marketing without advertising

Marketing means running afirst-rate business andletting people know aboutit. Every action your company takes sendsa marketing message

MarketingWithoutAdvertisingby Michael Phillips & Salli Rasberryedited by Peri Pakroo3rd edition About NoloHave a legal question? Chances are Nolo can help you answer it, both in printand online.For three decades, Nolo's mission has been to help people solve their legalproblems with confidence, a minimum of fuss and expense, and—wheneverpossible—without a lawyer.Over the years, we’ve offered every tool available to help you get the job done.In the 70s, we began publishing practical, plain-English books containing all theforms and step-by-step instructions necessary to tackle day-to-day legal tasks.In the 80s, when personal computers took the world by storm, we got to workand developed programs such as WillMaker and Living Trust Maker, which tookadvantage of the speed and convenience of all those bits and bytes. We alsoadded form-packed disks and CDs to many of our books.Then the Internet exploded in the 90s. Recognizing that it's best to get legalinformation while sitting in your own comfy chair, Nolo started making useful,up-to-date legal information available to anyone with a computer and a modem.Most recently, we opened our online Download Center, where you can findall of Nolo's convenient, topical eProducts. The fastest, easiest way to do yourown legal work, eProducts deliver specific forms and information directly toyour computer.Does this mean we plan to abandon our books in print? Absolutely not. Astechnology evolves and the Internet expands, we will continue to redesignand improve all our current products, making your access to the law the bestit can be. “America’s leading source of self-help legalinformation.” ★★★★—YAHOO!LEGAL INFORMATIONLEGAL INFORMATIONONLINEONLINE ANYTIMEANYTIMEwww.nolo.comAT THE NOLO.COM SELF-HELP LAW CENTER, YOU’LL FIND•Nolo’s comprehensive Legal Encyclopedia filled with plain-Englishinformation on a variety of legal topics•Nolo’s Law Dictionary—legal terms without the legalese•Auntie Nolo—if you’ve got questions, Auntie’s got answers•The Law Store—over 250 self-help legal products includingDownloadable Software, Books, Form Kits and eGuides•Legal and product updates•Frequently Asked Questions•NoloBriefs, our free monthly email newsletter•Legal Research Center, for access to state and federal statutes•Our ever-popular lawyer jokesLaw Books & Softwarefor EveryoneNolo’s user-friendly products are consistently first-rate. Here’s why:•A dozen in-house legal editors, working with highly skilled authors,ensure that our products are accurate, up-to-date and easy to use•We continually update every book and software programto keep up with changes in the law•Our commitment to a more democratic legal system informs all of our work•We appreciate & listen to your feedback. Please fill out andreturn the card at the back of this book.QualityOur“No-Hassle”GuaranteeReturn anything you buydirectly from Nolo for anyreason and we’ll cheerfully re-fund your purchase price.No ifs, ands or buts.2424 h urs a dayh urs a dayh An Important Message to Our ReadersThis product provides information and general advice about the law. But laws andprocedures change frequently, and they can be interpreted differently by differentpeople. For specific advice geared to your specific situation, consult an expert. Nobook, software or other published material is a substitute for personalized advicefrom a knowledgeable lawyer licensed to practice law in your state. MarketingWithoutAdvertisingby Michael Phillips & Salli Rasberryedited by Peri Pakroo3rd edition Keeping Up-to-DateTo keep its books up-to-date, Nolo issues new printings and new editions periodi-cally. New printings reflect minor legal changes and technical corrections. New edi-tions contain major legal changes, major text additions or major reorganizations. Tofind out if a later printing or edition of any Nolo book is available, call Nolo at 510-549-1976 or check our website at http://www.nolo.com.To stay current, follow the “Update” service at our website at http://www.nolo.com/update. In another effort to help you use Nolo’s latest materials, we offer a 35% dis-count off the purchase of the new edition of your Nolo book when you turn in thecover of an earlier edition. (See the “Special Upgrade Offer” in the back of the book.)This book was last revised in: April 2001.THIRD Edition APRIL 2001Editor PERI PAKROOCover Design TONI IHARABook Design TERRI HEARSHProduction SARAH HINMANProofreading SHERYL ROSEIndex NANCY MULVANYPrinting BERTELSMANN SERVICES, INC.Phillips, Michael, 1938- Marketing without advertising / by Michael Phillips & Salli Rasberry.--3rd ed. p. cm. Includes index. ISBN 0-87337-608-0 1. Marketing. 2. Small business--Management. I. Rasberry, Salli. II. Title. HF5415 .P484 2000 658.8--dc2100-056863Copyright © 1986, 1997 and 2001 by Michael Phillips and Salli Rasberry.ALL RIGHTS RESERVED. Printed in the U.S.A.No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means,electronic, mechanical, photocopying, recording or otherwise without prior written permission.Reproduction prohibitions do not apply to the forms contained in this product when reproduced for personal use.For information on bulk purchases or corporate premium sales, please contact the Special Sales Department. For academicsales or textbook adoptions, ask for Academic Sales. Call 800-955-4775 or write to Nolo, 950 Parker Street, Berkeley, CA94710. AcknowledgmentsWith special thanks to Soni Richardson and Michael Eschenbach,Daniel Phillips, Tom Hargadon and Mary Reid. Full Disclosure NoteAll the businesses and business owners mentioned in the book are real. The greatmajority operate under their own names in the cities indicated. However, becausesome of our examples are less than flattering, and for other reasons, including pri-vacy, we have changed the names and/or locations of businesses in a few cases.In some cases, the businesses used as examples in the book do advertise—theirmarketing ideas are so good we included them anyway. In most cases, if a businessused as an example does advertise, it is a small part of their marketing mix. Table of Contents1Advertising: The Last Choice in MarketingA. The Myth of Advertising’s Effectiveness . 