Extending The Brand: How To Best Leverage Strong Magazines

Circulation Management, Oct 1, 2003

"The energy and money required to replace these orders could be spent on building customer loyalty," Roman says.

* BE VALUE-DRIVEN, NOT PRICE-DRIVEN

Roman believes you will never win on price and you will always win on value. She does not embrace the strategy of step-up pricing where "you treat your best customers the worst." "I know it's provocative to say this, but you are going to give the best pricing to someone you have never seen before. And then when they reward you with their loyalty, you are going to charge them more. It seems like a backward mentality."

Taunton has one price for each of its magazines. "We do not discount our price," says Roman, "so when people subscribe, they know they are getting the best price."

Price is the perception of value, Roman says. "If you were to walk into a Wal-Mart and see a bicycle for $99 and you walk out the door and see a $400 bicycle in a bike shop, in your head, what are you going to think?" Roman asks. "You are going to think the $400 bicycle has more value because it has a higher price. You may not be able to afford it, but in your head you say that's got to be a good product. What are you telling your readers about the value you place on your products through pricing? Remember, if they have a passion for it, they will pay for it."

* HAVE CONFIDENCE IN YOUR PRODUCTS

"Everyone on your staff put a lot of effort into making great magazines," says Roman. "It's not easy work. So make sure you don't do damage to your brands through your promotional efforts."

Above all, live your positioning statement. For rate base, advertiser-driven publications, these ideas can work, too.

"In the end, the advertiser will be there because you will have a better customer for them to position their products for," she says. "Customer respect will reward you."