MarketIntellibitsTM                        


May 31,   2005
Volume I   Issue 8

You know you’re in trouble if…
PART TWO: Promotion, Place

Click here for PART ONE Product, Price


We said it last time:
•        The four P’s of Marketing are Product, Price, Promotion and Place.
These are the basics.
•        You’re in trouble if you don’t get the basics right.
•        If you’re not customer focused, you’ve got a problem.

The last issue talked  about  Product and Price.  This issue will talk about
Promotion and Place.

First, Promotion.

In talking about product, I asked:
•        Are you differentiated?
•        What does your brand stand for?
•        Do your customers care about your points of differentiation?

And this is where promotion starts.

With the WHY question.

WHY should I buy your product?

And this is where promotion starts, and often fails.

The medium is important, sure, but the message is CRITICAL. Give me ONE
GOOD REASON why I should buy what you’re selling.

Don’t give me sixteen reasons why what you’re selling is very good (click
here to read about why you’re in trouble if you’re very good). Give me ONE
reason why you’re remarkable.

Get the message right. That’s the hard part. Then get talented people to help
you deliver it.

Which leads me to PLACE…

Here I could get into geography and demographics, but I’ll just focus on the
customer and capture PLACE  this way: You’re in trouble if you don’t own
the customer.

Do you shop at a particular store because they carry your favorite brand, or
do you buy the brand because your favorite store carries it?

Do you shop at the supermarket that’s closest, or do you travel a little farther
for some other reason? If you move, will you stay loyal to that supermarket
chain?

Do you buy a Toyota from Joe’s Toyota because you like Toyota, or because
you like Bob the salesman you’ve dealt with for years, or because Joe’s
dealership is close and convenient for service?

Where’s the loyalty? Toyota? Joe? Bob?

Nowadays, it’s often said, there is no loyalty, it’s all about price. You’re in
trouble if you believe that.

Some people buy Toyota and some buy Honda.  Some buy Bud and some
buy Coors. Some buy paper or printing or chemicals or steel or lumber from
Pete and some buy from Steve.

They can’t all be cheapest all the time, but someone gets the business -
someone has found a way to differentiate. Someone owns the customer, or
at least has some degree of loyalty as long she he or she continues to earn
it.

In the paper business, I learned that some printers have a house sheet that
they will use unless the customer specifies something else. They will
recommend it and their sales people will sell it. But how do they select the
house sheet? Is it because the mill promotes it? Is it because some of their
key customers request it? Is it because they know from experience that it
performs better? Is it all about price?

You’re in trouble if you don’t know.

Are you in trouble?

This stuff isn’t easy. That’s why so many don’t do it and that’s why so many
are in trouble.

Too busy fighting the day to day wars to deal with these questions? I can
help.  Send me an email at:  
 jack.miller@market-intell.com
Or call Jack Miller at 203 925 0326.

© 2005 MarketIntell. All rights reserved


MarketIntellibits  is published semi-monthly  by MarketIntell,  a  Market
Intelligence consultancy founded by Jack Miller, a long time sales and
marketing executive in the paper industry.    

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