Alternative Marketing Strategies Successful Entrepreneurs Must Consider

The hundreds of entrepreneurs, inventors and small businesses that approach my marketing consulting firm each year with new product ideas all confront the same, basic hurdles in attempting to achieve commercial success. Issue number one, they perceive, is how to fund the project. Issue number two, how to market their product.

Let's review the marketing options. Invariably, the bulk of the entities we work with approach marketing with the belief that they need to immediately place their product in big box retailers. This is a laudable long-term goal, but almost always would be the kiss of death for new products and startup companies.

Big box retailers are exceedingly demanding in requiring huge levels of logistical support. The technology required to simply process orders, data entry, shipping, receiving and billing is highly technical and specific to each chain. The software and systems required to communicate with these giants can be prohibitively expensive for new, small vendors. These are just the logistical hurdles. The sell-through and marketing challenges are much more difficult to conquer.

The alternative to running off to Best Buy or Wal-Mart is to utilize "guerrilla marketing" strategies to mitigate expense, lower risk and insure that the new product has a fair opportunity to achieve success. In recent years we have begun to use a "backdoor strategy" to push products into big box store distribution without confronting the up-front challenges that are so daunting for new companies.

Here is an example. Recently we had a dentist approach our consulting firm with a very novel stylized toothbrush. He had deduced from his dental practice that people typically did not brush for three minutes, twice daily, as recommended by the American Dental Association. They really did not know how long they brushed, but the gum and tooth problems he was confronting in his patients indicated they were not brushing enough each day. His new toothbrush was cleverly designed to address this deficiency in oral wellness.

The dentist typically wanted us to create a marketing strategy for the toothbrush that would place the units on mass-market store shelves for the launch. We explained the difficulties, risks and expenses involved in such a strategy and why he should consider alternatives. This was when we described the "backdoor" option.

Big box chains have local and regional management structures. Most people believe that all new items are purchased through home office buyers or merchants. For example, Bentonville, AK is the home office for Wal-Mart. Troy, MI is the buying office for K-Mart. JC Penney is bought out of Plano, TX. Walgreen is located in Deerfield, IL. The Kroger Company is located in Cincinnati, OH.

Each of these, and other national chains in every retail category, have local managers that have the authority to bring product into their doors on a local basis. Few people realize this. These local, regional managers can cut purchase orders and by-pass the national buying process that can be so vexing.

We packaged the novel toothbrush, had our graphic designer create a pop-up shelf display with a header card, created sales collateral and presented the item to the regional manager of a national drug store chain. He was responsible for 36 stores in two southeastern states. He loved the item and even commented, "we love to show the home office that they miss on too many neat products". We left the meeting with a hand written purchase order for 144 pieces of the toothbrush for each store.

To support the launch of the product we wrote copy for a 30-second television spot with a tag for the drug chain. We went to the local cable television studio and they produced the spot for nothing, in lieu of our buying a small cable spot schedule. The dentist, in his smock, was the on air expert detailing the product.

The product was shipped to the 36 individual stores and the regional manager had forwarded a merchandising directive to each store manager. He advised the product was scheduled for delivery, end cap display was to be provided and that there was cable television buy to support the launch. We hired a college student to get to the stores and make sure the merchandise was prominently displayed and rotated.

Every few days we checked in with the regional manager and he provided sales updates. Within a week, he was able to project turnover and re-order needs. As soon as we secured re-orders, we had the regional manager call the home office with his sell-through report. Within two months we were invited into the buying office for a corporate presentation and to plan a national product launch.

We have used this "backdoor approach" a number of times with different products in different retail channels. It works. Local managers love to take successes, their discoveries, to the home office to prove their mettle. Our clients are in a much stronger position to negotiate terms with national retailers when we have already proven sell-through success on local, test market basis. It also enables us to extrapolate chain wide sales projections based on hard numbers, not best guess assumptions. This is a powerful strategy and many more entrepreneurs should take advantage of this approach that mitigates their exposure.

Licensing, bootstrapping, partnering, joint venturing and receivable financing/factoring are other alternative strategies that can be employed to launch new products. The most successful entrepreneurs overturn every stone to find the one route that will get their idea into play. Keeping all options open is essential if you are to realize your goals.

Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.

After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.

Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. (http://www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.

The Hillary Clinton Stock Market and Economy - Three Areas to Consider

I would like to remind the reader of the last time in our country's history when taxes, unemployment, and inflation were extraordinarily high: the late 1970's during the Carter presidency. Inflation was raging and interest rates were in double digits. Many consumers in our economy today do not have vivid memories of that time.

