Apr 28, 2009 | Demand chains
Trust is often cited as the key in making relationships, personal or commercial work. What is sometimes poorly understood is that trust is an outcome of lots of other things, primary amongst them is truth, along with consideration of the others point of view, meeting others needs, and compatibility of objectives, to name just a few.
In relationships between businesses, there is the added complication that there are usually many people involved, and as businesses are inanimate, it comes down to the behavior of people.
Just as most of us were told as kids, telling the truth is sometimes difficult, but it is far easier than the alternative, and has lasting effects on the relationship.
Apr 27, 2009 | Uncategorized
The rules of the game have changed, marketing is about the engagement of customers.
My definition of marketing, is” the recognition, building, protecting and leveraging competitive advantage”
Engagement by consumers in the brand proposition is what that is all about.
No longer is average stuff for average consumers, marketed with “noise” good enough, the product (be it physical or a service) must be some combination of new, different, offer a unique solution, be beautifully designed, or simplify, to somehow engage customers so they can see value beyond the cheapest price.
Apr 24, 2009 | Demand chains, Marketing
The usual, and correct view of a supply chain is a number of competitors at each point in the chain competing to provide the goods and services necessary to send the goods along to the next stage. The classic is the Australian wool chain, where the agents compete to broker the wool, the scourers compete amongst themselves, as do the top-makers, weavers, and so on. This all takes a lot of time and energy, competing horizontally.
Well developed demand chains by contrast compete vertically. They are driven by demand, and each point in the chain works collaboratively with the others to best meet the customers need. Slowly, the competitive environment is altering, and competition at the point of sale is becoming a competition between competing supply chains, not just competing retailers.
The benefits of this type of activity are potentially huge.
Wool Connect, a group of wool producers has its wool in shops as socks after a couple of months, rather than a couple of years as would be the norm, and they know where the wool goes, and they get a premium for a premium product.
www.woolconnect.com
Apr 22, 2009 | Demand chains, Strategy
Interdependence drives successful collaboration, and collaborative arrangements never survive without clear areas of interdependence.
When individual collaborators judge their actions in the context of the best outcome for the group, rather than their own short term best interests, you have a collaboration that is sufficiently robust to survive and add value.
In other words, interdependence emerges when an individuals best interests are best served by serving the best interests of the collaboration.
Inevitably, this involves some sacrifice of independence, sometimes hard to do, but usually very profitable.
Apr 21, 2009 | Strategy
Yesterday I got a telemarketing offer for a half price newspapers subscription, delivered to my door from one of the major dailies. Of course I signed up, beats walking to the newsagent and paying double!
The other major daily in Sydney is giving away free copies of its paper with any “value Meal” purchase at a major fast food restaurant.
There are few examples of such substantial value add at such a deep discount, is this canny marketing, or desperation?
The power of newspapers is in the value their distribution offers advertisers, but most people buy newspapers to be informed and entertained. The alternatives emerging over the last 5 years to be informed and entertained have profoundly altered the economics of newspapers.
The ABC seems to be grappling with the digital media, perhaps better than the commercial media, perhaps because it does not have to worry as much about the distribution and advertising revenue.
The business model of newspapers is going down the gurgler, could it be that these offers are the death throes, or are they just being nice, and saving me a walk.
