Top 10 Marketing Must Dos

Here are ten essentials of marketing for the next 100 years to ensure that this industry continues to thrive and contribute to the growth of the U.S. economy.

1.  Become increasingly targeted, focused, and personal: The future is a world in which consumers receive only messages that interest them… and only when they are receptive to these messages.  However, marketing goes beyond just communicating with customers.  It encompasses the entire process of customer relationship management… attracting, retaining and growing long-term loyalty.

2.  Build real, tangible and enduring brand value: Fundamentally, marketing is about building brands and brand value.  As an industry, marketing must focus on taking strong brands and making them stronger; taking brands that have lost their way and restoring them to prominence; and building new, powerful brand that meet the emerging consumer needs of tomorrow.

3.  Become increasingly effective, more creative, insightful and accountable: Marketing effectiveness depends on smart consumer insights that are meaningful, actionable and predictive.  Effective marketing also requires great creative, driven by these consumer insights.  Effective marketing must be reliably and consistently accountable, informing us about how well we are building brands and growing business.

4.  Become more integrated and proficient in managing expanding media platforms: Marketing must be seamlessly integrated across all media and marketing functions.  Integrated marketing, however, continues to be talked about more than actually implemented.  Marketers must strategically approach decisions and media choices in a completely agnostic fashion.  Every marketing resource must seamlessly work to build brands and grow businesses.

5.  Supply chain must become more efficient and productive: Marketing efficiency enables us to shorten the supply chain, reduce waste and improve productivity.  Ad-ID is the foundation of digital workflow throughout the marketing process.  It will improve the accuracy of reporting and evaluation of advertising assets, affording process improvements and cost savings for everyone.

6.  Ecosystem- including agencies, media, and suppliers- must become increasingly capable: Today’s marketing ecosystem comprises a complex, interconnected community of advertising agencies, media organizations, research firms, production companies and other resources that support marketers’ needs to build brands and expand market share.  Marketers need these partners to continuously create new ideas and competencies.

7.  Professionals must become better, highly skilled, diverse leaders: As we prepare for the future, we must cultivate the talents, skills and continuous development of marketing professionals.  We must also embrace diversity, a vitally important factor in reaching and influencing culturally different consumers.  Diversity contributes to a more inspiring and creative environment… one that grows companies for a lifetime.

8.  Be indisputably socially responsible: Consumers must have trust that the companies they choose to do business with respect their personal values and are sensitive to larger societal issues.  As an industry, we must continue to commit resources to socially responsible endeavors.  The future of marketing depends upon us behaving and acting in the best interests of society.

9.  Be unencumbered by inappropriate legislation or regulation: We must protect marketing’s First Amendment rights, even with regard to controversial products.  We must also vigorously work to defeat proposals for taxes on advertising and efforts to alter its 100% tax deductible status.  Finally, we must continuously strengthen our exemplary record of self-regulation.

10.  The Marketing discipline must be elevated and respected: We must continually underscore the fact that, nationally, marketing generates over $5 trillion in economic activity, or about 20% of total U.S. economic activity.  Sales of products and services stimulated by advertising support 15% of the jobs in the country.  Building respect for marketing’s economic impact will help attract the best and the brightest to our profession.

by Bob Liodice, President & CEO, ANA (Association of National Advertisers)

Spider Monkey Syndrome

There’s an old wives tale that (like most stories with a moral) seems to entertain children, but holds a fascinating lesson for budding entrepreneurs.  I’ll share:

A hungry spider monkey was wandering in the forest looking for food and came upon a glass jug with a piece of food in the bottom.  He reached deep inside the jug and grabbed the food in his fist.

But, when he went to pull his hand and food out of the jar, he discovered that once his fist was closed, it was too big to fit through the mouth of the jug.  He pulled and pulled and tugged and tugged for days and weeks on end, but he wouldn’t let go of the food.  He forgot to sleep.  He forgot to drink water.  To the spider monkey, everything else in life slipped away.  Nothing existed but the food in his hand and the problem of the jug.

Finally, the spider monkey died… He died holding on to that one piece of food.  In the middle of a forest, teeming with berries and nuts and leaves and seeds and flower nectar and small bird eggs.

Hey, start-up business owner… what are you holding on to?   JUST LET GO and DO the next right thing.

Hey, BCS…

If marketers are looking for a concrete example that social media can’t cure their ills, they need look no further than college football’s Bowl Championship Series.  Almost two months ago, the BCS took to Facebook and Twitter and was immediately dogpiled by thousands of angry college-football fans.  The BCS learned quickly that if your product is hated, social media might not be the place for you.

