Given the technology focus of Boston area companies, with a high concentration of hi-tech, bio-pharma, and green oriented companies this statement might be viewed as heresy and unbelievable.

However, Ralph is an MIT educated engineer and has real world examples to back up his claim, both for success and failures.  The data can be found on his web site:  http://www.marketingvp.com/index.html

What I especially like is his definition of what he includes in Marketing:

• budgeting the resources and time – the Marketing/Engineering Investment Ratio™
• conducting primary and secondary market research
• developing strategy
• articulating the value of the technology
• understanding the potential customer
• modeling both the customer’s business, and your own
• calculating customer payback
• quantifying customer needs
• specifying the product – guiding engineering
• thinking through the “6 P’s and a D”

• questioning and surveying the customer
• analyzing and reporting customer survey data
• segmenting the market
• sizing the market
• scrutinizing the food chain
• creating channels of distribution
• surfacing competitive intelligence
• developing an unfair, defensible, and decisive competitive advantage

• realizing value from intellectual property through patents and technology licensing
• building strategic alliances
• guiding promotion motion
• guiding selling motion
• guiding support
• steering the enterprise

In short, all the tasks that fall to a Product Manager in developing and delivering a product to the market place.

In our discussions with hi-tech B2B companies in the Boston area, we have observed Marketing departments which are still staffed at levels 50% below where they were in 2008, while Engineering and R&D are down 10-15%.  At the same time, Management is turning to Marketing and asking for increased leads, new product launches and increased market share.

Suggestion – review Ralph’s work.  Discount it by 50% (i.e. Marketing expenditures, not including promotion and selling, should be 1.25% higher than engineering expenditures) to reflect the 2010 environment and just to be cynical.   Compare it to the ratio of Marketing expenses (less promotion and selling) to Engineering/Development expenses in your company.  Then look at the company goals for 2010 and 2011.  Are they in-line or is more investment in Marketing required?

If they are out of line, do you have a plan of action aimed at resolving this?  And no, cutting Engineering/Development expenses is not an option.

Shameless Plug: Fire Alarm Marketing offers a Marketing Health Check which covers the points that Ralph makes as well as a company’s overall strategy.  You can get the details here:  http://firealarmmarketing.com/marketing-programs/marketing-health-check/

RHM  6/24/2010

Earlier this week I was in a meeting where the conversation turned to behavior in meetings by attendees. In part, the conversation evolved from a recent article in the NY Times that highlights the issues about multi-tasking.  This article, along with others, reinforces the belief that multi-taskers cannot and do not do things as well as those who focus on the job at hand.

The discussion started on whether it is appropriate for those attending to use electronic devices (laptops, notebooks, blackberries, etc.) during the meeting.  Some felt it is disrespectful to the presenter, while others said that the devices were acceptable, based on the culture of the company or if being used to take notes.

One suggestion was to ban the devices, offsetting the ban by holding shorter meetings that follow a set agenda.  This was countered by those that hold project management type meetings where different constituencies need to be heard and that such meetings inevitably take time.

Most conferences that I attend have a hashtag, and attendees are tweeting about the meeting, presenter and weather during the course of the meeting, either using their computers or smart phones.  Obviously in these meetings, the organizers have decided that promotion on twitter is more important than focused attention on the presenters or panel.

So, on one side there are those feel that during a meeting the presenter or chair should get undivided attention, while others say that the culture requires immediate access, whether it be from their management or their need to access the Internet.

Another element that has crept into today’s meetings and conferences is the “back-channel” communication provided by the electronic devices.   Meeting attendees have been known to make comments about the presenter or other attendees, thru texting, email, or twittering, resulting in inappropriate smirks or giggles…comments which are oblivious the other attendees who are not part of the electronic group.

A conclusion that can be derived from today’s behavior is that you, whether chairing a meeting or presenting to a group, will rarely have the undivided attention of the audience.  Recognizing this beforehand, the key concepts that have been drummed into you are worth repeating:

For Marketing/Sales people:

• Tell them what you are going to tell them
• Tell them
• Tell them what you told them
• Keep it short
• Keep it simple
• Ask for the order
• Recognize that you will probably have to come back to do it again.

