This 9 year old is Smarter than your Marketing VP

A few days ago, I found this story from my email archives.

Chuck Mckay wrote it in the summer of 2008.

See if you agree:

Basics of Retail Marketing from a Nine-Year-Old

Nine-year-old Lindsey, who's visiting her grandmother and me, obviously has the entrepreneurial gene.

She decided on Wednesday to open the classic American neighborhood business, the lemonade stand. I suspect there are a few retail marketing lessons every business person could take from her example.


Optimism.

Have you ever met a nine-year-old who didn't believe anything was possible? When told “that won't work,” her response is automatically, “well, what if we did this?”

I'm not recommending that anyone take on the Don Quixote role, but there's something to be said for enthusiasm and attitude.


Location.

Although the ambient temperature hovered in the mid-90s, Lindsey chose to park her table in the direct sunshine next to the street, rather in the shaded (and much harder to see) front porch.

People must know you exist if they are to buy from you. If they can't see you, you're too easily ignored.


Pricing

Her question wasn't “How much can I charge to make maximum profit,” but rather “how little can I charge so that everyone will want to buy?” She settled on twenty-five cents per eight ounce cup.


Advertising.

Lindsey posted signs a block in every direction. She also was quite vocal. Not a pedestrian nor the driver of any automobile on Collis Avenue missed the message that she had “ice cold lemonade for sale.”


Upselling.

As each customer finished a cup of lemonade, Lindsey first confirmed that they were satisfied. “It was good, wasn't it?” When her customer affirmed that it was, indeed, good, she pointed out that a single eight ounce cup probably hadn't completely quenched the customer's thirst. She poured another and held it out to each customer.

Most bought a second cup.


Location, Reprised

Discovering that a crowd had gathered half a block away at a yard sale, Lindsey re-located her table to the yard sale, and offered cups of her lemonade to the hostess, and to the yard sale customers as well.


Summary: paying attention to retail marketing basics is always worthwhile. In a single afternoon, Lindsey grossed thirty-three dollars. And at twenty-five cents each, creating that many customers from scratch seems to me to be a rather impressive success.

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about basics of retail marketing may be directed to ChuckMcKay@ChuckMcKayOnLine.com

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How Many Steps?

From Chuck Mckay:

Zen and the Art of Persuasion.

There’s a gas station at one of the Interstate 20 off ramps in Columbia, South Carolina that is rumored to have the lowest prices in town. If they don’t have the lowest prices, they certainly have convinced a large group of drivers that they do. Most hours of the day they have a constant line of cars at each of the eight pumps.

A casual observer will notice a young man drifting from car to car, speaking with each driver in sequence. The young man you notice on Monday will not be there on Thursday. Another young man will have taken his place.

And should the observer become an eavesdropper, he’ll hear the young man explain that he works for a glass company “up in Greenville,” has his materials with him, and can repair the dings and chips in the driver’s windshield for between forty and sixty-five dollars. He opines that the motorists insurance will cover it, reimbursing the driver so there will be no “out of pocket” expense.

Apparently, enough people accept his offer that it’s profitable for the young man, or one very much like him. They keep coming back.

Occasionally one of the motorists, wanting to “think it over,” will ask the young man du jour for a business card. He never seems to have one on him. Although he can name the company he works for, he can’t remember it’s phone number. No, he doesn’t carry a cell, so he can’t provide that number either.

In any buyer / prospective seller relationship, there are two basic reasons that people choose not to buy, and the young man carrying the battery-powered drill and pocket epoxy illustrates them vividly.

People don’t buy when they don’t feel the need for what you’re selling.

They don’t buy when don’t trust you.

People avoid risk on three levels.

1. The biggest risk is that they’ll purchase the wrong solution – that they’ll have spent the money and still have the problem.
2. But, there’s also the risk that the solution they purchase won’t last, and their problem will be back. (The variant on this is buying from a company who won’t warrant the purchase, or even be in business if the purchaser ever needs their support).
3. And finally, if all of the solutions seem roughly equal, there’s the risk of over paying.

Put yourself in the mindset of someone who’s just become aware of a problem, which could be anything from “ring around the collar” to “my back hurts every morning when I wake up.” Whatever the problem she’s identified, she’s now looking for a solution.

Ring around the collar? One of the oldest formulas in advertising was perfected by major packaged goods companies like Lever Brothers and Proctor and Gamble. The familiar presentation is called slice-of-life, and is presented as if we, the viewers / listeners / readers are peeking in on a conversation between real people.

The formula is basic: State problem. Agitate problem. Announce solution.

1. First, our slice of life dialog establishes that “ring around the collar” is an easily noticed condition which will reduce social standing.
2. The off-camera announcer states the problem: “You’ve got ring around the collar.”
3. He now agitates the problem: “Those dirty rings. You’ve tried scrubbing. You’ve tried soaking. You’ve tried powders. And nothing works.”
4. We’re treated to a close-up demonstration of Wisk liquid laundry detergent being poured on the offensive sweat stain. The camera cuts to a close up of the same collar without the stains.
5. The off-camera announcer proudly announces the solution: “Wisk around the collar gets ring around the collar every time.”

This is a good example of a single-step ad. Its also known as an order generation ad. Its purpose is to get the prospect to recognize her problem, accept the solution, and purchase it. Now.

Does order generation advertising work? Most assuredly, it does. You’ve seen examples of it every day of your life.

The catalog from Sears or Terry’s Village. Every Yellow Pages ad. The “cash for gold” ads on television. The long-running television or magazine ads for Miracle Grow. A significant percentage of the letters in your mailbox from companies you’ve never heard of.

Let’s review those three risks.

Our slice-of-life laundry lady is highly likely to purchase Wisk, now that she’s seen, and accepted, the premise of the ad: “Wisk around the collar gets ring around the collar.”

1. Is she risking the wrong solution (no pun intended)? She recognizes ring around the collar as her problem, because she sees the sweat stains every time she does laundry. This appears to be an exact solution. Minimal risk.
2. Is she risking that her solution will be temporary? No. It’s a disposable product. If it doesn’t work as well as she expected, she can simply not replace it when she runs out. Again, no real risk.
3. Is she risking paying too much?* Probably not. If our shopper purchases the economy size “32 load” bottle of Wisk, she can expect to pay roughly $7.50. If she pays $7.83 will that price increase damage her cleaning budget? Hardly

Without the perception of risk it shouldn’t surprise us that this customer will quickly decide to buy the product.

Single-step ads tend to work best for simple, non-technical, and inexpensive products. The simpler the proposal, the easier it is to explain in a small ad. This is the principle which makes classified advertising work.

But what if the product or service needs more explanation than will fit into a small space ad, or half a minute on TV or radio? In general, the more complex the product, the more technical the nature of the product, the higher the price, the less likely a single-step ad will convert people from prospects to customers.

Back to the lady with the backache.

She wakes up, and groans while getting out of bed. By her second cup of coffee she’s moving freely and has forgotten about the stiffness.

