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E x e c u t i v e U p d a t e
More Businesses Take Marketing To The Streets
By Moving Efforts Closer To Customers, Firms Can Add Sales At Lower Costs

By Marilyn Much
In New York &In today's frugal corporate environment, many companies have been loading up marketing arsenals with unconventional strategic weapons designed to promote their goods more economically.
  &One approach, so-called Streetfighter marketing, supplements national advertising and promotions with programs aimed at specific neighborhoods.

Marketing
  &Traditionally used by small franchises, chains and dealership networks, the concept has spread to larger concerns in recent years, says Jeff Slutsky, president of Columbus, Ohio-based consulting firm Streetfighter Marketing and author of the book, "How to Get Clients."
  &The Concept draws from other non-traditional marketing strategies. It differs from national programs, which involve the purchase of costly media time and space, in that it brings marketing to the community level at minimal cost and often with major gains.
  &At the core of the program is a micro marketing approach that directly and economically targets an establishment's best local customers through low-cost means such as cross-promotions, special events and internally based programs, such as giving employees discount cards to hand out and rewarding those who bring in the most customers.
  &The idea is to reach customers within a three- to five-mile radius or, more specifically, the area from which the companies generate more than 80% of their customers, Slutsky says.
  &Take the case of fictitious restaurant chain with 1,000 locations Street-Fighter Marketing
Elements of effective low-cost marketing

Neighborhood focus, Advertising focused on areas where companies pull in 80% to 90% of their customers can more dramatically increase sales at a low cost.

Integration of neighborhood marketing with operations. In a discount haircut chain that would mean asking the store manager to run weekly promotions.

Bottom-up development with top-down support. Basic operating procedures, such as strong customer service, must be in place locally before a neighborhood marketing program can truly assist franchisees.

Effective reward and punishment, After compensation and bonus plans to reward those local managers whose efforts pay off.

Training and education for corporate-level personnel.

Flexibility, adaptability and accountability. The results of neighborhood marketing promotions must be easily tracked. There also has to be some tolerance for mistakes.

Neighborhood marketing programs should be constantly updated and improved.

Greater cooperation between key constituencies. That means franchisers (those financing neighborhood marketing efforts) must be aware their own success hinges on the success of their franchisees.

Source: Streetfighter Marketing           Investor's Business Weekly the franchise division at Athlete's Foot.
  &With programs ranging from racing sponsorships to community aid, franchisees have used the concept to develop events aimed right at the customer. By so doing, they are guaranteed direct hits with fewer dollars than they would spend to reach the same audience through traditional ad venues, Vulpine says.
  &Consider the cross-promotion one franchise did with a local soccer league last year. The store gave away a free soccer ball with the purchase of a specific soccer shoe. The soccer league communicated the offer in about 400 fliers distributed to its 30 teams.
  &The store sold out of the shoe quickly, says Slutsky, who noted such a premium can be adapted to other sports like tennis.
  &Athlete's Foot helps fund three major street-fighting promotions annually, while individual franchisees may implement additional programs.
  &Another street-fighting program entails community involvement. One of Marriott Corp.'s Bob's Big Boy coffee shops ran a one-day promotion last year in conjunction with a fun for a girl's lung transplant. Bob's

that spends millions on national and local ads.
  &Within three miles of one location there are hundreds of local businesses, major employers and community service organizations, all of which can refer business back to the restaurant at very little cost through cross-promotions. The restaurant, for example, might give out discounts to a local toy store to customers with children.
  &Such cross-promotioning at 1,000 locales could mean reaching 1,000 different communities and developing ties with the 1,000 neighborhoods that support the restaurant chain.   &On an operational level, the approach would motivate 1,000 store managers to act like individual entrepreneurs networking in their local communities.
Athlete's Foot Program
  &Athlete's Foot Group Inc., an Atlanta-based shoe chain with 190 U.S. franchises and 270 company-owned stores, adopted the Streetfighter concept at the franchise level four years ago.
  &Franchisees have been highly successful using the concept, which has helped them benefit their communities while furthering their own business interests, says Perry Volpone, senior vice president of contributed part of its sales to the charity, which received 50% of the restaurant's proceeds over what it normally makes in a day.
  &The manager helped the promotion by recruiting volunteers to participate in special events. One was a local boxing champ who signed autographs.
  &The program raised $2,500 and the restaurant witnessed a 30% increase in its customer count that day. Moreover, the program exposed a number of first-time customers to the store.