For those running a meeting:

• Follow a set agenda
• Never let a meeting go for more than a hour without a break
• Recognize that you are going to have to cover fewer things, and probably repetitively because attendees will not get it the first time.

The current “always-on” workplace seems to be counter-productive, driven by distraction and the inability to focus on work.  I hope I don’t appear as a Luddite, but my recommendation would be to manage the distractions to a minimum in order to improve productivity.

Your thoughts?

RHM  5/10/2020

First he/she must learn how to handle and then process the information overload.  This can be accomplished by following some basic rules, guidelines and disciplines.

1. Have and follow a simple well defined strategy.  Dick is fond of saying you can’t do anything without a strategy, which is absolutely true.  My favorite example is the US in WW II.  Our goal was to win the war.  The overarching strategy was to win in Europe first, then in the Pacific.  Everyone connected to planning understood this strategy and implemented plans and tactics in support.
2. Learn and implement the tools that are available with the new technologies.  Some examples are:
   1. Use filters and files that are available in your email application.
   2. Use an RSS aggregator like Google Reader to capture and present all the blogs that you are following.
   3. Identify key bloggers by using a key word searches that are specific to your area of interest, for example Google “Marketing Bloggers” and see how many hits Chris Brogan gets.  Google Human Resource Bloggers and see if “Punk Rock Human Resources” comes up.
   4. Learn how to use the search capability on tools like tweetdeck to find out what is being said, real time, about a subject.
   5. Use the time shifting, on-demand, tools that are available to learn (and relax).  This ability to absorb new information on your schedule is unprecedented, and allows you to plan and learn/relax at your schedule…giving you the information you need to in making decisions.  An added plus is that you can turn it off if it is not new or relevant, saving precious time.
   6. Use a smart phone and link it to your computer calendar so that you always have a calendar with you.
   7. The norm today is to go to a website to find the information needed. If it isn’t there the seeker quickly moves on. (Note that if your web site isn’t “user friendly” in providing information, then you have lost a potential sale.)

There are many other advantages that the new technologies offer; the point is to learn their capabilities and use them.

Second, today’s CMO must be more disciplined, more directed, in order to accommodate the influx of information.  Specifically,

1. In order to absorb all the information, adopt a strict discipline of how you deal with it. Some examples are:
   1. Discipline yourself to read your email only from 8:00 to 9:00 in the morning, or 3:00-4:00 in the afternoon.  What ever time you pick, stick to it.
   2. Blogs can be read at any time.  Don’t feel that you have to go through them all every day.
   3. Long ago, before there was an Internet, I worked with a person who emptied the paper in his inbox into the trash can every evening, without looking at the contents.  I asked him how he could do this…wasn’t he worried about missing something important?  His response was “If it is important, they will come and see me.”  That approach wouldn’t work today, but there are two take-aways.  (1) Much of what we deal with isn’t important, and (2) If it is, people will contact you directly.  My suggestion is to have a distinctive ring tone for your important people, (the boss) and let the rest bounce to voice mail.

Third, recognize the “speed” aspect of the information deluge, and work accordingly.  Today programs and plans are put into place in weeks instead of the months that were used 3-5 years ago.  Frequently CMOs feel uneasy about at the speed with which decisions are made, feeling that they don’t have enough information, even though they are drowning in it.  Today programs are planned and executed quickly.  Waiting for the “final” bit of information before reaching a decision can be fatal and doom a plan to failure.  The key is to plan and execute, and as the plan unfolds, adjust the course to meet the goal, as nothing ever goes as planned.

In short, use the technologies that are producing the ever increasing amount of information to assist you in processing it.  Doing so requires a new way of looking at the information, recognizing what is wheat and what is chaff, and perhaps adopting a new personal discipline in daily processing and learning   Use the information gained to execute your plans aimed at reaching your strategic goal, knowing that new information will cause you zig where you had planned to zag, in order to reach your goal.