Now, I’ll give the BCS some props for trying… even though execs should have known the reaction before this initiative even moved out of the “napkin” stage.  And, perhaps it deserves a couple more points for saying the right things some of the time.  BCS Executive Director Bill Hancock said the series wants a “two-way conversation… That’s the great thing about social media. (duh)  It gives everybody a chance to weigh in.”  (golf clap everyone)

Of course, that sentiment was undercut by other statements, including the claim that the BCS is encouraging active debate on its Facebook page (which I can’t believe is still active), and Hancock dragging out the standard statement the BCS has been issuing for years:  “We think a lot of the feelings out there are because people just don’t understand it.”

That’s right, Bill… your audience else is wrong.  The problem isn’t the product; it’s the customers.  Wow.  The truth is that other than the executives of the BCS, the sponsors who have money tied into the current bowl system, and the coaches who are at the top of the BCS standings when interviewed (and therefore have a financial interest in “staying happy” with the system), it’s hard to find any real fans who support this system as it stands.

Sure, the BCS has turned to social media because of a everyone-else-is-there-so-we-should-be-too mindset, but it has also closed its eyes and covered its ears as it goes on saying the same message it always has.  If doing the same thing over and over again expecting a different result is the definition of insanity, then saying the same thing over and over and expecting people to start believing isn’t much better.

Excerpted from Ken Wheaton’s editorial commentary “Viewpoint” in the November 30, 2009 issue of Advertising Age.

What’s Your Budget?

The infamous question that starts off any project… of any size and in any industry.  Now, I know when I get in my car and head to Neiman’s exactly what I’m looking for (ideal situation), what I’ll take instead (fallback position), and the amount in my wallet to cover said item.

So, when it comes to business projects, shouldn’t this question be just as simple to answer?  But, all too often, you get a muffled “we don’t know” or a mumbled “what do you think the scope of the project is?”  Why?

Usually, in my opinion, there are two issues at hand that are going through the client’s mind:

1. How much SHOULD it cost?
2. Can I trust you?

How much should it cost? This issue is founded on the fact that clients rarely have an idea of what a project should cost.  If they knew your industry, they would be talking to you.  Plus, as is often the case with complex projects, there are different moving parts that have to be addressed-  photography, design, copy, information flow, web design, messaging, etc.  Communications related projects (i.e. marketing, web site, public relations) are massively variable.

There are a variety of ways to meet your marketing objectives… some more expensive and some more of a risk than others.  Telling me, your potential marketing consultant, how much you REALLY have to spend means we can use our time understanding your issues and creating a solution, rather than developing over-expensive ideas that you can’t afford.

Can I trust you? This second question is the even more crucial question.  Some people feel that if they let on how much they have to spend, the consultant/agency will always match that exact number or go for something around 5-10% more.

Imagine going shopping for someone else, with a “very tight budget.”  What does that mean?  If you’re shopping for my 92-year-old grandmother, that might mean $19.95 or less.  If you’re shopping for my best friend, Bridget, that might mean getting the $1495 Gucci rather than the $2495 Valentino.

When you keep your potential consultant in the dark, yes, they might come back with a cheaper quote.  But will your complete needs be met?  A “drive them down” mentality has several flaws, and it’s often the reason for projects going sideways.  After all, any decent consultant and agency will always work to your budget… whatever it is.  That’s the point of a budget.

Giving your potential consultant clear guidance on how much money you have to spend isn’t just important, it’s absolutely vital.  Without it, it’s very hard for me to get your marketing communications right.  Bizarre really, that so many companies think they can save money by keeping their agency in the dark.  It’s even more bizarre that those same companies why they didn’t get what they were wanting at the end of the project.  Now, isn’t THAT the real waste of money?

Trade Show ROI

The World Wide Web may have profoundly changed not only business, but the business of marketing, yet the face-to-face interaction of the trade show endures… in fact, it’s thriving.  In many industries, attendance is practically mandatory (think CES).  If you’re not there, you’re nowhere.

For many seasoned companies, however, trade shows are less an opportunity to book new orders than a chance to strengthen existing relationships because everyone is so busy with the normal day-to-day.  However, for those two, three or four days, you’re all gathering in one place which can draw a lot of industry media attention.

Because of this attention, along with the draw of potential customers, companies often use trade shows to unveil new products, to show the marketplace that they are improving their business, and make a bigger/broader impression.  Still, the trade show is a costly marketing tactic… sometimes the single most expensive medium choice a company can make.  So, to make a commitment to maximize your investment months before the opening day.  The worst thing you can do is show up at the show, set up your expensive booth staffed by even more expensive employees, and wait for the people to show up.