Yet after the 1970's inflationary spiral was broken, at the expense of a severe recession with extremely high unemployment - we have since enjoyed over twenty years of a fundamentally good stock market and economy.

But what if today's relatively good stock market and jobs creating economy were to change? I must admit, I am of the opinion that the winds of inflation may be building a momentum again after all these years of disinflation. I agree with Alan Greenspan's opinion in a CNBC interview that we no longer have the luxury of implementing easy monetary policy, as we did after the technology and stock price bubble deflated after 2000, when deflation was actually a threat.

We have an important election in 2008 that may determine the course of the stock market and the economy in a manner not seen since the late 1970's. Hillary Clinton is the current favorite to win the Democratic nomination - and she is running a liberal, progressive campaign. The Democratic nominee, whoever he or she may be, may win the White House.

There are three areas to consider with respect to why the stock market could decline into a bear market should the economically liberal platform be enacted.

The first proposal of the Clinton campaign that would be anathema to the stock market is the planned redistribution of wealth. Giuliani, in a CNBC interview, actually called this plan an entitlement program for the middle class. This would be in the form of a tax-the-rich-and-give-the-funds-to-the-middle-class policy. This sounds good in theory, but this action would not create a penny of additional wealth or a single new job in our country. The policy simply takes away from one group to give to another more favored group of people. Such a policy could even lower the amount of wealth in our country, as those businesses that are creating jobs might make less money - especially small businesses that may have to lay off workers because their taxes are higher. The economy, and consequently the stock market, could suffer.

To give an example in industry of a possible redistribution policy, an obvious target of the Clinton campaign has been the almost universally hated oil and gas industry, which the Senator believes makes too much money. In fact, I saw an excerpt of a Clinton speech on TV that the senator wanted to "take that money" and I suppose give it to a more favored group of people or industry. This action would amount to an expropriation of assets and would reduce employment in the oil industry. The stock market could react badly to that.

I would like to point out that there have been times in the history of the oil and gas industry during which these companies have been in a depression - but they were not bailed out. But even such a hated industry as the oil and gas industry is capable of creative movement. Fortune magazine reports that Royal Dutch Petroleum has been investing heavily for years in scientific research to produce oil from shale in America. Fortune reports that there is a potential production of 300,000 barrels a day - and it would be profitable at $30 per barrel. They further report that Royal Dutch's technology is supposed to be way ahead of their competitors, with the company holding some 200 patents.

Royal Dutch seems to think those years of heavy investment in research and development will pay off in the near-term horizon. They would also plan to build the first new refinery in the U.S. in decades. Heavy taxes on this industry could discourage new investments such as the Royal Dutch project. The end result would be more energy dependence.

The second idea of the Clinton campaign that would hurt the stock market and the economy is the re-regulation and regulation for the first time of major industries in our economy. If an unfettered industry is seen as making too much money, then it might be a target for being regulated, which inherently makes the industry less creative, vibrant, profitable and flexible (with concurrent less ability to withstand economic shocks and adapt to changing economic conditions).

Alan Greenspan, in a speech reported on CNBC, attributed the flexibility of our economy as one reason why we have not had such deep recessions in recent years. While one sector of the economy is under water, other sectors can pick up the slack and prevent a recession from becoming damaging. But, if employees are tied by regulation to industries that are no longer competitive, then the overall economy would be hurt - those workers would not be retrained for the emerging new industries of the future. The economy would be more rigid by definition and we might experience a declining standard of living as older regulated industries would not make it in the global economy and become obsolete. Like it or not, our capitalist economy works best as a self-correcting mechanism, with new industries supplanting the old.

An industry which could suffer a decline in employment and innovation because of regulation is also a target for criticism: the drug and medical devices companies. We all remember Senator Clinton's early 1990's health care plan, crafted behind the scenes, which really would have been "government run healthcare." The Senator never apologized for that failed attempt at healthcare nationalization, but even now blames her former opposition. The healthcare sector in the stock market at that time fell out of bed while the Clinton plan was being propagated. If nationalized medicine were to become a threat again, that poor action in the stock market could be repeated. So far, the Senator's "American Health Choices Plan," as smoothly explained on the Clinton campaign website, seems on the surface pretty innocuous. But it also would be extremely expensive, perhaps tempting Clinton (if she were elected) to revive her previous ill-considered plan.

