STICK LIKE DUCT TAPE!!

In a previous Blog, I mentioned the first marketing battle....the battle of the Mind. i.e. your ideas & concepts need to be remembered by your audience. You must break through the clutter...lots of it.

So, how might you do this? I just read a highly practical book which provides some tips to help you "Stick." It is by Chip & Dan Heath and aptly titled: Made to Stick - Why Some Ideas Survive & Others Die.

The key concepts include being:

Simple

Unexpected

Concrete

Credible

Emotional

A Story

So, if you want to quack like a duck....walk like a duck....look like a duck...but better yet, have your IDEAS stick like Duct Tape.....read this book to learn how!!

SEGMENTATION - IT'S WHAT MARKETING IS ALL ABOUT

Can you describe ONE clear niche or segment that your product or service fits? If so, it’s easier for your prospects to remember….and be meaningful to them. Remember most people try to be all things to all people. That’s a recipe for failure!! It’s hard to focus & narrow your audience.


You’ve probably heard it before…..but what is market segmentation anyway? Why is it important? Well, easier to associate. Easier to remember. Top of mind awareness….remember that phrase? Most marketing experts will tell you that the first 1 – 2 Brands that your audience recalls….top of mind….probably has the leading market share. That’s why this is important.


A segment is simply a grouping or cluster of similar characteristics of your product or service. So for your industry…..we can draw out a simple diagram. Think of a continuum from left to right. From low (on the left) to high (on the right.) Low to high on what? Things like: speed of service, quality, variety of features, price, etc. Think about competition and group them into various clusters.


So for example….take the hospitality business or hotels.


Consider Marriott as a hotel: full service, restaurants, ballroom, meeting rooms, appeals to business and personal travelers. Place it toward the right side….maybe ¾ of the way…pricing about $150 - $200 per night depending on the city. Competition would be: Hilton, Sheraton, Hyatt, etc.


Suppose you want to compete on price….more reasonable, but less features. Place to the left of Marriott a segment called limited service. Appeals to business travelers….restaurant really only for breakfast….meeting rooms, but small size….pricing about $69 - $129 per night. Think Courtyard (oh, by Marriott by the way.) Others are: Holiday Inn, Radisson, etc.


Further to the left would be…..economy segment. Restaurant is only continental breakfast, limited….very small meeting rooms, not many….pricing $49 - $99 per night. Think Fairfield Inn (oh again by Marriott….get the picture.) Others are: Hampton Inn, Holiday Express, Motel 6, Drury Inn, etc.


Now go to the far right….luxury segment. Destination locations with maybe golf course or beach resort or mountain setting. 5 star quality and amenities….many restaurants…variety of meeting rooms….recreation activity….pricing maybe $199 - $400 per night. Think Renaissance (gee…owned by Marriott) or Ritz Carlton or Luxury Collection.


I think you get the idea. You can play in just one of these segments or multiple. If you choose more than one….don’t use the same name….it will confuse your customers. Follow the way Marriott Corporation has developed Brands to suit each segment.


Divide your audience opportunities….offer DIFFERENT features for DIFFERENT prices….and you too can increase your market share. Study and analyze the SEGMENTS in your industry…..it’s worth it.

WHAT'S IN A WORD? Positioning

The first challenge and battle that you have, as a marketer, is the battle of the mind. In the mind of your customer or prospect…..that is. You see, it is critical for you to be remembered and remembered for what you stand for.

This is not so easy, given all the messages and interruptions that bombard your prospect. From tv to radio to newspaper to billboards and now messages to you from email….tweets….facebook….YouTube and many more. So, the question for each of you is….how do you break through the clutter and in a way that is memorable to your audience?

i.e. what is the best “positioning” for your product or service? Plus, do you create that or is it already in the mind of your audience? Your first task is to figure out precisely how and in what context, does the prospect think or remember your product or service. Ask them….they will tell you. Conduct some quick and easy surveys and market research.

Tips include: keep your concepts short, to the point. One or two words, if possible. Use graphics to reinforce the message. Narrow your focus….don’t try to be all things to all people. Choose black or white…..don’t be grey (you won’t be remembered.)

There is a concept referred to as “stickiness.” Certain words or phrases just seem to stick. When I talk to audiences, I often ask folks to complete the following phrase:

Winstons taste good, ____________________

(the answer…..like a cigarette should.)

Interesting that this phrase has not been used by Winston, in advertising, since 1955. And yet, most people in my audiences can correctly complete the phrase. It has stickiness.

What word or phrase would people relate about your product or service? Either real or perceived, the concept must generate recall and also generate some positive meaning. Not easy to create….but well worth the effort.

