Apropos of Marketing and Life

Thinking of What Can Be

2009-02-24T08:00:00.000-08:00

Micron just announced plans to lay off another 2,000 workers by August - yet another item in a long series of bad economic news. Wow, it can make you feel down if you think about it too much.

All of this turbulence and change is bringing the focus on an important issue:

Most people think in terms of what was. Some people think in terms of what is. And a few think in terms of what can be.

In stable and bouyant times, it is often good enough to simply do what worked before. This is thinking in terms of what was. You can usually get by with that, but not in these unstable times. The people who survive and even thrive will be the ones who spot and seize new opportunities. Because the same forces that are shaking and hindering the old institutions and old ways are also opening up new cracks and fissures of opportunity.

Here is the key: Keep moving, scanning the situation in front of you, and pounce on any new openings and possibilities that arise.

This is a marketing blog, and marketing is a key part of seizing opportunities. You have to spot them (call it market analysis). You have to sell your service or product or idea. This requires a clear, distinct, relevant message and a sense of who your audience (i.e. target market) is. Then you have to communicate it. Yes, marketing plays a role.

But most important is to acknowledge the evolving situation and think in terms of what can be. When this storm passes, the people who will be in actually a better position than before are the ones with this mindset. For them, this is all opportunity.

The Opportunity We Have Right Now

2008-12-04T21:07:00.000-08:00

The previous post was about how to market in an economic downturn, and it emphasized keeping a keen eye out for new opportunities. Well, I think I see a window of opportunity for those of you in sales and marketing – something you can seize upon right now.

You have undoubtedly noticed how the wheels of commerce have slowed way down recently. Companies are cutting budgets or just not spending. Investments are deferred. The world seems to be taking a "wait and see" approach in this tumultuous economic environment, like a temporary paralysis.

So what are people doing while they wait and see? After following up with some prospects yesterday, I realized the answer is not much, or certainly less than they were six months ago. People aren't as busy, so they have time to chat and respond. If you are in sales, you know how important it is to make connections and build rapport. It's part of the sales process. What better time to do it than when people aren't busy and have time on their hands.

Even if you don't make the sale today, when things pick up again, which they eventually will, guess who will be top of mind?

P.S. Don't hesitate to forward these posts to your friends and colleagues. The more readers, the merrier!

P.P.S. The next Apropos Marketing Foundation Workshop is scheduled for February 17, 2009. Sign up here!

How to Market in a Downturn – The Story of Chester Bowles

2008-11-24T13:53:00.000-08:00

I started reading The Best and the Brightest by David Halberstam, a historical account of the Vietnam era. One of the many political personalities who emerges in the story is Chester Bowles, a state governor and congressman from Connecticut who played a minor role in the Kennedy administration and, incidentally, was opposed early on to involvement in that conflict.

Chester Bowles came from an established New England family, studied at Yale and founded an advertising agency called Benton & Bowles with his partner Bill Benton. While they started the venture with meager resources, it was quite successful and Bowles became a self-made millionaire, back when a million dollars meant even more than it does today. To me, the most interesting aspect of the story is the date when they founded the agency. It was July 1929. Three months later the great stock market crash of October 1929, known as Black Tuesday, occurred. This was part of a chain of events that led to the Great Depression and a nearly decade-long economic downturn. It was the worst our country has experienced.

Yet it was in this environment that Bowles achieved his entrepreneurial success. The book does not say much about how he did it, except that large companies "were ready for a change, any change, in the early days of the Depression."

Which brings me to the topic of this post – how to market in a downturn. The glib answer is you market in a downturn the same way you market in an upturn, except with one key distinction: Keep a keen eye out for new opportunities. Dark clouds have silver linings, and tumult and chaos open doors that otherwise would not crack. So find and seize your opportunity and, like Chester Bowles, you may encounter a great fortune in the worst of times!

P.S. If you want to kick-start your sales by developing the two most important marketing elements for your business – in a mere three hours – then I have good news. The next Apropos Marketing Foundation Workshop is scheduled for February 17, 2009. "The practical info was great. It was helpful to actually work on the statements and ideas in class," said a recent attendee. Check out the details and sign up here.

Distinguish Between Feature and Benefit

2008-10-17T10:00:00.000-07:00

It's important to distinguish between features and benefits, because customers care much more about benefits. In fact, benefits are really what sell a product.

