Posts Tagged ‘marketing’

divider

Drowning in Information

Monday, November 17th, 2014

In the words of Rutherford Rogers of Yale: “We’re drowning in information and starving for knowledge.”

Most marketers don’t need more research or more data. They need more insight.

That may seem a small point, or even an obvious one, but I remain astonished by the high ratio of money spent on research that doesn’t lead to action compared to money spent on research that does lead to action.

Information is useless in its own right, and far too many people and organizations are satisfied with spending millions of dollars on useless information. Yes, you need to know what’s going on out there- but only if you are actually going to do something with the knowledge. Only if that information somehow yields competitive advantage.

The missing ingredient can sound trite. Insight is a much-overused term in the world of marketing. But it’s insight that you’re looking for. It’s insight that’s worth paying for- not information.

So try this: review every “research” expenditure you have. Ask the same two questions of each program or project:

-Will it lead to an action?

-Will it lead to insights that will yield competitive advantage?

If the answer is no to both questions, don’t do it. Save the money and- perhaps more important- save the organizational time and focus that can be much better spent on insight generation.

Many companies seem to be so busy processing information that they lose track of its purpose. What if all that processing time and the minds that like to do that type of processing were replaced with insight-generation time and minds that like to create insight? It’s time to find out.

Austin McGhie is head of Sterling’s Strategy team

divider

Research is Reality Television for Marketers

Wednesday, November 5th, 2014

tvAs I’ve said before, only idiots and crazed entrepreneurs make decisions without research. A few of those entrepreneurs are legendary, precisely because they defied business or marketing logic and did what research told them not to do. This is how truly differentiated businesses are built and how many truly differentiated brands have been devised. This is why those legendary entrepreneurs were so wildly successful. But this is also why they are so few in number.

Smart marketers play the odds. On the occasions when they bravely ignore the odds, they do so at least knowing what those odds are. Smart marketers do their homework. They’re not bound by it or held hostage by it, but they do it. You’re not an idiot when you defy logic; you’re only an idiot when you don’t know what that logic is.

You must give a high priority to getting as close as possible to the real world. Participate personally. Get hands-on as much as possible. Stay in touch with your customer.

In the US, marketers and their agencies tend to live in cities such as New York, Los Angeles, Chicago and San Francisco. They tend not to shop at Wal-Mart, not to ride the No. 2 bus to work and not to consider Denny’s a big night out. In other words, they tend to be out of touch with their average consumer.

At the 2004 Academy Awards, held in March 2005, host Chris Rock did a remarkable thing. He took the television audience away from the beautiful people in the theater audience and to a nearby Cineplex, where he interviewed real moviegoers. None of these people had seen any of the best movie nominees, and most of them cited Saw, Barbershop and White Chicks as the best films of 2004. You can fight reality if you’re on a mission to raise the entertainment bar, but you’d better embrace reality if you’re a marketer.

So what to do?

Hire a company to conduct ethnographic-style fieldwork for you, and insist on coming along. Spend time with people in their homes, at work, on shopping trips. Our strategists often like to talk to people in “friendship pairs,” so they’re more comfortable with the process and more likely to call BS on each other. (There’s at least as much BS in reality-based marketing research as there is in reality TV.)

And do not- do not- mistake focus groups for real life. Recruiting a bunch of people from a database and setting them in a room with strangers, a moderator and a two-way mirror is about as far from reality as any of us will ever get without pharmaceuticals. People who agree to do this for money cannot be considered representative.

For reality you need to get back out into the real world. The closer you get to reality- to real customers moving through real lives with real feelings, fears and desires- the closer you are to the kind of insights that can really make a difference.

Austin McGhie is head of Sterling Strategy – stay tuned next week for more on the difference between data and insight.

divider

Sterling Buzz…

Friday, October 24th, 2014

Screen Shot 2014-10-24 at 3.19.11 PM

We’re happy to share the findings of some fascinating research conducted by Google in partnership with Ipsos and Sterling Brands! Now we can say without a doubt, that digital research has become more important than ever in combination with in-store shopping and linking consumers to local stores.

