Archive for the ‘101 Marketing Ideas’ Category

18
Oct

Online Layaway: Marketing Idea Worth Stealing #100

   Posted by: Michael Carney

Today’s smart marketing idea in a nutshell: if you operate an ecommerce store, whether pureplay online or  clicks and mortar  (i.e. both online and offline channels), offer layaway. Enable consumers to find their desired purchases online, put the products on hold and then pay them off over time.

Source of the inspiration? Kmart, who have just launched an online center where customers can find, hold and make installment payments for the items they want to pick up in-store and give this holiday. Chief Marketer’s Big Fat Marketing Blog has the story, including the news that (according to Kmart) web users searched on the term “layaway” twice as much this past August as they did in the same month in 2008. Clearly the green shoots in the economy need a bit more watering before they’re quite ready for harvesting.

This year more consumers than ever are expected to be grappling with paying down credit-card debt or facing sharp cutbacks in their credit limits. So ideas that enable consumers to pay for holiday gifts in advance — such as layaway, or like the Christmas savings clubs that Sears and Kmart rolled out in August — may have even greater appeal in cash-strapped 2009.

Your online layaway offering need not be as complicated as Kmart’s — because the retail giant offers a “pick up from a designated store” facility, Kmart has to ensure that stock is available at individual store level when the consumer orders, so that the product can be physically removed from the shelves and placed in storage until the final payment is received.

Here’s how the Kmart scheme operates, according to Big Fat Marketing Blog [the parenthetical  insights are ours]:

The online layaway feature lets customers locate a store participating in the program by entering their ZIP code at www.kmart.com.

  • [Our View: if you operate multiple offline stores and offer local pick-up or delivery, the zip code is a handy indexing tool. If you only operate in the online space, however, the zip code lookup can serve another purpose, enabling you to determine the distance goods will need to be shipped from you to your customer, and therefore the final deadline for payment to ensure delivery in time for the festive season.]

Kmart customers can also look for a special layaway icon against selected products in online commerce and indicate at checkout that they want to put those items on layaway at their local participating Kmart store. The icon indicator is needed because items have to be physically available in the store at the time of the order to be held on layaway.

  • [Our View: if you're offering products on layaway and taking customer monies on that basis, you'll similarly need to flag items currently in stock -- and keep them in storage for the customer.]

Customers pay a $5 initiation fee to start a layaway contract and must pay either $15 or 20% of the total purchase price of the items they want to place on layaway at the start of the contract. They then make four payments of 20% of the total purchase of the merchandise over the eight-week hold period.

  • [Our View: you'll also need to offer a predetermined payment schedule, although if you're an online-only operator you'll probably want to automate that process through regular credit card deductions, to minimise transaction costs.]

Once installment payments are complete, the customers who opened the layaway accounts can pick up the merchandise, but only at the store contracted with. They must pick up merchandise within 25 days of making the last payment. If they miss a biweekly payment by seven days, Kmart can return the items laid away into stock.

  • [Our View: you should probably be a little less blunt about your terms and conditions, but you'll need to have boilerplate legal agreements on your site spelling out similar issues. Just remember you're not Kmart and be appropriately gentle with your customers.]

Online, customers can use their checkout receipt number to sign into the payment center and make their layaway payments with a credit card, debit card, Kmart gift card or Kmart cash card. Shoppers can also make their biweekly payments in the store in which the layaway order is being held. E-mail alerts will remind shoppers of payment due dates.

  • [Our View: large organisations such as Kmart inevitably require stringent processes to handle these sorts of multi-channel, multi-encounter transactions. For mom and pop online-only operations, the process can be far simpler: install shopping cart software that enables payment in installments. That solution can be as simple as using PayPal's subscription plans or choosing an ecommerce program that offers an installment facility (we conducted a quick Google and found a number of shopping carts with installment options, such as this one).]

Whatever option you choose, now would be a good time to start. Only [mumble] shopping days left!

This is another of our “101 Marketing Ideas Worth Stealing”, from the ebook STOLEN MARKETING IDEAS, available in limited release from December 1-20, but only to subscribers to our Marketing Rag newsletter.

16
Oct

Idea 101 of “101 Marketing Ideas Worth Stealing”

   Posted by: Michael Carney Tags:

You’ve probably already stumbled across the hype for the movie “Paranormal Activity”, “a terrifying shot-on-video haunted-house thriller made very much in the found-footage, this-is-really-happening! mode of Blair Witch” (Owen Gleiberman, EW.com).

Here’s how MovieRetriever.com describes the hype:

Paramount has brilliantly pitched Paranormal Activity as a viral movie, a film that they’ve played in midnight screenings in college towns across the country and instructed fans who wanted to see it to join the movement to bring it to their city. The incredible new marketing concept paid off as the film, reportedly produced for $11,000 [or perhaps $15,000 -- see below], made more than that PER SCREEN this past weekend and brought in over $7 million at the box office.

