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Tag: Strategy

  • 4Ps & 6Ps – Marketing Mix

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    Marketing mix is one of the major concepts of marketing. According to the traditional base, there are 4Ps of marketing. These are referred to as the marketing mix. But in the modern use of the term, many more Ps have been coined. People have found six, seven even eleven Ps of marketing. In this article we will talk about the 4Ps and 6Ps.

    Four Ps

    The four Ps of marketing mix consist of Product, Price, Place and Promotion. Product means the thing that you are selling. It can also be a service like the tourism industry.

    Price means the rate at which the product is being sold. A number of factors are involved in determining the price of a product. These include competition, market share, product identity, material costs and the value customers perceive of a product. In fact prices are also determined by competitor’s products. If the competitors have the same product, then the price of a product will go down.

    Place refers to the real or virtual place from where a product can be bought by a consumer. Another name used for place is called “distribution channel”. Promotion is the way that a product will be communicated to the general public. There are four distinct ways in which this might be done- ‘point of sale’, ‘word of mouth’, public relations and advertising.

    Somewhere down the line people felt that four Ps were not enough for marketing mix. It had to face a lot of criticism mainly on the grounds that it was extremely product focused. This was not enough for the economy which is based a lot on services as well nowadays.

    Another criticism that marketing mix has to face is that it does not have a ‘purpose’. So it should be looked upon as a tool that sets marketing strategy. Another criticism of marketing mix is that it does not discuss customers. This is why the concept of Six Ps of Marketing mix has achieved relevance.

    Six Ps

    The six Ps contain all the four Ps of marketing – product, price, place and promotion. In addition, it contains, two new Ps, namely People and Performance.

    People include the potential and current customers of the business and how they make their purchase decisions. Market segmentation is also a part of this. It contains the features of market segmentation and the most attractive segments of this market.

    The next P is Performance. This implies the performance of the business. The financial and strategic objectives of the business are dealt with here. It is also seen whether these objectives are achievable and realistic or not. The metrics of financial performance are also seen and appropriated in this division.

    The six Ps of marketing mix help to overcome the criticisms of the four Ps. Hence the 6Ps serve to be a better alternative as compared to the 4Ps of marketing mix.

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    Source by Pepik Smith

    Views: 0

  • Business Partners & Marital Partners Will The Marriage Survive – Part II

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    In the last article, we connected by saying that keeping your business and personal relationships separate is very important to the survival of both your business and your marriage. In this article we will talk about how to achieve this goal.

    One of the most important ways to accomplish this is to set up distinct business hours, and when they are over, don't discuss business, concentrate on your relationship. It is difficult, but make a concentrated effort at it. Confine your business discussions to business hours or set aside a specific time to discuss the business.

    For example, take the last half hour of the day, and discuss the business day; Any suggestions you have, what was accomplished, what needs to be done tomorrow, during the week, how are the monthly goals you set at the beginning of the month progressing. Remember to couch any criticisms or suggestions in a positive vein. Think of how you felt in the work situation and how supervisors dealt with you when making suggestions. Negatives only cause resentment. They do in the corporate arena, and even more so, when dealing with a spouse you must live with 24 hours a day. Be sure to set aside time for each other-go for walks, out to dinner, or just for a drive with your spouse. Do not discuss business.

    You should have outside activities that are not business related. If not, join a group that interests you. It will allow you to meet with others who are not connected to your business. Running a home-based business can be very lonely; getting away from the home, and having outside interests is imperative.

    In addition to the problems inherent to couples running a business, starting a home-based business presents its own set of problems and questions. Before you start be sure to ask yourself the following:

    1. Are you self-motivated? Organized? Able to prioritize your work? You will no longer have a supervisor or a boss to tell you what to do. You will be the decision maker. You will have to motivate yourself. One way to accomplish this is to use a To Do List and stick to it. In addition, set definitive business hours, and stick to them.

    2. Will you be able to deal with the isolation? You will no longer meet people in the halls, congregate around the coffee pot, or take a break to talk with your co-workers. To combat the loneliness and isolation be sure to join groups that meet outside the home, or schedule luncheons with friends and associates.

    3. Write up a business plan. Be sure the business is something that interests you. You might want to start on a part-time basis, and grow from there. Research the business carefully, make sure there is a market, and the competition is not overwhelming.

    4. Be sure you have at least six months living expenses set aside. This will give you the time to work through the marketing strategy outlined in your business plan, and avoid bad marketing practices. In addition, if changes need to be made, you can do so, without monetary concerns becoming an issue.

    5. Be sure your office space is located in a separate room or area of ​​your home that offers the least distractions. A separate office is best, especially if you are meeting with clients. Remember to always present a professional appearance.