“Eighty-seven percent of shoppers research before visiting a store, 79% search during their visit and 35% look after, according to research released today by Google, based on an online survey of 6,000 smartphone users conducted in partnership with Ipsos MediaCT and Sterling Brands.” -AdAge

Click here to read the full findings from the study

And in a related story published by AdAge, retailer Macy’s has used these Google digital search findings to bolster local inventory ads to highlight what’s in local stores for shoppers who use devices to plan and complete a purchase. Read more on that story here<<

divider

Customers Not Marketing Advisors

Monday, October 20th, 2014

There is a critically important and logical order implied when it comes to strategy development, a priority that is often ignored by marketers, strategy consultants and (especially) communication agencies. It is a simple syllogism that goes like this:

-Know where your differentiated advantages lie

-Know what you need to do to win the game

-Then go to your customer and find out how to win

Rely on business strategy, competitive advantage and marketplace dynamics to tell you what to do, not the customer. Instead, the customer should tell you how to do it.

To find your strategy, there a number of things you must do, and an order in which customer feedback comes into play:

1.) Look Inside. Based on the vision and core capabilities of your organization, your competitive advantage and what you see as prevailing marketplace trends, determine  the strategic alternative or alternatives that are best for you from a long-term, bottom-line perspective. I’m making this sound easy, but finding the strategy that brings all of this together in one idea is a real art.

2.) Determine which strategy is best. It’s OK to talk to your customer to determine how to refine that strategy. Will they give you permission? Where does that permission start and where does it end? What sort of stimulus do you need to get the response that they’ve indicated they’re capable of?

3.) Find the easiest path to implement your strategy. Customer research is all about finding the easiest path, in that it allows you to find natural marketplace momentum and use it to your advantage.

To put it simply, don’t ask the customer – “Do you like this ad?” Ask them “Does this motivate you to do/buy X?” Customers are not marketing advisors, but they will tell you what they will or wont do.

Norwegian Cruise Lines once embarked on a beautiful, award-winning advertising campaign designed to entice young people to take cruises. The company essentially ignored the competitive realities of its own business. Surveys found that young people loved the ads- and so the campaign went full steam ahead.

But “Do you like the ads?” was the wrong question. “Will you go on a cruise?” was the right question. An even more critical question should have been posed to the older people who really do go on cruises, and that was: “Will this ad campaign scare you away?” Unfortunately, the answer was: yes. Older folks stayed away from Norwegian in droves while only a trickle of young people took the plunge. Bad for Norwegian. Good for its competitors, who had stuck to marketing to those older cruise takers.

Remember to develop yours strategy first, then go to marketing. And, if you are going to talk to your customer, ask the right questions.

Austin McGhie is Sterling’s head of Strategy

Next week we take a deeper look at research and its rightful role in support of brand strategy.

divider

Your Customer is a Cynic

Thursday, October 16th, 2014

As a marketer, you are positioning something to someone. As we speak, that someone is changing his attitude. Changing her outlook. Some of that change is just a result of his or her last conversation with a friend and some is more deeply felt and therefore permanent. One permanent change is that consumers have increasingly adopted the attitude and behavior of professional cynics.

Blame it on the Internet. Blame it on the press or the school system. Blame it on Wall Street. Blame it on marketers who chronically over-promise and under-deliver. You can blame it on the government, too. The undeniable fact is that the modern consumer is a cynic. And this is definitely not a temporary state of affairs, a fleeting reaction to our times. Access to information and a broad range of perspectives is the real breeding ground for this cynicism- as it damn well should be.

People ‘Occupy Wall Street’ because they are losing faith in our institutions. The more they know about big business, the less they seem to like. In the words of GE CEO Jeff Immelt: “Businesses today aren’t admired. Size is not respected. There’s a bigger gulf today between haves and have-nots than ever before. It’s up to us to use our platform to be a good citizen. Because not only is it a nice thing to do, it’s a business imperative.”

Two points:

-The first is that in today’s market, product quality is less in doubt. The range of available quality is tighter. Big is no longer better. Meanwhile, small can mean handcrafted and suggest pride.

-Second, social consciousness is becoming a growing element of any purchase decision. With information availability comes transparency- the ability to see beyond the product and customer service walls of an organization to the values behind them. Share a company’s values and you are more likely to buy its products. Don’t share them and you are less likely to buy. Really dislike those values and you may actively work to convince others not to buy the product.

