Weave a “Freemium” Business Model Element Into Your Consumer Product Marketing Strategy

Weave a “Freemium” Business Model Element Into Your
Consumer Product Marketing Strategy

A 21st century term applied to a decades old Marketing Concept, Freemium has become one of the most popular vehicles for Consumer Product entrepreneurs, Software designers and Marketers to utilize for increasing sales and distribution of their products. The concept in its most modern form is a spin on the Gift-with-Purchase promotion designed by Estee Lauder Cosmetics in the 1960’s and King Gillette with this safety razor and blade refill strategy first used in the late 19th century.

The word “freemium” is a portmanteau, combining the two aspects of the Business Model, free and premium. The idea is to offer a hook, a free good or service to the consumer, with the Sales Strategy being to up-sell the recipient of the free offer to a premium product or service. This concept is powerful, simple to execute and provides excellent results.

The most compelling word in Consumer Product Marketing is “free”. Who doesn’t want to receive something for nothing? Watch retail store traffic when samples or tastings are being provided. Customers flock to the in-store demonstrator providing the free samples. Politicians make their careers by providing seemingly free benefits to constituents.

The word “premium” is evocative of a better lifestyle, luxury product or enhanced version of a staple product. Most people aspire to add luxury to their environment. A bigger flat screen television, a finer French Perfume, imported rare Extra Virgin Olive Oil or Italian-made shoes are basic examples of the types of products that consumers trend toward as incomes expand. People drive a small Kia automobile for transportation. They drive a Jaguar because they want the premium Features and Benefits that Jaguar Marketing details in its Advertising.

Recently we had a client who was attempting to Market a web-service to the portion of the population who were nearing retirement. Our Product Development team collaborated with software designers to create a free “Club Feature” to entice visitors to the web-site to join instantly. We waived the annual $95 Membership charge. Once aboard, Members were offered a menu of Premium Services, also at Club Member Discounts. The result was an amortization of costs against a broad field of income generators. The site was profitable almost from the date it went on-line.

The Estee Lauder inspired Gift-with-Purchase transformed the Department Store luxury Cosmetic industry. Competitors quickly jumped on this creative Sales Promotion bandwagon. However, Estee Lauder enjoyed the most important element in Consumer Product Marketing and Sales; a first mover advantage. The GWP concept launched the Brand into an orbit that has never been lost.

The Gift-with-Purchase (GWP) Promotional Strategy was followed by the Purchase-with-Purchase (PWP). The GWP offers a free sampler of an assortment of complimentary products. The premium is the minimum purchase required to obtain the GWP. If you do not believe that this technique works, just stand in a Department Store Cosmetic department anywhere in the world when a Beauty Product of Fragrance vendor is offering their GWP.

AOL used a “Freemium” program for years to launch and expand their dial-up internet service. Displays offering free software containing AOL set-up data were ubiquitous in stores and supermarkets. The “freemium” was typically a 90 day no cost teaser trial with a fixed monthly service rate kicking in automatically after the gratis period ended. This model worked magnificently for AOL for a number of years and made the Company the “alpha” service provider that most internet customers initially utilized.

Variants of a “freemium” Marketing Strategy are constantly being utilized. Wellness products, Weight Loss Products, Cosmetics, Food and Drink Products, and a wide range of Consumer Services employ some form of a “freemium” in their Brand building Marketing Campaigns. Infomercials often offer a free trail size of the product with the client paying only shipping and handling. Of course, these offers are almost always accompanied with a Negative Option Feature that kicks on automatically unless you remember to opt out.

Free offers work, but in order to provide goods and services there must be an income stream generated by the give-away. Smart Consumer Product Marketers and Services Providers have learned to craft Marketing Programs that include a free offer with a premium up-sell link. Freemium’s have been around for decades, only the word is new.

Qualify Your Business Niche: Ask these Four Questions Before You Develop Your Products or Services

Before you start developing products and services for your niche, you need to know whether this niche is worth pursuing. To find out, ask yourself these four questions and be sure to do the research you need to get the correct answers. Gut feelings don’t count here … you need cold, hard facts or you might spin your wheels going after a market that can’t be profitable for you.

1. Is the target market large enough to sustain profitability?
If your target market is too small, there won’t be enough buyers of your product or service. You can usually find this out by finding an organization, association or other group that your target market might belong to and uncover (at least in ball park figures) how big the membership is.

2. Is your target market hungry?
If you’ve chosen an apathetic market that doesn’t care enough about the problem or desire you’ve uncovered to do something about it, they aren’t going to buy your product or service. This one is more subjective, however a good rule of thumb is to find out if there are currently products and services available to this market. Also, if you can, find out if they are selling. Websites like Amazon and Clickbank can give you insight into this. If currently available products are selling, then you can be reasonably assured that the market is hungry.