A feature is a charactesristic of a product or service, and a benefit is the need or desire it satisfies for a customer.

To illustrate, let me ask you a question. What is the last thing you purchased and why? Your reason why may point to a feature or benefit. But ask yourself why once more, and you will surely be stating a benefit.

The last thing I purchased was a "sunrise muffin" at Big City Coffee while driving home after picking up my 15-month-old daughter at daycare. The muffin has raisins, coconut and sunflower seeds and appears to be made of whole wheat. It is moderately sweet. Those are all features. So why did I buy it? Because I was hungry and the muffin tastes good and is reasonably healthy. I also fed some to my daughter so she would be happy and not fussy while riding in the back seat. So the benefits are (1) satisfy hunger, (2) enjoy taste, (3) be healthy, (4) make baby happy and (4) enjoy peace and quiet in the car. All for $1.95!

The features focus on the muffin, while the benefits focus on me.

The best marketing is about the customer, not necessarily the product, not ultimately. It’s about them. Because the goal of marketing is to influence people to buy a product or service. And why do people buy? To satisfy a felt need or desire. This desire drives the purchase. The product is a means to satisfy it. So the purpose of marketing is to make a connection between the customer’s desire, whatever it may be, and your product. This is why it is so important to emphasize benefits - they are your customers' needs and desires.

P.S. The next Apropos Marketing Foundation Workshop is Feb 17, 2009. See the top 10 reasons why you don't want to miss this workshop!

Reasons to Believe

2008-09-30T08:00:00.000-07:00

Let's say you have a product or service you want to sell. And you have figured out the main reason why a potential customer would want to buy it. In other words, you understand its essential benefit. Now you want to get the message out!

The challenge we face at this point is overcoming the Credibility Gap. People are naturally skeptical and won't necessarily believe when someone says, "My product is great and offers this wonderful benefit!" They have to be convinced, because people want to feel they are spending their money well and making a good decision.

The way to overcome this natural resistance is to provide reasons to believe. I'll give an example:

Let’s say someone walked up to you and said, "I have a new restaurant that offers the best Italian food in Boise." Would you believe him?

What if he added, “The chef previously worked for a 4-star restaurant in San Francisco.”

And furthermore, “All of our pastas and sauces are hand-made on site.”

And what if you mentioned this new restaurant to a friend and she said, “Oh, I’ve been there. It is the best!”

At what point would you believe?

The claim was to have the best Italian food, and what followed were reasons to believe. The last one is an example of a testimonial. Testimonials can come from people you know (these are especially effective) as well as from satisfied customers, the media or recognized experts.

In fact, there are five different ways to provide reasons to believe and all of them work. If you are interested in learning more about them and would like a chance to write a couple "reasons to believe" of your own, then join me at the Apropos Marketing Foundation Workshop. It will be held on two dates this fall, Oct 29 and Nov 5. Be sure to register online.

Happy messaging!

Everyone Has a Message - Is Yours Sharp?

2008-09-05T08:00:00.000-07:00

I just visited the websites for the two major presidential candidates, Barack Obama and John McCain. They both have a message for you, the American electorate. I won't repeat it here because you will hear it again and again over the next couple months. Their messages are different, and both clearly hope you receive theirs and vote accordingly.

The stakes are high indeed. The effectiveness of their message, and how well they deliver it, will determine who assumes the most powerful executive position in the world, and who goes back to the Senate. It will determine who gets to directly shape America and the broader world, and who has to retire to the sidelines. Knowing this, I am sure both candidates have thought long and hard about their respective MESSAGE.

Obama and McCain aren't the only ones with a message. In fact, everyone has a message. Whether we are selling a product, advocating a cause or proposing an idea, we all have a message to deliver and hope we can do it in a way that other people understand and receive. An effective message is like an arrow with a sharp tip that flies true and sticks in the target. On the other hand, a less-effective message is like a soft Nerf arrow with a rounded tip that often bounces off or misses the target. So, is your message sharp?

If you're not sure, or if you would like to hone your message, then I have a solution for you: The Apropos Marketing Foundation Workshop, which will held on two dates this fall, Oct 29 and Nov 5, at George Fox University (Boise site). This is a 3-hour, roll-up-your-sleeves workshop where I will lead you through a process for creating an effective message, as well as selecting a target audience who is likely to respond. Who should attend? Business owners, managers, sales and marketing professionals - anyone who wants to accelerate their sales and marketing towards business growth. And hit a bull's-eye!

