The most significant date in marketing history?

Hi Elizabeth,

> I've been trying to lose weight and have
> been walking laps at a shopping mall. One
> reason I go to the mall instead of using my
> treadmill is because I like to examine the
> advertising and marketing ploys being used
> by the mall merchants. It has been a
> fascinating way to study advertising and
> marketing as well as helping me work on
> getting in shape.

I was doing something similar - I didn't think that others did the same thing! :)

I was trying to walk regularly, and when the weather outside wasn't the best for walking, I'd head down to a very large indoor shopping center (mall) that's not too far away. I'd bring a portable radio with headphones, and walk around a few times to get some exercise while listening to the radio....

However, in my case.... I found I tended to be tempted by the ice cream stand every time I passed it. That was one of the dangers of doing this - in my case! ;)

> One of the thoughts I had yesterday was the
> one wherein I was amazed that companies
> create promotional advertising products
> (much like the things Dennis Bevers sells)
> and then charge people for them! Nike,
> Reebok, Victoria's Secret, etc... all have
> clothing (and other items) that have their
> name splashed all over them and people
> clamor to give them money for those same
> items.

> What's even more interesting is which
> companies are doing this. The aforementioned
> brands are "cool" and supposedly
> will help you get people to think you are
> "cool". Can you imagine someone
> walking around with a K-mart or Wal-Mart
> logo on their t-shirt? How about Playtex
> Tampons or Head-and-Shoulders shampoo?

Yes I agree... It is amazing to think that people are PAYING to advertise these brands for them!

I received a phone call a couple days ago, it was from a local public radio station. They offered a "coupon booklet" (I'm sure you know about these), where each coupon offers you something for free from a particular retailer or business. For example, a free ice skating lesson at a particular ice skating rink, a free entree at a local Indian restaurant, a free "PC Diagnostic Check" at a specific computer service store. All of these things have "dollar values" - so they can offer over $1000 worth of free products and services. They were selling these coupon booklets as part of their fund raising.

In a way, this is also kind of similar to what we're talking about, because these are all (of course) promotional offers. They want you to get the free item, then come back again to pay for their services in future.... It's completely win/win/win/win. The business wins, because they will get new customers. The customer wins, because they get products at a much lower price than they would if they paid for them all. The public radio station wins, because they raise money so they can broadcast for another year. And in this case, the business that put together the coupon booklet wins too - I'm sure they get a cut of the proceeds as well!

I know Don Alm has talked about doing this kind of coupon business before - you can see his post on this at http://www.sowpub.com/cgi-bin/forum/webbbs_config.pl?read=5728

Anyhow, it's another fascinating type of advertising as well.... :)

- Dien Rice

Hi:

I have a friend who does this 3 times a year.

Twice thorough community charities and once under another charity.

With the community charities he links up with them with the offer to fund raise under the auspices of their name...in other words when his telemarketers canvas they say they are calling on "behalf of XX Charity" which means the hangup is very low.

In a capsule this is the way it goes:

After approaching the charity, then he approaches the local businesses offering them free ads in the coupon book. Once he has his quota it is sent off to the printer.

Then his telemarketing room goes into full swing...canvasing on behalf of the charity that they are raising money for such and such, and for $XX dollar contribution they will receive the local coupon as a way of saying thank you for their participation...if they give double the ammount then they receive 2 books.

He has 3 delivery drivers that run all evening and on Saturdays picking up donations and dropping off the coupon books.

Profit breakdown is a bit secretive but esentially this is the way it is factored: 60/40 - telemarketer 15%, delivery driver $3 per pickup, company balance of the 60%.

The third campaingn is a bit different and is used in between the other 2 to give the people a break from coupons...it is one that gives a different bonus (usually a set of coffee mugs) and the money raised goes to supply amusement items (generally coloring books and crayons) for sick kids in hospitals.

He works 9 months a year and vacations in the deep south the other 3.

Cornell

Dien,

I love to study marketing in this "browse-around" fashion too!

The coupon books you mentioned REALLY work well. As part owner of a pizzaria for three years, I can offer first-hand testimonial. These folks that produced those coupon books would come around every year, and ask if we'd like to participate. It cost us NOTHING for the coupons in their book but whatever we were discounting or giving away. The actual advertising, layout of the coupons, everything else was free.

We offered a significant discount on pizzas, and it was probably a good thing that we had stipulations on the coupon about which particular days they were good for, because we immediately became swamped when those coupon books went up for sale everywhere. For $10 or $15.00, you could get this incredible book of discounts, freebies, and other great offers. You're right about it being a win-win-win situation! We got people IN the door, who got to try our products, and once they did, they came BACK!

Now, if anyone out there could produce a good quality coupon book like this, and have the coupon book printed out professionally, you could easily turn this idea into a home business, by doing the same thing, basically. Retailers LOVE anything that will bring customers to their door in droves! Then, to market it, you contact local schools, little league, churches, and ask if they'd like to do a fundraiser, selling these books, and offer them some cut of the profit. :)

Just my thoughts.


135 years of great home business--right here!