Showing posts with label Marketing. Show all posts
Showing posts with label Marketing. Show all posts

Friday, June 7, 2019

Working with Pet retailers Part 2

Large amounts of money are required to compete in today's market.  You needed money to create a demand and then you needed money to make sure the demand was met.  People are creatures of habit and we learned without constant reminders people naturally will buy a more convenient pre mix.  We didn't have that kind of money or experience to compete.

Getting paid was also a concern as we dealt with some marginal businesses.

The two new products, shampoo and glass cleaner  were really value added products in that they were pre-mixed and as such commanded higher markups.  What I had become aware of was that a concentrate was almost always more economical and environmentally friendly, but that many people were sucked in by convenience and an illusionary lower price.  Big corporations understood this and adjusted their manufacturing and marketing strategies to maximize profit.  Our pre mixed products did generate more profit.

I had become very used to telling people how wonderful a product was, but I learned it is important to learn its limitations.  It is easy to exaggerate or leave out details. Our cleaning product couldn't clean everything but in other cases it could damage some materials.  Another problem I learned was that although it was environmental some people were allergic.  I had never been one to embellish and was usually careful to be honest, but just as I probably never learned all the good things about my product I also was unaware of some of the damaging effects.

As happens various business opportunities were drying up and I began looking for products to add on.  I was approached by a pet store owner looking for someone to  help a friend sell a mysterious product (he was sold on).  It took awhile to get more details, but eventually I had lunch with the father, a retired engineer whose son had developed a lighter type of cat litter.  It was pointed out that many cat owners were old ladies not able to lift heavy bags.  The son was living in Mexico but spent a lot of time in Canada and we got along well.  The main ingredient was grown in part of Texas.  I got my foot in door with some established retailers.  Softer litter was ideal for cats that had been declawed.  Another ingredient to create clumping was flax which the innovator discovered watching his mother eat cereal after recovering from cancer.

I also learned of a seasonal factor that would work to my advantage.  I had learned that retailers were more apt to order in the spring and fall, meaning sales were harder to come by in the summer and the winter.  For the summer sales I had figured out many pet owners took their pets to cottages and made timely calls to those areas.  Cat litter on the other hand had a bigger demand in the winter as outdoor cats spent more time indoors during cold weather and consequently with tighter insulation, houses could get more noticeably smelly.

All jobs offer education.  I loved this product, but soon learned of a serious marketing problem from one of my friendly pet retailer.  There was a good story on the package but it ran to the bottom of the package.  They also found that they needed more money for warehousing and manufacturing.  There were some problems at the Mexican end and the father investor decided that was enough.

There had been some changes to what had been my main source income which was selling lip balms mostly to radio stations.  I had sold customized lip balms mostly by phone, letter and email, but like everything else personal contact can make a difference and I was already out there.  A new supplier let me sell in smaller batches allowing me to approach small businesses on my travels.  As my wife works for an orthodontist I learned that their procedures caused drying of the lips.  Lip balms would provide some relief and be a logical promotional tool.  I was able to make a few sales.  The manufacturer was impatient and felt I had misled him with how many sales I could generate.  I never felt I made unreasonable claims, but he cut off the relationship.


I learned about a dog/cat comb at a trade show where a dog groomer substituted for the owner.  Somehow we got to talking and she explained there might be an opportunity.  I phoned Chicago and made a deal and essentially agreed to buy their product at close to manufacturer price and sell at wholesale and retail prices.  They also sold other categories which occasionally added to my profit.  I kept records of what sold   The concept of turnover was not entirely new, but now I understood better that I had to take the profit from a sale and apply to the cost of that product.  It took about a year before I had covered the original expense of setting up, but then profit was generated.  For awhile got helpful advice and using the main product found success.  The owner retired and I found myself dealing with someone else who basically saw me as small potatoes and well advertised competition developed plus cheap Chinese knockoffs

At a trade show for one of the wholesalers I met a salesman selling tooth brushes for dogs.  This struck me as very strange, but after going home I thought more of it and contacted the sales manager. I learned that this wholesaler had mistakenly bought dozens of brushes when he thought he was ordering single units.  Nonetheless he paid the full price and the sales manager felt obligated to attend the show.  He traveled all over North America and saw sense in having a Canadian rep.  Not owning a dog I never actually brushed a dog's teeth, but came to appreciate most people considered it too daunting.   I learned the procedure had important social benefits (like minimizing children getting bitten).  Learn more:  http://www.therealjohndavidson.com/2011/06/brushing-your-dogs-teeth-can-be.html
Another human insight gained by the experience:  http://www.therealjohndavidson.com/2011/06/rural-and-urban-contrasts-towards-pets.html

My original contact was very supportive of my efforts, but realized at this stage demand for his product was pretty low, although growing.  He saw that I received commissions for any Canadian sales, even out of my calling area or online.  I tried to follow up these new contacts by phone.  I was successful in getting the product line into other wholesalers and chain stores, but it was slow moving.

My sales manager was grooming another man to take over after his retirement.  The head office was in Houston, Texas and this prompted me to learn about Skype.  I couldn't understand a written instructions, but was able to understand much better after demonstrated on Skype.  An odd application I learned was that the brush was not invented for dogs, but rather for people who had motions problems brushing their teeth.  This led to the discovery that they were effective for brushing over orthodontic braces.  I never had any success selling to orthodontists, but whenever I encountered retailer staff wearing braces I gave them an extra sample and it often resulted in a sale.

One interesting conversation I had with a store manager in a north of Toronto suburb was that Filipino maids had been the best champions for the dog toothbrush.  So many of them had taken on the responsibilities of taking care of the family dog and had decided brushing teeth was good for the dog's health.

After making some progress I ran into a series of problems.  Chinese knockoffs moved into the market and undercut me.  With vet clinics I learned they had their own line and although inferior they had a vested interest in it.  The new sales manager was Mexican and ran into immigration problems and in fact one of my calls was to Mexico.  The company seemed to be making progress, but one was the final straw.  They had been trying to get a warehouse in Canada and finally succeeded, but the deal involved transferring sales to the warehouse owners. 

I was also approached several times by a man who wanted me to sell pet beds made in China.  I resisted this for quite awhile, but later was annoyed that I kept running into Chinese copycats.  He had had a heart attack and was advised to get a sales rep and after talking to some of my customers felt I should be approached. This was a sideline as he had a warehouse for his moving business  His 14 year old son was precocious and was taken advantage of.  Found he was being two timed by the Chinese head office who hired another sales company.  After his tragic death I was asked to carry on, but after awhile I felt I was being dealt with in bad faith.  One memorable thing was when I thought I was phoning Vancouver my call took me to China.

During this time I was able to use the agency resources to put out a monthly online newsletter.  Better than that I split it up to three versions--one for small businesses, pet retailers and vet clinics.  A lot of the material overlapped all three targets, but with appropriate articles heading and slanted to the audience.  The idea was  not only to hit the target, but to assume they were also consumers.  General information such as Steven Covey's 7 Habits of Highly Effective People that might appeal to any business person.  I had contests when I could scare up a prize.  I did get some response, but came to realize I needed bigger numbers of readers just when the government tightened up rules to protect people from spammers.

Try as hard as I did, I couldn't justify my expenses with just one product line with little marketing support. The cleaner owner was very grateful that I seemed willing to drive all over and devote most of my time to his products, but it dawned on me that although I received expenses I was going way beyond that and needed to rationalize both my time and expenses.  In effect my ad agency was subsidizing him.  When I succeeded in making deals with other companies he became resentful, but in many ways I was elevated in the estimation of different retailers who felt if one line was either in conflict with established lines or of no interest to his clientele something else might work.  In many cases the once rejected lines became of more interest.  From my point of view there were more reasons to call on any individual retailer, even a long drive away.  Every one was a winner, but each product was marginal and under its own pressures.