I believe that there must be a way to insure the uninsured for hospital stays, doctor visits, pharmaceuticals, etc. without uprooting the entire system. I think one question that is not being discussed is whether a Clinton administration would propose to control drug prices. We have had experience with price controls under President Nixon, and it just produced shortages of goods. There could be shortages of essential medicines if price controls on drugs make it less profitable to invest in the research it takes to develop and produce them. A less profitable atmosphere for the drug industry means fewer drug companies and fewer drugs being invented. Why should entrepreneurs launch new drug companies pioneering new science when their prices are to be controlled and profits regulated?

The fact is that the pharmaceutical industry is not the problem - they are the solution. A pharmaceutical company might spend one billion dollars and two decades developing an important drug that can save lives and keep people from costly stays in the hospital. If artificial controls are placed on the drug's price, then it actually may not be profitable for the company to develop new drugs in the future. They could fire researchers and other employees to cut costs. Since over 90% of all new pharmaceuticals are developed in the US, health care costs would likely go up as new cost saving cures would not be developed.

Drug companies have invented life saving medicines that have kept tens of millions of people out of costly hospital stays, and saved and extended many lives. I believe these drugs are an extremely cost-effective solution to illness and disease - and I do believe all private insurance should cover prescription drugs liberally.

The third area of a possible Clinton presidency about which one must be concerned if you are a stock market investor or simply a taxpayer, is free trade. An open trade system has allowed our country to prosper in the last two decades. Granted, currency manipulation on the part of a trading partner (such as China) is not free trade - but most of our trading partners and the newly emerging eastern European economies are adopting lower taxes and free market policies. It is a shame that the liberal wing of the Democratic Party has not received that message and is indicating a path for this country that may bring our economy and our stock market back to the past economic policies of the 1970's.

The outcome of the 2008 presidential election will do much to determine the outlook for the economy and the stock market in the next several years. Regardless of who wins, the second year of the presidential term is usually poor for the stock market, as the policy makers make the economy take its medicine early on in the term.

The Federal Reserve, in its current easing mode, should encourage the stock market until the months before the election, when it will be clearer who the victor will be. At that time, the stock market's future direction will be determined by the degree of wisdom of the victor's economic policies, and, of course, Federal Reserve policy.

I was first exposed to financial markets when I started reading the stock quotes out of the newspaper to my businessman grandfather, who was legally blind, when I was about ten. I remember Papa always told me: "Buy Triple A" (the best stocks). Later, I studied economics at both Vassar College and Columbia University, where I became intrigued by the link between psychology and economic theory. My current e-book, A Way to Wealth - the Art of Investing in Common Stocks, is available at my website, http://www.ReiznersWay.com.

This article contains the opinions and ideas of its author and is designed to provide useful information to the reader on the subject matter covered. The author may or may not have current positions in the investments mentioned in this work, and the author may from time to time make investments in a manner that is not described here. Past performance is no guarantee or prediction of future results and any investments made, based on the opinions and ideas contained in this work, may or may not be successful. The strategies contained herein may not be suitable for every situation, and the author is not engaged in rendering legal, accounting, investment advisory or other professional services.

Questions to Consider When Procuring Professional Security Services

Why contract out security services?

I can immediately think of four reasons. First is the increased value an outsourced company brings to the table because of its professional staff and experience in the security industry. This depth and breadth of experience and knowledge is offered because of relationships with other clients that have faced the same or different challenges. The second reason is the cost. Simply put, because of the expertise and experience that the vendor brings, the financial weight of training, recruiting, hiring and providing benefits for the employees is considerably less to the client than administering these programs in-house. Third is the transfer of liability from the client to the security company. The security company bears the legal load and ramifications of particular incidents that could occur on your property. Lastly, and in my opinion, most importantly is the peace of mind an effective security company can provide so you the client can focus on the everyday business that defines you as a company.

Why Change Security Vendors?

Change vendors when the value is gone, plain and simple, but you have to know what's valuable to you as an individual client. If you have a small budget and need a low bill rate, know that's what you value. If it's superior management and executive accessibility, than know that's what you value. If it's a vendor that can accommodate a client on a national basis, than know that's what you value. When value isn't there anymore and when your vendor's program no longer represents you as a client anymore, it's time to change vendors. However, certain values have repercussions. Low bill rates will produce low wages. National vendors might not give you specific attention on a local level. And having a phenomenal program with high-end personnel combined with strong management will cost you more. You just have to know what you value the most and work off of that.

What are important things to include in an RFP?

