Smart Marketing

The Eagles and Wal-Mart; Exclusive distribution as a marketing strategy

The rock group The Eagles and Wal-Mart have come together to form a partnership that will likely affect marketing for years to come. On October 24, these two announced a long-term strategic deal for exclusive audio and video releases by the band. The group's new album, Long Road Out Of Eden, will be sold exclusively through Wal-Mart and Sam’s Club retail stores in North America as well as online at www.walmart.com .

Now many of you have heard me talk about how more marketers are using limited availability in their marketing efforts. But I am starting to see a new trend towards exclusive distribution arrangements that marketers should take note of.

The exclusive distribution deal between The Eagles and Wal-Mart is not a first. Jessica Simpson formed an exclusive distribution arrangement with 7-11, Ray Charles and Starbucks formed an exclusive arrangement recently and Garth Brooks also formed an exclusive arrangement with Wal-Mart, making the retailer and its Sam's Clubs and walmart.com outlets the only places where his music will be commercially available.

These kinds of exclusive distribution deals are a 180 degree shift from the marketing model of old that sought to get a product into every distribution channel possible. Now it seems, there’s more demand in creating an exclusive distribution deal. It creates buzz, and focus; two important elements for the success of any marketing campaign.

Now I realize that The Eagles, Ray Charles and even the Rolling Stones (who have released an exclusive box set DVD through Best Buy retail stores) are dealing from a position of strength. They have years and years of building their own brands and awareness behind them, so they carry more sway in their negotiations with retail chains.

But more and more I’m becoming convinced that the old marketing model of “all forms of distribution at any cost” is beginning to tire. There are just too many products, too many channels….too many of everything. The clutter is enormous and odious on consumers.

Could it be that selecting an exclusive distribution arrangement helps a brand build a more significant demand?

Why are repeat customers so important?

There are many reasons why repeat customers play a pivotal role in your small business' marketing. Here are 3 of the best reasons:

Influencing circles of influence

Recent estimates put an average person’s circle of influence at between 50 and 300 people. That means that a repeat customer has the ability to influence up to 300 people with his/her feedback about your company. That’s why it’s so important to nurture the relationship.

Imagine the time it would take a sales rep to generate 300 potential prospects. Yet by connecting with a repeat customer, and finding ways for them to communicate to their circle of influence about your company, you’ve just expanded your sales force, without incurring additional overhead.

Repeat customers’ praise can be amplified

Testimonials. Case studies. Serving as a reference. These are all ways that a repeat customer’s influence can be magnified. Asking a repeat customer to be the focus of one of these signals to them that you really value your relationship with them. Smart marketers find ways to package their repeat customers’ satisfaction and funnel it back into the company’s marketing efforts.

Repeat customers’ offer invaluable feedback

Any good marketing company develops a feedback loop with its market. What better way to do this than by turning to your repeat customers for feedback?

Because of the special relationship these repeat customers have with your company, they are far more likely to offer your company unvarnished feedback when it needs it most. For example, if your company is considering launching a new service, why not offer an advance preview of this service to your repeats? That way you'll get unvarnished feedback from them, they'll feel a certain exclusiveness about being approached before anyone else, and some of them may be interested in  purchasing this service. 

 

Small business marketing tip - Differentiate your small business for more memorable marketing

If your small business marketing challenge is to stand out from a crowded competitive field, differentiation might be the way. Most small businesses are stuck in what I call the "muddle in the middle". That is the netherworld of sameness.

They offer the same products and services as their competitors, they go to the same trade shows, they attend the same networking events, and (most importantly) they use the same key messages as their competitors in their brochures and websites (e.g. "service is our number one goal").

To break out of this small business marketing rut, use differentiation as a marketing weapon. Differentiation is the art of finding something utterly unique about your business and then hammering it home so it makes your small business unique from its competitors.

Here are some examples of unique differentiators:

• The size of your clients—working exclusively with businesses of less than 100 employees.

• The industry your clients are in—specializing in lumber businesses.

• Clients seeking a specific benefit—working with CFOs who want to improve profitability.

• A product line focused on a niche market—specializing in commercial appraisals.

• Your unique approach or methodology—"our proprietary 6-step marketing plan approach".

There are hundreds of ways to differentiate your small business, so these are just a start. If you'd like to learn more about differentiating your firm so it stands out in a crowded competitive field, subscribe to my free email newsletter Marketing Tips and Tools. 

Benefits v. Solutions; Don't make this basic small business marketing mistake

My Marketing Boot Camp is now underway and the first exercise for the Boot Campers highlighted a basic marketing mistake most small businesses make.

In the exercise, I had each Boot Camper write up what the solution was they offered clients. Then I asked them to write up the benefits their audience gets. As expected, there was some confusion around stating the benefits of their service.

Too often companies focus on what they do (solution), yet come up short communicating what their clients get (benefits).

This is Marketing Communications 101 and something that every small business marketer must master before they can move on to bigger things. Remember, a buyer almost always comes to your company wondering  how can you help me? not what do you do?

The first focuses squarely on the buyer; the second on your company. I'm sorry to say this, but few prospects care about you, they mostly care about how you can help them.

So to help you with this, trying answering the following questions:

• How are your clients' lives made better through your service?
• What improvements do you bring about in your clients' business?
• (complete the sentence) My clients end up with more _____________________  and less _________________ after working with me.

If you'd like to learn more about properly positioning the benefits of your business, check out the InfoGuru Marketing Manual by Robert Middleton.

Radiohead's marketing move is a hint of things to come

Radiohead is an English rock band that's been around since 1986. But more important to me, it's a rock band that has just altered the marketing landscape. That's because tomorrow, the band will make its newest album In Rainbows available for whatever price the consumer wants to pay.

That's right, the band is selling its album only on its website and after loading the album into your shopping cart, it is up to you to decide how much you want to pay for it.  If you want it for free, so be it. If you want to pay just a quarter for each song, you can.

Not only is this a bold marketing move, but it's the way more and more pricing is being handled. I even know of a consultant who conducts weekend training sessions and then "passes the hat" and asks participants to pay what they think the session was worth. In my email newsletter Marketing Tips & Tools I cover a variety of pricing strategies, but now I guess I'll need to cover this one.

So what would you do? Pay full boat? Pay nothing?