In his book Too Big to Fail, Andrew Ross Sorkin describes in detail the financial collapse of 2008.  Among other things, it provides a good example of the information/technology/speed troika.  No-one involved in the decision processes had ever done anything like this before, nor did they have all the information, but they were driven to decisions by the speed at which companies imploded.  I strongly recommend it.

Is your strategy simple and well understood by all?  Are you using all the new technologies?  Are you handling information in a disciplined way?

RHM – 3/25/2010

In his recent post, Dick highlights the practice of Keep It Simple, Stupid (K.I.S.S.) as one of 5 key Marketing rules.  I fully agree both logically and based on experience.  Some examples:

Like many teenagers growing up in Pennsylvania, I played football.  I wasn’t very good, but the team was, going 27-2-1 during my three high school years.  As we weren’t the biggest team, our Coach used the Delaware Winged-T offense, which stresses mis-direction and angle blocking…and effectively neutralizes size differences.

Our playbook consisted of about 16 plays, 8 to the right, and 8 to the left.  This offense was taught in the middle school, so by the time players reached the high school they had 2-3 years of experience.  We never passed.

What we did do is practice these 8 plays over and over.  Everyone on the team knew what every team-mate was supposed to do on each play.  If he wanted, the Coach could swap a tackle for a running back, and both players would know what they had to do on each play.  Even today I can remember the blocking schemes.

Rival teams and Coaches knew our offense.  They saw it every year.  Why did we win?  One reason was that they play calling was simple.  Everyone knew what they were supposed to do.  And, we executed well.

Years later, I was involved with the roll-over of a first generation product, with a faster, more efficient, next generation product.  The market was built around standards, so discussions with buyers around performance quickly became esoteric and confusing…how can you be better if the transmission is governed by a standard was often the starting point of a conversation.  One advantage we did have was that our product did not have a fan while the competition did.  By highlighting and emphasizing this point, which was at the time the number one failure mode in equipment, we were able to maintain and grow our industry leading market share.

Lessons learned from the two experiences:

• Simple elements, executed well, leads to wins
• Sometimes the most obvious (size, performance) is not the key in driving for success (mis-direction? a fan?)
• You have to adopt your strategy to what you have…personnel or product

So, I fully agree with Dick.  Keep It Simple Stupid.  Find out what the buyer wants and fill that need with your product and service, clearly and simply communicated to everyone, both internally and externally.

Can everyone on your team articulate the number 1 reason why you are different and successful?  How clearly have you communicated this to your customers?

RHM 3/18/2010

Many liken business to war.  We “attack the competition.”  We “defend” our customers.  Our new product introduction will “gain a competitive advantage and kill the enemy.”

Going into the New Year there was a lot of rhetoric about the Great Recession; whether the economy is growing, and what to expect.  The TV talking heads, bloggers and analysts have had their say, often repeating what someone else has said or changing their opinion based on new information.

I found much of what was being said contrary to what I had heard or seen.  So, during the past last two weeks I went to the front lines and talked with multiple marketing colleagues, located in Eastern Massachusetts, about how they think 2010 will unfold.  Like front line solders, these people are fighting a daily battle with defined tactical goals, surprises and limitations. They have real life experiences to document what is going on.  These conversations have taken place in person and over the phone.  The companies represented range from a very small start-up to billion dollar multi-nationals.  The industries range from hi-tech to commodities and covered both products and services.

I covered 5 subjects: money/credit, customers, social media/networking, new product introduction and marketing functions obtained or offered as a service…function as a service (FaaS).

One of the most interesting finding was the commonality on some subjects.  I heard the same thing regardless of size of company, industry or offering.  The starkest difference, not surprisingly, was between young startups with no or few customers, and larger more mature companies with large installed bases.  Yet even here, there were commonalities.

The number one topic related to money, or the lack of it. I will discuss my findings on money/credit below.  Future blogs will cover the other themes.

The Lack of Money/Credit

Everyone I talked to bemoaned the lack of money; to carry out programs, launch new initiatives, upgrade capabilities, add headcount, etc.  While some were operating on budget numbers that were below 2008 levels, others were using OPM (Other People’s Money) to meet their goals and objectives.  Using OPM included scheduling late payments (beyond 90 days) to working with vendors to fund prototype models and deliverables.

