Dodo Loves Marketing

Required steps are useful only if they do not obscure the desired outcome.

Mark B., a manager in a large consulting company, was taking the four P.M. flight from New York to Chicago. His plane had already left the gate and was lumbering over to its designated runway. Suddenly_ the captain’s voice crackled over the intercom, announcing: “There is a weather ground stop at O’Hare. At this time, no planes are taking off or landing. Some delays may be possible. We’ll let you know as soon as we hear anything.” ..more

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Level 3: At this level customers expect partnership. They want you to listen to them, to be responsive to them, to make them feel they are on the same side of the fence as you.

Service businesses have long realized the importance of this partnership expectation. That’s why Wal-Mart positions hearty senior citizens at their front door to smile a welcome and remember names. That’s why all airlines create loyalty clubs offering special treatment to frequent fliers. And that’s presumably why video stores offer a “staff picks” section: “We’re like you. We watch videos, too.” ..more

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Required steps only prevent dissatisfaction. They cannot drive customer satisfaction.

You, and every other employee worth his salt, want to do everything in your power to build a growing number of loyal customers. You want to take prospects, who have never tried your product or service before, and turn them into advocates. Advocates are customers who are aggressively loyal. They will not only withstand temptations to defect, they will actively sing your praises. These advocates are your largest unpaid sales force. These advocates, more than marketing, more than promotions, even more than price, are your fuel for sustained growth. ..more

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However skilled you are at the work you plan to do from home, your primary consideration in setting up your new business, must be to establish your market. Quite simply, that means finding your customers. In any business, whether you are a plumber, consultant or counsellor, you need customers to succeed. Tracking customers down — and holding on to them — is one of the most difficult challenges for any new business. If it is remotely possible, it is best not to leave your current job, if you have one, before you have at least one or two leads. ..more

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Managers enjoy being involved in success and so will be full of enthusiasm as sales of a new product start to take off. Expansion and sales development from an increased range of products or a wider geographical area will not find enthusiasm or hard work wanting.

But how do we foresee the end of a product’s lifespan? Be prepared for it with a policy for new products and product improvements.

1. Prepare a product improvement plan

If your present products are selling well you cannot be blamed for feeling satisfied. However, your competitors are watching you with envy and will not have been idle. They are probably working at this very moment on a product with a few advantageous features, so don’t ever think that your current product design is the ultimate. There will be changes in style, custom, fashion, new technology etc. Ensure that your programme of product improvement keeps you ahead. ..more

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Wait a minute—didn’t we just do that? Kind of. But the real cost you need to count isn’t an arithmetic exercise. You must consider the cost to your nonfinancial priorities— school, family, church, friends, and future. The time and attention you pour into your work can damage things that can’t be replaced with cash. If the true cost is too much, set your plans aside. On the other hand, if you can start this new venture without sacrificing more important things, give it a go.

SELL, SELL, SELL

Launching a business is tough, but keeping it going is tougher. To survive, you must attract customers. Who are the people you’ll be serving? How do you land them as customers? Basically, there are three circles of customers: 1) people you know, 2) people who know the people you know, and 3) strangers. Let’s look at each circle. ..more

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Because until you do, until you begin to take it seriously, until you give it the earnest attention it demands, your Prototype will continue to be the only thing it could hope to be under the circumstances—a crap shoot!

At GERBER Business Development Corporation, we have created tools for our small business clients to begin the often arduous task of making demographic and psychographic determinations, and how to position their Prototype in the mind of their consumer. The impact has been astonishing.

Small businesses that acted like small businesses when we met them began to operate with intelligence.

Their customers came vividly alive to them, often for the very first time.

Inquiry, the active solicitation of specific information, and controlled experimentation replaced the guessing, blind hope, and feverish busy work that preceded them. ..more

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Only five years ago, most markets were dominated by a few leading companies, mighty icons with household names that seemed immortal. How quaint all that now seems. Today’s competitors are far more numerous, able, and fierce than ever before because they have to be: What used to be outstanding performance is now the norm.