To make sure this event remains dynamic and interactive, the number of attendees is limited to 20 per workshop. So if you would like to attend, please register soon. Click here for more details and to sign up online.

Happy messaging!

Be Green, Save Some Green, Don't Feel Green

2008-07-21T16:00:00.000-07:00

It is officially hip to be green. You have probably noticed how advertising is peppered with environmentally-conscious claims, from organic foods to energy-efficient buildings to fuel-efficient vehicles to recycling and composting to renewable energy sources to land conservation to buying carbon credits that offset our consumption. Being green appears to be good business.

However you might personally feel about global warming* or recycling or organic vegetables, the Green Era is here and will have a major impact on society. And major trends usually play out in this way: First there is a buildup that accelerates to a peak of buzz and excitement, followed by a trough of disillusionment that eventually moderates into what you might call "long-term, realistic expectations."

If you ask me, we are somewhere around the peak. So what comes next is the trough of disillusionment when people become a bit jaded and cynical from hearing so much about being green.

This means we should be careful with our advertising and make sure green claims will stand up even during the period of disillusionment. To do this, I recommend tying green claims directly to how it will help people save money or improve their health and lifestyle. For instance, a fuel-efficient vehicle saves commuters upmteen dollars per week or organic milk avoids exposure to hormones and antibiotics. People will always care about their wallet and their health, so you really can't go wrong here.

The bottom line is: Be green (environmentally conscious) by helping people save some green (money) or avoid feeling green (sick), and you have a marketing message with a green (color) light to go!

---
* As Stephen Colbert put it, "I believe global warming is real because Al Gore's film made money."

Make 1,000 Mistakes - Part 2

2008-06-30T12:00:00.000-07:00

"I have not failed, I've just just found 10,000 ways that won't work."
- Thomas Edison, inventor of the electric light bulb and phonograph

In part 1 of this post, I suggested an alternative formula for success: If you want to achieve anything new and great, you must make 1,000 mistakes.

I say this based on my own experience, though I am certainly not the only one to observe this pattern. Thomas Edison believed it, as you can see from the quote above. And be glad he did, because everyone reading this post is probably sitting in a room illuminated by a light courtesy of his discovery.

I am also talking to myself as I write, but you are welcome to listen to the conversation.

If there is something you have never done before, or even better if no one has done it before, the process to achieve it is unknown. There will be discoveries you must make and skills you must learn along the way. Forces and events beyond control will play a role and, as a wise person once noted, time and chance happen to us all.

There is one thing we do know: Along the journey and especially before making discoveries and acquiring skills, we will make many mistakes. Maybe 10 or 100 or 1,000 or 10,000. This is just part of the process. Sometimes we can't know what to do until making the error and seeing the problem. Because real life is not as simple or deterministic as the magical success formulas imply.

This is why we must make 1,000 mistakes to achieve anything new or great. What matters is identifying mistakes, correcting them and moving on. The faster, the better. This is where a little humility and a lot of perseverance make all the difference.

They don't teach you this in school or in many business environments and social circles where mistakes are frowned upon. Consider the grade system. If you make zero or almost no mistakes, then you are wonderful and get an A. If you make just a few mistakes, you are pretty good and get a B. If you make several mistakes, you are so-so and get a C. If you make many mistakes, you are suspect and get a D. If you make too many mistakes, you fail and get an F. The focus is on minimizing mistakes. By this measure, Mr. Edison must have been a big failure!

But entrepreneurs, artists and visionaries know that mistakes are the pathway to learning and achievement!

So if you are trying to do something new and great - whether marketing a product or growing a business or building a life - and find yourself making many mistakes... Good for you! Smile and keep going and know you are in good company.

Make 1,000 Mistakes - Part 1

2008-06-27T08:00:00.000-07:00

The front cover of the latest issue of Fortune Magazine states, "Retire Rich, 50 Great Stocks and Funds." On it is a picture of an older man with gray hair holding hands with a beautiful, young woman of about 30, standing on a sailboat in an exotic, warm location like the Caribbean.

The implied message is: Invest in these sure-fire stocks, and you too can have a 50-foot sailboat, a great tan, free time and a trophy wife half your age.