In some of the larger companies specific product lines, which had promotional dollars in the past, are now included in corporate or “umbrella” campaigns, while in both large and smaller companies each component of a lead generation program is vetted on a strict ROI basis…resulting in fewer shows, mailings, etc.

It appears the dictum to “do more with less” has taken effect.  However, few of the front line troops that I talked to felt that they were really “doing more.”  They felt that they were, at best, holding their own and that the risks to their product, brand, image and market share is much higher today than 18 months ago.  Some quotes:

• “We are losing our differentiation”
• “Sales say the number of qualified leads is significantly below where it was even a year ago.  I agree with them but have no funding to change the process.”
• “I have no discretionary marketing dollars”
• “I spend all of my time thinking about the next 30-60 days…I don’t know what is going to happen in the second-half.”

My conclusion, biased as it may be by geography and small sample size,  is that the lack of funding is constraining marketing activity and will result in slow, minimal growth.  The “do more with less” approach has morphed into “hold your position, don’t lose any ground” position.  Flat “growth” from year-to-year has become the new measure of success.

There is no basis for extrapolating these findings to the economy as a whole.  Were I to do so, it would suggest that there are no marketing drivers in 2010.  Few, if any, companies are adding marketing resources, mounting new campaigns, or taking chances.  The tepid commercials during the Super Bowl seem to reinforce this thought.  And, without Marketing driving business, new economic growth will be slow and uneven.

I would be interested to hear about your experiences in operating to today’s tight economy.

Next up: Customers focus

Note that a core Fire Alarm Marketing service is helping companies direct their scarce resources for an optimum return.  Call if you would like to discuss how we can help you.

RHM   2/11/2010

The news this week from Wall Street is centered on the size of bonuses that will be paid to members of the financial services firms.  Putting aside, for the moment all the arguments that relate to the bonuses, I wonder if the Wall Street firms are aware of the reputational damage that is occurring to them in the digital world?

A quick look at #goldmansachs or #wallstreet bonuses on twitter, or the comments on the Goldman Sachs pages on Facebook illustrate how damaging the issue of the bonuses has become.  One rule of thumb is that for every complaint you hear there are ten that you don’t.  Using this scale suggests that there is a significant populist movement against the bonuses and by extension the firms that are paying them and their management.

If the bankers on Wall Street read and understand the printed and the digital out-pouring, they are faced with two options:

1. Ignore the public, continue with their plan under the assumption that this is what they have always done, and they need to continue to do it to maintain quality people.  If they choose this path they risk alienating a large, vocal segment, which may come back to bite them later in the form of decreased business, increased taxes, or stricter regulation.
2. Recognize the reputational damage that they are incurring and make changes (they have done so slightly by announcing that the bonuses will be paid mostly in stock…which may be even more valuable in the long run).  Here the voice of the populace is heard, and the response, while never providing 100% satisfaction, begins to restore the reputations that have been shattered.

Five to ten years ago the print and TV press would be leading and/or interpreting the issue of the Wall Street bonuses.   Today their role has diminished as bloggers, tweeters, and Facebook fans have taken to the digital world to vent their frustration, communicate with others and form communities.  The long lasting aspect of the perception of these communities has yet to be quantified, but as the bankers on Wall Street know banking is built on confidence, and once you have lost it, you are done…see Bear Stearns and Lehman Bros. as prime examples.

The lesson here is to understand the power of the digital environment and to make sure, as the responsible Marketing person, you are plugged into it.   This then allows you to work more effectively with management in constructing your messaging and positioning your firm appropriately.

Have you reviewed what people are saying about you and your products today?