These days you have to respect and work with the cynicism of the marketplace. Respect the knowledge of your audience, and respect the healthy skepticism with which it views marketing.

To corrupt a much-used quote from David Ogilvy: “The customer is not a moron. The customer is you.”

Austin McGhie is head of Sterling Strategy

divider

The Consumer is Dead

Monday, October 6th, 2014

For what it’s worth, the term ‘consumer’ really irritates me. I still use it to make myself understood, but it bugs me. With time, I’ve concluded that the word bugs me for strategic reasons- not just because I don’t like the word itself.

‘Consumer’ conjures up a mass of people ready to blindly ‘consume’ my product. By comparison, the word ‘customer’ seems more singular and implies a relationship of some kind. Consumers consume. Customers purchase- if they are treated right. Consumers are the way of the past. Customers are the wave of the future.

This makes a difference on a couple of fronts. Right now, retailers have customers and most of their suppliers have consumers. For structural reasons, but also because of this schizoid mindset, the retailer often has a much stronger relationship with that person than does the manufacturer. Over time, this almost always leads the retailer to become a more trusted ‘guarantor’ of product quality than the manufacturer. Ultimately, this means that the retailer can source products and build brands that the customer trusts more than those from the manufacturer- and they’ll be cheaper for many of the same structural reasons.

I believe everyone needs to build a real, working customer relationship management (CRM) strategy. Forget the software for now; just embrace the theory. In the old world, terms like 1:1 marketing, segmentation and mass marketing were too often viewed as distinct alternatives. The fact is, for many marketers, inside their customer database reside customers who deserve to be handled 1:1 and can be profitably marketed to this way, customers who can be approached on a segment basis, and customers who can only be profitable if they’re treated en masse.

Depending on your business, you may even be able to determine the unprofitable customer- and although all consumers may seem like they are worth having, some are definitely best sent over to your competition.

So, let’s stop thinking about the people buying our products and services as consumers and promote them to the exalted status of customer… and then we can all go back to fighting over them.

If you’re a manufacturer and this creates confusion with intermediates such as retailers, who you currently call customers, I have another suggestion. Call them partners and treat them accordingly.

Austin McGhie is head of Sterling Strategy. Stay tuned for a continued, in-depth take on the customer all month long.

divider

Make Yourself Famous

Wednesday, October 1st, 2014

“I’m gonna live forever. Baby, remember my name.” - Irene Cara, Fame

It’s okay; admit it. You’d like to be famous. You want to succeed. You want to make a difference. You want to win.

Well, act like it! I think that anyone with ambition wants to make a difference. That said, for some reason, most of us simply don’t act that way. We’re just not ruthless enough. We let politics, niceties, organizational structure and time itself get in the way of doing what it takes to win. We’ve all seen managers make the easier choice, one that leads to losing, instead of the tough decision that might lead to winning.

Over the course of a year, a senior marketer will face a host of little decisions and only a couple of make-or-break decisions. The trick is to make the small ones quickly and intuitively to only get the majority right- and then fix the minority that prove to be wrong. Bat above .500 on the small stuff and you’ll be just fine.

By comparison, you simply cannot get the big stuff wrong. Here, you have to be completely ruthless. Think about these decisions, but then make them boldly. Make them count for something. Make the big decisions in the right ways, and you could become famous. Always adopt that attitude, even if it’s unlikely that you’ll really become famous.

One illustration close to my heart is found in advertising.

I’m all for ongoing agency of record relationships – but it needs to be based on performance. Once every few years a business needs a brand new campaign, a campaign that could possibly transform the business. You’ve seen it happen in the past:

-McDonald’s turns a few syllables into a more contemporary position

-A real live Jack helps save Jack in the Box

-A gecko transforms the culture of an insurance company

-An introduction to The Most Interesting Man in the World pushes Dos Equis into the spotlight

-A new Old Spice Guy ressurrects a brand on life support

These campaigns can transform a business, but we also know that they are a distinct minority.

So when you arrive at an inflection point and need the campaign to make you famous, you need to be ruthless. For example, offer a couple million dollars to the top three creative agencies in the country. Better still, locate the top three creative teams in the country and make the offer to them directly. Winner take all. Once it successfully runs, thank the creators for their work, pay the winner, and tell your agency of record to get back to work.