    6. When will you do your regular household chores? Make up a schedule of when you will deal with them. Some individuals find getting chores done before the start of the work day is best. At the end of the day, close your office door and then deal with the remaining household items that need to be handled. Time management will be a very important factor in running a home-based business.

    7. For husband and wife teams, it becomes imperative to have some form of disability insurance for each other. Remember, even though your partner may be your husband or wife, he or she is still your business partner. An accident or illness to one of you can severely impact the operation of the business.

    A business is only as good as you and your partner make it. It takes a lot of dedication, time and energy to run a business, whether it is home-based or not. It can be a very rewarding experience. Think carefully, and ask yourself a lot of self-searching questions before you begin.

    Copyright 2000, DeFiore Enterprises

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    Source by Sue And Chuck DeFiore

    Views: 0

  • The Importance of Proper Sales Techniques

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    The success of any business can be directly related to the quality of its staff and the ability to meet any consumer demand. When your business struggles in this regard it helps to identify the areas of inconsistency which can result in the loss of consumers due to employee negligence. To avoid this unfortunate turn of events with your own company, it is necessary to identify the many factors influencing the importance of pursuing proper sales techniques.

    Factor I: Building Consumer Relationships

    One of the greatest mistakes amateur sales associates make is focusing on the drive to make a single sale form a single individual. This short sighted strategy may help in improving sales numbers in the short run but will provide no value with developing future success. The first factor influencing the importance of sales management skills is found with building consumer relationships overtime. Whether you run a store or an online website, pursuing a relationship with your client will help to secure greater sales as well as develop the best form of marketing, positive word of mouth.

    Factor II: Enhancing Selling Ability

    If you were to provide any employee with the opportunity to work with a consumer eager to invest in a product you will develop a high level of sales success. The true skill or value of an associate is to have the ability to work with consumers who may not have this interest yet still make a purchase after working with your employee. The selling skills of an employee staff often represents the financial success the company has displaying this factor of importance with enhancing selling ability.

    Factor III: Problem Solving

    When a customer discovers a problem with a good or service it is often easy to lose their business to a competitor in a short period of time. If a customer contacts your company with a problem it creates the possibility of salvaging your relationship by resolving the problem and enhancing consumer satisfaction. When your sales staff can utilize the sales management skills of problem solving it will boost your business success, marking the importance of this factor in relation to proper selling techniques.

    Factor IV: Revenue Development

    The final factor of importance identifying the need for proper selling skills is seen with the value of revenue development. Every business relies on the resources of revenue development so the elements of building consumer relationships, enhancing selling ability and efficient problem solving will all help in keeping consumers and meeting this high demand factor.

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    Source by Peter McKeon

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  • The 7-Point Trading Plan Template

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    One of the first things beginning traders are told to do is to create a trading plan that will spell out a trading strategy and a list of rules to follow in implementing that strategy. The only problem with that advice is that beginning traders don’t really have any trading experience, and thus are lost when attempting to craft a trading plan for their trading.

    Another problem with trading plans is that beginners are instructed to treat their plans as gospel and are told not to deviate from them. This prevents traders from adapting their strategies and rules to improve their performance, an essential step in every trader’s learning curve.

    Instead of a rigid document to be created early on in your trading career and never to be changed, you should instead view your trading plan as a living and breathing set of guidelines, capable of being modified as you gain trading experience. This article will teach you how to create a trading plan that will guide your trading efforts without stunting your progress.

    The 7-Point Trading Plan Template

    In creating your trading plan, here are the items you should include:

    1. Markets – What markets will you focus on? Be as specific as possible – if you’re trading stocks, what types of stocks will you concentrate on?

    2. Timeframe – How long will you hold your positions for? Will you be a day trader focusing on trades lasting a few minutes, or a swing trader holding trades for a few days?

    3. Time Period – What times of the day will you trade? You may have outside responsibilities that prevent you from trading an entire trading day. Pick which times of the day best suit your style.

    4. Trading Style – How would you characterize your trading style? Perhaps you are a momentum trader focusing on trending stocks? Or maybe you specialize in a particular sector? Again, this can and will change as you gain experience and learn from your results.

    5. Risk Management Rules – This is an absolutely essential and often overlooked component of your trading plan. How will you manage your risk, both on a per-trade basis and overall? You should have a “stop trading” point which is a fixed dollar amount that will force you to stop trading if you’re down by that much.

    6. Mentor – Who do you follow and learn from as a teacher? Attempting to learn trading all by yourself is not only lonely, but foolish as it ignores the hard-earned wisdom of other traders. You can either repeat the mistakes of other professionals and hope to eventually learn the lessons and techniques that they’ve learned, or you can simply learn from successful traders and bypass those initial frustrations.

    7. Learning Process – How will you structure your learning process as a trader? What steps will you take to ensure you’re always getting better? How will you structure your trading journal?