But one day she realizes that this “back hurts first thing in the morning” business has gone on for weeks. In her mind (which is where it counts), that realization moves her backache to the status of a problem. Problems need resolution.

She begins to pay attention to what web marketers call “keywords.” Keywords aren’t limited to the Internet. Regardless of medium, they are one or two word phrases that trigger her reticular activation system and reach her conscious brain. In her case, the words will be “backache,” and “morning backache.”

Now that her subconscious is aware that they are important she begins to notice the advertising messages which surround her. As her eye skims the newspaper the keywords seem to leap off the page. She’ll be riveted to certain radio ads. She’ll stop talking during television advertising in which the keywords resonate in her conscious mind.

• “Morning backache is a sign of a too soft mattress. See how good you feel after 30 nights on a Simmons Beauty Rest.”
• “Morning backache is a sign of poor posture. WalkFit Orthotic Shoe Inserts helped over 90% of the people tested reduce pain levels in their feet, knees, spine and pelvis.”
• “Morning backache is a sign of poor spinal alignment. Should that stiff neck or sore back persist, call your Doctor of Chiropractic.”
• “Morning backache can be treated with Doan’s Backache Pills. They relieve the aches and pains and that helpless feeling of stiffness, so that the system can be restored to full health.”
• “Morning backache is a sign that the vital magnetic energy from the earth’s natural magnetic field has been interrupted. Magnetic insoles provide penetrating magnetic therapy for the entire body while soft massage nodes stimulate reflexology points.”

Multiple products promise to relieve her discomfort. Multiple disciplines claim to treat her condition. With the limited knowledge she possesses as an entry level shopper, she could easily choose the wrong solution, or one that doesn’t last. Without knowing which solution is appropriate she could easily overpay. She’s swimming in risk.

Sellers would love for her to buy from a single-step ad.

From the seller’s perspective a single-step order generation ad is a quick sale. It doesn’t require any follow up. Done well, salespeople may not even be necessary. The process seems so simple, so straightforward, so easy. “Here’s my offer. Come buy it.” There is no intent for these ads to build image or “brand” the advertiser. Their only purpose is to get the sale. Miss Prospect will buy, or not. No second chance.

But Miss Prospect may not be ready to buy when you want to sell. She may not need it today. Even if you do, she doesn’t know you. She doesn’t know your product. From her perspective she’s surrounded by risk. Did I mention that she doesn’t know you?

She needs information about how you can solve her problem. She needs information about your professional reputation. She requires more information than can fit into a small newspaper or magazine ad; more than will fit into a radio or television ad.

When she’s in the early stages of seeking a solution for her problem, Miss Prospect will want to see a demonstration, read a specification sheet, see an estimate, meet for a consultation, or expect a presentation before she buys.

See the problem? One-step ads work best when the offer is simple, and inexpensive. They work when the prospect is a late stage shopper, and is very close to making a purchase. But when Miss Prospect is an entry stage shopper, is bewildered by the sheer number of choices, and feels overwhelmed by risk, they tend not to work at all. Mr. Advertiser schedules his single-step offer to run in the noon newscast, and at 12:15 is standing at the door wondering where all of the buyers are.

If we’re selling mattresses, orthotic shoe inserts, chiropractic services, analgesic pills, or magnetic therapy – if we’re selling anything which takes a more detailed explanation than “this detergent gets the dirt out” – we’ll do better breaking the sales process into two or more parts.

Instead of asking Miss Prospect to commit to the purchase, we ask that she only commit to the risk-free next step in our selling process.

What’s the risk-free first step?

Example 1:

How do Proctor and Gamble minimize the customer’s $7.50 risk for any of their new detergents? They offer a free sample of the product. Enough for two or three uses. Miss Prospect tries the soap, likes the way it cleans, really likes the new fragrance, and adds the product to her next shopping list.

Summary: the manufacturer invests roughly 57₵ to acquire a new customer of their consumable product. Its likely that she’ll spend roughly $90 per year re-purchasing it.

Example 2:


“If we pre-qualify you and your claim is denied, the Scooter Store will GIVE you your new power chair or scooter, FREE.”

Summary: by offering a “pre-qualification,” the advertiser gets the complete personal information on an active prospect.

Example 3:


“Well I married my dream girl, I married my dream girl, but she didn’t tell me her credit was bad…” This delightful ad for Free Credit Report dot com offers a three bureau credit report, at no cost to the caller. There are two reasons this one is worthy of note. First, it uses network television (with only :30 seconds to tell a story) to drive traffic to a web site where there’s no limit to the amount of information which can be presented to the prospect.





But, pay close attention to both the tiny screen writing and the subdued voice over, each of which say, “Offer applies with enrollment in Triple Advantage.” Did you catch it? The entire 30 seconds pushes the free credit report which people get by enrolling in a monthly credit monitoring service for $14.95 per month.

Summary: for the price of a single credit report (no incremental cost to the advertiser), and by focusing ONLY on the premium – the free report – they get a subscriber who will pay nearly $180 per year.

Imagine trying to convince people to sign up for a monthly credit monitoring service in a :30 second single-step TV ad. “Call now. Protect yourself from identity theft for only $14.95 a month. Operators are standing by…..” But asking them to identify themselves by requesting their own credit report? How elegantly simple.

They call it two-step marketing, but…

It may be the second, third, or forth step which closes the sale after the first step provides the “lead.”

Or it may be a series of progressively larger sales. Roy H. Williams says the subscribers to his free newsletter may become familiar enough with his writing to purchase a $12.95 book. Some of the book buyers may purchase a $49.00 video, or a $495 training program, or a $3,000 three-day seminar. Some of those purchasers will become consulting clients. Roy calls this his “gravity well.”

Whether you call the two-step process a prospect funnel, a gravity well, or lead generation, there are a few things you can do to maximize its effectiveness.

1. Create a free brochure, a white paper, or report that will be of interest to people who are seriously considering the purchase of what you sell. Your information becomes a no obligation, low risk, non-threatening reason to start a relationship with you.
2. Instead of trying to sell your service, or product, sell the value of your information. Make it useful. Make potential customers feel that there’s information they must have before they make a final decision to buy. “The seven things you must ask your HVAC contractor before you sign the contract for a new air conditioning unit.”
3. Send an e-mail or a conventional letter. Run a radio ad, offer it on your website, or print an insert for the local newspaper. Get the word out that you’re offering valuable information for anyone considering buying what you sell. At this point, your hot prospects will identify themselves by asking for a copy.
4. You did capture their contact information, didn’t you? Names, addresses, phone numbers, and e-mail addresses? Because now is time for the follow ups, in which you cultivate a relationship and turn them into customers. Sign them up for your newsletter. Invite them to an open house. Offer a free consultation, or an invitation to a free seminar. Offer a special promotion. Offer more information. Build the relationship.

Not everyone you meet will be a qualified prospect for what you sell. And remember that qualified prospects still won’t buy if they don’t believe they need what you’re selling, or if they don’t trust you.

Two-step marketing allows you to persuade your prospects that what you sell is the exact solution they’re seeking. More importantly, it allows them to experience your trustworthiness. And both are critical to the reduction of perceived risk among your prospects.