Money became very tight and the owner became ever more resentful when I spread my efforts with other suppliers.  I ended up working for his son on a different line and was stunned by a very thoughtful gift from the owner's wife at a surprise birthday party.  The product is still on the market, but you have to look.

I feel very fortunate to have had these experiences and like to believe I made some people happier.  Pet messes have been the subject of many quarrels. Pets have enhanced our lives and it is only fair we make their lives better.  I appreciate it is a tough world to take on by yourself.

Jobs not only provide the means to enjoy life, they also give us meaning and the chance to learn things.  Here are some blogs on my job history all of which illustrate my learning something personally meaningful:

http://www.therealjohndavidson.com/2015/03/my-first-two-jobs.html

http://www.therealjohndavidson.com/2012/08/my-career-in-newspaper-circulation-part.html 

http://www.therealjohndavidson.com/2013/10/my-career-selling-office-supplies.html 

http://www.therealjohndavidson.com/2013/11/purchasing-life-on-other-side-of-counter.html

http://www.therealjohndavidson.com/2019/01/what-i-learned-as-tax-preparer.html 

How a car was an asset in getting jobs, but also a distraction from other opportunties:

http://www.therealjohndavidson.com/2015/01/driving-and-freedom.html 

If you missed Part 1 here it is:  http://www.therealjohndavidson.com/2019/06/working-with-pet-retailers-part-1.html

Tuesday, November 10, 2015

When the public (that means you) are lied to. What can you do?

My concern for this post is with large organizations that have discovered something dangerous about their business and chose to hide it.  Three examples that prompted this are the Tobacco industry, the Oil business and the National Football League.  They have all crossed my path and that of virtually all North Americans.  Part of me is self-righteous, part is practical and part is hypocritical.  Many, if not all can identify with being pushed and pulled by tobacco, oil and sports.

Sir Walter Raleigh brought tobacco to Europe and it must have seemed very weird to Englishmen at first.  Perhaps addiction wasn't really noticed, but somehow smoking came to be prestigious and pleasurable.  It was mostly restricted to men, at first and relatively wealthy ones as the product would be in short supply until demand rose.  A few centuries later and it had become universal with both sexes indulging.  Along the way there must have been suspicions that it was unhealthy, but nothing definitely had been established until late in the twentieth century.

We now know that among the first proofs of the harmful effects of tobacco came from within the industry itself only they chose not to disclose.  Some of its early defenders did so because they saw attacks on tobacco as attacks on free enterprise.

I have written about tobacco in a post about movies http://www.therealjohndavidson.com/2015/06/smoking-and-movies.html  I do not understand how I escaped the lure as my father smoked cigars and many of my friends smoked when I was a teenager.  Many of them have since quit and I would say the majority of my acquaintances do not smoke.  Although my mother didn't smoke she died of emphysema, perhaps due to second hand smoke.  The hardest thing to understand is that teenagers (that most vulnerable age of humans) are attracted to it, often as rebels, not realizing they are being used by big money tobacco.

I try not to be self-righteous about my abstinence, as I like and admire many people who do smoke.  And I have other bad habits and addictions.

Global warming and climate change have been talked of for at least two decades that I remember, but not taken too seriously until more recently and not seriously enough.  Exxon has made the news having done research that proves climate change is real going back to the 1970's and not only hid the information, but spent large amounts of money detracting from the problem.

My involvement in environmental concerns is a little more spotty.  Recycling and cutting waste were habits I cultivated, but in some substantial issues I found myself trying to be practical. With my limited funds I was always looking for investments that would lead to wealth or at least financial independence.

My experience with Suncor didn't start out to support the Tar Sands.  One of the outlets for Orange aPEEL (more down below) was Ontario Co-ops who had an arrangement with Sunoco to blend in ethanol to gasoline served at many of their locations.  At the time they were one of the few gas station chains using the term and my curiosity got the better of me.  Ethanol was supposed to give improved engine efficiency and was natural being derived from corn.  Seemed like a good thing to invest in and I wrote away for an annual report from Sunoco.  I spent a lot of time looking for any mention of ethanol and finally found it, but it was pretty miniscule.  Still I thought I was very clever and bought about 100 shares in my self-directed pension fund.

Ethanol became more common, but more importantly Sunoco turned out to be the most successful investment I ever made.  The dividends at first were small, but I  bought a few more shares, then noticed it seemed to split every few years.  A few times thinking I was ahead of the game I took the profits after a split to diversify into a few other stocks, some of which did ok, but none performed as well as Suncor.  I became more conscious of the Tar Sands, but still saw ethanol as my motivating driver.  Oil from the Tar Sands was much more expensive to extract, but Suncor and others invested large amounts of money for what was seen as the inevitable rise in prices.  Lots of political turmoil had made both Canada and the United States dependent on foreign countries and in fact our purchase of gas seemed to be financing lots of Mid-East jihadists.

At one point I actually looked for an environmentally friendly energy company and thought I had found it--hydro electric power and some renewables.  It never made much money, but seemed promising.  Then it was taken over by Trans Canada Pipeline that I had been persuaded to buy 100 shares.  I took this as a sign that Trans Canada Pipeline wanted to be part of the new energy, but I now think they just wanted to stifle a potential rival.

In the last decade or so the dividends from both companies became significant and while interest rates declined my income and capital gains from Suncor and Trans Canada Pipeline were more critical to retirement plans. Another thing I noticed on a few day trips to the States and a major trip to New Zealand was that the Canadian currency had more power than earlier.  The Canadian dollar seemed to track the price of oil.

I would like to think I am both smart and ethical.  The smart part of me thought although fossil fuels were bad, nothing I did would change their power, so I might as well keep the two stocks.  I had some advice that reinforced that thinking.  A decade or so ago, spurred by my son Michael I started voting for the Green Party and in general more concerned and informed about Climate Change, but still clung to my two stocks.  Eventually my conscience troubled me more and I began to believe that renewables would eventually conquer the fossil fuels and that soon there would be a big adjustment.  I sold both stocks, though I confess I timed them until just after the date of record for dividends.  In total my Suncor investment increased by about 20 fold.  Looking back over a year my sell decision seems to have been both smart and ethical.  There are sure to be some harsh adjustments.  I used to drive more than the average person because of my jobs (http://www.therealjohndavidson.com/2021/02/my-life-and-adventures-with-cars-part.html) and personal interest--that has already been curbed.  The Canadian currency has become weaker and that will also affect my travels and probably even local purchases. Hopefully the air will be nicer and perhaps the climate more controllable, but both are long term projects.

We have always been aware that football is a brutal sport, in fact that is one of its attractions.  Many years ago it was pointed out to me that another big reason for the popularity of the NFL was gambling, and that NFL really stood for National Football Lottery.  I saw it as a strength, speed and skill game and the toughest of the major sports. In the past few years there has been an increase in knowledge about concussions.  The owners have been very resistant to publicizing the information or doing much about it.  There is still concern that the luster might be taken from football.

High school, the CFL, university (Canadian and American) and the NFL consumed several hours each week during the season and I was a true fanatic.  I did not play organized hockey or football, but followed them almost religiously and had been very active in neighborhood sports until my twenties.  Then a friend, Michael Bromilow involved with education told me he couldn't support any sport that deliberately set out to injure players on the opposing side.  It wasn't hard to see the truth of that and my interest, particularly in football petered out quickly.  Now we realize the NFL has known for a long time that concussions are a threat to the health of their players.  My favorite sport was basketball and I was coming to appreciate soccer, especially after my son got involved.  All sports have tension and drama, but I came to appreciate skill, team play. and discipline.  A book on basketball had the title, "The Name of the Game is Deception. " I still get pumped up for an athletic display of skill and the tension between well matched teams or individuals.

Near the end of the Roman Empire entertainment for the masses involved violence and  actual killing on a scale we haven't yet reached.  Football and other sports can still be enjoyable, but for some without the violence it is a bit of a letdown.

