>> THERE PROGRAM WAS MADE POSSIBLE BY A GRANT FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT.

>> THE TWO ISSUES ARE WHAT ARE THE BENEFITS AND WHAT IT'S IN IT FOR ME, AND WHAT ARE THEY SCARED ABOUT AND WHAT ARE THEY AFRAID WILL HAPPEN IF THEY BUY THIS PRODUCT?

>> THE IDEA WAS TO START OFF WITH IT, AND TRY TO MAKE BABY BIRDS CUTE, A HOUSEHOLD NAME IN BUFFALO.

>> WE DID NOT HAVE PAUL NEWMAN AS A SPOKESWOMAN TO GET OUT THERE AND TELL THE AMERICAN PUBLIC WHY OUR PRODUCT WAS SO GOOD.

SO WE CREATED UNCLE DAVE.

>> IT'S SORT OF LIKE FISHING.

YOU CAST A LINE AND YOU GET A BITE.

>> WELCOME TO VENTURING, I'M CAROL DILLON.

DURING THE PAST SEVERAL WEEKS WE HAVE SEEN HOW PEOPLE HAVE STARTED THEIR VENTURE, HOW THEY FINANCED THEIR START-UP AND HOW THEY GOT THEIR FLEDGLING BUSINESS UP AND RUNNING.

TONIGHT WE'RE GOING TO LOOK AT A SUBJECT THAT CAN MAKE OR BREAK ANY BUSINESS.

EFFECTIVELY SELLING YOUR PRODUCT OR SERVICE.

TO DO THAT, YOU NEED SOUND MARKET RESEARCH, A GOOD MARKETING PLAN THAT ADDRESSES THE UNIQUE NEEDS OF THE BUSINESS, AND, OF COURSE, THE ABILITY TO SELL.

THIS IS ALAN NEWMAN, CO-FOUNDER AND PRESIDENT OF SEVENTH GENERATION, A MALE ORDER CATALOG BUSINESS THAT SPECIALIZES IN ENVIRONMENTALLY SAFE PRODUCTS.

HE'S CREATED A SUCCESSFUL BUSINESS BY UNDERSTANDING THE DIFFERENCE BETWEEN SALES AND MARKETING.

>> I THINK THAT ONE OF THE THINGS THAT BUSINESSES DO THAT'S SHORTSIGHTED IS THEY GET MYOPIC.

THEY LOOK AT SALES RATHER THAN MARKETING.

SALES IS ABOUT SELLING A WIDGET.

MARKETING IS ABOUT SETTING THE STAGE SO THAT SELLING THE WIDGET IS EASY.

AN EXAMPLE, SEVENTH GENERATION IS THAT WHEN WE STARTED, WE REALIZED OUR GOAL WAS TO CONVINCE OUR CUSTOMERS THAT THEY COULD MAKE A DIFFERENCE.

IF WE COULD CONVINCE OUR CUSTOMERS THEY COULD MAKE A DIFFERENCE ON THE ENVIRONMENT AND WE COULD CONVINCE THEM THAT OUR PRODUCT AB WAS A GOOD VALUE, SELLING THEM, THE WIDGET, THE PRODUCT WAS REALLY VERY EASY.

IN OUR CATALOG WE SPEND 20% OF THE SPACE EDUCATING OUR CUSTOMERS ON THE DIFFERENT ISSUES WE'RE FACING, EXPLAINING WHAT BIODEGRADATION IS ABOUT AND WHY WE RECYCLE PAPERS BETTER AND WHY CLEANERS WITH VEGETABLE BASES ARE BETTER FOR THE ENVIRONMENT.

IF SOMEONE ACCEPTS THAT THEY CAN DO SOMETHING POSITIVE, AND THAT VEGETABLE-BASED CLEANERS ARE BETTER FOR THE ENVIRONMENT, THEN IT'S A MUCH EASIER STEP BECAUSE ALL YOU HAVE TO DO IS SELL WHAT WE BELIEVE IS THE BEST CLEANER MADE AND OUR JOB IS MADE EASIER FOR US.

>> I WOULD LOVE TO MICK THOSE LARGER.

>> A LITTLE BIGGER.

>> IF WE CAN PROP IT DOWN.

>> I DON'T THINK THAT THERE ARE ANY -- THERE IS ANYTHING NEW IN MARKETING.

I THINK EVERYTHING HAS BEEN TRIED, IT'S A MATTER OF HOW YOU DO IT AND HOW YOU COMMUNICATE YOUR BENEFITS TO YOUR CUSTOMERS.

I HAVE FIGURED OUT A WAY TO TALK TO THESE PEOPLE AND EXPLAIN WHAT THE BENEFITS OF THE PRODUCTS ARE, AND TO HELP THEM TO OVERCOME THE FEARS, THE TWO ISSUES ARE WHAT THE BENEFITS AND WHAT'S IN IT FOR ME AND WHAT ARE, WHAT ARE THEY SCARED ABOUT?

WHAT ARE THEY AFRAID WILL HAPPEN IF THEY BUY THIS PRODUCT?

