Sep 16, 2024 | Branding, Communication
‘Marketing’ & ‘Communication’ are two words that should not be compounded. They have entirely different meanings.
The confusion of meaning amongst quasi marketers is the beginning of wasted marketing budgets. It is also the source of much of the dumb rubbish clogging up the digital pipes.
Following are 4 strategies to increase effectiveness.
Define the objective of the communication.
What seems to happen here is that the tactics become confused with the objectives. This is not about optimising your website, or deciding whether or not to use Facebook ads, it is about creating the outcomes you want. Create demand for a product, generate awareness of the company, attract funding, and many others may be the objectives of a marketing investment, but they are not the tools for implementation. Lack of clarity of objectives, time frame, and performance metrics, is a basic marketing sin. I always advocate for a SMART framework.
Who is the audience?
Having figured out why you are communicating, the obvious next step is who you need to communicate with. Who is your ideal customer, and who do you need to engage to generate a transaction?
Your ideal customer may be hospitals with specialist surgical services. A relatively specific ideal customer, but inside that customer, there are those who sign the order, engineers who assess regulatory compliance, accountants who have control over budgets, and the medical staff who use the product. All have different concerns and motivations, and all require differing communications. Understanding the audiences, crafting messages and selecting the channels by which they will be delivered should be second nature.
What does your audience want and need to hear?
Often these are two different communications. They may want to hear about the prices and delivery times, but they need to hear about the regulatory status, availability, and detailed specifications of the range of options being presented to them.
Your task is to clearly communicate what it is you are offering, the benefit it delivers, and why they should care, along with presenting a call to action that is compelling.
How do you communicate?
What is the tone of the messages, and how do you reach the target is the oldest marketing challenge in the book.
Every successful marketing communication is in some form a story. Do you use drama, comedy, a villain, testimonial, or do you use an academic approach to the copy? This even applies to the blazing headline of a huge price reduction, where that is the only thing in the ad. Even that tells a story to those that see it.
What media is used, newspapers, magazines, social platforms, direct mail, email, digital advertising, face to face? In most cases it will be some combination of these, and many other options available to deliver messages.
While writing this post, it was constantly in my mind that ‘everyone knows this stuff’ and ‘nobody out there needs to be told, again, how to suck eggs’.
However, the weight of crap I see floating across the web, and sadly into my inbox, unsolicited, told me otherwise.
I am confident nobody reading this needs to hear it again, but perhaps you could share it to your less enlightened comrades.
If you want to get noticed, lift your game!
Header illustration via DALL-E in 5 seconds.
Aug 30, 2024 | Collaboration, Marketing, Small business, Strategy
Identifying, building, defending and leveraging competitive advantage has been, and will remain, the foundation of successful marketing.
It is also the essence of strategy: making choices with incomplete information that serve to shape the future to your benefit as it arrives.
The challenge is, the location of competitive advantage has moved, and many, if not most, have failed to pick the move.
Think about it.
Until the early 2020’s, competitive advantage was still all about brand, scale, control of supply chains, access to capital, and the ‘old boys network’. To use Charlie Mungers description, they constituted the ‘Moats’ around successful businesses. Kodak, Xerox, GE, GM, Exxon, IBM, Wal-Mart, P&G, and the banks and insurance companies ran the world on the basis of wide and deep moats built on these 5 factors.
Suddenly, the world moved on.
We watched as a raft of new businesses leveraging the capabilities of the internet took over. Along with the obvious Amazon, Facebook, Alibaba, Google, Uber, Air BnB, eBay, Netflix, Salesforce, and others that are pure internet plays, you had Apple, Microsoft, and more recently Tesla, combining the connectivity of the net with the ‘old school marketing moats’ in whole new ways.
What made the difference?
Each of the newbies benefitted from network effects.
Those that dropped out of sight did not.
Even some of the tech giants of the very early 2000’s, such as Yahoo and Alta Vista have dropped out of sight because they failed to recognise the potential value they had in their hands. They did not leverage the potential network effects.
Those network effects have two differing core types:
- An ecosystem of complementary, and often partially competitive enterprises that support each other’s efforts. This occurs particularly often in R&D, early-stage commercial development and in logistics and supply chain management.
- Double sided markets, such as eBay, Facebook, and Air BnB, where the value of the offering increases with the number of people connected to it.
The answer to the question posed in the header: in your networks!
On a simple scale you see it all the time in retail. The specialist shoe shop in the mall collaborating and cross promoting with the fashion dress shop.
Your networks will build as you create value for others greater than the cost of being a part of the network.
Aug 22, 2024 | Collaboration, Communication, Governance
Throughout history, humans have existed in small groups, tribes, and clans. We have worked together for the common good of the small tribe, and often, perhaps most often, been at odds with the tribe across the river.
British anthropologist Robin Dunbar introduced his theory that humans can maintain stable social relationships with no more than 150 people. This is a theory now so well accepted that ‘Dunbar’s number‘ has almost become a cliché.
