Is it possible to remove 'promotion' from an organisation's marketing strategy and still operate a profitable enterprise? Effectively stopping all advertising, sales promotions, online marketing, PR and direct marketing. This would be a very bold move to say the least.
It could work.
To pull off this marketing miracle, you would have to develop and continually innovate a great product. You would have to build performance predictors and lead generation into the product, price and distribution channels.
Has it been done before? World-class surgeons have been doing this for years. Their reputations (created by delivering a great product) acts to draw in new clients. They don't advertise or sell or send press releases or direct mail. And theirs' is amongst the most profitable of business models in the world.
Friday, May 23, 2008
Why performance predictors matter
During the process of writing this book, I consulted various colleagues, associates, friends and family. Many provided valuable input which shaped my thinking on the topic. Often the most difficult feedback to receive, but more useful than a vague 'slap on the back', is critical analysis of the concept and its relevance.
After I had explained the concept of performance predictors to an associate he simply asked, "Why do performance predictors matter?" At the time I was taken back, however this powerful question forced me to drive deeper into the concept.
Performance predictors matter because it is unfair for marketers to ask consumers to trust their claims, when they have a vested interest in the consumer buying. In an increasingly distrusting society, performance predictors matter more than ever.
After I had explained the concept of performance predictors to an associate he simply asked, "Why do performance predictors matter?" At the time I was taken back, however this powerful question forced me to drive deeper into the concept.
Performance predictors matter because it is unfair for marketers to ask consumers to trust their claims, when they have a vested interest in the consumer buying. In an increasingly distrusting society, performance predictors matter more than ever.
Friday, May 16, 2008
Why marketing rules business
Peter Drucker said, "Because the purpose of business is to create a customer, the business enterprise has two - and only two - basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business." He was right.
When you consider that marketing controls the marketing mix, comprised of product, price, promotion and place (distribution), it certainly helps to assert Drucker's viewpoint. Traditionally, the marketing department had spent almost all of its time, effort and resources on promotion. However, the modern marketer has realised the power of product, price and place on creating customers.
Marketing not only rules business, it is the reason for the existence of business. Without marketing, business fails.
When you consider that marketing controls the marketing mix, comprised of product, price, promotion and place (distribution), it certainly helps to assert Drucker's viewpoint. Traditionally, the marketing department had spent almost all of its time, effort and resources on promotion. However, the modern marketer has realised the power of product, price and place on creating customers.
Marketing not only rules business, it is the reason for the existence of business. Without marketing, business fails.
The power of performance predictors
The power of performance predictors is derived from the following immutable facts:
- Consumers are sceptical
- Consumers dislike risk
- Consumers want evidence to support claims
- Consumers are jaded from marketing-hype
- Consumers like to buy, not to be 'sold at'
- Promotion should permeate out of the product
- Brands need substance to survive
- Trust is marketing's only objective
Performance predictors mitigate the challenges presented by these facts, and captialise on the opportunities.
Why performance predictors will help you become a better marketer
Performance predictors reduce consumer scepticism.
They achieve this by providing evidence to support claims, reducing pre-purchase risk, getting to the point fast, drawing consumers in rather than pushing products onto them and building trust.
Why is reducing consumer scepticism critical to marketing success, now more than ever?
The answer lies in the early meaning associated with the word scepticism. In Greek philosophy, scepticism was associated with a "suspecion of judgement". Sceptics take the view that the only course of action is to suspend judgment and adopt a position of indifference toward the product.
If all consumers suspend judgement, there will be no products sold. To be successful as a marketer, you must reduce scepticism to allow purchase decisions to occur.
They achieve this by providing evidence to support claims, reducing pre-purchase risk, getting to the point fast, drawing consumers in rather than pushing products onto them and building trust.
Why is reducing consumer scepticism critical to marketing success, now more than ever?
The answer lies in the early meaning associated with the word scepticism. In Greek philosophy, scepticism was associated with a "suspecion of judgement". Sceptics take the view that the only course of action is to suspend judgment and adopt a position of indifference toward the product.
If all consumers suspend judgement, there will be no products sold. To be successful as a marketer, you must reduce scepticism to allow purchase decisions to occur.
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