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The product is often not what we sell

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The National Trust gives us a great reminder that the products you sell are not necessarily what the customer is buying. Here the National Trust is not promoting the stately homes (the product) they promote a great family day out (the value). The product is the enabler that delivers the desirable customer experience. It is worth remembering that often customers do not value the product, they value what the product can do.

SO in communication we must make sure we work hard to promote the value before we promote the product. “It is not what we do; it is what we do for you”.

The National Trust reminds us that the customer creates the value and our products are only there to deliver it. The product is behind them. This is what we mean by ‘customer first’

September 05, 2009 in Advertising | Permalink | Comments (0) | TrackBack (0)

Accenture gives us a communication master class

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Whilst running for the plane to Houston 10 days ago – this ad stopped me in my tracks. It is a perfect piece of communication. In less than a few seconds it communicates to the target business audience on multiple levels, simultaneously. On digging a little deeper back at the office it is clear that accenture is disciplined about integrating and reinforcing the message. Every piece of communications reinforces the central idea of ‘High Performance’. They have taken a position and they are branding it religiously and relentlessly. They have not adopted multiple messages, a mistake made by many B2B companies, they focus on one message and make it relevant in many contexts reinforcing it in everything they do. The theme of ‘high performance’ is their brand DNA  and the message is a powerful business asset in its own right. By taking this position more powerfully than competitors they deny them and achieve greater ‘mindshare’ as a result.

 

Communication construction:

Customer context: Represented by the cloudy skies and emotive copy. This makes the advertisement immediately relevant and attractive.  

The promise: “High Performance. Delivered” This is what is desired emotionally by the client. It provides purpose. It is what the customer will measure

Endorsement: Tiger Woods. Provides credibility. If accenture is good enough for tiger it’s good enough for the customer. Endorsement reinforces belief

The brand: Accenture. Provides the reference point it is what is remembered

Products: Consulting, Technology, Outsourcing. Importantly this is what we can buy

Call to action: accenture.com. It’s where to go for more information

 

This ad is the tip of the iceberg and provides a perfect template for consistent, brand communication. The content of this advertisement connects and is reinforced by the total package of integrated marketing. My only criticism? Tiger really shouldn’t be teeing off in a thunder storm with a carbon fibre driver, it’s the perfect lightening conductor!

 

September 02, 2009 | Permalink | Comments (2) | TrackBack (0)

Recession proofing the marketing strategy

Fact: Customers are jumping ship!

Question: What do we do?

Answer: Make a new ship!

Top tips for surviving stormy business conditions

  1. Identify, protect (and develop) products that have high value
  2. Do not discount your high value products but expect and prepare for fewer sales with discerning customers. It may be counter intuitive but it is possible to encourage customers to trade up to a better product that lasts longer or delivers more.
  3. Nurture and deliver great service quality and brand experience
  4. Expect to negotiate and provide discounts on mainstream, products and services as a short term defence to protect market share
  5. Fish where the fish are. Develop your longer term attack strategy. Create new  options within new business models that provide customers with the opportunity to trade down to a cost effective choice whilst at the same time give you the ability to protect margin.

From the bridge - look out and what do we see? Stormy weather. We see a period of uncertainty, radical change, and increased conflict. It is time for business creativity to express itself as markets retreat. For our nations, businesses and families it is a time of contraction as forces turn inward not outward, a period of negative yin rather than the positive yang energy we have experienced for over ten years. Globalisation and expansion replaced by protectionism and introspection.

But do not equate negative as always bad – it is just different - as corporal Jones would say “don’t panic Mr Mannering…” It’s a time of real opportunity too.

In a market like this there is something for everyone as long as we know where to look. The trick? Wherever you look for the answer make sure it is not in the same place as before. It is true that for all businesses there is less market to share and with the double wammy of fewer customers with smaller budgets we must navigate carefully through the turbulent water because when we get beyond the storm we need to be sure that our customers are still with us. We need to keep our customers close and value them the same even though they may be spending less money with us.

Keeping the customer rather than growing the customer becomes the focus of our efforts.