The phrase ‘Stable Social Relationships’ has particular relevance in the age of social media platforms. How many friends do you have on Facebook, connections on LinkedIn, followers on Instagram?? For many, it is way beyond 150, often into the many hundreds, and often thousands.
How do you maintain Stable Social Relationships’ with that number of people?
Answer: you cannot.
Social media gets the blame for all sorts of things, rightly so, but it is not the fault of the platforms, it is the fault of evolution.
Our application of technology has run way ahead of our evolutionary capacity to manage it and retain the relationships that made us the most successful species ever.
It seems to me that the growth of private messaging, reversion to personalised even hand written notes, and emotional engagement of ‘Local’ things is a response to the ‘platformisation’ of our social relationships.
I think it is a trend that will continue and grow.
The power of social media platforms will slowly erode as more one to one enablers incrementally retake the ground lost. In the process, we humans will build up ‘evolutionary resistance’ to their power.
I do however see some hurdles in the way, the dark side of social media is as powerful as ever, and Dr Dunbar has little advice on that score.
Header cartoon credit. Lynch. (I have no idea where I found it)
Aug 14, 2024 | Analytics, Marketing, Sales
There is lots of talk, often sales-hype from digital urgers, about Lifetime Customer Value. When applied correctly, it is a vital measure, but when you look closely, it often means lifetime customer revenue.
Revenue is of little commercial value in the absence of margin, so the discussion can be completely misleading.
Understanding the margin generated by customer segments, or in some cases, individual customers is an immensely valuable metric that enables you to focus resources where there is the most benefit to the enterprise. You can make informed tactical choices with a great level of confidence based on the margin delivered.
Customer margin is also an enormously useful metric elsewhere.
Sales people are often rewarded on revenue, which can be gamed. Margin over time is much harder to game, and a far better measure of the effectiveness of a salesperson in delivering value to the enterprise while serving customers.
Similarly, calculating the cost of acquisition of a customer gains traction when measured against margin rather than revenue.
One of my clients businesses relies on referrals as a source of business. Increasingly they are moving towards margin on converted referrals as the single metric that best measures the impact of their marketing and product delivery efforts.
You cannot generate margin in the absence of revenue, but you are easily able to generate revenue without margin. Not a good idea!!
As an aside, also beware of the difference between margin and mark-up. They are similarly often used to mislead the unwary.
Jun 14, 2024 | Communication, Governance
You cannot expect the right answer to come from the wrong question.
Too often we spend inordinate amounts of time trying to answer those questions before we understand the context or the ‘frame’ from which the answer will come.
Before anything else, to ensure the best answer possible, consider all the ‘frames’ through which the situation in front of you could be seen. Hypothesise what alternatives to the immediately obvious could be possible that might drive the situation you are examining.
Several months ago, early on a summer Saturday evening, I was walking my dog. As I passed the church at the end of my street, I saw a vague acquaintance crying.
There were a few other people milling around, so I just made an assumption without realising that is what I had done, and offered to help if I could. Her response was that she was Ok, crying for joy, her first grandchild had just been baptised.
Clearly the question that popped into my head led to an entirely to the wrong conclusion that her crying was from distress.
The frame through which I observed the woman crying led to making an automatic, but incorrect conclusion.
How often in our commercial lives do we ask questions which just assume the presence of some factor, when in fact that assumption is wrong?
The lesson here is make sure you have the context right before you start coming up with answers.
Header credit: Tom Gauld at www.tomgauld.com
Apr 10, 2024 | Analytics, Communication
It seems that ‘the truth’ is a malleable concept.
We are overwhelmed by opinion masquerading as fact, economic and social models designed to deliver a predetermined outcome, managed correlation equated to causation, and market research that asks the wrong questions of the wrong people.
What is truth to one person is nonsense to another.
We should be able to see ‘the truth’ about what has passed, there is data that should distinguish fact from fiction. However, we still fail to discern the truth from amongst the data available for analysis.
Who is winning the war in the Ukraine?
Depends on who you ask, and both sides have data that shows conclusively that they are winning.
Remember Vietnam? I do.
The Americans had an overwhelming advantage in material, technology, and logistics. How could a little country with few resources and no technology of their own, face and win against the mightiest war machine the world has ever seen?
Impossible but it happened.
Until the Tet offensive commenced in January 1968, there was no doubt in anyone’s mind, apart from the North Vietnamese, that it was only a matter of time until the might of the Americans became overwhelming.
The Americans had data that proved to them they were winning, despite the secret conclusions contained in the Pentagon Papers. It was not until the spring offensive in 1974 that it was obvious to all that the American ‘Facts’ that were being analysed were irrelevant, and the conclusions drawn were terminally wrong.
The clear answer to the question in the header is: ‘only when you analyse the right data.’
Header credit: Hugh McLeod at Gapingvoid.com