I don't know why, but the standard way to educate people or dispense advice now is by promising magical, guaranteed formulas for astronomical success. This Fortune cover is just one example. Walk down the business, self-help or magazine aisle at Barnes & Noble and you will see many more. Follow these 4 steps or buy these 50 stocks or do these 8 things and - like a genie popping out of a bottle - your wildest dreams will materialize. While there is insight and good advice in many of these materials, the packaging leads people to believe they are sure-fire, trouble-free programs, like a magical elixir or fountain of youth. They promise too much, on one hand, and oversimplify on the other.

So I would like to offer an alternative formula for success, whether in marketing, business or life: If you want to achieve anything new and great, you must make 1,000 mistakes. The faster you can make those 1,000 mistakes (and correct them), the faster and more likely your vision will materialize.

In part 2 of this post, I'll explain what I mean...

P.S. Tip of the hat to Brian Fretwell at Defining Victory for a conversation that inspired this post.

Solving Your Customer's Real Problem

2008-05-28T10:41:00.000-07:00

Earlier this year I met with a man who had been president for 8 years of an innovative, fast-growing computer company in Silicon Valley. He was transitioning into the role of co-chairman, which would mean less involvement in day-to-day operations and more advising and coaching. For me it was a great opportunity to talk with an experienced, well-respected business leader and maybe learn something.

Heading to the meeting, I felt a little nervous. But I put on my game face and walked through the door. The man sat comfortably at a large conference table and an assistant, notepad in hand, was at the other end. After shaking hands and introducing myself, I sat down. He asked what I thought about their new products and marketing initiatives. In general I was enthusiastic and told him so. He asked if I saw the issue of green computing coming up frequently in the market. I said yes, though it seemed to be an economic issue, of wanting to save on electricity, equipment and space. "Hmm, I think so too," he replied.

We talked about sales and his philosophy for connecting with potential customers. He related a story about a speech he had delivered in Israel. He said he did not talk at all about the company's products, but rather how his company had weathered the technology downturn after the dot com implosion. The company was selling primarily to dot coms, and when many of them failed, they were left with far fewer customers. A natural reaction would have been to cut back, hunker down and try to wait out the storm. Instead the company invested heavily in developing new products and selling into new customer segments. They went "all in" instead of playing conservatively.

The market eventually rebounded and the company was positioned to accelerate past its competitors, which it did. Major revenue growth followed. The gutsy, counter-intuitive strategy proved to be exactly right. Today it is the fastest-growing major company in its industry.

People were so impressed with the story that they came to talk to him afterward. Some even expressed interest in doing business with his company - without any sales pitch at all. At this point in our discussion, he leaned over, lowered his voice as if about to betray a secret and said to me, "You know, you can really make any technology fit... The important thing is to have credibility that you can solve the customer's business problem."

Technology did not matter!? Such a statement was heresy at a company full of engineers who prided themselves on creating breakthrough technologies. Perhaps he exaggerated slightly, but he was saying something important about sales: What matters is having credibility in the customer's eyes that you can solve their real problem. His story demonstrated to the business people in the audience that he knew how to make a business succeed in tough times. They could relate. Moreover, those people do not buy computer technology for its bells and whistles, but because it can solve a business problem like improving productivity and growing sales. So why not buy from someone who really knows how to do those things?

Your Message - Clear and Direct

2008-04-24T11:40:00.000-07:00

Consider the following marketing slogans:

The California Milk Processor Board asks, "Got milk?" Wow, that is about as clear and direct as a marketing message can be.

The food company Mars says about its famous Dove Bar, "Silky quality chocolate wrapped round delicious ice cream. What could be better?" Mmm, that sounds clear, direct and tasty.

The business consulting firm Accentures states about what it takes to be successful: "High-performance businesses continually balance, align and renew the three building blocks of high performance, creating their competitive essence through a careful combination of insight and action." Hmm... That message is abstract and complicated. I'm not entirely sure what it means. Do you?

To be fair, it is much more difficult to write an effective message for a high-level consulting firm than an ice cream bar. But Accenture nevertheless violates the #1 rule of messaging: Be clear and direct, even to the point of obviousness.

The world is busy and frenzied and people have too much information coming at them all the time. We are lucky to get 3 seconds of someone's attention. Therefore a marketing message should get right to the point. It should jump off the page and say what it means. BOOM! There it is.

