and leave with your new product.
Today, McDonald’s is the leader in couponing. Look at all the companies that have followed McDonald’s and mail you coupons or include them in your local newspapers. Everyone is doing it. The reason is quite simple; IT WORKS!
I am certain you can tailor to fit a bounce-back program for you business that will work well for you. Have fun with it. Be creative! Make it valuable and you will find immediate success.
Something else to think about is understanding product sampling. Every food court in every mall in our country has people standing in front of their food counters handing out free samples of their products. If you are fortunate enough to be in a business that allows you to give free samples, then do it. It does not have to be a food product to work. It could be something as simple as a “how to” card from an attorney, doctor or car dealer. Information presented in a creative design can be quite valuable to many people. You must include an incentive to create urgency and motivate your prospects to take action. Almost every business has something they can give out for free that is valuable. This information does not have to be given out at your business location. You can use direct mail to distribute them. Give this some thought and you will easily find lots of things you can do that will increase your business and result in new sales.
My next article will discuss Positioning and the importance of understanding this powerful marketing term and how it can change your business forever.
August 26, 2009
Customers Are Your Best Asset Part II – Article 2
If you read my last article then you know I gave you a homework assignment. If you did not read Article 1, then please do so before reading this one.
Let’s get started. Knowing that your customers are your best asset, you now need to know how to develop marketing programs that will increase your sales at a very modest cost to you. I would like to start with an example.
There is a national chain of upscale chocolate, ice cream and fudge stores called Kilwin’s. Perhaps you have been to one and will agree that they have an outstanding product line. A friend of mine owns the store located here in Coral Springs. We meet for breakfast on a regular basis and I always try to give him some marketing ideas to execute. Knowing that his customers are his best asset, I want to share with you a program that is very successful.
When I was a kid, I hated going to the dentist. My mother would always entice me to go for the free ice cream cone card that my dentist would give me after the visit. I always looked forward to a yummy ice cream cone, so I managed to get through the office visit. At Kilwin’s I suggested that we initiate a similar program.
I wrote a letter that was mailed on Kilwin’s stationary to all the dentists in a five mile radius of his store. The letter told my story about getting an ice cream cone from my dentist as a child. We offered free ice cream cone cards to the dentist to give out to all their patients. We included four free ice cream cone cards with the introductory letter for the dentist and his family to visit the Kilwin’s store and try the great ice cream flavors. We told the dentist to simply contact the store and we would supply him with whatever quantity they needed. Remember by giving out one card for one free ice cream cone that the patient would probably have someone go with them to the Kilwin’s store which would usually result in another sale plus any other products they saw while in the store and purchased. Additionally, if this person had never been to a Kilwin’s store the word of mouth advertising about the free ice cream cone program created new business and new referrals. The marketing program was very successful for Kilwin's and still continues to generate new sales and new customers.
So what can you do to create a customer based marketing program? It does not matter what type of business you are in. You can always develop programs that will bring your customer back and also make them your best sales people by developing an incentive based referral program. It is impossible for me to cover all business categories, but here is an example.
If you are a realtor, set up a monthly seminar series to discuss exciting topics such as “How to Use Plants to Create a New Look for Your Home”. Invite a local plant store as well as an interior designer to speak, I am sure the plant store would give each visitor a plant as a gift. Remember this event works for the plant store as well as the interior designer since they will be exposing their services and store to new customers. Encourage your clients to bring a friend. You can serve wine and cheese and register all you new guests to win a drawing for a small gift certificate at the plant store. You could probably get the wine and cheese donated by a local store in exchange for their putting a small sign on the table with their wine and cheese along with their business cards and brochures. Not only is this a fun event as well as educational, but it brings you new customers.
I am sure you can think of many other seminar topics better than my example, but do one a month and you will see a tremendous difference in your business. This can apply if you are a doctor, lawyer, retail store, consultant, or any other business category. Apply the same blueprint to your business.
If you did your homework, then you know a lot about your customer. You know geographically where they live so you can pick the areas to include in your programs. You also know their wants and needs which will help you develop a fun event or mailing idea that would interest them. Use your customer profiles to design your programs and it will insure a more successful marketing event.
