Atomic Penny

In marketing, shoot for the top! That is the traditional view. In reality the top is crowded. You spend more on advertising, relationships and service. While it is great to be a market leader, there is an entire market that is missed. Think about all the potential customers that cannot participate in the product or service that a company sells when catering to the middle class and above.

There is an entire world out there that is being under-served. Think of developing nations that cannot afford a $2500 refrigerator or a $50,000 automobile. A company naturally migrates up to the top tier of a product mix. For example, look at the car company Hyundai. Hyundai entered the US market with the Excel. It was a low quality auto that served the “econobox” market. This car was one of the least expensive cars on the market, and was panned when compared to competition such as the Honda Civic and Toyota Corolla. Now, Hyundai is recognized as a leader in quality and is selling a $40,000 car, the Genesis.

In reviewing this example, the one thing Hyundai has done is stay committed to the value it provides to customers. While it has migrated upscale with the cars it sells, the value remains a part of every car it sells. The Genesis, while a high price for a Hyundai, is a value when compared to the BMW 5 Series, Mercedes E-Class or the Lexus GS. Hyundai still sells entry level cars that have a lower price and greater content than the competition

Remember the market you serve. While a higher priced, higher visibility product may gain a higher gross and margin per product, the market may not support another entry into a higher tier. There are more buyers that need basic than need luxury.

In today’s auto world, Tata Motors has created a vehicle that shoot for the bottom and it appears that it will achieve that mission. The Tata Nano will be built and marketing initially in India with a price of around $2,500 US. While it is not a luxury auto by any measure, it will meet a need that has been ignored. Reviews of the Nano have been favorable. Here is a review done by Autocar. Tata shows that there is more than one way to produce a vehicle for the primary market it serves.

By being unconventional, you can capture larger markets at a lower price. Don’t do CHEAP. Do quality with less features and more value. You will sell more, and make more!

POWER ON–Mark

Recently I discussed the cost to take care of employees and customers. I wanted to elaborate on the costs associated with retaining customers versus capturing new ones. I recently assisted in determining the cost of gaining new customers for an insurance agency. In reviewing the information, the agent had a large budget for attracting new customers, while fixed costs were allocated to running the agency and servicing current customers.

THis agency had approximately 2750 active customers and added 35-45 customers a month. In doing the math, the agency spent $3.47 on each current policy, while it spent $18.68 for each new policy added.* About five times less to take care of a client versus acquiring a new one. That’s quite a difference!

In looking at these numbers, think a bit outside of your conventional channels of marketing. If you were to invest a bit more in each of your current clients, money will be saved and word of mouth marketing can be increased. As a small business owner, any investment can be costly, so invest with resources you currently have at your disposal. Reward your employees for excellent service and value. Acknowledge customer comments in front of all the members of the company, and reward the employee(s) with a memorable experience. Create a memory, and a gift card doesn’t do the trick. An experience will be remembered much longer than a dinner at the local casual eatery. Be unconventional in your thinking, the best way to create a memory will be to ask the employees what they enjoy.I have a simple form that I use.*

If done right the rewards will motivate all to a higher level.

POWER ON– Mark

*if you are interested in either of these forms just email me at: mark@atomicpenny.com

This week, according to the calendar, spring arrives. Time to renew and reflect. Take the weekend, review what has passed over the last few months. Think of the positives and negatives. After the weekend, address actions you can take to resolve any outstanding issues.

Make use of the weekend to get a kick start on your attitude and mindset.One way to do this is to break out of the malaise that surrounds you. Be unconventional and learn something you have always wanted to learn, but never did.

The rules to learning something new are:

1) It has to be done away from your home or office.
2) Learn it from someone you do not have a personal relationship with.
3) Share what you have learned with two other people.

These actions will renew and rejuvenate you.

Enjoy!

POWER ON–Mark

You see and hear daily (unless you live in a cave) about the economy and the overall effects on the nation. Unemployment, foreclosure, bankruptcy and the like dominate headlines. The one thing that I believe is overlooked by the mainstream media is what can be done in marketing and service sectors to remind your customers why they do business with you.

So look at your operations and review what you are doing for your customer. Does your customer appreciate what you are doing for them? Are the customers met with a smile, a handshake or even a hello? Are you thanking customers and inviting them to do business with you in the future? If not, Why? Some may say it is too expensive to properly thank customers. Is it more expensive to give thanks to the people who keep you in business, or to go out and find new customers? I will discuss this in a future posting in more detail.

More importantly, are your front line people aware of the importance of treating customers in a genuine and thankful method? Are you treating your employees with thanks? Are the employees aware of how important they are to your business?

Next time you interact with an employee, remember to take a moment to remind her how important she is to your business. Remind her the importance of the customer experience. Both of you will leave the interaction with a better experience and it will flow down to the customer.

