Being a parasite (not quite the most beautiful word to use!) is not quite ok, but if it’s about saving lots of money for your company, it’s worth trying.
Here is a simple method of being a parasite on your competitor, who is advertising massively.
First, I should make a parenthesis and say this simple technique refers to the FMCG (fast moving consumer goods) area.
Second, the condition is that your product sells in small shops and stores, or middle-size supermarkets, where customers are in direct contact with sales-assistants.
The thing is that sales assistants are human like all of us. The majority of sales-assistants and dealers are usually driven by laziness…sorry for being so direct…they are driven by “time-is-money” principle, which in their situation means:
> more sales -> more profit -> less effort, if possible.
From my practice in direct sales, sales guys sell well the product that they know well. Thus, they are able to handle complaints, objections. They are able to explain in detail all advantages of the product and can give valuable tips for use of the product. They are also ready to give an answer when asked “Which of these would you prefer yourself?” This is what I call “less effort”.
Once familiar with the product and its properties, the salesman already knows for him/herself, which product comes upfront.
So, facing massive a massive advertising campaign from a competitor, it’s probably wise to get into a multi-level training for salesmen and dealers.
After all, advertising reaches potential customers beyond stores, shops and supermarkets. Once they get in, they meet sales people/dealers, who already decided that your, and not your competitor’s, product is easier to sell.
So, good luck with parasitizing on the competition’s ad budget 
Tags: advertising budget, business, marketing, sales
March 12, 2008 at 07:00 |
Been reading for a while now. Just wanted to say good job.
Chris Tackett
March 12, 2008 at 08:14 |
Thanks, Chris. I appreciate it.
March 12, 2008 at 14:40 |
In my not so distant past I was the Director of Operations for a company that did retail electronics. I often searched areas for new opening based on other “giant” companies like Best Buy and Radio Shack being in the vicinity so we could capitalize on their advertising budgets. There are some downfalls here, but if you can compete with price and can maintain a better stock level (a great advantage – as the big-boys seem to always be out of stock on the more popular items) you can do quite well. You do not have to be cheaper just stocked better with both merchandise and employees/customer service!
Benny
Yattitude.wordpress.com
March 13, 2008 at 17:00 |
Saw this blog and thought it might be up your alley. http://www.kacperwrzesniewski.com/
Hope you’re having a kickass day!
March 14, 2008 at 08:18 |
Benny, thanks for passing by. I agree that being a parasite on your competitor is not always perfect, as there is trouble with that, too. If, as you say, you can afford better prices and better logistics as well as convincing training for salesmen, you might succeed.
March 14, 2008 at 08:30 |
persistentillusion, thanks for the link. There is interesting stuff there. Especially, analytic posts.
But there are also things, that really piss me off (it refers typically to this kind of blogs): I blog for the purpose of sharing my ideas and thoughts with people and read their thoughts and ideas. In my opinion, this stream of exchanging information should not be disturbed by any attempts to moneticize the blog with AdSense, blinkering and blinding banners and various commercial links.
That’s my whim. That’s why I read your blog with pleasure.