E x e c u t i v e U p d a t e
More Businesses Take Marketing To The Streets By Moving Efforts Closer To Customers, Firms Can Add Sales At Lower Costs
By Marilyn Much In New York &In today's frugal corporate environment, many companies have been loading up marketing arsenals with unconventional strategic weapons designed to promote their goods more economically. &One approach, so-called Streetfighter marketing, supplements national advertising and promotions with programs aimed at specific neighborhoods. `Marketing` &Traditionally used by small franchises, chains and dealership networks, the concept has spread to larger concerns in recent years, says Jeff Slutsky, president of Columbus, Ohio-based consulting firm Streetfighter Marketing and author of the book, "How to Get Clients." &The Concept draws from other non-traditional marketing strategies. It differs from national programs, which involve the purchase of costly media time and space, in that it brings marketing to the community level at minimal cost and often with major gains. &At the core of the program is a micro marketing approach that directly and economically targets an establishment's best local customers through low-cost means such as cross-promotions, special events and internally based programs, such as giving employees discount cards to hand out and rewarding those who bring in the most customers. &The idea is to reach customers within a three- to five-mile radius or, more specifically, the area from which the companies generate more than 80% of their customers, Slutsky says. &Take the case of fictitious restaurant chain with 1,000 locations	Street-Fighter Marketing Elements of effective low-cost marketing Neighborhood focus, Advertising focused on areas where companies pull in 80% to 90% of their customers can more dramatically increase sales at a low cost. Integration of neighborhood marketing with operations. In a discount haircut chain that would mean asking the store manager to run weekly promotions. Bottom-up development with top-down support. Basic operating procedures, such as strong customer service, must be in place locally before a neighborhood marketing program can truly assist franchisees. Effective reward and punishment, After compensation and bonus plans to reward those local managers whose efforts pay off. Training and education for corporate-level personnel. Flexibility, adaptability and accountability. The results of neighborhood marketing promotions must be easily tracked. There also has to be some tolerance for mistakes. Neighborhood marketing programs should be constantly updated and improved. Greater cooperation between key constituencies. That means franchisers (those financing neighborhood marketing efforts) must be aware their own success hinges on the success of their franchisees. Source: Streetfighter Marketing Investor's Business Weekly		the franchise division at Athlete's Foot. &With programs ranging from racing sponsorships to community aid, franchisees have used the concept to develop events aimed right at the customer. By so doing, they are guaranteed direct hits with fewer dollars than they would spend to reach the same audience through traditional ad venues, Vulpine says. &Consider the cross-promotion one franchise did with a local soccer league last year. The store gave away a free soccer ball with the purchase of a specific soccer shoe. The soccer league communicated the offer in about 400 fliers distributed to its 30 teams. &The store sold out of the shoe quickly, says Slutsky, who noted such a premium can be adapted to other sports like tennis. &Athlete's Foot helps fund three major street-fighting promotions annually, while individual franchisees may implement additional programs. &Another street-fighting program entails community involvement. One of Marriott Corp.'s Bob's Big Boy coffee shops ran a one-day promotion last year in conjunction with a fun for a girl's lung transplant. Bob's
	that spends millions on national and local ads. &Within three miles of one location there are hundreds of local businesses, major employers and community service organizations, all of which can refer business back to the restaurant at very little cost through cross-promotions. The restaurant, for example, might give out discounts to a local toy store to customers with children. &Such cross-promotioning at 1,000 locales could mean reaching 1,000 different communities and developing ties with the 1,000 neighborhoods that support the restaurant chain.	&On an operational level, the approach would motivate 1,000 store managers to act like individual entrepreneurs networking in their local communities. `Athlete's Foot Program` &Athlete's Foot Group Inc., an Atlanta-based shoe chain with 190 U.S. franchises and 270 company-owned stores, adopted the Streetfighter concept at the franchise level four years ago. &Franchisees have been highly successful using the concept, which has helped them benefit their communities while furthering their own business interests, says Perry Volpone, senior vice president of	contributed part of its sales to the charity, which received 50% of the restaurant's proceeds over what it normally makes in a day. &The manager helped the promotion by recruiting volunteers to participate in special events. One was a local boxing champ who signed autographs. &The program raised $2,500 and the restaurant witnessed a 30% increase in its customer count that day. Moreover, the program exposed a number of first-time customers to the store.