First things first, an RFP must be designed to allow you to compare "apples to apples". This is especially important when it comes to the financial proposal from each potential vendor. To achieve this, the pricing structure must include the itemized list of costs to include wages, bill rate, necessary insurance coverage, employee benefits costs, as well as vendor overhead and supervision structure. A well defined scope of work included in the RFP will allow the vendor to completely understand the "job" requirements and price accordingly. When preparing the RFP, remember the more you specify; the more accurate and comparable the respective bids will be.

What comprises the cost of security services?

The cost of security is found in the difference between the client's hourly bill rate and the guard's hourly pay rate. That difference between bill rate and pay rate is the result of an equation based on the value of particular line items, which vary company to company. Examples of these variable items are liability insurance because it fluctuates due to claims against the individual company. Another is worker's compensation insurance which fluctuates in suit. Corporate and branch salaries, marketing, cost of bidding projects, and rent are examples of general administrative expenses that differ. Paid holidays, paid sick time, medical and dental benefits, and more are also factors. Therefore, it's important to know what the benefits are and how much they cost per individual per month in order for you to make a fair comparison of one company to another. Lastly is profit which will vary depending on the company's prerogative. Whether it's low, high or normal, it is a direct example of their business model. Security is an industry where the quality of service should dictate the cost of the program. Never should the cost of security dictate the quality of service.

What are good questions to ask security companies and why?

Four questions that quickly come to mind are the following: First, Who are your competitors? This is important because you want to know what niche a company serves. This will help you gauge whether they are the correct fit for you and your property. Second, what are the responsibilities of the salesman and his guidelines for selling work? This is important because it will reveal management structure and should address a well designed business model. You want to be treated as an appreciated client and not as a number of hours. Third, how many hours are assigned to the area manager? This question will give you an idea of attention you'll be receiving and how loud you'll have to shout to be heard. Finally, how many accounts has a company lost in the past year? This general question might be the tip of the iceberg in regards to attrition rates, wages, performance, and client satisfaction. The commitment to understanding your needs, defining them in the RFP, and asking quality questions of your vendor to produce a perfect fit is the difference between a long term value-based relationship and starting the process over and over again.

By Nick Sapia

The Guardian Force, Inc.

http://www.tgfinc.com

Nick Sapia is the Director of Business Development and an Operations Manager for The Guardian Force, Inc., a private security and concierge provider in Boston, MA.

A graduate of Northeastern Univerisity, Nick Sapia has previously worked for the Executive Office of Public Safety for Massachusetts, top law firms, and presidential campaigns. He can be contacted via email at nsapia@tgfinc.com or nsapia@sapiacorp.com

Seven Travel Tips to Consider Regarding The Dominican Republic

The Dominican Republic is one of the popularly visited islands in the Caribbean coast. Its capital city is called Santo Domingo and it is a center for governmental, financial, educational and other functions of the economy. The main language spoken by the natives is Spanish. As you search for Dominican Republic vacation packages, you need to educate yourself. The seven most important travel tips you need to consider include the following.

a) The currency - The biggest challenge a tourist could have while touring a foreign nation is the money. The DR money is called Peso and it is symbolized by RD$. A sure way to prepare in advance is using an online currency converter or calculator. Compare the peso against your country's currency to find out the precise value. Look for articles that describe the monetary units for this country as well.

b) How to access money through credit cards - The MasterCard and Visa cards are widely accepted in the country. Even so, you should find out the major ATMs that accept foreign cards in the city you intend to visit.

c) How to shop with your credit cards - Shopping is always an inevitable activity during a trip to a foreign land. You need to know the shopping places that accept payments via cards and how much they charge.

d) Communication - As mentioned above, Dominican Republic's national language is Spanish. Before travelling, you may consider learning the language. If you want to get there as soon as possible, a translator is a good option.

e) Visas - As soon as many guests enter the country, a visa is processed for them in exchange for ten dollars. These cards are available for tourists that come from almost all continents. You should consult your travel agent before travelling.

f) Travel insurance - Tourists who travel to this destination need travel insurance. There are risks of items being stolen from a hotel room. Besides, there are other dangers that could arise in the course of the trip. If you want to travel to this side of the Caribbean you should buy a travel insurance policy or make sure that yours is in order.

g) Entering the country - Sea cruise ships provide a method of entering the country but this is not an option for all worldwide guests. Visitors who want to enter the country by bus have to come from Haiti and pass through one of the three borders. They have to produce passports and travel cards. The easiest and quickest way to enter this country is by plane. Even so, you need to find out more information about flights to Dominican Republic in your country.