    Trading Plan Example

    To show you this trading plan template in action, I’m going to fill it out according to my own trading style:

    1. I trade the U.S. stock markets, focusing on volatile stocks with sufficient volume. These stocks are typically the focus of news items and are thus “in play.”

    2. I am a day trader and hold my positions anywhere from a few seconds to a few hours. I’m primarily a scalper and am looking to take advantage of short-term imbalances between supply and demand. I will stay in a trade as long as I can identify a supply/demand imbalance.

    3. I trade throughout the trading day, although I focus most of my activity at the open and close of the trading day.

    4. While I have multiple styles, I would characterize myself primarily as a momentum trader that relies on tape reading to identify favorable risk/reward situations to enter in the direction of a trend.

    5. I’m fanatical about managing my risk, both on a per-trade basis and overall. Every trade I enter has a predefined stop-loss and I have a daily stop-loss to stop trading when I’m having a rough day.

    6. I’ve had a variety of mentors throughout my career, and now I talk with a select group of traders at my firm with similar trading styles.

    7. I review every single trade I make, always looking for ways in which I can improve. This may be as simple as cutting down my risk when trading certain stocks or altering my execution patterns.

    Your trading plan can be as simple as that, just a series of statements answering those 7 questions. You also shouldn’t spend too much time creating your trading plan as it will frequently change throughout your career.

    Summary

    Your trading plan will crystallize exactly what you’re trying to accomplish, but don’t view it as set in stone. Rather, your plan will grow and change as you gain experience and develop your own trading style.

    Your trading plan also doesn’t need to be a complicated document spanning multiple pages. You simply need to define what markets you’re going to trade, how you’re going to trade them (how long you’ll hold positions, what times of day you’re going to trade, and your trading style), how you’re going to manage your risk, and how you’re going to continue developing as a trader. By clarifying and explicitly stating those 7 key points, your trading plan will serve and support you in your trading career.

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    Source by Matt A Nadell

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  • Ten Ways to Strengthen Your Reading Habit

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    Most people wish they read more. It is an activity that is both fun and enlightening. It can help us be more knowledgeable and successful. However, it is an activity that many people don’t engage in very much. According to the 1999 National Household Education Survey, 50% of the U.S. population aged 25 and over read a newspaper at least once a week, read one or more magazines regularly, and had read a book in the past 6 months. What does this mean? It means that 50% of the population hasn’t read a book in the last six months! Looking at the other end of the spectrum, research shows that if you read ten books a year, you are in the top few percent of all people as readers. Simply stated, it doesn’t take much to be well read, but we do need to know how to get started. The following are ten suggestions to help you strengthen your reading habit – ways to find and make more time for reading. 1. Always have a book around. Don’t go anywhere without reading material. Keep magazines or short stories in your bathroom. Always have something in your briefcase to read. Keep a book(s) by your bed. Having things available makes it easier for you to steal otherwise lost moments. 2. Set a reading goal. Determine how much time you want to spend reading, or how many books you want to read over time. Your goal might be a book a month, one per week, or it might be to read 30 minutes a day. Start out with something attainable but still a stretch. As your habit builds, you might set higher goals. Setting a goal is the first step towards reading more. 3. Keep a log. Keep a list of the books you have read, or keep track of how much time you read each day. You might keep these lists in your journal or your day planner. My son’s log is on our refrigerator. My list and log are kept on my computer. It doesn’t matter where you keep it, just do it. 4. Keep a list. Make a list of things you want to read in the future. Ask your friends and colleagues what they are reading. Watch for recommendations in the newspaper and magazines. Once you start looking for good books, you’ll find them everywhere. This is a great way to keep your enthusiasm up. By knowing what great stuff you want to read, you will reinforce your reading habit. 5. Turn off the television. Many people say they just don’t have enough time. Television is one of our major time consumers. Make your television watching more conscious and less habitual. There is nothing wrong with watching television shows you really enjoy. Where the time gets lost is turning it on, and scanning to find “something to watch.” Those are the times to turn it off and pick up your book! 6. Listen when you can’t read. Use your commute and other time spent in the car to listen! There are great audio versions of all sorts of books. Whether you want to “read” fiction, the latest self-help or diet book, it is probably available on tape. Don’t get locked into the idea that you have to read it – listening to the book still gives you the experience, ideas, and imagination that reading a book can. 7. Join a reading group or book club. Reading groups typically meet once a month to discuss a book they have all decided to read. Committing to the group provides a bit more impetus to finish the book, and gives you a great forum for discussion and socialization around the book’s themes. 8. Visit the library or bookstore often. You have your list, right? So you’ll have some ideas of what you are looking for when you walk in. But there is more to be gained by walking through places where books reside than just to make a transaction. Take time to browse! Let your eyes find things of interest. Let serendipity happen. Browsing will feed your mental need to read, and give you plenty of new things to read. 9. Build your own strategy. Decide when reading fits your schedule. Some people read first thing in the morning, some before bed. Some decide to read as they eat their lunch. And there is more to your strategy than just timing. Make your own decisions about reading. It is OK to be reading more than one book at once. It is OK to stop reading something before you finish if it isn’t holding your interest. It is OK to skim the book, getting what you want or need, without reading every page. Determine what works best for you, develop your own beliefs and ideas–then make them work for you. 10. Drop Everything and Read. My son’s fourth grade class has DEAR (Drop Everything and Read) time. When the teacher calls for it, that’s just what they do. They read now. That is my last piece of advice for you. Do it. Just get started. Make it DEAR time. Now.

