crayons & marketers

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A Colorful Set Up

Posted by: on: August 24, 2012

Who would have guessed you could learn so much from a crayon, a double ended one at that. Over the last two weeks, we’ve discussed the marketing mix.  Familiar to many, foreign to some.  Today, let’s knock out the last two Ps, promotion and placement. 

  1. product
  2. price
  3. promotion
  4. placement

Last week, I again left you with a question. How did I find those double ended crayons? Well, long story short. I was set up. In this particular retailer, the crayon aisle is directly across from the beauty aisle – you know with all the organic body butters and scented body sprays. It’s a happy place for an entrepreneurial mom to be in. So, I shamelessly make my daughter endure it as I sniff sample body sprays and rub on dabs of body butter. Of course, she could care less so she drifts over to her Eden – the crayon aisle. Set up! I have to go retrieve her and what do I find, directly at eye level? You guessed it -double ended crayons. So, not only did I buy them, but once we began to use them, I told other moms how great they were.

The lesson here is simple.  Make your products and services visible and available. It’s all about promotion and placement.  Even the best product or service will go unsold if no one knows how great it is and how easy it is to get to it. Promotion can be as simple or complex as you make it but one thing is certain, you have to do it.  Whether you use traditional methods of promotion, such as newspaper ads, radio, and good old fashion word of mouth or more contemporary methods like email blasts, mobile marketing or social media, it must be targeted to those most likely to buy. Your message should be simple and clear, articulating your product’s benefits in one statement, if possible.  The same goes for those in the service business. The presentation of your product itself is a form of promotion so keep that in mind as well.  For example, unlike many crayon boxes, which are constructed of opaque cardboard, the packaging of these double ended crayons is clear. Why? To  display how cool they are and make you wonder how they got two colors on one crayon.  They have just become a must have.

The fact that these crayons were at eye level, mine (the one with the money) is no coincidence, either.  I honestly can not remember the product placed above or below these crayons. I didn’t have to bend down or ask for store assistance – they were easy to grab.  Thus, easy to purchase.  Now, of course, the company paid a premium price with this positioning, but in their case, it’s worth it.

Mastering the marketing mix isn’t reserved just for big companies, but for everyone in business, whether its home based or fortune 500.  Start with a good solid product (service) and identify your value proposition.  Price your product to not only cover costs but to include what a unit of your product or time is worth, then tell everybody who will listen (especially those most likely to listen) about how great you are, and make it easy for them to get what you’re selling.

**Support Local Businesses:  BigMeanKitty.com.  Owner: Letha Edwards.  www.bigmeankitty.com

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Color Me Green

Posted by: on: August 17, 2012

In last week’s posting, I put a question before you.  If you can get a 24 ct box of crayons for about 50 cents or less, why would the crayon maker in our example price the 6 ct double ended crayons at $2?  I mean, it’s fewer crayons so how do they get away with that? Well, it’s simple really.  They know how much they need to make to cover the cost of making those crayons then they factor in what people are willing to pay. 

Today, let’s spend a little time talking about the second P in the marketing mix – price.

  1. product
  2. price
  3. promotion
  4. placement

By definition, price is the quantity of one thing that is exchanged or demanded in barter or sale for another. In archaic, it translates into value or worth.  So, if price represents value and worth, then why are we afraid, at times, to ask for the price we deserve? As small business owners, especially those new in business, we sabotage ourselves early in the game by going into business offering discounts or underpricing the competition before we’ve even tested whether or not our customers are willing to pay what we ask. You can’t charge less for products or services than they cost if you want to stay in business.

I once read of a jewelry store owner having an extremely difficult time selling a particular line of jewelry in her store.  So, she felt as if her only alternative was to deeply discount it.  So, she offered half off.  Through some strange twist of fate, she mistakenly marked the jewelry up by 50%.  Oddly, the same pieces of jewelry she couldn’t sell just the day before, were now flying off the shelves at an alarming rate at a 50% premium over yesterday’s price. People were paying for perceived value.  The psyche of the consumer is fascinating.  In their mind, the inflated price equated to better value and higher worth.  Of course there are exceptions to every rule, and predatory pricing is so uncool. But in this case, this was good jewelry and worth the money.  But the jewelry store owner’s  failure to realize what she had and what customers were willing to pay for it cost her time and money.  Fortunately for her, the mislabeling mishap was just the nudge she needed.

Four Secrets to Selling More, a recent HBR blog post, had it right.  Stop giving your products and/or services away for free.  Be careful of offering deep discounts and other incentives, even in a down economy.  Compete with service, quality and uniqueness for they may provide a hedge resistant to economic swings.  Let’s think back to those double ended crayons and do a value check, shall we?

