Negative COST marketing
Negative COST marketing
So, you don't believe the title to this article, huh? The fact is that people will pay you for the right and privilege to market your stuff for you. Can you think of any example of this happening today in your city or town? Sure you can�just look at your local sports teams.
Isn't it amazing that sports fans (dont forget that is short for fanatics) will pay not just the normal margins but super-margin prices for clothing or other items imprinted with their favourite teams logo on it?
Gee, Reverse Cost Marketing Does Exist After all
They will happily walk around (like out-of-work folks did during the Great Depression of the 1930s wearing sandwich boards in exchange for food) with a Lakers� Jersey or a Raiders Cap promoting their affiliation with their team.
It wasnt that long ago that people use to keep their underwear inside their clothes and, by the way, keep the manufacturers nametag hidden too. Now, they think nothing of having Calvin Klein prominently displayed on their CK clothing or purse or wallet or whatever and, better still (at least, for CK�s bottom line), they will pay CK for that right to advertise Calvin Klein.
People Used to Keep their Underwear Hidden
Now that is negative cost marketing.
So how does that impact the promotional products industry? Well, it matters a lot�the industry has to move up the value chain and offer large, national clients and even local clients too the type of solutions they need in order to keep ahead of their competition and to stand out in a noisy environment. Remember promotional products work because they are on display for months or years even.
Pepsi recently unveiled a new campaign (www.PepsiStuff.ca), which not only sells Pepsi branded merchandise on a totally cool site (done by Ottawa-based FuelIndustries.com) but co-brands some of the stuff with partners like Reebok, Sony, Timex and others. Presumably, their partners are also helping to pay the freight on this.
Pepsi Cobrands with Partners like Reebok
Now it�s true that Pepsi is not actually selling their merchandise for cash but it might as well be�they are using Pepsi points instead but the more a consumer drinks and the more Pepsi they buy, the more points they get so, in a way, Pepsi is getting paid. And these points programs work really well when the program owner (Pepsi) sells points wholesale for cash to others (like Reebok, Sony, Timex, RogersATT, FamousPlayers and more) who in turn use these points in their loyalty programs. (E.g., buy a cell phone from RogersATT and get so many hundred or thousand Pepsi points�) This leverages the investment and turns this marketing program into a negative cost in a hurry.
What all this means is that the promotional products industry has get out of the simplistic product pushing business and into the solutions space. It is a better to pitch to talk to your clients and tell them that, maybe, they can make money promoting their products. The industry has to examine every one of its clients requirements and ask the seemingly contradictory question: Will people pay for Free Stuff (FS)?
Copyright. Warren Gencher,President, Brymarkpromostore.com, one of North Americas leading providers of TQA marketing solutions in the promotional products space. warren@brymark.com
Negative COST marketing - To learn more about this author, visit Warren Gencher's Website.
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Why People will Pay you to Market your Stuff
So, you don't believe the title to this article, huh? The fact is that people will pay you for the right and privilege to market your stuff for you. Can you think of any example of this happening today in your city or town? Sure you can�just look at your local sports teams.
Isn't it amazing that sports fans (dont forget that is short for fanatics) will pay not just the normal margins but super-margin prices for clothing or other items imprinted with their favourite teams logo on it?
Gee, Reverse Cost Marketing Does Exist After all
They will happily walk around (like out-of-work folks did during the Great Depression of the 1930s wearing sandwich boards in exchange for food) with a Lakers� Jersey or a Raiders Cap promoting their affiliation with their team.
It wasnt that long ago that people use to keep their underwear inside their clothes and, by the way, keep the manufacturers nametag hidden too. Now, they think nothing of having Calvin Klein prominently displayed on their CK clothing or purse or wallet or whatever and, better still (at least, for CK�s bottom line), they will pay CK for that right to advertise Calvin Klein.
People Used to Keep their Underwear Hidden
Now that is negative cost marketing.
So how does that impact the promotional products industry? Well, it matters a lot�the industry has to move up the value chain and offer large, national clients and even local clients too the type of solutions they need in order to keep ahead of their competition and to stand out in a noisy environment. Remember promotional products work because they are on display for months or years even.
Pepsi recently unveiled a new campaign (www.PepsiStuff.ca), which not only sells Pepsi branded merchandise on a totally cool site (done by Ottawa-based FuelIndustries.com) but co-brands some of the stuff with partners like Reebok, Sony, Timex and others. Presumably, their partners are also helping to pay the freight on this.
Pepsi Cobrands with Partners like Reebok
Now it�s true that Pepsi is not actually selling their merchandise for cash but it might as well be�they are using Pepsi points instead but the more a consumer drinks and the more Pepsi they buy, the more points they get so, in a way, Pepsi is getting paid. And these points programs work really well when the program owner (Pepsi) sells points wholesale for cash to others (like Reebok, Sony, Timex, RogersATT, FamousPlayers and more) who in turn use these points in their loyalty programs. (E.g., buy a cell phone from RogersATT and get so many hundred or thousand Pepsi points�) This leverages the investment and turns this marketing program into a negative cost in a hurry.
What all this means is that the promotional products industry has get out of the simplistic product pushing business and into the solutions space. It is a better to pitch to talk to your clients and tell them that, maybe, they can make money promoting their products. The industry has to examine every one of its clients requirements and ask the seemingly contradictory question: Will people pay for Free Stuff (FS)?
Copyright. Warren Gencher,President, Brymarkpromostore.com, one of North Americas leading providers of TQA marketing solutions in the promotional products space. warren@brymark.com
Negative COST marketing - To learn more about this author, visit Warren Gencher's Website.
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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