Orange aPEEL, a cleaner was the one thing I sold that most made me feel I had a purpose in life, more than just to make money.  But I was naive in many ways.  Some huge companies were well aware of the ingredient d'limonene and all its many benefits, but they preferred to sell it in pre-mixes to keep the costs down and increase its shelf life.  My original boss really got caught up in the product as a concentrate and so did I.  I came to realize that almost any concentrate is both more environmentally friendly and economical than a pre-mix.  The problem is modern consumers much prefer the convenience of a pre-mix and the illusion that it is cheaper.  Marketing understands and exploits this and I thought I was knowledgeable about marketing.  Those with the resources can get their message out more effectively.

I also learned some unfortunate aspects of my product.  In some cases it was allergies and it could be either animals or people that suffered.  I learned for some tasks it was too strong and for others not strong enough.  I felt my future lay in repeat and referrals so I was as honest as practical.

I was forced out of that product, but still recommend it.  A few understand it, but most just buy whatever is most convenient and that they have confidence in.  Some of their success was with pre-mixes.  I have written about an eye glass cleaner and there was a shampoo, both of which are terrific, but under appreciated.  Some more on Orange aPEEL:  http://www.therealjohndavidson.com/2013/03/applications-in-selling.html

I have written about how there is a lot of resentment of regulations.  http://www.therealjohndavidson.com/2015/10/regulation-how-we-protect-ourselves.html
What I learned from my experience is that regulations often favor big companies over small companies as they have the money to meet standards where often small companies suffer.  There might also be some concern that some big companies can skirt around regulations.

What does one puny person do against corporate conglomerates?  Some may have the power to change things, but most of us have limited resources.  But we all have some power and using it wisely can make a difference.  Examine everything.  Look for alternatives.  Set an example.  Encourage your acquaintances when prudent.  Vote carefully.  Help put things in motion so they can develop some momentum.

Friday, February 20, 2015

AWARD SHOWS

A secondary justification for award shows is to honour and promote excellence.  The primary purpose is to draw attention to whatever the awards are about with the ongoing goal of getting more business.  They seem to be on the increase and I think one reason is that business people recognize them as a marketing tool (and incidentally encouraging higher standards).  This post is to focus on entertainment shows, particularly movies.

Warren Beatty, speaking at the Academy Awards several years ago brought this idea to my awareness.  Warren expressed an awareness of the awards for promotion.  Previously I had naively thought the Oscars were based mostly on merit.  Artistic merit is very difficult to evaluate and humans being what they are let many factors enter into their thinking.

How do you measure excellence in arts?  In the Olympics, figure skating, synchronized swimming and gymnastics amongst others are criticized as there is too much judgment involved, but there is some transparency to the procedure.  Often judgment leads to corruption.  In fact the entertainment awards are heavily involved in politics with groups campaigning for their vehicle. and usually it is not transparent  There is the critics vs the people.  I suspect they actually influence one another, but do have separate criteria.

Entertainment awards programs need to be entertaining.  The Tony Awards honouring live performers are usually pretty good at this.  Hosts are carefully selected hopefully with a sense of spontaneous  humour,  Celebrity is a key element with previous winners often giving out prizes to the new winners. Dance numbers and often trailers help fill in the gaps.

Awards are broken down into components:  best actor, supporting actor, director, writing original and adapted, and all sorts of technical skills. Some awards can be very boring for celebrity seekers, although the choice of presenters can help.  There are a variety of awards and one I have heard about is for an ensemble cast which spreads credit around.  Bob Hope once complained that a comic could never win best actor award.  Bollywood likes to have awards not only for comic roles, but also for what they call negative roles (you know the people you love to hate).  They also break down writing skills to include story, script and dialogue.  Those good looking athletic dancers seldom are trusted to sing, so another award category is for backup singers. The right awards can keep the audience from throwing rotten tomatoes, but it is a delicate balance.  Some awards are streamlined and edited on tape to move the show along further.

Awards are such a good marketing tool, that they have been adopted by film festivals.  There are usually a huge number of films shown to the audience, many of them not considered commercial, but if they win an award they gain acceptance with the general public.  Of course another purpose of film festivals is bring financing to artistic endeavours.  If a financier can tag an award onto their movie promotion they have confidence it might recover the expenses.   Sometimes awards won at festivals and at lesser movie events lead up to winning the big Oscar.  The Toronto International Film Festival brags they have foreshadowed some big winners.

There is more to success than artistic merit and nowadays there are specialists who campaign for specific honours.  Sometimes they are successful, but it is becoming very competitive.  Some concentrate on the actual voters and others try to create a public swell.  Often the public disdains critics because they seem to  prefer artsy-fartsy movies instead of what excites them.  I remember a sports fan co-worker who had seen "Rocky" and was offended that "Cabaret" won the Oscar for best picture.  I suspect a lot of people vote not having seen all the candidates.  Among critics there  seems to be the feeling that if the masses love something there must be something primitive or superficial about it.

At university I took a one semester course in "Aesthetics" where there is a struggle between the subjective and the objective.  The professor said he felt there were objective standards and after all these years I agree with that sentiment, but admit that even with myself I am seldom sure what they are.  Comparisons between actors in different roles seem unfair.

To me a movie is the ultimate art form, but I recognize that there is a lot more than art that goes into the many decisions to make a movie.  Maybe there should be an award for the crew that can turn out the most enjoyable film on the least amount of money.  Of course this could be done by catering to the lowest common denominator, but in other cases it is to be commended.

How could an award such as the Academy Awards have more credibility?  Some film festivals such as at Cannes use juries of prominent people.  We do not necessarily learn of the reasoning process, but at least we know who to blame or credit with the decision.  The Olympics do provide a model where judges selected for their experience and training post numbers after a performance and a mathematical process determines rankings.  There are charges of corruption, collusion and incompetence, but at least we can point to the guilty culprits.  Attempts to control prejudice and bias such as throwing out the high and low numbers have merit.  It does boil down to opinion, but theoretically an informed, and relatively neutral consensus.  They would of course be required to view all the films they are passing judgment on.  We also end up with a ranking that in many cases credits those who didn't quite rise to the top.  Nominations are effective marketing tools, but possibly people would respond to a second or third place ranking in a little more positive manner.

Choosing a movie to watch whether you pay to go a theatre, buy a DVD, borrow or watch on some electronic device can be pretty daunting.  There must be close to a million in storage and thousands added each year.  I admit awards affect my choices--I prefer to think of them as a mark of excellence determined by experts, but we can all be dazzled by publicity, superficial appearances., sentimental connections.  I have never regretted watching the Oscar winner for the Foreign Language category or even the nominations for this category.  I will be watching Sunday night and sometimes will feel validated and other times disappointed

The poster from "Boyhood" was one of the nominated films I have seen and enjoyed.  But I haven't seen them all and instead of being disappointed if some other film wins the prize, hopefully will help determine my future choices.  How about you?  Are you affected by the awards?

Monday, November 24, 2014

NON MANIPULATIVE SOCIAL MEDIA THAT WORKS

Today's world is very different than the one us baby boomers grew up in.  Marketing was used as an euphemism for selling unless you were academically inclined.  Now marketing means data mining and all sorts of clever studies to help manipulate prospects more effectively.  Social media seems to many very flighty, but apparently another form of manipulation.  Or maybe it is a tool with a life of its own.

This book is in two sections--one is about being awesome and the other about not being awesome.  You can learn something positive from both sections, but the author seems to be catering to the fact that people fall into the two tracks of either starting from positive or from negative.

Scott brings a different perspective.  Social Media can be like other forms of manipulation, but there can be another dimension.  You can engage with real people and you might find his philosophy works even outside social media   Social media doesn't make a company bad or good, but it does amplify what they already are.   A previous book, "Unmarketing" introduced me to his philosophy and ideas.  You can read about it at  http://www.therealjohndavidson.com/2012/01/unmarketing-marketing-for-future.html

Social media offers new opportunities for businesses to develop customer relations.  As Scott points out most businesses know how they should respond to phone calls, but too often ignore social media messages.  They should be treated as quickly as possible whether positive or negative.  Positive messages should be acknowledged and of course negative messages require serious attention.  Often negative messages (complaints) occur on other sites, but can be monitored.