If customers are tempted away during this time, when things recover they may not come back – the ones that have traded down may be so happy with the value they receive from their new products and services that they never return. At times like these customers are more tempted than ever to jump ship and we need to have appropriate marketing strategies that prevent them rather than giving in to the short term emotional over reactions of discounting. In marketing we must work harder.

If customers are going to jump ship give them the option to jump into a ship that you built rather than a competitor’s.

During these times customer buying behaviours are more fickle, the sanctity of self image or the perception of potential risk is challenged as the fault line of purchase decisions is more scrutinised than ever. Do I stay with the brand I know or do I go? Is a question asked by customers both individual and corporate more often than before? In a time of plenty buying often becomes habitual or instinctual. Now buying decisions are more conscious and this ‘consciousness’ for the time being becomes the new habit.

In the good times habit masquerades as loyalty and we need to be careful not to confuse the two. When every penny counts it becomes not only essential but cool to be seen to economise – shock headlines like “Waitrose customer seen shopping in Lidl’s”. Or for myself yesterday normally a habitual (rather than loyal…?) Costa coffee fan (£8 per visit) visited a Subway for the first time ever and was pleasantly surprised by both the quality of service and the product (£3 for the visit). Will Subway hold my custom? Probably not. Does Subway fit with my identity? Mmmm. Did Costa lose my custom, even temporarily? Yes. Can Subway make a good margin on £3? Yes. Can Costa make anything on nothing? No

We are more willing to try new (and cheaper) things we do not only look for discounts from the brands we have adopted, which they undoubtedly do, we look for opportunities to trade down either in the sector or parallel sectors. We jump ship not to a direct competitor – in my personal example I didn’t find another coffee shop brand I took my cash to a fast food brand - but to a new competitor in a different sector with a completely different cost base and business model.

Discounting alone is not enough to retain customers with certainty in a recession. Coping with the potential for customer defection through down trading is the necessity. Combined with the current financial constraints these are the mother of your marketing invention. When the money that has kept a market fat drunk and happy for a considerable period has been withdrawn we need to get creative or succumb.

Recession is a time of die back which means a new entrepreneurial generation is born paradoxically without the constraints and burden of excessive overhead recessions give light to encourage the new growth on new business formats.

http://www.insidecrm.com/features/businesses-started-slump-111108/ Burger King, Apple, Hewlett Packard, CNN, Microsoft, GE and Fedex all started and benefitted from the space they were given in the favourable recessionary trading conditions. And its not only good for start ups its a great time to change the business direction. So a recession is the ideal time to start something new – in 1992 after suffering the largest loss in US corporate history IBM repositioned to services first, products second and began the process of moving out of computers and into consulting. The recession of the late ‘80’s also gave the newspaper barons the opportunity to break the power of the printer unions with the switch from hot metal to litho printing epitomised by Fortress Wapping in the London Docklands.

To build our attack and defence it is worth understanding customers buying behaviours in a recession. With a smaller market where every penny counts all of us need to secure a better share:

  1. Not buying  In a recession customer behaviour is defined by the fact that customers either no longer exist – some business to business markets have contracted by more than 50% - or are no longer buying - period. This means that the remaining market is even more competitive. A case of more fish in a smaller pond, no matter how big it was before the pond is now more crowded for the time being. No amount of marketing will change the fact that in some cases markets have vaporised like the Vulcan planet in Star Trek. With less customers buying less we need to be clearer than ever with our marketing strategy, and importantly not over react, over sell and over discount
  2. Buying Value If your product has significant perceived value the price will be stable, but the market and your sales volume by customer will shrink as customers buy less. I really believe that truly valuable things hold their price. Discounting value is defeatist – don’t do it. It is actually a time to take the value product to more customers and grow market share. When the perceived value is high, like for like choices not available and replacement with another category is not an option customers will stay with the valued supplier. In a recession customers will continue to buy on value but these purchases are likely to be fewer, customers are unlikely to move to direct competitors or down trade and discounting is unnecessary. In a recession we can expect fewer orders. In response do not be tempted to compromise your service or discount high value products it is not a solution to lower sales. Discount value sends the wrong message and can seriously devalue the product in the long term. Sectors where value is likely to be preserved within a reduced market size include health, defence, and premium lifestyle brands (perfume, haute couture, yachting, riding, motorsport etc).
  3. Buying service Make customers look good; give them ideas that make them shine. They will be resource constrained and over worked you must pick up the slack for no extra money. It’s a time to go the extra mile and do the work of ten men; tell them jokes; be a shoulder to cry on; make yourself indispensible in the words of my mentor Adrian Rasdall ‘die for your customers’ Nurture and deliver great service quality and brand experience provides some small but essential defence against customer defection.
  1. Buying Discounts As my colleague Zoe Morton said to me recently when budgets are tight expect customers to negotiate. When there are obvious alternatives to the product customers are more likely to demand/expect discounts and to negotiate harder. Today, supply outstrips demand and it is a buyers market. It is negotiation on demand! many of us have received polite and not so polite requests for immediate discounts of between 10 and 15%. If you don’t comply and switching between competitors within the category is easy then there is a significant risk that customers will churn. Discounting may temporarily protect the market share but it doesn’t answer the deeper questions being asked by the market. Discount squeezes your margins and has a limited ability to protect market share. Service quality combined with an openness to negotiate and provide discounts provides some defence against customer defection but can only ever be a short term solution.
  2. Down trading Customers will be more open than ever to down trading. This is the nub of it. There is a choice either loose customers to the creative alternative or be the creative alternative. Down trading is different to discounting when down trading the customer must receive the same or better value to the existing product for a fraction of the cost. Whilst at the same time the company providing the new product receives a healthy margin based on a different business model. Down trading is not to be confused with buying discounted products. When we down trade we buy a replacement product often in a different segment of the market place. For example this year in the UK families are not going abroad for their summer holidays, they are down trading to holidays in the UK. The airlines and many holiday companies such as Mark Warner have all discounted their holidays and fares and yet our local campsite has benefitted and has not needed to discount at all as the customers down traded and jumped ship. Beer sales on draught in pubs collapse as canned beer sales in supermarkets dramatically rise. Traditional advertising spend slumps digital media continues to rise. As many companies suffer from discounting others are benefitting from the phenomenon of down trading. We all need to consider our response to down trading as customers search for what they need from different sources at much cheaper prices.

In conclusion recessions are not bad they are great! It’s a question of choice. In stormy weather we can either go faster… or sink. As captain of the ship we must make the right decisions and whatever our business looks like when we enter the recession, one thing is for sure, if we survive we will look very different when we come out.

 

August 22, 2009 in The Tao of Marketing | Permalink | Comments (0) | TrackBack (0)

Prophecy from the twighlight zone

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This blog is written from the twilight zone – literally. We left Heathrow at 4pm and will arrive in Calgary at 6pm and the sun has been setting for 6 hours – tests the concept of a red sky at night…

Is there a time for all of us when the sci-fi projected future of our youth becomes a reality? The wheel goes round. We respect the creative vision of these cultural prophets. Orson Well’s tanks, George Orwell’s ‘big brother watching’ spookily manifest with a surveillance camera on every corner, all normalised years ago. An old future is again being made new reality and we are watching its manifestation.

Today’s auspicious reference points come straight from the 26 year old digital world of Ridley Scott’s Blade Runner - minus the replicants and flying cars (that bit seems more difficult to make  a reality…)  In our communal environments we are increasingly surrounded by the moving image – digital advertising on the underground, flat screen news at the airport, downloads to our hand-helds. My children no longer ‘watch the television’ they download content… or they make their own. They share their brand allegiances on msm, u-tube and Bebo and advertisers embrace the individual’s choice. The young folk actually choose the ads from the brands they wish to watch and download them onto pc’s and ipods. The ad was historically an annoying insert within the content or context – now it is the content or context itself…The brands we choose are integral to our identity and the ad is now an emblem or flag of allegiance. Brands and the identities they serve know no boundaries in a digital world and will erode and homogenise culture. The dark, digital genie predicted by the likes of Ridley Scott is out of the bottle and his prophesy is unraveling.

Where are today’s cultural prophets? Who are they and what are are their visions? Answers on Facebook please.

