Headlines about misbehavior and scandal are nothing new. They range from Bernie Madoff to Goldman Sachs; from Enron to BP to Penn State. And when companies or individuals step way over the line – breaking the law, violating human rights – their reputation and their brand equity suffers.

But what about the other end of the spectrum? Can a highly ethical, values-based organization effectively compete in this day and age? Can values-based leaders use those attributes to be more effective and generate superior results? What, after all, do values have to do with marketing?

The answer is easy: everything. Put simply, people prefer to buy from companies they trust. People prefer to work for leaders that they admire.

Harry Kraemer explains the importance of values-based leadership

In his new book, From Values to Action: The Four Principals of Values-Based Leadership, Harry Kraemer makes a compelling case for doing the right thing and delivering lasting results. And he should know. Harry is the former CEO and Chairman of Baxter International and he used these very principals to lead the $12 billion company during a period of significant growth.

I spoke with Harry recently and asked him to talk a bit about how a values-based organization gains a competitive advantage.

Craig Gagnon and Harry Kraemer discuss values-based leadership

Today’s parting thought:

“Management is doing things right; leadership is doing the right things.” – Peter Drucker

I often work with companies that face challenges brought on by change. Those changes aren’t all bad. Growth, acquisition, new product development and geographic expansion create challenges just as thorny as declining sales, aggressive competition and economic recession. But change demands taking a hard look at brand strategy, beginning with an honest appraisal of brand reputation.

VOC
The tool of choice these days is VOC – Voice of the Customer. Of course, smart marketers have always recognized the value of listening to what customers say about themselves, their needs and how they view your products and your company. It’s a key step in defining, or redefining, your brand. And yet, business trends and buzz words come and go. Lately, “Voice of the Customer” is everywhere.

But it’s one thing to listen to customer voices. It’s another thing altogether to hear what’s being said. And not said. When you’re looking for answers, it’s easy to hear what you want. Or, at least, what you expect.

I just finished a rebranding project for a multi-national corporation that proves the point. Phase 1 involved conversations with business unit leaders and feet-on-the-street salesmen. Those conversations always included a key question: “What is your reputation among customers?” I expected disagreement. In this case, tho, most everyone agreed that they were known for three things: quality, reliability and superior engineering.

Phase 2 involved a similar discussion with a small sample of customers. That was followed by a final survey phase to validate and quantify Phase 2 results. Interestingly, the answer to the question about brand reputation was strikingly similar. Customers agreed that the company made reliable, high quality products. Had we merely surveyed customers, that would have been the end of it. We’d have had the basis of a brand strategy. But that’s the difference between listening and hearing.

Listening vs Hearing
Digging deeper, I learned that customers applied those very same attributes to the entire competitive field. It was the price of entry. If a company didn’t produce high quality, reliable products backed by superior engineering, they simply wouldn’t be considered. These characteristics did nothing to differentiate one company from the rest. There was something else.

Listening carefully and asking the right questions revealed the answers: purchase decisions were based on service. And depending upon the market segment, service meant different things – from lead time to delivery time, to technical support to personal relationships. Had we merely listened, the brand strategy would have been built on product quality rather than service.

Of course, there are other benefits of a good VOC exercise. Careful listening can help reveal your brand’s personality – a valuable trait which should be reflected in communications. To say nothing of the kudos your company will get from taking the time to listen to customers. They appreciate the effort more than you realize.

Do you hear voices, too?
Have you listened to your customers lately? More importantly, have you heard what they’re saying? It’s easy to assume that you know your customers and what they think of you. The smart organization takes this a step further and asks them. You may be very surprised by what you hear.

Today’s parting thought:

“The most basic of all human needs is the need to understand and be understood. The best way to understand people is to listen to them.”
— Ralph Nichols

If you’re in business, chances are you have a LinkedIn profile. Currently more than 100 million of us do. And, if you’ve been following the financial news, you know that LinkedIn recently went public. The first major social media IPO. So lots of eyes were on the stock price which opened at $45 a share and closed at $86 a share (after hitting a high of $92.99) by the end of their first day of trading.

While many business people dabble, as with many social media channels, few have taken a strategic approach to using LinkedIn. Even fewer have done so as a part of their company’s marketing mix.

