At some stage or another, you may have heard marketers talk about positioning? But what exactly is it, and is it something that can really influence business success?

Firstly, positioning is an occurrence which unfolds in the minds of consumers. It’s the perception your customers’ have of your firm or brand relative to how they perceive your competition’s in the same classification.

As an example, people establish a perception in their minds’ that Porsche is a prestige automotive manufacturer. Now, of course we know it is, but the carmaker didn’t achieve this high-end status by fluke. The brand was deliberately positioned as such.

At the other end of the spectrum, however, companies such as KIA and Hyundai couldn’t hope to achieve the same coin for their vehicles. Furthermore, it’s doubtful that this would be penned as one of their strategic objectives. You see, these organisations purposely position their brands on the basis of affordability and value for money.

Positioning can be manipulated, but doing so isn’t a simple task. To achieve a desired position requires product, pricing, promotional and distribution strategies to consistently align. In other words, the marketing messages being conveyed must collectively dovetail.

Let’s say Porsche ran an advertisement offering their latest model for $39,000, drive away. There’s a high probability that buyers would be dubious. In essence, we don’t associate this brand with such a low price point. Such pricing tactics would, unquestionably, be detrimental to the iconic brand’s positioning. Devaluation of the brand would be imminent.

And, what if Kmart sold Billabong clothing in their retail chain? Presumably Kmart would be delighted, but the unique positioning of the Billabong brand would be significantly damaged. Likewise, you won’t find Nike sportswear being sold at local market stalls, because this distribution method is inconsistent with the company’s desired position.

Marketers use a process called perceptual mapping (or) positioning mapping which visually displays their occupied position, as well as those of their competitors’. This instrument is also helpful in terms of isolating viable, but currently unoccupied segments.

I’ll now provide a link to a free positioning map template which you are welcome to download.

You’ll notice that this editable Microsoft Word document contains axis points with opposite differential meanings, for example: ‘low cost’ and ‘expensive’. Try to think of axis differentials which are appropriate to your product. As another example, If you choose, say, ‘high-quality’ as one, the opposite must be tagged something along the lines of ‘low-quality’.

Marketing truly is a fascinating and exciting component of business development. Although it’s often initially narrowly perceived as an advertising and selling activity, it actually involves much more. Marketing also encompasses product development, broader promotional strategies, customer considerations, distribution factors, as well as tactical pricing decisions. Yes, an intensive ‘mix’ of decisions, you guessed it, commonly referred to as ‘the Marketing Mix’.

Regardless of whether I’m teaching or consulting, there is one question I always ask my clients’. “When needed, which tactics do you unleash to stimulate business activity?” Not surprisingly, the response generally thrown back at me is the same. “Russ, we reduce our prices to get business when it’s hard to find.” Why I’m not bewildered is quite simple. You see, price is the easiest component of the marketing mix to adjust. However, being the easiest doesn’t necessarily equate to the most effective!

While price reductions can have the resulting affect of increasing consumption of goods and services, this isn’t always the case. In fact, a reduction in price can result in both diminished gross profit margin and sales volume. This is occurrence is called demand inelasticity.

So, before applying the guillotine to your prices, my recommendation is to investigate the other components of your product’s marketing mix that you can modify. For instance, are you able to add value to your products? Value adding by providing something extra for free, or at a reduced rate, just might be the appetiser that’s required. This way, your gross revenue won’t be cannibalised.

What about distribution? Have you fully penetrated your existing markets? If so, have you investigated the feasibility of entering new segments? To illustrate the application of this, a sunglass wholesaler may be supplying all available sunglass retailers. However, wanting to expand, the wholesaler might target new markets such as surf wear and specifically selected fashion retailers.

What about marketing communications? Are you effectively informing your customers’ about your products? Things to consider here, might include, an increased emphasis on advertising. Perhaps this might enhance sales? And if your product is technically complex, or has a high-end associated pricing structure, investing in personal selling with your own sales representative might be the answer? Commission-based sales agents might be a more affordable option for micro and small business owners.