Emphasize only 1 or 2 primary benefits of your product and ignore the other dozen secondary benefits, at least in your initial impression. (If you have an interested client or a captive audience, perhaps you can elaborate.) Resist the temptation to say too much. The effectiveness of a message steadily declines with each additional benefit you include over 2 because the message becomes diluted and does not leave as strong an impression.

When it comes to writing an effective message, ambiguity and long-windedness are sins, while clarity and directness are virtues.

Your Message Is an Arrow

2008-04-18T12:00:00.000-07:00

As noted in the previous post, the first priority in marketing is to develop an effective message explaining your benefits. I would also add selecting a target audience who is likely to respond. These two elements – message and target market – are your marketing foundation. They support and extend everything you do to reach out and win customers. In fact, having a solid message and well-defined target can literally double or triple your product’s chances of success! It makes a significant difference.

If your message is an arrow, think of it as having two parts. The tip of the arrow is your essential benefit, the main benefit your product or service delivers to customers. The shaft and feathers are reasons to believe or points that build credibility. A good message has both because an arrow without a tip does not stick, and a tip without shaft and feathers does not fly far or true.

In the next post we will look at the most important characteristic of an essential benefit – being clear and direct.

P.S. For a sneak preview of a roll-up-your-sleeves workshop for creating a message and target market (planned for fall 2008), click here.

Message in a Bottle (And Which Matters More)

2008-03-05T16:30:00.000-08:00

The marketing process is like sending a message in a bottle. You write a note on a sheet of paper, slip it into a bottle and cork it. You walk up to the water's edge and throw it into the vast sea. What happens next is a mystery. Where will the tides and currents take it? Will someone find the bottle? Will they respond to the message? One can only hope.

In this analogy, the message is how you express the essential benefit your product offers. The bottle is the communication channel through which you send the message, such as print advertising, radio, Internet and even direct sales.

Here is the million dollar question: Which is more important, the message or the bottle? The truth is that as long as the bottle is watertight and floats, the message will travel. It can be a milk bottle, wine bottle, empty bottle of Snapple or whatever.

The message determines whether the recipient will respond. If the note said, "Hello, my name is Joe and I live in Seattle and I hope you are well," then the recipient might be amused but would not think much of it. If the note contained the number and password for a bank account containing $10,000, the recipient would be interested and probably check it out.

The message is 10 times more important than the bottle.

I say this because there is a tendency to think marketing is about where and how often to run ads - this publication or that Web site. Yes, this is a part of marketing, and it matters, but the message comes first. A clear, relevant, well-defined message can double or triple your chances of success. In business. Period.

The message reigns supreme. Stay tuned. In future posts I will discuss what makes a message great.

In Marketing, First Develop the Fundamentals

2008-02-22T15:36:00.000-08:00

A person who wants to play basketball starts by learning the fundamentals - dribbling the ball, passing and shooting. Everything else in the game builds upon these skills. To form a team, run plays and win games, the players must first know these fundamentals. Great players excel at them, and are usually tall and fast!

Like basketball, the game of marketing involves a set of fundamentals:

• Target market – the specific group to which you sell
• Positioning – the unique value your business offers
• Messaging – the words used to express your unique value

Taking the time to thoughtfully define these elements will accelerate your sales and business growth. It will make a huge difference in how well you play the game!

To learn more, download this tutorial:

http://www.aproposmarket.com/MarketingFoundation.pdf

Sell the Experience

2008-02-20T07:34:00.000-08:00

While skiing this winter, I stood at the top of a snowy ridge and took in the panorama. In the distance stretched the deep blue Lake Tahoe. The peaks, ridges and forests of the Sierra Nevada Mountains surrounded it as far as the eye could see. The day was bright and sunny, warm enough that I did not need a hat or thick coat, like spring in February.

My ski partner dropped over the edge and cut back and forth down a steep slope. He maneuvered between two rock outcroppings and into an open area below. I looked down over my skis and felt a shot of adrenaline and fear in my gut. It was my turn.

That is the beauty and the thrill of alpine skiing. When I purchased a lift ticket that day for $57, I was not thinking of chair lifts, cables, electric motors and ski patrollers on the mountain. All of those are necessary to run a ski resort; they are the "product" so to speak. But I was thinking of the beauty and the thrill - the essential ski experience. That is what I paid $57 for, and it was worth it!

