April 15, 2013 No Comments

Risk Management and Business Growth

I recently came across this blurb by one of the executives who was involved in the release of New Coke on April 23, 1985. Sergio Zyman says that “he knew New Coke was going to be a disaster almost from the day of its launch”. In a summary of the fiasco at snopes.com the thinking seems to be that this was a genuine mistake on the part of Coca-Cola executives.┬áThere are no analyses that I could find where the risky decision to implement New Coke was put under a microscope from a business perspective, but Coca-Cola’s own description of the event shows that they were surprised by consumer reaction.

Perhaps with the benefit of hindsight, my marketing mind says the whole thing was brilliant. They couldn’t lose! And in fact, they didn’t. Classic Coke was reintroduced and came back stronger than ever, subsequently leading to immense growth in the Coca-Cola company. (more…)

February 7, 2013 2 Comments

When Small Business Fails to Grow – Part 3

Used FurnitureSo here’s the final word on what I think happened to this great little business. We’ve already established that the business owner was capable and knowledgeable, adept in most areas of running his store. The business was capitalizing on multiple marketing pillars and was taking advantage of many of its marketing assets such as owner expertise, location, publicity, unique product, and community relationships.

If so much was going right, what went wrong?

As I mentioned in Part 1, the owner felt that he was squeezed out because he could not compete with “the big boys”, notably Ikea.

Yes, the business could have had a more compelling USP (Unique Selling Proposition) but it was not far off. Most of the messaging about the store in some way captured how this shop was different from its competitors. It had a distinct advantage over competitors like impersonal big box furniture stores. When working with any small business client, our first step is to ensure they have a solid USP in place, because that is the foundation upon which all other aspects of the business can be built. (more…)

January 22, 2013 1 Comment

When Small Business Fails to Grow – Part 1

Came across this note from a contact on Twitter: “My friend just had to close his small shop. He said true retail is dead and that one just can’t compete with the big boys.” This saddens me. This shop closure represents a loss in many ways: loss of capital, loss of jobs, loss of a dream. And it didn’t have to happen. My guess, and it’s probably a good one based on the person’s comment, is that this shop owner didn’t know how to leverage his marketing assets.

He didn’t have a USP — a unique selling proposition. That is the BEST way to compete with the “big boys”. A small shop can differentiate in ways that are beyond the big box stores. It can offer more personalized service, including stronger customer relationships. It can offer niche products that are unprofitable for mass market stores to carry. It can add complementary services that enhance the value to the customer. (more…)

January 15, 2013 No Comments

Hidden Marketing Assets

How much money are you leaving on the table by not fully utilizing all of your marketing assets? If you have a small- to medium-sized business, with revenue under $5 million annually, you probably have some hidden marketing assets that can be leveraged to increase profits, without spending additional money on advertising. These are assets in which you have already invested.

Advertising is a huge expense. If you know exactly how much business your advertising is bringing you, then that’s good! If you can point to the marketing activities that bring in the most revenue, then you’re doing a great job at targeting your market.

But if you have a sense that you could grow, or reverse a downward trend, then there’s probably money sitting on the table in the form of customer data and marketing strategies that are not being put to advantage.

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January 6, 2013 No Comments

Grow your Business with an Up-Sell

A few simple words could be worth hundreds of dollars in increased revenue for your business. The most famous examples of up-selling, of course, are “Want fries with that?” from McDonald’s and in the movie theater “Do you want butter on your popcorn?”. Just asking if the customer wants another item gives them a chance to say Yes and adds money to that sale. Another obvious option is the up-size — “Would you like a Large for 25 cents more?”.

Nearly every type of business has the chance to offer an additional item. At the hair salon, if the customer is getting hair coloring, ask if they want their eyebrows and eyelashes colored as well. Salons already do a good job selling hair care products, but it works better if a similar item cannot be found elsewhere at a better price for comparable quality. If your car is in for maintenance, an oil change “while it’s on the hoist” is a good potential up-sell. It’s even more attractive if there is a discount from the normal price. (more…)

January 2, 2013 No Comments

Four Core Activities for Business Growth NOW

In a New Year, we all like to revitalize our businesses and make plans for growth and improvement. This is a great time to look at how you are spending your marketing dollars and what you can do to get more revenue without increasing your budget.

