Before I explain, let me state that I am one of those sport fans: I watch, participate and discuss a wide range of sports.  While auto racing is not one of my most favorite sports, I do watch a variety of auto racing and I have been to a number of NASCAR and Formula races. And to be totally open, one of my “bucket list” activities was to drive a race car.  That item got checked off last year when I rode in a NASCAR car at Daytona and did three (3) laps at an average of 180+ MPH.  That was an experience I will always remember, and from it I now have a tremendous appreciation for all race car drivers.

Back to my point, while Matt won the race, Brad Keselowski (another driver) did some tweeting during some of the caution delays and it has been reported that his followers tripled or went from about 50,000 to over 200,000 followers in a manner of minutes.  You can see one of his tweets and picture here   https://twitter.com/#!/keselowski/status/174327635093106688/photo/1

Now, I will admit some of those followers were probably people in the grandstand, but many were not and the main point is if you have a product or service, do not underestimate the power of social media in getting your product or service some attention and business. If you know your targeted market(s) and the critical issues, then social media is a great way to share your concerns, identify with your followers and build a relationship. If you are not convinced, I would recommend that, as a minimum, your company monitor what is being said about your product or service or competitive products and services so you can gather free information about what the end users are saying and looking for, both positively and negatively.

And by the way do what Brad Keselowski did; pull over in your car before you tweet.

RHL 3/1/12

Pawngo, a startup on-line pawn broker (who shares investors with Groupon) thought it could attract attention and gain customers by dumping 8.000 Butterfinger candy bars on Copley Square in Boston, with a sign that said, “Thank You, Wes Welker,”  and promoting the event on twitter.

FAIL!!!!

No marketing campaign should ever be built on or contain derogatory comments or references to your competitors, people or things.  Full Stop.

Boston sports fans are among the most loyal in the country.  They have suffered through heart-breaking losses and enjoyed championships.  Their relationships range from religious to fanatical.

But they are fans.  They know that they are rooting for teams, and that teams win, individuals don’t.  The Patriots as a team lost the Super Bowl.  They would have won as a team.

Highlighting a person, thing or place and making fun of it tends to alienate fans and followers.  Pawngo has about as much chance of gaining market share in New England as Bucky Dent has of being elected Mayor of Boston. (To reference another heart breaking loss.)  What Pawngo, Chevy (who belittled Ford in one of their ads) and others don't realize is that people follow teams (or brands) and an insult to a team/brand is an insult to them.  This negative impact lasts a long time.

While the CEO of Pawngo has offered an apology, it is full of marketing BS, and you can almost hear him chuckling, “gee, I am sorry” …but look at all the free press we got!  While some say that no publicity is bad, I say what Pawngo did is bad and will have a long term negative impact on them.

To young and old marketers, this is a valuable learning moment. 

To Wes Welker and the Patriots, I say thank you for doing as well as you did, we know that you tried hard and gave it your all…job well done.

RHM

2/9/2012

Product:   the “thing” manufactured by a company and sold to the buyer.  Note: service and software are now products and secondly, differentiation and value propositions (not the only criteria) are required to keep your specific product or service selling.  Suggested modification here is to incorporate for B2B solutions not just products, because buyers are looking for solutions that address their “pain points” or applications and this requires a combination of products and services.

Price:   the amount proposed for the product or service, not necessarily the actual sold price.   I would suggest that value might be a better criterion here than price but that is for another discussion.

Place:  where the buyer can actually purchase the product or service.  Historically this was a store or a distribution channel but mainly someplace that one went to pick up or the process by which the product was delivered.   With the introduction of the Internet, today buyers do not even have to leave their home to buy almost anything!

Promotion:  the methods used by marketing to promote their product or services.  Like anything else there are numerous methods to pick from in promoting a product, the real challenge is defining the appropriate mix.  And again with the introduction of the Internet, there are more possible selections and thus more considerations.

Wikipedia suggests that there are three (3) additional P’s to consider.  People - those who consume the product, and thus the topics like market segmentation and data gathering should be added to the marketing activities.  Process- the flow of activities by marketing, or as I like to think about it,  the overall campaign and how to make it a completely integrated process in order to obtain maximum impact. Physical evidence- part of the marketing strategy that addresses some form of customer satisfaction.

