Jul 6, 2010 | Customers, Innovation, Marketing, Strategy
The easier it is to quantify, the less it will be worth. This appears to be a pretty harsh judgment, but the reality is that if you can quantify and standardise something, it can be copied.
This is the case, until you consider the value created by subtle differences, particularly in consumer products, and original creations, a painting, poem, piece of music , new gadget, a new expression, or a new use for a staple product
An original Van Gough is worth tens of millions, but a copy it would take an expert to pick, done by very capable technicians in China, can be had for a modest amount. It is not that the copy is a lesser painting technically, it is just not the original.
Seeking the original is the core of innovation and commercial sustainability, as the alternative is to chase the cost curve to the bottom, where in the long run, the best return possible for the lowest cost producer is around the cost of capital.
Jul 1, 2010 | Customers, Marketing, Social Media
As a group, you may not like something. A style of music, a literary style, a type of product, a group of people, but when you see one of the group individually, and find you like it, or them, the rest of the genre becomes less confronting.
It is the same with brands, the closer you get to a part of the brand, the easier it is to find things about the whole that you like, and you can more easily justify involvement, and scoff at your previous dislike. Cognitive dissonance at work.
By definition you only get closer to a brand if it is delivering something to you, so it is a bit of a circular process, but the lesson for markets is that to build a brand, you need to get close.
The tools of “getting close” have changed, they used to be largely one way communication mechanisms, but now we have the power and tools of the web, so get close, engage, embrace, and succeed.
Jun 27, 2010 | Branding, Customers, Marketing, Small business
“Cheap” implies less of everything that is important, not built to last, minimal attention to the detail, and certainly little customer service. However, “Frugal” implies a discipline that ensures that waste is eliminated, unnecessary features eliminated, but the basic performance is not compromised.
Cheap is never the outcome of good marketing, but Frugal is a very potent positioning in most markets, and is often ignored in the search for wider customer appeal.
Next time, ask yourself, if it is cheap, in which case, don’t buy or produce it, or frugal, in which case it may be a good deal.
Jun 22, 2010 | Branding, Communication, Customers, Marketing
How often we confuse the reasons our customers buy products, how easy it is to get carried away with the technology, the newness, the features of the product, and never consider the real, usually unstated drivers of consumption.
Great marketing is always about the benefits a product brings to the consumer, and whilst the features play a role in delivering the benefits, consumers do not really care about features, they want what the product delivers for them.
Defining the benefits is marketing, translating them into images and words consumers can relate to is advertising, and is only a tiny slice of marketing, at the end of the process.
Poor products, no matter how well advertised, do not succeed, great products with poor marketing that fails to identify the benefits of consumption, usually fail, but even poorly advertised products with clear and distinctive benefits usually find their way, because consumers are generally smart enough to make the connection. It is this last distinction that may appear at first glance to be semantic, that is often the biggest hurdle. This great clip from Mad Men says it all.
Jun 10, 2010 | Customers, Management, Marketing
Most marketers equate success to more; more ads, more locations, more customers, more Sku’s, more appearances in the press, and so on.
However, the quest for “more” leaves a lot on the table, as it disregards the value of what you have.
Would you rather have an extra customer that delivers an extra $10,000, or an extra 10,000 from an existing customer?
In most circumstances, it will be the latter, because there are no acquisition costs, a deepened relationship with an exisiting customer that creates barriers to exit for them, and a more predictable operational and logistic chain that inevitably costs less than one set up, even if it is entirely routine, to service a new customer.
Share of wallet is a powerful driver of performance, as it implies that as you get more of a customers wallet, you become more engaged with their key processes, and become core to their efforts to add value in turn to their customers.
Being excellent with a few is usually a better approach than being average with a lot.
May 25, 2010 | Customers, Marketing, Social Media
A newish term to describe the capacity of consumers to respond, and to initiate change, and it is having a huge impact on the demands on the people running the marketing efforts of all organisations, and the breadth of their responsibility within those organisations.
Suddenly, because of the reach of the net, marketers are being asked to create startlingly different products in order to remain differentiated from the competition, whilst being socially and ecologically responsible, but still meeting the financial metrics that dominate organisations.
In most cases, this is a very big ask, marketers are usually as bound by the successes of the past as anyone else, consumers need to push them to new solutions by rejecting the old ones.
