Marketing Without Advertising

296 Pages·2001·2.45 MB·English

3rd edition
Marketing
Without
Advertising
by Michael Phillips & Salli Rasberry
edited by Peri Pakroo
About Nolo
Have a legal question? Chances are Nolo can help you answer it, both in print
aFpnordor obthnlerlmienees .dweitcha dceosn, fNidoelnoc'se ,m a ismsiioninm huams boef efuns tso a hnedl pe xppeeonpslee, saonldv—e twhehiern leevgearl
pOIfonoIaansva nrTdtsi edunmhtdMivhardbophfe a loesedl-loewt en tnrh7deo aso—tnm8 e0 vntaft-f 0 e hsdgodalNrywes,lee te aroe,wgsi o itmcoawpttIoaeenlehernloe-f h nts po l pwd'beet,wets -uah wregl bnopychctneagy, r er koilep aawl-k oe’sen intsve,pnlgd e teav reesferep we soixPdaoeoptuonrmytpripd fbsnmiioeiflene nkeolsaraidngans srs.ldns utt teheiceuaid,rnc doidondtunc t no cyhmd scgeoi oop tn vaduappCiniue vocsretruvrarDa h nalte Wioyilloecsev sna ne te trw bnii9itollPserclileon0Mn e ronatsc s oe lcolcpmate,. d eooaopekDsRau vem sclkoenaaaocari cniffy iftrtwni layosyhc aay-n o.on belg cE lfdtfTnl nlho n ooetw oieahrLhgz ai muttioeliorvdwinoa,rs r is scnfgN hilCae htbdk g asht oe obl eTbhnteb llnoeroaaidop yutds totk s cset yisass ktino,r taotyt .es,fMa'o mn-suo wartc rd rosaptbmogh emikue-beeendde,ts ystarte rwat tttame, ty r eitiwhew o nosayal ene.hikoag nnW ggy oiijudncgdoea t t hegitlbc aaro t ta e llutao lemadnod csls gtso teoowohkaoflnfiy kldseunoye .eldtor.,omkur.
yDtoaenuocdreh scni moothmlpoirspgo umyvt eeee vraa.onlll vwoeuesr pa cnlaudnr rttehone at I bnpatrneodrdnouenct t ose,u xmrp abankodionskg, swy ioenu wpr rialilnc ctc?oe Asnstb itsnoou letu htteeo l ylra ewndo etths. ieAg nsbest
it can be.
“America’s leading source of self-help legal
(cid:1)(cid:1)(cid:1)(cid:1)
information.”
—Y !
AHOO
LLEEGGAALL IINNFFOORRMMAATTIIOONN
OONNLLIINNEE AANNYYTTIIMMEE
22 44
hhh uu rr ss aa dd aa yy
www.nolo.com
AT THE NOLO.COM SELF-HELP LAW CENTER, YOU’LL FIND
• Nolo’s comprehensive Legal Encyclopedia filled with plain-English
information on a variety of legal topics
• Nolo’s Law Dictionary—legal terms without the legalese
• Auntie Nolo—if you’ve got questions, Auntie’s got answers
• The Law Store—over 250 self-help legal products including
Downloadable Software, Books, Form Kits and eGuides
• Legal and product updates
• Frequently Asked Questions
Our
• NoloBriefs, our free monthly email newsletter
“No-Hassle”
• Legal Research Center, for access to state and federal statutes
Guarantee
• Our ever-popular lawyer jokes
Return anything you buy
Q
ualityLaw Books & Software directly from Nolo for any
reason and we’ll cheerfully re-
for Everyone
fund your purchase price.
No ifs, ands or buts.
Nolo’s user-friendly products are consistently first-rate. Here’s why:
•
A dozen in-house legal editors, working with highly skilled authors,
ensure that our products are accurate, up-to-date and easy to use
•
We continually update every book and software program
to keep up with changes in the law
•
Our commitment to a more democratic legal system informs all of our work
•
We appreciate & listen to your feedback. Please fill out and
return the card at the back of this book.
An Important Message to Our Readers
This product provides information and general advice about the law. But laws and
procedures change frequently, and they can be interpreted differently by different
people. For specific advice geared to your specific situation, consult an expert. No
book, software or other published material is a substitute for personalized advice
from a knowledgeable lawyer licensed to practice law in your state.
