64°
18°
°F | °C
Sun
Cloudy
53 | 66
11 | 18
Mon
Cloudy
53 | 66
11 | 18
Tue
Chance of Storm
51 | 66
10 | 18
Wed
Cloudy
50 | 68
10 | 20

Language

English French German Portuguese Russian Spanish

Currency Converter

Amount:
From:
To:


Chris Leibbrandt

Controlling your product

Last month we looked at selling and some of the issues that involves. So, what happens next? Our widget’s fate is in the hands of the mystical charms of the sales people, we will need to control how sales are doing. In nearly every organisation this is the job of the sales manager, but the information that is gained has to be fed back into the marketing loop. Are the targets sensible? Are they merely sales targets or corporate targets? There is a difference that is critical to the long-term future of the product and the corporation as a whole. Are the targets so rigid that in the first six months they can make or break our widget? What happens next? Does our widget have a future and, if so, are we still in control of it? Let’s have a look at one of the simplest ways we have of checking, assessing and keeping control. One of the most important tools we have available for making sure that our widget has a long-term future and is not merely a ‘flash in the pan’.

 

Where are we?

Let’s take stock and find out where we are. Anyone who has been lost in the middle of nowhere knows that you can’t find where you want to go unless you know where you are in the first place. There are hundreds of different tools that marketing people employ. One of the most important that you can rely on is a simple graph known as a Product Life Cycle. This is a curve (see illustration) that represents sales dollars against time. It’s simple enough, but it can teach us a lot. Not just about where we are, but where we have been and, importantly, how we could improve in the future. This graphic allows us to check on several things: Have we recouped our initial outlay (1)? Are sales taking off and still climbing (2)? Are sales reaching maturity (3), and if so, can we keep them at this level? Are sales falling off (4) and if they are, what can we do about it?

Let’s assume that we are in the sales conference and have just unveiled a product that the sales people are enthusiastic about (crazy, I know, but just humour me), our widget, the price and its packaging.

 

The costs so far

Let’s look at the very first section, the bit that’s below the line. This represents negative sales or, simply put, our initial outlay. What has the widget cost us so far? Do we pile all the costs into this section or amortize some of them, say, tooling, licensing, patent protection and the like, over a number of years? This decision can have immediate effects on the money that’s needed to launch a product. Mostly, these initial costs will be coming directly from the marketing budget. There’s nothing wrong in that, but is it all marketing? How many boardroom battles have come about with this little argument? Marketing versus production, a titanic tussle! For this illustration it matters little, the big issue is that there’s a negative amount that needs to be recovered but how can we do that; a long-term project or a short-term hit? These issues affect the pricing policy and will have been a big factor in the marketing peoples’ decision about price. In general, products that have an innovative content, that take a lot of pre-production, will need higher prices to reflect these initial costs and the unique features and benefits of the widget.

 

Let’s get selling

Our widget is out in the shops and taking pride of place at our trade shows. We’re getting orders and the sales and marketing people are working together like the gears in a well-oiled machine; things are taking off. At this stage we move onto the second section of the curve (2). In marketing speak, our product is a ‘rising star’, selling well, on the up, making its mark and carving out a niche in the marketplace. How brilliant is that? We are recovering our costs, not all of course, but our widget is now contributing to our overall overhead recovery; things look great and we are confident. We can’t help selling the widget as word of mouth, testimonials and advertising are doing their jobs, what could go wrong? Is there an end to this upward curve? Well of course there is, we are feeding back the information to the sales manager making sure things continue, but let’s say that the writing is already on the wall.

