In the vast majority of organisations around the world, the focus of the marketing mix can be depicted as follows:
Product - Price - Promotion - Place - People
As you can see, promotion dominates the resources of most marketing departments, followed by price ... with product, place and people taking out a distance third place.
In my opinion, this represents illogical thinking. This implies that it is most effective to heavily promote products that haven't been given the necessary budget to develop, and an unjustifiable amount of time pricing them.
Immutable logic says that the resources allocated to the marketing mix elements should look more like this:
Product - Price - Promotion - Place - People
In summary, promote products that people really want. Then, you can reduce your promotion budget by the word of mouth factor created by great products. And, promote those performance predictors that will flow naturally from the great products.
Tuesday, September 29, 2009
Monday, September 14, 2009
The most powerful performance predictor of them all (potentially)
So, what is the most powerful performance predictor of them all, and why have I added potentially?
A brand is potentially the most powerful performance predictor of them all. And I say potentially because when branding is executed poorly it has the reverse affect - it becomes a performance detractor.
Branding is commonly misunderstood, even by marketing people. A brand is no more than a promise of performance delivered in advance of actually experiencing the service or using the product. Another helpful explanation is that a brand is the organisation's reputation.
A well developed brand (that is, one which highlights deliberate attributes in a powerful way) willl make perspective customers feel like they have already experienced the service or used the product before they actually have. Clearly, this performance predictor has great potential to fast-forward prospective customers into the future.
A brand is potentially the most powerful performance predictor of them all. And I say potentially because when branding is executed poorly it has the reverse affect - it becomes a performance detractor.
Branding is commonly misunderstood, even by marketing people. A brand is no more than a promise of performance delivered in advance of actually experiencing the service or using the product. Another helpful explanation is that a brand is the organisation's reputation.
A well developed brand (that is, one which highlights deliberate attributes in a powerful way) willl make perspective customers feel like they have already experienced the service or used the product before they actually have. Clearly, this performance predictor has great potential to fast-forward prospective customers into the future.
Tuesday, September 8, 2009
Fusing performance predictors into products
Unlike the traditional relationship between product manufacturers and advertising agencies, performance predictors should not be bolted on to a product as an after thought.
Instead, performance predictors should be fused into the products before, or during, development. This will ensure greater alignment and authenticity between the product and associated marketing communications.
For example, if a restaurant wanted to use a celebrity chef to endorse the establishment, it be would be most effective to have that chef involved in the development of the actual menu (i.e. methods, ingredients, etc.) rather than just promoting the restaurant via marketing communications.
Similarly, rather than have the product development team develop the product and hand it to the marketing team to develp a risk-reversal guarantee, why not have the marketing team involved in the product development and the product development team involved in the development of the guarantee?
Consumers shouldn't be able to tell where the product ends and the performance predictors start.
Instead, performance predictors should be fused into the products before, or during, development. This will ensure greater alignment and authenticity between the product and associated marketing communications.
For example, if a restaurant wanted to use a celebrity chef to endorse the establishment, it be would be most effective to have that chef involved in the development of the actual menu (i.e. methods, ingredients, etc.) rather than just promoting the restaurant via marketing communications.
Similarly, rather than have the product development team develop the product and hand it to the marketing team to develp a risk-reversal guarantee, why not have the marketing team involved in the product development and the product development team involved in the development of the guarantee?
Consumers shouldn't be able to tell where the product ends and the performance predictors start.
Monday, September 7, 2009
Human-uniqueness Performance Predictors
Every single human being on the planet is unique. Some in big ways, others in small ways. But regardless of the extent of these differences, the fact remains, we are all different.
For this reason, there are performance predictors which will be relevant to some consumers and not to others (in some cases, no others!).
For example, in Kevin Roberts excellent book Lovemarks, he quotes the following comment left by a visitor to the Lovemarks website:
"A tradesman came to my house to give a quote - but when he pulled out his Palm Pilot to check his schedule I knew I would give him the job ... When you come across another Palm Pilot devotee you have found a friend, someone on your wavelength, someone who understands." [Consultant, Australia]
So, for this consumer, the tradesman owning a Palm Pilot was a critical performance predictor. But does this mean that all tradesmen should go out and buy Palm Pilots because they are an important performance predictor? Perhaps, but probably not.
The Palm Pilot was a human-uniqueness performance predictor for this particular person. And the dichotomy here is that there may be other consumers seeking the same performance predictor, but the question for tradesmen to ask is: Are there enough consumers in this category to warrant buying and using a Palm Pilot?
What I am saying is, before running off and implementing every single performance predictor suggested by individual consumers, it would be wise to consider the greater impact this performance predictor may or may not have on your target market.
For this reason, there are performance predictors which will be relevant to some consumers and not to others (in some cases, no others!).
For example, in Kevin Roberts excellent book Lovemarks, he quotes the following comment left by a visitor to the Lovemarks website:
"A tradesman came to my house to give a quote - but when he pulled out his Palm Pilot to check his schedule I knew I would give him the job ... When you come across another Palm Pilot devotee you have found a friend, someone on your wavelength, someone who understands." [Consultant, Australia]
So, for this consumer, the tradesman owning a Palm Pilot was a critical performance predictor. But does this mean that all tradesmen should go out and buy Palm Pilots because they are an important performance predictor? Perhaps, but probably not.