A useful analogy is the sport of speed skating. In the 1980 Winter Olympics, American Eric Heiden accomplished an unprecedented feat—he won five gold medals Though it was unbeatable in 1980, twenty-five competitors surpassed Heiden’s record in Nagano, Japan, eighteen years later in the 5,000-meter race, and did so by at least 12 seconds. The gold medalist, Gianni Romme of the Netherlands, covered the distance in 6 minutes 22 seconds, eclipsing Heiden’s time by an unbelievable 40 seconds. For that competition, Heiden would not have even qualified. ..more

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In an age in which customers are scarce, any company’s best practices seldom remain proprietary. Business models are shamelessly imitated with inner corporate workings becoming public knowledge. Best practices travel at Internet speed.

People are becoming masters at imitation. If you don’t have a good idea yourself, you can always knock off someone else’s product. An imitation is not necessarily an exact copy. You use details to create a difference: the look, the product extension, the packaging—anything that can make the other company’s idea look less new And this is easier than it used to be. If once you could hold on to a secret formula for years or even decades, now it’s a matter of months or days before your competitors catch up and replicate it. ..more

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The new market leaders know that the greatest constraint on today’s customers is time—more critical even than money. The broader choices, the constant stream of innovations, and the pace of contemporary life conspire to crowd people’s schedules. Whether you’re in the market for a CD player for home or a new supplier of components for your company, you don’t have time to evaluate every option, consider every shred of information, and explore every contingency—even though it would probably be useful to do so.

Time is a flexible commodity: We willingly spend more of it on some activities than on others. A busy manager for whom every minute counts will happily spend hours on thegolf course, but an easygoing person with time to chat will hang up angrily on a telemarketer who calls at dinnertime. ..more

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Imagine a modern Rip Van Winkle waking up from a twenty-year sleep, He would surely be amazed at how the world has changed: He would be bewildered by new technology, bowled over at the speed and clutter of life in 2001, dazzled by the sheer abundance being thrust at him. The torrent of new products, goods, services, ideas, and innovations vying for his attention would be shocking.

How would he react? I suspect, like people through the ages in suddenly changed circumstances, Rip would reset his bearings from his old perspective before cautiously testing the new water. Like a child who clings to a teddy bear well into adolescence, or a lottery winner who repaints the old house, he would cling to the familiar and be slow to embrace what is new. ..more

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Again, for these customers the amount of time demanded is crucial. They prefer to get the house remodeled all at once, rather than spread the project over several years. Once they take the leap into a new computer system or an e-mail provider, they don’t want to think about upkeep or other hassles. In fact, the less they have to think about their system for any reason, the more content they will be. Constant reminders and offers of new bells and whistles will be resented unless they require little, if any, time and effort, like AOL’s automatic upgrades that simply take over the customer’s PC and feed themselves into the system. Of course, not everyone is averse to change. For example, the customers represented in the top of our change axis are ripe for it. Far from savoring stability, they are motivated by the promise of new possibilities. Their problem is the opposite of preserving the present; they are figuring out ways to tap the future. They want as many options as possible and are more than willing to spend time making them. Not that it takes them very long to decide; on the contrary, their needs are so pressing that it is hard to describe them as patient folk. ..more

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With all the demands on our time, it’s not surprising that for the most part, most of us value our routines and aren’t about to embrace every conceivable new possibility that comes our way.

We’re willing to examine options when we’re excited about a new product or service, or frustrated by what we have. But if we’re enjoying our current condition (or disliking alternatives), we will be in no mood to change, much less spend any time listening to a sales pitch. “Give us more of the same, and don’t bother us with the newfangled stuff,” we say. Like the worker who prefers his familiar job to the uncertainties of promotion, we resist any unfamiliarity. We would rather spend our time preserving and building on what we have than exploring what we could be doing instead. ..more

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The fourth quadrant comprises change-ripe customers, who, like the delegators, hire expertise they themselves lack but, unlike the delegators, insist on staying personally involved in the job. In remodeling a house, for example, a collaborator would not only team up with a designer; he or she would work side by side with the expert to create the best-suited outcome.

Collaborators are not to be confused with kibitzers, meddlers, or control freaks. An authentic collaborator genuinely appreciates the depth of knowledge and practical skills of well-chosen experts. Such collaborators respond well to suppliers—such as a truly devoted banker—wh_o offer themselves as coaches, mentors, or partners in launching a customer’s new business venture. ..more

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Home Depot’s vast assortment of building supplies shows that it, too, knows that customers savor choice. But an even more important reason for its lasting success is that it knows how to capitalize on a customer’s wish to perform a task him- or herself. Home Depot employs our second strategy to attract the searchers, showering them with advice and insight.