3. Is your target market willing to pay enough for your product or service?
If it costs you $10 to produce your product, but your target market is only willing to pay $7 for it, you don’t have a viable product. Since you found some products and services when answered question 2, how much are they charging? Do you see any pricing trends?

4. Do you have access to your target market?
Is there a place where members of your target market congregate? If not, it might be difficult to get your message to them. If you were able to find an organization, association or other group that your target market belongs to, will they let you contact their membership? Is there a publication that your target market reads that you could advertise in? Is there a list of members of your target market that you can rent or purchase? Is there an active online forum you can join and participate in?

If the answers to these questions turned up a big dud, be thankful that you didn’t put a lot of work into a product or service for that market. It cost you a lot less to do this research before development, than it would if you had a product you couldn’t move.

Promote New Products & Services with Mass Email Sender

Sending Bulk SMS (or Email Marketing) has become a preferred choice for businesses these days. Earlier, telemarketing was considered as a popular marketing method; but, now email marketing is replacing those traditional telemarketing calls, which could get very bothersome at times. Email marketing is a good technique that can help you save lot of time and money, since single message can be sent to multiple sources and through one sender ID only. How? With the help of Bulk Email Sender! Many target audiences can be covered, to whom information about new launch can be sent with few mouse clicks, rather than making so many calls. Customers also do not like to attend many calls from many service providers… they prefer receiving emails instead. Emails help to keep in contact with clients without interfering much in their privacy. You can send any and every information in you emails, like brochures, monthly newsletters, information about new products and services started, and packages offered for promotion of the products.
Sending mass emails via Mass Email Sender is even more important for newly-launched businesses. You can form a message, including all information about your products and services, and send it to a long list of email addresses. This list of email addresses can be generated by email generator software tools available in the market. You can also do it manually, by opening each and every website according to your business niche and finding email addresses on them… it will be little tiresome doing it manually. Anyways… it is up to you to decide.
Now let’s discuss how mass email sender makes a difference in marketing. Imagine you have a list of thousands of targeted clients. If you choose telemarketing as your marketing option, you and your team will have to waste so many days to make calls to all those clients. Moreover, you will feel so irritated speaking one and the same thing again and again for all clients. And, where is the time to perform other tasks? You don’t have just one work of informing clients about your products… there are many other tasks too. With an automated email sender, you can send up to 50,000 emails on hourly basis… with few mouse clicks and without much effort.
What are you thinking now? If cost is an issue, please make it clear that many email sending software tools are available at affordable prices. For complete satisfaction, try out free test versions of these products.

Availing Expert Web Designers’services for Business Promotion

Business world has dramatically changed with the advent of computers and internet. Modern business world has grown to be highly competitive and challenging with the entry of many private players, diversification of numerous large business companies as well as the increasing resources constraints.

In this era of cut throat competition when business companies are increasingly facing challenges to grow and make progress in-spite of numerous obstacles, the only respite is the use of sophisticated tools and technology and streamlining the customer services with them which promises better progress and leverage. Designing a good and exclusively powerful website which specifies all the features and USPs of the companies is the first and foremost requirement of any business company to start online business.

Business companies often seek for the expert services of professional and experienced web designers who will design and develop websites catering to the specific business needs and requirements of the executives. Then these websites need to be hosted on the internet which again need to be optimized by Search engine optimizers. Getting all these services separately by freelancers is fraught with many risks of business losses and others hence business executives seek for the services of a reputed Internet agency which employs professional web designers, search engine optimizers and other software professionals.

Now with the rapid popularity of smart-phones leading to its extensive use it will be fool-hardy not to provide the business services through these iPhones and iPads. As customers always have more than one alternative hence they may at any time switch to different companies or service providers when they experience any difficulty in procuring their desired products and services.

The iPhone programmers through ipad programmierung will make the websites of their clients compatible with these smart-phones and thus enable the customers to avail the required products and services through the touch-pad of their mobiles. Besides this the business companies and other clients depending on their specific business fields may get particular iPhone App developed which will further streamline the provision of the services or strengthen customers’ relationship with the companies.

The iphone programmierung will thus enable the clients, professionals or business executives to use mobiles as powerful promotional tool for their offered products and services. This will thus facilitate them to reach their target customers quickly and promote their business products and services on a very large scale thereby maximizing business revenues and progress. With the new App it will be easy and convenient for the customers to compare the price and other service features of various companies and then select the best and highly affordable one which provides them the maximum benefits in terms of service- value and price.