Learning from Gypsy

Gypsy Rose Lee recognized the importance of marketing. She knew that everybody needed to have an "angle." This "angle" would give her a better chance at being successful since it would enable her to be perceived as "different" from the
rest of the..uh..er… folks making their living in the same industry.

In marketing parlance "angle" is known as "positioning." This term refers to the way the buyer views your product on its own merit and relative to the competition. To repeat, positioning has nothing to do with how you view the product, but how you know (through research) or perceive (through conversations and experience) potential and current customers view (position) your product in their minds.

To be effective a product's positioning needs to include:

A unique selling proposition - Tells how the product is meaningfully different from competition.

Benefit(s) statement(s) - Tells how these differences make the lives of potential customers easier.

Reason(s) to believe - Tells why potential customers should believe this product will deliver the promised benefits.

These three components are critical to a success in the marketplace because:

Customers are complacent and busy! - Let's be honest, most customers are likely already using some other product in lieu of yours and are probably pretty satisfied. Further, they are likely not waiting and watching for your company to come out with something new. If your product can provide a unique and meaningful solution to improve their life they will be much more likely to consider switching. If not, your message will not even register on their radar. (Note: If these meaningful differences are proprietary and sustainable they will result in long revenue streams for the company.)

Customers buy benefits and results - Customers don’t buy patents, features, processes, etc. If they don't quickly understand and relate to the benefit of using the product they’re not going to buy it. If the benefit is not overt, "in-their-face" it really isn't there at all!

Customers are wary - There has to be solid "supporting evidence" for customers to believe that your product can and will deliver the promised benefit(s).

A solid market-based positioning statement is important to internal operations, too! It can and does:

Create internal direction - If the company knows what the product is (and what it isn’t) then time, financial and human resources can be focused on work and ideas that are going to enhance that positioning. For example, since Domino’s Pizza’s positioning is about quick delivery it is likely to invest in faster ovens, but NOT in better-tasting, higher cost cheeses
and sauces.

Maximize marketing spending - When a product positioning is clear and consistent over time then communication to external and internal audiences is extremely cost effective. This is a result of the audiences being exposed to the same, clear message. Each exposure builds and leverages on the previous (and previously paid for) exposures.

Keep you focused on the market - In order for a firm's internal efforts to succeed they must continue to satisfy a need in the marketplace. The periodic exercise of defining and evaluating
the positioning of products demands that these efforts happen with market and customer input - not in an internal vacuum!

So take a look at how your key products are positioned in the market. Do they each have an "angle" that sets them apart from the competition? Is this difference meaningful and important to your potential customers? If so, great. If not, it's time to call Mosaic.

—by Rosemary Walter

Marketing Tips to Clip

This section is devoted to providing information and practical tips that you can start using TODAY to better manage the marketing function in your company. These are great to clip out and tack on your bulletin board or share with co-workers.


We're all in business to make money! Ironically, junior and senior business folks alike often confuse the two most popular ways to measure and set profitability -gross profit margin and mark-up. Let Mosaic help clear up the confusion.

Gross Profit Margin is the amount of money earned as a
percentage of the selling price. While Mark-Up is the amount of
the money earned as a percentage of the cost of the item.

Let’s see how these numbers are calculated and how confusing these terms quickly and permanently affect your bottom line.

Let’s assume that a product costs you $50 a case to make. This is your cost of goods (COG). You are able to sell it for $65. The money you keep (earned) in this transaction is found by subtracting the COG from the sales price, or $15 per case.

Your Gross Profit Margin is $15(money earned) divided by $65 (selling price), or 23%. Your Mark-Up is $15(money earned) divided by $50 (COG), or 30%.

This simple example shows the mathematic principles in play that dictate that profit margin percentages are always going to be less than mark-up percentages.

This is a problem if you typically figure your profitability on a
mark-up percentage. If your budget's bottom line was developed by multiplying your revenue estimates by your mark-up percentage instead of your margin percentage you've overstated your profits. In this example of $100,000 in revenue that translates to $7,000 less in profits.

And that’s the bottom line!

Check out the FREE Tips and Tools section for a reference chart on common mark-up and margin percentages.

This & That

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Thanks to all those who returned the Speech Topics Survey that was included in last quarter's newsletter. Your input is greatly appreciated.

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Mosaic Marketing Management, Inc. will be re-locating at the end of July. The new address is 309 E Rand Road Suite 330, Arlington Heights, IL 60004 - 3103. The phone numbers stay the same for now. E-mail address stays the same.