When I go through an opportunity analysis with a client, I look at four main areas where they can see rapid business growth:

  1. Their Unique Selling Proposition (USP) or extra value proposition.
    What this business does better than any competitor.
  2. Integration of the USP into all marketing and business activities.
    The business and all staff have to be “living” the USP in everything they do.
  3. Existing customer database. This is a huge, often-untapped resource
    in any small-to-medium enterprise.
  4. Alliances and partnering. This is a very powerful way to grow.

 

The free, no-obligation opportunity analysis is basically an asset-finding interview, where we discover the many ways that the business is leaving money on the table. Along the way, we often find other problems that can be quickly solved to increase revenue. (more…)

November 5, 2012 No Comments

All Businesses Need FOCUS

There are many aspects to creating and running a business. The one that needs the most attention, whether in startup phase or as the company grows, is sales. Without sales, i.e., without customers buying from you, you have no business.

It’s easy to get lost in the many details of getting your company set up and functioning smoothly. You need people, processes, infrastructure, stationery, a web site, marketing, fulfillment, and so on. And those things can consume a great deal of a business owner’s time. But all of that is unnecessary until you are making sales. Without sales, all of that is merely a drain on finances.

Instead, focus on the customer. The acronym FOCUS — Focus On Customer Until Sold — is a good way to remember that. You must know your customer inside and out. Who are they? Why will they buy from you? Why should they choose to buy from you and not your competitors? What do you need to do to reach those potential customers? What will convince them to buy now? What do you need to give them when they buy?

Once you have the customer-to-sold equation solidly in place, you have revenue as well as the luxury of time and capital to grow other parts of your business. Customers really don’t care if you have fancy stationery or a nice office. What they DO care about is what your product or service can do for them. Get that right, and growing your business is easy.

April 4, 2012 No Comments

Technology Transfer

I’ve written lately about a new fusion reactor and how the scientific process should be applied to test it. Let me take those ideas a step further by saying that innovation is necessary in this complex world, but technology transfer is even more necessary.

Technology transfer is the passing of knowledge from one person or group to another. We can have the most innovative and useful technologies in the shop or the lab, but unless the word is spread about them they remain unknown. We often cannot count on the inventors to tell us about their creations. Their skills like in making the technology or the discovery, not in marketing or publicity. Besides, a publicity effort would take their valuable time away from further development of their ideas.

Economist Paul Zane Pilzer has written about the “technology gap”: a backlog of technologies in various stages of development that have not yet made it into widespread use. The technology gap exists because the public does not know about these inventions or discoveries. Another reason is because the need for them is not pressing enough; the problems they solve are not urgent problems. While many new products are interesting and even pretty cool, unless they meet a genuine need, they are likely to languish in the development stage. (more…)

October 7, 2011 No Comments

Development Model for the Connected Age

Endorsed Development, a new way of attracting a market for products we want to create.

Since the Stone Age, products have been developed based on need. They were meant to solve problems and assist us in completing tasks. To begin with, it was survival tasks, soon followed by transportation tasks, trading tasks, and leisure tasks. In design, form closely followed function.

As we developed greater technical skills, we began to innovate. We refined designs to be more usable and more attractive. Occasionally, because of cost and demand for the products, designs were adjusted based on ease of manufacture. When we had to get something to market quickly, we concentrated on making it work and shipping it as soon as we could.

Design-Driven Development

With automation and the assembly line, speed of manufacture was handled so we concentrated once more on making things attractive as well as functional. We were still tied to the products-as-solution imperative, but we could add features that we thought were fun. Features became selling points, even though marketers kept reminding us that it was benefits, not features, that sold products.

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May 21, 2011 No Comments

Value of Social Media

Here’s a perfect example of how using Twitter and other social media tools pays off.

In reading the book Branding Yourself: How to Use Social Media to Invent or ReInvent Yourself, I was confused by a paragraph on blog templates. I tweeted my question to the authors via their Twitter contact info provided in the book. Within moments, I received an answer to my question, which generated a follow-up exchange.

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