Scott used an example of someone I know, Chris Farias who received some poor treatment from a company he was dealing with that started a chain of negative social media.  At a more local level Chris was involved in a misleading venture for my family.  Chris actually gave out what we all thought was a heavily discounted meal at a local restaurant that turned out to be a big letdown.  Chris took it personally and supported us on social media and I notice that restaurant is no longer there.

All business decisions seem to revolve around ROI (return on investment).  Social media can be difficult to correlate investment with efforts to results, but Scott gives some convincing examples of how it can be very positive.  Or negative if you don't do it right.  A quote from Scott to remember, "If we don't value conversation we will never see why we need to use social media."

Statistics are abundant on social media, but can be misleading.   For example someone with 1000 followers may have only 10% online at any given time and only 10% of those will see a particular tweet and when down to that only about 10% of them will click on a link.  A tweet or Facebook posting can have a limited shelf life.  Although it may take an effort to develop positive relationships online it is very possible to wreck your network with a poor choice of a posting.

There are plenty of examples and tips anchored by his philosophy.  One of the highlights for me was when Scott was on his way to make another point he revealed Newt Gingrich for the pompous know it all he really is.

Scott has been a front line worker and realizes they are often the poorest paid and least appreciated of employees, but represent the company to most consumers.  They should be selectively hired, properly trained and above all appreciated.

After reading what twitter can do it makes one want to get more involved.  There is more to it than learning where people eat lunch.

To find out more check out his website:  http://www.unmarketing.com

Sunday, September 7, 2014

The RETAIL REVIVAL AS SEEN BY DOUG STEPHENS

For people who fear change Doug Stephens paints a scary future for those who like to sell things and services.  His hopeful title indicates he does see opportunities to prosper.  First heard with Mary Ito on Fresh Air--a good source for ideas.

The world has changed and is still in process.  After the Depression it  took the Baby Boom to really get the economy rolling.  After the World II with all the returning soldiers there was fear there would be no jobs for them.  There were other factors, but with the increase in babies being born there was also an increase in demand for goods and services.  As Doug put it, most wanted to "keep up with the Jones" and advertisers had it easy if they had the money to use the three networks in the United States to reach most of the market.

Demographics have certainly changed and so has technology.  We live in a diversified population and with technological changes that were unforseen.  Advertisers now have a lot more channels to use to reach their "targets," but it is more expensive and more challenging to identify your target.  Automation and outsourcing are steadily shifting jobs.  The middle class is being diminished taking away the consumers who have been driving the economy.

Box stores replaced many smaller stores and all physical outlets are now competing against the inter-net.  Retail staff is treated poorly resulting in turnover and bad service.  Doug projects that in the future only two staff strategies will survive.  One set will survive by going as automatic (read self service) with lots of technological support.  The other set will survive by upgrading training, seeking out real product/ service advocates and also supported with technology.

The key question from the author that everyone trying to sell something should ask, When and where in the world are consumers when they are considering or in need of the things we sell.  Figure that out and set your resource to take advantage of it.

The consumer will gain more power.  It is true marketers will be tracking them, but now the consumer can reverse the tables.  With the power of the internet consumers will be able to make better choices of what they really want and marketers will have to adjust.

The third shelf is a new concept that is already progressing.  Consumers can scan Q codes with their smart phones, order products to be delivered conveniently.  The author does not predict the demise of bricks and mortar stores as a big component of shopping is social.

There are many examples of problems and solutions.  The book is very engaging and thought provoking.

For more of Doug's thoughts visit http://www.retailprophet.com/my-book/

Sunday, May 25, 2014

ABSOLUTE VALUE

Marketing people are always trying to figure out what we consumers are thinking so they can develop products and services that they can steer us to profitably.  Until recently they have been developing strategies based on the fact that buyers have had limited information and choices.  What happens when regular buyers have easy access to much more information?  Is the decision process different?

Many studies of consumer behavior have been made under controlled conditions so that the critical factors can be isolated.  But consumers don't live in a laboratory, and in the real world have easy access to more useful information than ever.

One of the biggest assumptions in marketing is that brand is king.   Branding is the mark of quality, assuring many that they can now determine value.  It can take a long time and a lot of money to develop a brand, but what happens when a consumer has easy access to information on alternatives?  Is branding just a short cut to evaluate quality or maybe just one of a few tools available.

The authors, Itamar Simonson and Emanuel Rosen develop the concept of relative and absolute information.  Relative information is more limited, sometimes consisting of a few choices in front of you or what you might have gleaned from advertisements.  Absolute information is used in the sense that there is a lot more information currently easily accessible through the inter-net.  Not every product has extensive information and not every prospect cares to investigate.

It is increasingly common for those about to buy something to check it out on the internet often with a smart phone.  Many products or services have generated dozens, even thousands of reviews.  For some it might be  overwhelming but reviews can be sorted in various ways to closely match preferences of the viewer.  As smart phones become more popular many buyers can even study reviews right in the store.

One traditional strategy is to seek out and develop early adopters of new products.  In the past most consumers have been reluctant to be among the first adopters, but it turns out that was largely because they weren't comfortable with the available information.  Nowadays they can gain information much more quickly and are more apt to accept new products that are appropriate to their preferences.

Social media is perceived as a modern marketing tool and many users see company information as just another marketing "tool" and not sufficient.  Companies can recruit honest opinions from experts or consumers who have used their product or service.  Surprisingly negative reviews can help drive sales: by creating credibility, but also one person's negative can be another person's positive.   Another strategy is to develop community interest.

One personal experience illustrates the power of social media.  Recently I was with about 16 relatives for a restaurant outing where the management was unable to get our meals out in a timely manner and were evasive.  My daughter Heather first posted a panorama photo and then later commented that we had been seated at 5 and were still waiting for service well after 6.  Her friends and others are unlikely to think of that restaurant in positive terms. and I, for one am glad we were able to warn off others.

The authors take their time to make the case, but concede that traditional marketing strategies are not all useless.  They effectively establish the trend and overcome many objections.  To survive, the role of the marketer has to adjust.  The first step is to assess how vulnerable specific products and their categories are to the new information technology.  Some may not be at the moment, but you also need to keep looking for game changers.  Also some segments of the target group might not be vulnerable, but as time goes by this is also likely to change.

There are many useful insights covering a wide view of the topic. If you need more inducement to read the book (it really is a game changer itself) check out their website: where you can also find links referred to in the text http://www.absolutevaluebook.com/

Sunday, September 22, 2013

CONTAGIOUS by Jonah Berger


One common excuse (or brush off)  heard thousands of times by me while trying to sell an ad is that word of mouth works the best.  Agree, but I like to add often word of mouth needs some help getting started.

Here in "Contagious" is some help that can be applied by marketing, advertising and selling staff.   Author Jonah Berger uses lots of research and stories to make his points about how word of mouth can work for just about any product, service or cause.  Although social media now plays a very significant role, it is not yet as critical as actual physical contact (including voice).  He identifies six elements that are important to the process but admits that it is not necessary to have all six at any one time.

Word of mouth has the advantage of being more credible and also more targeted.  Unfortunately it is not as easy to measure as traditional media or the newer digital media.

The questions and comments below are intended to point the way to his six STEPPS.  There are a lot of ideas and examples to expand the initial element.

Does the intended message have relevance to most people?  People share things that make them look good.  They want to be the first to spread some inside information.  Social currency

Often you are able to set your message in such a way that thoughts already in someone's mind will trigger a link and reinforce the message. Mars chocolate bar sales increased during the Mars space probe. Triggers

Does you message have an emotional reaction?  The key element is arousal.  Two examples are anger and amusement.   Emotion.