 

Coming of age

In financial terms, we move into the most important part of the product life cycle – maturity. This stage of the life cycle is an extremely important one that needs careful management. More control, more feedback, more management. As the sales curve begins to flatten out we need to consider just how long this part of the life cycle will last. It’s easy to be caught up in the euphoria of having a great seller, but we need to look ahead. The day-to-day management is down to the sales manager; the future is the marketing people’s domain. This is where the widget becomes known, in marketing speak, as a ‘cash cow’. Why? Well, because we are milking it for all its worth! All of our set-up costs, the below the line expenses in part 1 of the curve have been recouped. Everything else is ambrosia. Apart from the costs of production, packaging and marketing maintenance, advertising and the like, this widget is just a money machine. Profit levels are increased as the inherited costs are shed. Everybody’s happy, all except the marketing people. They are already looking ahead, with knitted brows, to the final section of the curve.

 

Buy it or the dog gets it!

A car seller in the USA concocted one of the most infamous and successful advertising strategies. During his TV commercials he said, and I am paraphrasing here: “Either buy the car or the dog gets it.” In this final stage (4) of the curve we are getting worried. The widget is no longer performing; it’s hanging about in the departure lounge ready for its flight to retirement. In marketing speak it’s a ‘lazy dog’. There are two things that you can do here and both rely on pragmatism, although your brand manager may not see it that way. Firstly, you can shoot the dog and get rid of it, sometimes a hard thing to do, say goodbye to an old faithful friend, but if it’s a burden it may be the best option. The more interesting, and some would say more appropriate course of action, is to try and teach it new tricks, resurrect it, breath new life and fire into it. Maybe, by mixing a metaphor we can create a phoenix from the ashes of a lazy dog. Next time we’ll look at ways to do just that.

Selling tips

Last month we looked at promoting your product and, leading on from there, discussed the key area that is point of sale. All of that leads us to this month’s thorny subject: selling. Last month I said that a lot of the promotional activity may be a bit ‘psychopop’, but this month we are moving into a real heavy-hitting area of operating where psychology is the prime mover. Good sales people almost seem mystical in the way they can read their customers’ wishes and get them to order and buy. Most marketers will tell you that they are not sales people – once we have done our job we hand over to the sales wizards to do theirs. There is a massive difference between sales and marketing, and it is well to realise that they’re completely different and complementary parts of the process of moving your widgets from the shop shelves to consumers. Let’s assume that we are in the sales conference; the marketing man has just unveiled a product and handed it over to the next set of professionals to move the process forward: the sales people.

 

Are you a believer?

Let’s assume for a moment that the sales people are enthusiastic about our widget and like it – they also like the price and its packaging. (I know that this may be unusual, but just humour me). One of the main goals of the sales people is not only to sell loads but also to convert the customer into a loyal consumer who comes back for more of the product, the service and the brand. After all, we are trying to convert our customers into our advocates – walking advertisements for our product. As I’ve said in the past, this is one of our major ambitions, for customers to not only buy from us, but to also actively praise our widgets to their friends and associates. In this way, they are doing the sales job and selling the products for us. While it’s not the most important thing in the world, it certainly helps if the sales people are enthusiasts and believe in the product. Without this belief it is easy, in many cases far too easy, for the customers to pick up on this lack of belief. Understanding the product inside out helps with this belief, as does knowing all there is to know about its features and benefits. After we have spoken to our customers about all of that, then and only then should we look at talking about the price.

 

Hey good looking

So what else do we need the sales people to know about? What to look like is one very important issue. What image we are trying to portray is a crucial part of the sales person’s armoury. There needs to be a careful balance with the whole look of formality. Formal clothing has gravitas and creates confidence in the sales people and the product, whereas being over formal can put people off. Selling surfboards and looking like a stockbroker in a sharp suit just won’t get the job done, and vice versa. The right casual look is equally important, and the balance is critical, looking like a tramp won’t impress anybody, but a smart yet casual look with a branded shirt, for example, will always look good. On the other hand, and this is a blow to all of us who believe in equal opportunities, a good-looking woman in striking clothing (or lack of it) can sell just about anything to the tackle trade. See page 32 of April TTW.