SO WE TRY TO GIVE THEM THE THINGS THAT WILL BE GOOD FOR THEM AND WE TRY TO OVERCOME THE FEARS THAT THEY MAY HAVE ABOUT USING THIS.

ONE OF THE FIRST THINGS YOU LEARN IN MARKETING IS TO TALK IN BENEFITS NOT FEATURES.

A FEATURE, FOR EXAMPLE, IS THE BOX IS 12 INCHES BY 6 INCHES.

THE BENEFIT IS THIS SMALL COMPACT BOX WILL FIT UNDER YOUR DESK, SO THE FEATURE IS THE INFORMATION ABOUT IT, THE BENEFIT IS WHAT DOES IT MEAN TO ME AND MY LIFE.

WHEN YOU SELL YOU HAVE TO SELL WITH BENEFITS.

HERE'S THE SEVENTH GENERATION, WHEN WE FIRST STARTED WE REALLY THOUGHT THAT PEOPLE WOULD PAY FOR AN ENVIRONMENTAL BENEFIT.

WHAT WE HAVE LEARNED IS THAT OUR CUSTOMERS BUY FROM US FOR THE SAME REASON PEOPLE BUY ANYTHING, THE BENEFITS HAVE TO, A GOOD VALUE AND THE PRODUCT HAS TO WORK AND BE PRICED RIGHT.

IN ADDITION, WHAT THEY GET FROM US AND THE REASON THEY BUY FROM US IS THEY GET THE FREE BENEFIT OF THE ENVIRONMENTAL, THE REDUCTION OF THE, OF THE ENVIRONMENTAL IMPACT, AND THAT MAKES THEM FEEL GOOD.

ONE OF THE THINGS THAT WE FOUND IS THAT THE PERCEIVED VALUE IS CRITICAL, EVEN THOUGH WE MAY NOT SEE SOMETHING IT DOES NOT MATTER.

OUR CUSTOMERS HAVE SOMETHING CLEAR IN MIND, AND LET ME GIVE YOU AN EXAMPLE.

WHEN WE STARTED SELLING TOILET PAPER WE WERE TAKING THE TEST FOR SELLING THE MOST EXPENSIVE PAPER ON THE MARKET.

IT WAS NOT UNTIL A YEAR AFTER HEARING CUSTOMERS COMPLAIN OF SELLING THIS THAT IT DONNED ON US THAT OUR ROLL HAD 500 SHEETS, AND THEY WERE COMPARING IT WITH THEIR SUPERMARKET ROLL THAT HAD 300 SHEETS.

AND WE HAD NEVER TAKEN THE TIME TO EXPLAIN TO OUR CUSTOMERS THAT WHEN LOOKING AT PRICE OUR ROLL HAS 66% MORE SHEETS.

YOU HAVE TO ASSUME IT WILL COST MORE.

THAT DOES NOT MEAN ON A PER SHEET BASIS IT'S MORE, IT'S THE PERCEPTION THAT THE ENVIRONMENTAL, THE ENVIRONMENTAL BENEFIT COST MONEY.

WE HAVE BEEN WORKING DILIGENTLY TO OVERCOME THAT AND WE ARE BARELY JUST STARTING TO MAKE INROADS.

>> DIRECT MARKETING MEANS GOING DIRECTLY TO THE CUSTOMER AND GETTING A RESPONSE FROM THAT CUSTOMER.

SO WHEN WE SEND SOMETHING TO YOU, WE ARE EXPECTING SOME SORT OF A RESPONSE.

THE RESPONSE COULD BE PLEASE SEND ME A CATALOG.

IT COULD BE, PLEASE SEND ME MORE INFORMATION.

IT COULD BE PLEASE SEND ME THESE FIVE PRODUCTION.

>> HI.

SEVENTH GENERATION, THIS IS SAM, CAN I HELP YOU?

>> OKAY.

CAN WE HAVE YOUR ZIP CODE, PLEASE.

>> OUR MAJOR CUSTOMER ACQUISITION METHOD IS THROUGH LIST RENTAL.

WE HAVE LISTS OF PEOPLE WHO HAVE PURCHASED OTHER PRODUCTS OR WHO READ CERTAIN MAGAZINES OR HAVE SHOWN THEIR AFFINITY FOR OUR PRODUCT THROUGH THEIR BEHAVIOR IN OTHER WAYS.

>> IT WILL PROBABLY BE IN PERSON NEXT WEEK, AND WE CAN SEND IT OUT TO YOU AS SOON AS IT COMES INTO OUR WAREHOUSE.

>> THAT'S THE BEST WAY TO REACH A CUSTOMER BECAUSE INSTEAD OF GOING AFTER ALL THE PEOPLE WHO HAVE NO AFFINITY FOR THE PRODUCT, IT COST MONEY TO MARKET TO PEOPLE.

AND BY LIMITING WHO WE GO AFTER TO ONLY THOSE PEOPLE WHO HAVE DEMONSTRATED AN AFFINITY FOR THE PRODUCT, IT REDUCES OUR OVERALL MARKETING COSTS.

>> WHAT ALAN NEWMAN IS TALKING ABOUT IS MARKET RESEARCH.