When I served as VP/Programs for the American Marketing Association/Milwaukee, I was always looking for good speakers who could help our members become even better marketers. As you might imagine, they can be a demanding group who are eager to learn, stay abreast of new developments and who expect a good return on their investment of time and money.

Wayne Breitbarth, author of a new book on LinkedIn

A couple months ago, we hosted Wayne Breitbarth, a business owner, LinkedIn coach and author of a new and practical book on how to effectively use LinkedIn. Unlike his how-to seminars, Wayne spoke specifically about planning and developing a well-conceived strategy for applying the tool to support both company and personal brands.

Not only did Wayne draw the largest audience in two years of monthly AMA programs, his evaluation scores were among the very highest. And we’ve had some mighty fine speakers.

Following the program, I sat down with Wayne at his home and asked him to briefly recap his advice about developing a LinkedIn strategy.

If you do business long enough, sooner or later you’ll face an ethical issue. I’m not talking about outright lying or theft or fraud. Those are pretty black and white. If you cross those lines (and get caught), you get fired, you lose the account or you go to jail.

No, I’m talking about those blurry lines that aren’t exactly illegal or immoral, and yet they push the boundaries of what is right and fair. These are issues that can be rationalized by telling yourself that nobody is getting hurt or that smart businesspeople sometimes have to play hardball.

Consider the following situations that I’ve confronted and ask yourself if the line has been crossed. Ask yourself what you would do.

Using ideas without paying for them.

Marketers looking to select a new agency will send out an RFP, review the detailed responses, and invite several agencies to make presentations – often including spec creative – in order to make a selection. In the process, many good ideas are put on the table. But after a winner has been chosen, why not implement the good (and free) ideas or designs or strategies presented by the losing agencies?

Going around your agency or consultant.

Agencies come to know many different vendors over the years.  Through trial and error, experience and judgment, they learn who’s good and who isn’t. If you work with an agency, you end up working with their vendors – their printers, photographers, researchers, etc. If the agency develops a campaign that works or the consultant does a good job on a project, next time why not go directly to their vendors, saving the money that would have otherwise gone to the agency or consultant who originally brought them in?

Trumping up your capabilities.

Agencies are as willing to tread the line as their clients. One way is to claim capabilities that don’t exist in house.  Why not list a freelancer or consultant as an employee – maybe give them a title and a business card – even if they aren’t on the payroll? If they are to be used on the account, why not showcase the work they’ve done for a former agency – implying, if not actually saying, that the work was done under your roof?

In the heat of business and competition, it’s tempting to exaggerate. To cut corners.  Rationalize. Lose your way.

But integrity is like virginity – once you lose it, it’s gone forever.

And once your reputation is tarnished, trust will be hard to come by.

Where’s MY line? I am as human as the next guy. But I keep a close eye on the line. If it’s blurry, I’ll err on the side of integrity. And when those with whom I work lose sight of it, I won’t work with them again. It sometimes hurts to say “no”, but it’s easier to sleep at night.

Where’s YOUR line? What issues have you faced? I welcome your stories since they may help me and others to rethink issues that we’d otherwise overlook.

Today’s parting thought:

“There is an ongoing battle between conscience and self-interest in which, at some point, we have to take sides.”

— Robert Brault

A recent article in HealthLeaders Media raised the issue of whether hospital marketing was worth the cost (Hospital marketing Costs Remain Cause for Concern). While this deserves a point-by-point reply, my first inclination is to highlight a recent campaign that undoubtedly will prove worth the cost and more.

Sometimes a campaign works on so many levels, you’ve got to stop and take notice. Such is the case with the recent campaign for Children’s Hospitals and Clinics of Minnesota.

Full disclosure: I didn’t plan or implement this campaign. I don’t  know their specific objectives or their strategies. And yet, I recognize when a campaign has been as well planned as it is well executed.

Take a look at the microsite for this effort and see if you don’t agree that the essential elements for success are evident.

Strong, unique brand personality that appears to accurately reflect the internal culture – which attracts employees as well as patients. Check.

Messages that are relevant and appealing to the target audience (parents) and not internal factions (physicians). Check.

Opportunities for brand advocates to actually advocate – online. Check.

Strategically consistent messages integrated across all media – from broadcast and print to online and social media. Check.

A memorable themeline – “That’s why we’re called Children’s” – that supports the brand position while simultaneously repositioning all other competitors. Check.

