Speaking of Parties...TSIG 101 Baiscs for Newbies
TSIG's strategy answers the two primary questions for e-tailers.
1). How do e-tailers effectively and inexpensively direct (attract) customers to their web page site stores? (Inexpensive is key because profit margins are already slim for e-tail commerce).
2). How do e-tailers retain customers without having to constantly pay to retain these customers? (Especially since cutting profit margins to such an extreme that some e-tailer are going to the far extreme of selling below costs doesn't seem like a long term solution to retaining customers. Due to lowering advertising costs, such a business plan of selling below costs only appears to be a way to incur a ton of debt).
Note: If marketing cost are reduced for both attracting and maintaining customers, operating ie. overhead costs are drastically reduced so items can be sold for less then competitors similar products- yet profit margins are still maintained.
Now here is the three word answer to TSIG's strategy: Third Party Marketing.
How does this work for TSIG?
TSIG makes deals with charities and corporations for "cards".
TSIG's name doesn't necessarily appear on the card.
The card names include a growing list of familiar names
with many more corporate deals to be announced.
So, the KodakCard, the BabeCard, the NationalMusic Foundation Card and possibly many of Signature's clients...et cetera become the "in"-direct advertisers for TSIG and also create EXPOSURE .
All these other companies promote the "card" as part of some
promotional deal along with entities like many professional sports teams. The cards themselves even become collectible items.
So what does this mean?
First, free THIRD PARTY advertising because a TSIG site is being directed to via the specific corporate or charity card creating
web traffic and eye balls.
Second, revenues are generated directly via card sales like with
the Babe Ruth League deal w/o even any sales of compact disks.
Three, once the card is purchased, since prices of TSIG's CD's (and other soon to come products) are lower than competitors due to lower costs of advertising, customers are retained because of these lower prices for , at least, the duration of the card ie. 20 compact disks.....and books..and whatever in the forthcoming future.
Now compare these third party advertising strategies with CDNow and AMZN and determine which of these three companies (the third being TSIG) has the most cost effective advertising strategy.
Again the key the vast exposure created via third party advertising
with minimal expense incurred by TSIG.
Sincerely,
ztect |