In summary, before slashing your prices in a bid to stimulate business, analyse the other components of your marketing mix which can be adjusted to get sales flowing in.

On a final note: It’s paramount to remember that although price reductions can help, it’s often very difficult to raise prices once they have been lowered.

February 2012 will earmark an important milestone for Dymond Institute of Business, with the Institute’s CEO, Russell Dymond, announcing an exclusive and value added alliance with Singapore-based educational provider, Tick 3.

Mr Dymond commented, “We’re extremely excited to announce that we’ve successfully established a bilateral educational partnership agreement with Tick 3. Tick 3 has been providing quality training and assessment in Singapore for the past decade, under the leadership of Managing Director, Ms Florence Yeo”.

Dymond continued, “In 2007, I had the pleasure of working with Florence, during my time at TAFE Open Learning. It was clearly apparent then, that Florence was a highly motivated professional, who placed much emphasis on quality education, coupled with an incredible impetus on client satisfaction. In the latter part of 2011, we embarked on a market development strategy, which encompassed penetrating international markets. Subsequently, Singapore will be the first international region, approved to market and sell our suite of Australian nationally recognised online qualifications,” he concluded.

Singapore students can study the following Australian courses, online:

★ Certificate IV in Marketing
★ Diploma of Marketing
★ Diploma of Business
★ Double Diploma of Marketing + Business

Students interested in undertaking our programs should contact Tick 3 directly, to discuss the course, which best suits their individual needs.

Contact:
Ms Florence Yeo
Phone: 6749 2933
Email: Florence@tick3.com.sg
Website: www.tick3.com.sg

The Diploma of Marketing (BSB51207) is a nationally recognised Australian qualification. Students in Melbourne, Victoria, can now study the Diploma of Marketing course (online) at an incredibly affordable price of just $2,695.

Our (online) BSB51207 Diploma of Marketing qualification for Melbourne residents, reflects the role of individuals who possess a sound theoretical knowledge base in marketing management and demonstrate a range of managerial skills to ensure that marketing functions are effectively conducted in an organisation or business area. Typically they would have responsibility for the work of other staff and lead teams in conducting marketing campaigns.

Essentially marketing is a critical aspect of business development. Many people mistakenly perceive marketing to be simply ‘selling’ or ‘advertising’. The literal meaning of the concept, however, extends much further. True marketing management encompasses: Conducting market research, participating in product development, promotional strategy design, setting market specific pricing strategies, and devising robust distribution channels.

Dymond Institute of Business enables our students’ to learn about these core functions, as well the principles of market segmentation, target market profiling, market positioning and marketing metrics.

What’s exciting is that Dymond Institute of Business offers the Diploma of Marketing to Melbourne and Victorian residents fully online. This qualification follows-on from our Certificate IV in Marketing, which Melbourne students can also study fully online.

While you’re here, read about the other benefits our Institute offers, by clicking here.

What does the Melbourne Diploma of Marketing cost through (online) study?

★ The total cost is only $2,695

Start My e-Course:

Brands: We all have our favourites. Regardless of whether we’re procuring white goods, motor vehicles, sports shoes or toothpaste, we’re often influenced by these products associated trademark.

People generally establish a strong position in their minds’ about individual brands. Although our perceptions vary, they may include connotations such as: prestige, affordability, quality and durability to name but a handful.

Branding, however, isn’t appropriate to every classification of tangible goods or intangible services. Therefore, before deciding to use and register a trademark, it’s vital to consider the product type(s) for which you’ll be marketing.

To underscore the paragraph, above, let’s consider commodities such as pool chlorine and table salt. Whilst these products can most definitely be branded, they are predominantly acquired on the bases of price and convenience. It’s difficult for producers of these products to differentiate their goods from those of competing manufacturers. Why? In terms of the benefits they offer, they’re all pretty much similar. That is, they possess particularly narrow benefit breadth.

