Simple Marketing Efforts Sometimes Effective
Day in and day out we are hit with advertising messages that are at times becoming so complex they are flying above the heads of the intended markets. Although these types of "thinking" marketing efforts can be very effective they have their place and time. With the economy the way it is today even organizations that are doing very well are reluctant to spend money in a way that may be viewed as frivolous. Think of what happened with the major bank last year that was going on a golf outing while borrowing money to stay in business.
That leaves three real possibilities all of which have their advantages. First a business can elect to not advertise at all. Obvioiusly this is not the ideal approach to gain market share. A second option is simply to spend less. The promotional products market is being dominated right now by products like the Fuzz from Leeds. A couple of years ago nobody would have even taken a look at this product at the top firms. They would easily have passed it over for more premium items. Lint brushes are hardly the giveaway of choice for top executives but they will carry a logo and do it in an economical manner. Along the same lines the lightbulb keychain has all of the virtues associated with LED type keychains which can provide an end user with safety at night but is affordable and will not be viewed as breaking the bank. A final approach would be to replace an item used on a dialy basis such as the Leeds Double Wall Ceramic Tumbler which can be used in place of a regular coffee cup. The advantage of this type of approach is that it serves two purposes, first it reduces the cost to the end user employee or client and actually helps to decrease the amount of trash and second although it is a premium item it does not carry the baggage a high end leather or desk gift might.
Meanwhile the imaginary world our politicians live in continues to provide evidence on a daily basis that the disconnect grows. Treasury Secretary Geithner indicated on the Sunday talk shows that the economy is growing more rapidly than they expected. Of course he glossed over the 10% unemployment rate, growing commercial real estate problem and also increasing fuel prices. These are all factors that are going to continue to impact families and as a result will temper any recovery. Instead we will be left with a recovery that has fits and starts much like we saw at the end of 2009. In addition there appears to be no acknowledgement of the shift going on overseas. Instead of shipping products to the USA we are finding factories overseas are either holding containers or are shipping products elsewhere to economies that are recovering more rapidly than we are domestically.
To see more of the Leeds product line take a look at Leeds site. They offer over two thousand promotional products and the number continues to grow each day.
An Alternative Approach To Buying Green
The focus for Earth Day tends to be on buying recycled and other environmentally friendly products. Quite often very little time is given in consideration of where those products may be coming from or of the carbon footprint involved. Having some experience in this industry suffice to say there are gigantic problems with the promotional recycled business as it is now.
An alternative to buying an item that may be recycled from materials made half way around the planet is to buy a one trip item. By this we mean an item designed to degrade in the ground. The Biodegradable BPA Free Sport Bottle not only has the advantage of falling into the eco-friendly category but it does so at a much lower cost to the environment. Almost all of our current recycled promotional items manufactured by ASI suppliers are of questionable origins. The underlying first use products such as the water bottle are used domestically before being piled into containers. These containers often end up being loaded into larger containers before they are shipped to Asia. At that point they are recycled into new products which are then again shipped back to suppliers throughout the country. Rather than going through all that trouble and burning all that fuel it makes more sense instead to choose a product that will break down in a landfill at no additional cost to the environment. This particular bottle is one of the few we have come across that is also BPA free. Although the debate rages on about BPA there is no sense in having a product that contains it at this stage.
Last week witnessed some mediocre economic news. There are several reports due out this week that will shed a lot of additional light on how business is going. In our eyes it is pretty clear though that with job losses still mounting and gas prices also increasing there is little hope for a substantial recovery. Instead we are in a pattern once again of fits and starts as the economy grows for short periods after intervention from the government only to slow again later. We will begin daily updates on Monday and look forward to providing additional reviews.
Poor Decisions Plague Great Dramas
Picture a scenario in which you have a popular product that is in high demand. Any person with a marketing degree or basic business background would do everything within their power to culvitate that product brand and extend the popularity and dominance of it. Unfortunately for many of us that enjoy television from time to time the major network executives appear to have misunderstood this valuable lesson.