 

Speaking of bodies…

It’s not just how a body looks that we need to be concerned about. The best sales people will have an uncanny knack of connecting with people and usually this is because they have learnt how to do it. There are some naturally talented communicators, so what we need to do is study them and copy what they do to succeed. If you really get hooked on this subject then it is worth getting a book or two from the library that show and define the basic body-language behaviours. Learning these basics can be worth its weight in gold. This way you can learn how to ‘mirror’ peoples’ gestures, make them feel in command and complete control. Let them make the decisions that you have already made for them. Sounds like cheating doesn’t it? Well it is just another skill that can be acquired to make sure our widgets get into the consumers’ hands.

 

 

Asking the right questions

You can learn how to make people feel at ease by identifying, using and reflecting their gestures, and you can do the same with their use of language. You can pick up a lot from them. For example, if they make a metal image of something they might say: “I see this as a good thing,” “I like the look of that,” or “I get the picture.” They may be more focused on how something sounds – “That sounds good to me,” or “I hear what you’re saying.” Or they may be more empathetic and feel their communication – “I feel this could be a winner,” “I’m comfortable with that.” In rare cases, the sense of smell is dominant – “I get the whiff of success.” Once you know this then you can use those phrases back to them, mimicking their words and phrases. The very first thing is to create confidence by asking them questions that cannot be answered with a yes or no response. These ‘open’ questions are engineered to supply information and allow the customer to feel in control. As with the body language, it’s worth popping down to the library and checking out books about NLP (Neuro-Linguistic Programming). They are a real eye-opener and, once learned, can be a sure-fire order-book opener too.

 

Where next?

Now that the widget’s fate is in the hands of the mystical charms of the sales people, we will need to check how sales are doing. Are they above or below our targets? Are the targets sensible? Are the targets so rigid that in the first six months they can make or break our widget? What happens next? This is the subject of the next article and a fascinating one it is too. Does our widget have a future and, if so, are we still in control of it? Next month we can look at ways of keeping control and making sure that we have a long-term future to ensure that our widget is not merely a ‘flash in the pan’.

I've got this product to promote

In the final part of his back-to-basics series of marketing articles, Chris Leibbrandt talks about promotion.

Last month we looked at the issues that affect pricing – a sticky subject indeed, and one of the most dangerous and difficult of all the steps to getting a product to market. This month I want to look at a subject that can also make or break your product, as well as your bank account, and not always for the right reasons. In many ways this is one of the easiest areas to get wrong. You can relax; you’ve done all the hard work – now comes the easy bit, promotion.

 

What’s the point?

It’s easy to get depressed about promotional activity because it’s not cheap. It is always, no matter how long you do this job, difficult to assess the efficacy of your advertising pounds and easy to see them go if you’re not careful. It’s a bit like sailing, standing in a cold shower or throwing money down the drain. Needless to say, I don’t look at promotion like that – sailing on the other hand… well I am yet to be convinced. Promotion is another of the marketing ‘P’s. Simple enough you might think – do some adverts and you can’t go wrong… if only! Taking a closer look at some of the key issues of promotion, many are esoteric and subjective, and that’s what makes this subject so fascinating and dangerous in equal measure.

 

A&P

Advertising and promotion is often referred to as A&P. As a term, A&P makes it easier to identify and differentiate between the two distinct areas of marketing that are involved. In a strict marketing sense I prefer to call it promotion, which encompasses both advertising – usually easy to identify – and promotion, which is less so. So what’s the difference? Say, for example, you are sponsoring two of the best (or if you’re not careful, the worst) bass anglers in the Bassmasters – that’s promotion. In fact, it’s easier to say that anything that is getting your message out, which isn’t advertising, is promotion. Despite the pitfalls, with an equal measure of prudence, gut instinct and a keen eye on your promotional spending, you’ll eventually find that you have created an awareness of your product. That awareness has been stimulated into interest; thereafter a desire to own the product, so much so that the consumer has taken the most important step possible – he has taken action.

 

Above or below?