Bright, friendly graphics (note the stars from the logo reprised in the headlines) and upbeat copy that undercuts the fear that goes with the territory – proof that they truly understand their audience. Check.

Social media channels that are actually social – while still reflecting the brand. Check.

FaceBook Page

These are some of the things I believe are essential for success. And despite the occasional and notable exception, it’s amazing how rarely we see this from hospitals. Too often they fall into the familiar pattern of talking about themselves (board certified physicians, awards and rankings) rather than making emotional connections with their audiences. No doubt, it’s that sort of hospital marketing that has people concerned about cost.

But when it works this well, magic (and business) happens.  Preference, loyalty and advocacy improve. Referrals increase. Competitive threats are blunted. Market share increases. Internal morale and employee retention rise. Recruiting costs fall. All of which are well worth the cost. If every hospital marketing effort worked like this, I doubt there would be much concern at all.

Bravo Children’s of Minnesota.

Today’s parting thought:

” Although the mind may be part of your target, the heart is the bull’s-eye.”

– Peter Guber

A while back I attended a marketing symposium at Marquette University featuring some leading marketers including Steve Laughlin of Laughlin Constable, Tad Hutcheson of AirTran Airways, Robert Kraft CEO of RCI FirstPathway Partners and Ed Caroll, Chief Marketing Officer of Bon-Ton Stores.

These marketing heavyweights shared a common message – the critical importance of getting close to, and connecting with, customers. Clearly, those of us who work in marketing appreciate the importance of understanding customers in order to forge better relationships, communicate more effectively and improve performance. But the often unanswered question is “How?”

While marketers turn to research for the answer, few methodologies provide deep insights into the people themselves. The way they live, feel, think. Their fears and motivations. What gets them up in the morning. Moreover, customers themselves often find it difficult to honestly or accurately express these attitudes.

Ethnographic research, however, provides a way to dig deeper. To provide insights that can be used to develop better products, better services and more relevant and compelling messages.

I recently met with Jenne Meyer, Ph,D. and Director of Global Strategic Marketing for GE Healthcare to talk more about ethnography, how it’s done and the value it provides. Following are excerpts of our discussion.

So how well do you know your customer? And what might you gain from a deeper understanding?

If you’ve read this blog or if you’ve worked with me, you know how much I value research-driven strategy to achieve better results. If you’ve used ethnography to gain greater customer insights, please share your experience so others can learn more about this seldom-used qualitative technique.

Today’s parting thought:

“It’s not what you look at that matters, it’s what you see.”

—  Henry David Thoreau

As organizations consider whether to utilize social media, market research is not often the first thing that comes to mind. However, by actively monitoring social media conversations, it’s possible to uncover market opportunities that you may never have found in any other way.

Persuadable Research is a dedicated online research company based in Kansas City. However, since they conduct studies online, they assist clients in markets across the country, engaging analysts wherever they may live. I’ve worked with Persuadable Research and keep in frequent contact with SVP Charles Miller. We recently met for breakfast to talk specifically about social media and how organizations can use those channels as a research tool.

Charles told me of one recent project that revealed a surprising and previously unrecognized market segment. In addition, by further analyzing the keywords used in frequent online conversations, they were able to learn more about consumer attitudes toward competing brands.

Next time you get into the debate about whether or not to jump on the social media bandwagon, consider the research implications. And if you decide to look further, let me tell you how Charles and I can help.

Today’s parting thought:

“We would accomplish many more things if we did not think of them as impossible. “
– Vince Lombardi

#5 in a series on how to respond to a rapidly changing world and the need to ReThink key elements of marketing and planning.

This may be the most over-discussed topic in the history of marketing. In just the last 2 years, it’s been the subject of innumerable webinars, seminars, blogs, articles, books, white papers and tweets. Not to mention the topic of a major feature film and Time magazine’s person of the year, Mark Zuckerberg, founder of Facebook.

So what more is there to be said? And why should you ReThink social media and online marketing as part of your marketing efforts? Because social media is different than it was a year ago. And it will be different a year from now.

A short list of things to consider:

-       Dramatic growth among all age groups. Last year you may have researched the market, only to find that your customers and prospects didn’t use social media. Perhaps they were “too old”.  You may want to look again. Although younger generations continue to dominate, the Pew Internet & American Life Project recently released a report – Generations Online in 2010 – showing that the fastest growth is coming from Internet users 74+. While certainly not a dominant market opportunity, it’s indicative of social media’s widespread adoption.