I hope that your mind is stimulated and that you are now thinking of things that you can do for your business that will not only be fun, but will bring in additional business. I will discuss in my next article one of the most successful customer based marketing programs ever developed. I will tell you that McDonalds is the innovator of these programs.
Let’s get started. Knowing that your customers are your best asset, you now need to know how to develop marketing programs that will increase your sales at a very modest cost to you. I would like to start with an example.
There is a national chain of upscale chocolate, ice cream and fudge stores called Kilwin’s. Perhaps you have been to one and will agree that they have an outstanding product line. A friend of mine owns the store located here in Coral Springs. We meet for breakfast on a regular basis and I always try to give him some marketing ideas to execute. Knowing that his customers are his best asset, I want to share with you a program that is very successful.
When I was a kid, I hated going to the dentist. My mother would always entice me to go for the free ice cream cone card that my dentist would give me after the visit. I always looked forward to a yummy ice cream cone, so I managed to get through the office visit. At Kilwin’s I suggested that we initiate a similar program.
I wrote a letter that was mailed on Kilwin’s stationary to all the dentists in a five mile radius of his store. The letter told my story about getting an ice cream cone from my dentist as a child. We offered free ice cream cone cards to the dentist to give out to all their patients. We included four free ice cream cone cards with the introductory letter for the dentist and his family to visit the Kilwin’s store and try the great ice cream flavors. We told the dentist to simply contact the store and we would supply him with whatever quantity they needed. Remember by giving out one card for one free ice cream cone that the patient would probably have someone go with them to the Kilwin’s store which would usually result in another sale plus any other products they saw while in the store and purchased. Additionally, if this person had never been to a Kilwin’s store the word of mouth advertising about the free ice cream cone program created new business and new referrals. The marketing program was very successful for Kilwin's and still continues to generate new sales and new customers.
So what can you do to create a customer based marketing program? It does not matter what type of business you are in. You can always develop programs that will bring your customer back and also make them your best sales people by developing an incentive based referral program. It is impossible for me to cover all business categories, but here is an example.
If you are a realtor, set up a monthly seminar series to discuss exciting topics such as “How to Use Plants to Create a New Look for Your Home”. Invite a local plant store as well as an interior designer to speak, I am sure the plant store would give each visitor a plant as a gift. Remember this event works for the plant store as well as the interior designer since they will be exposing their services and store to new customers. Encourage your clients to bring a friend. You can serve wine and cheese and register all you new guests to win a drawing for a small gift certificate at the plant store. You could probably get the wine and cheese donated by a local store in exchange for their putting a small sign on the table with their wine and cheese along with their business cards and brochures. Not only is this a fun event as well as educational, but it brings you new customers.
I am sure you can think of many other seminar topics better than my example, but do one a month and you will see a tremendous difference in your business. This can apply if you are a doctor, lawyer, retail store, consultant, or any other business category. Apply the same blueprint to your business.
If you did your homework, then you know a lot about your customer. You know geographically where they live so you can pick the areas to include in your programs. You also know their wants and needs which will help you develop a fun event or mailing idea that would interest them. Use your customer profiles to design your programs and it will insure a more successful marketing event.
I hope that your mind is stimulated and that you are now thinking of things that you can do for your business that will not only be fun, but will bring in additional business. I will discuss in my next article one of the most successful customer based marketing programs ever developed. I will tell you that McDonalds is the innovator of these programs.
August 20, 2009
Customers Are Your Best Asset - Article 1
Sam Walton said it best “Everyone knows we are in a recession, but I choose not to be in one.” Each month I am going to share with you different strategies that will give you an edge on your competition and allow your business to prosper and grow.
My name is Ron Elkman and I am a marketing consultant. My career began at CBS Television in New York where I designed promotional campaigns for General Mills, Lincoln Mercury, Motorola, and Pepsi. I left CBS and started Group Two Advertising in Florida. The Ad Agency attracted many prestigious accounts including; Kodak, Bridgestone, the PGA of America and General Electric. I was also invited by Florida Atlantic University to teach marketing. I now consult for companies and specialize in branding, positioning and designing targeted marketing programs.