I would suggest adding the fifth category called Public and here is why.   First of all, Bob and I have stated that the selling process has changed, the buyer is now in control and the potential buyer is doing research long before the selected vendor even knows about it.   Again the Internet and now social media are providing massive amounts of information (granted not all of it is factually correct) about companies and their product and services.   Therefore Marketing must, as a minimum, monitor what is being said about their company and its products and services.  Even though the comments may not be from potential buyers, they will have an impact on the image and opinions of others, thus companies need to be aware of the public and their perceptions (perceptions are real) and integrate this into their overall marketing activities.

Are you adequately monitoring everything that is being said about your company and your products and services?

RHL 12/14/10

Below are only some of lead generation programs that you can use:

• Word-of-mouth referrals
• Advertising
  • Print (Magazine, Newspapers)
  • Billboard (Google: Jack Welch Billboards Lexan Detroit)
  • Bingo Cards
  • Collateral material
  • Television
  • Urinal inserts (See Maverick Marketing by Tom Hayes)
  • Blimps
  • Product placement in movies (Look for Bud Light in The Town)
  • Trade Shows
• On-line
  • Webinars
  • Podcasts
• Social Media
  • Blogging
  • User Groups
  • You Tube
  • Microblogging – microsites
  • Facebook, LinkedIn groups
  • Facebook, LinedIn ads
  • twitter
  • Brainshark, SlideShare
  • Getting mentioned by influential bloggers
  • SEO for website
• Email
• Direct mail
• Product reviews

And this is only a partial list.  In talking with B2B clients in the New England area, Dick and I find that the vast majority use only a few programs; usually a mix of direct mail, emails to existing customers and purchased lists, print advertising, collateral material and one-two key trade shows (which don’t generate leads but are “required.”)  Some firms have put their toe into the Social Media environment,  but they really haven’t embraced it.

While the mix of what works for each company is different; based on their product, their industry, their available resources, etc., we find it odd that there seems to be a continuing reliance on past practices and a reluctance to try something new.  This is surprising as in many of our conversations the marketing people comment on the dearth of new leads and/or the unqualified nature of the leads they are getting.  Duh…what I am doing is not working, but I am correcting it by changing the ratio of what I have done in the past.

Today’s economy and the speed of change requires a philosophy of “try it, and if it fails, try something else” rather than “stick with what you know best, and ride out the storm.”  Five years ago only a few people were using the terms viral marketing and buzz marketing.  Today they are being used by creative people to generate leads, drive revenue and gain market share.  On the horizon are newer, untested approaches to get buyers attention and mind share.

Trying something new and/or changing your approach need not be expensive or incur significant added cost.  Failing to change may lead to lost sales.

Is Sales satisfied with the number of qualified leads that you are providing?  What new program are you trying?  If that fails, what are you going to do next?  Unabashed plug; we can help by reviewing your mix and making suggestions.

An interesting blog that talks about continuing with the tried and proven and the consequences, is here:  http://blogs.hbr.org/cs/2010/09/dont_innovate_italian_soccer_s.html

RHM  9/23/2010

Recent data indicates that tradeshows have been on the decline for a number of years. Reasons for this vary but two are the economy and the newly emerging alternatives to tradeshows.

Now the downturn in the economy made corporations look at expense items and increase their cost cutting activities. Tradeshows were one of the areas that got hit very hard.   It is a very expensive activity when one considers the cost of the floor space, construction of the booth, staffing ( lodging and travel), entertainment, pre and post advertising, lead generation programs, professional hawkers, video production, specialized collateral, give a ways, etc., etc.  And let’s not forgot the potential attendees. They too work for corporations, and their management is doing the same cost cutting activities…getting approval to go to tradeshows is becoming very difficult.

Second, tradeshows in most cases (there are always the exceptions where certain industries, tradeshows are doing fairly well) have become alumni reunions or a chance to pass your resume on to your competitor.   At one recent tradeshow that I attended, I would conservatively estimate that the ratio of potential buyers to vendors was one to twenty! 

The economy probably put focus on the cost versus returns on investment metric for tradeshows, but I think the real negative impact on tradeshows is coming from the increasing alternatives now available.