___________

*Doesn’t it strike anyone else as odd that so many business people skip by the two more critical perceived risks, and immediately cut price to stimulate sales?
___________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about single-step and two-step advertising may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Stealing

Not the bad kind, that can land you behind bars.

Chuck McKay talks about the kind of stealing that will help you business grow this year:

What's the one clear compelling reason for people to "try" your brand?

Do you know what they feel is lacking in their lives?

Please enjoy...

How to Steal Your Competitor's Customers.

How to Steal Your Competitor's Customers.

Is this a good ad? Does it make you want to buy a can of John's Tomato Juice? A good ad would. A good ad would catch the attention of someone who wanted tomato juice, and offer compelling reasons to choose John's brand. But this ad? People expect tomato juice to be pure and fresh. The "whole tomatoes" part isn't an expectation, but it's not surprising, either. Nope. Not a single reason to choose John's Tomato Juice. Without a demonstrable difference people tend to buy the more familiar over the less familiar. Even after they've seen advertising for the lesser known brand? Unfortunately, yes. John's ad may well encourage a shopper to pick up a can of tomato juice. Odds are, though, it will be a can of Del Monte's, or Hunt's, or Campbell's. Ouch. John's, like all of the rest of us, needs a compelling difference to become the brand of choice. If shoppers believe John's Tomato Juice is just like all of the other brands, the only reason a shopper would choose a lesser known brand like John's would be price. Awareness. But suppose I point out that tomato quality makes a difference in the taste of the juice. John's Tomato Juice uses only heirloom tomato varieties, chosen for exceptional flavor. John's tomatoes are individually selected and hand picked at the peak of ripeness. They are processed within hours to capture their freshness. I've just made you aware of a significant difference offered by John's Tomato Juice, and provided enough specific detail to make my claim of improved taste believable. Ideally awareness (and in this case curiosity) might prompt you to sample John's. If you like the taste, John's could become your preferred juice. And if large numbers of customers sample and prefer John's, that will lead to increased demand, increased market share, and through economies of scale, greater profits. Awareness → Preference → Market Share → Profitability This process always starts with awareness, which happens in one of two ways: though large amounts of advertising, or more spontaneously because the product (service) is noticeably different. Cognitive Overload. Thinking is hard. Remembering, not so much. And once a preference is established in the mind of a consumer, that decision won't be revisited. Unless, of course, that consumer is presented with a compelling new reason to reconsider. Have you ever talked to a homeowner who has decided she needs a new home? Listen carefully to her descriptions. She may only vaguely be able to describe what she wants in her new home, but she will explain the shortcomings of her current house in great detail. Her dissatisfaction will nearly always be a predictor of her purchase behavior. You could build an ad around her specific irritations. Other disgruntled homeowners would immediately identify and pay attention. Unfortunately, too many companies don't bother to research their customers. When it comes time to make something happen their inclination is to cut price. Long term this is seldom a valid strategy. Why? Because there can only be one lowest-price producer in each market, and chances are its not you. That lowest-price strategy is nearly impossible to sustain, and there's no particular advantage in becoming second-lowest. Distinguish. Advertising becomes more effective when there's a difference upon which to build the ads. But difference for its own sake is only weird, and weirdness doesn't sell. To persuade a customer to buy, the difference must be meaningful to her. As noted in How Do You Educate A Customer?, most businesses don't have enough time or money to convince non-users to enter the market. Most can, however, convert customers who've already been persuaded by the market leader to enter the category. Stealing someone else's customers is the most efficient use of your advertising dollars. Therefore, the only advertising strategy that makes sense for most businesses is to influence your competitor's customer to switch brands. For highest return on your advertising investment, do this close to the time of purchase. Effective advertising solves a problem. What's the one clear and overriding reason that will get your business noticed, provide new information, and persuade some other company's formerly satisfied customers to try your brand? Here's a hint: most opportunities will not be the direct opposite of the market leader's strategy, but rather in exploiting an opportunity that is either too small or too far removed from the market leader's primary focus. McDonalds sells fast, fresh, and fun. Subway is best-known as the provider of non-fried low-fat sandwiches. Wal-Mart is positioned as the lowest price retailer. Target's more sophisticated image is that of the "hip discounter." Goodyear focuses on quality: "The best tires in the world have Goodyear written all over them." Michelin's appeal is safety: "Because so much is riding on your tires." Michelin didn't create the desire to keep family members safe. They did, however, recognize and exploit a genuine need already felt by a significant number of customers. A need that Goodyear's quality/value position can't fulfill. Will Michelin ever overtake Goodyear in gross sales? Unlikely. However, among people who's primary concern is the safety of their families, Michelin is much more likely than Goodyear to be their first choice. Being the first choice in your own unique category is the basis of developing a solid U.S.P. This makes it tremendously difficult for any competitor to counter your advertising. The market leader can't do what you're doing without abandoning his own highly-profitable position in the market. And when the other smaller competitors try to copy what you're doing (and they will) their ads will only remind people of you. In his book, The Ad Contrarian, (great read, by the way), Bob Hoffman says: "We don't get them to try our product by convincing them to love our brand. We get them to love our brand by convincing them to try our product." Care for a glass of tomato juice? Its John's. You'll taste the difference those heirloom tomatoes make. Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about the strategy of converting your competitor's customers may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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The Pro's & Con's of Radio Remotes

First, the words of Chuck McKay, then my thoughts on the subject:

Is a Radio Remote Broadcast a Good Investment?

One of the advantages electronic news has over print is the capability to deliver information in real time “live from the scene.” As you might imagine it didn't take long for this proficiency to migrate from the news department to the sales department, giving birth to the radio “remote broadcast.”

Remotes are traditionally expensive. But as advertising sales remain weak in this economy, advertisers are being offered discounted rates on almost all advertising, including remote broadcasts. And that prompts a critical question: is a radio remote a good investment of advertising dollars?

Like everything else in business, the correct answer is “possibly.”

The problem is there are at least four different people involved in the decisions effecting such a broadcast. Most of the time each has a different objective. Those four people are:

1. the Manager/Owner of the business,


2. the Radio Sales Person,


3. the Radio Program Director, and


4. the Disc Jockey.

What do each of these people want?

The Manager/Owner wants buyers.

His objective is to sell merchandise in such quantity that he can pay for the advertising and still show additional profit for his efforts.

He believes his store offers value. He believes when large numbers of people hear about his offers, they'll flock to the store to buy. This is usually expressed as “you get people in the door, and we'll sell 'em.”

The Radio Sales Person translates this instruction.

“Get them in the door” becomes, in her mind, “your job is to attract a crowd.”

She will arrange all of the crowd drawing techniques at her disposal. These will include a clearly identified station vehicle in front of the store as an attention-getting device. It will be augmented with banners and sound system.

She'll provide tee shirts emblazoned with the station logo and other station paraphernalia to give away to listeners who come to the event.