On the other hand, if the winning campaign idea is merely good, and not the earthshaking concept you need, do not say yes. Start over, and over- until you are truly ready to make history.

Keep in mind this is an inflection point for the entire business. A chance to elevate. How can you not do everything possible to create this kind of marketplace leverage- including putting your maintenance agency on hold and rewarding one of its competitors for a great idea? Your job is to succeed, not to protect the feelings of your partners. Your partners are smart. They’ll get it, even if they don’t like it.

Austin McGhie is head of Sterling Strategy

Stay tuned as we turn to thoughts on the customer in the coming weeks…

divider

Build an Experience

Wednesday, September 24th, 2014

A brand is a promise of a customer experience.

This definition should be fairly obvious when you look at immersive or experiential brands such as retailers (and many services). But it is also at play in a more subtle way in even the simplest product categories.

In these more subtle cases, you may have to shift your mindset from that of a consumer buying your product to that of a consumer experiencing your brand. In order to do this, try walking through a real shopping experience, from start to finish, with an assortment of your customers. Map the ‘experience trail’ for each. Where are the highs? The magic moments? How can you take advantage of them? Showcase them? Where are the lows? The dissatisfiers? How can you fix them?

A great example is when I once walked through a bunch of department stores with a group of women shopping for apparel. Stores like these still separate their apparel into departments with anachronistic titles from the 1950s, such as ‘misses,’ ‘petites,’ ‘juniors,’ and ‘women’s.’ The conversations you hear in these walk throughs are a complete downer, as women describe one section as meant for ‘older, bigger women,’ and wistfully recall the days they fit into anything from the colorful, ‘junior’s’ department. The worst thing about this scenario is that just down the mall corridor are specialty stores such as the Gap, where all women are treated exactly the same, regardless of their size.

Walk throughs like these almost always yield surprises, and often, it’s not those seemingly more critical parts of the process that please or piss off your customer, but the trivial stuff that you might have over-looked— and you can fix.

Okay, so you’ve mapped out the shopping experience step by step and you know where the issues and opportunities lie. Some questions you should now ask yourself:

-How does each step in the experience hook into the next?

-How do you maximize the efficiency of the transition from one step to the next and thereby minimize the odds of competitive intervention?

-How can you deliver each step in a way that ensures that the trail consistently delivers the desired brand experience?

The next step is to map out your competitor’s brand experience. Where are their customers most vulnerable? What are their competitive strengths? What are the weaknesses you can exploit?

Look at your brand as an experience rather than a product or service. See it through the eyes of your customer. Pull that experience apart, get it right- both step by step and as a whole- and then put it back together again.

Austin McGhie is head of Sterling Brands’ Strategy team

divider

Change

Tuesday, September 2nd, 2014

Change is good. Change is essential.

The marketplace is a downward-moving escalator. If you stand still you go down. You only go up by running- hard.

Last year, on behalf of your brand, you executed a marketing plan. It worked well and the brand grew. But now that is old news. What will you do this year? Theoretically, if you do more of the same, you might hope at least to hold steady- but that hope assumes the marketplace itself hasn’t changed and begun to work against you. The escalator is moving down.

So what’s new in your plan?

If you’ve written a marketing plan, put it through the change filter. That is, ask yourself what is the one significant change you’ve created that will grab the attention of the target audience? That one difference that will cut through all the other ‘change clutter’ in the marketplace? Change can be good.

However, change has a dangerous flip side, particularly within organizations with short-tenured brand managers (such as packaged goods companies). There’s a need, sometimes perceived, sometimes very real, to do something different- anything different- rather than stick for one extra second with the status quo, even when it is successful.

To do change right, get to know your brand inside and out, and pick one thing to focus upon. Find the one thing that will really make a difference- the one thing that will make you and your brand famous. Build critical marketing mass behind it, execute it flawlessly and then move on to the Next Big Marketing Idea.

Beware the small changes to strategy. Before you know it, they can add up and throw the brand off track. Change with a specific purpose and a planned impact is the type of change you want.