February 23, 2009 in Dialectic | Permalink | Comments (0) | TrackBack (0)

fly with flyBE

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flyBE is a UK based regional airline flying out of Birmingham and other UKcities. It has become the first airline to visibly brand its aircraft with the ubiquitous energy rating certificate. At six foot two, my experience of getting into an Embraer 145 has always been akin to climbing into my fridge freezer or tumble dryer. Now this experience is made complete, more resonant of Band Q rather than BIA (Birmingham International Airport). Come on BA and Virgin I dare you to do the same on your 747s and 777s. Thanks flyBE for making my environmental impact part of the travelling experience.

February 23, 2009 in Branding and marketing | Permalink | Comments (1) | TrackBack (0)

Logic, argument, reason …and lying

 

Marketing often employs poor argument and relies for its success on the consumers’ lack of reason - wrapping products in a valid argument that is based on false premises or using true claims in an invalid argument. The marketing people wearing white hats use valid reasoned argument based on sound premises that are true. On the other hand… lying – using claims that are untrue or arguments that are invalid exploits the consumers’ insecurities and vulnerabilities to a tea...

It is a fact emotion clouds our ability to reason.

The more emotionally vulnerable people are, the more easily they are manipulated. The vulnerable are not only the down trodden, or as obvious as the buyers of lottery tickets. They are people in power too, they can lack the ability to reason – and most of them are men. Women have known this since the time of the cave. Men may be physically stronger but are ten times more emotionally vulnerable and their denial fuels the power of the yin, the dark, the deep, the feminine, the emotional. And Plato had a point.

A seminal moment for me was a number of years ago making a presentation to a company board and I began to discuss the relevance and importance of emotion in the functioning of business. The CEO stopped me in my tracks to claim that there was no place for emotion in business and that my line of thinking was wasting time, pointless and beginning to annoy him. It was at that point that I became acutely aware that the board members, including the CEO were wearing Ralph Loren shirts, writing with Mont Blanc pens, using Rolex time pieces and a look out of the window revealed top of the range BMW’s in the executive parking bay. In their denial they seemed to be making some pretty unreasoned emotionally based decisions outside of the boardroom and that despite, or maybe because of their power they were exceptionally vulnerable.

When we are vulnerable reason goes out the window just when we need it most. When we most desperately want to believe we suspend the need to be rigorous in our thinking. Or we delude ourselves with complex premises that appear true but are based on falsehoods. If the current state of the world economy is anything to go by it proves that the powerful are as vulnerable as the weak – maybe more so.

So in difficult times like now, when the stakes are even higher, before making a decision it pays to check both the truth of the premises and the validity of conclusions. That is unless you enjoy being deceived – as a consenting adult it is often fun to see how far the fantasy can go, and pay for it gladly.

What makes a conclusion truthful is not the validity of the argument but the truthfulness of the claims. For example the argument ‘Only frogs wear snorkels, this animal wears a snorkel, therefore it is a frog!’ – a valid argument that is untrue. Marketing often employs a slight of hand which presents valid argument with false claims. We understand the validity of argument we just don’t check the claims. Worse – we want to believe the falsehood even more when it taps into our insecurities. Untruthful claims stick and even though the consumers of them know they are duped, if enough people believe the lie it becomes a group truth. Sorry to reveal it here but sadly Nike does not make you a winner (based on a valid argument ‘only winners wear Nike, I wear Nike therefore I am a winner…) Red Bull does not give you wings, and Volvo is not the safest car.

When in the good times we can afford to play with our vulnerabilities, we have the extra cash. Now is not a time for poor decisions swayed by emotion, now is the time for reason, for logic. And in decision making logic trumps emotion every time and it is the lack of logic and reason that marketing communications try to exploit, and with unbridled success. If the recession brings benefits I hope that improved reason and logic be one of them.

To find out how logical you are try this fun test at http://www.think-logically.co.uk/lt.htm

February 23, 2009 in Dialectic | Permalink | Comments (0) | TrackBack (0)

So type-ically Italian

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I was struck by this picture - no unfortunately not in Milan but in a chip shop in Cheddar Gorge (...great place by the way - the gorge and the chip shop...) The type really is quintessentially Italian and I was reminded that it is not only the image and the words that convey the semiotic message it is the choice of typeface too that enriches the communication.

