Who’s Afraid of the
Big Bad Wolf-Mart?

Little guys can build brick houses that
don’t get blown away by big marts
and big-box clubs.

The platitude that “competition is healthy” doesn’t cut it when a retailer hears another super-duper-mart or big-boxer club is coming to town. Fear that he may be eaten by a wolf-mart is well founded. Unless he’s built a brick house he can defend, he may indeed be lunch. It is not without precedent.

Recently a city planning board approved a super Wal-Mart on the edge of its 100-year old downtown retail area. The many objectors at public hearings could not deny the inevitable. The allure of income from new jobs and taxes plus a powerful magnet to draw shoppers, had city fathers salivating.

So Wal-Mart, as it has with so many others, had its way with the fair city. Some retailers looked on the event not as the consummation of a good marriage, but as the screwing of their business.

One business owner tried to organize a protest.

As an obit to its demise, he staged a funeral procession through the old retail district. The stunt got more press than participants. Only one mourner joined him for his march and the photo opportunity at the end.

This same guy instead of hollering “Uncle,” and just getting back to business, took time to post his objections in a long letter to the Editor. One of his points was,”Wal-Mart will attract the wrong kind of people.” Wow! You can imagine the reaction from all us folks who ever saved a buck by shopping Wal-Mart?

Now, in this same city there’s an independent appliance retailer nicknamed Skip. A few years back instead of a having a panic attack when the first discounters started to circle the city, Skip moved his family business to the edge of town. He plopped his store right in the middle of his new competitors. They drew traffic and he jumped in the fast lane.

A few months ago, this same little guy with the gonads for greatness accepted without a tremor the grand opening of a huge Best Buy less than a mile away on the same highway.

After the opening he told a reporter, “We’ve waged this war before, and won. Silo, Dee’s, American Appliance, even Crazy Eddie…we’ve always had to complete with big chains and we’re still here.”

Here are a few of the bricks used to help build his wolf- proof business:

Customer relationship management: Not from textbooks or software. From the heart. Empathy and knowledge of what his customers want, need or could use.

Loyalty program: He’s loyal to them. Everybody gets a good deal every time. And they keep coming back. Once a year, he has a spectacular by-invitation-only private sale. He makes customers feel special –and they are special.

The NECO Alliance: There’s a presumption that the big guy’s price is always better. Au Contraire! Skip’s prices are always competitive. He belongs to a buying coop with 450 independent appliance dealers. Collectively they have the buying clout of a chain, so each has access to the same price sheets as the big guys.

A mature sales staff: His stable of stable sales pros can cross sell, up sell, down sell and outsell their competitors. They’re generalists who know every item in the store. What’s more, they can cut a deal without consulting a higher authority.

Detail Oriented: They are “passionate about getting everything right.” Problems are handled quickly and fairly. Everybody knows how to smile and say thank you. To Skip, every call really is important: Live people answer the phone!

All sounds pretty basic, doesn’t it? It is. And it’s also why this savvy marketer is not afraid of any big bad wolf-mart. He is too busy doing business.

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Think “inside” the box
before “outside” the box”

Thinking outside the box is a buzz phrase. Business-speak folks love to use it. Yes, it does have a place in the lexicon of creative thought. But it’s a poor choice of words when presented as insight by a Dingbert (sic) who hasn’t had an original idea this century.

Sometimes, like a cat, you can get in trouble for going outside the box. Still, I welcome cockamamie concepts. Often they make the juices flow and lead to good things. But I’ve worked with clients who jumped out of the box (before they did their duty) to chase a new silver bullet idea. In their quest, they abandoned what worked and lost momentum and business.

One client dropped a new dealer support program in regional publications after only two insertions. They pulled the plug before they analyzed both the short term results and the potential life time value of each new customer. Then they shifted their focus (and budget) to reinventing the product and package.

By not running a modest follow-up campaign they frittered away the investment already made.

Marketing communications is no job for quitters. Sure, there’s always room for tweaking and innovation. Just don’t be too quick to think outside the box of proven concepts until you’ve honed the reliable tools you have…tools with a history of building business for smart marketers with the patience and skill to use them properly.