IT'S PROBABLY THE MOST IMPORTANT PART OF ANY BUSINESS PLAN.

THE MARKET RESEARCH LEFT MONEY TO WASTE.

OUR NEXT ENTREPRENEUR, RON BYRD TAKES A MORE DIRECT APPROACH TO MARKET RESEARCH.

HE PERSONALLY TALKS TO EVERY CUSTOMER.

OF COURSE IF YOU ASK HIM, HIS BUSINESS, BABY BIRD'S QUEUE HASN'T REALLY STARTED YET.

HIS PLAN IS TO OPEN A RESTAURANT.

THIS IS JUST MARKET RESEARCH.

>> HEY.

THANKS A LOT, YOU ENJOY IT, TELL 100 PEOPLE AND SEND THEM DOWN HERE.

SEE YOU LATER, BUDDY, AND THAT WAS A SPECIAL, COMING UP.

ORIGINALLY, AFTER COMING TO BURLINGTON FIVE YEARS AGO, I RECOGNIZED THERE WAS NO BARBECUE IN TOWN, AND I LIKE BARBECUE.

I GREW UP ON BARBECUE, AND FOR A LATE NIGHT SNACK ME AND MY WIFE WANTED A BARBECUE SANDWICH OR SOMETHING LIKE THAT, AND UNFORTUNATELY, THERE WAS NONE HERE SO THAT'S WHERE THE IDEA ORIGINATED FROM.

AND SO WE SAID, WHY DON'T WE START A BARBECUE AND DO SOMETHING FOR BARBECUE, AND AFTER SEEING THERE WAS A MARKET FOR BARBECUE, AND AFTER ACQUIRING THE EXPERIENCE OVER THE YEARS AMERICANS WORKING FOR A CORPORATION, I THOUGHT IT WAS TIME.

IT WAS TIME FOR ME TO BRANCH OFF AND DO OTHER THINGS.

HOW ARE YOU DOING TODAY.

THE WAY I STARTED WAS WHEN I TOOK A LAYOFF FROM SIMMONS PRECISION THEY OFFERED A LAYOFF PACKAGE, SO I TOOK A VOLUNTARY LAYOFF AND TOOK THOSE MONEYS AND INVESTED THEM INTO THE MARKETING RESEARCH PRODUCT HERE.

THIS IS A MARKETING RESEARCH PROJECT.

ORIGINALLY WHEN WE THOUGHT ABOUT STARTING A BARBECUE BUSINESS BEFORE WE WANTED TO MOVE INSIDE INTO A RESTAURANT, WE WANTED TO DEVELOP A MARKET BECAUSE I WAS NOT QUITE SURE WHY BURLINGTON DIDN'T HAVE BARBECUE.

I DIDN'T KNOW WHETHER IT WAS BECAUSE THEY DID NOT WANT IT AND NOBODY HAD EXPLORED THE IDEA, AND WE DID NOT TO INVEST A LOT OF MONEY INTO MOVING INTO A RESTAURANT AND NOT BE, NOT HAVE A RECOGNITION FOR IT.

SO WHAT WE THOUGHT THAT WE WOULD DO IS START WITH THE CART WHERE WE COULD BE VERY VISIBLE AND START TO INTRODUCE THE PRODUCT HERE IN BURLINGTON.

WE HAVE STARTED PLANS, UNDER-WAS I TO MOVE INTO A RESTAURANT, HOPEFULLY, BY THANKSGIVING.

IT'S THE TARGETS DAY FOR OPENING THE RESTAURANT AND SHE TO SOME EXTENT, WE THINK THAT WE'VE BEEN ACCOMPLISHING OUR GOAL ALL SUMMER.

WWE HAVE SEEN A LOT OF PEOPLE COME BACK, AND 80% OF OUR BUSINESS IS REPEAT BUSINESS.

BUT THAT'S A GOOD SIGN THAT THE PEOPLE LIKE THE PRODUCT.

>> HOW ARE YOU DOING TODAY?

HEY, HOW ABOUT SOME LEFTOVERS THERE, BUDDY?

>> HOW ARE YOU DOING TODAY?

HOW ABOUT SOME LIGHTS?

>> HOW ARE YOU DOING TODAY?

HOW ABOUT SOME LIGHTS.

HOW ABOUT SOME LIGHTS.

>> ONE OF THE THINGS I BELIEVE IN IS PROMOTING THE BUSINESS.

NOT JUST THE PRODUCT BUT ALSO YOU AS A BUSINESSMAN, I THINK ONE OF THE THINGS THAT A LOT OF HERE IS RON BYRD THE CHEF.

AND I THINK THAT THAT'S WHY A LOT OF PEOPLE STOPPED IS TO BE ABLE TO INTERACT WITH THE OWNER OF THE BUSINESS.

I THINK THE PERSONAL TOUCH, ONE OF THE THINGS THAT I LIKE TO KEEP AS A PART OF MY BUSINESSES, THE HANDS-ON.