Some of the byproducts of the Internet relative to tradeshows are seminars, webinars, podcasts, virtual tradeshows, web sites, blogging, user’s groups and live video demonstrations.

The first step for many corporations was to not withdraw from being at a tradeshow, but to cut back on the size and the amount spent, augmenting the shows with some of the above mentioned activities.

This way, there was presence at the show so no one would think they were going out of business and by physically participating some lead generation could be realized and/or a product/service introduction  could be made if it was appropriate.

As the stigma of not attending a tradeshow has decreased, corporations are shifting more to events like seminars, virtual tradeshows and other alternatives. 

So as I have always stated, there are choices and now, more than ever, there are numerous alternatives to tradeshows.

Here are some suggestions on selecting where you might spend your marketing dollars when it comes to tradeshows.

1-      Look at the tradeshows past attendance record, mix, and profile to see how closely it matches your customer profile.

2-      Which one of your competitors, partners or major clients are attending the shows you are considering?

3-      Are you planning on having a major announcement (product, service, technology or partnership) that would generate increased awareness or people to come to your booth?

4-      Will the blend of items like webinars and targeted email campaign deliver a better return on investment (leads/dollars spent) then one tradeshow?

5-      If a tradeshow does make sense, maybe consider “partial” involvement (fewer days, or smaller booth, etc.) and augment the show with a pre or post email campaign.

6-      Consider outsourcing the tradeshow activity to reduce some of the cost and time involvement.

7-      Consider attending the tradeshow as a speaker, with an “off-floor” presence to meet current and potential customers and partners.

8-      Do a complete ROI and potential sales impact on whatever marketing mix scenario you are considering.

See you at the next virtual trade show!

RHL 9/1/10

1-      Advertising: Advertising’s main feature is increasing awareness.   An example of an ad might be an enterprise promoting that it is number one in providing top quality lawn mowers. Ads also help promote your product or service and branding for your enterprise.   Major advice regarding advertising is to very clear about its objective, who is the audience and how will you measure its effectiveness.

One major mistake that many companies make is that after doing an excellent job of determining the objectives, defining audience and establishing metrics, is that they do not fund the advertising plan so that it will be effective.  All too many times after an ad campaign starts they stop funding it because they do not see any positive results.  Typically ad programs have a “threshold” or how many times it must run to be effective, but many companies stop part of the way through and move on to something else.  Rule number one; do not run any ads unless you are funded for the full program!

2-      Direct mail or email campaigns: The primary purpose of mailings, direct or email, is to generate leads, via some form of an offer or call to action. An example of a direct mail might be a message that addresses the need for additional revenues and implementing a marketing program that will result in additional revenues.  Mailings can also be used for promoting any major communication messages.  Like advertising, first make sure you know your objective and have a targeted audience and how you will measure the campaign.  Word of caution, mailings do not usually replace the sales force (I am addressing business to business markets). But as stated, they provide leads or names of potential customers.  The biggest mistakes most companies make are; the offer does not line up with the targeted audience, the offer is not compelling. and a lack of a call to action. If you do not address these issues you are only “clicks” away from losing your potential customer.

3-      Social Media:  Social Media’s main purpose is providing “information” about your products, services, and enterprise, and other people’s opinions about all three. As Bob has discussed in a number of articles, social media is not only growing at a rapid rate, it is becoming a resource for consumer/buyers to research the potential product or service way before your enterprise is even aware of the buyer’s interest.  Key advice here is to at least monitor these activities, respond to viewer’s comments, especially if there is bad publicity.  Common mistakes are not engaging in one form of these activities, becoming defensive about social remarks and not gathering this information for future products or services.

4-      Trade shows, seminars, webinars: These tools can address many issues, but usually their primary objectives are leads and a product/service introduction or announcement. An example might be “Visit our booth #1234 and see the industry’s fastest switch”.   Two of the biggest mistakes are not getting the leads out to the field in a timely manner and having a very strong message that is easy to understand.

5-      Newsletters, Catalogs: Primary use is for convening information, be it some form of an update or similar to the trade show, an announcement of a new product or service.   Key for success for these is attention getting and true value proposition.

Understand there are numerous marketing tools and even more  when you make different mixes, and I have just highlighted just 5.  Regardless of the tools you use or what combinations, remember that you must have an objective, a well defined audience, an agreed method of measurement and most importantly, adequate funds for each program/campaign.  The key to a successful use of these marketing tools is to coordinate these activities with the sales organization (give them plenty of notice ahead of time) and other distribution channels.