This paradise for those who subscribe to do-it-yourself turns modestly competent amateurs into confident renovators and barely competent fumblers into people capable of remodeling their kitchens. Home Depot’s employees don’t do the job for you. Instead, they make accessible the information, products, and people you need to complete it for yourself. You feel capable of improving your own skills, which is exactly the feeling that searchers are seeking. ..more

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The second type of manager is keen to learn from market leaders. Astute observers, they have a penchant for analysis and methodology. You can visualize them taking copious notes, jotting down ideas, making checklists, and trying to decipher winning formulas. These managers reside equally among market-leading companies and their lagging competitors. Both design insightful strategies and plans for action. Yet the laggards have more trouble getting others within their organizations to adopt their plans. That even seasoned managers aren’t immune to this problem is evidenced in the number of well-considered plans and sound proposals that die prematurely because they are stonewalled by other departments, ignored by coworkers, or overshadowed by more prosaic routines. This situation is all too familiar to consultants whose well-crafted recommendations end up collecting dust because their clients were not adequately prepared for the changes the new plans entailed. Additionally, rookie MBAs face a rude awakening the first time their knowledge and bright ideas are not instantly acclaimed.

Whereas earlier the manager’s trouble was mobilizing employees, in this instance the obstacle is her or his inability to rally colleagues and bosses around the proposed solutions. If and when they overcome their resistance, excessive amounts of precious energy and time will have been lost. That they may shine methodically is irrelevant in this context because their direction and priorities aren’t aligned with those of the other people who have a stake in the outcome. Market leadership doesn’t bypass these managers because their plans lack specificity or rigor, but rather because they are not sharing the perspective held by the rest of the organization regarding exactly what needs to be done to win in the marketplace. ..more

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A key role of modern marketing is that of a management `mindset’ implemented throughout an organization rather than confined to a particular department (Payne 1995). This viewpoint regards marketing as a guiding management philosophy or ‘attitude of mind’ that puts the customer first, and it is commonly described s a ‘marketing orientation’. It is a much broader view of the role of marketing an has been envisaged in the past, and it cuts across a wide range of organizational functions. Successful adaptation of a marketing orientation requires effective management of all stakeholder groups (this means people with a particular — although not necessarily the same — interest in the activities of the company) such as staff, business partners, shareholders and suppliers, as well as customers. As Chaffey et al. note, ‘The marketing concept should lie at the heart of the organisation, and the actions of directors, managers and employees should be guided by its philosophy’ ..more

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While press attention has focused on the achievements (and, more recently, the struggles) of Internet entrepreneurs in dotcom companies, comparatively little mention has been made of the increasing numbers of service workers who make up the bulk of the demand for labour in new technology industries. Leibovich, in an article appropriately entitled ‘Service workers without a smile’, provides an interesting account of employment conditions at Amazon, world famous for its ground-breaking policies of online customer relationship-building. He notes how staff are pressured to work as quickly as possible in order to achieve customer satisfaction targets, particularly those who earn low wages packing books at the firm’s distribution centres or answering emails from customers, and goes on to observe the irony of the Amazon geography: ‘Customer service employees work in a patchwork of cubicles scattered over three downtown Seattle buildings. The quarters have an old industrial feel, with gritty exteriors that belie the company’s sleek online identity’ (1999: 3). Many other ‘new economy’ employees work in call centres that have been dubbed ‘the new sweatshops’ because of pressure to work as quickly as possible under electronic surveillance that monitors, for example, the number of customer emails responded to per hour. ..more

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`Second-generation’ mobile phones introduced early in 2001 offer faster connection speeds and are starting to carry advertising. High response rates are currently enjoyed by advertisers (perhaps owing to the novelty factor!), and the most successful campaigns have been run by companies such as the Sun newspaper, which has used the mobile channel to advertise competitions being run in the paper itself. In other words, the Sun is using online advertising to drive its traditional core business — which is offline newspaper sales. Mobile advertising still represents a very small percentage of company promotional spend in comparison with more traditional media such as radio and television, but the figure is increasing. Business services via mobile channels are currently few and far between, but early experiments are under way with order placing, stock-checking availability and order tracking to facilitate supply chain integration. ..more

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