USUALLY WE HAVE CHICKEN WEDNESDAY, AS WELL BECAUSE WE DON'T CARRY CHICKEN AS A MAIN MENU ITEM, OTHER THAN THE KEBOBS.

BUT THE RIBS, YOU HAVE GOT TO TRY THOSE RIBS, BUDDY, AND WE WILL SEE YOU LATER.

WE RUN WEDNESDAY SPECIALS AND WEEKLY SPECIALS, AND WE DO PROMOTIONAL EVENTS, AND I BELIEVE IN PROMOTE, PROMOTE, PROMOTE.

YOU ALWAYS HAVE TO KEEP SOMETHING NEW IN FRONT OF THE CUSTOMERS'S EYE.

IF YOU WANT VEGETABLES.

ALL RIGHT, THANK YOU VERY MUCH.

WE'LL SEE YOU LATER.

>> I LOVE PEOPLE, I LOVE THE PEOPLE AND, YOU KNOW, EVEN IF I DON'T SELL, OR IF A PERSON DOES NOT COME HERE TO BUY, WHEN THEY WALK BY I CAN SHINE A LIGHT ON THEIR DAY AND MAKE IT BRIGHTER, AND I HAVE ACCOMPLISHED SOMETHING RIGHT THERE.

>> DO YOU HAVE BIG WEEKEND PLANS?

>> I HAVE NOT THOUGHT ABOUT IT.

>> HAVEN'T THOUGHT ABOUT THE WEEKEND?

IT'S WEDNESDAY.

WE ARE SUPPOSED TO BE MARCHING DOWN ON THE WEEKEND.

>> THAT LOOKS GOOD.

>> I DISCUSS A LOT OF MY IDEAS, FREELY WITH A LOT OF PEOPLE AND FOR EXAMPLE, THE LUNCH SPECIAL WE RAN TODAY WAS NOT MY IDEA, IT CAME FROM SEVERAL PEOPLE THAT I TALKED TO, THE BARBECUE BEEF.

IT WAS A GOOD IDEA, , AND IT PROVED TO BE A GOOD PRODUCT BECAUSE WE SOLD OUT.

>> THE BUCK STOPS HERE.

WHEN IT'S 3:00 IN THE MORNING AND SOMETHING NEEDS TO GET DONE, YOU GET IT DONE.

IF IT'S THE AFTERNOON AND THINGS NEED TO GET DONE, YOU WILL GET IT DONE.

AND SO I SEE A LOT OF PEOPLE THAT HAVE A LOT OF GREAT IDEAS, BUT I DON'T BELIEVE THAT BEING AN ENTREPRENEUR IS FOR EVERYBODY.

I BELIEVE IT'S FOR THE INDIVIDUAL THAT IS COMMITTED TO DOING IT, AND THAT REALLY BELIEVES IN WHAT THEY ARE DOING.

>> IT'S TRUE THAT IN THE BEGINNING MANY PEOPLE HAVE DOUBTS ABOUT BECOMING AN ENTREPRENEUR.

SOMETIMES IT'S BETTER TO START OUT SMALL, SPENDING LIMITED RESOURCES, AND IT CAN BE AN EFFECTIVE WAY TO DO MARKET RESEARCH.

RECOGNIZE THIS GUY?

IF YOU DON'T, CHANCES ARE YOU SOON WILL.

HE'S A BIG PART OF THE MARKETING EFFORT OF A SMALL SPECIALTY FOOD COMPANY.

SMALL COMPANIES HAVE TO MAKE THE MOST OF SMALL MARKETING BUDGETS, AND NOBODY DOES IT BETTER THAN UNCLE DAVE.

THE THREE FOUNDERS WHO STILL HAVE MONTHLY MARKETING MEETINGS IN THE KITCHEN WHERE THE ORIGINAL PRODUCTS WERE CREATED MAKE SURE THAT THEY GET THEIR NAMES OUT IN FRONT OF THE PUBLIC, ANY WAY THAT THEY CAN.

>> RIGHT THERE IS PLENTY OF PLACES THERE.

>> OKAY.

>> LIKE I SAID, YOU KNOW.

>> ARE YOU HANDLING THE PRODUCTS?

>> OH, YEAH.

OH, YEAH.

>> WHERE DO YOU BUY THEM FROM?

>> STONE MILL.

>> HE WAS VISITING US ON THANKSGIVING WEEKEND A COUPLE OF YEARS AGO, AND WAS AT A COUNTRY RESTAURANT EATING, AND HAD SOME KETCHUPEN AND THOUGHT IT TASTED TERRIBLE AND ASKED IF I COULD DEVELOP A RECIPE FOR KETCHUP THAT WOULD BE A HEALTHY ONE THAT WOULD TASTE GOOD, SO WE SET OUT TO DEVELOPING KETCHUP.

AND I DECIDED THAT IT WOULD BE WISE TO WAIT UNTIL AFTER THE FIRST OF THE YEAR TO COME OUT WITH IT, BUT UNBEKNOWNST TO ME HE HAD GONE OUT AND PRESOLD IT, AND SO ACTUALLY BY CHRISTMAS, WE WERE IN FIVE DIFFERENT STORES.

