From time to time the marketing world is taken aback by huge, quick, unpredictable and seemingly inexplicable successes. These hits are products or services, entertainment locales or vacation spots, shopping malls or specialty stores that enjoy puzzling immediate popularity. There are incognitos that become hot celebrities, there are events, festivals or concerts that capture the masses, real estate development projects that evoke huge demand, or styles that become trendy. In nearly all cases, there are also new brands that are immediately adopted by the target population. For example, Harry Potter or The Da Vinci Code, Apple’s iPod and the Blogs, the Hamptons in Long Island New York, Toyota’s Scion brand, the Crest electric toothbrush and many more examples.

There are cases in which the reasons for a product’s success are obvious. The success of Viagra, a product that has solved a serious problem for millions of men worldwide – is hardly surprising. Even the success of vacation resorts in Turkey – that have made accessible once a luxurious vacation style to a new middle class segment, is not a mystery. In contrast, in other cases the success of a specific product, place or person over the competition remains unclear. We have all observed the phenomenon of a packed and trendy caffe surrounded by apparently equally attractive but relatively empty coffee bars.

Research of marketing hits is not a new endeavor. Certain categories have accumulated much knowledge enabling planning and launching of hits with a practical probability of success. In the leisure and entertainment segment, companies such as Disney, Warner, HBO, and others have demonstrated such consistent capabilities in theater, television, music, toys, electronic games, and more. On the whole, secrets are kept closely. Many have tried to crack the formula of marketing hits successes.

Short sweet success

In the last few years, more and more sectors have become as high paced and as changeable as the fashion industry. The importance of hits for the success of companies has risen in sectors such as the following: automobiles, food, grooming, hotels, construction, entertainment electronics, software, and the list goes on. It even includes unexpected categories such as financial services.

Personally, I have begun my work in the marketing hits field in the latter half of the 1990’s. I identified a radical change in consumer behavior and a dramatic rise in a new motivation that I coined “The Fear of Missing Out – FoMO”. In extremely concise terms, FoMO turns consumers into serial seekers and adopters of the new (while inevitably forsaking the not-so-new). As such, one consequence among many is that FoMO nibbles at customers’ loyalty to well-established brands.

Upon realizing that our efforts to preserve customers’ loyalty are, more often than not, futile, I concluded that we were now in need of new tools to deal with a new consumer reality that is here to stay. Therefore, I have developed a comprehensive ‘technology’ of rules and tools for the development, launching and management of profitable, “Short-Term Brands (STB)”. STB are planned short-term successes. During this development process, I conducted an extensive, in depth analysis of over 150 marketing hits in various and diverse categories. In parallel, I studied the accumulated experience in sectors that have learned how to methodically develop and generate such hits. In mid 2004, the results culminated in the “Marketing Hits’ Formula” which is now a part of the STB armory.

The Marketing Hits’ Formula and its implementation method allows for marketing innovation that will be accepted with immediate enthusiasm by target consumers and will spread virally. This formula has two major advantages: First, it is applicable to almost all categories. Second, it does not necessitate enormous marketing and advertising budgets (the most common method of attempting to instigate success within a short time frame).

Success has its Rules

The formula postulates that each marketing hit comprises of the following four elements:

1. Marketing hits are usually not large innovative leaps. The new product or service should be based in as much as 80% on a format that has been successful numerous times in the same category. The format assures familiarity, promises consumer satisfaction and minimizes adaptation efforts on the part of the consumer.

2. The product or service should be innovative by approximately 20%. This 20% provides the new experience, the uniqueness, the additional benefit or any other reason to switch from the current product, or to at least try it. This novelty should uphold the following two rules (3 and 4).

Creating Customer Loyalty for Your Business

Strategize and Plan For Loyalty!

These four factors will greatly affect your ability to build a loyal customer base:

1. Products that are highly differentiated from those of the competition.

2. Higher-end products where price is not the primary buying factor.

3. Products with a high service component.

4. Multiple products for the same customer.

1. Market To Your Own Customers

Giving a lot of thought to your marketing programs aimed at current customers is one aspect of building customer loyalty.