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    Source by Kevin Eikenberry

    Views: 0

  • Should I Still Be Saying "I Love You" To My Separated Spouse?

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    When you are in the middle of a separation that you never wanted in the first place, it can be tempting to want to remind your spouse that they are still married to someone who still loves them very much. I know first hand that there can be a real worry that if they are outside of your presence, they will begin to forget what they loved about you. Or they will find that the phrase “out of sight, out of mind” is actually true.

    So it may be your normal inclination to tell your separated spouse that you love them every time you talk with or see them. And this is absolutely fine – so long as you are getting an enthusiastic response in reply. Unfortunately, this is not always the case.

    A wife might say: “I know that it sounds desperate and needy. But I can not help it. Every time I talk to my separated husband, I tell him that I love him right before we hang up. I have done this for all the years that I have known him and old habits die hard. At the beginning of our separation, this seemed OK. But the last couple of times, I’ve noticed that he has hesitated before he gives a response. Last night, he didn’t say anything in response. I don’t mean to be dense. Obviously, he probably thinks that I am doing something wrong or he doesn’t want to hear me tell him that I love him during the separation. But not saying it feels like a lie. It feels like playing games or holding back. Am I supposed to pretend that I don’t love him? Because I find that ridiculous. I do love him. And it seems silly to me that I am not supposed to say it every day in the same way that I have for many years. Do I have to stop?”

    That is really up to you. I would never tell someone what to do during their marriage or during their separation. I can tell you what came to be my opinion as the result of a similar situation that I was in. But, I know that all situations are different. So I can’t say that what worked for me will work for you.

    But, during my own separation, it eventually became very clear that my husband was not receptive to me acting in the same way that I did while we were still happily married. When I tried to act as if we were any other married couple or that nothing was wrong, he would act distant or he would start to avoid me. If I pushed, it would get even worse and I would have to work very hard to even get him to take my calls. Frankly, there were times when I could almost literally feel him wince when I told him I loved him.

    As hard as it was to accept, I started to realize that if I didn’t change some things, I might be making this situation a whole lot worse. So I made a conscious decision to back off some. Did this mean I didn’t love my husband? No, if anything, I loved him just as much if not more. But I knew that if I was going to have a chance to maintain that love, I was going to have to find the strategy that brought him closer to me rather than pushing further away.

    And when I tried to push my love on to him, this definitely made him pull further away. So, I toned down my demonstrations and declarations of love. I told myself that this was only temporary, but it was difficult. Still, I knew what was most important was my long term goal and not my declarations of love in the moment.

    My backing off did eventually make things better because it eventually made my husband more receptive to me again. And his being receptive to me meant that we got to spend more time together – which never would have happened if I had continued on with my pushing.

    I can’t tell you what will work in your own situation. I can only suggest that if you notice something not working, then it sometimes makes sense to test out something else – if only once. Perhaps next time you talk to your husband and it is time to sign off, you might try something like: “tonight, I’m not going to insist that I love you, even though I do. I sense that it makes you uncomfortable. But I didn’t want you to think that I was angry or anything. I’m just trying to respect your wishes and not push.”

    At this point, your husband could reassure you that the loving phrases are fine. Or, he may not say anything – in which case his silence speaks volumes. If you do decide to back off and you find that the next time you talk, he seems more comfortable, then you may speculate that backing off a little has helped.

    I know that it might seem weird and almost dishonest to hold back with your own spouse. But a separation can be a very fragile time in a relationship – especially when one spouse has asked for space or isn’t sure what he wants. It become my opinion that if backing off a little is what it took for my husband to eventually be available to me, I was willing to pay that price at the time. Because I knew that it was part of a long-term strategy that was going to mean that I wouldn’t have to hold back once we reconciled.

    Today, I tell him that I love him all of the time, so holding off was worth it to me. And I believe it helped. But every situation is different. In some situations, both spouses are perfectly comfortable with still saying they love one another. And that’s wonderful. But it was not my reality. Still, if every one is happy, then I don’t see any reason to hold back.