When marketing a product or service, remember to emphasize the finer points of the experience it delivers, which may be different from the technical features of the product itself. For instance, when selling a computer system, focus on the ease of management and how it enables workers to be more productive, as opposed to the number of megahertz and gigabytes it has. When selling a tree at a nursery, emphasize the cool shade it will provide during summer and the elegance it will add to a property, as opposed to whether the tree is 3 or 4 feet tall.

There is a time and place for selling features, but people ultimately are buying the experience.

May the Little Guys Prosper!

2008-02-12T17:20:00.000-08:00

During the run-up to the recent Super Bowl, I heard football fans express sentiments like, "The Patriots are too good. Too dominant. I'm rooting for the Giants!" These fans were rooting for the underdog.

People, especially Americans, like to root for the underdog. Something in our nature wants to see the couragous, spirited Little Guy triumph over the swaggering, domineering Big Guy. It warms our hearts and makes us feel like there is justice in the universe. Maybe this notion traces back to when the downtrodden American colonies decided to throw off the tyranny of King George III. "No taxation without representation!" The Americans declared independence and fought a long, hard war to earn it. At that time, England was the superpower and America was the underdog. The idea that David can - and sometimes should - bring down Goliath is now embedded in our national culture and mythology.

So if your business is the underdog in a market, don't hide it. Play it up and tell people how you are the spirited upstart bringing much-needed change and a better way to meet customers' needs. Tell them how you are taking on the Big Guy who has become lazy and indifferent. The people will root for you because you are the underdog.

Here's to the Little Guys. May you prosper!

If Everyone Else Zigs, You Should Zag

2008-01-28T22:50:00.000-08:00

A few years ago when fast food restaurants were updating their menus with light, healthy fare like salads and turkey sandwiches, Hardee's Restaurant went in the opposite direction. It introduced the Monster Thickburger, an enormous sandwich with two beef patties, bacon, cheese and mayonnaise on a buttered bun. It costed $5.50 and weighed in at a gut-busting 1,420 calories. The press release boasted it was a "monument to decadence." Nice! And you know what? It was a huge success that helped turn around the restaurant chain.

There is something to be said for taking a contrarian position. It is the fastest and most direct way to stand out from the crowd. The natural inclination of most people is to do what other's do in the pursuit of success. Follow the beaten path. But the contrarian looks at where the crowd is going and says, "Let's go the other way." It takes courage to do that; it is risky. Others may look at you, shake their heads and wonder. That's strange. That is, until you succeed and then they will be envious. Why didn't I think of that?

The path of the contrarian is wide open to anyone. It just takes a little creativity and a lot of guts. Since success in marketing is largely about standing out from the crowd, the contrarian has a distinct advantage here.

So if everyone else zigs, why not zag?

Marketing and the Herd Instinct

2008-01-21T15:44:00.000-08:00

I often spot mule deer when running or hiking in the Boise foothills. Once I watched a herd of eight or ten deer bound quickly across a field and up a hillside. They leaped over a barbed wire fence without breaking stride. When they turned a corner, the animals moved in tight formation, as if each knew the exact path the group was taking. It was exciting to watch the herd in action.

People also have something of a herd instinct. We prefer to be part of a group and move with it because it feels safe and natural. Moving in directions apart from the group feels risky or dangerous, and we hesitate.

This instinct explains a lot about buying decisions. For instance, given the choice between eating at a restaurant bustling with customers and a mostly empty cafe, which would you choose? Most would pick the busy restaurant, if for no other reason than everyone else is there. There must be a reason, right? Many people prefer popular brands from leading companies because, well, they're safe choices. Recommendations from friends and family carry weight (i.e. "You have to see this movie!") because they come from someone in our group.

Smart marketing recognizes this instinct and gives people reasons to go along with the group - and purchase their product! I heard of a start-up ad agency that wanted to impress a potential client, so they hired a temporary assisant to walk back and forth outside the meeting room, sending faxes, making calls and generally looking very busy. The message it sent: Other people use this agency, so maybe you should too.