Is the message recipient to think they are the first or will they gain comfort from being part of a crowd?   A busy restaurant attracts more customers than an empty one.  Public

Can your message be put into action?  Is it of use?  Practical

Can you relate stories that relate to your brand?  Stories

Your message doesn't have to hit all elements, but if you expect it to gain momentum it should have at least two.  As a salesman I developed stories (usually from my customers' experiences) and always looked for a snappy phrase to get my prospect's attention and create a positive association.  Reading this book will help generate lots of ideas for you for selling, advertising or marketing products, services or causes.

To find out more about what Jonah has to say click on http://jonahberger.com

Saturday, March 2, 2013

APPLICATIONS IN SELLING

Awhile back I was asked to explain marketing.  It can be complicated, but the bottom line is finding some application that people are willing to pay for.  A classic example is that people do not buy 3/4" drill bits because they want to own one, but because they want to drill 3/4" holes.

For many of us this can be a trial and error process as it is very difficult to predict what people will respond to as they can't often articulate it and may not really know.  How many of us enjoy things that were unimagined even a few years ago?

One recently read example was Honda motorcycles, courtesy of Clayton Christensen.  The motorcycles were very popular in Japan for making small, local deliveries.  Honda had the idea they could be adapted for American highways, but unfortunately the mechanics didn't work out.  One of the executives liked to ride his Honda motorcyle up and down country hills in California as kind of a frustration relief.  A neighbour wanted to do the same thing and in a short time Honda found a new application as a dirt bike.  From there they were able to build up to a wider range of products.

I will be doing a book review of Clayton's book, "The Dilemma of Innovation" and here will just mention some other examples he gives involving disk drivers and steam shovels.  In both these cases a few companies had established standards and took on their competition with incremental improvements in what seemed a logical progression.  Along came some new products tracking a different direction (smaller size) and naturally were ignored, until new applications led to new markets and eventually new efficiencies that took over the old markets.  More on his book:  http://www.therealjohndavidson.com/2013/03/the-innovators-dilemma.html

My most personal experience, not nearly as dramatic as Christensen's examples was with a cleaning product.  I didn't discover it, nor did the company I represented.  When I first became aware of the opportunity I arranged to meet someone at a busy shopping mall kiosk type of table.  Time was limited and I was a bit impatient and just asked if they could please give me some literature before I made a decision.

One of the reasons I was impatient was that I was getting headaches after running out of a cleaner for my anti-reflection coated glasses.  One of the given testimonials was from an optician who commented that this cleaner when diluted down to being mostly water was superior for cleaning anti- reflection coated glasses.  A few years later my boss noticed I was using his product for cleaning my glasses and urging others to try.  Without telling me he developed a bi-product for cleaning glasses.

The main target of the cleaner was veterinarians and pet stores for cleaning up pet messes.  That eventually led up to another very powerful application which led to another that we had no understanding of.  But before then we added the glasses cleaner to our list of veterinary products, mainly just for computer screens.  One vet clinic needed to clean its microscope slides immersed in oil as a regular procedure.  They found our glass cleaner more effective than anything they had tried.  Unfortunately you don't need a lot to keep microscopes slides clean over a year, but certainly establishes a level of credibility.

The other applications we stumbled on from the basic cleaner was for de-skunking and anal discharges (something  my boss with his dog had experience with, but had been unable to explain).  I couldn't understand the skunking application until I read a book about skunks.  Their odour comes through an oil.

Most of these new applications were discovered by customers, not us.  A few were discovered by our own trial and error or accidents.

Most products can have a wide variety of applications.  We learned an interesting strategy by one of our competitors.  Windex we discovered is a fairly good all purpose cleaner (better than the popular all purpose cleaner we used for comparisons), but they must have been smart enough when entering the market to focus on one niche where there was little competition--cleaning windows.  They added blue coloring which fit the image they were trying to convey.

It still takes money to turn an idea into a market.  One of the first steps is to find a viable application. If you don't have a big budget you can try to make up for it with more effort over more time.

Wednesday, September 19, 2012

Where is Competition?

The short answer to the title question is everywhere. We are all conscious of it where competition directly impacts on us, but don't always understand the full breadth of it.

Guy Gilchrist used to write a column for The Rider, a horse newspaper I work for.  He wrote of business concerns from the perspective of people in the horse trade.  He raised the question of where they saw their competition and learned that the first response is the next horse business down the road.  Obviously there is some truth to that,  but it is only part of the answer.  The bigger answer that Guy pointed out would include golfing and boating.  In other words while you are competing against those in the same type of business, you are also competing against a wider group of people and in some ways you have more in common with your supposed competitors than you do with the outsiders.

Competition can come from all sorts of directions.  I remember working a booth at a pet show where we had an excellent location right by the main entrance.  We had an excellent product, a pet cleaner/deodorizer that I think was one of the best products I have ever sold.  However one thing was overlooked.  Closer than us to the entrance was the ice cream vendor.  I remember one man coming in with his wife and four kids and decided it might keep his kids quiet if he bought them all ice cream.  We were the first actual "booth" he visited and he was impressed with what we offered. Unfortunately when we got to the price he realized he didn't have enough left--the ice cream man had gotten it!

You as a consumer have an endless desire for all sorts of things, but most of us have a limit to our resources.  Most of us have to make a living so we can handle our needs and wants.   So we are competing with others to make money while many others are competing to get our attention and our money.

Still another experience.  Visiting a factory that made chairs when a spokesman asked my group (who sold office supplies and furniture) who we thought our competition was.  We could all think of other office supply competitors, but  he expanded our thinking to include computers.  We initially protested that we didn't sell computers.  He pointed out that one of the first things a new company bought was a computer, then they would buy a big impressive desk and chair for the boss and finally with what budget was left they would think about throwing in a few things like a chair for their secretary.  His point was that the whole business literally fell on the pelvis of the secretary.  I thought he was exaggerating a bit, but within the year two owners begged our office to supply an upgraded chair before they lost another secretary.

We all are trying to sell something.  If we are going to make an honest living it has to be something with some perceived value.  If we are going to survive and prosper we have to make sure our prospects realize the value of the solution we are offering.  Getting attention is important and offering value to the right people.  The prospect has priorities, but often doesn't think of the details.

When you understand your competition  you will understand your prospects a little better.  Each person has their own set of wants and needs and when you understand the most basic needs you will have a competitive edge.


Monday, February 6, 2012

ATTENDING TRADE SHOWS; A CHORE, A BREAK OR AN OPPORTUNITY?

Did your boss suggest or order you to attend a trade show? Maybe you are the boss, and realize you need to learn a bit more in order to make your business hit a tipping point.

A change in routine may be as good as a break, but a trade show is a special opportunity. Whether you are interested in boosting your career or boosting your business there is information just beyond your current grasp or someone you can meet for your mutual benefit.  I am most familiar with the retail environment so that is what I will refer to most often, but the advice is useful for other situations.

In most retail environments there are more products than any one person can possibly be an expert on.   Yet most of your customers assume you know more than they do about the products and services you sell.  They assume price is THE key factor in deciding what they should buy. If you could be more knowledgeable about products (and their applications), and know who to turn to for advice and support and be aware of upcoming trends more of the people that walk into your store would come back more often and tell their friends.

When salespeople come to talk to you at your retail location, you might be busy or focused on some problem, even if you had agreed to an appointment. You might forget that one of your customers had been asking you about the salesperson's product or their company. Or just as likely about a similar product. At a trade show you can delve into the matter more closely with a wider variety of experts. When you can deal with your customer's needs more effectively you become more valuable.  The goal should be to solve more problems.

Plan your work and then work your plan is also good advice for a trade show. Find out what is there ahead of time and decide what are the most important stops. Every day it is more likely that there will be a Facebook page or twitter account for the show and can be a good way to keep up to date with developments regarding the show. Keep an eye on your smart phone as you may find information right at the show.

If you are going as part of a group you might assign different tasks to different people so as to maximize coverage and minimize duplicate effort. You can collect a lot more information, literature and samples as a group as just lugging around a bag that can get pretty heavy.