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    Source by Leslie Cane

    Views: 0

  • 5 Customer Survey Questions

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    Periodically, it makes sense to address your customer feedback mechanisms and receive some actionable, lived-experience insight into your operation’s strengths and weaknesses. Business leaders need to learn if the delivery of products, services, or other operational processes might be simplified. They need to know what customers would like to see more of. The smartest way to begin the customer feedback process is to decide what you want to know and what purpose that information will serve.

    Are you trying to develop new products or services, so that you’ll be able to give customers what they want before they know they want it? Or is business dwindling and you’re in damage control mode, attempting to win back customers? Some market research questions are best explored face-to-face with customers at a conference table with a leadership team member or two and maybe a front-line staff member present as well.

    Below are five draft survey questions for you to customize. Some apply to customers and others, to company leaders:

    1. What challenges or goals motivate customers to contact your business?

    2. What solutions to customer problems is your organization equipped to supply?

    3. What solutions are offered now? Might you add, re-tool, or drop any?

    4. What do customers most often hire you to provide or do?

    5. What do you (the business leaders) do next?

    Questions 1 and 4 pertain to customers. Questions 2, 3 and 5 refer to business strategy and should be addressed in-house, once you’ve spoken with two or more customers to figure out Questions 1 and 4.

    How you conduct the survey deserves some thought. It might be best for Solopreneurs and small business owners to convene a group interview that encourages comfortable and candid conversation. Larger companies might prefer to host a survey interview that’s facilitated by an outside market research firm.

    Question 1: What are the primary challenges facing (the customer’s) organization?

    Start with a “How are things going in your office?” question, or inquire about their next big project or objective (whether or not it would involve your organization). Find out what’s going on and let the customers talk.

    Questions 2 & 3: Which project or problem do you most want to take action on? How might that be done?

    Given your in-house expertise and resources and guided by the probability that the customer will contact your business to provide needed solutions, what additional customer projects might you be asked to take on (or what can you cleverly position your business to be hired to do)?

    Can your organization successfully deliver the desired outcomes of projects that are on your customers’ to-do lists? Can you discover how your customers are currently managing those challenges? Do your customers do business with any of your direct competitors? Do your customers have projects that are not getting resolved because s/he isn’t sure what to do, or there’s no budget to do the job?

    Question 4: Have our company’s solutions satisfactorily resolved customer needs or challenges?

    What projects have you been hired to do, or what products and services have been purchased by survey participants? What types of projects is your organization most often hired to do, or what are the best-selling products and services? How do customers feel about your company’s performance—is your ability to deliver services trusted and dependable? Do customers send referrals to your business? Does it seem that you could potentially receive more business from any of your customers?

    Question 5: What do you do next, based on customer responses?

    Here is the judgment call for you and your team. The success of the survey is in how you interpret the data received. What can your organization realistically do, based on the customer responses to Questions 1 and 4? Are there opportunities and strengths within your organization on which you might capitalize, as noted in questions 2, 3 and 5? What needs to be improved or discontinued?

    Within a week of the survey, tangibly thank your customers for participating. You may want to send a gift basket, or offer a 15% discount on their next order.

    Thanks for reading,

    Kim

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    Source by Kim L. Clark

    Views: 0

  • Top Network Marketing Company – Why Are the Products So Expensive?

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    I’m sure you’ve heard this question before, Why are top network marketing company’s products so expensive?

    This is one of those ever-present questions that networkers and direct sales people will continue to encounter (probably) forever–and there’s always more to it than meets a simple answer.

    One key is not to side-step it. There are good and genuine reasons for legitimate, premium-priced products–and of course there are over-priced ones as well. Honesty is best, as always, and I’ll endeavor to give you the general truth with my answer to the question.

    Special Products at Special Prices

    First, the products available through top network marketing companies sales and distribution model are mostly what are called “specialty” items. They are higher priced products to begin with, having more costly ingredients and more complex designs or formulas; they are simply more expensive to make and package. Some well-known non-network marketed examples are Clinique makeup and fragrance products, Apple computers, iPods and iPhones, Armani clothing, Mercedes and Lexus automobiles.

    Unless you’re dealing with a scheme or a scam, these premium products outperform their cheaper, off-the-shelf counterparts, giving consumers more and better benefits. Since they have greater value, they cost more.

    If these products are being outsourced by the networking company (produced by a “third-party” vendor/supplier), they tend to be manufactured in smaller production runs that do not allow for all the optimal low-cost advantages of buying and making in the high volumes mass-marketers enjoy. The manufacturing processes are more complex and exclusive. The profit margins are higher. This results in a higher quality product with more attention to detail and quality control.

    The reason manufacturers and marketing companies select network marketing and direct sales is because these higher-priced products are of higher quality, and they therefore require special methods of distribution and sales.

    Simply put, they cannot compete with the lower-priced, lower quality “commodity” products, which are sold based mainly on discounted mass-market pricing and brand awareness alone. Think Wal-Mart and Costco.