RHM  1/14/2009

• The economy will range from flat to down.  There is the potential for an implosion in the commercial real estate market, as well as one in the credit card industry.  The fear of these collapses will force banks to continue their stringent lending practices, meaning that credit for small to mid-sized firms will be tight to non-existent.  Small to mid-sized companies drive employment and the lack of credit will hold their hiring down, resulting in the un and under employment rate ranging from 15% – 17% throughout the year.   All of these factors will negatively impact the economy. In short, the only difference between December 2009 and December 2010 will be that millions of people will have been out of work for well over a year.
• Being an election year, Congress will push out another “stimulus” program, be it giving $250.00 to Social Security recipients or sending more billions to the states.  Having learned that bailing out Wall Street and buying mortgage and car companies doesn’t stimulate the economy, Congress will go after votes by spreading money around.  However, the net effect of this new stimulus program will be minimal, in that most people who receive funds will use it to pay down debt.
• The communication and collaboration that the Internet and mobile devices provide will continue to drive business and personal decision making.  For consumers, reference sites like Yelp will drive their purchase behavior.  For businesses, the ability to learn about competitors and suppliers will shorten their product and promotion cycles.  As a result of these communication and collaboration technologies , all elements that are part of a business will speed up.
• Integrity and Transparency will rise to the top of Marketing efforts, as companies recognize that their reputation is more important than endorsements.  The Tiger Woods fiasco (on top of Edwards, Spitzer, Rodriguez, etc.) puts the nail in the coffin of “endorsement” marketing. Hearing/reading the comments of someone you trust, on the Internet, will become the key factor in every purchase decision.
• Simplicity will become a requirement.  Google, Apple and others have been able to take complex technologies and products and bring them down to the “my mother can do that” level.  Everything new will be more complex than the old, and being complex means that it needs to be made simpler to the user.  Companies that follow this path in 2010 (and on) will be successful.

What are your thoughts?  Are they different?  I would enjoy hearing about how you see 2010 unfolding.

And, if you need help in adjusting to the new speed of commerce or making sure your messaging is on point, give us a call.


RHM — 12/17/2009

In addition, several Iranians reported that they were ordered to log onto their Facebook accounts when going through Iranian passport control, sometimes resulting in the confiscation of their passports.  Others, living abroad, have reported receiving anonymous emails threatening them if they continue to post opposition comments on Facebook.

These activities and events are real-world extensions of the “reputational” effect that I posted last week, (Reputation and the CMO), and earlier this year, (Do You Know What They Are Saying About You?).  They also reinforce the need for the CMO to implement policies and procedures that help protect a company and to keep its reputation in a good light.  These include, but are not limited to:

1. Updating the corporate policy that details how social media comments will be addressed.  This should link to:
   1. An updated Acceptable Use Policy, (AUP) which covers all social media
   2. An updated Corporate Code of Conduct Policy
   3. The continuing training of all employees on AUP, the risks of social networking and data leakage
   4. The continuing communication plan to all employees, stating that the firm is monitoring social media as part of its investment in building and maintaining the brand and reputation.
2. Improving (establishing??) a monitoring system that examines all the social media; blogs, twitter, YouTube, etc. for mentions of your brands and employees.  This is much too important to be handled by the summer/winter intern; it should be someone’s fulltime responsibility.  A somewhat dated list of reputational tools is here.  A powerful inexpensive way to start is by using Google Alerts.
3. Acting as per the policy and procedure.  The key is to respond quickly to both positive and negative posts so that readers will know that you are aware and responsive.  Note how the lack of any response by Tiger Woods increased the interest surrounding his activity.

When reputational attacks can come from all sides, the CMO has to be prepared to addresses and rebut them as required.   As CMO are you prepared to deal in the social networking environment?  Is your management?  When the issue arises, will you be perceived as Tiger Woods or as someone who is control?

If you need help in constructing your Web 2.0 response system, give us a call.

RHM  12/8/2009

While all the facts are not known, the actions that contributed to the stories are real:

• People are social and like to share their activities with friends and family.  The Facebook, My Space and other social networking sites allow them to do this.

• Some people are less concerned about their privacy and activities than others, or their “friends” are, which results in inappropriate pictures and comments being placed on social networking sites.

• Employers, colleges and now perhaps insurance companies are using the content on social networking sites to evaluate people and make decisions.