When you buy a new car, many dealers will within minutes try to sell you an extended warranty, an alarm system, and maybe rust proofing. It’s often a very easy sale and costs the dealer almost nothing to make. Are there additional products or services you can sell your customers? Three years ago my house was painted, and it’s now due for another coat. Why hasn’t the painter called or at least sent a card? It would be a lot less expensive than getting new customers through his newspaper ad, and since I was happy with his work I won’t get four competing bids this time. Keep all the information you can on your customers and don’t hesitate to ask for the next sale.

2. Use Complaints To Build Business!

When customers aren’t happy with your business they usually won’t complain to you – instead, they’ll probably complain to just about everyone else they know – and take their business to your competition next time. That’s why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer’s complaint, the customer might be even more likely to do business than the average customer who didn’t have a complaint.

Price is what you pay – value is what you get.
Warren Buffett, Chairman of Berkshire Securities

Deliver value that your customers recognize, appreciate and reward. If you want your customers to value what you offer – you must demonstrate that you value them.

Value implies trust so start by building trust. Always under-promise and over-deliver. Be known for keeping your promise and then some. Be honest. Never promise what you cannot deliver.

Don’t confuse value with cost. A product’s value is almost never equal to its cost. For example, your product might cost you $2 and you sell it for $10. The value to you is $10. The value to the customer will usually be more than the selling price. If it was only worth $10 to the customer then they have no motivation to buy. But if the value to them is greater than the selling price, they are motivated to trade their money for something of greater value. It may be worth $25 to the customer. Then they will gladly give up $10 of their money for the product. The more that value exceeds the cost of the purchase, the more the customer will want to buy from you. Always offer value that is greater than the price they pay. Your challenge is to ensure the customer sees much more value than their cost.

The Value Formula
How can value be so different from cost? Examine the following formula, then discover where you can concentrate your efforts to enhance value.

Total value = real value + perceived value

Let’s take it apart to understand it. Real value comprises the tangibles. It is relatively easy to measure. Real value can be expressed in this manner:

Real value = function/cost

Function is what the product or service does in mechanical or analytical terms. Imagine you are buying a new car. If you are shopping for the best real value, you would get the most function efficient ground transportation for the lowest cost. You could measure the car’s function factor by comparing it with the cost of your practical alternatives; public transit, car pooling, taxi, bicycle, limousine, various car models. You might wish to consider the costs of these alternatives in terms of time and inconvenience. What does your new car give you that these other modes of transportation don’t?

Colors have a hypnotic effect on people. Many people feel drawn to azure blue, for instance.

The odd thing about blue is that it can make you feel trusting. It is subtle. You are probably not aware of it. Other colors work in the same way. Shades of colors also have a subtle effect on your mood. Bars are often decorated in dark shades of red, grey or blue in order to soothe customers into staying. Kindergartens are filled with pastel shades to keep children happy.

How can a color help sell your product? Easy. It can put your customer in the buying mood. You can color anything your customer sees – your product, its packaging, the website, sales materials or your logo. If you choose the right color, you could send people scrambling for their wallet.

Here are some colors and their power:

* Blue is an all-time favorite. If you use blue, people see you as trustworthy. It is conservative and solid. Blue is the color for little boys because according to folklore, baby boys are born in the blue shadow under a cabbage. Good products and services for blue are boys’ clothes, jewelry, travel, insurance, business services and art.

Blue exerts another extraordinary effect: it curbs the appetite. Dieters sometimes eat in blue light, from a blue plate in a blue-colored room. It odd thing is – it works. They do not eat as much.

* Red signals excitement – and danger. It makes people feel expectant. It is often used for introducing a new product. Some good products for red are security products, toys, sports accessories, cars, children’s clothing and pet products.

* Pink is a calming color. Pink is used to sell girls’ clothes and toys as well as cosmetics. Pink shades and lampshades soften the light in a room. A sales price printed in pink tends to make it appear less expensive. Perhaps, it is the calming effect at work. Pink is also pure innocence. Little girls are given the color because ancient folklore has it that girl babies are born in the heart of a rose. *Yellow grabs the eye. In fact, it is the first color babies recognize. It gives off a secure feeling. It is excellent for children’s clothing, health services, vitamins, pet items, music, flowers and household appliances.