1/3B. Why Customers Lured by Ads Are Often Not Loyal . 1/8C. Why Dependence on Advertising Is Harmful 1/8D. Advertisers: Poor Company to Keep 1/9E. Honest Ads . 1/12F. Branding . 1/14G. Listings: “Advertising” That Works . 1/152Personal Recommendations:The First Choice in MarketingA. Cost-Effectiveness . 2/2B. Overcoming Established Buying Habits 2/4C. Basing Your Marketing Plan on Personal Recommendations . 2/5D. When Not to Rely on Word of Mouth for Marketing . 2/73The Physical Appearance of Your BusinessA. Conforming to Industry Norms 3/2B. Fantasy: A Growing Part of Retail Marketing . 3/5C. Evaluating Your Business’s Physical Appearance 3/11 4PricingA. Straightforward and Easy-to-Understand Prices . 4/2B. Complete Prices 4/3C. Giving Customers Reasonable Control Over the Price 4/6D. Internet Pricing . 4/95The Treatment of People Around YouA. Tracking Reputations via the Grapevine 5/2B. How Employees Spread the Word . 5/3C. Common Employee Complaints 5/7D. Handling Employee Complaints 5/9E. Finding Out What Employees Are Thinking . 5/11F. Suppliers . 5/13G. Business Friends and Acquaintances . 5/17H. Individuals Who Spread Negative Word of MouthAbout Your Business 5/19I. Your Behavior in Public 5/206Openness: The Basis of TrustA. Financial Openness 6/3B. Physical Openness 6/5C. Openness in Management 6/6D. Openness With Information 6/8E. Openness With Ideas 6/11 [...]... Your Marketing Plan A Your Marketing List: The “Who” of Your Marketing Plan 12/2 B How to Evaluate Your List 12/3 C Marketing Actions and Events: The “What” of Your Marketing Plan 12/5 D Direct Marketing Actions 12/7 E Parallel Marketing Actions 12/15 F Peer-Based Marketing Actions 12/21 13 The Last Step: Creating a Calendar of Events A Marketing Calendar for an Interior... E Honest Ads Lest you become completely discouraged about the possibility of a better standard of honesty in advertising, there is hope At least two nations, Japan and Sweden, encourage honesty in their advertising In ADVERTISING: THE LAST CHOICE IN MARKETINGS 1/ 1 3 1/14 MARKETING WITHOUT ADVERTISING neither country do ads have “fine print” that contradicts the main message, nor do they permit the... your advertising for you Ralph Warner Berkeley, California Chapter 1 Advertising: The Last Choice in Marketing A The Myth of Advertising s Effectiveness 1/3 B Why Customers Lured by Ads Are Often Not Loyal 1/8 C Why Dependence on Advertising Is Harmful 1/8 D Advertisers: Poor Company to Keep 1/9 E Honest Ads 1/12 F Branding 1/14 G Listings: Advertising ... consider advertising useful at less than 19% We think most of them don’t need it either There are four main reasons why advertising is inappropriate for most businesses: • Advertising is simply not cost-effective Claims that it produces even marginal financial returns are usually fallacious • Customers lured by ads tend to be disloyal In other words, advertising ADVERTISING: THE LAST CHOICE IN MARKETINGS... magazine, advertising budgets have doubled every decade since 1976 and grown by 50% in the last ten years “Companies now spend about $162 billion each year to bombard us with print 1/4 MARKETING WITHOUT ADVERTISING and broadcast ads; that works out to about $623 for every man, woman and child in the United States” ( Marketing Madness,” May/June 1996) Information Resources studied the effect of advertising. .. and increasing returns to repetition of ads constitutes a monstrous myth, I believe, but a myth so well-entrenched that it is almost impossible to shake.” 1/6 MARKETING WITHOUT ADVERTISING ADVERTISING: THE LAST CHOICE IN MARKETINGS 1/ 7 Using advertising to make your business television programs The public was well a household word can often backfire; a acquainted with “ADM, Supermarket to the business... is exposed to well over 2,500 advertising messages per day, and that children see over 1/10 MARKETING WITHOUT ADVERTISING 50,000 TV commercials a year In our view, as many as one-quarter of all these ads are deliberately deceptive Increasingly, the family of businesses that advertise is not one you should be proud to be associated with What a Marketing Expert Says About Advertising “Increasingly, people... Harvard Business School made clear how 1/12 MARKETING WITHOUT ADVERTISING the American public felt about traditional advertising: “43% of Americans think that most advertising insults the intelligence of the average consumer 53% of Americans disagree that most advertisements present a true picture of the product advertised.” The chief reasons for hostility to advertising are that it is intrusive and patronizing... on advertising, it’s far better to spend the same money improving your business and caring for customers It’s the honest power of this honest message that made me excited to publish Marketing Without Advertising ten years ago Uniquely among small business writers, Phillips and Rasberry were saying the same things I had learned as a co-founder of Nolo—that the key to operating a prof- I/2 MARKETING WITHOUT. .. When Not to Rely on Word of Mouth for Marketing 2/7 2/2 MARKETING WITHOUT ADVERTISING “It is the thing you look for, ache for.” —Charles Glenn, Orion Pictures W e hope we have succeeded in getting you to think about the dubious value of advertising for your business, if you hadn’t already independently arrived at this conclusion Now it’s time to talk about a marketing strategy that does work: personal . Advertising That Works .............................................................. 1/15 1/ 2MARKETING WITHOUT ADVERTISING Really high spending on advertisingsales. Nolo to publish an-other new edition of Marketing WithoutAdvertising. Yes, lots of things about smallbusiness marketing have changed in theinterim. To