Archive for April 6, 2011

Standing Out is One Way to Increase Margins

BNET recently posted a story about the success of Crumbs Bakery in New York City. The article is titled, “Startup Survival: How to Get Past the 3-Year Hump,” the point being that smart marketing makes for financial success.

The rational way to raise your gross margin is to differentiate your business by redefining your company as the only player in a specific niche, instead of being just another company among larger ones. Crumbs has distinguished itself by selling the world’s best cupcake. It leads with cupcakes, reserves the best merchandising space for cupcakes and displays cupcakes above the fold on its website.

If your company is the only one that can do what you do, then you can increase your margins. How can we help you solidify the idea that you are the only one who can do what you do?

Marketing Happiness

Perhaps this is one of the reasons we love marketing. Jennifer L. Aaker, a marketing professor at Stanford University’s School of Business, Melanie Rudd, a Stanford MBA student, and Wharton marketing professor Cassie Mogilner, examined 60 academic studies looking at the way people spend their time and how that affects happiness. Their conclusions were recently summarized in a BNET post titled, “Scientifically Proven Ways to Be Happier”.

  • Spend time with the “right people.” Who are the right people? They’re generally not your office mates. The people that make you happiest will generally be friends, family, and romantic partners.
    • Avoid small talk. A related predictor of happiness is how much substantive discussion a person engages in, compared to small talk. Generally, small talk makes people unhappy. If you want to increase your happiness, it’s far better to find one or two people with whom you can have a real discussion than to engage in small talk.
  • Spend time on “socially connecting” activities, such as volunteering and spending time with friends.
    • Work doesn’t count. Work is not ’socially connecting’ and is generally one of the more unhappy parts of the day. Commuting is also gets high marks for making people unhappy.
    • Volunteering has been proven to be a good way to increase happiness.
    • Memory is important, because it helps us take an event that happened in the past and extend its ‘worth’ into the future. What are your happiest memories?
  • Day dream, or, enjoy the experience without spending the time. Research has shown that the part of the brain responsible for feeling pleasure can be activated just by thinking about something pleasurable. And we often enjoy the anticipation of something pleasurable more than the actual experience that we think is going to be so great. The most common example is vacation planning, which some find more pleasurable than the vacation itself.
  • Expand your time. Focusing on the “here and now” slows down the perceived passage of time, allowing people to feel less rushed and hurried.
    • Breathe slowly. Just for a few minutes. “In one study, subjects who were instructed to take long and slow breaths (vs. short and quick ones) for 5 minutes not only felt there was more time available to get things done, but also perceived their day to be longer.”
    • Volunteering makes it seem like you have more time. In general, spending time on someone else makes people feel like they have more spare time and that their future is more expansive.
    • Pay people to do the chores you hate. Activities that we choose to do generally make us happier than those that are obligatory.
  • Be aware that aging changes the way people experience happiness. Youths tend to equate happiness with excitement, but as people get older, happiness is associated with feeling peaceful. Young people get more happiness from spending time with interesting new acquaintances, while older people get more enjoyment from spending time with close friends and family.