Low-Cost Advertising that Yields High Returns
by Myrna Rodriguez-Co
Low-cost advertising can yield high returns, this is what Chito and Aida Madroño found out when they introduced “Word Factory” into their Eureka educational toy line in 1982. The coupled unabashedly admits that the product was their company’s take on Parker Brothers’ popular word game, “Boggle.”
Within two years of its introduction in the market, “Word Factory” outshone “Boggle” not only in local sales but also in brand recall. Aida gives the credit first on the quality of “Word Factory” that gives the buyer value for its money. “And of course, we advertised,” she adds.
As every marketing-savvy businessman will tell you, you may have an excellent service or product, but if no one knows about it, what good will it do you?
No, the couple didn’t spend big bucks to spread the word around. Rather, the “Word Factory” advertising campaign may well be a model in low-cost advertising that worked.
“You might call it a stroke of good luck,” Chito says, recalling how the product got enormous exposure in a popular noontime show of the 1980s, “Patok na Patok,” hosted by Ariel Ureta. The show constructed a huge grid on the set, complete with gigantic letter cubes – a magnified replica of their product. For many months, contestants got to play the game on TV, while being viewed by millions. “As the televised game was called ‘Word Factory’ too, the mileage we got was immeasurable,” Chito recalls. “All it cost us was 24 pieces of the product a day.”
This set the tone for advertising not only “Word Factory” but other Eureka products like Kinder Kit, Crossword, chess sets, and many others.
Soon, Aida and Chito were sponsoring campus tournaments, where their Word Factory and Crossword sets were used by competitors as well as put up as prizes. They also went the route of mall tournaments, but always with a partner-company and a partner-mall, so they were able to split costs.
Chito, who is a sought-after speaker on Entrepreneurship and Marketing, makes it a point to bring samples of his products when he lectures to a class. Invariably, he goes home empty-handed. Well, not really, for he would have a substantial order or two tucked up in his sleeves.
Eureka products have never been advertised in expensive print ads and TV/radio commercials. The only time print media was used was when Aida bought a classified ad in a broadsheet, inviting people to sell their products. The P300-ad resulted in a network of Eureka product dealers and sellers.
Their products are not difficult to sell. Chito shares some of his marketing secrets:
- Go for attractive packaging – Packaging is the product’s face to the public. Eureka products boast of world-class packaging, featuring classy designs and sturdy materials. The package must, of course, include all your contact numbers so that interested parties can readily reach you.
- Branding is important, but is neglected by most local manufacturers. Chito and Aida slowly but surely built up the “Eureka” brand so that today, they are now being sought out by retailers.
- Develop your niche. In the case of Eureka, the Madroños pursued the high-end market who go for quality. “The market is not so big, so we thought we might as well hit the ‘significant few.’ The strategy was effective, too, in discouraging copy-cats.
The Madroños belong to a growing breed of budget-conscious small entrepreneurs who have shown that there is no limit to the ingenious ways one can make ones product known.
Some businessmen have made word-of-mouth work. Others have engaged in exchange deals with newspapers, magazines, and radio and TV stations. Subdivision-based shops and stores have made good use of moving ads – announcements posted on the back of pedicabs. A maker of uniforms advertises its service in campus newspapers. An automotive repair shop places ads in the homeowners’ association newsletter. Still others have used the church pulpit to make announcements: one store owner in a neighborhood announced during Sunday mass that he had openings for its sales crew and “incidentally”announced his store’s opening as well. And yes, there are a number of small manufacturers who have managed to be featured in stories in the Philippine Daily Inquirer and other newspapers for free! All of them attest that such exposure has been more effective than paid advertising.
Tom Egelhoff in www.smalltownmarketing,com liberally doles out low-cost advertising tips. These include:
- Can you barter for the cost of ad production? Maybe the newspaper office. needs your service or product in exchange for an ad about your store.
- Try advertising consistently in the classifieds. These ads may draw more customers than more expensive display ads.
- Try an editorial style ad. These are ads that look like actual stories in the newspaper. Develop a good headline and 50% more people will read the article than would read an ad of the same size.
- Split advertising costs with the people who sell to you. Vendors and manufacturers are always looking for exposure. Let people know you carry their products and have the vendor pick up part of the ad cost.
- Share ad costs with neighbor -businesses. Video stores and pizza parlors are natural partners. Have coupons to each others stores or share the cost of flyers.
- Place your radio ads in off hours or in unusual locations for less cost. Many times you can still reach your target market with these spots.
- Instead of a one-time big splash ad, be consistent with frequent small ads that work.
- Some monthly magazines sometimes have unsold ad space at the end of the month; they will sell at a discount then.
- What will suppliers give you by way of point of purchase materials? Posters, stands ups, handouts. Some have excellent display racks you can use.
- Some national chains like Coke and Pepsi provide outdoor signs for businesses. There are also indoor lighted signs you write on with special markers to advertise your special offers.
- Can you sponsor a community event? A fun-run, basketball tournament, or other event that will be well-publicized in the community. Your name may not be prominently displayed but sometimes the positive exposure in the community will bring in new customers.
- Exploit the media you use to the fullest. If your message is verbal, you don’t need TV. Use radio, billboards and newspaper to the fullest.
- Consider direct mail. A letter and brochure before customer contact can increase business.
- Can you advertise on parking meters, taxi boards, balloons and grocery shopping carts? What about on community bulletin boards, movie ads?
But perhaps the most important advertising advice anyone can give you is to LET YOUR PRODUCT WORK FOR YOU. It should be one that gives your customers value for their money. The most elaborate advertising campaign will backlash on you if your product turns out to be below what you have hyped it to be.
(For inquiries, please e-mail info.issi@up.edu.ph.)
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