Sep 21, 2011 | Communication, Management, Social Media
What a great term, coined by Euan Semple, to describe the phenomenon of older (largely) male senior executives pretending they have “got” social media.
Like many others, I spend a lot of time trying to persuade people of the value that can be generated by intelligent use of social media, most of those people run enterprises, and usually reluctantly can be persuaded to put a modest amount of resources into SM, often I think because their golf partner was telling them on the 19th last week that he has been able to cut the advertising budget by 50% by using SM.
Anyway, they become superficially engaged, in their hearts thinking this social media stuff is just their almost adult children behaving badly and then for some inexplicable reason, posting the footage on face book.
The term “Dad Dancing,” perfectly invokes a picture of the gyrations and uncoordinated usually frenetic and short term activity that emerges from such a conversion.
Sep 19, 2011 | Demand chains, Operations, Strategy
People routinely forecast optimistically, they under-forecast costs, and over-forecast outcomes. We have all seen it happen repeatedly in businesses and the public sector, most of us have seen it on personal level.
Demand planning is the core of effective operational optimisation, and differs from simply sales forecasting, in that it looks at the drivers of demand, rather than drivers of sales, often a big difference, and it is free of the bogy of just assuming the past will be repeated, even if massaged by some fancy algorithm.
Demand planning has been enhanced by the developments in what are in effect benchmarking of similar situations, collectively called Reference Class Forecasting by its Nobel prize winning proponents, Daniel Kahneman and Amos Tversky.
Demand planning is hard to do well, but most useful things are.
Sep 16, 2011 | Customers, Management, Sales, Small business
SME’s in the Australian food industry are up against it if they see their futures as suppliers to the major chains, who require a combination of utter commitment, globally competitive costs, and supply certainty requiring substantial scale and the attendant capital base.
Added to all that, small business has it all in front of them in any stoush with a large corporation. Metcash, the nations largest wholesaler, and effectively the third force in Australian FMCG via its supply arrangements with independent retailers seems to relish a fight.
They chose to fight Andrew Bunn, a small retailer in Canberra who went to the wall, and then accused Metcash of breaking their supply contract. The blue Metcash then picked with the ACCC over their proposed purchase of Franklins has been entertaining. Metcash informed the ACCC they would go ahead with their purchase of the Franklins chain from Pick n Pay before the ACCC delivered its decision, ballsy call, justified as the Federal Court gave them the go-ahead, but the ACCC is now appealing the decision. Who knows what will happen next, but the ACCC must assert its power in the marketplace or become irrelevant, but whilst the legal stuff drags on Franklins is bleeding cash, virtually removing them from the scene as an ongoing concern, whoever owns them.
I’m sure there is more to come, but none of it matters much to the SME manufacturer facing a small number of retail gorillas who exercise their power ruthlessly, and without any empathy with their suppliers. The ghost of Eric Bender who inhabits the memory of the few of us still around who dealt with him, would shake his head in dismay, and take another drag.
Sep 15, 2011 | Branding, Marketing
Rubbish you say, marketing always matters.
Well, the next time you try and get some sense out of Optus or Telstra when you have anything that does not fit into an easily packaged Q&A form for someone in Bangalore who does not know Sydney from Senegal , try and tell yourself marketing does matter to them, and fall about laughing.
If it did, your issue would be treated as important to them, there would be someone who could fix the problem in easy reach, you would not have to wait hours being told your call was important to them, and then never get a return call.
Clearly in the current telco environment, demand is greater than supply, so marketing does not really matter, or so they think, customer churn is a part of the game, and annoying a few is a small price to pay in the chase for short term margin maximisation.
Marketing does not matter to them, at least for now!
However, the worm usually turns. Remember when you could not get a spot on prime time television without selling your grandmother, or a preferred position in the Herald Saturday classifieds, and had to wait weeks and sometimes months for the local bookstore to get in an obscure title you wanted?
Now, response can be virtually instantaneous, and we have become very used to instantaneous, and when we do not get it, we can pile buckets on the perpetrator via social media, just as we can promote their great service on the odd occasion it happens.
Marketing always matters, because without a customer, you have nothing.
Sep 14, 2011 | Communication, Marketing, Social Media
About the most commonly asked question on the net is how to make money,” how do I monetarise this great idea”?.
To my mind, it is the wrong question. The right one is “How do I deepen the relationship of those who are attracted by the great idea”?. When you have made the relationship worth having for the other party, it will become evident how to make money from it.
It is analogous to asking “Have you “monetarised” your telephone”? Answer: Probably not, because at least on the surface, you do not make money from it, the phone is a tool to communicate, but remove the phone system in your business for an hour, and reconsider if it is monetarised or not.
Social media is no different, it simply a means of communication, so why the never-ending question about how to monetarise Social media? Answer: Because most have not thought about it as a communication tool, a means of connection, engagement, so they default to SM as a cash register.
