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	<title>grokmedia &#124; mediablog &#187; pet food</title>
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		<title>The Secret to Knowing What Sells.</title>
		<link>http://blog.grokmedia.com/2009/02/12/the-secret-to-knowing-what-sells/</link>
		<comments>http://blog.grokmedia.com/2009/02/12/the-secret-to-knowing-what-sells/#comments</comments>
		<pubDate>Fri, 13 Feb 2009 03:29:54 +0000</pubDate>
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				<category><![CDATA[advertising]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[media]]></category>
		<category><![CDATA[As Seen on TV]]></category>
		<category><![CDATA[automobiels]]></category>
		<category><![CDATA[beauty]]></category>
		<category><![CDATA[money]]></category>
		<category><![CDATA[pet food]]></category>

		<guid isPermaLink="false">http://blog.grokmedia.com/?p=366</guid>
		<description><![CDATA[Wanna know a secret? I know how to tell which products are lucrative, without the need for a crystal ball, a time machine, or a magic wand. For those of you around during Watergate, you&#8217;ve heard this aphorism before: &#8220;Follow the money.&#8221; Tell you what. Watch TV for a week, and tally up how many [...]]]></description>
			<content:encoded><![CDATA[<p>Wanna know a secret? I know how to tell which products are lucrative, without the need for a crystal ball, a time machine, or a magic wand. For those of you around during Watergate, you&#8217;ve heard this aphorism before: &#8220;Follow the money.&#8221;</p>
<p>Tell you what. Watch TV for a week, and tally up how many commercials you see for specific products. My unofficial survey shows that there are several product categories that take up a disproportionately large number of commercial time on TV:<span id="more-366"></span></p>
<ul>
<li>Pet food products</li>
<li>Beauty products (shampoo, perfume, deodorant, etc.)</li>
<li>Money products (loans, gold, investments)</li>
<li>Automobiles</li>
<li>As Seen on TV products</li>
</ul>
<p>Kind of a strange, thought-provoking list, isn&#8217;t it? Let me explain each in turn.</p>
<p><strong>Pet food products</strong>, more than just about any other products, are ripe for the influence marketing brings. There&#8217;s an old adage about fishing that applies here. Q: What are most fishing lures designed to catch? A: Fishermen. Unless you&#8217;re really, really weird, you&#8217;re never going to taste dog or cat food. (I&#8217;d say nobody&#8217;s ever gonna taste pet food, but I knew this drummer who used to eat canned dog food on crackers.) Since you&#8217;re never going to eat it, you are really buying the <em>marketing</em> of pet food. But there must be some BIG bucks in this market. I mean, you&#8217;re essentially selling things like &#8220;beef and beef by-products&#8221; (read: all the parts of the cow that no human would willingly put in their mouths&#8230;cow anus springs to mind). It&#8217;s not hard to see that marketing plays a huge role in selling this stuff.</p>
<p><strong>Beauty products</strong>. Lots of money there. What marketers are really using is the ol&#8217; FUD factor: Fear, Uncertainty and Doubt. Fear, that you&#8217;re ugly. Uncertainty, that you are not doing everything you can do to look beautiful, and Doubt, that you can&#8217;t get there without outside help. In BeutyLand, it&#8217;s all about the marketing. Boil it down, and you&#8217;re really selling soap, moisturizers and perfume. What makes one shampoo worth a dollar per bottle and one worth ten? Marketing. And if one company can sell a bottle of shampoo for a dollar and make a profit, realize that there are HUGE profits in ten dollar shampoos.</p>
<p><strong>Money </strong>is weird. It costs money to borrow money. It costs money to buy money. It costs money to buy things. Money is expensive. But it&#8217;s still just&#8230;well&#8230;money. The one who sells it is the one that gets the vig on the sale. Marketing convinces you that one money vendor is better than another. There may not be a lot of lending going on right now, but the margins are so attractive (selling a commodity with profit margins tied to the perceived value of the marketing message), it&#8217;s worth trying.</p>
<p>There may not be a big profit margin in American <strong>automobiles</strong>, but that&#8217;s not because there&#8217;s no money to be made selling cars. It&#8217;s because of how screwed up Detroit is. Look at one of the Japanese companies, and you&#8217;ll see that there&#8217;s plenty of margin to go around &#8211; for a well-run company. The average profit per car is not too shabby.</p>
<p>When you see some State Fair-style pitchman hawking something, you can be sure of a couple of things &#8211; that the products are cheap to make, have some serious markup, and you can find &#8216;em cheaper from other sources (largely because you&#8217;re paying for the TV spots&#8230;hey &#8211; SOMEbody&#8217;s gotta). Is &#8220;ShamWOW!&#8221; any better than a generic shammy? I doubt it. But they make you feel like an idiot if you buy Brand X. <strong>As Seen on TV </strong>is your clue that you&#8217;re paying for some serious marketing markup.</p>
<p>What does this mean to you and your marketing? Well, if you&#8217;re selling one these products, you need to be nice to your marketing guys. If you&#8217;re marketing them, you need to realize you&#8217;re in the driver&#8217;s seat. And if you&#8217;re buying these products, you need to realize you&#8217;re paying for all that marketing. And when you want to look for opportunities, take a tip from Woodward and Bernstein &#8211; follow the money.</p>
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