Tricks to double sales.

How to use a little trick to double sales.

There are some examples of successful campaigns which allowed to improve sales of products significantly.

Timberland.

From the history of Timberland: In the early 1980s the company Timberland had the difficult times. It produced high quality pumps, whose price was lower than the industry leader, the company Topsiders. It seemed a good product and low price should have been working on them, but things did not go well. Then Timberland made a very simple solution: they raised their prices (they became even much higher than the price offered by the Topsiders). Sales rose sharply.  It confirms the accuracy of statement by David Ogilvy "The higher the price, the product becomes more desirable in the eyes of the buyer." The same method of "artificially inflating demand" is typically used by luxury-brands.

Alka-Seltzer.

Once in the 1960s it was decided to throw two tablets of Alka-Seltzer in a glass of water in the advertisement (not one as before). Sales of the drug have increased exactly twice. This advertising trick was invented by agency ‘Tinker & Partners’.

The same analogy is used in the advertisement of chewing gum. Also there is a marketing tale that a brilliant marketer created the trick about necessity of washing hair twice (apply shampoo, then wash off and to apply it again). And all these ‘ double tricks’ work! Companies have double sales.

Tefal.

Tefal believed during the long time that the main motivation for buying Teflon-coated pans was the fact that cooking in these pans did not require using a single gram of oil. However, later it became clear that the main incentive for their purchase was the fact that such pans were very easy to clean, because the food does not stick to the surface. The  content of the advertising campaign was changed and such step significantly increased its effectiveness.

Harley- Davidson.

 Producer of the most famous bikes in the world holds first place in the number of "branded" tattoos. Everything it started with the fact that Harley announced impressive discounts on bikes for those who come to buy a motorcycle with a Harley Davidson logo tattoo. 

The power of color.

Developing the corporate image, print advertising, packaging or logo, it is very important to think over deign carefully: to find the right position of the text, to paste the spectacular picture and to choose the color, on which background advertising goods will be treated in the best way. In this case, according to psychologists, the choice of colors should be the thoughtful decision, because the color creates consumer emotions and causes a reaction. With the choice of a particular color it is possible to control the consumer attitudes to advertising ,  and when you create the necessary color environment you can cause favorable view of advertising consumers on the brand and their desire to buy the advertised product.

Red.

Adjusts to the determination and can cause a person's strong desire to make this or that act, make vigorous effort and to buy the advertised good. The semantics of this colour - attention, do not pass by, acting for the action: bold, lightly resisting his first feelings. Red is also possesses a certain sexual charge. This is especially important to take into account for those who advertise products designed for men, because for them red colour has always been significant.

Yellow

Adjusts to the communicability. Yellow is the color of openness and sociability.  It also helps to give balance of emotions, to find inner peace, to calm. In addition, yellow is able to "give" the object intelligence, so, for example, advertising, high-tech products is best done in yellow. This color will be successful in advertising children's products, services, travel agencies, advertising and PR agencies.

Green.

Green softens everything, takes the edge experience off . This color has a healing, relaxing effect. And it will be appropriate and effective in the advertisement of medicines, health and environmental protection.

Blue.

Blue one helps to concentrate on the essentials: not to blur on the little things, do not dissolve. Blue item in the catalogue or brochure attract attention immediately, and, in contrast to the red, never cause negative emotions.

Purple.

Color of inner concentration. This color helps to the inner groove: it helps to abstract from all currently unnecessary and concentrate on the main issue. Another interesting detail - Purple well stimulates the brain and contributes to solving creative problems. It is no accident, that purple is loved so much by creative people. Therefore, advertising oriented on creative elite, should have at least detail in the purple.

In general, the closer to the East, the more importance is given to the symbolism of color. In China red color means kindness and bravery, black - honesty, and white in contrast to the generally accepted European symbol of purity and holiness, is associated with treachery and falsity. Therefore,  developing an advertising campaign, for example, in China, you need to choose the right colors, otherwise there is a chance of being misunderstood.

The importance of the logo.

Why the logo is so important?

Because it is the face of the company and the first thing which appears in the person's mind when he or she thinks about the brand.

1. Logo - the first thing that gives an idea of ​​your company, when a person is faced with it the first time.
2. The logo must be durable.
3. The logo must be original.
4. The logo should look expensive.
5. The logo should reflect the time and the meaning of the company.
6. Logo - is the starting point in all the corporate image.

Here are some examples of logos that are recognized around the world and really are the faces of the companies.

One of the interesting things concerning the creation of valuable and profitable logo is the importance of colour selecton. About the power of colours I will tell in the next post.

Last week we discussed consumer behavior, CSR (corporate social responsibility) and segmentation mainly during the marketing classes.

I’ve realized that a good example of the company which successfully manages with lots of themes, including ones we have discussed, could be well known around the word Starbucks.

 I would not like to write about its target market or profitability or anything else you can find anywhere if you are interested in it.

So I think it is much more interesting to get to know about some unusual things which helped Starbucks to appeal customers word widely.

1.      1.  When social survey of Starbuck’s visitors was carried out, company found out that the social experience was the main factor of choice place for having coffee. The atmosphere of communication was created in coffee shops intentionally, because co-owner of the company and its CEO Howard Schultz were convinced that not only coffee brought people in such places, but also personal experience. So they tried to do everything for creating such atmosphere: comfortable sofas, fireplaces, gently curved lines of interior, free internet.

