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With only one day to
design and construct and one day for operations the winner would be
determined by the team that produced the most operating revenues. In
watching tonight's seventh episode, which focused more on the
interpersonal drama than on the business, here are some practical lessons that you
can apply to your business: Cross
Promotions - Effective and Strategic
While the seduction of this task is to expend precious resources in
designing a more creative and original mini-golf course, winning is
measured in dollars, dollars are earned with traffic and sales. Only
Magna Corp's Kendra Todd, 26, fully understood the value and importance
of marketing and promotions when she stated, "We could have a brilliant design, we could have a great theme going on in our miniature golf course, but I think the team that ultimately wins this task is going to be the team that is more creative in their marketing to draw people in from outside the venue." Armed
with her resolve, Kendra and Erin Elmore, 26, set out to create an
exclusive cross promotional relationship with every attraction at the
Chelsea Piers and essentially eliminated the most convenient value add
and combo positioning promotional partner from Net Worth Corp's
marketing strategy. Upon
the completion of the task, Magna secured its second victory in a row
earning $508 dollars ($204 more than Net Worth) and sending the
opposition to the Boardroom, where the firing of another candidate would
equalize the teams for the first time since the show began. The
practical lesson here is to move swiftly to secure strategic cross
promotional alliances before your competition does. ---
SIDEBAR ---
Listen
to my audio analysis of why Audrey failed along with additional tips to
be an effective and respected manager. Why
Cross Promote?
Cross promotion allows you to combine your offer with a means of free or
low-cost distribution. By joining forces with other credible businesses who also reach your niche market you can reach your customers more efficiently, credibly and memorably
than any other mass media. Cross
Promotional Marketing is typically very affordable, and when used
properly, often capable of locking out your competition in much the same
way Magna locked out Net Worth. This tactic is considered a strategic
advantage. The
3 "C's" of Cross Promotions: Cost
Why would another business be willing to promote your business,
driving her valuable clients to you? They wouldn't unless there was
something valuable in it for them. The key here is to make a reciprocal
offer to your promotional partner that carries with it a fair &
reasonable exchange of perceived value. As long as your partner
"perceives" your offer to be of equal "value" you'll
have no problem securing these relationships. Control
With mass media advertising, the advertiser typically has little control
over who sees their ad. However, with cross promotions, you typically
have numeric, geographic and demographic control. Numeric
Control
To protect from over-commitment, you can often control the number of
people who your partner presents your offer to, as well as control the
time / duration of the promotion. Geographic
Control
If your a local brick-and-mortar business, cross promotions can
effectively leverage geography and convenience to a far greater degree
than any mass media. For example, we often see movie theaters and
nearby food establishments engaging in cross promotions where the restaurant
benefits from post movie traffic and the theater benefits by adding
value to the price of admission. Demographic
Control
Unlike mass media where excess reach beyond your target market is
considered waste, you can choose to work with partners who cater to the
same niche market as you do. This affinity is achieved by fully
understanding your market and knowing the other products or service that
they consume. Some businesses are natural fits like real estate agents
and mortgage brokers; suit shops and dry cleaners. Credibility
The most beneficial and most subtle of the three "C's" is the
associative credibility that tends to transfer from your partner to you
just as an endorsement does. Further, some promotions are so good
that they will actually enhance your partners own relationship with her
own customers. For example, the ice cream shop across from the movie
theater, if the promotion is presented as the movie theater has secured
a $1 discount off a large banana split with the display of a ticket stub
then it appears to the movie goer that the theater has secured this
benefit for its customers. The
Big Secret Behind Effective Cross Promotional Campaigns
The critical and most over looked step of implementing any cross
promotional campaign is achieving buy-in from your promotional partner
across all levels of the organization that are responsible for
presenting the promotion to their customers. To incentivize the enthusiastic
support of your partners employees, consider offering small gifts that
represent a slightly greater value than the promotion, but does not go
as far as a "bribe".
Shameless
Plug:
No time to create cross promotional marketing campaigns?
ALTI Consulting and our
team of specialists can identify strategic alliances, develop creative
cross promotions and work with both teams to execute the campaign
effectively. To get help with your next cross promotion, give us a call,
or shoot us an e-mail, our contact info is at the end of this
newsletter.
We Want to
Know... Do You Have An Opinion?
I want to hear your
thoughts and reactions to last nights episode. Just call the
Apprentice Feedback voice mail line (800) 598-1338 ext. 9915 or send your feedback to
. If you make a good
point (or are the only person brave enough to call or write) you will be
featured in this newsletter.
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