WE STARRED UNCLE DAVE'S BASED ON A GREAT PRODUCT, AND THEN WE DECIDED YOU NEED AN ATTRACTIVE LABEL, AND WE DECIDED TO NAME IT AFTER MY FATHER, DAVE, AND WE HAD AN ARTIST DRAW A DEPICTION OF HIM ON THE LABEL.

THAT LABEL IS AN ATTRACTIVE LABEL AND HELPS TO SELL THE PRODUCT WITHOUT US BEING THERE TO TELL YOU HOW GOOD IT IS.

THAT'S THE BASIS OF THE MARKETING IS WHAT'S ON THE LABEL.

AFTER THE KETCHUP WE CAME OUT WITH A DRIED SPICE BLOODY MARY MIX, WHICH WAS MY DAD'S RECIPE THAT HE HAD FOR YEARS AND YEARS.

THE REASON WE DID THAT AGAIN WAS BECAUSE WE FOUND THAT WHEN YOU ARE SELLING JUST ONE PRODUCT, A BUYER CAN SAY NO TO IT.

AND THAT'S IT.

SO WE CAME UP WITH THE SECOND PRODUCT AGAIN, WHICH IS MARKETING.

AND OF COURSE, WE CAME UP WITH THE PASTA SAUCES AFTER THAT.

>> HI, I'M UNCLE DAVE.

GLAD TO MEET YOU.

WHAT'S YOUR NAME?

JENNIFER.

MY NIECE, JENNIFER, HOW ARE YOU?

HAVE YOU TRIED OUR PASTA SAUCE?

>> NO.

>> IN OUR CASE WE DID NOT HAVE PAUL NEWMAN AS A SPOKESPERSONNING TO OUT THERE AND TELL THE AMERICAN PUBLIC WHY THE PRODUCT WAS SO GOOD, SO WE CREATED UNCLE DAVE, WE CREATED A PERSON WHO COULD REPRESENT THE WHOLE GOODNESS OF THE PRODUCT.

AT A TRADE SHOW, IT'S EXCITING.

YOU ARE NOT JUST A GENERAL MILLS OR ANY NAME BRAND, YOU HAVE A PERSON WHO REPRESENTS THE PRODUCT THERE, A PERSON WHO YOU CAN TOUCH AND TALK TO, BY DOING GRASSROOTS.

BY USING AN UNCLE DAVE AND USING OUR KIND OF LABELS.

WE HAVE GOT THE DISTRIBUTORS.

THEY GO AROUND AND THEY SEE LIKE HOW IS THIS PRODUCT OUT ON THE SHELVES, AND WE ARE NOT SELLING IT?

WE HAVE TO HELP THE DISTRIBUTORS.

THE DISTRIBUTOR WANTS US TO HELP.

THEY ARE JUST -- THEY TAKE ORDERS, THAT'S ALL THAT THEY DO.

THEY ARE ORDER TAKERS, AND THEY MAY HAVE 5,000 PRODUCTS AND THEY NEED TO TAKE THAT JUMP OUT OF THEIR WAREHOUSE ONTO A SHELF AND INTO A RETAIL ESTABLISHMENT.

IF THEY CAN USE AN UNCLE DAVE, OR SOMEBODY LIKE THAT, TO MAKE A MOVE, THEY LOVE IT.

>> OKAY SO WHAT WE'RE GOING TO DO IS WE WILL HAVE ONE -- WE ARE GOING TO PUT 5,000 PACKETS ON THOSE BOTTLES IN DIFFERENT MARKETS, AND ALL OF UNCLE DAVE'S PRODUCTS GO WITH SOMETHING.

SO WE FIGURED IT WAS NATURAL IF YOU HAVE GOT KETCHUP, YOU CAN GO WITH A HAMBURGER.

IF YOU HAVE A BLOODY MARY MIX IT CAN GO WITH A VODKA, SO WE SENT A SAMPLE OF OUR MIX TO THE HEAD OF ABSOLUT VODKA, JUST A LETTER, NO CALLS, WITH THE SAMPLE, AND THEY LOVED THE PRODUCT.

THERE IS NO WAY THAT WE COULD HAVE REACHED THE AMOUNT OF PEOPLE THAT WE REACHED THROUGH THIS TIME.

THEY PUT US IN THEIR NATIONAL ADS, WE HAVE DONE PROMOTIONS ON LOCAL AND STATE LEVELS AND NATIONAL LEVELS.

THEY HAVE SUPPORTED US BY TURNING OVER THEIR SALES FORCE TO US WHO HELP US TO SELL THE PRODUCT.

THE SALES PEOPLE GIVE US ADVICE ON HOW TO SELL IT, AND THEY HAVE HELPED US TO GET DISTRIBUTORS ALL OVER THE COUNTRY.

THEY FOUND BENEFITS AND WE FOUND BENEFITS THAT WERE BEYOND OUR IMAGINATION WHEN WE FIRST SENT THE SAMPLE.

>> THEY WOULD LOVE US TO BE INVOLVED, ON SUNDAY IS FAMILY DAY, 5,000 PEOPLE ARE COMING TO FAMILY DAY.