She'll try to arrange to have clowns, balloons, and face-painting to attract kids, free food to attract their parents, and the ever-popular “register to win” entry box. (The prize will, of course, be provided by the customer).

The Radio Program Director will coordinate.

After determining there are no conflicts on the proposed broadcast date, the Program Director will assign a Disc Jockey as “talent.”

The Program Director's job is to keep listenership high. She hates remotes, considering them to be interruptions to the programming (music), and potentially harmful to ratings. The Program Director will thus limit the number of reports from the scene, limit the length of each report, and do her best to disguise the reports by running instrumental music under the Disc Jockey's voice.

The Disc Jockey will be expected to attract a crowd.

Feeling pressure from the Manager/Owner and Radio Salesperson, the Disc Jockey will attempt to bribe listeners. He'll repeatedly emphasize “C'mon down. We're having a great time,” and will list all of the free items they could win just for showing up.

A few listeners will be impressed by being close to a celebrity. He'll be tempted to talk to those people who come to him, rather than introducing himself to other potential customers. Part of this, believe it or not, is shyness.

The results are entirely too predictable.

In order they will be:

1. Reacting to the offers made during the broadcast, people will come to the event for the free food, the clowns, the balloons. They will register for the prizes. They will then leave without buying anything.


2. Frustrated by the lack of sales, the Manager/Owner will accuse the Radio Sales Person of bringing the wrong people to his event.


3. The Sales Person will explain to the Manager/Owner the benefits of branding and name recognition. She'll explain the positive effects of today's high-profile advertising might not be immediate, but will definitely impact future sales.
   
   Back in the privacy of the radio station she will find fault with the Disc Jockey who spent too much time socializing with fans and not enough persuading them to buy.


4. Of the four people involved, the Disc Jockey will take the majority of the heat when the outcome is disappointing. He's not a seller. He's an entertainer. And even though he feared it might end this way when he agreed to accept the talent fee, he will bitterly resent being held accountable for lack of sales, which he believes are beyond his control.


5. Oddly, the Program Director has the best grasp of the situation. After listening to the Sales Person's criticism, will resolve to discourage future remotes as too much hassle. “Next time sell 'em a schedule of ads” will be her recommendation.
   
   By doing her best to hide the event from her own listeners, she's created a self-fulfilling prediction of failure.

Unfortunately, the Disc Jockey did attract the wrong people. When listeners hear words like "fun" and "free" instead of compelling reasons to purchase right now, they react accordingly.

Equally unfortunate is the Sales Person's claim that future sales will benefit from today's advertising of an event. Although branding and image building ads do take a while to affect customers, and do frequently work better over time, event advertising is quickly forgotten.

No immediate sales. No future sales. Conclusion? Most remote broadcasts are a waste of money.

Which is why, in general, I don't recommend them.

However. . .

When done correctly they are powerful marketing tools that provide opportunity for greater sales. And at some of the prices we're now seeing, this may be an excellent time to consider adding one, or more, to your marketing plan.

In our example the four people involved had mutually contradictory objectives. To have a successful event all four must embrace the same purpose: greater sales during the event. That goal must guide every decision effecting the broadcast.

Here's how to assure higher remote broadcast ROI.

Mr. Manager/Owner, take a step back. Recognize that you are more excited about the things you sell than the public will ever be. Expect them to be less excited about your remote broadcast, too.

Think of it this way: a remote broadcast is not an event. Much like a newscast, it is only coverage of an something newsworthy which is already happening. People want to know the news.

A strong concept works well if promoted in the newspaper, on television, or through direct mail. It doesn't require creativity of the medium to make up for lack of customer interest. If your event that exciting, continue planning the remote. If not, abandon the idea. There's no sin in passing up an inexpensive opportunity which won't benefit your company.

OK. You have a strong concept. Good. Don't use the station as your only source of publicity. We're not trying to prove this station can draw a crowd. We're focused on attracting as many buyers as possible. Buy a newspaper ad or two. Keep those ads customer focused.

The headline should address the primary benefit you're offering. The body copy should say the things your best salespeople say to customers on your sales floor. Put your logo, as well as that of the station, at the bottom of the ad. If your headline catches people's attention, and your body copy offers strong reasons to buy, only then will they care who's making the offer.

Miss Radio Sales Person, give your client's business the benefit of your experience. “Great savings throughout the store” is much too generic and won't persuade anyone. Make sure all of the parties agree on a message which is both specific and highly beneficial.

Is the proposed remote broadcast the best use of your client's money? As you know, grocery stores make dozens of offers in a “double truck” two-page newspaper layout. They focus so many reasons to buy into a single space every week because it works. If you believe you could create more sales impact with an intense, highly-focused schedule of recorded ads packed into a single time period, do that instead of the remote. The cost to the advertiser is the same either way. Give him the choice with less risk.

Miss Program Director, stop compromising. Either refuse to interrupt your music with talk, or commit to making the talk segments so compelling that your music listeners don't want to be left out.

Would you refuse to interview the top artists in your format? Of course not. Listeners don't resent talk. They resent people blathering on about topics that don't interest them. You, Miss Program Director are uniquely qualified to find the exciting appeals that your listeners will want to learn more about.

Your presentation skills can turn this potentially dull and boring jabber into the most exciting information available on the day of the broadcast. Hype won't work. You've got to dig for genuine value, and then make sure it's presented in a way that helps your listeners imagine themselves owning what the advertiser sells.

Schedule three reports per hour during the broadcast. Have the Disc Jockey announce his location during the FCC required legal ID. Require your studio talent to plug the event during each music segment. That works out to acknowledging the remote seven times per hour. Just as you wouldn't allow your station to go a quarter hour without reminding listeners to whom they're listening, this proposed broadcast will also need that frequency of repetition.

Give your Disc Jockey the latitude to react with his own personality from the scene, but make sure each key point is included in each remote break by scripting a standard beginning and ending.

Here's the part you're going to hate: kill the music bed during reports from the scene. We want people to take note that something unusual is going on. Play a quick attention-getting intro (think fanfare) as he's introduced, and then, other than the Disc Jockey's voice, let the natural ambiance of the event be the only sound.

Can you commit to promoting this event for maximum advertiser impact? If not, do both the client and your listeners a favor and offer to help create a persuasive advertising campaign for him instead.

Mr. Disc Jockey, your role needs to change. You're no longer being asked to host this broadcast because you're popular and have fans who are likely to come see you. You're being asked to use all of the presentation skills you've acquired in your career to introduce your listeners to the advertiser's business.

Why would you do that? Because they will benefit from the resulting relationship. Believe it, or recommend another talent. Use that conviction every time you open the microphone.

Get rid of every cliché in your vocabulary – especially those things which you've grown used to saying on similar occasions. Repeating the same old verbiage will only produce the same old results.

Watch for customers leaving the store. People who've purchased something are sold on the value of their purchase. If they're reasonably articulate, invite them to briefly answer a couple of questions during your next break. Tell them what you'll be asking, and help them to quickly express their reasons for buying. These people have exceptional credibility with other folks listening to your broadcast.