Every other age group has also seen significant growth in the use of social network sites. So, while last year’s marketing plans may have excluded social media, it’s worth taking another look now.

-       Access points are changing. Not long ago, most people accessed social media sites via computer. They still do. But sales of Smartphones and other mobile devices are exploding. People update their Facebook and LinkedIn status while on the move. Twitter and Foursquare present new opportunities to create site-based promotions. QR codes and augmented reality take this a step further.  This year, Christmas shoppers using Smartphones not only received location-based coupons, they used their phones to compare prices while in the store. ReThinking social media means rethinking mobile, too.

-       Staying on the right side of the law. The number of companies jumping into social media without benefit of a social media policy is appalling. Initially, policies made sense, if only to assure brand consistency. But, as privacy issues resulted in terminations, the field of social media law started to grow. The answer is simple: establish a social media policy crafted with marketing and HR, then approved by legal. For those who prefer greater expertise, I work with an attorney who specializes in social media law.

-       Social media is getting bigger by the day. This is no passing fad. Facebook surpassed 500 million users in 2010 and is about to surpass 600 MM. Such dominance has just attracted a $500 million investment by Goldman Sachs. The most recent valuation has reached $50 billion!! The impact that Facebook and other social media have had is undeniable. And, while Facebook could go the way of Netscape in a few years, social media as a category isn’t going anywhere. If you didn’t use it before, you probably should now. If you used it before, ReThink how to use it better now.

-       Are you really social? Social media is often used like every other medium. No surprise. For years, marketers have learned to develop consistent messages that support their brands across multiple media channels. Along comes social media and marketers jump on the bandwagon so their websites can include Facebook and Twitter icons. And yet, the bulk of the activity is to simply post more outgoing brand messages. Feedback, much less commentary and dialog, is often missing. If that’s how you’ve used social media in the past, it‘s time to ReThink your approach for the future.

-       It’s not about numbers. If pushing messages without engaging people is the first sin of social media, measuring success by numbers of fans is the second. Here, too, marketers are trained to report the metrics of success. But what really matters is what those fans or followers DO. Do they rave about your brand? Tell their friends? Redeem coupons? Buy? ReThinking social media means ReThinking those measurable objectives that add up to success.

Today’s parting thought:

“You have to learn the rules of the game. And then you have to play better than anyone else.”

– Albert Einstein

#4 in a series on how to respond to a rapidly changing world and the need to ReThink key elements of marketing and planning.

Marketers all recognize the importance of knowing their customers. But do you know them as well as you once did? Or have they changed while you weren’t looking? And, given the high cost of acquiring new customers, the prudent thing to do is to start with those you already have.

Customers are more than statistics

Sales people know that customers are flesh and blood – with ambitions, attitudes, problems and hopes. Marketers can be a step removed. We sometimes see customers as demographics: ages, incomes, genders.

I once helped to market a national brand of professional power tools. Every competitor treated their customers as if they were all twenty- something uneducated Neanderthals, obsessed with torque and runtime and power. But talk to a carpenter and you’re apt to find a craftsman who takes pride in his ability to solve problems creatively and who resents the lack of respect he often feels from those who chose college over trade school. When you demonstrate that level of understanding in your marketing, customers tend to reward you with loyalty.

When was the last time you asked your customers what they thought?

I went to the doctor last week. Today I received a survey from Press Ganey – one of the big names in patient satisfaction research for health care providers. I know they’ll use the information to reward the high performers and to identify problems. They’ll also compare scores against local competitors and national norms.

Do you ask your customers what they think of you or your products and services? Not only can you use the information to improve your service, you may find that once-happy customers are being lured away by aggressive competitors. And if you go beyond the survey and actually talk with them, you’ll learn even more.

How have your customers changed?

This is the most important question of all. If you’ve been in the same business for the past 5, 10 or 15 years, it’s natural to assume that you understand your customers. But the last two years alone have had a big impact. People have lost jobs or developed a healthy fear of losing them. Thrift is the new norm. Sustainability and the green movement have affected buying behavior.

Online technology, once reserved for geeks, has advanced well beyond the early adopters. Even a year ago you might have assumed that your tech-averse customers preferred to shop in person and pay bills by mail. Now, it seems, everyone is online. On Facebook. Checking their smart phones, Tweeting. There’s an app for nearly everything. Perhaps your customer has made the switch. Have you?

