The Internet and the Fitness Business Summary

[Deserve]

The Internet and the Fitness Business Summary

Although the original question was poised around viral marketing a number of topics and authors were discussed. Given that the thread is getting long I thought I would summarize because someone might find it useful and it could stimulate further discussion. If I have stated something incorrectly please make a post. I tried to fit all the discussion into the outline. To my knowledge the only part that was purposely left out was the discussion on distribution channels as it was specific to one company. If you are really interested there is an amazing amount of details, specific testominy and examples of everything in the original thread.

Authors referenced:

• The Long Tail, Chris Anderson
• The Anatomy of Buzz, Emanuel Rosen
• Buzz Marketing, Mark Hughes
• Brand Management, Harvard Business Review Press
• Seth Godin
• The Tipping Point, Malcolm Gladwell
• Alwyn Cosgrove’s Blog, “Quality vs Quantity”

Concept Discussed:

• Viral Marketing AKA Buzz Marketing, Word-of-Mouth

Key Points:

• Internet forums are social networks and information flow can be analyzed using social network analysis.
• Social networks are linked through member participation in multiple forums.
• The goal of viral marketing is to create word of mouth through networks and move products more quickly through the product adoption curve to the widest possible audience tipping the buying decision to an earlier point.
• Information or buzz moves faster through the network by utilizing mega hubs and hubs.
  • Mega Hubs are traditional media outlets such as T-Nation, Men’s Health and Men’s Fitness
  • Hubs are opinion leaders in a network such as Mahler. In most cases hubs are early adopter on the product adoption curve. Not all early adopters are hubs. Early adopters will buy in the introduction stage, usually at higher prices, and tend to have a disproportionate interest in new technology.
  • To drop information into the network there has to be a degree of consumer confidence in the product to minimize the probability of buyer’s remorse. This is most evident by spammers versus the regular contribution of fitness professional in a network.
• Quality versus Quantity:
  • “Quality counts a lot” is the consensus. Quality ultimately is what creates buzz that reverberates the information through networks.
  • True quality is used interchangeable for perceived quality.
  • Quality counts in all facets of the product including customer service.
  • The consumer responds to quality
  • There are multiple tools available for the fitness professional to utilize to minimize cost and maximize quality such as content and copy editing.
  • There is a break even point and point of diminishing returns that needs to be considered. A cost benefit analysis should done to assess.

Concept Discussed

• Brand Extensions

Key Points

• Existing products can be created providing additional revenue opportunities.
• Brand extensions compliment existing content.
• Extending their presence in the market place can be used to influence the product adoption curve and provide multiple price points enhancing the product mix.

[Lou Schuler]

Great summary!

It's amazing to think back just a few years, when the top experts had no access to the broader audience that could use their ideas and systems. So magazines like Men's Health and sites like T-nation introduced them to that audience.

Now, the top folks have many more ways to promote themselves without needing the gatekeepers.

The upside is that they can present their own ideas, unfiltered.

The downside is that it's harder than ever to figure out who are really the top people, and who merely present themselves that way.

So the gatekeepers still matter, and the filters still have a role, but the game sure has changed from just a few years ago.

[Chris Correia]

Great summary, Gabe. Now can you do the expanded/annotated version, so that it's more useful for implementation by folks like me? LOL

I've not kicked into this discussion due to some time constraints right now, and I have to read and think too much to jump into this. But, I've getting a lot of perspectives and info, and am following it. I hope it continue, even if it branches out into some different directions. But then it will be more summarizing and organizing. Ready for that?

[Deserve]

Chris,

It would be fun to do an example blueprint product launch utilizing many of the concepts above coupled with some ones we have yet to touch on. As you would expect my day job doesn't allow me to do much fitness product work although I get to use all of this regularly in other less passionate/fun regards.

Lou you hit on some great points I'm going to ponder on it a bit before I respond. The idea of gate keepers and filters or as a group I'll call them barriers to entry is an interesting thought. Our entire discussion could be titled utilizing the Internet as a new media.

[UpNorth]

Great stuff! I'm not sure how I missed the last thread (or where to find it yet) but there is a lot of "food-for-thought" in that summary. One thing I'd like to add hits on one of my pet peeves. It's not "quantity vs. quality" -- no one cares about either as long as it "matters." You have to create a message that shows what your pitching matters to the prospective buyer. If it doesn't effect them in some way they won't care, regardless of how brilliant or big it is.

Edit: sorry about all the quotations. I normally don't speak (or write) quoting everything

[Lou Schuler]

The idea of gate keepers and filters or as a group I'll call them barriers to entry is an interesting thought.

I didn't mean to portray my one-time role as that of a barrier. I saw it more as a talent scout, a guy who could recognize talented people with great ideas and help them into the mainstream, for the benefit of the readers who'd get better results by using their methods.

To me, we were taking guys who had success one-on-one with athletes and clients and helping them reach tens of thousands.

I don't think we acted as barriers to anybody, although I'll concede some may have viewed it that way.

My feeling, then as now, is that someone with credentials, experience, interesting ideas, and practical ways to implement those ideas will find an audience. If I didn't choose them for Men's Fitness or Men's Health, there were many other places they could go to get into print.