And don't worry about what the station provides for you to give away. We're now looking for different responses from different people than you've invited to past events. Truthfully, you'll make more money persuading people to visit the store who don't care so much about meeting you as they are interested in the client's offer.

By the way, shaking hands with everyone in the crowd and personally welcoming them builds listener loyalty in a way nothing else can.

Finally, Mr. Manager/Owner . . .

The question was, are remote broadcasts good investments? Normally, no. But with the prices now being offered, maybe.

If you decide to try it, don't choose a station as your promotional partner because of ratings, or even because of price. Instead, choose a partner committed to getting qualified buyers to your event. You'll know whether you have the right radio station early in the planning process.

Get the station's Sales Person, Program Director, and Disc Jockey into a planning meeting. Bluntly ask if the station will commit to the three breaks per hour, plus the legal ID, plus three more mentions by the on-air host. Ask if the station will eliminate any music during reports from the scene. Ask if they are willing to make your broadcast the single most important event on the air.

If they are not willing, call a meeting with a different radio station. If they are, commit your resources and schedule the event.

And remember that media partners who put your needs first have earned a significant part of your non-event advertising budget, too.

__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about advertising schedules or remote broadcasts may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

It's me, again. When I started in the radio business 30 years ago, radio station remote broadcasts were a bigger deal than what I see going on now at a lot of radio stations.

In Fort Wayne, Indiana, where I started and where I returned to after working in larger markets, we have seen a tripling of radio stations. Where there were once 6 stations, there are now more than 20. Media choices, and entertainment choices have expanded and there are less "superstar" radio celebs in your town.

Two of my three radio stations continue to do remotes.

We have a good team, the programming team understands the needs of the sales staff, who in turn respect the programming side.

Our Top 40 station draws crowds and our Rock station creates events when we do remotes. Remotes are only done when appropriate and expectations are realistic. And we don't play music beds under the live remote reports.

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Word of Mouth Marketing?

Chuck McKay:

There Is No Word-of-Mouth "Marketing."

Pay close attention to Stephanie's story:

“Roger's feet get cold easily, so I bought him a pair of sheepskin slippers. He loved them, but it wasn't long before the wool lining started wearing off. So I called Lands' End to see if I could get them replaced under warranty. The lady I talked to was very nice, but she couldn't find any record of my purchase, and she couldn't figure out which slippers I was describing. But, she cheerfully told me that she'd be happy to exchange them, and gave me a return authorization. I was pretty excited when I told Roger that Lands' End had agreed to replace his slippers even though I couldn't find the sales receipt. He told me that was because I bought those slippers from LL Bean.”

Stephanie tells her story well. People laugh at it. It's the kind of story that people tell each other daily. It's the kind of story likely to be repeated by people who don't know either Stephanie or Roger.

There's a critical lesson, though, in Stephanie's story. Did you catch it? No problem. We'll come back to it in a minute.

Stephanie's story is an example of Word-of-Mouth.

It's not, however, an example of Word-of-Mouth “marketing.”

And apologies to WOMMA aside, I'm not convinced that Word-of-Mouth marketing exists.

Why? Because adding the word “marketing” assumes that it's something the business causes to happen. Word-of-Mouth may be influenced by business, but by it's very nature it can never be controlled.

Go back to Stephanie's story for the critical distinction. Is she telling a story about customer service at Lands' End? No. She's telling a story about her own experience as a customer. People love to tell stories about themselves.

Exactly how important is your product or your service in the telling of any customer's story? If the stuff you're selling fits into her narration, it might be included. But whether it is or not, Word-of-Mouth in any of its forms is always about the experience of the buyer. Only indirectly is the seller even involved.

Which makes Word-of-Mouth "marketing" a misnomer.

Word-of-Mouth is not marketing for several reasons.

Marketing becomes cost effective when there are efficiencies of scale. Word-of-Mouth takes place on a one-to-one basis.

In marketing, a company sends its message directly to prospects. Word-of-Mouth is farther removed from the company with each iteration of the story. People who know the story teller will be influenced. People who know those people may be slightly influenced. At three degrees removed there will be minimal effect, if any. (And yes, I'm fully expecting a few e-mails pointing out "Viral Marketing" as an example to the contrary. Can anyone even predict what goes viral? I thought not).

Finally, people may get your message wrong, and you can't stop it from happening. In a few more tellings Stephanie's story could easily mutate into a tale about a lady who had a funny interaction with Sears.

Word-of-Mouth is not marketing. It's not advertising.

Word-of-Mouth existed long before advertising. When most people lived in smaller communities, walked to the market, talked to their neighbors, and gathered in churches or meeting halls, Word-of-Mouth was simply conversation.

Advertising became important communication when our communities got too big for the people selling stuff to personally know their customers. Mass media carried the message from the manufacturers of goods to the new post-war middle class.

But for the last century, probably due to over exposure, we've all become less susceptible to advertising's claims. Customers now are more likely to believe the opinions of total strangers than the advertising messages of local companies.

Ouch.

Word-of-Mouth is now more critical to business success than at any time since the dawn of mass media. And yet, you can't make a customer talk about you. You can't make her not talk about you. You're going to be mentioned when you're part of her story. No more. No less.

Change your role in her story.

Although you may view Miss Customer as a purchaser of the things you sell, she sees herself as the protagonist in her own story. When you try to make the story about your company, Miss Customer will dismiss your whole effort as irrelevant.

But if your business is willing to become the secondary character in Miss Customer's personal narrative, is willing to engage Miss Customer, and indeed to make her story possible, that's when she'll take you along for the ride. Your business "character" will be portrayed in much the same way as her interaction with you happened in real life.

Treating her well may be the only influence you have in the creation of positive Word-of-Mouth. Treating her badly ads drama to her story. This not only makes your appearance in her story more likely to be negative, dramatic stories tend to be told more often, and over a longer period of time.

Which leads to what may be the most important question: when she does business with your company, do you treat Miss Customer as the star she is?

__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about Word-of-Mouth may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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The Case for/against Coupons

I always enjoy the writings of Chuck McKay:

Free Coffee and the Incremental Discount Coupon Tactic

As I headed out the door the Lovely Mrs. McKay handed me a coupon from the new C store in our neighborhood, saying “You've got to stop for gas anyway. Here's a coffee for the road.”

The coupon offered a “free coffee beverage” from, oh, let's call 'em “Comfort Brothers Gas Station and Convenience Store.” I thanked her and slipped it in my pocket.

Does a lower price boost sales?

Will the availability of a discount, or a membership card, or a “get one free after purchasing ten” punched card appeal to everyone? Of course not. Some shoppers enjoy clipping, collecting, and organizing coupons to take advantage of reduced prices on household goods. Others see the time required by that process to be part of the price they pay for your service (or product), and will happily agree to full rate not to be bothered with it.

If you offer a discount to shoppers who would have paid full price, you lower profitability. On the other hand, not discounting for the undecided leaves some inventory unsold. That reduces potential gross sales.

How can you tell which is which?

The answer is to let them select themselves.