    Specialty products are “education-intensive.” They need greater explanation; for example, what formula, ingredients and/or processes makes the product more expensive than those mass-market goods available through direct response marketing (such as the Internet and mail-order) or retail chain store sales. Many require demonstration.

    Mass-market products depend on advertising, promotion and merchandising at “point-of-purchase,” all of which are required to get consumers’ attention, let them know the product exists (to create “trial” especially if it’s “brand” new), and to give them enough compelling reasons to purchase and keep on purchasing.

    Going head-to-head with nationally advertised products, many to most of which are heavily discounted and sold at the lowest price possible, is a tough game for just about all smaller businesses to win. Imagine trying to sell vitamins or nutritional beverages or “prestige” cosmetics against a major manufacturer selling through Wal-Mart, or a natural toothpaste against a tube of Crest® through Kroger or Publix supermarkets.

    Specialty products are perfect for the person-to-person, information-rich education, demonstration and service oriented methods of network marketing.

    And that’s where the important second aspect of network marketing’s “higher price” comes in: the added value which you as a “distributor” add to the specialty products you sell.

    Added Value Added

    Network marketing and direct sales representatives add significant value to the product they sell and they are well paid when they do so successfully.

    We reach consumers with the awareness of new products and services that ads and merchandising–no matter how persuasive or promiscuous–would not be able to reach out and touch. And by virtue of our one-on-one, personal relationship with these buyers, we appeal to them with a level of trust and service no mass-market, retail product advertiser could hope to compete with.

    The extraordinary level of service Network Marketers provide is not available when buying through mail order or retail outlets. It is a real and tangible benefit, part of the product’s value–and its price.

    For example: Someone tries a network marketing anti-aging health product. It’s personally presented for them–either in person or via mail–with a host of educational material about the product: scientific studies, article reprints, even books or tapes explaining how the product was made, how to use it, its unique features and its benefits.

    Within one to two days, the network marketer again contacts the person to follow up, asking how they are doing, checking to see that their customer is following use directions properly, make recommendations, etceteras. These service calls continue daily, bi-weekly or weekly until the customer is satisfied and happy.

    The network marketer will also continue to send informative and educational material such as updates from scientific literature. He or she will also let the customer know about other products the company offers that this particular customer with his or her unique needs and wants might also enjoy.

    This is an extraordinary level of service that is a real and tangible benefit for the consumer. This kind of personal and knowledgeable attention is not available when buying through the Internet alone, or mail-order or most all retail outlets. It is one of the things network marketers are paid for and it is part of the product’s value–and its price.

    Are there cases where the above education and service are not offered? Of course.

    Are there products that do not have special ingredients or qualities that support a higher price? Sure.

    And are there times when a network marketed product is simply more expensive to pay for the multiple-level commission structure? Yes.

    Back in the early 1950s, a dog grooming service was opened in New York City to serve people living in the exclusive Park Avenue, 70th and 80th Streets area. They charged $25 to shampoo and clip a dog. They had no customers. Then they jacked-up their prices to $250 per visit–and were an instant success. The Cadillac Seville, when first introduced in test-market showrooms priced at under $10,000, bombed; at $14,000 the very same automobile became an instant best-seller.

    Value is a perception. The relationship between quality, benefit and price, i.e., value, is in the mind of the consumer-beholder. Businesses price goods and services according to what the market will bear. Successful marketers come up with just the right mix of value-benefit-price.

    The majority of network marketing direct sales products are of the genuine higher-quality variety, not available in stores, special in ingredients, design and making.

    Most offer the convenience of in-home or on-line ordering and to-the-door delivery. They are also special in terms of…

    Marketing and Customer Service

    The network marketing “sales person” adds value to the product through his or her education, service and sales to the customer.

    All of this has its price. And according to consumer trends and the explosive growth of network marketing direct sales companies and their products worldwide, more and more people every day think it’s worth it.

    What’s the truth about the price of products offered through network marketing? Are they too high? And if so, why?

    The full answer to this one is complicated. If you need a short one, mine is:

    High? Usually, yes.

    Too high? Sometimes… yes, but generally no.

    So, if they are high, why? Let’s start with looking at what kind of products we’re really talking about here.

    The Truth is, Specialty Products Cost More

    Network marketing is predominantly a “specialty products” business: The products we sell most often tend not to be the type you’d find in supermarkets, drug stores or any other mass merchandiser. They are not the kind that combines the lowest possible price for the least acceptable level of quality. For a conventional retail parallel, look at the products in a natural or health food store, beauty salon, boutique or upscale department store.

    Specialty products cost more to make. The ingredients are unique and high quality and production is low quantity–the amounts manufactured usually are not great enough to take advantage of the economies of scale enjoyed by big-time, high-volume, mass-market producers. So these products more expensive–both to make and to buy.