November 22, 2008 in Branding and marketing | Permalink | Comments (0) | TrackBack (0)

Convenience ipod

Optlift 014 

How about that an ipod vending machine. Packet of crisps, mars bar, pepsi ... and an ipod. Snapped this in Houston last week.It's an ipod vending machine. The apple brand folk do it again. Not only is the product innovative but the brand promotion too.

November 22, 2008 in Branding and marketing | Permalink | Comments (0) | TrackBack (0)

In favour of difficult behaviour

If we are to believe recent press reports there is a highly visible epidemic - ADHD and dyslexia and all manors of ‘special’ needs. It is well documented that these difficulties often present themselves through challenging behaviours.

According to Darwinian laws, if dyslexia inhibited survival it would not be present in the gene pool and yet it is. The incidence of dyslexia in western society runs at a consistent 10% of the population ranging from 4% seriously affected to mild symptoms. It seems difficult people have a purpose. And ‘special needs’ can mean ‘special gifts’. Certain groups have increased predisposition to dyslexia and ADHD – entrepreneurs, creative services and sports requiring super fast visual processing… Being loosely wired can for some be a positive advantage. If dyslexia is related to creativity then we can assume that society naturally needs 10% of the population to be dyslexic it follows that a healthy and functioning group should employ 10% dyslexic people… But there’s a problem, anxieties associated with the presentation of these psychological and behavioural symptoms are reaching an all time high. Society is begging the question – ‘How can we cure these people before they seriously threaten us…?’ These children are ill. We must fix them up. A society populated by ‘special needs’?  What a terrifying prospect?

So, we are galvanized to cure these problems – with drugs wherever possible! Let’s turn these ‘wrong’ behaviours off and homogenize these dysfunctions, sanitize and subdue – “ahh that’s better,” we say…

Maybe ADHD or dyslexia is not the scary thing – but, it is society’s response and the denial associated with the proposed treatments which is terrifying.

It’s a weird thing to consider that at a time when allegedly we have more freedom than ever (particularly in the areas of conspicuous consumption i.e. we can happily indulge ourselves - or is that gorge ourselves…- to death) we are conversely less free than ever to explore and express ourselves as individuals and that this repression is manifesting itself in increasingly neurotic behaviour – like overcrowded rats our creative drives, desires and passions become destructive. We can eat and fuck what we like; and we can buy anything off eBay, but we are more controlled than ever in what we can think, say and do. It is a gratuitous fatuous freedom within high-voltage conformist electric fences. Step over the line and be hospitalized, sued or charged.

Do parents live in fear of their neighbours, their children’s peers and friends? Is playing in front of the computer accepted as somehow safer than playing in the street, or across the fields. Children can eat excessively but they can’t go out to play. Things are getting dangerously out of balance.

Our children are restricted psychologically, emotionally and physically. Ultimately it is their creative drives that are suppressed and this repression must contribute to the psychosis which presents itself as excesses of introversion or extroversion. At the most prosaic level, it must be mad that children are banned from exploring the creative arts of paper aeroplanes and conkers because of ‘health and safety’ and yet they are free to express themselves creatively by hurling rocks and knives at each other during the lunch break – a true story, my sister is a teacher and she is unable to open the window in case little Jenny or Johnny feel the urge to throw themselves out. Creative energy must be liberated or it becomes a destructive psychotic force.

Put simply the psychology of some people is more predisposed to creative function and psychosis than others – we must accept that some brains are more loosely wired.

This is the context for many current behavioural dysfunctions that are presented as psycho clinical conditions. This is not to say that these conditions do not exist but the repressive environment we find ourselves in, made worse by masquerading as freedom goes some way to explain why our children and the wider society is suffering. And the more we try to control the situation with medication the worse it is likely to become.

Societies value sameness and wish to ‘cure’ and suppress difference.

This is not a new phenomenon but it is made worse by our increasingly chaotic post modern age. The more our boundaries breakdown – globalisation, internet, and technology – the more we will desire control and yet the more elusive that control will become. It’s ironic that the creative drives that fuel the development of urban, production based civilisation creates societies populated by peoples expected to perform within a given repeatable ‘spread sheet’. The tools that have been created to serve us, to make our society predictable and controllable are now fragmenting it. As we strive for more control our technology and urbanisation has the undesirable bi-product of increasing our chaos.