It was only a few years ago that ABC started the nonsense by taking a popular show in NYPD Blue and putting it on a multi-month hiatus only to bring it back after winter ended. The net result was a loss of audience as viewers got confused or just lost general interest. It reminded me a lot of what a major soft drink manufacturer tried to do in telling consumers how they wanted to behave. You will all remember the brightly colored bottles on store shelves that were gradually replaced by the "classic" version of the soda. NYPD eventually ended up off the air even as some of the greatest episodes were being produced. That same network continues to ruin shows that if given the chance may well have the success of classics such as Lost. Instead of working to extend the brand and allow consumers to get into an established pattern of consumption they continue attempt to tell us how we want to view their product. Anywhere north of about the 38th parallel is busy shoveling or being cold in December and January. It is a great time of the year to cuddle up by a fire or with your family and watch television. Unfortunately we are bombarded with repeats during that time or worse the dreaded middle of the season launches.
There is a lesson to be learned in all of this and in the next day or two we will tie this back to the promotional products industry which is suffering right now from major product shortages. Part of that is due to major increases in business since last year but a good part of it is the same poor decision making that plagues the networks. Give your customers what they demonstrate they want and more importantly give them time to determine whether or not they actually want your product or service. If interest is shown continue a consistent approach and avoid the random and unsuccesful marketing strategies that continue to make failures out of what would be successful shows. With news that Flash Foward is likely to be cancelled and with V struggling the long term guaranteed method of ruining ratings by boring customers for months at a time has struck again.
Economic news was wobbly at best yet we continue to see fuel prices accelerate northward. Astounding that the major media outlets have ignored what was one of the warmest winters in recent memory over a good majority of the USA and instead continued to tow the line for the major oil companies. Our economy will pay a steep price later this year. We have talked about keeping your message cool and that is all that much more important as we head into the buying season where picnic items are important. The same unfortunate marketing strategy was employed by Congress as we discussed in Proper Promotional Could Help Health Care Reform and in a few months they too will see there are consequences to not marketing a product properly.
Maintaining a Stainless Reputation More Difficult
A few years ago it was not all that difficult to maintain a solid reputation with your clients by simply taking orders and getting them out the door in a timely manner. During the high times of the last economic boom manufacturers were spending so much money on inventory they would spend months unloading out of program products. That all changed during the financial crisis and the net result is it is tougher today than it has been in many years to provide reliable service to your clients.
When providing a proposal to your client be sure to check and make sure the inventory is deep. If you are quoting a thousand piece order and the supplier only has a thousand pieces in stock your best bet is to find another product. Nothing screams amateur more than giving your client a product to select and then having to go back and tell them it is out of stock. Take the Colorband Stainless Bottle which is made in three colors. All of these colors are available to the point of several thousand in immediate inventory. Surely you cannot control quick and unexpected shortfalls but there are enough color options and enough pieces in each that you should be safe even if it takes a week to decide. With deep availability in the same three colors the Leeds Deco Band Stainless Bottle is another choice that will provide you and your client with some level of security in the coming weeks and months. If you are researching large orders you may want to even check with the manufacturer to check into overseas production at a discount. Be aware though that there are some significant difficulties getting containers across from Asia as prices have skyrocketed. In either case please remember to check inventory before recommending a product to your customer. Almost all of the major vendors provide instant public access to this information so there is no excuse for leading your client down the wrong path.
Apple announced the release of their 4.0 software this Summer. Hopefully it will take care of some of the existing problems such as the voice control issue I discussed earlier. It is likely that the introduction of multi-tasking may get around the issue entirely as it would no longer overtake the other controls. At the same time news of initial sales of their newest product have been strong but whether or not that continues in the weeks ahead remains to be seen.
Insulating Business Growth with Ceramics
By now we all know that the economy is only slowly starting to recover after millions lost their jobs and businesses closed all over the country. Billions have come out of the economy and as a result spending for less than vital projects such as promotional advertising have been trimmed. Aside of the few businesses directly tied into major contracts with the government most other organizations have kept spending to a minimum.
That does not mean a popular or exciting product will go ignored. Take for example the 11 Ounce Double Wall Ceramic Mug which was released this year by Hit. There have been several other suppliers that have released similar products but what differentiates this offering from Hit is the fact that they actually have sufficient stock to sell during the busy season. With dual wall insulation your hands are protected and your drink stays warm or cold. Another interesting release is the Flexi-Vase which is something we have never seen before in the industry. It is a combination flower vase and paper weight that folds completely flat when not in use but is water tight as soon as it is filled. This is an ingenious idea and one that someone should patent as it eliminates the hassle of trying to store a bulk vase under the sink or in a cabinet. Another important attribute of the vase is that it is resistant to breaking which is important for a hospital or other similar facilities. Both of these products demonstrate that a popular or innovative product will sell even in a bad economy.