Make multiple offers at different price points to maximize sales. Those who wish to pay full price may do so, and those who won't will find a subsequent price/value ratio which works for them.

Here's how to make it work:

Let's imagine you have purchased a mailing list of high probability prospects for your new service. Send a letter, or post card, or other mailing piece to the entire list. Offer to sell them your service. Explain why you offer a good value. Some will purchase. Move their names from your “general” list to the “paid full price” list. Guard this new list. The names are golden.

A couple of weeks after your first mailing, send a twenty percent off coupon to everyone who remains on your “general” list. Segregate the names of those who respond to your second mailing into a “twenty percent discount” list.

In ten more days send the remaining names on your “general” list a thirty percent off coupon. See how this works?

You're accomplishing two things through this process.

First, you're maximizing sales at every price point. Second, you're segmenting your general list into groups of people who have now revealed the price at which they're likely to find your future offerings appealing.

The percentage who bought from your very first mailing, divided by the total number of pieces mailed, is your base conversion rate. Over the next few months you might get as much as ten percent more than your base conversion rate, by offering these incremental increases in discounts. Expect the biggest response to be to your first coupon mailing. Each successive offer will produce a smaller number of buyers who will decide the price is finally right.

Of course, the biggest factor which determines your base conversion rate is the offer itself.

Specific dollars (cents) off tend to be more appealing than do percentages, although that can be affected by the market and the range of prices. Another proven appeal is to offer a reward such as free shipping or gift wrapping, or a free upgrade to anyone who spends a minimum amount.

And you'll always want to print expiration dates as part of your call-to-action to force a decision. “This offer good this weekend only,” or “Offer limited to the first 100 customers or close of business Friday, whichever comes first.”

But, I digress from my personal coupon story.

After gassing up the car, I went inside to pay and to pick up a cup for the road.

The coffee menu offered “a full-line of latte and mocha beverages served hot, iced and frozen, with gourmet flavored syrups and chocolates." Every conceivable latte, espresso, and cappuccino. Full caffeine, half caf, caffeine free. With and without sweeteners, cinnamon, or chocolate. Iced lattes and mochas. Frozen lattes and mochas.

Thinking of my blood sugar, I finally decided on a simple cup of house blend.

I presented my coupon and was told that they couldn't honor it as payment for plain coffee. The offer, as I could plainly see, was for one of their prepared coffee beverages. Not for a simple cup of coffee.

“Are you serious,” I asked? “You're willing to make a generous gift of a $4.50 banana caramel iced mocha, but you won't let me have a simple sixty-nine cent cup of coffee?” Again, the attendant pointed out that the coupon clearly offered a “free coffee beverage,” and not a free cup of coffee. I handed the woman a dollar, took my change, and headed down the road.

Years ago I watched an older lady present a coupon for a Big Mac at a Burger King restaurant. The young man behind the counter said, "Ma'am, this is a coupon for a McDonald's sandwich. We have a very similar sandwich called the Whopper. May I get one for you at this same price?" This young man gracefully helped his customer avoid embarrassment. Care to bet she became a loyal customer?

I hope my experience was not typical. I hope that the tens of thousands of coupons the Comfort Brothers spent on their grand opening paid off handsomely. In truth they have a beautiful store. It's spotless, modern, and well laid out. The staff is friendly, well trained, well dressed. Shopping in their store should be a pleasure. I'm sure for most people it is.

But I only remember that when I presented my coupon, they told me "No." And that's a tough first experience to overcome.

__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about implementing an incrementally discounted coupon tactic may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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The New Rules for Advertising

I like the way Chuck McKay drives home a point. This is from his blog FishingForCustomers.com

Presented for your consideration two very similar conversations. The first never happened. (Well, technically, I did call a few friends and irritate them with the opening question). The second most assuredly did.

Conversation #1:

Q: I think I need to cook. What should groceries cost me?

A: Huh?

Q: What should I have to spend on groceries? I haven't been cooking. I need to.

A: How in the world could you expect me to answer that? There are too many variables.

Q: I asked Bob. He said, “$200.”

A: Will you cook for yourself, or your family, or do you intend to have guests? How big is your family? How many guests? Will you cook one meal or several or all of them? What foods do your family like? How much variety is important to you? How do you feel about leftovers?

Q: You're making this way too complicated. Just give me a number.

No one would take the “what will groceries cost?” question seriously. As ridiculous as it seems, though, the quite similar “what will it cost to advertise?” question is common.

The following exchange took place about a week ago between me and the absentee owner of a shop which sells handbags and accessories.

Conversation #2:

Q: I think I need to advertise. What should ads cost me?

A: What?

Q: What should I have to spend on advertising my store? I haven't run any ads in months. I need to.

A: I have no idea. There are too many variables.

Q: I asked Bingo Radio. They said “$1,000.”

A: Why do you think you need to advertise?

Q: Business is off a bit. I probably need to spend a few bucks to bring customers back to my store. I have an ad we used to run. I just want to know what it should cost.

A: How will you know that your ads are working?

Q: People will come in and sing my jingle to get a discount.

A: Has that worked for you in the past? Because I've never seen an audience react positively to “mention you heard this ad.”

Q: You're making this way too complicated. Just give me a number.

There's an old saying that a rising tide lifts all boats. Even the leaky ones. Even those which aren't ship-shape. Even those which are too unsafe to be allowed out of port. The tide doesn't care.

For the last couple of decades the financial tide has kept leaky, non-ship-shape, unsafe businesses afloat, too. Money has been cheap. Credit has been easy. And it seemed that anyone with an idea could find someone to finance it, purchase inventory, rent a location, and open for business. And as the financial tide kept rising, operators of these marginal businesses were able to sell enough to stay in business.

And why not? Money and credit were not only easily obtained by business, but also by shoppers who bought stuff they didn't need with money they didn't have, just because they could.

And now comes the reckoning.

Three years ago when the economy was robust the companies which did the best job of marketing themselves doubled or tripled in size. Today, phenomenally successful marketers are working to repeat last year's sales. Most companies are shrinking. And too many small businesses don't even have a marketing program.

For operators who understand the minds of customers, we now live in a time of great opportunity. The loss of sales volume across both retail and service industries has taken a corresponding toll on the media. Today's advertising prices are a bargain. For the first time in my experience, even the price of your Yellow Pages ad is now negotiable.

But, a great price on an individual ad doesn't include meaningful content for it's message. Messages which pulled well two and three years ago aren't working any more. And a bargain price on an ad which says nothing salient is a shameful waste of money. Today's most important question isn't “Where should I advertise,” it's “What do I say?”

Our handbag shop owner has noticed that business is off. Fewer people are buying, and she suspects that “advertising” might solve her problem, but she has no understanding of how it works. In her ignorance she's asking questions as silly as the “what do groceries cost?” dialog above. She has no plan. She doesn't even have a goal. Worse yet, she doesn't understand why either is necessary.

My prediction? She'll waste a couple of grand trying to make customers do what she wants them to do, rather than providing what those customers want. Her store will fight to stay open through forth quarter of this year, hoping to pick up some big sales for Christmas. Those sales will not happen. Following a liquidation sale in January her store will close, permanently.