1.  Lay the Groundwork: Set specific goals to acquire qualified leaders that can be converted to sales.  Decide in advance how many prospects you want to acquire. If publicity is your aim, set targets for media interviews.  Make appointments in advance by sending out advance invitations for key prospects and/or media to the show.  Train, train, train your booth workers.  Avoid wasting time with visitors who aren’t serious and complete the interaction with a true prospect in 10 minutes.  Take a few moments at the end of each day while at the show for a staff huddle.  Review the successful (and not-so-successful) interactions with an eye on making improvements the next day.

2.   Look Your Best: A small company at a major trade show can be easily overwhelmed by the competition.  The trick is to become “a show within the show.”  For starters, consider upsizing from a 10-foot booth to a 20-foot booth.  You double your billboard space and it looks like you could spend more than the minimum to get in.  You then have enough room to divide the space between direct selling and relationship building areas.  The rule of trade show design is that a person should be able to walk by your booth and in five or six seconds have an idea of what you’re selling and whether or not it applies to them.  Consider freebies… a smartly designed tote bag, for example, may actually get attendees to advertise for you… all day long!  However, tchotchkes can be an expensive waste so at shows where much of the audience may be unqualified/unknown, keep the extras behind the desk and use them as a thank-you gift after a meaningful conversation.

3.  Always Follow Up: The trade show encounter is just the beginning of the sales process.  Immediately after the show, compile a register of everyone whose badge you scanned or who otherwise expressed interest.  For those most promising prospects, consider sending out a personalized package with a small gift.  Finally, be sure to track the results of your trade show efforts:  how many leads resulted in sales worth how much and how long it took to close those deals.  Not only will the data give you a sense of the return on your investment, but you can also use them as a benchmark against next year’s show.

Why Apple is Awesome… and Your Company Isn’t

Doesn’t this image just say everything?

Usability and relevancy should be Priority 1.

by Scott Monty

Cornerstones of Social Media Strategy

Think of your social media strategy as a platform supported by four pillars.  You really need all four to stabilize and support the platform to make the strategy work.

1. Communication
2. Collaboration
3. Education
4. Entertainment

COMMUNICATION: Every company already does something to communicate with its audience.  How is your communication perceived by your audience?  How do you measure the effectiveness of your communication strategy?  Which particular strategy triggers the most beneficial action, response, or behavior from your audience?

With some social media tools, you can measure things that eventually translate into something on your company profit and loss statement.  For example, let’s say you develop a monthly e-newsletter delivered through a service such as Constant Contact.  Your email might include a special discount offer with a link to your web site where your customer can request more information or place an order.  These requests or orders are easily measured and a cause-and-effect relationship can be determined.  With most programs like Constant Contact, you can measure how many people open your email and how man click on which links within the e-newsletter.

COLLABORATION: Every year numerous books and magazine articles are written about collaboration in the workplace.  It’s hard not to be in favor of collaboration, but why do some organizations do it so well and others fail miserably?  Is is the company culture that makes a difference or perhaps the skills of those who endeavor to collaborate?  Could it be the tools used to collaborate?

Charles Schwab took an interesting approach to this opportunity by creating a customer advisory community with approximately 400 members who discuss issues, share opinions, and provide feedback that influences Schwab’s product offerings.  In July 2008, Schwab extended an invitation to be considered for their Schwab Client Forum.  In exchange for 5 to 15 minutes of mindshare per week, Schwab offered selected panel members the opportunity of  “periodic rewards such as online gift certificates, occasional drawings for other gifts, and a few surprises along the way.”  the response from their customer base was overwhelming, and within a few days of launching the e-mail invitation, the community was full.  It appears that Schwab has learned something powerful about the power of engaging your customers through collaboration.

EDUCATION: Many of us have had the experience of standing helpless and hapless in front of a plumber as we try hard to understand what the problem is and what the solution will cost.  You realize that your plumber has expertise, and when that expertise is combined with an ability to effectively educate you about your home’s plumbing, you have been engaged by the plumber experience.

How often are you/your company required to educate your internal or external audience, and do you look for opportunities to do so?  Your ultimate social media strategy should leverage your expertise, the expertise of people within your company, and your customers’ expertise as well.  Several social media tools and applications can be used to engage people through education… YouTube, Flickr, blogs, and discussion boards to name a few.

ENTERTAINMENT: If kitchen blenders can find a starring role on YouTube, there’s no reason for just about any business to be optimistic about the prospects of entertaining your audience by finding those attributes of your product or aspects of your company that others might consider entertaining.  Be cautious, however, because entertaining doesn’t necessarily mean funny.  In fact, humor can be dangerous terrain to traverse.  What some people find funny is patently offensive to others.  Christian Lander’s blog is a fitting example of content that many people find hilarious and others inappropriate.  Lander is building a brand around an audience who enjoys an opportunity to self-deprecate, but his brand of sarcasm and irreverence could prove disastrous to other product offerings.