THEY ARE GOING TO SERVE MEATLOAF, AND WE WILL BE THE KETCHUP.

>> THE VALUE OF PROMOTION IS A WAYING TO YOUR NAME OUT WITHOUT SPENDING MILLIONS IN NEWSPAPERS AND MAGAZINES AND ON TELEVISION.

ANY WAY THAT YOU CAN REACH CONSUMERS ALMOST WHEN THEY ARE LEAST EXPECTING IT, WHETHER IT'S A HUGE BLOODY MARY IN THE MIDDLE 350-GALLON BLOODY MARY OR HANDING PRODUCT OUT DURING A FAIR.

PEOPLE WILL TAKE NOTE AND REMEMBER THAT.

>> GETTING PEOPLE TO REMEMBER AND THEN BUY YOUR PRODUCT OR SERVICE IS THE END GOAL OF MARKETING.

THE PEOPLE IN UNCLE DAVE'S SEEMED TO HAVE THAT DOWN.

IT'S CALLED GUERRILLA MARKETING, AND IT MEANS USING INNOVATIVE WAYS TO REACH YOUR CUSTOMERS.

IT COST MONEY, BUT OFTEN LESS THAN ADVERTISING ON TELEVISION AND PRINT MEDIA.

AND IT'S A LOT MORE FUN.

IN THIS WEEK'S LOOK AT SMITH AND POST, THE START-UP APPLE CHIP SNACK FOOD COMPANY WE'VE BEEN FOLLOWING, WE'RE GOING TO SEE ANOTHER METHOD OF FINDING OUT HOW POTENTIAL CUSTOMERS ARE GOING TO REACT TO A PRODUCT.

IT'S CALLED, A FOCUS GROUP, AND PETER, FROM BEHIND A ONEWAY MIRROR WILL WATCH A GROUP OF PEOPLE RESPOND TO THEIR PRODUCT, ITS NAME AND IT'S PACKAGING.

>> THE NAME IS SOMETHING THAT I WOULD EXPECT TO SEE ON A CEREAL ITEM FOR KIDS.

>> I DON'T KNOW.

I WAS TRYING TO DECIDE WHETHER THEY WOULD BE SALTY OR NOT.

>> WHAT WOULD YOU EXPECT?

SALTY OR SWEET?

>> I WOULD EXPECT SALTY.

>> SALT ON THEM.

>> HOW MANY WOULD EXPECT THAT TO BE SALTY?

LET ME SEE A SHOW OF HANDS.

ONE, TWO -- TWO OF.

>> FOCUS GROUPS WERE SCARY AND EXCITING.

IT ENDED UP BEING MORE DIVERSE THAN I EXPECTED.

AND THAT SHOCKED ME AND SCARED ME.

MY FEAR WAS HALF THE ROOM WILL NOT LIKE WHAT WE ARE GOING TO GIVE THEM, AND SO THERE WAS A LOT OF TREPIDATION IN THE INITIAL PART OF THE FOCUS GROUP.

THAT REALLY SETTLED DOWN, AND JUST BEFORE THE PRODUCT CAME OUT, I WAS LIKE, OH, NO.

WHAT'S GOING TO HAPPEN?

>> WHAT DO THEY TASTE LIKE?

>> I GUESS ALMOST LIKE -- ALMOST LIKE A CANDY.

REALLY SWEET.

>> AND HARD.

>> GOOD.

IT'S BETTER THAN SALT.

AND CRUNKY.

>> CRUNKY.

SWEET.

HARD.

>> IT WAS UNBELIEVABLE, THE RESPONSE.

THE PRODUCT SCORED IN VERMONT WITH ABOUT A 65% OR BETTER PURCHASE INTENT.

IN FOCUS GROUPS JIM WAS SAYING ANYTHING BETTER THAN 30% IS CONSIDERED A GO FOR MOST MANUFACTURING COMPANIES WHEN THEY ARE LOOKING AT FOCUS GROUPS.

>> I WANT TO GET A SHOW OF HANDS OF HOW MANY PEOPLE LIKE EACH NAME AS THEY GO THROUGH NOW, HOW MANY LIKE THE NAME, EARTH BORN.

A SHOW OF HANDS.

NONE.

SMITH AND POST.

>> WE HAD A WIDE RANGE OF BOTH NAMES AND PACKAGE DESIGNS BECAUSE WE WANTED TO SEE WHAT IS IT THAT WORKS.

>> VERMONT'S BEST, ONE, TWO, THREE.

FOUR.

NEW DAY.

YOU LIKE NEW DAY?

>> NO, I WAS TICKLING MY EAR.

>> THEY TOLD US NOT TO BE CUTE.

THEY TOLD US NOT TO DO ANYTHING COMICY OR CAMP OR OTHERWISE HUMOROUS.

IF WE ARE GOING TO DO ANYTHING, HUMOROUS AND RIDICULOUS, DO IT ON THE BACK.

DO IT SOMEWHERE ELSE, DON'T DO IT DIRECTLY RELATED TO THE PRODUCT.