But what about product classifications such as household insurance, personal computers, mobile phones and shampoo? While price may still play a crucial role in the consumer buying decision-making process, these products lend themselves very nicely to branding strategies. Why? In essence, these products generally possess a broader collection of independent benefits. Even shampoo, for instance, offers benefits to people with dry, oily and itchy scalps. And certain brands, such as Head and Shoulders, specialise in the removal of dandruff.

Importantly, there are other factors marketers need to consider. A major issue with engaging a branding strategy is cost. To register a brand constitutes only a very minor component of the total investment. Building the brand into a well-recognised label, however, requires money – and lots of it. Time is the other key ingredient. Brand recognition and the inherent equity which comes with a sought-after brand doesn’t materialise in the short term. In-fact, without copious doses of these ingredients, it’s unlikely the brand will ever gain an iconic status.

For the reasons stated above, some marketing managers intentionally choose not to implement a branding strategy. Their focus of appeal will, more often than not, revolve around no frill consumer benefits discussed earlier in paragraph four, including speedy delivery, lower prices and convenient availability.

IP Australia is the government agency responsible for administering trademarks, patents and designs in Australia. You can also check to make sure your desired trademark isn’t already the registered property of another person or organisation. This action can be performed through their Australian Trade Mark Online Search System (ATMOSS).

Online Marketing Courses

-

Thinking about a career in Marketing Management?

★ BSB41307 – Certificate IV in Marketing
★ BSB51207 – Diploma of Marketing
★ BSB60507 – Advanced Diploma of Marketing (RPL only)

A career in marketing can be a highly rewarding. Let’s face it: researching market data, creatively developing goods or services, including brand management, implementing carefully considered pricing tactics, designing distribution channels, and effectively promoting these goods is a challenge for any business. Get the marketing mix right and the results can be handsome. Get the ‘mix’ wrong, and the outcome can spell devastation for the business.

Today, more than ever, marketing managers are being held accountable for their actions. And so they should. Businesses exist to make a profit, don’t they? Consequently, business managers are demanding a measurable return on their marketing investment. Stop for a moment and consider the communications mix, as a single element. Marketers need to be able to select communication mechanisms, which effectively inform, persuade and remind customers about their products’ – all within budgetary constraints. Now consider the communication mediums available for use. We have advertising, personal selling, sales promotion, publicity relations and publicity. Under the category of advertising, alone, there’s a plethora of communication vehicles. There’s outdoor advertising, indoor advertising, broadcast, print, and digital. Which ones would you engage for optimum sales and profit success?

Choosing the right online marketing course needn’t be difficult

In Australia, we have a number of marketing qualifications available at different AQF levels. This means that school leavers, mature age learners, and even highly experienced marketing professionals are able to select a marketing course that suits their level of knowledge and skill.

Let’s have a very brief look at these qualifications. We have the Certificate IV in Marketing, which is an ideal qualification suited to entry-level marketers. Next, we have the Diploma of Marketing. Graduates of the Diploma of Marketing would typically have responsibility for the work of other staff, as well as leading teams in conducting marketing campaigns. At the upper end of the spectrum, the Advanced Diploma of Marketing is ideal for experienced marketing practitioners.

A look at our online marketing courses in greater detail

Dymond Institute of Business delivers the following nationally recognised marketing qualifications. Click onto the links, below, to read more about our training organisation’s courses.

★ BSB41307 – Certificate IV in Marketing
★ BSB51207 – Diploma of Marketing
★ BSB60507 – Advanced Diploma of Marketing (RPL only)

Recently, a prospective client asked me why she should study marketing, as opposed to business management. And in retrospect, it’s a question that more people should ask.

A staunch believer in being passionate about whatever one decides to commit to, I answered the client’s question with a question. “Are you interested in the field of marketing?” Having replied: “Yes”, I decided to convey my thoughts on why marketing is an excellent area in which to study. So I thought, in this week’s blog, I’d share five of my main reasons with you.

Reasons why you should consider study in the field of marketing:

1) Whilst I enjoy the vast majority of business facets, marketing, in my opinion, is one of the most exciting. It stimulates lateral thinking and creativity.

2) Marketing involves management, so learning to manage per se, comes with the responsibility of being a marketer.

