Stop Offering Discounts & Make More Money

Contrary to my thrifty consumer desires, I want you to stop doing something.

Stop offering discounts.

There are only certain specific businesses that should discount their stuff and only at certain times.  These are retailers but not all of them and not all of the time.  We’ll talk about them one day.

I subscribe to Groupon, not to buy stuff, but to find local businesses that are desperate and stupidly selling themselves short on how to be successful. 2015-12-27

Professionals should NEVER advertise discounts.

Think about it, do you want to go to a discount dentist or a discount lawyer, or a discount ________ (fill in the blank) ?

Or do you want to go to a Trusted dentist, Trusted lawyer, Trusted __________(fill in the blank) ?

I realize that there is a percentage of the population that are price shoppers but the problem is that unless there is a very good reason to be offering a discount in your advertising messaging, those discounted offers will damage your credibility and make you less trustworthy.

We needed a plumber to check out a problem that had us stumped last month.  When my wife asked who to call, I had her call the plumber I trusted.  It cost me $79 for him to offer a diagnosis and tell us that the faucet was getting old and that I should (and could) replace it myself one day.  He also told us what to do in the meantime to prevent the problem from reoccurring.

Who knows what another plumber would have done?  Tried to convince my wife that we needed $500 worth of repairs right now?  Maybe.  I’ve been through horror stories like that.

I had a dentist for awhile that was finding cavities that my previous dentist didn’t find and when I switched dentists again, the new dentist didn’t find the cavities my the other dentist warned me about. I had a gut feeling about the one dentist that was finding all these cavities and decided not to trust him, even when they offered special pricing to fix these problems.  Or maybe it was because they offered special pricing

Trust is more important than discounts in nearly any situation.  Part of that trust is that trusting that the company or the people are going to provide you with the value you expect for the price you agree to pay.  No one can put a dollar discount on that.  And you shouldn’t.

We will pay more if we trust you and that’s how you make more money.

Advertising versus Marketing, A Simple Truth

Before I started this article I Googled, Advertising vs. Marketing, and came up with several quotes. Information

Before I share them, here’s my simple truth that I live by:

Everything that you do is an element of your marketing.

Advertising is the paid portion of it designed to bring in new or retain current customers.

When you run a restaurant and you have pictures of your food on the menu, consider that marketing.

If there is actual food residue from previous customers on the menu and it is sticky, that is also marketing.

Marketing is both the good and bad impressions that influence someone about your business. It goes beyond the stuff most business owners think is marketing and encompasses nearly everything that presents your business to the marketplace.

Here’s what others say about Advertising vs. Marketing:

Advertising: The paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers.

Marketing: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products.

I disagree.  Advertising can be made personal and marketing is usually messy and unsystematic.

But here’s where it can really get confusing to the business owner who has to deal with people who earn their money selling advertising and/or marketing.  There are a number of titles we give ourselves and they sometimes don’t fit.

Here are some titles from people I know in Fort Wayne, Indiana:

  • Account Manager
  • Senior Account Manager
  • Integrated Marketing Manager
  • Marketing Consultant
  • Integrated Marketing Specialist
  • Account Executive
  • Integrated Marketing Consultant

All of these people do basically the same thing but they have different approaches and skill levels. These titles include my coworkers on the WOWO Radio Sales Team and other Federated Media Fort Wayne stations. The reason Integrated is included is because we have more than just radio ads we offer as advertising solutions, there is a whole host of digital products and events we can integrate.

Here’s my title:  Advertising Sales & Marketing Consultant  

I added the word Sales recently to clarify what I do.

I earn money from the advertising solutions that I sell and people buy.

However the Marketing Consulting is the bigger picture and what I spend most of my time doing.  I do not charge for the the marketing consulting.  I could and at one time I did have a business set up to do that.  But ScLoHo Marketing Solutions as a formal for-profit business is dormant and instead I provide those services at no charge.

I get to choose how deep I go with the marketing consulting because it is an investment of time and resources.  For those who really want help, I jump in with both feet.  We’ll talk about the marketing and advertising aspects of their business and come up with a Marketing Strategy Plan that makes it easy to decide if an advertising option fits or is just someone tying to sell them something.

I advice my marketing consulting clients to buy services from others besides me. I am always looking for advertising and marketing partners that are trustworthy and can provide value to my clients.

That’s the way I work and also the simple truth of the differences between Advertising and Marketing.  Contact me with questions or for help.

New Rules for Marketing to Grandparents

Being a grandparent is much different than it was 40 years ago when I was a teen and my grandmother was alive.

It’s also much different than 20 years ago when my parents were grandpa and grandma.

I became a step-grandpa when I married in 2001.  My wife’s son, had a son when he was 17 and now most of the rest of our 5 kids have kids too.  Eight grandkids at last count and my wife and I don’t fit the stereotypes of our parents and grandparents of what it’s like to be at this life stage.

Mediapost has some wisdom on how to market to the Baby Boomer Grandparents:

The Psychology Of Marketing To Grandparents
by Lori Bitter

Let’s face it. Psychologist Abraham Maslow never wanted to be a marketer. In his work, Toward a Psychology of Being, he describes the 13 personality attributes of the self-actualizing person. Often depicted as the top of the pyramid on the Hierarchy of Needs, “Self-actualization” is the realization of one’s full potential, with a focus outside of self. ScLoHo's Collective Wisdom

Maslow could not have known the power of his work in shaping our approach to understanding and communicating with older adults. In our research with grandparents, the birth of the first grandchild signals the shift toward “actualization.” They describe it as a time when the future seems sharper. They feel their own mortality and grapple with the idea of the family continuing when they are gone. Relationships take on more meaning, as the sense of selflessness takes over.

These attributes are so important to creating strategies that engage consumers that we are going to discuss them all – a few at a time – and specifically as they relate to the life stage of grandparenting.  Along with caregiving and empty-nesting, grandparenting represents a Boomer life stage with the most “consumer moments” and an openness to trying new products and services that they may have not considered in the past.

Here are the first four of Maslow’s attributes and how they relate to grandparents:

1. Superior perception of reality. Mature adults see things that younger consumers cannot see. Advertising claims are viewed with a much more discerning eye, and a lifetime of consumer experiences. Grandparents, in particular, are perceptive and sensitive about communications that ring false. In our research this was translated to seeing images of “real families” in terms of household makeup, ethnicity, and lifestyles. They have seen the world change during their lifetime.

2. Increased acceptance of self, others and nature. Older adults are more mellow, contrary to the stereotype of the hyper-focused Boomer. They appreciate the subtle humor and ironies of daily life.

For grandparents, this is reflected in a sense of greater enjoyment of their grandchildren versus their own children. They are more relaxed and present than they were as parents. Grandfathers, in particular, observe this, saying they were busy working when their children were small, so they have a “do-over” with their grandchildren.

3. Increased spontaneity. There is a sense of the importance of each day, and being present. While as young parents they were more focused on schedules and planning, as grandparents they can be more spontaneous with their grandchildren and have a “seize the moment” approach. This can be disconcerting to their adult children whose memories may center on workaholic parents who lived by their Filofax (a pre-BlackBerry device, now known as a smartphone).

4. Increase in problem-centering. There is a focus on problems beyond themselves; they engage in authentic problems. Grandparents report that they have an increased desire to leave the world a better place for this generation of grandchildren. They volunteer, give to charitable causes and support organizations and principles with this mission. They may extend this focus to healing the family and putting old issues in the past for future generations.

To effectively market product and services to older adults, it is critical to understand the psychology of older adults and to know why the things we observe in research are so. We will visit more of Maslow’s points over time. This understanding can mean the difference between talking at older adults and engaging with them in a conversation.

Bill Bernbach, who is not quoted much anymore, once said, “Human nature hasn’t changed for a billion years. It won’t even change in the next billion years. Only the superficial things have changed. It is fashionable to talk about the changing man. A communicator must be concerned with the unchanging man – what compulsions drive him, what instincts dominate his every action, even though his language too often camouflages what really motivates him.”

