“ Is an interstate brand worth more than a local brand  ”

MARKETING TIPS

by Ken Mitchell

15 April 2002

Every week I receive 2 or 3 calls from interstate businesses trying to expand their market by trying to penetrate the ACT market.   Typically these calls are marketing replacement computer peripherals such as toner or inkjet cartridges, or some such product or service.   In every instance I refuse to buy from interstate businesses provided I can source a local ACT business that can offer comparable service and price.

If every ACT business did the same thing then we would mutually foster business growth, jobs and a sound local economy.  

The ACT Government has a policy to do this but is this as much of a reality as it proports to be.   Recent tenders for ACT government business that we have submitted have gone to interstate market research businesses for a higher price for the same bread and butter research.   Our follow-up to our submissions has found that 3 tenders were invited, we were the ACT research business invited to apply, and that the successful interstate tender was for a substantially higher price.   The deciding factor of “value for money” is judgmental and can often incorporate a margin for “well known national brand” thinking that the outcome would be better than a “lesser known local brand”.

My market research colleagues (competitors) in the ACT are competent with good local track records and I believe are deserving to least be invited to tender.   If we all practiced what we preach then the ACT economy would be stronger.

Ken Mitchell is the CEO of Australian Marketing & Research Services and can be contacted on 62576677w, or kenmitch@austarmetro.com.au