RHL 06/15/10

Well, nothing could be further from the truth.  Let me give two examples to prove that branding is not only important for image but in getting and keeping customers. But first a brief definition; branding is a sign, a symbol or a slogan that people identify and relate to a product or service.

Do you remember when Coke changed their name to New Coke? What a mess that was. Not only did people get confused, but some of their following started to try other soft drinks.  It did not take long for Coke to change their strategy and go back to what worked in the past.

A more recent massive mistake was when Tropicana changed their image on their orange juice cartoon.  For years, Tropicana had on its carton a big orange with a straw through it.  The new carton has half light green and white panels with the word Tropicana in script on the carton.  So when I was in the grocery store, like millions of others, I had orange juice on my list. When I got to the milk/juice section, I saw a new manufacturer of orange juice (my first reaction), then I thought, no it is a “knock off” on Tropicana. Then to my amazement, I realized, NO it is Tropicana. THEN, I thought who is in charge of marketing at Tropicana and what was going on in his/her head in making this critical change.  Well I did a little research and talked to others and it was unanimous, what was Tropicana thinking?

With today’s technologies, branding needs to be considered in many areas.  An enterprise’s web site needs to be consistent with its branding so that users “link” the web site with the physical enterprise and their products. The brand also needs to be unique so that the buyer will also associate your enterprise and their product with the product they are seeking to buy (Nike’s brand – the swoosh- is more identifiable then the name).

So don’t make the mistake and not develop a strategy for branding and don’t casually change your branding and assume it will not have any negative impact.

What is your brand strategy?  What stories do you have about Marketer’s branding blunders?

RHL 04/20/10

One tool to help you in the process is market segmentation (A market segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service, from Wikipedia).

The following is a guide for the segmentation process

For the purpose of this guide we will assume we are marketing in the B2B environment (there are differences versus B2C but it is more in the ingredients versus the formula).

First here are some key initial steps in helping make the selection process.

1-     Is there information about the customers to be obtained?  

2-     Will these markets be accessible, i.e. can we reach them?

3-     Is the segment large enough to spend effort on them (this will lead to estimating profitability, but that is a different exercise).

4-     Does this segment “match” your enterprise goals and objectives?

Second, completely understand the Strategic Business Units (SBUs) strategies and product/service portfolios so that you have a firm reference point(s) on what segments best match up to their goals and objectives.

Third, know your competition and what are their strategy, products/services and their value proposition in these segments… it may be different for different segments.

Fourth, consider what I call the “surrounds” those aspects that can relate and impact a segment.   Two examples are: the mobile phone and how it impacted land lines vendors and suppliers. The internet and how the convergence of data and voice impacted traditional PBX vendors, tariffs and business applications.

Fifth, start with macro segmentation, which has organizational characteristics such as size, geography, and organizational structure. A helping structure is North American Industry Classification System (NAICS). For the NAICS codes 541511, a high level breakdown  looks like this; 54 is for technical services sector and 1511 is for Computer software analysis and design services.

Sixth, assuming you have the resources, dig deeper. A micro segmentation addresses areas like decision making, buying attributes, and user attitudes of the players in the segment.

In many cases of B2B it is important to know the buying habits of the end user or the buying procedures of the enterprise.  A marketer might be required to have messaging or value propositions that appeal to the purchasing organizations. An example is the buying cycle, if one can improve this cycle for its customers this could be an overall key factor.

Seventh, test your assumptions and segmentations before making any major investments.

Eighth, Now if you have done the above you are half way there. The next major step is the implementation of your strategies. Keep in mind that the strategy for B2B is NOT a short time or quick fix issue; it needs to be thought out such that it will last, at least long enough to have time for implementation and a buying cycle so you can analyze actual realistic results. An example of implementation is what type of service will be needed to support the business and marketing goals. Another example is how is the sales force organized relative to the market segmentations?

Here is just one example of an enterprise that utilizes segmentation with great success. Dell has at the macro level the Home segment (B2C) and the Business segment (B2B). Then within the B2B they have small businesses.  Within the small businesses they have solutions that range from laptops to high end servers. For each sub segment, Dell offers various packages.