3) Despite common misconceptions, marketing isn’t simply advertising or selling. It also includes: sales promotion, publicity, public relations, product development, packaging, price setting, and distribution decisions. Marketers, therefore, are responsible for developing a mix of these, capable of yielding the best result for their firm.

4) An education in marketing enhances employment opportunities. How? Quite simply because, apart from goods, services, places and ideas, people can also be marketed. The principles of marketing, therefore, can be applied to you and your resume’, giving you a competitive advantage. In its most basic form, marketing revolves around satisfying customer wants and needs. And these are something employers also have!

5) Management, human resources and accounting, are all brilliant fields of study. Without marketing, however, sales and the all-important revenue and profit, which we all expect to follow a healthy business environment, are likely to be minimal. Of course, this gives us less to manage. Not to mention, less to count.

At the Dymond Institute of Business, we offer a clear, logical and sequenced pathway into this specialised field. From our entry level Certificate IV in Marketing, to our highly popular Diploma of Marketing, through to our Advanced Diploma of Marketing for seasoned practitioners.

If you’re considering online marketing study, but are a little hesitant, our new Marketing eBook is the perfect way to try online study before enrolling.

The registered training organisation’s CEO, Russell Dymond, revealed today that the RTO has successfully established a new distribution business for 100% natural energy drink. The new business, which has been named Liquid NRG, has been appointed by the Australian importer of Pussy Drinks to grow the brand and distribute the beverage in Queensland.

“This is a golden opportunity for Dymond Institute’s Business and Marketing students to apply their learning, knowledge and skills, to a real life business, as opposed to simulated business scenarios,” Dymond stated.

He continued, “Of course those students who are currently employed, and wish to base their learning around their own workplace, will be fully encouraged to do so. The Pussy Drinks option, however, will enable our students – I.e. those who are not currently employed, to develop product, pricing, promotional and distribution tactics, as well as strategic direction for this exciting and progressive brand, operating in the fiercely competitive fast moving consumer goods (FMCG) sector.”

This opportunity is open to new marketing students, undertaking the RTO’s Certificate IV in Marketing and Diploma of Marketing online programs in 2012, Dymond concluded.

The website for the new business can viewed by visiting: www.liquidNRG.com.au

There’s more to marketing than developing, pricing, promoting and distributing goods or services to our customers’.  Modern marketing also embraces internal communications as well.  That’s right, the decisions we make, and the actions we take, impact upon our internal stakeholders.

Let’s take a closer look.  Consider a carmaker’s introduction of a new sports car. To the automotive manufacturer’s board of directors’, the release of the new model might represent a genuine opportunity for penetration into a lucrative new market segment.  On the other hand, production line employees might see the new vehicle as an opportunity for additional shift work.  While the company’s sales force will probably see potential for a spike in commission earnings.  The organisation’s stock controller, on the flip side of the coin, may simply see serious issues in terms of warehousing and the lack of available storage space.  These examples illustrate that our internal colleagues don’t all see the same picture.

The message we deliver to each stakeholder group, therefore, should be customised if we truly want each department to fully support our ideas or strategy for change.  The messages we deliver need to be relevant to each target’s area of responsibility.  Furthermore, messages should be conveyed in a manner that aligns with the audience’s job responsibility, their language, literacy and numeracy skills.

But where do we start?

The answer to this question tracks back to the philosophy behind the marketing concept.  That is, to satisfy our customers’ needs.  Internal stakeholders are also our customers.  And they’re vital to the success of many firms.  These people all possess their own specific needs and requirements.

If we follow the same scenario, what would the carmaker’s accountant be seeking with the introduction of this new vehicle?  Would he or she actually be interested in the marketing department’s new advertising campaign, or the sporty little number’s carbon fibre chassis?  Or would the projected costs, anticipated revenue and profit margin forecasts be of interest?

What’s the best method for delivering our message?