  • Service – the crayons are easy to find, offered in store and online
  • Quality – the crayons color beautifully
  • Uniqueness –  double-sided crayon  (enough said)

Let’s end today’s chat with a few action items for you. When creating your business plan that I KNOW all of you have, keep in mind things like operating costs and how much profit you expect to make. If you are creating products, know how much it costs, from beginning to end, to make that product.  If you offer services, do research to help determine how to value your time.  Drill down to just how many products you’ll have to sell or how many clients you’ll have to see to breakeven. Now, add on your value proposition, keeping in mind how much you’re worth and the unique things you bring to the table. Lastly, mix in a little of what customers are willing to pay and bam, there’s your price.

So, how did I find out about those double ended crayons anyway? Ok, in my case, I bumped into them.  But even to that, there was a strategy.  Next week, we’ll wrap up with the last two Ps on the list,  promotion and placement, and chat about how all the Ps support one another.

Keep it colorful!

**Support Local businesses:  Proforma Printelligence. Kimble Bosworth, President/COO.  http://printelligence.espwebsite.com 

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Shelf Life

Posted by: on: August 9, 2012

On a recent excursion to a mass retailer, with my child in tow, we, of course, found ourselves facing the crayon aisle.  We start the slow walk down the aisle, packed with so many things to see, feel and knock over.  And as I pick up the last victim of her play, it actually held my interest.  It was a six count package of double ended crayons with a different color anchoring each end. Looking at the price with a raised eyebrow, I almost put them down.  Then it hit me. There are  actually twelve colors in here but only six pieces to spill on the floor or find melted on the leather in the backseat of the car.  Rock on! Purchase made.

Sometimes, we as business owners, are afraid to think out loud with our ideas.  We cling to black and white to avoid the uncertainty of color.  And it’s not that we are devoid of passion – couldn’t be further from the truth.  Entrepreneurs are dreamers who act.  But, the quality of that action can be the difference between a great idea being purchased or a great idea being put back on the shelf.  It’s a risk that every business owner must take.

We’ve all heard and/or studied  the marketing mix, more commonly known as the four Ps of marketing. 

  1. product
  2. price
  3. promotion
  4. placement  

Let’s keep it simple today and just talk about product. Customers buy for one of two reasons, they need the product to live or they want it because it makes them feel good.   So, the bread and milk people have a bit of an easier job then some of us because if it snows, those items are the first to go – they are essential to life.  But, for non-essentials, like the double ended crayons, one must identify customer needs using a technique called ‘inside-out’ thinking.  That’s just a fancy way of saying, put yourself in the potential customer’s shoes and take a walk. Consider how they feel about what you’re selling.  

Of course, this big crayon company probably did massive market research that costs thousands of dollars to develop the double ended crayons and bring them to market.  But, for the rest of us who don’t have thousands of dollars to spare at the moment, keep it simple and low-cost by tapping into things right there at your fingertips.   Utilize your social media community (if you don’t have one, get one) and ask questions, start discussions, pin something and do polls.  Ask people you know or those you think might be interested in your product or service what they are looking for.  Capture all this data and study it.  This feedback will help guide you on the what your next steps should be.

Next in the marketing mix is price.  Now, I’m going to save this for next week, but I want you to keep this in mind until then.  You can get a 24ct box of crayons for about 50 cents or less.  The 6ct double ended crayons cost almost $2.  Why can they command such a high price for fewer crayons? Perhaps price isn’t all about what you need to charge to cover expenses, maybe there is a little consideration built in as to what customers are willing to pay.

Keep it colorful!

**Support Local Businesses:  The Sweet Stash. Owner: Whitney May.  www.thesweetstash.com

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Top of the Triangle!

Posted by: on: July 17, 2012

Of the vast selection of crayon options available to both young and old, I would have to say that the cool triangular ones are one of my favorites.  Not only don’t they roll off the table when my daughter insists on pouring them all out.  But, per the box, they help the little ones develop their fine motor skills and better prepare them for writing.  So, not only are they cool to color with (and washable – which is a perk), but they also influence the developmental behavior of the child and in return, influence the buying behavior of the parent who, due to the benefits to the child, now champions that brand. 

So, would you agree that there is power in influence?  In the book Influence: The Psychology of Persuasion, Dr. Robert B. Cialdini highlights six principles that help explain the actual psychology of why people say yes.  As a small business owner, taking time during your structured week to analyze who you are targeting and what triggers buying for that group would help you better determine which marketing channels would be most effective. To help us visualize this, let’s take one of the triangle crayons off the table and lay it flat in the palm of your hand. 

