Aug 23, 2009 | Marketing, Strategy
# There is no longer a “mass market” in every market, so mass marketing usually leads to mass wasted resources.
# Most customers who may be in a market are no longer anonymous, they can be “connected ” with individually.
# Your message only reaches people who are willing recipients of the message, everyone else just filters it out, years of practice, leading to a huge waste of marketing resources when relying on the “shotgun” method.
Most marketers have heard Lord Leverhulme’s much quoted musing that 1/2 his advertising was wasted, he just did not know which half it was.
If he was alive today, he would be far more likely to be saying “90% of my traditional marketing is wasted, so why am I still doing it”?
Aug 20, 2009 | Management, Strategy
It has become pretty obvious over the last 9 months (if it was not there for all to see before), that those businesses with conservative financial management, irrespective of size, are the ones that have the opportunity to prosper during the downturn, taking advantage of the distress of their competitors to leverage their relatively strong financial position. When the dust settles, they will be lauded for their efforts.
This is a change from 2 years ago, when the same companies were being castigated for failing to take advantage of obvious opportunities to build shareholder wealth.
The lesson is best illustrated by the fable we all heard as kids, the tortoise and the hare, the tortoise has won again, we all know it will eventually, so why do we continue to act like hares?
We cannot hope to control, the environment we are in, but the best companies learn to evolve and accommodate the changes that occur beyond their control without succumbing to their transient attractions.
Aug 19, 2009 | Management, Marketing, Sales
What happens when you meet someone…? “where do you work” is a common conversation starter.
Someone who responds enthusiastically, extolling the virtues of their employer and the products they produce, will have a positive impact on those they meet, and the “word of mouth” that originates with that conversation can be substantial.
Conversely, an employee who expresses no confidence in their employer and products will create a negative impact, which has the potential to multiply with the telling, and after all, who is in a better position to know the real quality of a product than one who participates in the production process?
Thinking about employee satisfaction in this way puts a new perspective onto now almost standard annual employee satisfaction survey.
Customers are cautious, advertising savvy, and cynical, so getting a message to them is very difficult.
In a networked world, it now requires measures to develop employees as advocates for your business, as the advocacy of one person will have more impact than a 1000 TARP points in a TV advertising schedule.
Aug 18, 2009 | Management, Marketing, Sales, Strategy
The aim of brand builders is to engage with consumers to the point where they become apostles for the brand, an much effort has gone into developing measures that use this notion as a measure of brand strength.
On the other side of the coin are the detractors of your brand, and the damage they can do.
The development of a brand therefore also has the two dimensions. Powerful brands encourage powerful emotions, and some of those are very likely to be negative, it almost goes with the territory, anything capable of arousing powerful positive emotions is just as capable of arousing negative ones. An overlooked, but key challenge is how you manage the detractors, and the things they use as hooks for adverse comment.
Recently a measure “net promoter score” has become the favorite or marketers, as it appears to offer a methodology of collecting quantitative data on the behavior of your customers. Introduced in a 2003 HBR article by Fred Reicheld it has quickly become accepted as almost gospel.
However, experience suggests we should be pretty careful when someone has all the answers to all our previously intractable questions, and it is no different here. NPS is a great start to measure those who use, or have used your product, but relying on it solely to save the day is a big ask.
Aug 17, 2009 | Governance, Management, OE, Strategy
Return on Asset calculations as a realistic basis of performance measurement for many firms is rapidly going out the window.
On one hand we do the financial calculations, based on the accounting notion of tangible assets in the business, whilst on the other, saying that the primary assets of the business walk out the gate every night and go home.
This paradox should radically change the ways we measure the return on assets, it creates the need to find ways to consistently measure Intellectual Capital, not an easy challenge, but one that Directors and management need to start grappling with.
Consider, physical assets depreciate with use, but intellectual assets appreciate with use, so perhaps there is a measurement matrix in there somewhere, but probably fashioned by psychologists and anthropologists, rather than accountants.