The communication vehicles we use to transmit our message to the target audience is also crucially important. Basically everyone has a different learning style. Some people learn by listening (auditory learning), some by watching (visual learning), and others by means of actually doing (kinaesthetic learning). Therefore, a message targeted toward engineers, for example, could perhaps be best delivered by implementing a hands-on, participative approach.

Similarly, if the firm’s marketing department wanted to convince its board of directors’ to substantially increase its marketing budget for the new financial year, a brief email to, or an informal discussion with the organisation’s the Managing Director, is likely to be ineffective. Thus, more detailed and engaging communication vehicles will be necessitated.

Planning your internal communications using our free template

I’ve created a Stakeholder Communications Strategy template for free online download.  The pro-forma has been created using Microsoft Word.  Therefore, the fields and examples provided can be modified to fit your organisation’s internal stakeholder structure.

The concept of internal marketing communications is important to entry level marketers, as well as those who function in a senior marketing management role.

Consumers want competition

Competition’s an incredible force.  Consumers want sellers to have competition in order to keep prices affordable.  Although some managers might strongly disagree with me, businesses need competition to avoid becoming complacent.  In a nutshell, competition stimulates innovation and assists in terms of keeping inflation under control.

eBay’s sales eroded by social media giant, Facebook

eBay has long been the market leader in online auctioning.  There’s no denying the fact that eBay has done a terrific job.  No organisation has come close to seriously threatening the online auction house’s stranglehold on their occupied market.  Well, quite possibly that’s about to change, courtesy of Facebook.

It’s quite possible you’re familiar with Facebook Group(s).  Recently my wife joined one of these Groups at the recommendation of our neighbour.  As it turns-out, the Group, named Redlands Facebook Garage Sale, is sparking significant interest amongst geographically confined buyers in the Redlands district.  And upon further investigation, this is not the only Group of its kind.

How do they work?

With no listing fees or commission to pay, they’re proving to be effective marketing channels. Not to mention, more lucrative for sellers.  These groups don’t operate as intermediaries, they’re simply functioning as free-of-charge promotional vehicles.

Members are listing all sorts of goods for sale, and are purchasing all kinds of products through the popular social networking site.  And because goods sold are generally purchased by buyers in the Group’s geographic precinct, there’re no postage charges to pay.

Do they actually convert tyre-kickers into buyers?

I had to admit I was a little sceptical at first, but this changed about 2-hours after my wife listed her first item for sale when a buyer lobbed on my doorstep.  And sales success didn’t stop with this sale.  We’re virtually being bombarded with qualified and cashed-up buyers, daily.

Could micro and small businesses effectively use Groups to sell goods?

I’d suggest so.  Of course, this would depend upon the type of goods being sold.  Furthermore, fit with the firm’s positioning would also be a major consideration.  And, to be honest, I can see no reason why intangible services, too, cannot be sold using this communications mechanism.

Customers – they’re an absolute necessity for business success. Likened to the oxygen we need to survive, customers are an essential ingredient for business health and sustainability.

However, the lack of emphasis some businesses place on the value of customers’ is astonishing. Of course, most organisations claim to be client-focussed, but in reality this is often nothing more than a misguided belief.

As an educational provider, my students are my customers. It’s pretty straight-forward really. Without them, there’s absolutely no doubt my organisation would fail.

So what actually constitutes superb client care? Well, this varies dramatically from one business type to the next. Providing swift responses to customer queries, timely quotations, regular follow-up calls, efficient invoicing and freely-offered help when things go wrong, are just some of the most basic customer care strategies.

Are customers always right? The short answer to this frequently debated question is no. To substantiate this, let’s consider a medical general practitioner’s patients. A person with a sore throat might decide to visit their GP. The doctor will diagnose the illness, and will then prescribe an appropriate treatment. For arguments sake, let’s presume that the doctor prescribed simple bed rest. The patient, however, might disagree with the diagnosis and demand a course of antibiotics. What if the GP rejects this demand? Is the doctor providing sub-standard client care? On the premise that the doctor’s diagnosis was correct, I’d suggest not.