Paradoxically in chaos creativity thrives. We should embrace it not control it. Now here’s a thought - maybe these children we vilify so much in the media they do not threaten us but provide us with our hope. Potentially these are the creative people that can show us the way.

We cannot be absolute – in any community there must be significant levels of conformity to function and process things, to repeat and scale-up functions to create wealth. In organisations and businesses and groups conformity helps everything fit together and provides competitive advantage – things and people conform and get along together.

“When we find ourselves in groups we inevitably find ourselves in the minority occasionally. Generally speaking, we will feel a little uncomfortable with that situation, which explains why we generally seek out groups with interests similar to our own. Imagine, though, that you are in a group where you are sure you are right and everyone else is wrong…”

If we were all different all the time we could not repeat things with any degree of success, society or a business can not function with excessive experimentation. There needs to be sameness so that groups can coagulate to perform as communities. But we have gone too far – in the past the Brits were renowned for celebrating the eccentric, the outsider, the innovator – not now.

As established boundaries break down and chaos increases the quest for conformity won’t save you. It is difference that you need. Different ideas, different approaches delivered by different minds. Are we recognising difference and the important role it plays in a healthy society or are we subduing and repressing it?

The creative mind could be being seen as disruptive rather than valuable and the more we control the more the psychosis of repressed creativity becomes evident – ADHD and dyslexia. These behavioural challenges are more often viewed as illnesses to be cured rather than indications of special gifts and talents. They are judged as weaknesses to be overcome not strengths to be nurtured. To celebrate them rather than fear them would be a challenge to our modern view of the world. In our modern times unstructured creative behaviours are more taboo than ever. It takes the most visionary parents or the strongest character to survive outside the accepted spectrum of ‘normality’.

Maybe it is not so strange that surveys of dyslexia for the prison population and among entrepreneurs are similar:

For the first time, new research shows that entrepreneurs are five times more likely to suffer from dyslexia then your average

UK

citizen and this has major implications for this Government’s key aim of creating a more entrepreneurial British society through initiatives such as this week’s National Enterprise week.

The research carried out by Simfonec, a science research centre based at Cass Business School, found that 20% of entrepreneurs (business owners employing at least one person) studied were dyslexic whereas employed managers (those who supervise at least one person) reflected the UK national dyslexia incidence level of 4%.

The research also found that 70% of dyslexic entrepreneurs who participated in the second, more in depth stage of the research, did not succeed at school. Researcher and Director of Simfonec, Dr Julie Logan notes that some of the UK’s leading entrepreneurs such as Sir Richard Branson, Sir Alan Sugar, Anita Roddick and Sir Norman Foster allegedly suffer from dyslexia and says this research not only links dyslexia and entrepreneurship for the first time but it also has fundamental implications about how entrepreneurship should be fostered.

A 1996 study by the National Probation Service found that 52% of prisoners in London

exhibited signs of dyslexia. A study earlier this year by the British Dyslexia Association and the Youth Offending Team in Bradford found that over half of the young offenders were dyslexic. Cass BusinessSchoolLondon 2006.

Are the indicators of dyslexia and ADHD problems a reflection of their sick minds or does it reflect societies inability to embrace, understand and nurture the special creative talents of this minority group. Dyslexia and ADHD can often present itself as disruptive and even anti-social behaviour undoubtedly, but is it right that the reaction is to cage it and cure it rather than nurture it.

November 22, 2008 in Dialectic | Permalink | Comments (1) | TrackBack (0)

Branding master-class with bin and Porsche

Porsche  SV300441

Apple provides us all with a master-class in branding. The apple logo is so well recognised it brands our very psyche. The iconic logo is just everywhere. Apple helps their cause and gives away logo stickers with every new computer and punters stick them on almost anything from the sublime – here’s an Apple Porsche, courtesy of colleague Rich Claridge – to the ridiculous – here’s an Apple waste bin from our studio. One of the first rules of branding states that ‘visibility leads to favourability’ and Apple gets it.

 

September 28, 2008 in Branding and marketing | Permalink | Comments (1) | TrackBack (0)

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