I realize how frustrating it is be in business today regardless of whether you are a doctor, lawyer, manufacturer or retailer. Sales are down, you’ve cut your expenses as low as you can and you don’t know what to do next. If you are stuck at the stop sign, stopping is not an option! You must move forward and have a plan for growth.
In this my first article, I want to talk just a little about your best asset and how to grow your business and increase your sales now. I am talking about your customers. These are the ones that are currently using your products and services. Through some simple and inexpensive strategies you will learn how to motivate them to refer family and friends to your business, as well as attract new first time customers that will result in increasing your sales.
Before I share with you how to do this, you first need to do some homework. I want you to write down everything you know about your customers. If you have other key executives in your company get them together to work on this. Make it a fun project. Here is an example of what your report should look like:
We will call our company the “Yummy Candy Store” a one store operation located in a suburban neighborhood. Our findings are that approximately 80% of our customers come from within a 5 mile radius of our store. The average individual purchase is about $8. Most of the customers are between the ages of 18 to 40 years old. About 30% of them shop in the store twice a month. You get the idea. By doing this simple exercise I am sure you will quickly realize that you know much more about your customers than you even thought.
In my next article I will give you specific examples of what you can do with this valuable information. If you take the time to do your homework I promise you some eye opening programs that you can tailor to your specific business needs that will increase your sales now!
I have one last bit of homework. From this moment forward I want you to eliminate the word “problem” from your vocabulary and replace it with the word “opportunity”. I don’t want you to ever speak this word again. In reality every problem gives you the opportunity to change and improve an outcome. I won’t elaborate any more other than to tell you this simple little word change will affect your life in ways you never imaged. Just try it and see how many great things will start to happen.
My name is Ron Elkman and I am a marketing consultant. My career began at CBS Television in New York where I designed promotional campaigns for General Mills, Lincoln Mercury, Motorola, and Pepsi. I left CBS and started Group Two Advertising in Florida. The Ad Agency attracted many prestigious accounts including; Kodak, Bridgestone, the PGA of America and General Electric. I was also invited by Florida Atlantic University to teach marketing. I now consult for companies and specialize in branding, positioning and designing targeted marketing programs.
I realize how frustrating it is be in business today regardless of whether you are a doctor, lawyer, manufacturer or retailer. Sales are down, you’ve cut your expenses as low as you can and you don’t know what to do next. If you are stuck at the stop sign, stopping is not an option! You must move forward and have a plan for growth.
In this my first article, I want to talk just a little about your best asset and how to grow your business and increase your sales now. I am talking about your customers. These are the ones that are currently using your products and services. Through some simple and inexpensive strategies you will learn how to motivate them to refer family and friends to your business, as well as attract new first time customers that will result in increasing your sales.
Before I share with you how to do this, you first need to do some homework. I want you to write down everything you know about your customers. If you have other key executives in your company get them together to work on this. Make it a fun project. Here is an example of what your report should look like:
We will call our company the “Yummy Candy Store” a one store operation located in a suburban neighborhood. Our findings are that approximately 80% of our customers come from within a 5 mile radius of our store. The average individual purchase is about $8. Most of the customers are between the ages of 18 to 40 years old. About 30% of them shop in the store twice a month. You get the idea. By doing this simple exercise I am sure you will quickly realize that you know much more about your customers than you even thought.
In my next article I will give you specific examples of what you can do with this valuable information. If you take the time to do your homework I promise you some eye opening programs that you can tailor to your specific business needs that will increase your sales now!
I have one last bit of homework. From this moment forward I want you to eliminate the word “problem” from your vocabulary and replace it with the word “opportunity”. I don’t want you to ever speak this word again. In reality every problem gives you the opportunity to change and improve an outcome. I won’t elaborate any more other than to tell you this simple little word change will affect your life in ways you never imaged. Just try it and see how many great things will start to happen.
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