Lesson #2: Use Subtle Marketing to Evoke a Strong Message
Lesson #2: Use Subtle Marketing to Evoke a Strong Message
First of all, Popeil knew the importance of timing. His infomercials only ever appeared late during the nights, on weekends, or in the early mornings. After much experience, he realized that these were the times when people were most relaxed and thus more willing to place an order. Especially when it came to more expensive items – $30 and up – Popeil wanted to reach people when they would be more easily willing to buy.
If Popeil thought viewers might reactive negatively to the high price of an item, he came up with the idea to divide the cost into multiple payments. For instance, his as-seen-on-TV Pasta Machine had a retail price of $159.80, but fearing that buyers would be scared off, he sold the product for “just four easy payments of $39.95”. His strategy worked; he sold over 250,000 units of the Pasta Machine, grossing $40 million in the process.
Popeil also understood how to time the actual taping of his infomercials. When he was just over halfway through the commercial, he would ask for the order at least two or three times. This allowed the viewer to get all the information and still have enough time to help make up their mind. He knew that asking for the sale too early on would backfire; viewers would not be ready to buy in the first half of the infomercial and asking them too soon would only turn them off. You had to demonstrate the product’s benefits over and over again to convince viewers of how it would improve their lives, and then go in for the kill.
Of course, there were also the very phrases Popeil coined that would help sell his products. There was always “one more thing” that Popeil just had to show viewers about why his product was so great. He would also always countdown to the actual price of the product, saying “You’d probably expect to spend,” starting at a much higher price, and then working his way down. As the price got lower and lower, the viewer’s perception of value went up, and in the end, the deal would seem too good to pass up.
Once a viewer had been hooked and decided to call in to place their order – with the strategic 1-800-43-RONCO toll free number – the pitch still was not over for Popeil. He used a number of back-end marketing strategies to increase his profits even further. For instance, as soon as the telephone operators got the buyer on the line, they would begin to tell them about all the available accessories for the product that were also available for sale. Why just buy the Pasta Machine, when you can also have the four-way ravioli maker and the video cookbook for just an additional $39.95?
To save when it came to his production costs, Popeil was often able to negotiate a deal with local broadcasters. In exchange for free air time, Popeil offered them a percentage of each sale he made. For his Pasta Machine infomercial, Popeil was also able to score a deal with General Mills to use their flour in his live demonstration. The company agreed and gave him $100,000 for the product placement. He reached a similar deal with Bertolli Olive Oil Company for simply having a bottle of their product on the screen.
Popeil knew he had to do whatever it took to lure the buyer in, but it had to be subtle. The more overt the strategy, the more viewers would be turned off. “After all,” he says, “those people were here for something else. They didn’t come to buy what I was selling.”
Lesson 2 Use Subtle Marketing to Evoke a Strong Message
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Popeil is one of the modern mavens of marketing. From his experience selling on the nitty-gritty streets of Chicago, to his more mainstream infomercials, Popeil came to understand just what would make people buy his products. It did not matter whether it was a can of spray-on hair or a food dehydrator, Popeil could sell it to. And, here is how.
First of all, Popeil knew the importance of timing. His infomercials only ever appeared late during the nights, on weekends, or in the early mornings. After much experience, he realized that these were the times when people were most relaxed and thus more willing to place an order. Especially when it came to more expensive items – $30 and up – Popeil wanted to reach people when they would be more easily willing to buy.
If Popeil thought viewers might reactive negatively to the high price of an item, he came up with the idea to divide the cost into multiple payments. For instance, his as-seen-on-TV Pasta Machine had a retail price of $159.80, but fearing that buyers would be scared off, he sold the product for “just four easy payments of $39.95”. His strategy worked; he sold over 250,000 units of the Pasta Machine, grossing $40 million in the process.
Popeil also understood how to time the actual taping of his infomercials. When he was just over halfway through the commercial, he would ask for the order at least two or three times. This allowed the viewer to get all the information and still have enough time to help make up their mind. He knew that asking for the sale too early on would backfire; viewers would not be ready to buy in the first half of the infomercial and asking them too soon would only turn them off. You had to demonstrate the product’s benefits over and over again to convince viewers of how it would improve their lives, and then go in for the kill.
Of course, there were also the very phrases Popeil coined that would help sell his products. There was always “one more thing” that Popeil just had to show viewers about why his product was so great. He would also always countdown to the actual price of the product, saying “You’d probably expect to spend,” starting at a much higher price, and then working his way down. As the price got lower and lower, the viewer’s perception of value went up, and in the end, the deal would seem too good to pass up.
Once a viewer had been hooked and decided to call in to place their order – with the strategic 1-800-43-RONCO toll free number – the pitch still was not over for Popeil. He used a number of back-end marketing strategies to increase his profits even further. For instance, as soon as the telephone operators got the buyer on the line, they would begin to tell them about all the available accessories for the product that were also available for sale. Why just buy the Pasta Machine, when you can also have the four-way ravioli maker and the video cookbook for just an additional $39.95?
To save when it came to his production costs, Popeil was often able to negotiate a deal with local broadcasters. In exchange for free air time, Popeil offered them a percentage of each sale he made. For his Pasta Machine infomercial, Popeil was also able to score a deal with General Mills to use their flour in his live demonstration. The company agreed and gave him $100,000 for the product placement. He reached a similar deal with Bertolli Olive Oil Company for simply having a bottle of their product on the screen.
Popeil knew he had to do whatever it took to lure the buyer in, but it had to be subtle. The more overt the strategy, the more viewers would be turned off. “After all,” he says, “those people were here for something else. They didn’t come to buy what I was selling.”
Lesson 2 Use Subtle Marketing to Evoke a Strong Message
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