Most planes land at the Aeropuerto Internacional Las Americas, the largest and busiest airport in the country. There are also airports that are designed to receive guests from certain regions only. The Aeropuerto Internacional Cibao receives all international flights and it is good to buy tickets from the airlines that use it. Air transportation is the major one because it serves the entire world.

To read other exciting articles on Dominican Republic vacation packages and more travel information, feel free to visit us today.

Long-Term Care Expense Planning For Financial Advisors: Four Factors to Consider

Planning for long-term care expense has become an integral component of overall financial planning. While we advocate a consistent process with each client, our recommendations for appropriate coverage vary as each client's health, wealth, asset allocation and financial goals differ. It is only in reviewing these four factors that we are able to recommend prudent insurance solutions focused on our clients' best interests.

1. Health -- Long-term care insurance products are medically underwritten. Health history will determine carrier, product and ultimately the cost of a policy.

Determining insurability is the key to the entire process. Generally, the younger we are the healthier we are. As a result, age is also considered as we look at overall health. Some clients can pass underwriting requirements well into their seventies and occasionally mid-eighties. But as we age, insurability becomes more challenging and premiums more expensive. Ideally, applicants should be between 45 and 65 years of age.

Of the long-term care insurance (LTCI) products in the market today, traditional "pool-of-funds" products, which comprise the vast majority of products sold, have the strictest guidelines. Life insurance based products tend to be more lenient. It's common for a carrier to issue a policy to an applicant with some medical conditions and charge a higher premium. Annuity products are the most lenient because applicants are paying higher premiums for these products and offsetting the carrier's risk.

2. Wealth Level -- People purchase long-term care insurance for a variety of reasons: access to care, asset and income protection, quality of care and wealth transfer.

Motivations change with wealth levels. For example, access to care is closely aligned with lower levels of wealth. Affordability is the goal and annual income is the key. As a guideline, the National Association of Insurance Commissioners recommends that a LTCI premium should not exceed 7% of annual income.

Further, insurance carriers define product suitability requirements related to assets and income. LTCI has more than a 99% persistency rate. As people age, LTCI becomes more and more important. Clients need to be able to afford premiums now and 20 years into the future with the potential of rate increases.

At higher levels of wealth quality of care and wealth transfer become the key motivators. Levels of coverage may vary from more coverage to mirror an above average lifestyle to less coverage as insuring against catastrophic loss becomes the objective. People with liquid assets between $100K and $4MM should explore LTCI as a risk management strategy.

3. Asset Allocation -- Many clients have already set aside a rainy day fund. Understanding asset allocation can help clients save premium dollars and/or minimize taxes.

The Pension Protection Act allows the opportunity to fund traditional LTCI premiums or purchase compliant annuities with funds in existing non-qualified deferred annuities and enjoy tax savings. Additionally, the cash value in a permanent life insurance policy can be used to fund LTCI products.

Another funding strategy that is growing in popularity is using a single premium immediate annuity to pay the annual premiums on a traditional pool-of-funds policy. This can save both taxes and premium dollars over the life of the policy.

4. Financial Goals -- What clients want to achieve with their wealth also plays a part in recommending a prudent LTCI solution. Financial goals drive coverage.

If preserving assets for wealth transfer is the key objective, the amount of coverage needs to be appropriate to protect assets. If not outliving income is the objective, then coverage that protects income producing assets becomes the focus.

It is our experience that each of the four factors must be taken into consideration to determine if LTCI is the appropriate funding option for a client and to recommend an appropriate product solution. Health determines insurability, carrier and product. Wealth is one indicator of motivation and contributes to plan design. Asset allocation directs funding strategy. Financial goals confirm coverage recommendations. Together these factors provide a comprehensive approach to long-term care expense planning and appropriate insurance solutions.

Copyright 2011 Nicole Gurley

Reprint Rights: You may reprint this article as long it is printed in its entirety including the about the author information. Please leave all links active, do not edit the article in any way, and include the copyright statement.

A licensed insurance producer since 1998, Nicole founded Gurley Long-Term Care Insurance (Gurley LTCI) in 2002. She focuses exclusively on long-term care expense planning. Nicole holds the CLTC (Certification in Long-Term Care) designation. She assists registered investment advisors, registered reps, estate planning attorneys, certified public accountants and insurance producers throughout the country. Nicole earned a BA in Management. She is the past president and chairman of the Financial Planning Association of Greater Phoenix.

More information about services provided to financial advisors is available at at http://www.gurleyltci.com/partnerships.html.

Visit her website at at http://www.GurleyLTCI.com. and download the FREE report, "Six Facts - MUST KNOWS BEFORE You Buy Long-Term Care Insurance."