The Aura of Legitimacy

(This article is written by me personally without proofreading and English is not my mother language, so you might find a lot grammar mistakes)

Business Strategy: The aura of legitimacy – Increasing Your Product Value At No Cost

Dealing with honesty and customer get what they pay for. (But they’re crazy to buy what you offer)

There are several different way to use this strategy. Although the method a bit different but it deliver the same result.

Example #1: Clothing Store

J&J selling their own design clothes and price range from $100-$200. When come to Sale Season, they can only give 10%-20% discount to all their clothes because their clothes are produced in high quality and by their own professional designer. They will make lost if they give 50%-70% discount.

But there’s a trick to give 50%-70% discount. They will buy other design clothes from other company and put their brand J&J on the clothes to claim as their own design. This is something like pay for private label. Consumer will never know this and won’t care about it because most consumers just want to buy the ‘brand’.

The ‘private label’ clothes are normal quality BUT they cannot sell below $100 because this will affect their own brand value. They also cannot sell for $100 above because the quality is not worth that much (If you’re selling overprice, this mean you’re cheating your customers). In order to make both balance, they decided to price the ‘private label’ clothes for $130 and give 60% discount. This way, they didn’t lower their brand value and also increase more sales.

Think about this, the consumers just can’t resist that the cloth price range from $100-$200 and now give 60% discount. So consumers will think this is a BEST DEAL.

This is a WIN-WIN business. The seller still remain their brand value, increase more sales and making good profits with the ‘private label’ product. The consumers are happy and they get what they’re paying for.

Example #2: Coffee

Big size and small size coffee are almost/ nearly the same costing for seller. The different is on the cup, it looks bigger. The rental, electrical and staffs all are fixed costing. Whether you have a good business or not, you still pay the same rental fee. If you can increase your sales, then you can lower your costing and increase profits.

When you order a small size coffee, the cashier will tell you that you can get the medium size by adding a dollar. Think about this, just one dollar you can get a bigger size. Great deal.

People who is doing restaurant business will know that adding extra won’t effect the costing. Use the bigger size of cup, adding extra coffee in it and it will look bigger a lot than the small size.

Same strategy also been using in Popcorn business. You buy a normal size of box popcorn for $8 and you get bigger size by adding extra $2 dollar, and the bigger box look bigger a lot than the small box. Seller make extra profits and buyer get better deal. This is also WIN-WIN deal.

 

[tags] the aura of legitimacy, popcorn strategy, business strategy tricks, business marketing [/tags]

Don’t Simply Copy The Same Strategies or Tactics From Others.

When you have no idea how to improve your business, usually will learn from other and apply the same strategies and tactics in your business. Does it work?

Yes and No.

If you’re doing restaurant business and you are trying to copy the shopping mall marketing strategies to apply in your business, the high posibillity is it will not work for you. Like, the shopping mall applying collect reward point for every purchase. But do you think it will work effectively in restaurant business? Not really. Maybe you get some response but NOT effective and good result.

Business Strategies and Tactics

Offline Business like restaurant applying Online Marketing? Usually offline business applying online marketing is just to brand their name but not attract more customers in the first place. You see, you are NOT going to attract tons of customers go to your restaurant by applying online marketing BUT just to let the world know about your restaurant and start building your brand.

But before your business is good, you will need to apply the right strategies and tactics to attract more customers in the first place. Once you have a customer base then you can start build your brand to let more people know about your restaurant.

Some people do not understand about this, and just listen to some internet folks say, “hey, you can get millions of people know your restaurant if you are applying online marketing” and WOW, this is sound great! Does it really bring you millions of customers with this method? What do you think?

How about online business doing offline marketing? Like, I’m selling ebook on the internet and I apply the offline flyer method to promote my ebook. Does it work? How many people do you think they will take your flyer and open the computer then buy your ebook? Make sense?

If you’re applying offline marketing for your online business, it will only help you to build your brand and letting people know you are exist in this online world. So when people discussing about online shopping, their conversation will something like “hey, I know there is a local person who’s selling ebook on the internet too”, people will know you and you have build your brand. They could be your future customers but not as fast as tomorrow like promoting in Google Adword.

What do you think about this article? Please leave your comment here.

Thank you!

[tags]online marketing, offline marketing, business strategies and tactics, google adword, online business, offline business, business marketing, marketing strategies explained [/tags]

Why Let Your Customers Go? Build A Customers List Today…

Starting a business is hard, to maintain the business is the most harder part.

Some may wondering why the business become SLOWER… This happen in ONLINE & OFFLINE businesses.

“Customers can easily FORGET you”

In the online world, marketer ALWAYS said “Money is in the LIST” — Yep, THIS IS TRUE. No matter it’s 2002 or 2008, without a LIST just like starting a new business. When you have a LIST ( Mailing List ), you can just a click of button to let all your customers and subscribers know that you have new offer. This is common in the internet marketing.

No matter Online business or Offline business, building a customer LIST is a MUST in order to maintain the business. No more WALK IN business today. When your LIST growing bigger month after month, then you can expect your business will growing big soon. When you have new item arrival, you can save more on the advertising cost. Some offline business company use mobile message ( SMS ), Email and letter to communicate with their customers list.

This is to REMIND the customers that you’re still THERE. In order to have YOU in their mind when they want to buy something, you will need to build relationship with them first. HOW? Provide free informations or tips to the customers list when do not have any offer.

Example: Your’re selling Cheese Cake, you can share some of the cheese cake informations to the customers through email, mobile message and newsletter ( hardcopy ). Please note that you’re NOT sharing how you do the cheese cake, but share more about cheese cake info like the benefits of the cheese, what type of cheese is good for health, the season cheese cake…….. ! Your customers will appreciate that they have gained so much of info from you for free and you will be in their MIND when the “cheese” popup in their mind. When they want to buy cheese cake, YOU will automatically popup from their mind. Because you’re the ONLY one who give free info and advise to them. So they will trust more on you.

Building relationship with your customers is NOT about give them more discount or special offer. If you think give more discount and special offer to the customers can build a good relationship with them, then you’re WRONG. You’re putting a BIG TRAP in your business. Because discount and special offer everywhere, so it’s very competitive and the customers will only choose the big discount or best offer to buy.

Information is MORE VALUE than discount or special offer. So when you start a business, or selling something, remember to get your customers details and store them into your business. This will become one of your business ASSET.

If you want to use Email to communicate with your customers list, then you will need an autoresponder system that you can just a mouse of click and send ten of thousands emails. Yep, just write an email and click send, then all your customers will receive it with the personalize name and details.

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For the next post I will share the source of informations that you can get to share with your customer list. I know some people facing the problems that no idea where to dig the informations to share. Because writing your own will very time consuming. Talk soon…

[tags] autoresponder, building a list, online business, offline business, business marketing [/tags]