October 2004 Issue:

-The Four P's of Marketing (Part 2)
-Connect the Dots
-SEO - No Tricks, Please!

Archived Issues

The Four P's of Marketing
Part 2: Pricing

Last month, we began a four-part series called The Four “P’s” of Marketing -- Product, Pricing, Promotion, and Placement. Last month’s article that discusses Products can be found in our newsletter archive on our web site. Now that we’ve talked about Products, let’s move on to the second marketing “P”, Pricing.

Many companies think the most important part of a pricing strategy is to keep prices as low as possible, even though it may not be the best way to maximize revenue and profits. While that can certainly be true in some cases, a better pricing strategy is to teach your customers to focus on the value your product brings to them, instead of focusing on price alone.

One of the biggest challenges in the value vs. price model is determining the true value of what your product or service delivers to your customers. Traditional methods such as focus groups or customer surveys can help you understand the benefits your product delivers, or measure how much customers might be willing to pay for your product or service. However, the best way to assess value to customers is through one-on-one interviews that help you understand how your product helps customers in their particular market segment or business model. Understanding the true value of your product is the first step in mapping out effective pricing.

Often, companies respond to their customers’ hesitation to buy with price discounts. However, offering a complete satisfaction or no risk guarantee with your product can be a more cost-effective approach. The costs associated with refunding or replacing a product is usually much less than the lost revenue experienced through price discounting, and can be a boost to the product’s value proposition as well.

The right pricing strategy is essential to your business’ continued growth and success. A value-based pricing model can mean a lot to your bottom line, too. Be intentional with your pricing and take the time to truly understand your product’s value to your customers. By doing this, you can ensure continued success and avoid falling into the pitfalls of poor pricing decisions.

Next month: Part 3- Promotion.

Connect the Dots

Ever heard the legendary story about Starbucks’ marketing approach? The idea was to define Starbucks as simply “a great coffee experience.” With that straightforward, concise brand statement, the marketing team crafted the Starbucks store design, coffee selections, merchandising, and all other aspects of a great coffee experience. They decided that every interaction between the customer and the company had to be a part of the entire coffee experience. Think of these interactions as dots on a connect-the-dots game.

Like Starbucks, your brand is perceived by your customers as the sum of all the “dots” of interaction with your company. From the receptionist who answers the phone to the executive who speaks at a Chamber luncheon, every aspect of your company becomes part of a customer’s perception. Even one unpleasant experience with your company can diminish all of the brand identity you’ve worked hard to build throughout other areas of your company.

There is a lot riding on how customers perceive your company, so it is important to monitor how your brand is being perceived at every “dot”. Examine the message your company is sending out and determine if it is in line with your marketing goals. Try creating a list of the interactions your customers have with your company and products. For example:

Promotions or advertisements - Make sure that your promotional images match the rest of your branding and accurately reflect your products or services. Neglecting to do this may create the perception that your promotions are misleading or that your company is not trustworthy.

Sales Staff - Often, a customer’s first interaction with your company is through a salesperson. Make sure your sales staff presents your brand consistently. For instance, if you are known for great customer service, then your sales team might be trained to listen carefully to what a customer has to say first, then meet the customer’s needs.

Product Demos – This is one of the first ways a customer interacts with your product. Make sure your product lives up to the branding and advertising you have created. Scrutinize your product demo to make sure it actually presents what your advertising claims.

Customer Service – Good service is the ultimate customer interaction that can make or break the customer relationship. After being intrigued by your advertising, charmed by your sales staff, and wow-ed by your product demo, your customers need to know they can count on you for great support after the sale.

Your brand is communicated through every interaction a customer has with your company, so be sure you are making the most of each opportunity. Each of these “dots” can be a positive reinforcement to the public about your products and services, and like the Starbucks team, you can create “a great experience” every time.

Search Engine Optimization - No Tricks, Please!

Search Engine Optimization is a very popular topic these days, especially since high search engine rankings can mean an increase in traffic to a company’s web site and ultimately an increase in the bottom line. Getting a company listed in the “Top 10” for a given keyword has become a very big deal, and there are new ways to “trick” the search engines every day.

These “tricks” (that become out-of-date practically as soon as they are discovered) are always detrimental to your web site in the long run. Sure, using such tactics may improve your rankings temporarily, but using trickery to increase your rankings could get your site into lots of trouble, including being blacklisted and kicked out of the search engines entirely.

Although Search Engine Optimization is constantly evolving, there is one scheme that works every time – GOOD CONTENT. Of course there are other important techniques that help search engines find your site, such as title and meta tags, keyword-rich meta descriptions, targeted meta keywords, etc., that need to be a part of any optimization plan. But people and search engines have something in common when it comes to web sites: they both appreciate useful, valuable information.

Search engines tend to like web site text, and so will your visitors. Make sure your site has a nice balance of text - especially text that uses your keywords – and graphical elements that make your site attractive and easy to use. Graphics aren’t necessarily unfriendly to search engines, either. There are many ways to optimize both text and graphics on a web site that will give the search engines plenty of reasons to rank your site higher.

With so many legitimate optimization techniques available, there is really no need to resort to using tricks. Shady techniques are not only unethical, but also very risky since you could be banned from the search engines permanently. Remember that good content is good for everybody, including the search engines, and the primary concern of any web site should ultimately be the people who visit it.

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