I've noticed a new trend in retail lately, one that I'm none too happy about. It all started when years ago, Martha Stewart took over Kmart. I don't care for Kmart anyway, but seems to me it got more expensive, and there are hardly any products available there without her name emblazoned upon them. For being a big Speedway-type of cheap retail store, it's not exactly worth paying the extra for her name. They don't even have decent customer service! Then again, I guess Martha Stewart is all about DIY...
Then, I noticed Kohls is selling Vera Wang. And it ain't cheap! Granted, I like Kohls, they have good quality products for reasonable prices, hence, that's why I go there! If I want to spend $400 on a Vera Wang bedding set, wouldn't I expect to find that at Macy's or another upscale store? See, my point is I shop at those places to save money on something of decent quality. Now, a) the cheap alternatives aren't so cheap anymore, and b) it cheapens the expensive brand. Vera Wang is a luxury item, and by saying you bought it at Kohls, well, I guess it can't be that luxurious. You can find Vera Wang next to the Hanes clearance aisle. I expect it out of Daisy Fuentes, but what the Wang?
The latest, now Walmart is carrying Better Homes and Gardens...
Target, Kohl's, Kmart, Walmart -- I expect to find things cheap, that's why those places are around. They're sending mixed messages with carring these higher end products. What does that say about the brands - on either side of the table? Go back to what you were originally intended I say! Now you're ruining it for everyone. What's next - gas stations selling $5 lattes? Value City selling 10,000 sofas? McDonalds selling steaks??? Or, the opposite could be said. All-you-can-eat buffet at The Precinct. Or 25 cent wing nights at the Boathouse...
Tuesday, January 27, 2009
Friday, January 23, 2009
Agency Vs. InHouse
What I'm about to tell you may blow your mind. A new way of thinking about how you're spending your dollars on marketing. If you think you're saving money by hiring someone internally -- think again! An agency can save you thousands of dollars. Just like you'd trust an expert to handle your finances or insurance, an agency will make sound investments in the right places with the proper tools. They have the connections, the technology and the expertise -- likely your intern won't have access to or knowledge of these things!
You can get the experience and firepower of an integrated Advertising/PR agency for LESS than the cost of an entry level person. You'll get more done and you'll have professional looking materials. Trust me, you don't want to look amateur for the money you're investing.
Let's take this into consideration. An entry level person is going to take at least a $25,000 salary. Well, they need equipment and software, right? There's another $2-5,000. Taxes, $8,000. Insurance, benefits, 401K, etc. Not to mention implementing your programs could run $30-50K. The list goes on. Not only that, but it's going to be unprofessional - an entry level worker only has a year or two of experience, limited expertise and resources.
Now, do you really think hiring an agency will cost $90,000 a year for a modest campaign? You don't have to worry about salaries, expensive software, subscriptions and dues, taxes, benefits, etc. You can have years of professional experience and guidance, unlimited resources and the latest tools. The only cost is putting together and implementing your campaign. Nearly HALF the cost!
When I explained this to my husband, he looked at me and said "Wow, I never thought of it that way. That's like going from bunny ears to HD!"
You can get the experience and firepower of an integrated Advertising/PR agency for LESS than the cost of an entry level person. You'll get more done and you'll have professional looking materials. Trust me, you don't want to look amateur for the money you're investing.
Let's take this into consideration. An entry level person is going to take at least a $25,000 salary. Well, they need equipment and software, right? There's another $2-5,000. Taxes, $8,000. Insurance, benefits, 401K, etc. Not to mention implementing your programs could run $30-50K. The list goes on. Not only that, but it's going to be unprofessional - an entry level worker only has a year or two of experience, limited expertise and resources.
Now, do you really think hiring an agency will cost $90,000 a year for a modest campaign? You don't have to worry about salaries, expensive software, subscriptions and dues, taxes, benefits, etc. You can have years of professional experience and guidance, unlimited resources and the latest tools. The only cost is putting together and implementing your campaign. Nearly HALF the cost!
When I explained this to my husband, he looked at me and said "Wow, I never thought of it that way. That's like going from bunny ears to HD!"
Wednesday, January 7, 2009
Cutting Back on Advertising Could Backfire
In tough times like these, a company's first reaction may be to cut spending, particularly in advertising. But cutting advertising dollars without consideration can have adverse effects. If you aren't marketing - no one is buying!
Studies show the most successful companies maximize their value by maintaining their advertising in a down market. The long term benefits heavily outweigh the short term. Advertising keeps you top-of-mind to the consumer. It creates a positive impression on your company -- that you are successful and committed to your product. Out of sight is out of mind, so if you stop reaching out, consumers tend to forget you exist when they're ready to make a purchase. And let's not forget, your competitors are cutting back. When they cut back, they lose clients... clients you could be gaining.
This day in age, there are so many cost effective methods to take advantage of -- including social media, public relations and a strong web presence. You can get more bang for your buck investing in multiple outlets, rather than dumping your money into an expensive television or radio spot. Think smarter, spend more wisely. Do something!
You can be the best firm, have the most beautiful portfolio or work with the smartest of engineers, but if no one knows you exist, it doesn't matter. Cutting your marketing and advertising is one of the worst mistakes to make during an economic crisis. It is an investment, not an expense. Success does not happen on it's own.
“If I was down to my last dollar, I’d spend it on public relations.”
-- Bill Gates
Studies show the most successful companies maximize their value by maintaining their advertising in a down market. The long term benefits heavily outweigh the short term. Advertising keeps you top-of-mind to the consumer. It creates a positive impression on your company -- that you are successful and committed to your product. Out of sight is out of mind, so if you stop reaching out, consumers tend to forget you exist when they're ready to make a purchase. And let's not forget, your competitors are cutting back. When they cut back, they lose clients... clients you could be gaining.
This day in age, there are so many cost effective methods to take advantage of -- including social media, public relations and a strong web presence. You can get more bang for your buck investing in multiple outlets, rather than dumping your money into an expensive television or radio spot. Think smarter, spend more wisely. Do something!
You can be the best firm, have the most beautiful portfolio or work with the smartest of engineers, but if no one knows you exist, it doesn't matter. Cutting your marketing and advertising is one of the worst mistakes to make during an economic crisis. It is an investment, not an expense. Success does not happen on it's own.
“If I was down to my last dollar, I’d spend it on public relations.”
-- Bill Gates
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