We all have time limitations and often we have very specific concerns. It is wise to plan your trip to make sure you don't miss anybody who could help resolve one of your concerns. Even so, one of the advantages of a trade show is finding things you weren't looking for.  In other words there are known unknowns and unknown unknowns that you can profit by learning.

A trade show is an information gathering process. In many cases you will get a chance to ask questions, see demonstrations. Sometimes you won't, but if you are able to scoop up some literature you will have something to consider. and as a reminder.   Don't be shy about asking for samples as there is nothing better than trying out a product or having your customers try it before you commit to it.

It is not just information you gather, but also contacts. Some of the people you encounter can be your future trouble shooters and further sources of information. As business people they have similar problems to you and you might be surprised at how some of them handle them. They call on different businesses and are familiar with what works for other retailers and what doesn't.

Information is a two way street. When you visit someone you have done business with before you can report on how their products or services are working out. If you have not used their products before you can relate your own problems and you might gain a better understanding of applications.

After you have visited the show make notes of what you learned and who you met. The good ones will be following up, but if you are interested in others that don't follow up you will have to make the effort.  File away literature for studying at a convenient time and put aside samples for testing.

Another category of trade show visitor is the buyer. Often a trade show is where the largest discounts are offered. New product introductions are often made with heavy discounts. Judgement and negotiating skills can mean that a trade show can be the prime buying opportunity of a year. However be careful not to get caught up in untested products and gimmicks that encourage you to overspend. Also in your zest to make killing purchases do not overlook other opportunities at trade shows to gain important product and contact information and keep up with new products.

Was it worth the effort? Sometimes you might be reassured that nothing too drastic is threatening your market place. On the other hand there might be so many new trends and competitors that it is wise to consult with those you trust in order remain competitive. Sometimes it might be something that didn't register on your conscious mind that will serve as a warning of a new trend or someone you should pay attention to. Be assured more changes are coming and trade shows are one way to keep on top.

If you ever get to be on the other side of the counter, i.e. selling at a trade show be sure to check out the things I learned:  http://www.therealjohndavidson.com/2012/01/trade-shows-where-customers-come-to.html

Monday, January 16, 2012

TRADE SHOWS: WHERE CUSTOMERS COME TO MEET YOU!

Education never ends. No matter how much you know about anything there is always something else to learn. A little later this month I expect to help man a booth at the Can-Am All Breed Emporium in London, Ontario. Perhaps I will see some of you there. If so, maybe you can help keep me honest. I will be there March 17th and 18th at booth I 8

If you have ever worked a booth you know it can be very tiring and boring. At some stage you wonder if you really needed to be there as there are other (maybe better) opportunities to generate income and certainly more enjoyable ways to spend your time.

In fact trade shows are unique opportunities. Usually I am phoning people or occasionally visiting them. They are often busy and off guard. Many of them are really annoyed that I interrupted whatever they were doing and only wanted to sell them something that is pretty low on their priority list.  At a trade show things are a little different. I am not interrupting them.  Most of them are actually open to new ideas (or exploring old ideas).  They are seeking information. In some cases they come quite a distance and there are always some I have been totally unaware of.

Before the Show

Think clearly on what you hope to accomplish at the show.  Strictly selling, developing relationships, keeping up with your competition, increasing awareness of your products or company, educating the public or something else.  Note the theme of the show and fit into it. Contact your established customers and any contacts to find who is planning to attend. Encourage them to visit your booth. Creating traffic this way helps develop traffic from onlookers who are curious about the attention you are attracting.

Planning for a trade show starts months ahead (even a full year).  Selecting a show is a skill all by itself (more on that later). Once a show has been selected, mark it on your calendar and think of all the things you hope to accomplish. You will be limited in space, time and manpower. A check list is a must and you need to check that it is up to date.

Scheduling your preparations will better ensure a successful show. Those involved in the show need to know what is expected of them well in advance. Strategies need to be agreed upon.  If you are doing demonstrations they should be rehearsed. If you are giving out literature it needs to be made available and perhaps customized. Signage, furniture, carpeting, and any props need to be made available and familiarized with.

Social media can spread awareness. To start off, link up to the show Facebook page and Twitter account. Find out if there is a hashtag and if not you could create one yourself.  Let all your contacts know you are there, when and where. Keep up to date with social media developments.

You will need energy. If you are by yourself you can be standing for hours, perhaps talking for hours (over the din of a crowd). You need to be concerned about comfort and where you may feel it first is your feet. Comfortable shoes and a padded floor make a big difference.  Food is also an issue that you will find trade shows normally provide expensive, relatively unhealthy food.   Bring your own with your energy needs in mind, but avoid eating in front of visitors.  Bad breath can be a problem that starts with your choice of food, but can be remedied with paste and brush. If you are out of town dining after the show should be planned for.  Be well rested.

A solitary trade show exhibitor has a strong challenge, but needs to take a break. If you have more manpower at your disposal schedule the booth staff considering peak times, appointments and energy levels. A break can include scouting to see what others are doing, lunching with visitors or suppliers and perhaps developing alliances.  Or for a short time tune out your environment.

Booth design and location can be critical to success. Some elements of success include being well lit, having some motion in your booth, large photos.  Do not barricade yourself in with tables.  Location is something you may have little control over, but look for opportunities. It is sometimes possible to get a more desirable location if other exhibitors fail to show. The problem then becomes directing people to your new booth.

At the show

Arrive early.  Make sure your booth is ready. Scout around so you are familiar with such things as eating facilities, common meeting areas, show management office, washrooms and other exhibitors (competitors, possible allies and even potential customers).

You can't talk to everybody, but everybody at the show is some sort of prospect. You will learn that most visitors don't want to hear a lengthy sales pitch. Many of your contacts may be compared to planting a seed that may take some time to grow.  Others could be an instant boost to your business. Often you have only a very few seconds to get their attention. To avoid missing opportunities you should not sit down, you should minimize talking to booth staff or doing chores. Those walking by may not even notice you or think you are too busy to bother with.

A simple question can work wonders. "What brings you to this show?" One that worked for me is "where are you from? " Do not go into a sales presentation before having an idea of what their motivations might be. "Do you have any concerns that we can help you with?" If any interest is expressed ask if they would like more information or a demonstration. Try to capture some contact information and awareness of relevant concerns. This can be done by holding draws or asking them to fill out a lead card. Offer your contact information.  Engage them as much as you can within the limits of time and space.

Shows seem to be famine or feast.  Unavoidably visitors join other visitors in the midst of one of your presentations. Some people just like to avoid too direct a pitch while others are attracted to whatever is interesting to others. You have to bear in mind all parties, but the first visitor should be respected. You can let the other person join in, but you may have to repeat yourself. You can start from the beginning, but that could (or might not) irritate the first visitor.  Or you can offer to repeat your presentation (or deal with other concerns) after finishing this one. Ideally your booth is manned with enough people to minimize this situation.

Literature and samples are areas of concern.   Show management get upset because visitors will often accept literature to be polite and then dump it when they get out of sight. Samples are sometimes mistaken for stolen items that security guards may question your recipients about. Both literature and samples are expense items and although there is truth in the value of numbers you should be selective.   Offer to mail or email literature.  Samples to me are an ideal opportunity to follow up so requesting contact information is appropriate.

At some point it becomes important (for both of you) to disengage. You are there to engage with as many people as practical as they are to soak up information from as many exhibitors as practical. A simple question "is there anything else I can help you with at this time?''  Thank them for their time. You might point them to other booths of interest which might enhance you as a source of information.

Respond during the show (not missing opportunities to meet new people) as much as possible. You can email from the show (or shortly after the show) an acknowledgement of their visit and commit to another contact as soon as practical after the show. I f you are able to personalize or deal with specifics do so.