And if they got rejected in all those places, well, then maybe the barrier wasn't at our end.

[Deserve]

UpNorth...the original thread is probably on page two. If this kind of thing interest you then it is worth the read.

Lou,

I think of barriers to entry in a number of ways. In my mind the large publishing house have put up strong barriers to entry into their market. Barriers being cost, resources, access to markets, marketing might and to an extent, filters what they think consumers want. I agree with your earlier comment if you've got the right ability to generate interest, those barriers are significantly reduced by some of the things we talked about in ways that just now people are beginning to understand.

It poses an interesting question. Are we eventually going to see fitness publishing (books not magazines) fragment as more and more independent sellers learn to better use all the marketing tools and blended product that the Internet affords?

Basically, I think we largely agree on this one. As usual I am taking a lot of words to say it.

[Lou Schuler]

It poses an interesting question. Are we eventually going to see fitness publishing (books not magazines) fragment as more and more independent sellers learn to better use all the marketing tools and blended product that the Internet affords?

That is the question. There are only so many trainers who can get on Oprah and sell millions of books. A few dozen trainers and authors can consistently sell enough books to justify space on the shelves of Borders and B&N. But lots of people can reach smaller, more targeted audiences with specialized products.

What we don't know is whether it makes sense for the big publishers to get involved in the quest to find those select audiences. The answer is probably no, so now it's a matter of independent and self-publishers figuring out how to do get to those select pockets of enthusiasts with targeted products that will a) help those enthusiasts reach their goals and b) turn a profit for the authors and/or publishers.

If someone figures out how to do it consistently and with consistently low overhead -- that is, if someone can figure out a business model that doesn't end up being just a smaller version of the big publishers, with high fixed costs that necessitate a steady stream of products that the audience may or may not want -- that person stands to make a lot of money.

[Lost Dog]

Lou,

We've gotta get you on the Oprah Winfrey show when that next book comes out.

Mr "Fitness Business Summary" (deserve/Gabe) start thinking viral (or whatever) for Mr. Schuler here.

[Lou Schuler]

Lou,

We've gotta get you on the Oprah Winfrey show when that next book comes out.

Sounds good to me. I'll owe you a beer if you pull it off ... if not an entire liquor store!

[ninja]

Originally Posted by Lou Schuler

Sounds good to me. I'll owe you a beer if you pull it off ... if not an entire liquor store!

And I'll have to get tickets!!!

(tickets to Oprah..... *shudder*)

[Chris Correia]

Originally Posted by Lou Schuler

Sounds good to me. I'll owe you a beer if you pull it off ... if not an entire liquor store!

Watch out Ryan Lee! LOL

Lou: Actually, the lifting for ladies is a pretty good reason to get more exposure. I'm not sure how it's shaping up, but think about it: no more stupid machines, no more Curves for Women, no more aerobics classes or DVD's. Just real lifting. Sounds like something a woman like Oprah could jump on.

I'll help (I'll always take a free liquor store)!

[Deserve]

Originally Posted by Lou Schuler

That is the question. There are only so many trainers who can get on Oprah and sell millions of books. A few dozen trainers and authors can consistently sell enough books to justify space on the shelves of Borders and B&N. But lots of people can reach smaller, more targeted audiences with specialized products.

What we don't know is whether it makes sense for the big publishers to get involved in the quest to find those select audiences. The answer is probably no, so now it's a matter of independent and self-publishers figuring out how to do get to those select pockets of enthusiasts with targeted products that will a) help those enthusiasts reach their goals and b) turn a profit for the authors and/or publishers.

If someone figures out how to do it consistently and with consistently low overhead -- that is, if someone can figure out a business model that doesn't end up being just a smaller version of the big publishers, with high fixed costs that necessitate a steady stream of products that the audience may or may not want -- that person stands to make a lot of money.

There is an interesting analog in the oil and gas industry that might be worth some further study. Big Oil (Exxon, BP, Chevron, etc) only goes after big discoveries because of the economics they need achieve. Smaller companies, commonly referred to as independents, have made millions on the cast offs of big oil plays that big oil can't make economic. Why is this? For all the reasons you mentioned above. Their cost and risk profiles across their portfolio's are different. I'm making this grossly simple but the point is the same and proves your point.

[Deserve]

Originally Posted by Lost Dog

Lou,

We've gotta get you on the Oprah Winfrey show when that next book comes out.

Mr "Fitness Business Summary" (deserve/Gabe) start thinking viral (or whatever) for Mr. Schuler here.

Roland thanks for the compliment. I love this stuff and am blessed with being able to do it for a living. Writing a book with Lou would be a humbling experience. There is a reason that he gets the big chair at the summit. Also I have no buzz. I better stick to writing articles and white papers in the circles that I know.

The better title would be, The Virus to Catch or Why you want to catch a virus.

[Lost Dog]

After you help us get Lou booked on Oprah (when his "lifting for chicks" comes out), you'll have a test case for your virus article.

You guys have some good ideas. I can see Lou, in his big comfy chair, right next to Oprah, already.

[Chris Correia]

Any comments I have for the time being got expressed HERE. It's not educated or experienced, in any marketing sense, just my man-on-the-street impressions.

It will be interesting to have some of our resident marketing experts analyze it.