The Palm Pilot was a human-uniqueness performance predictor for this particular person. And the dichotomy here is that there may be other consumers seeking the same performance predictor, but the question for tradesmen to ask is: Are there enough consumers in this category to warrant buying and using a Palm Pilot?
What I am saying is, before running off and implementing every single performance predictor suggested by individual consumers, it would be wise to consider the greater impact this performance predictor may or may not have on your target market.
Tuesday, September 1, 2009
100% User
Imagine if all your staff (regardless of the size of your organisation) all used your products 100% of the time when requiring a product in your particular category. That would be a powerful performance predictor indeed, would it not?
To ensure even the most skeptical of consumers are impressed by this type of performance predictor, insist that all staff (including yourself), actually pay for the products they use. Don't include your own products as part of their remuneration package.
On the flipside, imagine if a key customer saw one of your executive team, or you as the owner, making a substantial purchase from a competitor. What message does that send? How about, "The owner thinks the competitor's offering is better than her own". Scary thought.
The impact of all staff being 100% users would have a 'sideline benefit' too. The user-feedback generated via the staff could provide many useful insights. With all staff experiencing a customer-perspective and a staff-perspective, their feedback should be at an entirely new level of depth.
A belief in your products is most effectively communicated with '100% staff use', not slick salesmenship.
To ensure even the most skeptical of consumers are impressed by this type of performance predictor, insist that all staff (including yourself), actually pay for the products they use. Don't include your own products as part of their remuneration package.
On the flipside, imagine if a key customer saw one of your executive team, or you as the owner, making a substantial purchase from a competitor. What message does that send? How about, "The owner thinks the competitor's offering is better than her own". Scary thought.
The impact of all staff being 100% users would have a 'sideline benefit' too. The user-feedback generated via the staff could provide many useful insights. With all staff experiencing a customer-perspective and a staff-perspective, their feedback should be at an entirely new level of depth.
A belief in your products is most effectively communicated with '100% staff use', not slick salesmenship.
Monday, August 31, 2009
The different spots of sampling
All leopards have different patterns of spots, as you know. This unique identity helps to tell leopards apart from one and another.
In the world of sampling, each organisation's approach should be similarly unique. This uniqueness should coincide with the type of offering the organisation is making to the marketplace.
For example, an organisation selling 'services' (i.e. intangible products) should offer seminars, white papers, complimentary consultations, first free lessons, published articles (a sample of information) and free guides.
On the other hand, organisations offering 'goods' (i.e. tangible products) should consider offering a sample of the actual goods. This offer could be a taste test, test drive, user trial (i.e. take the goods at no cost and pay later if you want to keep it) or 'first one free'.
In an increasing skeptical world, sampling really is a great way to reduce pre-purchase risk.
In the world of sampling, each organisation's approach should be similarly unique. This uniqueness should coincide with the type of offering the organisation is making to the marketplace.
For example, an organisation selling 'services' (i.e. intangible products) should offer seminars, white papers, complimentary consultations, first free lessons, published articles (a sample of information) and free guides.
On the other hand, organisations offering 'goods' (i.e. tangible products) should consider offering a sample of the actual goods. This offer could be a taste test, test drive, user trial (i.e. take the goods at no cost and pay later if you want to keep it) or 'first one free'.
In an increasing skeptical world, sampling really is a great way to reduce pre-purchase risk.
Monday, November 3, 2008
Tryvertising and Customer-made
The best way to gain consumer trust is to shift the seller power to the buyer. How?
The most extreme (and most effective) way is for consumers to make their own products and services. Think Subway (make your own sub), Dell (build your own computer) and write-your-own will kits. In these examples, the seller is inviting the consumer into the 'production process' and as a result reducing dependence.
Tryvertising is an intriguing term used to describe sampling as the call to action in advertising. Examples include 'visit your nearest dealer to test drive today' and 'receive your free perfume sample inside this magazine'.
By the way, I came across the terms 'customer-made' and 'tryvertising' in The Truth about Trust in Business which I have recently finished reading. The book supports the position that traditional advertising is losing its effectiveness as consumers are becoming increasingly sceptical.
"In a study conducted by Edelman in 2005, 45% of people surveyed said their most trusted information source was personal contacts, with only 4% trusting advertisements". In summary, consumers are more likely to trust other consumers than organisations.
The most extreme (and most effective) way is for consumers to make their own products and services. Think Subway (make your own sub), Dell (build your own computer) and write-your-own will kits. In these examples, the seller is inviting the consumer into the 'production process' and as a result reducing dependence.
Tryvertising is an intriguing term used to describe sampling as the call to action in advertising. Examples include 'visit your nearest dealer to test drive today' and 'receive your free perfume sample inside this magazine'.
By the way, I came across the terms 'customer-made' and 'tryvertising' in The Truth about Trust in Business which I have recently finished reading. The book supports the position that traditional advertising is losing its effectiveness as consumers are becoming increasingly sceptical.
"In a study conducted by Edelman in 2005, 45% of people surveyed said their most trusted information source was personal contacts, with only 4% trusting advertisements". In summary, consumers are more likely to trust other consumers than organisations.
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