As I discussed yesterday the problems with my current phone continue to mount. Today it went off into voice control no less than seven times in the course of two hours. The only thing that seems to help is a hard reset. If others have any ideas I am all ears but at this point I am resigned to the fact that my expensive smart phone is one of the dumbest devices I have ever purchased. I talked awhile back about major retailers providing examples of poor customer service but today it appears a major international manufacturer is providing the best example of terrible service. With all the hype surrounding the new iPad I can only wonder how many deficiencies it will ship with and how tolerant customers will continue to be in that situation. Look for further discussions in the next few days regarding new and popular products.
iPhone 3GS Voice Control Activates Randomly
About a month ago I upgraded the original iPhone 3G which I had purchased a year ago to the new 3GS. I had decided to upgrade the 3G for two main reasons. First because I was tired of the GPS issue that occurred whenever I locked the phone with a pass-code and second because the battery life had become so bad I needed a new phone.
Little did I know I was just picking up another phone with a new set of problems. After picking up the phone at the AT&T store I could not make calls for several hours. Calls to the service center yielded apologies for problems with the activation servers which seemed strange as we were months from any product launches. I took that time to update to the latest software and setup the phone. That evening I headed to the gym with a phone that still would not make calls but at least a functional music player. Upon arriving to the gym all seemed great until I accidentally bumped the voice control interrupting my workout and music. Ten minutes later it happened again, five minutes after that it happened once again. A month later it has probably happened a thousand times with no clear resolution available from the manufacturer and widespread forum reports of the problem.
The only fix to the iPhone voice control issues seems to be a hard reset. At least in the case of my phone it buys me another twenty or thirty minutes of uninterrupted usage before it happens again. I have tried new headphones and different model headphones to no avail. I have tried to reset and restore the iPhone as the troubleshooting pages indicate without any success. The only thing that seems to help is a hard restore which would seem to indicate a potential software problem. Between the issues of reduced battery life and inaccurate battery gauges I am at the point of wondering whether or not Apple® is back where they were in the 1990's where success went to their head. With so many other smart phones touting higher resolution cameras, faster processors and greater battery life one of the key features that separates this device is the access to iTunes. If that feature is defective as it is now for some users you have to wonder if the loyalty of customers will change down the road.
Proper Promotion Could Help Health Care Reform
I think what has been most interesting about the entire health care debate the past month is that almost nothing has been said of the actual benefits to the people. Sure there has been a lot of talk about the supposed benefits to the nation as costs for social programs is diminished but that means very little to the average person on the street struggling to survive. For certain those against the plan have been very vehement about what they believe are dire consequences of the potential legislation. Let's take a look at some of the details using existing examples as a guide.
Prior to that I would like to mention after having used a PolyPro Non-Woven Cooler Tote for the better part of three weeks I am pleasantly surprised by the durability. To be frank this is not the high end tote you would give a million dollar a year client but it is fine for conventions or corporate events. The rage in the last year has been polypro materials because they are inexpensive to manufacture and in almost all cases easy to recycle. Organizations are still finding recycled goods to be a bit too expensive as is the case with the Recycled PET Big Grocery Tote which although it features very slick lines and the green tag that everyone wants is still priced roughly double that of traditional polypro. That makes it a difficult sell still at this point in this particular economy. The only hope is that manufacturers do not bail on making recycled products and view the slack demand this past year as any indication of future demand. As soon as the economy bounces upward these products will come back in vogue.
Back to health care and the great debate of the 21st century. In one State where they have already mandated universal care there is one slight problem in relation to the supposed decrease in costs to consumers. Prices have continued to rise and are roughly three times what it cost just a few years ago. Using the connector site provided by the State a policy for a healthy twenty five year old man would run almost $600 a month with full coverage. That would equate to roughly 50% of the income level for the average person in some other parts of the country. It is very hard to believe this plan will make much of a difference to the average person paying for their own care. For those on the upper end of the spectrum it is possible costs will even increase and it has already been well discussed that associated taxes and costs will increase. These are all unfortunate consequences of insuring tens of millions without coverage at this point and in most cases without the means to pay for it themselves. Something clearly had to be done. Costs were spiraling out of control on all ends of the equation. The question that only historians will be able to answer was whether or not this was the correct approach.