    Also, specialty product makers usually cannot depend on major advertising to increase sales: they don’t have that kind of money. So they have to use more expensive forms of distribution, such as small, individual retail outlets whose profit margins are higher than mass-market stores and chains.

    Profit Margins and Markups

    Here’s an example: a discount chain drug store might be able to markup a bottle of vitamins that normally sells for $3.00 wholesale for less than the normal 33 percent retail profit margin. And, because they buy in large volumes, they’ll get the product for less than $3.00 to begin with.

    A natural or health food store might buy that same product at the full $3.00 wholesale price, and use a markup of 50 percent to get their full 33.3 percent retail profit margin.

    To the consumer, buying at retail, here’s the difference: $3.99 at the drug store and $4.50 at the health food store.

    And then there’s “what the traffic will bear.”

    There are sexy boxes of imported chocolate that go for $38.00 each, and poly-bags of 50 mini Reeses Peanut Butter Cups you can get for less than $3.80. If your taste tends towards expensive, you’ll generally pay more–in “margin” percentages to middle-people and in total dollars.

    Let’s look at a comparison of one single product offered through the conventional manufacturer-to-retailer distribution system and the exact same product sold through network marketing.

    $$$ From Conventional Manufacturer to Consumer

    We know specialty products cost more to make; again, the ingredients are unique and high quality, and the production is low quantity, so they are simply more expensive.

    Manufacturers speak of “Cost of Goods” (CoG): that’s the figure that a product costs the company to make, including overhead, ingredients, packaging and labeling, sales commissions (such as broker’s fees), etc.

    The very minimum a manufacturer needs to sell that product for is double, or a 50 percent margin. Considering that most competitive businesses operate on a six percent pre-tax profit, that leaves them 44 percent to pay for everything else. So, the $2.00 CoG product they make, they sell for $4.00.

    Now, some manufacturers sell direct to retailers–not many, but a few do, and when they do, they’ll take a higher profit margin to pay for the Cost of Sales (CoS).

    However, most manufacturing companies deal through distributors, who charge for warehousing, shipping and selling the products to retail stores. Normal wholesale is a 25 percent markup, which you get by multiplying the purchase price–plus freight if not included–by 1.33. So, our $4.00 item would be sold by a wholesale-distributor to the retailer for $5.32. (Again, plus or not freight costs which can run 10 to 15 percent additional.)

    To achieve a 33.3 percent profit margin, the retailer has a 50 percent mark-up–or higher. Our $5.32 product ends up on the shelf at $7.98.

    Now, this is the minimum scenario–not what normally happens except in the more strongly competitive markets. It’s not the least bit unusual to find the manufacturer selling that $2.00 CoG product for $5.00 or $6.00… the distributor working on 35 percent instead of 25 percent… and a retailer – especially from a specialty market segment–look for a 50 percent profit (i.e., a 100 percent markup), instead of “only” one third.

    And if all of that were true, the retail price of the product through that sales and distribution system would be more like $14.95.

    $$$ In Network Marketing Direct Sales

    Let’s work this one backwards (because that’s how most of the numbers are figured for your commissions).

    If the networking company’s product sells to consumers for $15.00 it will have an average retail commission to the networker of from 20 percent to 40 percent. So, using a 30 percent retail commission, the company’s “wholesale” price to the mlm distributor will be about $10.50.

    Let’s say that your company pays out a full 50 percent in “downline” or organizational commissions. That means that the company’s lowest from-the-warehouse price for the product would be half of wholesale, or $5.25.

    That’s right in the ballpark for specialty manufacturing, distribution and sales.

    It’s a Question of Value

    There is also a greater value, beyond the “specialty products” issues of ingredient quality, cost of manufacture and so forth and that’s the education, information and service delivered by the person-to-person distribution network.

    Learning the product’s proper use, additional uses, history, all about the ingredients, etceteras, is all part of its value. And products offered through word-of-mouth network marketing have more of this “added value” than any others.

    This last point begs the question:

    “Are products purchased through network marketing higher priced to make up for the compensation or commission payments to distributors and their networks?”

    Can they be? Yes.

    Are they… usually? No and Yes.

    In an authentic, intelligent, sincere and sensible network marketing direct sales company, one that’s well-managed and directed… a company that understands that the financial health and well-being of the men and women in the field MUST lead their mission, decisions, strategy, policies and procedures… no.

    But that new ostentatious corporate headquarters in the prestige location… corporate jet… an army of “distributor service” personnel… rock concert “conventions”… $50,000 “big name” keynote speakers… resort vacations and incentive cruses to exotic locations paid for by the company… luxury car allowances… are all expenses that need to be paid for. Where does that money come from?

