Friday, March 27, 2009

Marketing Quote of the Decade

"The best products and services sell themselves. The rest have to be advertised. Moral of the story: if its advertised, it probably sucks"

So where are you investing your scarce marketing resources: in the product or the communication?

Friday, March 13, 2009

Are You Boring?

Do your customers talk about you?

Do you stay well past quitting time working on rainmaking projects? Or do you fret away with useless applications that no one really cares about.

Do you seek to not only understand the "how" of things but "why" you do it?

Do you avoid cynical, commodity thinking?

Do you prefer to take risky, inspiring ideas and bring them to fruition?

Do you look to cross the chasm from Good to Great?

Then you're not boring.

Becoming unboring is not free. It not only requires time, sweat, and money, but a willingness to be wrong. A willingness to make mistakes.

Being unboring is a choice. Which side are you on?

Thursday, March 12, 2009

Understanding Marketing Myopia

Selling has historically focused on the needs of the seller; marketing, on the needs of the buyer.

Organizations must not think of themselves as a producers of good and services, but as buying customers. Yes, that's right, using la carte de credit, and investing in the people who buy from you.

To do this, you have to go back to the basics: What business are you really in?

Had the railway industry defined itself in the transportation business instead of just trains, it is very likely they would have been well positioned against the future competition of cars, buses, and planes.

It is the reason why Honda doesn't make the best cars in the world, they make the best engines. Successful travel agencies don't book travel, they look to create permanent life memories. Great consultants don't just solve your problems, they make sure they stay solved.

Failing to focus on what your real core strengths in a vertical (industry) rather than horizontal (different sectors) creates companies that end up being stuck in a rut with no prospects for future success.

The road to success is lined with mediocre, short sighted train wreck,s that prevent you from crossing the chasm of good to great.

Don't be one of them.

Monday, March 9, 2009

The only sustainable competitive advantage you have...

Is superior understanding of your customers.

You cannot, repeat, cannot, maintain a tech or marketing advantage in the long run, as its way too easy for somebody to copy what you're doing.

You must not only figure out what customer's value your product/service/idea, but why.
  • Why pay a premium for you product when the competition sells for less?
  • Why drive the extra 25 km to a corner store when they are 4 less than a block away?
  • Why should I tell my friends about you?
  • Why is your offering so irresistible I cannot be forced to keep it a secret?
  • Why value our relationship?
  • Why are you remarkable?
  • Why should I stick by your side in good times and bad?
If you don't understand your customers, your competition just might. And that might put you out of business for good. Especially during recessions.

Thursday, March 5, 2009

The Real Economic Problem

Today's major world problem is not the current recession but what caused it: overcapacity.
  • Customers are scarce, but products aren't
  • Finding demand for an idea is tough, but supply is easy.
  • Following the crowd is safe, being different is hard and scary.
When we have overcapacity (real estate bubble, and financial interments that no one really understands) hyper competition becomes a serious threat to our way of life. With too many goods chasing too few customers, coupled with a lack of real differentiation, a dog eat dog behaviour ensues, leading to market failure.

The old economy is based on manufacturing industries. The new economy is based on creating knowledge that is worthy and highly spreadable.

Sometimes its really hard to notice the writing on the wall, but the sooner we do, the faster we can prepare for the future.

Sunday, March 1, 2009

Forget the marketing mix - Introducing the 4 C's of Marketing


We all know about the 4 P's of Marketing: Product, Price, Place and Promotion.

The problem with this approach is its selfish marketing. Inward thinking. Creating the product before creating the marketing. The traditional way of "marketer knows best" thinking.

It seems not much has changed since the invention wayyyy back in the 1940's, except that approx 80% of all new products fail each year using this model. So much for foolproof thinking.

Marketers who subscribe to the new marketing philosophy of customer centric marketing know we've already moved past this model, thanks to Bob Lauterborn to the four C's:

Customer
Developing a product and then trying to sell it to the mass market doesn't work so well anymore (I wonder why). Studying what your customer wants and attract them with something each wants. This is much like Seth's book on Tribe building. Find a tribe of unsatisfied customers and then develop your offering to solve their problem. The marketing comes
before the product!

Cost

Never (ever) compete on price alone. There are far too many businesses that are willing to go bankrupt before you on price - don't be one of them. Unless your Wal-mart or have some secret distributive strategy that makes Amazon and China jealous, you need to understand that cost is only one part of the value equation. People may well pay more money (and they do) if the value is higher than the cheap mass market alternative. Understand the true cost to satisfy your client. Think in resources and value, not dollars and cents.

Convenience
You must think of convenience to buy instead of place. Not everyone prefers to buy the same way. Some prefer online shopping, others bricks and mortar. Some require 24 hour round the clock support (late majority), while others prefer the challenge of figuring how to use your product (innovator/early adopters). Understanding how they buy and what resources they need before/during/after a sale is critical.

Communication
Promotion can be (is!) manipulative. People have been burned for far too long about gimmicks, guarantees, and questionable offerings to be duped later on. Communication requires a two way dialogue between the buyer and seller, that personalized, anticipated, and relevant to their wants. Never mind the fact that being a facilitator and collaborator instead of a dictator/manipulator can do wonders to brand building.

Remember who keeps you in business.