Activities to generate more traffic might include dealing with other booths that are complementary. Use twitter or Facebook to announce special reasons to visit your booth. The old stand by of candies or nuts still has some value, but try to be unique. At one booth where we were selling an orange smelling cleaner we gave out orange candies that drew traffic and linked to what we were selling.

Phones are very useful, but can be a danger. You do not want to be interrupted when talking to a visitor who might be very transient. If you are by yourself you should limit time to deal with incoming calls relying on voice mail as much as practical. If you check with your office during slow times you might head off problems coming from the outside. By all means use your phone to put out messages to those at the show. Don't forget the show's hashtag to reach a wider, but focused audience.

After the show

Do an assessment as soon as possible while details are still fresh. You are looking for what needs to be done in the way of follow-ups, but also figuring out how you could have done better in preparation for future shows, particularly if you repeat this same show. This is an excellent time to update your checklist.

The real evaluation of the show is an ongoing process. In my data base there are two areas where I am careful to record relevant details (in addition to all the standard contact information). Under every contact record I note the original (and sometimes supplementary) source which likely would include some new prospects met at the show.   On the contact log I also have an abbreviation for the show including the date so I can later trace who I met at particular show.  I also include people who I merely waved to as that can be part of a future conversation. "Sorry I didn't get a chance to talk to you". I hope you enjoyed the show." Such information makes following up easier and evaluation more meaningful.

In some cases you made sales or had contracts signed at the show. For many of us, the sales are after the show and often take more effort to develop.  If you are able to measure sales to specific clients it will provide an important measure.  If not, perhaps you can relate the show to your overall sales. Go back to what you had hoped to accomplish.  Can you measure any of that?  Did you get a few benefits you had not expected?  Every experience should be a growth experience.

So your decision to go back to the show (or not) should factor in the results. You will also find talking to visitors and fellow booth holders that they recommend different shows and can often give you sound reasons. You are unique so do not get carried away with advice of those with a different agenda, but don't ignore them either.  Traditionally trade shows are held in a slow part of the year, but your timing might be just a little different.

I also spent a lot of time attending trade shows where I learned a lot of significant information and met contacts that helped me in the future.  Check:  http://www.therealjohndavidson.com/2012/02/attending-trade-shows-chore-break-or.html

The photo at the top going from left to right is Kelly Bowers, Barry Finn, publisher of The Rider and myself. Once again, I will be at the Can-Am All Breed Emporium at Western Fairgrounds in London Ontario on March 17th and 18th at booth I 8. The booth will look something similar to the one in the photo.

Saturday, January 14, 2012

Unmarketing--marketing for the future?

My daughter, Heather has a habit of giving me mind opening books. "Unmarketing" is yet another example for which I am grateful.

Scott Stratten is known as a social media expert. I think he has gone beyond that and has much to say to anyone who thinks they are engaged in selling. Engagement is the key. Marketing seems to me to be two things--numbers and refined numbers. Numbers is straight forward--whatever you do, do more of it to reach a bigger audience more often. Refined numbers is trying to categorize people and develop a pitch or presentation that is tailored for profitable niches.

Oversimplified perhaps, but Scott has taken his experience with social media and put it back towards traditional marketing. For some people social media is just an extension of regular marketing where if you send out more messages and maybe fine-tune what you are saying and to whom, you will increase sales. Misses the point. Social media is an opportunity to engage prospects. Engaging essentially means a two way conversation that might not always directly deal with what you are trying to sell. Building relationships is really what you are trying to do.

A key quote from Scott is "If you believe business is built on relationships, make building them your business." Always look for opportunities to engage.

In many of his chapters he puts himself in the role of the potential buyer. As knowledgeable salespeople we often figure we know so much more about the product we are pushing, that other people are a bit dumb if they don't understand the opportunity we are offering them. At the same time in reality we try to avoid rejection and are reluctant to waste our time on obviously unlikely buyers.  Another perspective on understanding prospects:  http://www.therealjohndavidson.com/2011/07/salemans-introspection-as-buyer.html

If you are always preaching you are turning away people who potentially have an interest in what you are selling or know someone who does. Every contact point is an opportunity to engage.

His advice can apply to big companies or small start-ups. Asking your audience what you need to stop doing, what you should start doing and what you should continue doing will tell you what you need to think hard about.

Trying to build a following can be demanding. Quantity and quality can make a difference. To start conversations you need to reply to other people's concerns, raise questions and be authentic. Some people find it is too demanding and resort to automatic tweeting where your tweets are spaced out. Scott feels if you aren't there to respond your audience will soon realize you are not authentic. Honesty is the best way to deal with this. It is ok to delegate to someone, but it is necessary that they be identifiable.

He is very comfortable with a retail environment. A common occurence in retail outlets when approaching people looking around your store is "I'm just looking." Scott sees this as an opportunity to engage with minimal pressure. He suggests you hand out general interest sheets along the line of "10 things to look for when considering buying...." Have a newsletter that gives consumer tips that anyone can benefit from.

He has some interesting things to say about trade shows. They too are opportunities to engage. Make your booth a welcoming place, one that will make passers-by not feel you have other things you would rather do. Every person going by is somehow connected to someone higher in the buying chain. Scott has some practical ideas how social media can be used to draw interested people to a show and also when at the show to attract traffic to your booth and engage your fellow exhibitors. One of the interesting possibilities is that some of the "strangers" visiting can turn out to be your social media acquaintances.  Some other thoughts on trade shows:  http://www.therealjohndavidson.com/2012/01/trade-shows-where-customers-come-to.html

Social media is not isolated from other efforts to promote your business, but can not only support your marketing, but can also help guide it. My little review does not really do justice to the book where you will find a strong underlying philosophy with lots of practical advice. Get the book by all means and check out his website; http://www.unmarketing.com/ On there you can get his current thoughts and follow him on social media.

Sunday, November 20, 2011

USING DATA BASES FOR SELLING PART 2


How do you sift through a maze of ever increasing details to determine an effective strategy? Indecision wastes time and is a sales killer. What you decide not to do, or to defer is as important as what you do decide to do. A well thought out data base can make selling more effective.

A key concept for me is a trigger which essentially is a detail that helps you identify a timely prospect.  A trigger could be a very wide range of things and recorded in different fields.   It allows you to bury contacts that are not timely by dating them far into the future and to focus on those that are timely. In order not to clog up your planning many prospects might be treated somewhat like some prospects treat you--"we'll call you if we are interested."  But you need to be able to trigger them quickly when circumstances inevitably present an opportunity or an obligation. You will call your prospects when it is most appropriate which is basically when you have something new and relevant to explain or a logical question or realize their circumstances have changed.

A trigger can be any detail. It is up to you to assign appropriate triggers to every contact. A trigger can be used in many different fields. Determining triggers can be the most important detail after deciding when to make the next effort.  If a commitment has been made it is easy to determine a suitable date. If the effort was inconclusive (for example no commitments and no new expectations) you might decide to wait for a better opportunity and rely on a trigger. Some examples of triggers follow.

Perhaps the most important trigger might be placed in the action field. A good example for me has been the f/u trigger. That stands for follow up and can be followed by anything, although some standardization is helpful.

I have given out hundreds of samples and found a frustrating pattern. Just because I had given someone a sample didn't mean they felt obligated to try it. Often I found samples were forgotten or the right circumstances hadn't yet happened.  One f/u would serve as a reminder. A second one often just established that I would be persistent about it. Sometimes third and fourth followups would help determine if there was a basic problem or some encouragement is required. There is a danger of annoying people who have other priorities, but balance that with the fact that a trial can often turn a prospect from an unbeliever to a champion. Each case is unique, but in your data base you should not lose sight of any of your strategies even if they seem to work only some of the time. Having sequenced out my f/u's I found it an effective strategy once in a while to use them as a trigger and spend time catching up on them.  Eventually some get written off, but others, often the unexpected ones can have a big payoff. You could be following up a new fact given to contact, a question you asked them or a comment they made.