Check out some of our earlier talks like Keeping the Message Cooler this summer for interesting information about new products.
Keeping The Message Cool
There are literally hundreds of thousands of ways to get your marketing message out to the general public and your customer base. Very few executives consider the timeliness of providing your message on a medium that is delivered at the right point in time so as to maximize your return on investment. Quite often in the advertising specialties industry clients are directed not towards the hottest item but instead the most available.
With millions out of work that means even those employed may have someone at home heading to the park this summer. The Family Picnic Cooler Set works as both a functional day to day cooler because the wine portion can be substituted with the new 2 liter soda bottles and as a more upscale weekend cooler for contemporary adults. For those looking for a more practical solution to your summer cooling needs while recognizing the tighter budgets of today the PolyPro Insulated Tote is made from earth friendly materials, can be washed and is available in a multiple colors. The beauty of polypro is that it allows manufacturers to deliver a greater set of features and a larger unit footprint than other materials. If you are looking to provide a recognized brand the California Innovations 12-Can Cooler Sling is a multi faceted bag with PEVA lining. Whenever possible you want to request PEVA lining as it is far safer than earlier liner materials that were made with potentially dangerous substances.
Coolers provide a unique opportunity to not only touch the initial end user but in the case of family oriented coolers thousands of other potential clients. A cardinal mistake that we see many clients making is excluding their number or web address from the logo print area. Any other form of advertising would come with critical contact information. Unless you are major local, regional or national business there is an excellent chance your target audience will have no way of easily gathering your contact information. By placing a simple web address on your bag or directing your audience to the various social media sites you are maximizing your marketing efforts.
With the economy continuing to stutter slowly forward there is little doubt that we have endured one of the longest periods of stagnate economic growth in modern history. Despite historic involvement of the various governmental agencies many critical sectors are still unstable. Marketing budgets are still being trimmed and despite the rapid build in inventories and associated growth at the end of last year this year looks to be a struggle for many.
Two Tiered Memberships Lead to Angry Clients
Everyone is looking to save as much as they can with the bad economic news. Every bit helps and now more than ever your clients are more aware of piece prices and also any charges associated with orders. The same holds true in the regular world as consumers look to save on everything from coffee to cereal. Private label brands continue to outperform more expensive national brands as people try to extend their resources. Memberships in all types of civic organizations are suffering and charities are having some of their worst year in decades. Smart business owners are doubling their efforts to gain customers from weaker competitors but not all of their decisions make sense.
Take for instance the local fitness center that is struggling to increase their membership base as customers have moved to a newer less expensive nearby competitor and others have just decided there was no longer enough money in their personal budgets to pay dues. There are three ways this business could have made an effort to make up for the lost revenues. The first and easiest method would be to increase the per person revenue. In this setting that would be accomplished by extending the services offered such as opening a juice bar or adding equipment or classes that require additional fees. Other opportunities would exist in terms of selling promotional gear to clients but that ship has sailed so to speak and the days of "cool" gym gear are gone. Another option is to simply raise monthly rates which in good times might work but in the recession it would simply result in customers either forfeiting their memberships or going elsewhere. That leaves the third option which is the age old method of increasing sales which is to obtain new customers. This is easier said than done and most gyms have already exhausted potential clients in any given area. After newspaper ads have failed and signage in the streets have blown over the only way to draw people into the gym are special offers. The problem with any second tiered pricing strategy is that it will inevitably alienate the customers that have stayed with you all along.
In this case new customers off the street or those that have been gone for a few months are rewarded with paying one third of what steady clients are required to pay. It may increase sales initially but it will create a significant amount of negativity amongst old members and will cause some to outright leave and go to other facilities. The only way to pull off this type of discounted membership is to offer existing clients something in return which is either a discount on premium classes or at the juice bar. Perhaps giving them a piece of clothing with the gym logo would also help but all too often the gym owners blinded by the influx of what will mostly turn out to be short term customers see the money coming in the door without realizing they have won the battle but lost the war. Newspapers are littered with stories of these types of programs going bad and facilities vanishing. In fact many States have now adopted laws that protect citizens with insurance in the case that a facility were to vanish.
Consider your sales activities closely and weigh the possibility that an existing client may not view it as favorably as new clients. In the end it is customer retention that will keep you profitable not new customers constantly jumping from vendor to vendor shopping only on price. No business will ever survive catering to clients that shop purely on price.