3rd edition
Marketing
Without
Advertising
by Michael Phillips & Salli Rasberry
edited by Peri Pakroo
Keeping Up-to-Date
To keep its books up-to-date, Nolo issues new printings and new editions periodi-
cally. New printings reflect minor legal changes and technical corrections. New edi-
tions contain major legal changes, major text additions or major reorganizations. To
find out if a later printing or edition of any Nolo book is available, call Nolo at 510-
549-1976 or check our website at http://www.nolo.com.
To stay current, follow the “Update” service at our website at http://www.nolo.com/
update. In another effort to help you use Nolo’s latest materials, we offer a 35% dis-
count off the purchase of the new edition of your Nolo book when you turn in the
cover of an earlier edition. (See the “Special Upgrade Offer” in the back of the book.)
This book was last revised in: April 2001.
THIRD Edition APRIL 2001
Editor PERI PAKROO
Cover Design TONI IHARA
Book Design TERRI HEARSH
Production SARAH HINMAN
Proofreading SHERYL ROSE
Index NANCY MULVANY
Printing BERTELSMANN SERVICES, INC.
Phillips, Michael, 1938-
Marketing without advertising / by Michael Phillips & Salli Rasberry.--3rd ed.
p. cm.
Includes index.
ISBN 0-87337-608-0
1. Marketing. 2. Small business--Management. I. Rasberry, Salli. II. Title.
HF5415 .P484 2000
658.8--dc21
00-056863
Copyright © 1986, 1997 and 2001 by Michael Phillips and Salli Rasberry.
ALL RIGHTS RESERVED. Printed in the U.S.A.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means,
electronic, mechanical, photocopying, recording or otherwise without prior written permission.
Reproduction prohibitions do not apply to the forms contained in this product when reproduced for personal use.
For information on bulk purchases or corporate premium sales, please contact the Special Sales Department. For academic
sales or textbook adoptions, ask for Academic Sales. Call 800-955-4775 or write to Nolo, 950 Parker Street, Berkeley, CA
94710.
Acknowledgments
With special thanks to Soni Richardson and Michael Eschenbach,
Daniel Phillips, Tom Hargadon and Mary Reid.
Full Disclosure Note
All the businesses and business owners mentioned in the book are real. The great
majority operate under their own names in the cities indicated. However, because
some of our examples are less than flattering, and for other reasons, including pri-
vacy, we have changed the names and/or locations of businesses in a few cases.
In some cases, the businesses used as examples in the book do advertise—their
marketing ideas are so good we included them anyway. In most cases, if a business
used as an example does advertise, it is a small part of their marketing mix.
Table of Contents
1 Advertising: The Last Choice in Marketing
A. The Myth of Advertising’s Effectiveness ...............................................1/3
B. Why Customers Lured by Ads Are Often Not Loyal.............................1/8
C. Why Dependence on Advertising Is Harmful......................................1/8
D. Advertisers: PoorCompanytoKeep....................................................1/9
E. Honest Ads .......................................................................................1/12
F. Branding...........................................................................................1/14
G. Listings: “Advertising” ThatWorks.....................................................1/15
2 Personal Recommendations:
The First Choice in Marketing
A. Cost-Effectiveness ...............................................................................2/2
B. Overcoming Established Buying Habits ..............................................2/4
C. BasingYour Marketing Plan on Personal Recommendations...............2/5
D. When Not to Rely on Word of Mouth for Marketing...........................2/7
3 The Physical Appearance of Your Business
A. Conforming to Industry Norms............................................................3/2
B. Fantasy: A Growing Part ofRetail Marketing .......................................3/5
C. Evaluating Your Business’s Physical Appearance................................3/11
4 Pricing
A. Straightforward and Easy-to-Understand Prices...................................4/2
B. Complete Prices..................................................................................4/3
C. Giving Customers Reasonable Control Over the Price........................4/6
D. Internet Pricing ...................................................................................4/9
5 The Treatment of People Around You
A. Tracking Reputations viatheGrapevine..............................................5/2
B. How Employees SpreadtheWord.......................................................5/3
C. Common Employee Complaints..........................................................5/7
D. Handling Employee Complaints..........................................................5/9
E. Finding Out What Employees Are Thinking.......................................5/11
F. Suppliers...........................................................................................5/13
G. Business Friends and Acquaintances.................................................5/17
H. Individuals Who Spread Negative Word of Mouth
About Your Business ..........................................................................5/19
I. Your Behavior in Public ....................................................................5/20
6 Openness: The Basis of Trust
A. Financial Openness ............................................................................6/3
B. Physical Openness..............................................................................6/5
C. Openness in Management ..................................................................6/6
D. Openness With Information................................................................6/8
E. Openness With Ideas........................................................................6/11