This pattern of “investigating” or obtaining reputational information has extended to companies.  In today’s B2B environment it is common for people meeting for the first time to have conducted a “background check” of the other person by looking at their LinkedIn page, pipl, zoominfo, and/or a web site.  In addition, buyers and buying committees now take the time to review comments about new products, latest releases and companies before meeting with salespeople.  This background information allows the buyer to winnow down the short list to 2 or 3, condensing the process and saving time and money.  The buyer can also gain added knowledge about the products and vendor, providing an edge if there is price negotiation in the purchase process.

As the CMO, are you comfortable with your company’s reputation?  When is the last time you Googled your company or newest product?  Are you tracking and responding to what is being said about you in blogs, comments and other postings?  If not, why not?

Contact us to help answer these questions.

RHM  – 12/1/09

Today’s CMO needs to think about Clausewitz’s fog and friction when doing her 2010 planning.  For example, the CMO knows that the economy is poor (or terrible), and may be ready to rebound, but then again, maybe not.  She knows that she has to introduce two new products in 2010, with an understaffed department; products that management is counting on to drive incremental revenue and to gain market share.  She has to provide a greater number of high quality leads to the sales force, but her budget is flat for 2010 from 2009, which was down 40% from 2008.  What she doesn’t know is what the competition if going to do, what the economy is going to do, and whether the traditional selling cycle is going to be extended.  In other words….fog.

And, when discussing the January trade show, she just found out she has a smaller space, her on-hand exhibit won’t fit, and that a new exhibit will take 13 weeks….friction.

Listed below are some suggestions as how a CMO can overcome these hurdles in doing their 2010 planning.

• Have a goal.  Whether it is the number of new customers, percentage increase in market share, or increased profitability, have a goal, write it down and communicate it to all.  For career longevity, it should be the same goal as management’s.  Above all, agree on a singular goal.  The days of having dual goals of “increased market share and profitability” are gone.
• Have a strategic plan.  An over-arching strategic plan allows short-term tactical plans to be developed and implemented.  For example, in World War II the goal was to win the war, the over-arching strategy was to win the war in Europe first, and then the war in Asia.  This strategy drove the timing and development of everything, from landing craft and airplanes, to troop deployments.
• Develop tactical plans based on available resources and personnel.  Several elements should guide the development of these plans:
  • KISS – An Army acronym for “Keep It Simple, Stupid.”  Given the volatility of the variables, complex plans stand a higher risk of failure.
  • Communicate the plans to everyone.  The Product Managers should know all about the lead generation programs; the development engineers should know about the ad schedule; management should know about the newest social media rollouts, etc. etc.
  • Delegate decision-making responsibility to those accountable for doing the work.  In most cases, the Marketing department is spread too thin and events are moving too quickly.  The CMO who insists upon reviewing and approving all actions and changes, dooms the execution of tactical marketing plans, especially when working with social media.
  • Be flexible.  Something is not going to work, and the competition is going to do something unexpected.  Make sure that your tactical planning is flexible enough to allow for quick, last-minute changes.  This does not mean a switch of goals or strategy, but rather a move to different tactics. (One way to keep abreast of competitive activity is to monitor them via social media tools.  This is also a great way to keep current on your reputation.  Are you doing this?)
  • Measure.  For each tactical plan, set targets and measure progress against these targets.  Use the combined results from all the tactical plans to measure achievement against the goal.

Those who have read my earlier posts, here and here, will recognize that I would set down the following for Bob’s Tool and Die:

Goal – Highest customer satisfaction as possible

Strategy – Nurture the installed base of customers, and then seek new customers

Tactics – Continue to use those tools that work now, and introduce new ones as time and resources permit

2010 is going to be a very difficult year for Marketing.  CMOs are going to be asked to deliver more, with less, in a very uncertain economy.  Understanding and planning with the knowledge that “fog and friction” exist should give the CMO an edge in meeting expectations.  Echoing Clausewitz’s thoughts regarding uncertainty, General Eisenhower reported that he learned early in his Army career that “plans are useless, but planning is everything.”

Where do you stand relative to your 2010 marketing plans?  Where are you going to get help in handling the “fog and friction” that are going to occur?

RHM  10/27/2009