What's in a Deal?

A wise man once told me that "a good deal is only a good deal if it's a good deal for both parties." In marketing, as with other business functions, this proverb holds true.

Good marketing must provide something of value - a good deal - to both the customer and the organization. If a marketing strategy only results in the organization making a buck at the expense of the customer, it isn't good marketing. If a marketing strategy provides an exceptional discount to the customer, but fails to result in a lasting and profitable relationship for the organization, it isn't good marketing.

Recently some friends and I stopped at a local SUBWAY restaurant to pick up some subs for a picnic in the park. SUBWAY was advertising this month as "ANYtober" - during October, customers can purchase any regular footlong sub for only $5.

Now, in one sitting I can only eat a 6" sub. So on a typical night at SUBWAY I would have purchased a 6" turkey breast sub for $3.50. But that evening I could purchase a footlong turkey breast sub - a double-portion of food - for only $1.50 more. I couldn't eat that double-portion of food that night, but I could save half of my footlong in the fridge for another meal, thereby getting two meals for only $5.

Two meals at SUBWAY for the price of one at another store? That was a good deal to me.

SUBWAY would get a good deal out of the bargain, too. They would procure a $5 purchase from a customer who would ordinarily have only spent $3.50 in their store. Throughout the month of October, SUBWAY has the opportunity for hundreds more similar up-sales from other customers who might usually only purchase a 6" sub.

SUBWAY's "ANYtober" is good marketing. It provides SUBWAY the opportunity for increased per-customer sales, and potentially increased traffic, as customers choose SUBWAY more frequently over other restaurant options this month in order to take advantage of the discount.

And it enables customers to save money on food they would have purchased somewhere anyway.

Are your marketing efforts providing a good deal to both you and your customers? If not, it isn't good marketing.