Hobby Business:
Discussion of
Considerations/Issues by Topic

Marketing and Advertising

by Rudy Scott Nelson



Comment posted on The Miniatures Page by Parzival “…Want to make money at this? The answer is *effective marketing*.

GW does it, no matter what you think of them or their methods.

Reaper appears to be doing a descent job of marketing, though at a much lower level.

Other manufacturers are doing a fair job as well.

What's effective? Being everywhere, every day, heard and seen and talked about. Sponsoring big events. Creating eye-catching packaging.…”

These are valid issues brought up by Parzival. Marketing is more than advertising. Marketing needs will vary depending on the type of company operated.

Retail Operations

Retail ‘brick and mortar’ stores need to include methods other than simply advertising. Outside Advertising whether in newspapers, magazines or billboards located in a limited market will often not produce the sales per advertising dollars needed to justify the effort. A vast majority of the people who view the ad will not be part of the target audience. Many consider listing in Business sections of the phone book as a waste of effort. However another group of people view the phone book as a long term ad with a single amount lasting a year or more. So while a business section may not be viewed often, the paying to have the basic number made different (bold, italics, etc) will be viewed frequently. Another outside advertising method is the tourist booklet or flyer. If those items are considered, a coupon in the booklet that has to redeemed in the store would be more effective than just an ad. Remember that ebay listings should be regarded by any store as an advertising expense. Store need to plan to support local game shows and conventions if for no other reason than to clear dead stock and ‘fly the flag’

Inside advertising is less expensive and can be controlled by the owner to a greater degree. Posters and notices of current sales will spur additional sales among your regular customers. Stores should if space is available sponsor gaming tables. The owner should also be willing to ‘open’ some product and encourage the play of a new area as a method of increasing sales in that area.

Any product opened for such purposes should be recorded as part of the marketing budget until the items are later sold. At that time they should be transferred back to a stock class for accounting. Failure to record either way will result in ‘lost ‘ product and unbalanced books. Another aspect of the game table availability can provide the opportunity for the store to sponsor events or tournaments. Be careful that attempts to sponsor events with a large company does not incur additional purchase costs that you have not budgeted for.

Part of the Marketing concept is the display of product. Poorly displayed or overcrowded displays can actually lose sales especially impulse sales. Major stores determine what are the best impulse purchase items and display them properly. Hobby stores tend to place easy shoplifted or high priced items near the cash register rather than impulse items. Accessories are a perfect examples of low cost impulse items. Glue and paint tend to be placed in the back or near certain products rather than near the cash register. Dice is another impulse item that is often correctly located near the front and frequently overly protected from theft.

Most major stores have ‘Loss’ items designated as expected to be shoplifted. These are often overpriced or cheap items that will not affect sales. Individual dice should be considered as such. It would be better to have a less than $1 dice stolen , than to have a determined (and most are due to the thrill rather than the need) shoplifter steal a miniature which may be worth $3 or more..

Internet stores, Painting Services, and manufacturers need to advertise in some manner of the internet. It ‘flies the flag’ and increases exposure to a wide and a target population base. Remember that ebay listings should be regarded by any store as an advertising expense. A problem with internet advertising is the inability for the store to offer coupons for discounts.

Manufacturers and Distributors need to advertise in Industry Directories. This is the main way that retail stores can find out about their product or services. Such directories are often provided by industry associations such as GAMA or by websites such as ‘The Miniatures Page’. If a box set is produced with company products, A nice incentive to have a discount coupon redeemable from the company only included in the box.

Hobby Business: Discussion of Considerations/Issues by Topic


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© Copyright 2004 by Rudy Scott Nelson
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