One of the most difficult things in business is determining what price to sell your products or services for. In most cases, businesses base their prices on the cost of production, as they are unsure of the value they provide. For example, a jewelry maker may sell their jewelry at (x) times the price of silver. In another example, an accounting firm will figure out that they are paying a bookkeeper $25/hour, and thus bill out $75/hour as per the rule of thirds. If you aren’t familiar with the rule of thirds, it states that the revenues are made of three equal parts: cost of production, overhead and profit. No matter what multiple is used, businesses that do this are selling commodity instead of value.
Look Agency Blog
The advertising industry is very competitive, and thanks to television shows like Mad Men, it can be perceived as sexy and exciting to a lot of people. In addition, like any occupation that society looks at with celebrity status, there is a pressure to perform day in and day out. Advertising agencies work is their calling card, and one of the best assets of someone’s work is their originality.
The Commercialization stage of the New Product Development is where all of your hard works comes together. The usual steps are product launch, advertising and promotion, and distribution. During this phase we will heavily rely on the critical path analysis to ensure that the customers receive their product when promised.
On a recent flight from Panama I encountered three instances of what can be viewed as a false advertising. All three companies, United Airlines, Jugo Juice and Nature Juice were reputable businesses and I am sure their intention wasn’t to appear dishonest. I will first tell you what happened and then we will discuss how these issues can be avoided by being authentic.
An article by Donald Cooper, MBA...
Many businesses make the mistake of defining themselves by what they sell, or by how they do business today. They’re internally focused and it’s all about them. Central to my transformational work with companies is to have clients redefine themselves by how they HELP their target customers. This is a simple but powerful shift in thinking.
An article by Donald Cooper, MBA...
At the end of every year we retreat to our country place for three wonderful and peaceful weeks to reflect, refresh and relax. Although it's only two hours north of Toronto, it feels like a million miles from anything 'city'...especially in winter! But, even here, one learns important business lessons.
As soon as we arrived this year, I hung a bird feeder right outside our kitchen window. Think of this as a new business start-up with a great product (ok, so peanuts from Bulk Barn), no customers, but great potential in the form of a nearby forest full of hungry birds. This new venture had 'success' written all over it!
But how, I wondered, do I promote my 'grand opening'? First, I thought of advertising but birds don't read newspapers, don't listen to the radio or watch TV...but they do ‘tweet’. Then, I thought that maybe I should create a 'grand opening special' by lowering my price...but hell, I was giving my peanuts away. How much lower could I go? I even considered sampling, but didn't fancy myself standing outside, under the feeder, at minus 35 degrees, holding out a handful of free peanuts.
Here’s what happened during the first five days of my new ‘business venture’…
Day #1...No customers. Not one single bird. Our new business was a failure!
Day #2: Things are looking up! We are visited by one chickadee, who apparently loves free, imported Spanish peanuts. He stays to shop the entire day.
Day #3: Things are really looking up. We have dozens of chickadees and two kinds of nuthatches. Apparently birds tell other birds. Funny how that works.
Day #4: We have dozens more chickadees, endless nuthatches and two sizes of woodpeckers…both males and females. Apparently, peanuts are a one-size-fits-all item...and not gender-specific.
Our 'grand opening' is officially declared to be a huge success! We now have line-ups. It’s like an Ikea grand opening…our customers are actually fighting for the ‘merchandise’.
By the end of the day we're running out of peanuts and I make a special trip to town to replenish our inventory and purchase two additional feeders to expand our operation, eliminate line-ups and improve our customer service.
Day #5: Our customer base grows even more with the addition of one blue jay and a red squirrel. He doesn't fit our demographic, but we welcome him anyway, as long as he doesn't frighten away our primary target customers.
So, here are your five important business lessons from the bird feeder...
You can't build a business in one day. Be in it for the long haul.
Word-of-mouth works! One delighted customer can profoundly affect the success of your business.
Don't run out of what your customers want.
Expand your business only when you have lineups. Don’t get ahead of yourself. Too much inventory or too much overhead can kill you.
You may get customers that you didn't expect. Welcome them! They create a whole new possibility to grow your business.
Marketing promotion revolves around two kinds of strategies push and pull. These strategies are used both for consumers and distributors. Pull strategy is used quite frequently to attract attention of potential buyers; agencies will create newsletters and brochures that pulls consumers to their services or product, while push strategy is from the distributors side, where customers are encourage to buy products from a retail store.
When the promise of Anchorman 2 was let loose, I felt a slight cringe of anxiety as I could only imagine the hype and expectation this movie would have to live up to, not unlike Hangover 2 and 3 (which for the record were both unmitigated disasters). There’s also the fact that when a movie with as much marketing gumption as Anchorman 2 is released, there’s an overwhelming advertising surge that leaves everything in its wake completely oversaturated – think the first Transformers movie.