You will no doubt have heard marketing men talk about ‘above’ and ‘below’ the line. I was as confused as anybody when I first heard it – what line is that? In marketing terms it’s the line that’s created between inward and outward-facing promotional activity. Above the line, or outward-facing activity, includes any advertising, press releases, radio or television snippets – just about anything that means your widget is getting coverage in the public domain or out there in the world of consumers. It’s the fun part, the Cinderella syndrome, the creative process that involves so much gut feeling that it’s difficult to measure. Below the line, on the other hand, is inward-facing activity, which is just as important and just as esoteric, and in many cases, even more so. This is the activity that you undertake to ensure consumers get the best look at your products when they’re in the store.

 

POS or POP?

So where does all this promotion take us to? Where does all this take place? In the bear pit of selling, at the Point of Sale (POS) or the Point of Purchase (POP)? Good grief, I hear you say, surely they’re the same thing, and isn’t that all the price tags and wall boards we’ve made specially? Well no, not at all, because the place that you find your POS or POP labels and wall boards is the same place it all happens: on your retailer’s counters. Be it real or virtual, it’s both a place and a marketing proposition. This POS or POP line is drawn between the buyer and seller, or retailer and consumer. The POS is a line where the retailer has the product and pushes it towards the consumer, actively selling the product – the ‘I’ve got it and you’ll want it’ line. The POP line, however, is the line that all retailers and marketing men work for – one of the marketing holy grails. This is the magic moment when the consumer walks in and tells the seller: “You’ve got it and I want it.”

 

Is it all over when the fat lady sings AIDA?

So this is what this is really all about, yet another marketing acronym, AIDA. Just how many of them has Leibbrandt got in that marketing locker? Well, plenty. This is where the first part of the promotion road ends. Your retailers are calling to tell you that they have customers in their shop asking for your widget – they’re selling off the shelves. Then it’s time to celebrate, get your marketing team together, crack open a beer or two, put your feet up on the verandah and bask in some well-earned marketing sunshine. This celebration has come about because you have unearthed the Holy Grail of marketing, and because of your promotion, you have consumers who want your widgets. Let me highlight this process again because it bears another visit: your promotional activity has created an Awareness of your product. That awareness has been stimulated into Interest; thereafter a Desire to own the product, so much so that the consumer has taken the most important step possible, and taken Action.

 

Where next?

This celebration, fun though it is, is merely a way point – the first pit stop. The reality is that the promotion of your widget should never stop. Just take a look at all the global brands that last forever. There are a number of reasons: great product, excellent pricing strategies, excellent distribution and accessibility, but most important, they never stop promotional activity. Never. They promote their products to the point that they become national treasures; they are the past, present and future; our constant companions from cradle to grave. Coke is the real thing because we have been told that for a hundred years, or so it seems, and Gillette is ‘the best a man can get’ because we hear that, see that and experience that every single day. These brands are part of our lives. People feel good about them; they are comfortable, and like an old pair of slippers, they fit and feel good. Some of that may sound a bit ‘psychopop’, and I do not apologise for that. Promotion is all about people, humanity, psychology and how they react to our messages. Our job in marketing is to make sure they react in the right way and buy our widget. One thing that you have to remember is that promotion is a marketing road that never ends, and if it does it’ll end with the demise of your product – so be warned!

 

I need some packaging...

Marketing guru Chris Leibbrandt moves on to the third part of his back-to-basics series of marketing articles – this month, packaging.

Last month we got our working prototype finalised and sitting on our desk waiting for the next phase of its journey, from concept to delivery. So, where does this widget fit into our product portfolio, and what can we do to guarantee its place on the value ladder? It’s all very well having a fabulous product but the next stage in the journey is critical – so critical that it can make or break a product no matter how good it is. (I always seem to be saying that, but it’s true!) The next stage is where I see many simple errors; nearly every one involves cutting corners and skimping on the one area where it is absolutely crucial to get things right. This area is where we can change the consumers view of a product and – in extreme cases – their view of the brand and the company itself. Yes, I am talking about another P: Packaging.