There are three sides: a base/foundation, left side, and right side.  At the top, is a point.  That point is your goal. When determining what method of persuasion will work for your targeted group ( yes persuasion –  ultimately that’s what marketing is), build from bottom up.  At the very heart of your appeal, tap into what motivates them to act.  Will they buy if you give them something free (reciprocity) or because you were referred to them by a trusted friend (referral) or were liked on Facebook or have a lot  followers on Twitter(committment/social proof).  If you limit supply of your product or service, will their need to not feel left out draw them to your door (scarcity)? Secondly, determine the need.  One of the reasons people don’t buy is the lack of ‘perceived need.’  I classify this as perceived because some people don’t understand what they need until you show them.  Lastly, ability to buy.  Are your products/services priced competitively?  Are they easy to find and purchase?

Yes, this exercise takes time. But, think of the value it will bring to you if you can get a better understanding of how to market to the individuals you want to target.  Why did the crayon maker develop a crayon shaped like a triangle?  I mean, round ones get the job done. Perhaps, no one else was doing it, so they took advantage of an unmet need.  But let’s look deeper.  Not every parent will spend the extra money to purchase the triangular crayons – either due to the additional cost (ability) or not seeing the point (no need). But buried in the group a certain population was identified, through focus groups or surveys, that mentioned how great it would be if a crayon, an instrument far safer for a toddler than a sharpened pencil, could help develop writing readiness while their unsuspecting toddler sat doodling away at the kitchen table.  The crayon maker took that unmet need, positioned it in the right place at a fair price, and knowing the influence triggers, successfully marketed that product to the right people who they could trust to spread the word.  They got to the top of the triangle and the view is sweet.

**Support Local Small Businesses:  Logo Garden.  Melissa Marquais, Biz Developlment Manager.   www.LogoGarden.com

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Fill Your Space

Posted by: on: July 3, 2012

Have you ever tried to color a large space with a marker?  What happens?  Right…it may start off ok but the more you color, the wetter the paper gets and that marker starts running a little bit dry.  Now, if you’d started with a crayon, chances are, you would have ended up with the perfect picture. Why? Crayons are made to do that – cover large spaces with beautiful splashes of color – markers, not so much. 

Like the marker, are you trying to do something you were not designed to do?  Are you attempting to target a market that you don’t respond to and who doesn’t respond to you?  The word target market has become so cliché to me.  Holding two degrees in Marketing myself, I’ve heard that term over and over during both my educational and professional career but it wasn’t until recently that I realized what a target market is NOT.  It is not everybody!  Even more specific – it’s not about the most people you can get, but the fewest.  Being a small business owner is a tough gig and the last thing you want to do is spend one dollar targeting an individual  who is never going to buy from you anyway.   

Look, I hear ya.  In sales, it’s all about activity.  But, guess what, calling on the wrong people only to be dismissed, sending mailers to those who will only trash it, or sending email blasts to just ANYBODY who later hit the SPAM button isn’t the activity you want.  My challenge for you is to take some time and truly identify who your target market is.  Don’t just say, for example, doctors.  Ok, there are thousands of doctors in just as many specialities.  Will you call all of them?  What will you say?  What’s your value add?  How will your product/service specifically meet needs that have gone unsatisfied within that demographic?  Not sure. That’s what I mean. That has to be spot on.

It’s all about developing what is called a persona.  When you create a persona, you are drilling down to who exactly your ideal customer is?  Going back to our doctor example, you may only want to work with cardiac surgeons who earn far less than $500,000 a year,  has a family with kids, volunteers services at the local medical clinic, and champions healthcare for underserved communities.  Now, you say – how on earth do I find all that out?  You do your homework.  You network and connect.  You show up where they hang out.  Take your findings and gear your message to topics relevant to that group.

I read a comment a local entrepreneur made that really resonated with me.  She said that a small business owner must be careful not to ‘dilute their focus’ by trying to be everything to everybody.  Dilute means to ‘water down’  and a watered down message sprayed on the wrong people is draining and can depress your business growth.  Be intentional about truly identifying your target market, develop your ideal persona and become an expert at how your product/service can serve that clearly defined group. Then go for it.  You’ll feel good knowing that every hard-earned marketing dollar is being spent on people with the highest propensity to buy.

 

**Support Local Small Businesses:  Custom Fit Bookkeeping & Tax.  Owner: Denise Full.  Website:  www.customfitbookkeeping.com

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