Key point:  if you do not know your customer, and your competitor does, you won’t make a sale!

                        To see some examples of the implementation process, Click Here

RHL 3/30/10

Generation Y consumers gather their information in ways that are quite different than the way Baby Boomers do. We do not read the newspaper, we do not tune in to the hourly news on the television much (except for MTV and E! News), and we change the channel as soon as radio news comes on. Instead, we are turning our attention the the Internet, friends, and families for our information. A Study by Marketing Management students at Western New England college (www.wnec.edu) found that out of 600 people surveyed, 480 reported that they use the Internet to make purchase decisions, and 420 said they turn to friends and family to gather information. This dramatic shift in how Gen Y consumes information about brands shows that trust in a company is not in the hands of that company, but rather in its endorsers and influencers.

I have found that purchase influencers are a huge part of how I shop and learn about brands. If I was going to buy a new phone, I would not rely solely on an advertisement or Consumer Report. Instead, I would find a friend who is either knowledgeable in that product category, or who has that product, and ask for their input. Social networks are a great place to ask these questions and hear back from various friends and family members, Pew Research (link: http://pewresearch.org/pubs/1093/generations-online) reported that 67% of Gen Y’ers use social networks to connect with others.

The diagram below is also from Pew Research (link: http://pewresearch.org/pubs/1093/generations-online). It demonstrates the online habits of each generation. While Internet usage has increased among all generations, the Gen Y habits are of particular interest. Generation Y can also be considered the Echo Generation since we are the offspring of the Baby Boomers, the largest consumer segment in history. Because of this, we clearly are also a large consumer base that will influence the way companies do business and reach out to us. The diagram shows that 84% of these consumers research for products online, and 76% get their news from Internet sources. 71% reported that they are highly likely to make a purchase online.

I strongly encourage every company that has a Generation Y target market to begin Internet and word-of-mouth campaigns. If your main consumers are online doing research on your company, you must ensure you have excellent, searchable content. You must also be on the social networks that your consumers are using so that you can start generating word-of-mouth advertising. If you post fascinating and intriguing information, we will be very likely to spread it. Fads online come to fame as fast as they can fade away, but if you are clever enough and do your research, you can generate tons of buzz in a short amount of time which can boost sales dramatically, especially if about three-quarters of Generation Y consumers are ready to buy online.

If trust in brand information is not gained through advertisements and Consumer Reports anymore, but through the Internet, friends, and family, how do you foresee your company’s marketing endeavors changing in the next few years to adapt?

Kristin Dziadul, a recent college graduate, is a “digital native.”  She blogs daily about Gen Y activities and customs.  Her blog can be found on her website, http://kdmedianow.com

Looking at the ad a second and third time confirmed my concerns.  While it shows a cute boy, in an inverse situation, and mentions Doritos, I find the context disturbing.

Specifically the ad seems to highlight:

• Being a single mom is OK; they have no problems
• Leering after a woman’s behind is part of what a man does
• Violence (slapping) is an acceptable form of behavior
• Physically getting is someone’s face is a way to enforce your position

Underlying these actions is that the actors were black.  Would this ad been as “cute” if the actors were Asian or Native American?  Does portraying blacks in this way reinforce a positive stereotype?  What would have been the reaction if the adult had slapped the child?

I wonder if Doritos’ Marketing management asked and answered these questions when they oversaw the production of this ad, and paid about $1.5M for the airtime?  I wonder why they thought that this was acceptable ad to show to over 100 million Americans?

I recognize that the Dorito commercial is not the only offensive commercial every made.  Knowing the multiple influences on Marketers to differentiate themselves, I wonder if they have lost sight of basic Marketing 101:

• Know your customer (Who is it in this commercial, smug white people, stereotyped black people, mis-behaving 4 year olds?)
• What is the message? (What is Doritos try to express, humor, wisdom, knowledge?)
• What is the offer? (How different are Doritos than their competitors, what to they offer me, the buyer. that is different?)

If Doritos was interested in “playing nice” with their customers, and not highlighting unacceptable social behavior and reinforcing stereotypes, could that money have been better spent on education?

Or am I out of touch with marketing and advertising today?

RHM  2/12/2010