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Marketing, Risk management, and Intellectual sex. | StrategyAudit

 

We are all familiar with Darwin’s theory of natural selection. The forces that drove our evolution drive much of what we do, personally, socially, and professionally.

If you apply the idea to the marketing process, where we are dealing with qualitative factors that are really difficult to turn into numbers, you by necessity implement what is accepted as the ‘scientific method’.  Form a hypothesis, test it, and revise the hypothesis to retest in a cyclic process, trying to disprove the hypothesis. In the absence of evidence that the hypothesis is wrong, accept it, at least for the moment.

It is the same process as Natural Selection, with some wrinkles.

In marketing you are entering a world where you have a fair idea of where you want to go, but no concrete roadmap. Therefore, you experiment with different approaches, ideas, treatments, whatever you choose to call them, using a combination of data, instinct, domain knowledge and A/B testing to progressively select the best options and improve on them.

Creative selection.

Every project I have been involved in, of any type, has risks.

On most occasions, the only risk that is really considered in any depth is the business risk. Can we make a bob? The answer to this relies absolutely on the forecasts of cash flow, which are usually on the optimistic side. More often than not, I have seen the other key risks we always face in marketing underweighted or completely ignored. Risk factors such as competitive reaction, failure to closely define the real customer problem you are solving, which product will customers stop buying to buy yours, and many others. Failure to consider these sorts of externalities constitutes a significant and often underrated risk to any project.

Without this sort of rigorous analysis and its countermeasures, you are often just left with a cheaper price as the attraction to a customer, and that is not good for anyone in the long run.

Thinking about our marketing as a risk management tool is a useful way of thinking.

Risk for us is reduced when we reduce the risks facing our potential customers, we can guarantee the outcome of using our products.

Creative selection shares another characteristic with natural selection.

It requires sex.

Not physical sex, but intellectual sex, the type that happens when a range of engaged and creative people collaborate deeply to solve a problem, to map an alternative course. Collaboration, real collaboration, not the organised type where a boss throws together a ‘team’ and instructs for a solution. That is never a real team, it is  people working in close proximity. A team is one where minds meet to address what all members see as a truly worthwhile challenge that may deliver something great.

When you have that creative ferment, the focus on outcomes for customers, that is where you find great marketing.

Again, a bit like great sex.

Easier to talk about than to find and participate.

Header cartoon credit Scott Adams and the Dilbert crew.