Sep 2, 2009 | Marketing, Strategy
Customers do not always fall into the easy demographic segments so favored by marketers. They think, and react to a range of stimuli that have little to do with their age, sex, family situation, education, where they live, how much they earn, and what job they do.
Each consumer is a market of one, and they must be won over by your brand and product offering, so make sure you really understand why they behave the way they do.
So called “new media” offers a channel to communicate with consumers individually rather than on mass, this does not make it easier than the old “mass media”, if anything it is harder, and it is certainly different.
Aug 27, 2009 | Innovation, Leadership, Marketing, Strategy
The world will look different when it emerges from the crunch, as we appear to be doing currently.
The globalization and connectivity of the world are trends that will not go away, and the chaos of the last 12 months will have enabled trends at the fringe to build momentum much more quickly that would have otherwise been the case.
Consider the acceptance, even demand, for increased government intervention in business, something that would have been impossible a year ago, the growth of twitter over the same period, the role pro-active networking of supporters using the web played in the success of the Obama campaign, and the explosion of sales of “green” cars like the Toyota Prius, and Honda’s equivalent at premium prices during a financial meltdown. All examples of disturbance at the periphery of activity which became full blown disruptions at the core in a very short time, motivated during the economic chaos by people seeking new ways to understand and deal with what was going on.
Building adaptability has become a key survival skill, taking lessons from the natural world where many small “experiments” at the fringes builds the capacity of the species to survive as the environment changes around you. It may be that Peter Drucker‘s maxim that the only core competence needed by an organization was innovation has been reinforced, as all the literature on successful innovation cites the ability of an organization to run many experiments as a key component of innovation success.
Anyone thinking the post crash world will look like the pre-crash one needs to think again.
Aug 26, 2009 | Leadership, Management, Strategy
Management activity often seems to be telling people what to do, then fighting the fires when it is not done, or not done to a standard you deem acceptable, or not done on time.
A simple human reaction: “tell me what to do, and I will do it, but if you do not tell me what to do, how do I know I have to do it”?
A simple solution, hard to implement because you need to change first: stop telling people what to do which takes away their responsibly and ownership, and start encouraging them to take ownership of problems and propose solutions they then become responsible for implementing.
Management starts with helping people see problems, and making sure they have the skills, resources and motivation to fix them, and then it becomes leadership.
Taking the easy way out and doing it yourself sometimes appears the easiest solution, but it is rarely one that is the best solution, it is just a short term band-aid on a symptom, rarely a solution.
Aug 25, 2009 | Management, Strategy
Having a good strategy scores 1/10 on the useful meter, the other 9/10 are allocated for implementation, adjustment, and learning.
That is not to down-play the difficulty of developing a good strategy, and the crucial value of such an investment of resources, it is time consuming, demanding, and usually highly iterative, combining both data and judgment in ways that deliver a competitive advantage.
However, no matter how smart the strategy, the key to success is the implementation. I wonder how many great strategies have been developed, bound, and presented, only to grace the shelf, pristine in its pride of place.
There are many tools to assist the development process, SWOT, Porters 5 forces, Balanced Scorecard, and many others, but the number of tools available has had little impact on the quality of the implementation process in most businesses.
However, the key to strategic success is to be determined to implement and measure the effectiveness of the implementation of strategic decisions taken, and being prepared to make alterations as new information emerges, or competitive conditions change.
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.
