Is your product remarkable?

There is loads of inspirational videos on ted.com. One of my favorites is by Seth Godin, it is about making your product remarkable or simple stand out from the crowd.

Please take the time to watch the video! 

http://www.youtube.com/watch?v=xBIVlM435Zg

So how do you make your product stand out?

1) Figure out your strenghts

2) Figure out what sets you apart from your competitors

3) Work up a few key points based 1 & 2

4) Test your key points (check with a few customers and folks in your inner circle)

5) Adjust according to comments received

6) Go-live in a test environment (like a particular area)

7) Adjust according to feed-back from market

8) Go-live in bigger scale, but not bigger than you can keep up with

Good luck

Want to be a big fish??

The Tour of Denmark is made super popular with simple tactics

A few years ago, did I have the pleasure to be part of the publicity scene at the Tour of Denmark cycling race. The scene were beautiful, the race were shortly after the Tour de France, the weather were perfect and there were a very strong and competitive group of riders, that was eager to win the race.

The race is very popular and attracts large crowds. About 500.000 people show up over this five day event, compare this with Denmark's population of just 5.5M and the numbers become even more impressive.

How do the host Danish Cycling Union succeed in attracting this many spectators?

They made it for the masses. They realized that it is better being a big fish in small lake, rater than a small fish in an big ocean.

Routing the stages through a bunch of small and medium sized cities. Cities which normally, do not attract large sporting event nor have a popular sport team. These small and medium sized cities really gets fired up!

Everybody and their brother show up to take part in the event. Some cities even hires a jazz band and people make a day out of it, it is really fantastic. Because watching the race it self, is not an experience you want to repeat, it really only takes a few minutes for the riders to pass by, and then you sit back and say, what that it?…. But it is not, because you are there for the scenery.

With this strategy about being a big fish in a small lake, really makes sense. Apply a few tactical tools, such as  some local print advertising of the event, press about the facts of the race and the riders, and support and promotion of the publicity caravan , then this really takes of.

The folks at Danish Cycling Union has made their product fantastic, by having a perfected strategy, which a few simple buttons to push.

Not the question is, how can you make your business a big fish in a small lake? Remember there is a lot of small lakes out there.

Jeff Bullas blog rocks

A blog loaded with online marketing ideas 

A reserve of tips and ideas to online marketing.

Are you due to work on your online marketing, I suggest you check out the blog of Jeff Bullas, which is loaded with tips and and ideas, which will inspire you.

There is lots of reading about some of the best facebook pages and the best facebook campaigns and great stuff about other online media such as twitter, google+ and other.

This is all presented in a language which is easy to understand and with plenty of great infographics.

I recommend you check our this blog.

How to Calculate ROI

Why to calculate ROI

You should calculate the ROI on your investments to find out if the are profitable or not. It is a relative simple calculation to do, and the results can be very mind blowing.

There is plenty of examples of companies not calculating ROI prior to a new investments, that proves to be non profitable.

Make sure you make the calculating, if you are not profitable, please reconsider your investment.

How to calculate ROI

Before calculating the ROI of an investment, must you know a couple key numbers, which makes the ROI calculation.

1) You need your gross profit:

Sales - Cost of goods sold* = Gross profit

* cost of goods sold is the cost of the product plus variable expenses. Which typically consists of the following expenses: Materials used, direct labor, packaging, freight, factory supervisor salaries, utilities for a factory or warehouse, depreciation of production equipment and machinery.

2) You need to know the cost of your investment.

3) Gross Profit - Investment = ROI

4) ROI / investment = ROI in %

The higher % the better a project / investment.

The 4P´s

Why use the 4P´s

Marketing your business is no easy job, but if you spend a little time and effort before buying ads and engaging, you will probably achieve better results.

The 4P´s model is great to help you understand the situation of your business needs and in which direction you should move.

The 4Ps are:

• Product (or Service)
• Place
• Price
• Promotion

How to use the 4P´s

Analyzing each of the elements, will help you understand where you should focus your effort and which content you should use.

Below will you find a brief description of each element along with to guiding questions.

Product

When thinking about products you need to consider of your products or new products fits with your strengths and weakness (from your SWOT analysis).

• Do you have the right product to satisfy the needs of your target customer?
• Functionality
• Design
• Quality
• Packing
• Support
• How should you brand your product?
• What should you name your product?

Place

Getting the product to the consumer in best possible way. You should consider where in the value chain your role is, are you a wholesaler, retailer or...