David Wolfe, in Ageless Marketing, challenged us as marketers focused on older adults, to “tap the soul of the unchanging man.” To do that requires an understanding of archetypes, root motivations, and the powerful emotions that consumers may not even realize are lurking beneath the surface.

How Do You Communicate with Your Customers?

Two weeks ago, my dentist sent me a text message reminding me of my upcoming appointment for a cleaning.  I appreciated the reminder because I never wrote it down or saved in electronically or any of that stuff. 3_85-1

I knew in the back of my mind it was sometime this month, but that was about it.

How do you communicate with your customers?  I’m not talking about advertising to them, but marketing touches.

See, every time my dentist sends me a reminder, like that text, it is more than a reminder of my appointment.  It is more than a convenience for me and for him (so I show up).  It is creating Top Of Mind Awareness and building familiarity which is good.

I’ve only had a couple of cavities as an adult so the most my dentist will see me is twice a year. But by creating these extra touches, even a helpful reminder, it builds his reputation and the likelihood that I will recommend him to others.

What can you do to increase communication with your customers in a way that they like?

My Success Story of Relationship Based Personal Marketing

It’s the eve of my birthday.  It’s also what has been dubbed #TBT or #ThrowBackThursday where you share something from your past.

I went to the ScLoHo archives of 2008 and found a story that I’m updating for 2015: 

Relationship Based Personal Marketing
This is a personal story.

In 2003, I returned to the world of advertising after a sabbatical in plastics, publishing, and automotive manufacturing. photo-1436874555419-bb64221c5c1d

I was back in my home town, having returned to Fort Wayne in 1998, but when I joined the group of radio stations I worked for in 2003, I had never done radio sales in this town. My previous experience was in Detroit.

So, I needed to meet business owners and decision makers. I did what most people did. Grabbed the Yellow Pages and started calling to make appointments. Not much fun.

So I hit the road and knocked on doors to schedule appointments. I was better at this.

But after about 6 months with moderate success, I came across a local electrician that had a small informal networking group and he asked if I would come and speak to him and his friends.
A few days later, after being introduced to the room of business owners, I did my stuff.
Except it wasn’t exactly what they were expecting.

They thought I was going to tell them all about my radio stations and try and sell them on radio advertising. Instead I gave them something they could use right away.

I talked about marketing.
I talked about their telephone.
I talked about what their customers wanted when they called.
Together we discovered that this small group of business owners could increase their business by 20 to 50% if they just changed their phone habits, so that they would be easier for their customers to do business with.

Later some of those business owners came to me for more advice on marketing and advertising and some spent money with me on my radio stations. All of them remain friends.

A few months later, I was invited to be a guest at a B.N.I. Networking group. This was a very well organized and committed group of business professionals and I joined this group and was a member for 3 years until other commitments prevented me from attending.

Over the years I have served on marketing committees and boards for non-profits and recently joined another one.  I work with an outreach ministry of our church to help those in the neighborhood that the church is located in.   I have been active with a Social Media & Marketing Breakfast for several years.  For awhile, we also had a Fort Wayne Friend-Up gathering that met monthly that I helped coordinate.

Basically I live my life to help others and serve.  This website that you are reading is not something I get paid to do.  I just enjoy writing and sharing.

I now divide my time to between giving and serving; and selling. Oh, I still do prospecting, and with the current economy that is just as important as ever. But I find that the relationships that began a few years ago by my giving have been stronger than those where I was just selling.

This year I joined another B.N.I. networking group.  Not to generate new business directly from the other members, but to be a resource.

When I joined WOWO Radio and Federated Media in 2013,  I started by contacting people that I knew and simply told them what I was doing.  I invited them to do business with me, but not in a pushy, salesy way.  More like a consultant.  I’ve been blessed to learn from so many business people over the years and I am always learning more.  I simply want to help others be successful with their advertising and marketing.  My purpose hasn’t changed since I spoke to those small business owners in 2003 about how to answer their phones to generate more business.

This is my marketing plan and it works. I urge you to develop a marketing plan that involves relationship building through giving and serving and see how it helps you too.  As I often sign my emails, Here to help,  and Here to serve,