It's not the bad operators that I worry about.

It's the under capitalized, non-niched, owner operated small retail or service businesses. The companies which deliver real value for their customers, but haven't created a marketable position for themselves.

Too many of these operators will effectively become twenty-first century sharecroppers. One hundred years ago they'd have borrowed the money for seed. They'd have planted, and prayed for rain. They'd have worked long, hard hours hoping for a large enough harvest and a market price that would allow them to sell their crop, pay back the loan, and have enough left to feed the family the coming winter.

In a number of conversations with small businesses over the last week the theme which keeps repeating is “I need working capital. I need to be able to purchase inventory.” Credit lines have dried up, and these operators are hurting. Not because they're bad operators, but because the rules of the game have changed. Assuming they find new sources of capital, there will be limits on how much they can borrow and how quickly it must be repaid.

Get used to the new rules. We won't be going back.

What can we expect from these new rules?

Every economic downturn shakes out the poseurs, wipes out the frauds, and toughens the survivors. A few will adapt to the new marketplace reality, and thrive.

Those who thrive are the operators who will learn which items to stock. They will meticulously keep an adequate inventory while simultaneously avoiding items which won't quickly sell.

They'll keep a close eye on customer count, perhaps in increments as small as fifteen minutes, in order to hold labor costs in check.

They'll learn exactly who their customers are, and exactly what is important to them. Every advertising message will attract new customers and persuade existing customers to shop more.

Their companies will be smaller, leaner, and incredibly efficient. And their relationships with those customers will become much more personal.

Great companies are born of adversity. Are you ready for greatness? Shall we get started?

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about effective advertising in this economy may be directed to ChuckMcKay@ChuckMcKayOnLine.com

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Justify your Advertising

From Chuck McKay:

Hope is Not a Strategy for Greater Return on Advertising Investment.

A couple of decades ago I introduced a friend who sold pianos to the manager of a local radio station. The manager suggested that the piano salesman consider radio advertising sales. The salesman refused. "Sometimes advertising works," he said, "and many more times it doesn't. The worst part is you can never predict which is going to happen. I couldn't in good conscience sell something that I don't believe will work." Ouch. Is advertising more of a gamble than a science? If advertising is an investment, you should expect to see a predictable profit from that investment. Invest a dollar in advertising, get back four, or five, or six. At the very least, shouldn't you get back a dollar ten? But if you you don't know whether your ads are driving revenue, you can't very well call it investing. If you don't know whether you'll win, or lose, or break even, you are gambling. And if you put your money into ads that you "feel" are working, but but can't measure their effect, you're still gambling. Noted investor Peter Lynch once said, "An investment is simply a gamble in which you've managed to tilt the odds in your favor." So, maybe effective advertising is that which has been tilted in your favor. Not so much an answer, as a process, which includes better targeting, more effective messaging, and improved media selection. The purpose of an ad budget? The reality is that most of us fear that we aren't turning our marketing dollars into profit. Not consistently. Not directly. Which is why we have advertising budgets. To limit risk. An ad budget serves the same purpose as going to the casino with a hundred dollars in your pocket and saying "When this hundred is gone I'm done playing. Maybe I'll get lucky. But I've got to set a limit on how much I can afford to lose." Think about it. If you knew you were going to get back more than you spent, why would you ever stop spending? Perhaps you don't need a budget so much as a lever. The Greek mathematician, Archimedes, understood leverage. He's reported to have said, "Give me a long enough lever and a place to stand, and I will move the earth." When applied to advertising, leverage means doing more with less. Getting more bang for your buck. Controlling large sums of revenue with relatively small sums invested in advertising. Stacking the odds in your favor. But, if you were capable of stacking those odds, wouldn't you also be running more advertising? A surprising number of companies try to avoid advertising, then force themselves run ads when sales are down or when they have excess inventory. Unfortunately, they're open for business all of those other days, too. And they need customers to come buy what they sell on every one of them. That constant need for additional sales makes advertising the most important thing any of us can do for our own business. What other activity can multiply raw dollars with this kind of leverage? First, measure. Do you know your rate of return? Note your sales levels. Run your campaign. Note any change in your sales levels. Divide increase by the amount spent. This is Return On Advertising Investment (ROAI). If you are bringing in more money than you are spending, your ROAI is positive. Congratulations. Of course if your advertising is not effective, the negative ROAI produces a constant drain on your resources. Is this why you don't advertise often? Do you justify the resulting poor return as "getting your name out there?" How effective is your lever? Is your advertising an investment or a gamble? The primary question you must ask is the rate of your ROAI. Until you know the answer, this is the only question that matters. How well does your current marketing stack up? Are you gambling with your advertising budget without even realizing it? __________ Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about Return On Advertising Investment may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Natural or UNnatural?

Chuck McKay has a few interesting thoughts to share today:

There Is No Hard Sell In Nature

Human beings often hold advertising pitchmen in low regard. Like the “fight or flight” response, that may be instinctive. A zebra doesn't single himself out of the herd so that the lions will notice him. A mouse doesn't run to the center of an open space to tease a cat. It goes against nature for an animal not to duck and cover. Other than with their own species during mating season, most animals do not try to draw attention to themselves. And any animal which would behave in such an odd fashion would be avoided by the rest of the herd. The herd's very survival may depend on not standing too close to anyone hogging center stage. So, is it animal instinct that something is wrong and this one should be avoided when an advertiser thumps his chest proclaiming “We will not be undersold,” or points at the camera and says “I'll get you money for your pain and suffering?” Those particular animals, (genus boastasaurus adnauseaum), frequently make the rest of the herd uncomfortable. They appear to have something wrong with them. Either that, or they think it's mating season.

Do you enjoy marketing theory?

"There Is No Hard Sell In Nature" was one of those ideas which appeared full-blown in the midst of a discussion. It happened this afternoon. I was being interviewed by Darin Burt for an article scheduled for the July issue of HQ magazine. Darin asked "What's the worst thing a business can do to drive away customers?" I said, "He can talk about himself. Worse yet, he can get loud about it. After all, animals in nature don't try to draw attention to themselves." Over the years I've discovered that some of my best insights happen during lively discussion. And, since I'm gathering my thoughts for a new book, it seems to be a good time to start discussing. Do you like to kick marketing ideas around? Think you might care to participate in a small group telephone bull session? We'll be examining subjects ranging from "How do people remember advertising?" to "What happens if you don't deliver a great customer experience?" Let's talk. Drop an e-mail to ChuckMcKay@ChuckMcKayOnLine.com. __________ Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about animal instinct in marketing may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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You Can't Reach Everyone

And the good news, is you don't need to. Chuck McKay writes:

Reticular Activation - How the Human Anatomy Prevents Ads from Reaching "Everyone."

One of the things guaranteed to make copywriters (and to a lesser extent media salespeople) groan is an advertiser who claims he needs to reach "everybody."