The Hunter, The Farmer, and The Fisherman

More than just occupational differences, people who identify with these personalities are naturally suited for different authority positions.  The distinct styles of management, their impact on people, and the way in which people work together creates unique results for a company.

The Hunter is the stereotypical aggressive sales rep who is best at bringing in new clients and/or creating a new business.  The Farmer is perceived as being laid back when it comes to developing new clients, makes a good manager (not entrepreneur), but does a great job of cultivating relationships and new business with current clients.

HUNTER attributes include:  “bag the big game,” take charge, vision, aggressive, prospector, competitive, “Always Be Closing,” pitcher, Entrepreneurial Individualistic   FARMER characteristics are:  “cultivate the relationship,” let things develop, reality, laid back, planner, collaborative, “So, what do you think?” catcher, Team Player

So, which is better?  Or, a more accurate question would be is there a “better?”  Most successful business owners are neither Hunters or Farmers… they’re FISHERMAN.  The Fisherman is a model of both patience and well-timed aggressiveness that you need to land new clients and customers.  The Fisherman also has the wisdom and respect to cultivate the “fishing beds” so as to always have a source of food (a.k.a. revenues).

Fishing requires some solid planning about where to go to find the fish, research about what the fish like to eat, and what lures might attract them to nibble.  It requires patience while fish are nibbling and aggressiveness when its time to reel it in.  It also takes the courage to throw some fish back in when it’s not right for either you or the fish.

Everything’s Social

You may not know what you’re doing, but your customers do!  If the time to act is now, does that mean it’s too late to plan how your brand will “play well with others?”  What happens if/when you blow it?

Have you heard about Motrin?  Johnson & Johnson’s well-known brand of over-the-counter pain reliever had offended mothers with a marketing campaign centered around moms who “wear their babies”… a tongue-in-cheek reference to neck and/or back pain caused by baby-carrying devices.  Immediately after the campaign launched, in mid-November 2008, the brand took a major beating.  Motrin was accused of spreading derogatory messages and, in a crime many marketers may deem far worse, of not understanding its target audience.  AHHHHHHH!!!!

Moms (and their readers) twittered, blogged and emailed their frustrations.  “A baby will never be a fashion statement,” read one angry tweet.  Perhaps, even more on the minds of moms was the lack of immediate response from Motrin.  By the time the company did respond, hundreds of moms had voiced opinions, thousands had commented, and millions had seen the newest campaign now framed in an unseemly light.  Where was the voice of Motrin?

If Johnson & Johnson had been listening, the company could have been on top of the furor within the first hour.  Instead, conversations continued on, chipping away at the brand.  Eventually, 24 hours later, J & J yanked all forms of the campaign and publicly apologized.

Consumers are conversing about your brands whether or not you are tuned in to the chatter.  The social wave is upstaging traditional customer relationships as we’ve known them.  From ratings to social bookmarking to blogs to collaborative computing, social technology has become a mainstay not only on the consumer side, but on the business side, as well.

I realize that asking senior management of major established firms to loosen its grip on customers is not the easiest sell to make.  The concept of owning customers does seem to be fading, though.  Companies barely own their products anymore, let alone their customers.

With the social web, peer-to-peer conversations about products and services outweigh marketing efforts.  In the past, it was easier for organizations to dictate their reputations and content on the Web.  Until 10 years ago, web-based content had limited value to customers… all they could do was look at it.  Now, they’re able to access it, contribute to it, edit it, and share it.  Often with whomever they please.

And, it’s all so new!  As consumers tweet, poke, rate, nudge, throw sheep, and vote their way to “social media expert” status, companies have a lot to look forward to.  You never want a bad thing to happen to a brand, but, as with anything else, there’s nothing like bad news to spring you into action.  It is a leap of faith for a lot of businesses, but the risk of not diving into this pool headfirst would be the biggest mistake.

Excerpted from “Strategy and Social Media” by Lauren McKay in June issue of Customer Relationship Management magazine.

Get Ramen Profitable

Venture capitalist and ecommerce pioneer, Paul Graham, gives 13 pointers at www.paulgraham.com/13sentences.html including:

“Get Ramen Profitable”… huh? Ramen profitable means a startup makes just enough to pay the founders’ living expenses.  It’s not rapid prototyping for business models, but more a way of hacking the investment process. 

Once you cross over into ramen profitable, it completely changes your relationship with investors, customers, employees, advisors, and outsiders.  It’s also great for morale… especially yours. 

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