FIRST…
Did you know that businesses that fully incorporate Mind Virus Marketing Strategy into their business arsenal, generate no less than 25% more income than businesses that do not. It’s true. Want even better news? How about this: ALL of our strategies are ethical. That’s right – we do not teach strategies that incorporate the use of gimmicks, games, and sleaze-ball tricks.
SECOND…
Our new Complementary Recommendations Poster is now available in the Mind Virus e-Store. This poster is designed specifically for chiropractors – assisting them in conveying to their patients, the importance of adhering to recommendations that contributes to the best possible results (i.e. Omega-3 Oil). The poster is 18″w x 24″h, 100 lb gloss text aqueous coated paper. It does not come laminated nor framed (although we do recommend a black frame). Please click on the image below for more information:
CROWDS…CROWDS…CROWDS…
What do you see in the image below?
What you see is a premium outlet store, a crowd control barrier, and a line – just waiting to get into the store. Great. Why has the crowd gathered? Why were there crowd control barriers placed in front of that store just after the sun came up? Why?
What you don’t see – just out of the frame, off to our right, is another crowd control barrier, and another line – which feeds people into the crowd controlled line just in front of the store. In other words, there are two lines. Again, why?
This particular store sells high-end bags (briefcases, portfolios, purses, etc.), and if you’re someone who goes nuts over a really nice, very pricey bag – well, this store probably has something you may want.
For our purpose today, the question I am asking you is this: Were there lines of people that created the need for a crowd control barrier or was the crowd control barrier put in place for some other reason? What’s the answer?
If you answered, “The crowd required
the use of a barrier” – you’d be WRONG.
The marketing method utilized is the above image is designed to reinforce the underlying marketing strategy adopted by the company that makes and retails the high-end luxury bags. While I do not approve of such methods, this tactic brings to our attention an interesting lesson (more on that in a minute).
If you are manufacturing and retailing high-end bags, then most of your marketing energy has to go into convincing your customers that they NEED your product. Part of that process involves reinforcement, and one thing that tends to influence reinforcement are CROWDS…lots and lots of crowds.
The basic idea is that, if you see a crowd, you are more apt to lend greater credibility to wherever or whatever is creating the demand. In other words, if there’s a crowd, then there “MUST BE” something fantastic that is causing people to line up (especially on a cold winter’s day).
The capacity of the premium outlet stores is such that they can withstand a large number of customers without violating the fire code. That’s reality. Having said that, the ACTUAL GOAL of this retailer is to create greater demand (which helps in justifying the high price tag of their items), and to create some degree of scarcity. By creating a crowd – by forcing a line to form, and then letting in a lesser number of people than could actually be in the store (kind of like a line at a night club), they draw an ever-growing crowd and even more interest from onlookers.
Would a line have formed if there weren’t any crowd control barriers in place? Who’s to say. Like anything else, it depends on variables. Last week, there were no lines at Apple Stores. Tomorrow – on March 11, 2011, when iPad2 arrives, there will be lines…long lines.
If I had to guess, I would say that this particular luxury bag retailer prefers not to gamble on the likelihood of a crowd – and instead of “hoping” that a line forms, guarantees a line via this tactic.
Another interesting point is this: If a luxury bag retailer has a store at a premium outlet center, are the prices lower on the items for sale than, let’s say, a high-end mall? The answer is NO. However, because the perception is outlet store = discount, people naturally assume (without ever checking the regular prices) that everything at an outlet store “MUST BE” for sale at a lower price than a regular retail store.
Just something to think about next time
you’re shopping at an “outlet.”
THE LESSON:
The lesson today, is not to go out and purchase crowd control barriers for your business (lol).
No – Do NOT go out and purchase barriers.
The lesson is, creating demand generates interest and generating interest creates demand. What you don’t see in the picture are lots of folks looking on at the ever-growing line – asking, “What the hell is this line for?”
The bags for sale in that store look very nice. However, based on this company’s use of this tactic, it takes more than a salesperson saying, “This is a great bag…” to justify a substantial purchase.
Many business people DO NOT know how to generate demand. You can tell who these folks are by how they operate their own business (whether it be a large brand or a mom & pop). They utilize gimmicks, give away their primary product or service (in one form or another), and/or they drop the barrier to entry by focusing on price (i.e. deep discounts).
You cannot insist on the “greatness” of a product or service via ads or gimmicks. To suggest that this is the case is simply foolish. Running ads and creating “artificial lines” (as illustrated in the above image) is right out of a loser’s playbook. Value generation is an art and a science. When value is generated via a well constructed strategy, the end result is increased demand.
If you are reading this post, and wondering why your sales are not where you would like them to be, or thinking about where you are going to spend your next advertising allowance (budget), consider a quote from one of my business heroes – Jeff Bezos, founder and CEO of AMAZON.COM:
“Advertising is the price you pay for
having an unremarkable product .”
That’s not to say that some advertising isn’t a worthwhile investment. But entities that keep throwing thousands of dollars into advertising, and continue to snub the idea of generating value, are businesses that will never be optimally profitable. Sure, they’ll make money, but they’ll leave even more money on the table. That’s silly.
If you liked today’s blog post, have a spine
and tell people where they can get smart.
Tell them about THE DARK LORD!
Have A GREAT Day!
…Dr. Marc & The Mind Virus Team