 

The big picture

Surely packaging is just a simple process of getting your product on the wall? Well, yes it can be, but it’s best not left to the production guys. Yes, they are specialised in their skills and, yes, they make things, but they generally don’t cost them out, sell them or really take much notice of them outside of their production plant. The marketing man is the key person who will make this project work, the product sell and consider all the aspects that make a product saleable. In working through the packaging process we will have decided how we want to pitch our product – is it high end and low volume or low end and high volume? Or is it entirely different – a strategic product designed to break a market or set a trend? Just how many ways are there of packaging a widget? The answer is plenty, and all of them need consideration. You can no longer view packaging as a burdensome cost that you have to put up with; it is part of the complete proposition.

 

 

Cheap and cheerful

This ‘cheap and cheerful’ packaging method is usually employed by the inventors in their sheds. They make a great product, then the trail goes cold. I’ve seen some divine bits of engineering that have had ridiculously bad packaging; for example, the old favourite of a folded-card header, and a stapled-on plastic bag with the product hanging forlornly inside. When you question the manufacturer of the product you’ll often find that his favourite daughter, who is good at drawing, designed the packaging on the kitchen table. Okay, so it can work, generally speaking, but it will add nothing to the product – it will not engage or step it up onto the value-added ladder. It will also drive designers into an apoplectic rage, and there is nothing more annoying than that! ‘Cheap and cheerful’ is no way to start an empire.

 

Is it green, maroon, blue or hi-tech?

Once you make the move to embrace packaging as part of the product then you have to decide what it says to the consumer and, indeed, the outside world. Ideally, packaging should be a blend of both high technology and ‘green’, as it is now very important to make sure your packaging has a low environmental impact. Certain colours can send out different messages; they can convey expensive, timeless classics and embody traditional values. Colour combinations of deep green, maroon and deep blue with gold lettering are the most often seen – Harrods is a classic example. Hi-tech packaging is fine, and the use of clear, recyclable plastics is okay as long as the minimum amount of solvents and glues are used. It can be difficult to convey the low environmental impact of clear plastic, but you can ensure that the message is delivered by using simple earthy colours and unbleached paper and card. This can look very sophisticated, and applying the correct recycling logos offers your product the vicarious benefits of saving the planet. You should also ensure that every component can be recycled. This is a serious goal, and not only does it enhance your reputation as a world saver, it also complies with current or future recycling legislation.

 

Lord of the aisles?

As a marketing man and designer I am highly critical of packaging. My kids are forever telling me off for admiring some brilliant examples of packaging in the supermarket, where different brands are jostling to become lord of the aisles. Quite simply, bad packaging tells me that the company selling the product doesn’t understand the whole marketing process. It’s a sign that says: “We’re not quite as good as our product looks.” If a company thinks little of the packaging process, what will it be like when it comes to after sales – will warranties and insurance take the place of real customer care? What people and consumers see from a distance is as important as the product itself – if not more so. In the same way your desk staff who answer the phone are your product. Surly or impolite telephone answering means to most people bad service and represents a company that they would rather forget. Without good packaging it’s impossible to attract consumers to your products in a busy retail environment and, in that context, you often need all the help you can get. Packaging is more than just a way of conveying your products to the marketplace, it is an emotional issue that has many psychological aspects. Invest in making them work for you and ignore them at your peril! As my mother always said to me: “Why spoil a ship for a ha’ pence of tar?”

Now we have our retailer-ready, packaged product, our finalised item is ready for the next part of the marketing marathon. It’s another very tricky issue and is the next P of the four: Pricing.

 

The marketing basics: the four Ps

The four Ps are the cornerstones of marketing and critical in building a successful business. Product, price, promotion and place are so vital because they create the foundations – the starting point, the platform of any marketing activity.

If you are ever in a fix (you can always contact me) and really can’t see how to solve your dilemma, resort to the four Ps – distill your problems down to these basics to see how the light will look at the end of the tunnel. You can address nearly every marketing, and management, dilemma by breaking the issues down, getting back to the basics and returning to the four Ps.