Case in point:

A great example of change-gone-wrong can be drawn from my days as a very young brand assistant working on a ‘luxury’ cat food. We had just replaced one ingredient with another, cheaper ingredient. Like good little brand managers, we’d done due diligence and knew that the taste trade-off was minimal. Yet as soon as we made the switch, we started getting complaints from cat owners. As is always the case, it’s your most loyal customers who notice first, your best customers who write to you first. But how could they possibly have noticed something so small?

Checking back into the brand history files, we discovered our little change, wasn’t the first. In fact, we were just the latest in a long line of similar, ‘insignificant’ trade-offs. We just happened to be the ones who pushed the ‘tipping point’ and fell flat on our face.

As customers, we’ve all experienced this phenomenon. That is, we can’t quite put our finger on what’s happened, but somehow the product or service just isn’t what it used to be- an we quietly move on. No call. No letter. No purchase.

When all is said is done, change is just change. Good change builds. Bad change destroys. The trick is to recognize the difference before it’s too late.

Austin McGhie, Sterling Strategy


divider

Building Critical Marketing Mass

Wednesday, August 20th, 2014

building

“If it’s worth doing, it’s worth doing well. If it can’t be done well, it’s not worth doing at all.” -Proverb

Imagine placing fifty cents into millions of vending machines, all of which require a dollar before you can get anything out of them. In the end, you’ve spent a fortune and absolutely nothing to show for it. You wouldn’t do anything this foolish with your money- right?

But in business, we’re all guilty of doing just that. We spend countless hours writing marketing plans and brainstorming tactics, sometimes even coming up with something both original and brilliant. That original and brilliant idea then goes into the plan with all of the other brilliant initiatives the budget is spread out across all of these smart things we think we need to do.

The problem is that none of these initiatives has any chance of reaching critical mass.

Why? Imagine a line that moves through time. Above this imaginary line you capture your audience’s attention, below this line you don’t. It really can be this absolute, since there is no such thing as almost getting noticed. I always preferred to run well below the line for most of the year, which allowed me to focus my resources and take at least one really strong leap above the line annually.

Limited opportunity for attention means that you need to take each of your tactics or marketing initiatives and prioritize them based on such criteria as strategic importance, marketplace impact and expected cost efficiency. Next, calculate the ‘cost of success’  for each of these initiatives. The ‘cost of success’ should be a real, honest assessment of what it will take for this initiative to work in the marketplace. It’s easy to underestimate how much it takes to get attention from real people out in the real world.

Now, determine how many of your priorities you can afford before you budget runs out. These should be the only projects that get the green light. Do it to effect or don’t do it at all needs to be your guiding philosophy. Once again, be absolutely ruthless with your priority setting. You’ll end up doing less, but you’ll do better.

All of this is just common sense. So why is it so hard to do?

Answer: politics and organizational structure. Different groups want their slice of the budget and it’s hard to say no. A leading retailer with whom I worked with many years ago had a marketing budget in excess of $500 million. Lots of potential for critical mass there. But by the time it was divided amongst every department, critical mass was nowhere to be found.

This is exactly the wrong approach, because for all that money spent, no single initiative ever rose above that invisible attention-getting line. Had the company focused the budget on a smaller number of high priority marketing programs, it could have had a huge marketplace impact throughout the year.

The task, then, is to create critical mass, somehow, somewhere, sometime. This may seem like a dream to some marketers, but that’s an error of perspective. It’s far better to get noticed by one person than to get almost noticed by thousands. Should we be content to forever fall short? It’s the CFO’s fault- right?

So how do you actively create critical mass?

-Believe in what you’ve just read here and apply it ruthlessly

-Limit your core audience

-Limit your geography

-Limit the time frame

-Limit the media mix

-Limit the vehicles used within the selected medium, even if it means advertising in a single television program. (But own that show!)

In other words, always own a slice of a communications channel- and therefore of your prospect’s attention- no matter how thin that slice might be. Then use success on that narrow front to gain a bigger budget and thicker slice.

Meanwhile, it’s good practice to test a few of the proposed initiatives that didn’t make the cut. Test them in a limited geography, time frame or against a limited audience. Once you have a sense of their positive potential, flag those initiatives for next year’s critical mass priority.

Tune in next week when Austin lures us back into the proverbial ‘box’ and gets your brand back on strategy.