Howard Schultz emphasizes that his business is not to fill stomachs but to fill the soul. He even thought out the term "third place" - a balance between work and home.

2. Starbucks always focuses on the social responsibility. Ecology, only the adult labor, the principles of "Fair Trade".  In 2006 nearly half a million pounds of coffee was sold by the company, and 6% had been certified as Fair Trade. Not so much about all of Starbucks, but a decent respect to other manufacturers.

3. Open communication with visitors almost written in the official instructions of barista. Unsociable people, even if they are great professionals, Starbucks will not hire.

A serious problem appeared in the mid-2000s when new machines for making coffee had been bought. They were too big and blocked the barista from visitors.  In result, bar stands were modified to lower coffee machines

4. Buying coffee, you can choose: get free corrugated cardboard ring or pay a little extra sum and get a beautiful polyurethane logo Starbucks one. In such case you have not to throw it with the glass but you can carry this ring to the next coffee shop. No matter will you buy coffee at Starbucks or not, the logo on the ring will glorify Starbucks. So this little thing shows the care about people and the environment plus it is creative competitive measure.

Moreover, thermocups which you can buy in coffee shops have the same idea so it is the additional advertisement, not only the way to show other people that you use prestige and popular good.

By the way, reusable mugs and glasses or completely recyclable dishes - it is what Starbucks strives to achieve in the boarders of nature protection program. They say that by 2015, they will carry a reusable coffee iconic advertising.

5. The entrance should be oriented only on the east or south and there are not superstitions. Directors of company say ‘Just when you drink coffee, you want to enjoy the natural light but don’t want to get the sun right into your face’.

6. One of the Starbucks peculiarities is the fact that there are many stores which pay exactly one dollar per a year to landlords and landlords do not stay with nothing. Starbucks knows that the client will come for coffee, the atmosphere, the name written on the glass, good music. As a result, even almost hopeless place will become a checkpoint. So Starbucks and landlord are in the win-win situation.

What have I got to know about marketing this week?

As far as the guest lecturer’s presentation is concerned, I’ve learned five main things which can be useful for the running your own business.

1. Previous experience and the base of clients can help to avoid some common obstacles at the beginning, help to pass the most difficult period easier (e.g. you will not have find first client anywhere, because you already have some of those who had been satisfied with your service before, so it will be great and valuable at the beginning-much better then nothing)

2. It is great to be competent both in the Business Science  and in the sphere your business is going to be organized

3.It is very important to find business partners, in such case you have more chances to get lots of new clients.

4. Create good website for your company

5. Enjoy things you do

Moreover, I’ve got useful theoretical knowledge about some topics in marketing and I think that the most important things concerned macro and micro environment ( especially I am interested in the information about tendencies in demographics and their influence on the customer behavior). Also, in my opinion, scheme 'the marketing planning process' (which was provided in the presentation 'marketing and business performance') and its explanation were really significant. And, of course, all of us should take into consideration key questions of planning. 

Market and product orientation.

 Mainly, there are 2 types of business orientations: Market Orientation and Product Orientation. Obviously, there are some peculiarities of each kind of orientation.

 A market orientated company:

• is one that organises its activities, products and services around the wants and needs of its customers
•  does intensive marker research and product ranges carefully designed to customer preferences.
• tools: 1. market research, 2. market testing, 3. customer focus
• examples: Zara,  H&M, Dior, Audi, ...

 A product orientated company:

• focuses on its product and on the skills, knowledge and systems that support that product.
• keeps an emphasis on quality, safety and investment in new technology.
• tools: product research, product testing, product focus
• examples: the Gillette Company (but it has good enough marketing), pharmaceutical companies (e.g. Glaxo), investigative centres,...

  Moreover, successful companies realise the importance of both approaches. The decision what to produce 'must be started with the needs and wants of customers, but delivery of a profitable product depends on the efficiency and quality of production.' (c) http://businesscasestudies.co.uk/business-theory/operations/market-and-product-orientation.html

So in reality, market and product orientation are closely intertwined and the good example is Apple Inc.

I think that it is easy to find a great amount of good illustrations of the market orientated companies in the fashion industry. Thuswise, I would like to corroborate above with the example of Zara.
Why do I think that Zara is a good example ?
Because this business is run according to customer needs, consequently, the company tries to please customers first of all in different ways and there are lots of evidences of it.

• 'The customer is at the heart of our unique business model' (c)  is told on their official web site.
• eco-friendly company (nowadays it is very attractive and important for many customers)
• they use ecological fabrics ( e.g. good for allergics and children)
• affordable prices 
• latest trends (e.g. Zara's supply chain allows to design, produce and deliver clothes in 15 days and the collections are regularly renewed)
• variety of convinently located stores (There are a total of 1,671 Zara stores)
• high quality
• advertisement (e.g. some famous people were faces of the company) 

 In conclusion, I found really interesting and cognitive video describing the unique business model of Zara (I am sure that it will be useful for you to watch it not only for the outlook development but also for the Supply Chain Management course)

• http://www.youtube.com/watch?v=qhCM0F81vEg