Towards the "Good Will" Marketing Revisited

I would like to share a little experience that might be useful for the rest of the members. As a marketing director I was sent by my company to Melbourne for two days to present in a yearly exhibition called Australian Toys and Nursery Fair. This event is actually very important for every manufacturer, wholesaler, and retailer in the toy and nursery industry. This is the chance for manufacturer to exhibit their products and promote their creation to the wide range of wholesaler. To the wholesalers, this is a great opportunity to create more connections with retailers. Of course as a retailer, I found this exhibition is a great chance to recognize the latest trend in the industry, develop more contacts, and predict the future of the industry.

That was actually the first time for me to be there. I really did not expect that toy industry is actually THAT BIG!! The ranges of the categories were exhilarating. It started from art and craft toys, nursery products, extreme games, puzzles, board games, soft toys, learning and developmental toys, action figures, extreme hobbies, die cast, and the list goes on and on. The size of the companies that exhibited there also ranges from a very small company to the humongous sized companies, such as Mattel (the creator of Barney the Dinosaur, Barbie dolls, UNO, etc) and Hasbro (the creator of Monopoly, Sesame Street, Bratz dolls, etc).

My most important mission was to develop contacts to the great suppliers and manufacturers. As a retailer, especially a small retailer like us, it is important to secure the deal that enables us to obtain the great items. This deal will enable us to follow the trend in the industry. However, in order to secure the deal sometimes it takes more than just money. The ability to purchase a great value of transaction does not necessarily secure the deal.

Somehow some manufacturers and suppliers have a good will with their existing customers. They have the exclusivity secured in order to maintain the desired price of the products. As an online retailer I was rejected by some of the companies. Firstly, online stores usually sell items at crazily discounted price which could be lethal to the brand identity of the item. Secondly, the global internet market could kill the existing local conventional stores by eroding their market (an online store in America could sell to Australia).

At the end of the day, the manufacturers have spent millions of dollars to build their brand and of course it is understandable for them to reject me. Mercedes Benz is always meant to be a luxurious car. Therefore, discounted selling of Mercedes Benz would be lethal for them. You do not want to create confusion within the market towards your brand identity.

My question is: Is it another practice of the good will marketing by the manufacturers to their existing customers or just merely business tactic?

Feel free to contribute, you are more than welcome!!

David Herlambang

MarketingFirst

Strategic Location!? We live in cyber world era!

It just a few days ago when I wrote an article saying that business owners cannot rely solely on strategic location (See: Strategic Location & Customer Loyalty…). A few days have since passed and I have been getting a good feedback on it. It basically points out that now we can shop from home. Thank you to Mr. Internet. And no where can strategically beat shopping from you couch. Ouch!

This is a really good point and makes me thinking why should I be bothered on spending all those money for one particular spot in the CBD (Central Business District), which will cost me around three grand a week (rent)? Where, if you think about it, it is possible for me to open an online store with considerably lesser amount (per week).

I said on previous article: “if a business needs to relocate to un-strategic location, it will need to rely not only on customer loyalty and branding but also a new way to lure customers by understanding their dreams (expectation).” This is needed because customer will incur more “inconvenient” cost and in return we have to offer something more.

Now, instead of having all the troubles figuring out customer’s dreams, why don’t we go online? If I may borrow eBay terms: “List locally, sell globally.” And at the same time, our business is in everyone’s living rooms.

Right now, some of you may still wondering why businesses still queuing for a strategic physical locations, and more of you may be puzzled with the fact that those big retails companies are gripping hard on their network of stores.

Well, it all comes to people preferences. Some people like to touch, feel and try items before they buy it. Other group of people may like window shopping, but then end up buying things. And few people I know were actually saying that they rather go to the nearest shopping mall rather than paying $10 shipping and handling fees. They all have their own reasons.

Cyber market or physical market, each has its own target audiences. A statistic has found out that the main reason people shop online was because of the convenience offered. They don’t have to queue; they don’t have to find parking. In comparison with the above, we may have two different personalities here.

People will always be different one another. A few years back, when Wal-mart offer all in one shopping experience, it has not yet made street corner convenience store die. I think even with the existence of Amazon, people still sell books in-store. I believe that people have different needs, different way of doing things, or maybe different preferences. All these different will contribute on their shopping behaviors.

It is by understanding existing customers and potential target market; a business will be able to make the best decision for them. Whether, following IKEA (one centralize massive store), do it like Target (stores all over major shopping centers) or abandon the old world and join the new cyber world. Understanding customer’s expectation and offering them with the value they want will pose a significant benefit.

Author: Michael A Oei – MarketingFirst Group