Tuesday, July 19, 2011

When the Market is Soft, Buy a Mattress

The business climate has experienced more conditional changes within the past few years than most people can remember. An uncertain economy, rising unemployment, a weak housing market and many other factors have contributed to these conditions. Although these remain tough times, it isn't a time to fold the tent and hide under the bed. Instead, why not buy a new mattress?

Select Comfort, a maker of air-supported specialty mattresses, wasn't immune to what most businesses faced during the last few years. Being tied to the performance of the housing market didn't help them. But, they understood the situation to be an opportunity. In a proactive mode, they made sweeping changes throughout their organization which included cost-cutting and store reductions. They also focused on MARKETING!

They understood that fine-tuning their business was a must. And, this meant stepping up marketing efforts to build awareness for their Sleep Number brand while investing in digital media to encourage consumer feedback and interaction.

As a result, profits are up 114% over the year's previous quarter and sales have increased nearly 25%. This is encouraging considering that only three years before, sales had slid by 24%.

Select Comfort is a classic example of why companies should invest in marketing and sales during a soft market. If those areas are cut, then nothing short of a miracle is going to improve revenue opportunities.

Be consistent in your marketing activities. Stay in front of your market. Communicate with your customers. Give them good information that can make a difference for their businesses. Don't let a soft market keep you from getting a good night's sleep!

Monday, April 25, 2011

The Power of Endorsements

While in the waiting room of a doctor's office, I noticed a couple of framed posters on the wall that caught my attention. With an emphasis on sports medicine, this particular office is well known for their expertise in treating both athletes and those who enjoy moderate sports activities.

As I approached the large posters, I was immediately struck by the testimonials each one projected. The first was an image of former swimmer Amy Van Dyken. Beneath her picture, the text read "4 time Olympic Gold Medalist". However, that had been modified when Amy autographed the poster. Next to her signature, Amy had marked through the number 4 and written 6! But, here's where the eye-opener comes in - - next to that, she wrote "thanks to you". The endorsement now stated "6 time Olympic Gold Medalist - Thanks to You"; directly attributing her success to the sports medicine doctor.

The second poster was one of former Major League Baseball player, Jeff Bagwell, when he played for the Houston Astros. Next to his autograph, he wrote "Thank you for helping me make it to the World Series." Wow! That's the type endorsement you just don't see every day.

Your business really isn't that different from this sports medicine doctor. Granted, you may not have access to the same "star power" of a celebrity endorsement, but if you're doing a good job for your customers, surely someone will want to boast about that on your behalf.

Endorsements are powerful and can be used in many ways such as your website, in newsletters, brochures, etc. All it takes is a simple quote, a comment or something similar that states your business delivers what you promise and your customer receives the expected result - maybe even more!

Thursday, May 13, 2010

Selling Into the Heart of Demand

Even if you are not a golf fan, stories about the Masters tournament played at Augusta National will interest you. Some tell of the personal side of a player like Phil Mickelson and his family while others remain centered on the game itself. Beyond the stories, though, is a mind-boggling business that makes this a big time event.

Tickets for the tournament days are nearly impossible to obtain unless you know someone. Practice round tickets are only available through a lottery system. It's all highly controlled by the tournament because they can do it. And that's how they like it.

Why? Because the demand is there. Plus, they like the prestige and tradition that are synonymous with the Masters.

For an operation that is only 'public' a few days out of the year, the tournament can turn a buck. It's done strategically and very effectively. Food and beverage options are very inexpensive considering the venue and the process for obtaining a quick meal is simple and easy. That's all by design.

But, rather than mark up food and beverage items beyond reason, it is the merchandise that sells like crazy. Nowhere else can you buy authentic Masters merchandise but at Augusta National (of course, there are those who resell on eBay). Lines of patrons file into the pro shops to grab whatever gear they can with the coveted Masters logo on it. You name it and they have it - golf shirts and tee-shirts to ball caps and ball markers. There are towels, flags, playing cards, belts and more.

Just as quickly as the merchandise flies off the shelf, it is restocked by fast moving clerks. It's an amazing process as the clerks know that everyone in the shop is there to buy something. They don't have to persuade anyone. It's a dream come true for retail selling. Imagine the margins on these products. Tee-shirts are $26, ball caps are $24 and golf shirts are $68. With the buying power that the Masters undoubtedly wields, the profits must be extremely favorable.

Even though this entire operation is an extraordinary one, it doesn't happen automatically. The Masters tournament understands their market. They understand demand and they know how to sell right into it - without really having to sell.

That's where some businesses miss it. They think a product will sell itself or that demand will somehow be there. That's not always the case. Sometimes you have to create it. And, oftentimes, you have to sell it. However, when everything is aligned (strategy, marketing, sales and service), you will reap the rewards.

Wouldn't it be great to be the 'Masters' of your market!