    Directly (in terms of potential commissions that will not be paid out to people) or indirectly (in over-priced products and/or inflated charges for marketing materials, self-replicating websites, business building tools and trainings), the money comes from only one place… the men and women in the field.

    “So… do network marketed products cost more?” Sometimes yes and other times no.

    Can they be more expensive than similar items of equal value offered in a conventional market such as a retail store? Yes, they can.

    In fact, you can find numerous examples of both conventionally retailed products and networking products of similar sizes, shapes and qualities at prices that vary by as much as 30 to 40 percent or more.

    The only sure rule in product pricing the world over is, “What the traffic will bear…” No matter what distribution and sales route the product travels. It’s not so much a game of “Let the Buyer Beware,” as it is and always will be…

    “Let the Buyer Be Aware.”

    Factor in the at-home shopping convenience… the customer service… the satisfaction guarantee… personal attention… education and information–and in today’s increasingly competitive global marketplace, the “aggressive pricing” posture being taken by more and more networking companies around the world–along with the generally superior quality of the products available through network marketing and direct sales…

    … and I believe a growing number quality-conscious consumers will agree with me, top network marketing company’s products represent outstanding value.

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    Source by John Milton Fogg

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  • Tony Robbins – Personal Power II – Day 17 – Wealth Conditioning

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    “Money is nothing but a means to measure the exchange of value between people.”

    ~ Tony Robbins

    Many of us have pain associated with wealth in an approach/avoidance dance. Because of events in our past, we can call these “wealth wounds”. There can be lots of sensitivity about financial issues and so if these wounds are not healed, it is impossible to gain a ton of financial resources.

    Generally speaking, poverty and lack brings out the worst in people and abundance brings out the best. People who are living in poverty tend to have the highest criminal records, the most drug use and the most unhappiness. Being one of the consistently broke group of people doesn’t help you or the group. You can do more good by becoming wealthy in order to be able to give back.

    There are seven reasons why most people never make it financially.

    1). They associate negative things to having or making money. Remember, the past does not equal the future.

    2). They do not set having an abundance of money as an absolute must. Unless we decide what is a necessity, not an option, how can there be any improvement?

    3). Having an effective strategy of building wealth is non-existent for them. To condition yourself for great wealth, strategies must be developed for

    • attracting money into your life
    • managing your dollars
    • sharing your money, which will give you much happiness

    4). They are unable to follow through consistently on their financial goals. Finding ways for your money to work for you, such as harnessing compound interest which can take a lot of pressure off if you have time to watch it grow.

    5). They depend too much on the “experts.” There is no one who cares more about your money than you do. Experts are valuable, but you need to take care of your money and taxes. If you make errors in these types of decisions and planning, you will be ultimately responsible, not your professional.

    6). They become financially complacent. Many people take their wealth for granted. Whatever you fail to use, you will lose. It is a good idea to note that if you do well with what you have, you’ll be able to get more and, if you don’t actively create welth, itwhat you have will be taken from us. Don’t hoard what you have.

    7). They allow financial challenges go from bad to worse into financial ruin. Most likely, the road to wealth is not a straight line. If and when problems arise, stay in the game and ask great questions to help get back on track.

    Be willing to transform crisis into opportunity. By having financial faith, you can learn from the situation and find even more opportunities.

    The assignment:

    Give yourself a financial checkup to find out your “wealth wounds” so you can heal yourself quickly:

    1). Ask yourself to list the beliefs that you have that hold you back.

    2). Is there a specific amount of money that is an absolute MUST? Is this number the “must” for your life, or is this number the ability to live comfortably by paying your current bills?

    3). “Never leave the site of setting a goal or making a decision without taking some action towards its fulfillment. Make sure you do some action to set you on the course for financial mastery.

    4). Find something in today’s session to start feeling like you’re making progress. Remember, tiny actions lead to a pattern of habits which ultimately can be used to create the financial freedom we all deserve.

    5). You can make a list of financial terms or aspects of financial management that are not fully understood. Find the people or resources who cn provide answers about these things.

    6). Remember we talked about complacency? Write a paragraph about the “why” you will follow through with your plan and avoid complacency. Recognize the excuses you used in the past. Mastery is the only option now.

    7). Ultimately, what frees us from fear, is the belief that we are much more than anything that could ever happen to us financially. Write down one or two situations that seemed very difficult that you pulled yourself through. Remind yourself that you have this capacity to turn challenges into success.

    Sometimes our “wealth wounds” are most tender to try and heal, but the good news is that there are ways to heal them. One way is to find someone who has successfully gotten where you’d like to be. You can “model” after their example if you find out exactly what they did and then follow that pattern.

    Taking the time to do these exercises will teach you more about yourself. Fine tuning the skills in this lesson will provide additional ways to condition yourself for success.

    Onward.

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    Source by Deb Bauer

    Views: 0