I am not suggesting you be so tricky! But here are some marketing techniques that flow with the herd:

Testimonials and customer case studies - Shows that other people bought your product, liked and benefitted from it
Encourage customer referrals - Friends recommending to friends is very influential
Awards and accolades - Demonstrates that other people recognize the greatness of your product
Press coverage - Press has an air of independence and credibility, like the voice of the mainstream

The Precious Few

2007-12-28T14:25:00.000-08:00

I once sat down with an energetic, younger chiropractor who was anxious to grow his practice. I asked how he brought in clients, and he showed me an impressive list of about 20 marketing activities. Even better, he tracked the exact percentage of client visits that came from each source. He knew what percentage came from referrals, print ads, radio ads and so forth. This was a businessman who took his marketing seriously.

As you might expect, more than 80% of his office visits came from the top 3 or 4 sources, which included repeat visits from existing clients, client referrals and the office sign that was posted on a busy boulevard. He asked for my impression of his overall marketing effort. I suggested the smartest thing he could do is focus. If radio ads brought in only 0.8% of client visits, why bother? Spend that money instead on one of the top 4 activities that clearly are working and bringing in many clients. For instance, institute a referral program to encourage more of it. Call on clients that have not visited in a while and find out why. In other words, focus your resources on the precious few activities that yield the best return on investment.

By the doubtful expression on his face, I don't think he liked the idea for fear of losing potential clients from the other sources. But a better question might have been how many clients was he losing by not focusing on the most profitable activities? By way of analogy, if a person could put money in a bank account that yielded 5% interest or another with 20%, which is better?

In a previous post, I wrote about focusing on the precious few (a.k.a. the 80/20 rule or Pareto principle). This idea applies to marketing, yes, but also to business and life in general. What a relief that we don't have do to everything! Life is already busy and complicated. It is enough to focus on the precious few things that really make the difference.

To a Bright and Great 2008

2007-12-25T10:01:00.000-08:00

'Tis the season when winter's coolness fully arrives, the days are short and everyone looks to the holidays for a little warmth and cheer. It is also the time when we look back wistfully at the passing of another year. Wow, there it is and there it went! The changing of the calendar year feels significant, like a bell tower that rings out the grander cadence of life.

But this is also the time to look forward to the year ahead. Some like to make plans and New Year's resolutions. More power to them! Others like myself just want to put on sunglasses as we face forward, because it's going to be a bright 2008. Have a truly great new year!

Marketing on the Razor's Edge

2007-12-15T16:37:00.000-08:00

While at the grocery store, I tried to find a general-purpose toothpaste, a box that said something like "Regular Mint Toothpaste." But there was nothing like that on the shelf. All the toothpastes were specialized! Each had a label proclaiming some unique benefit:

Extra Whitening
Luminous
Breath Strips
Tartar Control
Anti Cavity
Pro Health
Sensitive

The Crest brand alone had umpteen different varieties. Then it occurred to me that the toothpaste manufacturers understand an important marketing concept:

The more focused and specific a value proposition, the better chance of selling.

By offering a variety of specialized formulations, the manufacturers sell more product in the end. While all customers want to brush their teeth, some also think, "I wish my teeth were whiter," or, "My breath could be fresher." They get hooked by these special formulations, and the sales add up. Now it appears the manufacturers don't even bother to offer a general-purpose toothpaste. It might require more work and cost to market so many varieties, but the strategy works.

I find the temptation is to think, "I want a catch-all product and message because I don't want to miss any customers." But actually the reverse is true: You will miss customers if your value proposition is not specific enough. It is not possible to be all things to all people, and the modern marketplace rewards specialization.

In short, meeting a specific need through a focused product and message is always an easier sell. Call it marketing on the razor's edge. Or in this case, the toothpaste's bottle.

P.S. Tip of the hat to Lance Teel at S1 for raising this issue with me recently.

Simplicity Is The New Sophistication - Part 2

2007-12-03T16:36:00.000-08:00

As an illustration of simplicity, visit the web sites of Yahoo and Google. Both are Internet search engines with additional services like news, maps and e-mail. Their revenue comes from selling advertising for the millions of eyeballs attracted to their web sites. However, the look and feel of their home pages are very different:

Yahoo has 3 advertisements, about 80 links and numerous graphics.
Google has no advertisements, 17 tersely-labeled links and no graphics except their logo. It is mostly white space.