One little trigger I found useful has been the competition field, my competition for the contact. Somewhere in your initial conversations just ask who your contact is dealing with (you can go into as much depth as the contact will allow).  Your competition likely will sooner or later have a problem and as you become aware of it you may find it worth your while to target those who relied on them. Although your competition is important so too can be your contact's competition. You may well be dealing with their competition and should respect everyone's privacy. On the other hand if there are no conflicts any information you can gain might be of great interest to your contact.

Every contact fits into a variety of categories. I had one field labeled type where I would write in the different categories my contact fell into. Specialities, association memberships, hobbies, psychological profile, floor type were some categories used. The more details the more triggers you have to call up contacts that fit a new strategy (or an old neglected one). At some stage based on some new developments or the lack of success in other strategies I will develop new projects. One tool for this is the trigger words I have accumulated.

The source of your contact can be useful over the long haul. Prospecting is ongoing, but to understand what works best for you, you need to remember where your contacts originated. For example is a trade show worth attending? is a networking group effective? do you get your share of referrals?

A trigger is a relative thing. With some clients it might be the only factor that might induce you to make another effort, in other words you might not ever contact them again unless something triggers a justification.  With some prospects there is no reason to call them in the very near future, but there is an expectation that something will change, even if you can't detect it. One idea might be to put the word "downtime" into the action field meaning that when you have run out of other productive things to do you will check these prospects to see if there is anything that can justify further efforts either immediately or in the foreseeable future. Of course there are those who are promising and responsive and you schedule them on a short schedule.

It is important to record what happened for each effort.  Some are one way conversations (an email, letter, drop off, voice mail) and others are two way (telephone or visit). How much detail is required? It depends, but the most important criteria is how much is unique and how much can be shortened to routine.

Try to develop a political understanding--who influences who, who makes the final decision, who can explain it to you. The decision process will change over time.

Phone numbers. Sometimes I know a prospect's phone number, but not location. Checking phone numbers including even marginal prospects may help pin down a city which can help you develop an understanding and perhaps some sales points (such as nearby satisfied customers, or distribution points, etc).

Old names show up in new places which help to reveal a history.  You may notice that personnel listed on one record show up in another. Did they move? Get promoted, quit or fired? Maybe just a name coincidence you can joke about.

One thing you can be certain of is change.  Many details that change within your prospects are buried deep while others require only a minimal effort to uncover.  They change personnel, personnel changes their functions, product and service focus, their competition and your competition, location, distribution channels. Any one of these details could justify triggering another effort

One way to deal with a lot of boring repetitive detail is to start another data base just for storing these apparently unneeded details. I call mine History and I try to add to it regularly by transferring info from my current data base. It is conceivable that some trivial detail (or a long history) may be critical in the future, but it can be counterproductive to clog up your current data base.

In case you missed part one:  http://www.therealjohndavidson.com/2011/11/using-data-bases-for-selling-part-2.html

The photo is by my son Michael Davidson visiting the Czech Republic where he wanted to see a hockey game; something Canadians and Czechs share.

Tuesday, October 25, 2011

USING DATA BASES FOR SELLING PART ONE

As a clue to how old I am, for several years I had used light cardboard index cards (the kind used for recipes) as a way of collecting information on customers and prospects, and prioritizing them in a metal file box. After awhile you get to appreciate the limitations of such a system. You can certainly collect a lot of information preparing for and making sales calls. How do you sort it? Alphabetically or by your next contact date? How quickly can you find some critical information? In concrete terms information can be too concrete.  Eventually one metal box is not enough.

The great thing about computers is the great amount of information. The not so great thing about computers is the great amount of information. You can find yourself endlessly pursuing minute details and let the computer take over your life. Or cleverly manipulate information to free up your energy to do all sorts of productive things more effectively.  I have lived the dangers of a data base and appreciate how liberating it can be.

If you are like most salespeople you will encounter a lot of contacts over the years--some will become loyal customers for at least part of what you sell, others might adopt you as their secondary supplier, some seem promising, but elusive and some of them might not seem very promising under the present circumstances. Others are just a name you haven't gotten around to yet. I have sold things through wholesalers with the support of retailers and consumers. They are all important and all inter-related.

There are an awful lot of details and an awful lot of "suspects" out there that can clog up your efforts, but it is hard to predict just what little tidbits will help you connect to your prospect, understand their situation, earn their trust and make a sale.

I designed my own system, but there are plenty of systems already set to go that have been well thought out. Before you decide on the design of a data base system carefully consider what you want to do with it. You can and probably will modify it as time goes by, but it is far better to do it right the first time. I am only one source for ideas and you would be wise to study your objectives and resources in depth before actually setting up your data base--not too long though as prospects are making decisions every hour that could impact your success.

A key field of your data base should be action. Everything else is just background to what you need to do in order to convert this information into your bank account.  It needs to be very prominent on your computer screen as it is the compelling reason you should make a contact.  Bold the words as you want them to grab your attention. It could be some routine you have established (so many days after a previous contact) or ideally something unique for the contact. When you are able to offer a solution to their particular problem or answer a question. The action might include something negative such as avoid something or wait for something. Obviously it is better to have some positive action with regard to this client even if it is just to fill in blanks of your information. It is your excuse, your motivation to move forward with this contact.

Getting back to the more mundane, you of course need to identify the prospect which can involve lots of details. These days there are an increasing number of ways to contact your prospect and any one of them could be critical at some point.  Experience will help you identify key facts that can lead to sales. They need to be easy to find.

Each prospect has some sort of time restriction as they pretty well all like to sleep and most of them have some private time and others have their own tasks requiring focus. One factor I found useful is time zones which enables you to hit prospects in a different part of the daily routine.  Some companies may present many persons you contact. They could all be important, if not now, sometime in the future.

Prioritizing is the key task in managing a data base. It can be a very complicated thing so you need to simplify it or at least standardize it. The first step is to use a date sequence that tells you who your next contact should be.  You have made commitments to some and others you have made a strategic decision when your next contact should be. That is not enough in some cases. I found myself sorting 100 people to contact in one day without the ability to even handle half of that. Here I will deal with how you can determine the relative importance of each contact. In part two I will deal with another approach.

Two criteria I combine to determine a contact's priority are potential and responsiveness. There are obvious (but sometimes misleading) indicators of potential such as number of employees or estimated income. Responsiveness is more subjective and really comes down to your experience or judgments of someone you can trust. Use those two criteria to assign a value for each prospect.  Be prepared to re-evaluate after each contact.  These criteria can boil down to one letter and one number so that they can be used for sorting on your data base.

After each contact you may want to re-assign that value. Ideally you are looking for someone with the potential to buy a lot of whatever you are selling and who is open minded to your approach. Practically you may have to accept your best initial contact might be someone who apparently has the resources and the need to buy your product and hasn't yet thrown you out the door. You cannot contact everyone everyday but you want to be sure you have made an effort for the more critical ones in a timely fashion.

The practical way of prioritizing is to sort.  First sort is by date. The second sort is by your value assignment. Each day you should have your contacts arranged by those with the most potential that are the most likely to respond. You will have to make allowances for availability and if actually traveling routing efficiencies should be worked in.

Do not be dismayed that those who you felt should respond right away decide they are not interested and prefer to pursue other priorities. If you have something of value there will be a market that you can discover and develop. Each contact should yield some information that helps you evaluate future efforts.

Once you get started you will find yourself repeating some patterns unconsciously and before you know you are locked in. You may have to make a lot of time consuming changes. Simple things like how you separate bits of information or how you sequence them. You can have a lot of fields which can be good or bad when you are trying to pin down one detail. You can use different punctuations and abbreviations to separate details or find them all muddled up.

This is by no means everything you need to know about designing a data base or even all that I can help you with. But it is too much already for one blog posting.

check part 2 http://www.therealjohndavidson.com/2011/11/using-data-bases-for-selling-part-2.html

The photo is by my son, Michael Davidson on a recent trip to the Czech Republic.