Thursday, February 28, 2008

Free as a marketing tool!

Seth Godin’s post “may I have your attention please” asks entrepreneurs to question how they use “free”.

“You can do that by creating a remarkable service or product. You can do it by paying them with cash. Or you can do it with free. Free undermines the typical human's proclivity to ignore every offer. Even if it's a penny, we'll ignore it. Free changes that. In other words, buying attention is a marketing expense, and one way to budget for that is to deduct it from the cost of your product. As Tim O'Reilly says, piracy is not the enemy, obscurity is.

The interesting thing about most products and services is that we won't buy them until we know what they are and what they do. And often the best and only way to do that is to use them... You can view that as a problem or you can see it as an opportunity. Up to you.

Marketing is not advertising, not any more. It is often found in the way you make something, talk about it and yes, price it.”

Free is the most used word in marketing, or it is tied with the word “love” in an effort to get you to notice a product. Restaurateur’s have vast experience with giveaways. Restaurants as a matter of course often give away samples to generate interest in a new menu item or to introduce a new restaurant concept. There is a huge difference between giving something away free and offering a complimentary introduction to a new product. Restaurants need to be very aware of how they give away “free”. Free is of no value if it does not connect with the customer. When it does connect, free is a wonderful marketing tool!