• Where do people shop for your products or similar products?
• How do you access the right distribution channels?
• Can you offer your products in brick and mortar stores or through the web or maybe both?
• What is unique about your distribution platform compared to competition?
• How do you ensure customers get the right knowledge about the product, though salespeople, through youtube clips, or...
• Consider you products exclusivity, higher exclusivity equals exclusive distribution, while low exclusivity equals wide distribution?

Price

Charging the right price, which good for your business and accepted by your customers is tricky. There is a number of pricing strategies to consider.

Cost-plus: Adds a standard percentage of profit above the cost of producing a product.

Value-based: Based on the buyer’s perception of value. The buyer’s perception depends on all aspects of the product, including factors such as quality, brand perception and prestige. This strategy is often used by brand names. Starbucks is a great example of this.

Competitive: Having your prices and the same level as your competitors.

Going-rate: The prices charged by the going rate, means that majority of business can not affect the market rate. Consider renting property and example of this.

Skimming: If there is a product that is hot or hyped in the market, this will allow you charge a high price. Later in the products life cycles will you reduce the prices. Consider consumer electronics to use this strategy.

Discount: When a reduction is advertised.

Loss-leader: Some businesses benefit from having a loss leader to generate traffic. Other products will make up for the loss.

Psychological: Selling your product for an amount which feels like less than it actually is. Example 19,95 over 20,00

You can mix most of the above mentioned pricing strategies, but ensure to match them with your strategy.

Promotion

Promoting your product is about advertising and selling.

• How can you inform people about what you have for sale?

• Explain consumers need your product?
• Know about your business?
• Fill customer needs?

With market research, you will get to know about your customers and potential customers. Such research will help be efficient in the marketing spendings, where it is about being effective, you need:

• A clear message
• Target a specific segment of the market
• Use the right media channel

Next task

Now consolidate all your thoughts and notes into a document, which you hold on to. This document will feed into your marketing plan or media mix and be part of you business plan.

Before you move on the next step, make sure to discuss this with your associates the everybody understand and accept the direction.

When you are due to talk to media about your spendings, you are now equipped with a strong piece of research, which will help them make you effective with your spendings and scoring a nice MROI.

How to make SWOT analysis

Why do a SWOT analysis?

A SWOT analysis is very useful tool, when making the business plan or examining the status of the business or a project.

SWOT refers to strengths, weaknesses, opportunities and threats. A SWOT analysis is a process where the management team or project team identifies the internal and external factors that affects the business’ performance.

The analysis looks into both your own business, as well as your competitors and the environment around your business. You analyze the company’s strengths and weakness from an internal point of view, while the opportunities and threats are external factors. At the end you make a conclusion taking all four aspects into consideration.

A good analysis can help your business or project to become effective. Good advice is to do a SWOT on every new project that touches the business strategy and do a general follow up every 6-12 months, to track development and react to risk and new opportunity.

How to do a SWOT analysis?

Start with a brainstorming session with key stakeholders of your business or project. The group of stakeholders should have a discussion about the four topics and ask the questions listed below:

Strengths (internal)

• What is your business doing better, than anyone else?
• Which key advantages does your business have?
• How do people in the markets see your strengths?
• Which elements mean, you are getting the sale?
• What is unique about your business?
• What advantages does your business have compared to competitors?

Weakness (internal)

• What do customers / market complain about?
• What do customers / market see as your weakness?
• What makes your business loose a sale
• What should you avoid?
• What can be improved?

Opportunities (external)

• Which trends are you aware of?
• Which opportunities do you see?
• Are you utilizing all your strengths?
• Is there a particular area of business, which has been overlooked?
• Any change in how you can utilize technology?
• Any changes in the political system?
• Any changes in the social environment?
• Any local events to participate in?

Keep in mind the often do opportunities appear when the business environment / playing field changes. Just like the financial crisis.

Threats (external)

• Which challenges do you face?
• Any changes to your product or service?
• What are your competitors up to?
• Is the use of technology threatening your business?
• Can any weakness hurt or threaten your business?
• Any trends or changes in political / social environment?

Conclusion:

Only you can write the conclusion. Consider it as an executive summary. Be short, be accurate and deliver the direction of how to move forward.

Other things to consider:

• Ensure you only accept precise and accurate statements, like avoiding statements like “value for money”.
• During the brainstorm session will many topics appear, filter them and prioritize them.

Strengths:	Weakness:
Opportunities:	Threats: