Elite Brands in a Mass Market
World: Is Creating Low-Cost Lines Worth the Effort
RainToday.com, April 2009
By Vickie K. Sullivan
In tight markets, many elite-status professional service
firms find themselves at a branding crossroads. The question:
If the party is over and cheap is the new chic, is it time
to leverage our exclusive brand with low-cost service lines
to the masses? If Martha Stewart can create products for K-Mart,
why can't we appeal to the low-cost buyer too?
It's very tempting to jump into these uncharted waters thinking
that high-end marketing tactics work in lower end markets.
This is also known as jumping out of the pan and into the
fire. It's like playing baseball with the winning plays you've
used in your prestigious football career. Bottom line: the
similarities between buyers, tools and tactics in both worlds
are superficial. Therefore, you have to bring different skills
and play by different rules if you want to win.
These worlds look similar but are really parallel universes.
Here are the big differences between the buyers and tools
you need to reach them. Armed with this information, you can
decide if mass markets are right for you.
Different buyers with different
agendas
The biggest differences are the buyers themselves. Two major
distinctions here: who they are, and what they want.
Prospects who want high-end solutions have heard it all before.
They are bright, intellectually curious and want an approach
they agree with applied to them. Redefine and diagnose their
challenges, and you have their attention. This is why articles
and speeches work well to reach these buyers. They want to
discover your approach first, decide if they agree, then move
forward with the sales process.
These buyers expect the high-brands to do more of the mental
heavy lifting. Usually these prospects know that they don't
know and want to get the result faster than if they had to
figure it out all on their own. They want to participate and
will provide all the information needed. But...they want the
expert to make the recommendations and do the work. They don't
want to design their own house -- they want to find someone
to take their preferences and translate their vision into
custom blueprints. That's why high-end architects are hired
every day.
Lower end buyers have no interest in visionary approaches.
These buyers are practical and focus on competence and mastery.
They want real-world systems that work every time, with anyone.
They don't think their problem is unique enough to warrant
high-fee attention. They are not necessarily out to change
the system. They want the benefits spelled out for them; they
don't care about your unique approach.
These prospects don't want mistakes; they just don't expect
custom-built perfection. They are looking for a cookie-cutter
system. They are willing to trade preference for price. To
continue the above example, these homeowners would rather
get less unique features so they can buy already available
blueprints from a lesser-known architect.
Marketing tools and media
Given the differences in buyers, you can assume that the
same marketing tools will be used in a different way. Yet
this is the #1 reason why most elite firms fall in expanding
into mass markets -- they don't change their tools to implement
their choice.
A great example of the same tool used in a different way
is the website. The elite firms use websites not only as a
billboard for their expertise, but also as a depository for
their content. The copy leads with their approach and you
can find a lot of articles, tools, all sorts of resources.
These articles are carefully written -- the belief is that
if you agree with their thinking, you will contact the elite
firm for a customized solution. There's not a lot of overt
selling on this site -- the call to action is to either sign
up for blogs or newsletters, or to contact the company.
On the other hand, websites for mass markets are all about
sales copy. The home page leads with questions to have you
believe that they understand your situation. The sales copy
is longer and hard-hitting. The call to action is very strong
-- click here to buy. Yes, there is educational content on
the site, but usually through splash pages, which asks the
prospect for their email in order to get the article. Marketing
to the masses relies on repetitive contacts, so once these
marketers have a new email, the system takes over and all
sorts of information, content, and yes more sales pitches
are sent out automatically.
Media is the second example that shows the difference between
these worlds. For the elite branded firms, publishing articles
is another vital tool. And that information can't even have
a hint of sales or promotion. Again, it's a soft close --
click here for more information or to reach the author. That's
why social media has become so popular with elite brands --
the interaction of ideas is right up their alley.
Most mass marketers won't use traditional media -- why? Because
they are not willing to give up their sales-driven websites.
And media is scared to death of that long, hard-selling copy.
So these distributors depend on the internet for article distribution
by finding popular portals with high search engine rankings.
Both brands partner with others to get new business. But
the similarities end there. Elite firms love qualified referrals.
Those recommendations come from a more personal approach to
business relationships. Mass marketers look for partners with
big lists and cross promote. They have affiliate systems that
spit out all sorts of data such as opens, click through, commission,
etc. The relationships between the list owners are cordial
but much more systematized.
Why can't I do both?
So with all these differences in play, the biggest question
I get is: why can't I do both? Yes, you can have the best
of both worlds. For established elite branded firms with a
community of diverse prospects, it is silly to not help those
who love your work but can't afford your fees. The marketing
plan in this case: a simple announcement and promo plan. For
those who know you, the changes aren't as severe. Just put
up a sales page on your current site and direct folks there.
The caveat: limit your marketing of lower priced lineds to
your current community. Use these offers as a back-up plan
for clients with smaller budgets.
Is the grass really greener?
When times are challenging, the grass can look greener in
other markets. Branching out with low-cost alternatives where
you are not well-known will force many changes to your infrastructure.
Some you may not be prepared to make. By knowing these changes
up front, we can make informed decisions not based on what
we see through rose-colored glasses, but based on what we
are willing to do.
Since 1987, Vickie K. Sullivan, President of Sullivan Speaker
Services, has generated millions of dollars in speaking fees,
book advances and ancillary income for her clients. Sign up
for her free market intelligence at http://www.SullivanSpeaker.com
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