Which search engine is easier to understand and use? I think most people would say Google. Which attracts more Internet traffic? Google, many times over. If you look at its market cap (the total value of all Google's stock), it is $212 billion or 6 times more than Yahoo. Google is more successful than Yahoo, by any measure. A simple and clean presentation may not be the only reason, but it is clearly working for it.

Another example would be a car or home stereo compared to an Apple iPod. Both are music players. The stereo has a full panel of dials, buttons, knobs and levers, though most people do not bother to learn what all of them do. The iPod, on the other hand, features its trademark round disk with a button in the middle. It has pleasing lines and a minimalist, intuitive interface. The iPod has become a virtual fashion accessory. Here again, simplicity works.

In our modern, complex world, the challenge for all of us is to be simple - in our products, marketing and even way of life. Simplicity does not mean dumbing things down or making them boring. Not at all! You can have simplicity with color, excitement and pizzaz.

Simplicity is distilling ideas to their essence and portraying them in a clear, straightforward manner. It is being easy on the eyes, ears and mind. It is concentrated communication. No noise, clutter and frills. Simplicity is the new sophistication!

Simplicity Is The New Sophistication - Part 1

2007-11-27T09:40:00.000-08:00

Have you ever walked down the street in New York City? It is breathtaking. Thousands of people walk along the widewalks, dressed and looking so differently and even speaking different languages. The wide boulevards are crammed with buses and taxi cabs. The air smells of exhaust, grime, food and perfume from passersby. All around you tall buildings touch the sky. Giant billboards displaying expensive watches and attractive models vie for your attention. Near Times Square, they mesmerize with blinking lights and glowing digital screens. It's Broadway, Wall Street, Greenwich Village, Chinatown, Little Italy! New York envelopes and draws you into its bigger-than-life. Nothing else is quite like it.

New York is also a metaphor for modern life. It is big, bold, complex, everywhere and overwhelming. You can't escape it - not for long - and it forces your total engagement.

In a New York City world, what kind of advertising stands out and captures people's attention? Is it the audacious, flashy, in-your-face billboards of Times Square, ever trying to outdo what came before? Perhaps. Many people think so and much marketing rolls down that noisy path. But let me ask you this: In an overstimulated and overwhelmed society, do people want more of the same? Or do they really crave the exact opposite of the New York City world? Something that settles and pulls them back into balance.

You can make a strong case for the latter - for advertising that is simple instead of complex and soothing instead of overbearing. Here is another way to put it: Simplicity is the new sophistication and serenity is the new excitement. If your products and marketing reflect these values, they will be different and stand out, and people will be drawn to them, like bees to honey, because they offer a welcome respite from the New York City world!

To Make a Point, Tell a Story

2007-11-20T19:50:00.000-08:00

Think of one or two presentations you recently heard. What do you remember about them? Here are some things you probably do not remember: lists of bulleted items, flashy slides or catchphrases like "seamless" and "paradigm shift". Assuming you were awake, what you probably remember is a story. Maybe the presenter shared a personal experience or an interesting customer anecdote. Somehow that embedded in your mind and became what you took away.

Isn't it funny that the ways we are "supposed" to present (i.e. slides, bullets) no longer have the intended impact. Perhaps these tools have become cliche - worn out from overuse. But a good story never becomes cliche. People relate to stories. They connect with our life experiences.

So if you want to make a point, tell a story.

The 80/20 Rule Applies to Marketing

2007-11-05T10:52:00.000-08:00

I am a big fan of efficiency. Not all the time, mind you. If I am hiking in the Sawtooth Mountains or having a drink with friends, I just want to enjoy the moment. But when it comes to solving a business problem, I want achieve it with as little time, effort and expense as possible. Life is too short to do otherwise.

That is why I like the 80/20 rule. Also known as the Pareto principle, this rule of thumb states that 80% of the outcome is due to 20% of the causes. It is one of those statistical patterns that generally holds true in life, whether you're talking about science, business, athletics or anything else. For instance, I bet 80% of your business revenue comes from 20% of your customers, plus or minus a few percent. Take a look - you'll see!

The 80/20 rule also means that a precious few marketing activities can have a major impact on your sales growth. You don't have to do everything, nor should you. Better to focus on those precious few - those 20% activities - that will yield the best return on your marketing investment. That is the most efficient solution to the challenge of marketing and business growth.

The question is - what are the precious few marketing activities for your business?