Thursday, July 30, 2009

I Work Here, But I'm Also the Brand

This was too good to pass up on branding and who actually represents the brand - a blog post by marketing guru, Seth Godin. It is a near perfect follow-up to our recent posting on Billy Mays and the brands he represented. In that post, we asked the question as to whether or not the brands he pitched could survive without him since he was arguably, the brand!

In the case of Seth Godin's posting, look at the reverse situation. It's a sad reality that there are employees out there working for supposedly reputable brands, yet taking no responsibility to uphold the integrity of the company, business, product or services because...drum roll...it's just a job...all I do is work here!

Seth nails it: when you are employed by the company, then you represent EVERYTHING about that business and thus, the brand. And, that means the good, the bad and sometimes the ugly (thank you Mr. Eastwood).

Thankfully, there are companies out there who have instilled a culture within their organizations where employees 'get it'. Go to a Chik-fil-A sometime and you'll see it from every single employee. You'll never hear one of them proclaim 'I just work here'.

Tuesday, July 14, 2009

Long Live the Brand

Pitchman Billy Mays revolutionized direct response advertising via his unmistakable commercial presence that always opened with “Hi, Billy Mays here…” He became the icon of direct response television commercials and infomercials. What’s interesting is the effectiveness of his pitches that resulted in the sales of millions of dollars of product.

This brings up the question: was Billy Mays really the brand or was it the product he was selling? His products certainly have become household brand names – OxiClean, Orange Glo, Awesome Auger, Mighty Putty, etc. But, without Billy Mays these arguably would be unknown. However, having a strong pitch for a product is just one aspect to building an effective brand – it has to work and be well received by the consumer. If these products didn’t deliver on their brand promises as Billy demonstrated in his commercials, additional sales would likely have never happened. Still, with a guy like Mays and his notoriety representing the products, one could make a strong case that he is more of the brand than anything else. He is the voice, the image, the seller, the convincer – the guy who compels the sale. That’s more than just a sales guy.

It is very difficult to think about any of these brand names without the name and image of Billy Mays coming to mind at the same time. What happens now? His commercials continue to be aired since his death and unquestionably the products are selling. Over time, will they sustain without Billy Mays? Have the brands built a strong enough following to succeed without their pitchman? Only time will tell us how these products will perform sales-wise in the future and whether or not they can live on without their beloved spokesperson.

Thursday, April 2, 2009

Denny's Marketing Gets Grander

Yep, it appears Denny's is at it again. They must be on to something that is working. A new advertisement is launching to promote another free meal for their Grand Slamwich. As they did during the Super Bowl ad, Denny's will be offering a freebie to those who bring a friend who could use a good meal. The idea is to promote 'acts of kindness'. A good idea, no doubt, and one that will continue to boost their already high brand favorability.

Some may be asking why they would bother with another free offer. In marketing, there is no more powerful word than 'free'. And, it works. It's obviously working for Denny's because they wouldn't bother investing in another promotion of this type if the first had been unsuccessful. Plus, they understand the importance of consistency. The Super Bowl promo could have easily been a one-off, one-time deal that we soon forgot about. But, no, the marketing pros at Denny's recognize that and are ready to pull the trigger again. When this ad hits, there will be many consumers who recall the Super Bowl promotion and thousands upon thousands who will recall excellent service and quality food when they partook of the free Grand Slam meal back in February.

This is likely to create a lot of additional buzz for Denny's. That's only part of what they're after. It is the buzz that translates into revenue dollars that will be the real measure. I'm betting they'll please a lot of hungry patrons while bringing a smile to the company's bottom line.

Monday, March 30, 2009

Casting Your Marketing Reel

On a trip to the coast last fall, I observed a fisherman that to me appeared to know what he was doing. He arrived on the beach and proceeded to mark his spot, prepare bait and set his pole with high hopes of landing 'the big one'. I watched out of curiosity as he cast his rod then waited patiently for a bite on the end of the line. Sure enough, he had action in no time. From my vantage point and distance from him, it was difficult to see exactly what he caught, but I did witness a few 'keepers'. At the same time, there were definitely some 'throw backs'.

As this scene unfolded, it reminded me of how many companies approach their marketing. The intentions are normally good, but sometimes the strategy and execution are lacking. Simply casting your marketing dollars into the blue abyss hoping for a big bite is a high risk and expensive venture. It's essentially the same as mass communication with the intention of reeling in perhaps only a select few keepers. The bait and rod may be right and even the blue waters where those prospects are looming, but tossing a 'hook' for anyone to snag probably isn't the best approach.

Wouldn't you have a much better opportunity of success by identifying who you want to send your message to, tailoring it to their needs and then executing a plan that properly connects with them? Such an approach is targeted and strategic to maximize your marketing investment and efforts.

Think about that the next time you're tempted to bait your hook before tossing it to the masses.