On the other hand, it only seems that everyone is online. According to a recent study by Pew Research, there continues to be a significant disparity of online utilization by income. Not only are those with higher incomes more likely to have broadband, make use of the Internet or even own a cell phone – they are far more likely to be heavy email users, access news or pay bills online. What does this mean for the way you communicate with your customers?

Like people everywhere, your customers are changing.  How will you ReThink your customers in the coming year – and how will your marketing plans change as a result?

Today’s parting thought:

“You better start swimmin’ or you’ll sink like a stone. For the times they are a-changin’.”

– Bob Dylan

#3 in a series of posts on how to respond to a rapidly changing marketing landscape and the need to ReThink key elements of marketing and planning.

Let me begin by saying, emphatically, that if you have a good, strong agency relationship, hang on to it. Far too many marketers are too quick to look around. It’s easy to believe that the grass is greener elsewhere. A recent article in B2B Magazine (Agency reviews seen as a sign of recovery) noted that many marketers are beginning to look for new agency partners to help take advantage of a growing economy.  What those marketers may fail to recognize is that there are no guarantees that the new agency will be a better fit than the folks at their current agency who have developed an understanding of their business, their competitors and their prospects. They also often fail to appreciate the time and effort it takes to identify a new partner and build the trust and understanding that already exists with their current agency. To read a good article on this topic, check out James Dodds of Air Products.

That said, given the changes that have taken place in our industry over the past few years, now is precisely the time for marketers to ReThink their agency relationships to make sure they still serve the purpose they once did. Consider the following:

Experienced leadership: Agencies have always been volatile businesses. Changes in client leadership are often accompanied by an agency review. Budget cuts like those necessitated by the recent recession often result in cuts in agency personnel. However, those cuts have historically been made at the bottom – assuring continuity among experienced agency leaders. But this time it’s different. In an effort to preserve eroding profits, many agencies have reduced payroll by cutting from the top. The very people whose experience you once trusted may no longer be available to work on your business. If that’s the case, it could be time for a change.

Fragmentation: At one time, clients could look to their full-service agency partners to provide in-depth expertise in every communications discipline from planning to research, media to sales promotion, creative to public relations. And while there have always been specialty providers, the proliferation of disciplines, the high cost of maintaining expertise and the pressure on both budgets and profits have given rise to a vast array of specialists. From dedicated strategists to video production companies, web development firms, media buying organizations, PR agencies, etc., it has become increasingly difficult to find an affordable one-stop solution. Full-service agencies no longer provide full service. The upside is greater depth and expertise and lower costs from specialty organizations that don’t have the overhead of larger shops. The downside is a lack of objectivity from those strategists – each of which promotes their solution over all others. The other downside is the loss of a governing strategy. Unless, of course, you start with another low-cost specialist: a dedicated planner/strategist with no vested interest in one discipline over another.

The impact of the Internet: Traditional agencies have struggled to keep pace with the changes brought about by technological advances and the Internet. Budgets are shifting rapidly from traditional media to online media. Agencies that once created only TV, radio, newspaper and magazine ads now need to understand and create websites, banners ads, social media channels, mobile apps, digital outdoor, email marketing (yes, email remains stronger than ever) and more. If your agency hasn’t made the transition, you may not be reaching your audience as efficiently as you could.  On the other hand, new media specialists have a tendency to believe that traditional channels have already gone the way of the telegraph. Not so. See my last post on ReThinking Media.

Your organization and your customers: Of course, change isn’t limited to your agency. Your own organization is not likely the same place it was a year or two ago. Staff cuts, budget cuts, sales declines have all made marketer’s jobs more difficult. Your customers have likely changed as well – many have developed new buying patterns, brand loyalties and media habits. Have your agency partners kept pace with these changes? Have you?

As you look back on the changes that have taken place and look ahead to the changes yet to come, now is a good time to take stock of your agency relationships. Making a change may prove unnecessary and even costly. On the other hand, it costs you nothing to ReThink those relationships to make sure you’re prepared to meet the new marketing world in which we all must live.

What’s YOUR take? How strong is your agency relationship? Will you start the new year by ReThinking your partnerships?

Today’s Parting Thought:

“When you’re finished changing, you’re finished.”

– Benjamin Franklin