Advertising Age (as reported by The Wrap) suggests that marketers should learn the following conclusions from the exercise:

  • Let consumers dictate distribution. Once “Paranormal Activity” reaches 1 million Demands on its Eventful page, Paramount will release the movie within a reasonable radius of all the fans who demanded the movie by providing their age and zip code. “It totally transforms the brand into a benefactor,” Eventful CEO Jordan Glazier said of the site’s marketing model. “You now have a self-identified list of participants who are passionate about entertainment, and the event brand has even more value to them.”
  • Don’t waste money on large-scale TV campaigns when you can talk directly to your fans. “[Paramount is] using social media as a marketing vehicle as well as a market-research vehicle,” said Sarah Hofstetter, a senior VP at 360i, an independent digital-communications agency that has worked with Paramount on previous campaigns.
  • Don’t create false hype. Ten years ago, “The Blair Witch Project” struck gold with one of the most successful viral movie marketing strategies to date by trying to pass itself as a documentary rather than a fictional horror movie. “Paranormal Activity’s” theatrical trailer and TV spots are focused more on marketing the audience’s terrified reactions to the movie itself.
  • When there are low financial barriers, have fun. “Paranormal Activity” cost a mere $15,000 to produce, with little spent thus far on traditional media, so Paramount stands to recoup any overhead costs thousands of times over if the film catches on with a national audience. But despite the initial success, “If it all ended today we’d be very happy,” said Paul Greenstein, the studio’s co-president, marketing.

If you’re going to steal this idea for your business, these are our learnings from “Paranormal Activity: The Marketing Sensation”:

  1. Your product better be not just good but great. If you expect others to promote it for you, it has to live up to the hype. It’s their reputation on the line as well as yours.
  2. Be creative or don’t bother. Nobody’s going to rave about “same old, same old”.
  3. Make it exclusive. Whatever your offer, restrict it to a favored few. Reinforce that exclusivity with your communications. and enforce that exclusivity for real — cut off the flow of products or services on the specified date or at the nominated level.
  4. Consumers are in control. Get used to it. Allow them to spread the word and control the success or otherwise of the product/service. Give them the mechanisms to evangelise on your behalf (whether texting, Facebook apps, Twitter tools or whatever).
  5. Don’t be blatant. Nobody wants to be a marketing shill. Promote with subtlety.
  6. Be ready for failure. The reason Paranormal has sparked such attention is because it’s working. Many, many studios have tried to replicate the Blair Witch marketing magic. Most have failed bigtime.

This is the latest of our “101 Marketing Ideas Worth Stealing”, from the ebook STOLEN MARKETING IDEAS, available in limited release [of course!] from December 1-20, and only to subscribers to the Marketing Rag newsletter.

30
Sep

Experiential Vikings: Marketing Idea Worth Stealing #44

   Posted by: Michael Carney

Jorvik Viking Centre

Located in downtown York in old  England, the Jorvik Centre provides an entertainment, education, sight and smell sensual experience at the site of a Viking village discovered during the construction of the Copper Gate Mall.

Heritage Resources
The Jorvik Viking Centre is an archaeological site of a Viking village of 975AD. Artifacts were removed from the site, stabilised and then brought back to their original locations. The specific artifacts range from buildings to tools–all are restored and preserved for visitors to understand how an excavation is conducted and how the Viking culture worked.

This video clip gives a useful summary of the history of Jorvik:

Jorvik Viking Centre

How Visitors Interact with Resources
The experience is provided by entering at street level, paying a fee, and being escorted down the stairs to the Viking Village level. After passing through a maze of descriptive panels, the visitor enters a small electric car (time car) and travels slowly backward in time (facing backward) viewing panoramic scenes of historic events, first World War II, then World War I, the British Civil War, and then arriving in the Viking historical period, about 1,000 A.D. All of this is explained by audio narrative.

The visitor’s car is then reversed and travels forward through a reconstructed village that was sacked and burned with all of its sounds, smells, and sights.

The visitor travels down a street, in the time car, and into individual buildings observing the production and sale of products and foods, even passing by an ancient latrine with all of its pungent odors. The visitor then travels by a fish market and fishing boat with its smells and sounds. Now, moving forward into the present through a darkened tunnel, is a view of the actual Viking village excavation. The visitor then travels through the excavation in the exact sequence as in the reconstruction.

The process of archaeology is explained as you travel through this stabilised Viking ruin. After passing through the authentic ruined village, the visitor enters the mock-up laboratories where the passenger gets out of the time car and is met by docents explaining the process of research involved in the reconstruction of the village. The visitor may look into microscopes, view seeds and learn pollen analysis and understand the use of floatation equipment.

Visitor Experiences

Visitor experiences at this site are rich and varied. After this trip they can visit traditional displays and a gift shop. This shop has a wide variety of gifts including everything from blood axes to erasers that smell like a latrine and fish market to scholarly publications. The visit ends with an opportunity for the visitor to stamp a coin from a die made from an original coin found at the site. The stimulation that is planned for the visitors is varied and rich.

Benefits
A major reason for this site being designated a fully developed heritage tourism site is the completeness of the benefits. Visitors, the site and the community all benefit from the visitor experience. Visitors have a stimulating, memorable experience. The site receives increased awareness of archaeological practices, in addition to revenue needed to continue the scientific research. The host community also benefits from the visitation in immediate and tangible terms.

The line to enter the Viking Center is often quite lengthy, so visitors take time to visit the nearby shops in the mall.

Marketing Lessons Worth Stealing
Many lessons can be learned at this site, but two are highlighted here. Shopping is a critical part of the visitor experience, and this site is able to leverage its visitation to benefit the greater community in a visible way.

Another key lesson is the visitor experience and the distinctive Visitor Interaction Mechanisms (VIMs). Coin stamping and VIMs like the microscopes which visitors can use to investigate key elements are important.

The Viking Center may seem a long way away from your operation, but take a few moments to consider how you could turn your space into an experiential extravaganza. If you can become a destination in your own right, it may change your future considerably ..