The message: Think inside the box first. You’ll be more likely to increase the R.O.I. of your marcom budget.

When you can’t get belly-to-belly,
try ads with a talking head

Talking heads attract readers and add credibility to your message

Even when you quickly scan a publication, it’s hard to ignore a photo of a pleasant looking spokesperson…especially one who looks you in the eye and promises a benefit. And this talking head doesn’t have to be a celebrity, though notoriety does kick up the metrics a notch for noticed, read and remembered. Problem is, can you afford to blow a big chuck of your budget on a big name?

Unless you get your jollies jostling among the rich and famous, stick with a talking head with a lower price tag. Invest the money saved in more insertions and/or larger space, or other venues.

Rumors to the contrary, print is not dead. People still read newspapers and magazines for information and pleasure. But, the clutter of marcom creates a cacophony that’s hard to penetrate. That’s why I like photos with real people. They’re hard to miss, even in a crowd.

The talking head is a good tool to snatch a little piece of a multi-tasker’s attention. When he or she breaks for a quick flip through a magazine or newspaper, a photo of another human has a good chance of getting noticed. It helps, too, if the head has credentials that add credibility, like PhD, DVM, MD, RN, Master Plumber, Owner, Manager, or President.

I know from personal experience, readership studies, and the track records of direct response writers, that small space ads with a person who talks to the reader can be very effective. One of my winners was for a new ballet school. A one column by four inch ad with a picture of the school’s “Director” on pointe. The headline said: “Come dance with me!” It had the phone ringing off the wall.

Advertising is salesmanship in print. The talking head helps bridge the gap between belly-to-belly selling and print.


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The Four Horsemen of a Marketing Apocalypse:
Fear, Arrogance, Ignorance, and Inertia

Any of these dangerous riders can turn a marketing program to ashes.

Fear of making a wrong decision can paralyze a program. For example, we need more advice from ( those without the credentials). More focus groups. More research. More nit­picking for perfection. More situation analyses.

Fear can sap the testosterone from a bold marketing initiative. While the timid worry about exposing their collective butts to criticism, the gutsy get going.

On the pro side, fear is a great motivator. It turns on the old flight or fight response that has served man and beast so well for so long. But if you have a solid business plan, make sure you flip the adrenal switch to fight.

Arrogance in marketing is a serious personality flaw. The idea that you're the best (when you are not) or that you have no competition (when you do) turns off your receptors. It clouds your mind so you can't see reality. Think you got it made? Maybe. But a little humility is good not only for the soul, but also for the bottom line.

On the pro side, arrogance (if you don't show it) breeds self confidence. And that's remarkably marketable in the right hands. A self confident persona helps build credibility.

Ignorance of the difference between good ideas that might work, solid ideas that should work, and proven tactics that will work, can scuttle a program. The wheel and fire were great ideas. Don't start from scratch. Tweak them. But first learn something about the art and science of marketing. Expecting too much from too little is one of the big challenges of marcom. There's so much solid, free information quickly and easily available on the Web that no one should leave home without it.

On the pro side, ignorance like arrogance, can lead to creative and effective approaches that the learned wouldn't consider practical. Ignorance clears your head of problems you don't know are out there. It can help you go where wise men fear to go---and succeed.

As Grandma used to say, "He just didn't know any better. That's how he got rich!"

Inertia is not one of the traits of highly successful people. "Do it now," is a good mantra. Only don't use it as an excuse for sloppy execution just to get a job done . How many opportunities are lost by procrastination? Yes, look before you leap is good advice. And it's true procrastination give us more time for reflection and delayed judgment. But while we're on a cliche roll, let's remember: time and tide ... and markets... wait for no man.

Sometimes the "Let's wait and see what happens" is the meanest stall of all. It's so debilitating. Often it's based on fear. But too often it's just based on - well, inertia. The knowing-doing gap. The work ethic. Different priorities. Excuses ad infinitum.

Don't wait to see what happens. Marketing is about making things happen.

On the pro side of inertia? Can't think of any pros. So, crank it up a notch. Or just make a decision to do nothing. Then you can do something else that's productive.

I know all this stuff sounds preachy. But I preach not just to teach. My words are a string around the finger to remind nice people of things they may already know.