>> SO YOU ARE SAYING AS A RULE IT SHOULD NOT LIKE DEHYDRATED APPLES?

>> IF IT'S NOT GOING TO BE.

>> YEAH.

>> OKAY.

LET'S TRY ANOTHER ONE AND FORGET THE FACT THAT IT'S -- [LAUGHTER] >> THE FOCUS GROUPS WENT BETTER THAN EXPECTED.

ALLEVIATED A LOT OF THE FIERCE THAT WE HAVE HAD ABOUT WHETHER OR NOT THIS PRODUCT IS GOING TO BE ACCEPTED BY THE CONSUMER.

>> THAT FELT GREAT.

>> I TELL YOU, IT WILL BE INTERESTING TO ASK THE SECOND GROUP.

>> WE CONTRACTED WITH THE SNACK FOOD CONSULTANT, AND HE PUT TOGETHER THE FOCUS GROUPS.

WITH HIS ADVICE AND THE FEEDBACK FROM THOSE GROUPS, WE ARE NOW REALLY ABLE TO FOCUS IN ON OUR MARKETING EFFORTS.

>> IF THAT'S THE CASE WHY DID THIS WORK AND DIDN'T WORK.

>> HOW COME YOU DON'T LIKE THESE BUT YOU LIKE THESE, AND WHAT'S THE DIFFERENCE?

>> WHETHER YOU HIRE A CONSULT ON A, SEND OUT CATALOGS, SELL FROM A PUSH CART OR BUILD THE LARGEST BLOODY MARY, THE NAME OF THE GAME IS EFFECTIVE AND COST EFFICIENT MARKETING THAT REACHES YOUR CUSTOMERS WITH A MESSAGE THAT GETS THEM TO BUY.

NOW HOW WOULD YOU DESCRIBE THE QUINTESSENTIAL ENTREPRENEUR?

>> HE'S A VERY REMARKABLE MAN, AND ALWAYS HAD STRONG BUSINESS GOALS AND DREAMS.

>> HE'S A TEACHER.

HE'S AN INNOVATOR.

>> HE'S AN ENTREPRENEUR WITH A MISSION.

>> HE CERTAINLY MADE ME PROUD TO BE A BUSINESSMAN.

>> HE'S PROBABLY THE GREATEST NETWORKER THAT I HAVE EVER >> HE'S THE MODEL OF WHAT BUSINESS COULD BE.

>> I AM TALKING ABOUT LIME AND WOOD.

>> LIME AND WOOD.

>> LIME AND WOOD.

>> LIME AND WOOD AT 81 YEARS OF AGE IS STILL VENTURING AND SHOWS NO SIGNS OF GIVING UP.

IN NEARLY 60 YEARS IN BUSINESS HE'S BEEN AN INSPIRATION AND MENTOR TO SCORES OF SUCCESSFUL ENTREPRENEURS.

FOR ANYONE WHO THINKS THAT SELLING THROUGH THE MAIL IS NEW WAVE MARKETING, LISTEN TO THIS.

>> I WAS WORKING WITH MY BROTHER-IN-LAW IN BOSTON, AND IT WAS 1932.

AND ONE OF THE THINGS THAT THEY HAD GOING WAS A MAIL ORDER BUSINESS SELLING USED MOTORCYCLES BY MAIL.

WITH A VERY SIMPLE PROCESS, THEY WOULD RUN A ONE-INCH HAND IN THE POPULAR MECHANIC'S MAGAZINE, AND WHICH WENT ALL OVER THE COUNTRY, AND IN FOREIGN COUNTRIES, TOO, AND THEY GET AN INCREASE FROM THIS SMALL AD, AND THAT WAS MY FIRST GOOD LOOK CLOSE UP IN THE MAIL ORDER BUSINESS.

AND IT DID NOT SURPRISE ME BECAUSE I DIDN'T KNOW ANY BETTER THAT THEY COULD SELL MOTORCYCLES, BIG ITEMS LIKE THIS BY MAIL AND PEOPLE WOULD SEND MONEY IN, AND IN ADVANCE AND MAYBE I REMEMBERED THIS LATER ON WHEN WE TRIED TO SELL TILLERS AND THINGS LIKE THAT BY MAIL.

PEOPLE WOULD WONDER IF THEY WOULD BE AMAZED THAT YOU COULD SELL SOMETHING AT BIG BUY MAIL, BUT THERE IS NOT ANYTHING NEW ABOUT IT.

HERE THEY WERE SELLING MOTORCYCLES IN THE 1930s AND SEARS ROEBUCK WAS SELLING HOUSES IN THE 20s AND MAYBE BEFORE THAT.

I HAD A CHANCE TO SEE THAT WHAT THE PROCESS WAS, AND IT SEEMED LIKE A GOOD IDEA.

YOU COULD DO IT FROM HOME.

YOU COULD DO IT FROM ANYWHERE.

YOU COULD LIVE WHERE YOU WANTED TO.

IN A SMALL TOWN OR IN A DISTANT STATE OR A RURAL AREA LIKE VERMONT.

YOU DID NOT HAVE TO -- YOU DID NOT HAVE TO BE IN THE CITY TO DO IT.