The example, above, doesn’t mean that doctors are exempt from the philosophy of customer care. To illustrate this, a few years back, my wife was suffering from a sore shoulder and visited our local medical surgery. A busy practice with six GPs, all but one doctor had a substantial queue of waiting patients. Not wanting to wait, my wife expressed her willingness to see the GP who was sitting idol.

What an amusing experience that was! The doctor asked, “What brings you here today?” My wife responded, “It’s my shoulder, Doctor – it hurts when I rotate it.” The doctor’s advice was, “That’s easily fixed – simply don’t rotate your shoulder”.

Needless to say, we haven’t, and won’t, see that doctor again. Yet whenever we visit the medical surgery, the same doctor is scratching at the patient in-tray, scouring for patients just bursting to see him. Of course there are none. As intelligent as he may be, he hasn’t yet determined why.

This week we’ll discuss a marketing concept, which every business must deal with at some point or another.

The product lifecycle curve (PLC), as it’s known, depicts the lifeline of a given product. In the same way human beings have a certain life span, the lifeline of products also differs, from one to the next. Similarly, there are things marketing practitioners can do to extend a product’s life, or shorten its existence if, for example, it’s not profitable.

First, let’s have a look at the PLC curve’s composition. One interpretation portrays the PLC as having six stages, as itemised, in the following paragraph.

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline
6. Abandonment.

It’s important to realise that the PLC curve isn’t static. The shape of the curve, therefore, will typically alter for each product. In fact, the lifecycle of some products may be as short as a day. Thus, this can transform the curve into an almost-triangular shape. An exclusive, architecturally designed home, designed and sold to a single buyer is one such example.

In the scenario provided, the home is designed for a single buyer. It is then introduced to the market, experiences immediate uptake, and then dives immediately into the decline stage of its lifecycle, because it cannot be sold to anyone else.

To better explain the concept, I’ll insert a curve in the following section, labelling each of the six phases. Take a few moments to reflect upon one of your products’. What could you do to accelerate its speed into the growth stage, or lengthen its duration of maturity?

Here’s a link to a free product lifecycle (PLC) template I’ve developed. You’re welcome to use the pro-forma to toss around a few ideas.

Writing attention-grabbing flyers, letters, proposals, web copy, and advertisements, isn’t easy. Indeed the task of writing persuasive text copy requires in-depth thought, time and a stiff injection of effort.

Advertising professionals often follow a model in the creation of their persuasive messages, known as the AIDA formula. The acronym represents Attention, Interest, Desire and Action. The AIDA format suggests that persuasive copy should grab the reader’s attention, secure their interest, stimulate their desire for the good or service, and lastly, to motivate them to take action – for example, to place an order.

So how do we go about the task of grabbing the reader’s attention? Usually a bold headline, often asking a thought provoking question, or making a striking remark, is the chosen method. Integrating photographs or images can also enhance the attention-grabbing capability of our messages. In fact, some advertisements are highly successful, with minimal text input.

Secondly, there are many ways we can secure a reader’s interest. Advertising specialists use an array of methods, including: visual stimuli, celebrity endorsements, extended warranty offers, pricing specials, or something uniquely different to what the buyer would typically expect.

Third, desire for the good or service is stimulated, primarily through communicating the core benefits of the good or service. Remember, we spoke about the immense importance of the core product last week? The key consumer benefit, as we discussed, should be the focus of appeal.

Lastly, our audience should be encouraged or motivated to take action. We can do this by including a contact phone number, an email address, and possibly a website URL. In addition to this, however, nominating a response date, and utilising instructional verbs, such as act now, call now, or contact us today, can be very beneficial.

The Australian law system is a complex beast. In a literal sense, it’s a highly dangerous minefield for every business, regardless of size.

Legislation tightly cocoons our business operations and practices. While there are many activities we can engage in legally, there are many more we simply cannot. Therefore, it’s incredibly important to understand our legal obligations and the rights of our customers’.

Learn from my mistake

Many moons ago, I was fortunate enough to snag a sales representative position with a multi-national, high profile sporting goods manufacturer. I was young (17-years old) and eager to demonstrate my worth to the company in my role as a junior rep.

