Is intoxicant a stimulant or is it a depressant?
If you visit well-nig any bar and grill on a Friday night after work, you would swear that intoxicant was a stimulant. The noise and laugh are strong evidence of intoxicant's stimulating effects. Yet at 4:00 in the morning, when you see few happy-hour customers sleeping it off in the streets, you would swear that intoxicant is a depressant.
Chemically, intoxicant is a strong depressant. But in the short term, by depressing a person's inhibitions, intoxicant acts like a stimulant.
SEMRUSH AFFILIATE PROGRAM
Many marketing moves exhibit the same phenomenon. The long-term effects are often the exact opposite of the short term-effects.
Does a sale increase a company's business or decrease it? Obviously, in the short term, a sale increases business. But there is more and more evidence to show that gross revenue decrease business in the long term by educating customers not to patronize "regular" prices.
Aside from the fact that you can buy something for less, what does a sale say to a prospect? It says that your regular prices are too high. After the sale is over, customer's tend to avoid a store with a "sale" reputation.
To maintain volume, retail outlets find they have to run well-nig continuous gross revenue. It is not unusual to walk down a retail block and find a dozen stores in a row with "Sale" signs in their windows.
Have the machine rebate programs inflated gross revenue? The rise of auto rebates has coincided with a decline in auto gross revenue. U.S. fomite gross revenue have declined for five straight years in a row.
There is no evidence that couponing increases gross revenue in the end. Many companies find they need a quarterly dose of couponing to keep gross revenue on an even keel. Once they stop couponing, gross revenue drop off.
In other words, you keep those coupons rolling out not increase gross revenue but to keep gross revenue from drop-off if you stop. Couponing is a drug. You continue to bang because the withdrawal symptoms are just to painful.
Any rather couponing, discounts, or gross revenue tends to educate consumers to buy only they can get a deal. What if a company ne'er started couponing in the first place? In the retail field the big winners are the companies that practice "everyday low prices"; companies like Wal-mart and K Mart and the chop-chop growing storage warehouse outlets.
Yet well-nig all over you look you see yo-yo pricing. The airlines and supermarkets are two examples. Recently, yet Proctor & Gamble made a bold move to establish uniform pricing which could become the start of a trend.
In everyday life there are many examples of short-term gains and long-term losses, crime being an example. If you a rob a bank for $100,000 and wind up outlay 10 years in jail; you either made $100,000 for a day's work or $10,000 a year for 10 years of labor. It all depends on your point of view.
Inflation, or the recent government stimulant (cash for clunkers comes to mind), can give an economy a short-term jolt but in the end, inflation leads to recession or a Great Deflation as is being older in the U.S. at this time (circa 2010).
In the short term, gula satisfies the psyche but in the end it causes fleshiness and depression.
In many other areas of life (outlay money, taking drugs, having sex) the long-term effects of your actions are often the opposite of the short-term effects. Why then is it so hard to comprehend that marketing effects happen over an extended period?
Take line extension. In the short term, line extension invariably increases gross revenue. The beer industry clearly illustrates this effect.
Look what happened to Coors. The introduction of Coors Light caused the collapse of Coors regular; which nowadays sells one fourth of the volume it used to sell.
In the short term, both brands can co-exist and do well. But in the long term, line extension was bound to undermine one or the other of the two brands. Once the decline starts, it is well-nig impossible to stop.
Unless you know what to look for, it is hard to see the effects of line extension, especially for managers focused on their next quarterly report. (If a bullet took five years to reach a target, very few criminals would be condemned of homicide.
In other areas of marketing, the short-term / long-term line extension effects occur much more chop-chop. Let's look at what happened to Donald Trump. At first, The Donald was thriving. He then branched out and put his name on anything for which the Sir Joseph Banks would lend him money; hotels, casinos, condominiums, an airline, and a shopping center. Many asked, what is a Trump? What does Trump mean?
Fortune magazine called Trump an investor with a keen eye for cash flow and plus values, a smart marketer, a cunning wheeler-dealer. The Donald has been on the cover of many magazines.
At various points in time, Trump has declared bankruptcy. What made The Donald thriving in the short term is exactly what cause him to fail in the long term - line extension.
It looks easy, but marketing is not a game for amateurs.
It takes a piece but many Internet Marketing entrepreneurs recognize marketing effects happen over an extended period and as a result, they use various methods and tools to build relationships with their leads and customers. They build websites that create trust. They collect name and email addresses exploitation an Optin form on a Landing Page. They use email systems with both auto-responders and broadcast capabilities in order to send messages to their leads and customers. These email messages often send information, provide knowledge, and now and again promote an offering. Many Internet Marketing entrepreneurs learn that leads and customers do not like to be sold to yet they will browse and shop. Over an extended period, complete Internet Marketers are able to use hypnotic writing skills, in their marketing campaigns, to get leads and customers to take the action they want. This is how they learn to add value and be thriving in the world that includes the Law of Perspective.
Marketing is not a battle of products. It is all about the scheme you use to benefit from the Law of Perspective as marketing effects happen over an extended period and requires not only perspective but also persistence.
You can find out more about Internet Marketing and home-based businesses by reading updates that will be posted at my blog over the next few weeks.
Finally, a great book to read is "The 22 Immutable Laws of Marketing" by Ries & Trout. It is the source of some of the material provided in that article.
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