No ad can possibly reach everybody. The human anatomy prevents it. If you have a minute, I shall happily explain why.

The Shoppers Mindset

Amazingly, most people are not poised in front of their television sets breathlessly waiting to hear of an opportunity to dump the cash from their purses into Mr. Advertiser's cash register.

Nope. Most people are instead attempting to ignore thousands of radio ads, e-mails, product placements, signs, newspaper and television ads, billboards, matchbook covers, calendars, and the odd Rubic's Cube with some company's logo on it.

Out of self defense human brains are physiologically prevented from paying attention to things that don't directly apply to them. And truthfully, most of what they see doesn't apply.

What does apply to most people? Their kids, plans for the weekend, the empty box of corn flakes, remembering to program the TIVO, getting to the game on time, the in-laws coming to dinner, filing for an extension on the tax return, running late for work, or getting home before “Are You Smarter Than A Fifth Grader?”

They're eager to find information which will solve their problems, and yet, they're not paying attention. They see and hear advertising with their eyes and ears, but they don't consciously notice those ads.

That's because the human brain won't let them. Again, let me explain.


Four Sets of Brain Waves

The synapses of the human brain fire at different rates during four different mental states. They are:

1) Delta – 0.5Hz to 4 Hz – Deep Sleep.
Delta waves trigger release of growth hormone, which helps the body to heal. This is one reason sleep is critical to the healing process.

2) Theta – 4 Hz to 7 Hz – Drowsiness.
Theta states most frequently occur fleetingly as people pass from higher consciousness to deep sleep, or return from it. Theta waves occur during meditation, and have been linked to visual and emotional creativity.

3) Alpha – 8 Hz to 13 Hz – Relaxed.
The alpha state is a highly creative condition of relaxed consciousness. People in alpha state tend to recognize non-obvious relationships. Interestingly, it's also the resonant frequency of the earth's electromagnetic field.

4) Beta – 14 Hz to 30 Hz – Alert and focused.
The beta state is associated with peak concentration, heightened alertness, improved hand/eye coordination, and better visual acuity. During beta state new ideas and solutions to problems literally flash through the mind.

Degrees of Consciousness

The higher frequencies represent more brain activity, and require greater energy consumption. Like every other part of the body, brain activity kicks into higher performance only as necessary. The more familiar the activity a person is engaged in, the less conscious activity is necessary.

Most of us have driven to work only to note upon arrival that we have no conscious memory of the trip. Individuals who drive a lot of highway miles frequently find themselves coming up with good ideas as they drive. Daydreaming while driving is an example of the brain in theta state. It's easily induced by the hypnotic sameness of road markings and sounds.

As long as there are no surprises on the trip, driving to work can also easily produce an alpha state. The driver is relaxed, and the familiarity of the surroundings allow the driver to sing along with the radio, or listen to conversation without planning to respond.

But imagine the car in front of our driver slamming on the brakes. Our driver immediately transitions into a state of heightened awareness, faster reflexes, and instantaneous decision making. This is clearly a beta state of peak concentration.


The Reticular Activator.

At the top of the brain stem, between the medulla oblongata and the midbrain is a collection of nerve fibers known as the ascending reticular formation. Activation of this reticular system is necessary for higher states of brain activity. Think of the reticular activating system as a sentry constantly looking out for conditions which require a conscious response. Anything important or relevant snaps the brain into higher states of consciousness, even from deep sleep.

Anyone who's moved to a home near the railroad tracks has been awakened by a train passing late at night... for the first few nights. While the loud noise is unusual and potentially threatening, the reticular system jerks the brain from deep delta sleep to beta wide awake consciousness. After a few days, when the experience becomes commonplace, the reticular system doesn't even bother to activate, and the resident sleeps through the night.

Mothers recognize their child's cry even in a room full of children. The reticular system catches the familiar tones of the child's voice, activating a beta state in the mother.

And most of us have heard someone call our name in a crowd, only to discover that the caller was trying to catch the attention of someone else with the same name. The reticular system activates a beta state at recognition of the name, and de-activates for the brain to return to alpha mode once the mistake is obvious.

Newspaper readership increases with the addition of a photo, especially when it's a picture of people. Why? Because the reticular activating system zeros in on other people, to see if they're familiar.

Familiar is only one of the conditions the reticular system watches for. It is also ready to draw our attention to unusual, problematic, or threatening conditions. Any of these which appear to be important or relevant activate a beta state. If the conscious mind dismisses this “false beta” as not relevant, the brain returns to a lowered state of consciousness.

Can we plant a reticular activator to trigger a beta mode state at a later time? Yes, we can.

Embed a specific sound and get your listener to recall a whole series of emotions. Law and Order's “Doink Doink” sound when the next scene starts. The sound of Pac Man wilting at the end of play. Duracell's three tone logo. “You've got mail.”

Or embed a visual cue. Since 1997 Liberty Tax Service has done no advertising other than to place people in Statue of Liberty costumes on the street in front of the franchise. From roughly the first of the year until April 15th the Statue of Liberty costume serves as an activator, reinforcing Liberty's function, as well as this location.


Propinquity.

Here's an interesting fact: the effect of advertising is greatest closest to the purchase. And if you think about it, that makes sense. Remember, a purchaser only buys when she feels the gap between what she has and what she wants. If she has an empty box of cornflakes, she'll want more corn flakes. Once she's become aware of her need for more flakes (by pouring the last of the old flakes from the box) she will also become more aware of corn flake advertising.

What a great time to present your message. Advertise your brand on television, or send her a letter, or show her a point of purchase display. Give her a compelling reason to choose your brand while her reticular system is most likely to bring your message to her conscious attention.

But how can you predict when that metaphorical box of flakes will go empty? Unless your business is seasonal, you can't. And that pretty much means you need a constant presence in the marketplace.


How Shoppers Use Media.

We read from left to right, from top to bottom. The eye is drawn first to photographs and headlines, seeking, finding, and sorting through the information on the page. The reader scans in alpha state for anything familiar, unusual, problematic, or threatening. When one of those conditions is noted, the reticular activator pulls the readers attention to the words or pictures, and in beta state the conscious mind weighs the evidence.

It makes no difference whether the reader is considering news stories or advertising. If further examination reinforces the condition, the reader is engaged and stays in beta state. When the content has been read, the scan through the paper continues with the reader back in alpha mode, ignoring most of what he sees.

And though the consumption pattern may differ from left to right, top to bottom, this is how we use all media. People watching TV, listening to radio, or driving past outdoor ads will switch from alpha to beta modes and back as the content triggers the reticular activating system, and is accepted or rejected by the conscious mind.

Your corn flake ad will scream for the attention of someone who's out of corn flakes. The rest of the readers / listeners / viewers (those who don't have an empty box, as well as those who just do not like corn flakes) will either note the ad and quickly return to alpha state, or ignore it all together.

Got it? You'll never reach everyone with any ad. We don't all run out of cornflakes at the same time.

__________

Chuck McKay is a marketing consultant who helps customers discover you, and choose your business. Questions about embedding reticular activators in your advertising may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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