Unfortunately though, youth and exuberance cannot replace wisdom. In hindsight, I had inadvertently engaged in some, well, dubious activities! And they were all for the mighty sale.

For instance, certain tactics that seemed harmless were in reality contravening the Trade Practices Act 1974, at the time. As a single example, I clearly recall an occasion whereby I had encouraged one of my retail client’s to promote a new footwear line as a table special using the old ‘was, now is’ pricing tactic. My recommendation was to purposely, yet falsely, advertise this style as a red-hot special. The problem was: this wasn’t a reduced price at all; it was simply the normal suggested retail price. Without being aware, I had engaged in false, misleading and deceptive conduct – a serious offence.

I consider myself fortunate I avoided capturing the attention of the Australian Competition and Consumer Commission (ACCC). Had I been caught, the penalties would have seriously damaged the financial position of the Company. At the time, my personal liability could have been in the vicinity of $100,000. And to be honest, that would have crippled me.

A snippet of illegal practices to avoid

Practices, such as colluding with other manufacturers or suppliers (at a horizontal level), to raise prices are also strictly prohibited under the Act. This is known as price fixing, and is frowned-upon because consumers are being disadvantaged by artificially inflated prices.

Another form of price fixing referred to as resale price maintenance also contravenes the Act. This vertical variance involves stipulating that resellers must sell one’s goods at a specified price point. This behaviour is illegal. It’s okay to suggest recommended retail price points, but enforcing them is deemed to be, once again, an anti-competitive practice.

Contravention of industry codes, exclusive dealings, mergers, acquisitions and unfair (unconscionable) contracts are also vigorously regulated by the ACCC.

While business owners are not expected to be lawyers, they must make themselves aware of practices, which are prohibited under consumer protection legislation.

The Australian Competition and Consumer Act 2010

On 1 December 2010, the Trade Practices Act was replaced by the Australian Competition and Consumer Act 2010. The new Act was designed to enhance the welfare of Australians through the promotion of competition and fair trading and provision for consumer protection.

When considering product, packaging, pricing, promotional or distribution strategies, the following link can prove particularly handy. If you’re ever in doubt though, it’s prudent to seek specialist legal advice.

Bookmark this link: http://www.comlaw.gov.au/Details/C2011C00378

There are two categories of conditioning: classical conditioning and operant conditioning. Incidentally, the latter is sometimes referred to as, instrumental conditioning. But what precisely is conditioning? Is it a beneficial marketing-centered concept, or just some useless jargon that’s thrown into textbooks to impress the budding young marketer?

To answer the last question first, without a doubt, the philosophy’s capable of driving demand northward – for both goods and services.

Here’re the basic workings of classical conditioning: We’re all exposed to acts of classical conditioning, daily. To better illustrate this, you may have recently viewed a television ad, for instance, one promoting your favorite food? If that’s the case, did you develop a genuine hunger for the food at that very point in time? Well that’s a prime example of classical conditioning in operation. With classical conditioning, therefore, liking a product precedes trial. Many companies spend mega dollars on promotion, in an attempt to make us yearn for their products’, before we’ve actually sampled them.

Operant conditioning, on the other hand, functions differently. The idea behind this concept is to entice us to try a marketer’s products first, in hope that we like what we try. It is then hoped that we make ongoing repeat purchases at full price over the coming weeks, months and even years. This is often achieved through disseminating free trial samples, or discount coupons offering the product at a substantially reduced price. There’s a good chance you’ve been handed a free can of one of the many energy drink’s in today’s market place? Or perhaps you’ve received a free shampoo sample in your mailbox? These activities are examples of operant conditioning.

Food for thought: The type of conditioning best to use will depend upon the type of product being marketed. To demonstrate this, it’d be unfeasible for a vehicle manufacturer to give away a fleet of cars, in hope that their endeavors’ will stimulate sales output. Conversely, a company specialising in dishwashing detergent, for example, could use operant conditioning to great effect.

Given the nature of your products, which form of conditioning would be best suited to your products and why?