Marketing Outside the Big Box
This article was written by Tamara Monosof of Entrepreneur.com
When launching a new product, it's only natural to think of big-box retailers -- Wal-Mart (WMT Quote), Home Depot (HD Quote), Babies "R" Us -- as the pot of gold at the end of the sales and marketing rainbow. Certainly these stores have unparalleled distribution throughout the country and even the world. But depending on your product, you have many other options.
Many inventors and entrepreneurs have had great success with sales channels that may not be top-of-mind -- and may even be considered offbeat or unconventional. Either way, they provide different routes for connecting with your customers. They also can be stepping stones that build awareness for your product and establish a track record that'll eventually help you sell to the bigger retailers.
Remember, not every option will work for every product or product line; part of your sales strategy involves finding the most effective way to link your product with your target market. Here are just a few possibilities that can help you start thinking outside the big box.
Direct sales or network marketing. This sales strategy was made famous by companies like Tupperware (TUP Quote) and Mary Kay. Since then, many other companies, such as The Pampered Chef, Creative Memories and Southern Living, have found great success with this model.
A direct sales approach involves employing a large-scale, commission-based sales force whose members are invested in the success of your company. Sales agents typically host home parties, during which they demonstrate products to the target market.
Then they start building a network of friends and acquaintances who host their own home parties -- with a new group of consumers -- in return for incentives or free product. These friends and acquaintances may become direct salespeople for the brand as well.
Companies that use this model value a personal approach, which promotes a stronger connection between the brand and the potential customer. It's like combining marketing and sales in one pitch -- when a friend vouches for a product and sings its praises, you're more likely to purchase it. In addition, a company can build an army of salespeople who are passionate about its brand and who are interested in starting their own businesses and achieving financial independence.
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