In an unconventional sense, you as a manager and leader controls the customer experience. By reinforcing the employee’s positive actions, you allow the employee the opportunity to share the goodwill. Make the effort to show your employees how important each of them are. A Thank You many times carries more weight than a gift card or an occassional plaque.

You will get a great return if you live what you preach. You also need to be sincere. And the beauty of a positive experience is that it will not cost any more than a bad experience. You will still pay wages, advertising and other expenses. However, the return, while not measurable on the balance sheet will be huge. More information can be found at www.carrots.com.

POWER ON–Mark

Look at the picture above. Was it easy for this rose to poke through the fence? No, but it did and now it stands out in stark contrast to the surroundings. And, it is noticed.

Marketing is like the growth of the rose – a lot of struggle to get your message out. Now it is your job as a marketer to work on getting your message out. Even as a small businessman, you need to make the effort to stand out. Think of what others have not done, and do it. By following convention you can become one of the crowd. By differentiated thinking you can stand out.

POWER ON–Mark

As you work for others, you learn about the history and culture of a company. HP was started in a garage, Apple by 2 guys who wanted to build computers. Virgin was started by Richard Branson who decided to drop out of school and start a magazine, followed by a mail order record business which became Virgin Records. These men are now legends in society.

As you read about these and other entrepreneurs, you think 1) I could never do that, 2) He/she/they were lucky or 3) Why not? Why not is usually the most correct and at the same time the scariest answer. Why not means risk, challenge, hardship and lots of detractors, even if you have the finest product or service being sold.

As a marketer and entrepreneur the key is to take the chance. If you do and you succeed, you are THE LEGEND! If it fails, you have something to learn from and then start again. Many times it is not the product or service, it is the effort.

Be unconventional. If you don’t have the marketing money,sell your product at the local swap meet or Farmer’s Market. Or have a local store sell it on a contingency basis. Even get a tent and a sales permit and sell your product on the street corner; business have been started on less. Or hire atomicpenny to create a cost effective marketing plan. Offer a bonus with your service. A bonus that is worth something to the customer, but does not cost you anything extra. If you are scared of becoming THE LEGEND, work on your idea on nights and weekends, after the family is asleep. Don’t burn any bridges or quit based on a whim. Listen to your detractors more closely than to your supporters, you will learn quite a bit. Write plans by using a voice recorder. Make the effort. If you do, you are ahead of at least 95% of the population.

The idea of creating is another reason that marketing is fun. It is fun to see what your efforts bring to life. It is even more fun when you are recognized for what you have created. You need to remember that being unconventional and acting unconventionally is not wrong, it is just different. Society shies away from different until a benefit is proven. Be the difference maker with your idea.

Be unconventional and become THE LEGEND!

POWER ON–Mark

Have you ever watched others and wished you had their job, money, clothing, car or life? My question to you is: WHY? Why do you sit back and wish for something you can probably attain or create with your own abilities? How much time do you let go by while wishing instead of doing?

If you want something, go for it. Take a day or week and act as if you are living the life you wish you had. Act like a leader at work, rent the car you have always wanted to own. If you can afford it attend a high class event. Charities are always having fundraisers. Find one and savor the experience.

Or go to the local coffee bar and ask to volunteer to work there even busing tables.

Me personally? I want to share ideas and help others build successful businesses. I want to be able to get up in front of a seminar, large or small, and share knowledge. I want to work at the local coffee bar a couple of hours a week and just listen to people talk. I want to have fun making money.

I am living a part of my life and working on the rest of it. I am the one who decided what I want, and I have decided to go and make it happen.

Is this about marketing? I say yes, it is about marketing yourself, enjoying what you are doing, and having fun doing it. And, it is a bit unconventional.

What are you doing?

POWER ON–Mark

Seth Godin, a well respected and well known expert in marketing recently wrote a blog titled “Is Marketing Evil?” (www.sethgodin.com). I liked the blog because it really had me thinking about the role of marketing in today’s business world. The point of Seth’s blog was that marketing can be evil if used to promote the wrong idea or product to the wrong consumer. I believe that to be 100% true. At the same time I would propose that marketing can be fun.
Think about idea generation and the constant flow of new ideas. Do this exercise: Get a box of crayons, a sheet of paper and a quiet area. Take as much time as you want and draw your picture of marketing success. Get no input from others, share the result if you want. But remember, this is your idea and your mission is to move it from paper to reality. I have found that this type of activity is fun and refreshing. Do it in your office and confuse your co-workers.
Marketing by itself is a means to sell or promote something. Creating a want is what we do, selling to a perceived need or aspiration is the result. Make it fun, enjoy developing new marketing programs. Have some fun figuring out how you are going to make that next big idea work. Involve others. Be different, but show other that marketing is FUN!

POWER ON–Mark