Are You Selling iPods or MP3 Players

Apparently our country is in, what experts call, "a recession." "Times are tough out there," is the message I continue to hear over and over. Whether it's a $5 footlong, a coupon frenzy, a "sale," or, God forbid, a going out a business closeout, we're constantly reminded, as consumers, that people are hurting. The conversation seems very price heavy out there. My question is, is that the message companies should be communicating?

I recently had a conversation with an associate I work with about our prices. This person brought up the recession, people losing jobs, the competition offering discounts, etc., etc. as reasons we were unable to achieve more sales. As I reflected on the comments, I admitted that our product needed to have a "competitive" price. That was the only thing I conceded when it came to discussing price. However, what does competitive really mean anyway? Is the price of a Toyota Camry competitive to a Ford Taurus? Is the price of an Apple iPod competitive to a Sansa? I believe we could make an argument that the prices are relatively competitive. Many understand why a premium is associated with Toyota or Apple, but they still may compare their products to other brands. When I was in the car business people would compare all sorts of brands to Lexus. One time a guy compared a Hyundai Santa Fe to a Lexus RX 300. Seriously.

My point is, your price is competitive or relevant to the individual customer. They will buy at a price they can justify a value for. If your product or service is not achieving the price you or your sales team believes it should, then is it a price issue or a product and experience value issue in the customer's eyes? That's where I'm going with this. I don't see Apple reducing the prices of iPods, and I still see Toyota getting a premium over Ford. Why is this, and why don't more businesses choose to differentiate themselves enough from their competition to achieve this? Even small businesses like dry cleaners and restaurants have opportunities to differentiate and really stand out from their competition. And having a better coupon or price is rarely that differentiator.

The next time your marketing team sits down to discuss the next big coupon or discount program, I encourage you to ask yourself why. Why must you feel compelled to offer a coupon or discount? Are you selling iPods or MP3 Players? Are you just a box with a price, or do you offer something more? Coupons and discounts are knee jerk reactions in an attempt to increase sales, do it enough and those knees might just give out.

Just another one of my opinion rants. Enjoy your day.

How Many "Cast Members" Are Best?

Just one more Disney post and I'll let it be. I was blown away by the number of people that work at the hotels, parks, and restaurants at Disney World. There was not one moment I felt I could not turn around or turn a corner and find someone that could help me. At some points it was kind of creepy and even seemed a bit much.

After thinking about it a bit, seeing more news about layoffs, and reading a blog comment about reducing employee costs I had to write another post. So, what's your thought on over-staffing? Apparently Disney finds a way to justify it, and they don't appear to be reducing their prices anytime soon (trust me).

Is there a secret to having plenty of people? In the world of technology so many processes and people can be reduced or eliminated. Why does Disney implement the technology, but also continue to employ more than enough people? Can more people help to enhance the customer's experience, or does it just add more expenses? Is there a magic formula? Do you think your company has enough people to help create a Disneylike experience?

Thanks and enjoy your day!

Mark

The Disney Experience of Today

As I indicated about a week ago, I made a trip to the marketing mecca of Walt Disney World. Again, I was amazed at the details and the constant marketing. To the right is a photo of my daughter's hairdo courtesy of the Bibbidi Bobbidi Boutique (complete with Pixie dust, mini tiara, and Mickey ears barrette). For about $60 your little princess can be even more of a princess.

While some of these extras may be a bit much for many Disneygoers, many are sucked into these extra experiences. In general, visiting Disney World seems to be pretty straight forward. Resort hotels, amusement parks, restaurants/dining, and all the characters associated with Disney and Disney movies. That's pretty much a general overview of what to expect. I discovered on my trip that Disney World can be even more. Here's a list of extras during my trip, and this just scratches the surface.

- Dinner with 5 Princesses, Breakfast with Winnie the Pooh, Bibbidi Bobbidi Boutique, Breakfast with Chef Mickey, Dinner a Cinderella's Castle, Mickey's Very Merry Christmas Party, Breakfast with 5 Princesses

A majority of this was great for a 4 year old, and I can't imagine missing any of these extras looking back. Disney continues to raise the bar. Each time you go back you can have a different experience because there is always something new. They are constantly redesigning, adding, and enhancing. Just before we left the Grand Floridian Hotel the bellman told me how they plan to completely redecorate and rehab the entire lobby of the hotel. And that's just one hotel.

Now I will stop and pose my questions for the post. The concept of kaizen is alive and well at Disney. That being said, if they are constantly enhancing the experience for their guests, what are you doing to enhance the experience of your guests/customers? How often are you implementing these enhancements? What is holding you back?

Thanks and enjoy your day.

Mark

The Marketing Mecca

So, I'm traveling back to Disney World soon for the 2nd time in the last year and a half. Vacationing at Disney World is like no other experience. For a marketer, all the details completely blow you away. From the moment you arrive in Orlando, there is buzz and activity encouraging purchases. As a parent you feel obligated to ensure your children truly remember Disney World being the happiest place on earth, but it doesn't take much work to accomplish that. At every turn the hotels, the parks, the rides, and the employees are always selling. They are selling you more while you are there, and they are selling you for the return visit. Everything seems so calculated and predetermined that it truly amazes me how well orchestrated the entire experience is.

As I look forward to this trip I wanted to propose some questions. If you have been to Disney World yourself, what was the most memorable part of your experience (from a marketing perspective)? Also, even if you have not been, do you have a special research project you'd like to send me on?