AND YOU COULD START ON A SMALL SCALE, AND SPARE TYPE, TEST AN IDEA.

AND DOING BUSINESS FOR CASH IN ADVANCE, MOSTLY.

THE MAIL ORDER BUSINESS IS LIKE FISHING.

YOU CAST A LINE AND YOU GO A BITE.

YOU KNOW THAT SOMEBODY IS ON THE OTHER END OF THE LINE.

EVERYTHING IS MEASURED RESULTS.

YOU KNOW HOW MANY, HOW MUCH YOU PAID FOR THE ADVERSEMENT AND INQUIRIES IT PULLED, SO YOU KNOW WHAT THE COST FOR INQUIRY IS.

AND YOU KNOW WHAT YOUR CONVERSION RATIO IS FROM DIFFERENT ADS TO DIFFERENT PIECES OF COPY.

IT'S REALLY THE ESSENCE OF THE SCIENTIFIC PROCESS.

YOU THINK UP SOMETHING TO TRY AND YOU TRY IT, AND YOU SEE WHAT THE RESULTS ARE, AND YOU THINK ABOUT WHAT DO WE DO NEXT?

AND YOU ARE ALWAYS DOING THAT.

IF YOU HIT ONE OUT OF FIVE, BUSINESS IDEAS AT WORK, AND IT TURNS OUT TO BE A GOOD ONE, IT'S WELL WORTH IT.

A LOT OF TIMES ENTREPRENEURS ARE SO EAGER TO GET ON THE MARKET WITH SOMETHING, THAT THEY GO AROUND AND RAISING MONEY TO DO IT.

AND IN THE PROCESS THEY GIVE AWAY A LARGE PART OF THE BUSINESS.

AND WHEN THEY SUCCEED, THEY ARE VERY, VERY UNHAPPY ABOUT THIS, THAT THEY HAVE GIVEN AWAY A LOT OF WHAT THEY COULD HAVE KEPT FOR THEMSELVES.

THE LESSON IS TO NOT, NOT LET ANY MORE EQUITY OUT OF YOUR HANDS THAN YOU HAVE TO.

IF YOU TAKE IT SMALL AND EASY TO BEGIN WITH, LET IT GROW BY ITSELF, NOT BE IN TOO MUCH OF A HURRY, IT CAN GROW OUT OF ITS OWN, GENERATE ITS OWN CAPITAL.

THAT'S PARTICULARLY TRUE OF THE MAIL ORDER BUSINESS WHERE YOU ARE DOING BUSINESS FOR CASH IN ADVANCE.

I DON'T THINK I EVER PLANNED TO MAKE A CAREER OUT OF PREACHING OR TEACHING OR PUSHING COUNTRY LIVING.

I LIKE LIVING IN THE COUNTRY.

THAT'S A VERY IMPORTANT VALUE TO ME COMPARED TO LIVING IN THE CITY.

I LIKE BEING IN A BUSINESS OF MY OWN.

I THINK THAT NOT WANTING TO LIVE IN THE CITIES HAD MORE TO DO WITH WHAT I HAVE DONE EVER SINCE THAN ANYTHING ELSE BECAUSE I HAD TO FIGURE OUT HOW TO MAKE A LIVING OUTSIDE OF THE CITY.

MAIL ORDER WAS ONE WAY TO DO IT.

TRIED IT, AND IT WORKED.

AND SO THAT WAS THE WAY THAT THE TWIG WAS BENT.

[LAUGHTER] >> I'M GLAD HE SAID THAT.

REMEMBER, IT'S IMPORTANT TO KEEP SIGHT OF YOUR PERSONAL GOALS WHILE YOU ARE STARTING AND GROWING A BUSINESS.

AND HE ALSO MAKES THE SAME POINT THAT WE HAVE HEARD OVER AND OVER TONIGHT.

YOU ARE DESIGNING YOUR MARKETING STRATEGY, LOOK FOR THE SIMPLEST AND MOST COST EFFECTIVE WAY TO REACH YOUR CUSTOMERS.

MAKE SURE THAT YOU KNOW WHAT MOTIVATES THEM TO BUY.

TONIGHT WE LEARNED SOME OF THE BASICS OF MARKETING.

NEXT WEEK WE'RE GOING TO BROADEN OUR VIEW AND DISCOVER HOW COMPANIES MOVE BEYOND THEIR INITIAL PRODUCTS OR MARKETS AND ATTRACT REGIONAL, NATIONAL, AND EVEN INTERNATIONAL CUSTOMERS.

IT'S AN INCREASINGLY COMPETITIVE AND EVER-CHANGING MARKETPLACE, AND THE COMPANY THAT UNDERSTANDS THAT IS A COMPANY THAT MAKES IT.

THAT'S VENTURING.

I'M CAROL DILLON.

SEE YOU NEXT WEEK.

>> THIS PROGRAM WAS MADE POSSIBLE BY A GRANT FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT.

>> FOR MORE CLASSIC PROGRAMS, VISIT VERMONTPBS.ORG/FROMTHEARCHIVES.