DIFFERENTIATE OR DIE

Your salesperson comes back from a presentation. Did we win the business you ask? No…..is the reply…..the prospect said our price is too high!! What is he really saying?


He doesn’t understand that your product or service is any better than your competitors….either REAL or PERCEIVED. Therefore he wants a lower price. Price is always a factor but it has been shown a number of times not to be the most important factor…..unless your prospect does not see a difference between you and competition.


We are too often led down the path that price is the only thing that matters. This is not a sustainable difference unless you are going to follow a strategy of being the low price leader…..not easy to be. This is the Walmart or Southwest Airlines strategy.


Let’s go back a number of years and think about the coffee business in this country. This is a multi-billion dollar industry and at retail, the leading brands were Maxwell House and Folgers. Products owned by General Foods and Proctor & Gamble (not exactly small or unsophisticated firms.) A container would sell for maybe $2.99 per lb and each of the brands would battle for the better sales any given week or month. Any research conducted would not have shown a consumer problem or unmet need with your favorite brand of coffee.


So explain to me, how, a few years later we find a brand called Starbucks selling for $12.99 per lb and expanding their retail shops across the U.S. If price was the number one factor, Starbucks would have failed. They did not compete the same way…..in fact started out in their own retail stores…..selling more the experience and another place to relax vs selling just a BETTER cup of coffee. Once established, then and only then did Starbucks offer their package at retail, at a substantial premium to Maxwell House or Folgers. And created a new category of gourmet coffee. An opportunity… not fixing a problem that openly existed.


So next time you hear that your price is too high…..maybe you really need to work on how to DIFFERENTIATE your products or create a different user experience!!

FAILURE & INNOVATION

Would you like to increase your chances to succeed? Just DOUBLE the number of failures in your firm!! How can this be? What does this mean?

It’s because most success is not planned or controlled. The great marketers learn to be great observers of behavior. If you want to have that “AHA” moment and trip over a great idea….you must try a lot of things.

This is difficult for most organizations. It depends on your culture of risk taking. Innovation requires taking some risks. In your firm, are people punished for making mistakes? Or trying something that does not work out? What is the reaction…..is it a learning opportunity or is the expectation that things work perfectly? If the latter, you will have a hard time encouraging your people to be creative & innovate. They will be afraid of punishment……i.e. they will avoid risks.

So, create an idea…..commercialize the concept…..find a way to try it with a limited audience i.e. with small costs…..then observe what works. Or what doesn’t work. Learn, revise it, try it again……then “AHA.” You just might surprise yourself and INNOVATE.

GET FEEDBACK FROM YOUR AUDIENCE

Do you have loyal employees? Low turnover? That's a good thing, right? Well yes, for ongoing operations. Here's an interesting dilemma.....want to improve your business and generate new ideas for your customers? Don't just rely on ideas from those loyal employees. Problem is.....they are no longer objective about your business. You need to get feedback directly from your customers!!

So, how do you go about getting feedback, on a regular basis, from your audience? At a reasonable price. If you are a small to mid-size business, it might be too expensive for you to implement a custom research project, with a professional market research firm. While this is often preferable.....one in-depth customer satisfaction survey with a couple hundred responses can easily cost you $15,000 - $30,000.

Good news.....there are some excellent internet tools that you can use to probe your audience. Services like Survey Monkey, Zoomerang, and others. Your requirement is to be collecting email addresses for your customers and prospects and then structure the questionnaire. You can do this yourself or better yet, have someone help you who has some experience with market research.

I prefer Zoomerang.com They have several pre-formatted surveys that can fit your needs. Sign up to their service, then pick a format (like customer satisfaction, employee morale, etc.) and next edit the questions to make it more appropriate to your specific audience. Send it out and read the results!! Importantly, do this 1 - 2 times per year and look for the trends. You are trying to move the needle and improve......this means that the trend is important to see if you can better serve your customers. Go for it!! I think you will like it.

Choose a Strategy to Focus your Business

Mktg & Leadership Insight

It’s hard for leaders to choose just one strategy to focus….after all, isn’t it better to appeal to many different audiences? Actually not, if you want your customer to remember what you stand for….how are you different from competition?

This is the suggestion from author Michael Treacy in his book titled “The Disciplines of Market Leaders.” There are some powerful messages here that leaders should probe to increase performance.

The book describes three overall strategic alternatives: Operational Excellence, Product Innovation, and Customer Intimacy. Firms should implement pieces of all of these BUT FOCUS on ONE to truly stand out and be great!! What defines these strategies?

Operational Excellence……think Walmart, Southwest airlines, and Dell Computer as examples. This is a best value, low price focus. Firms tend to be highly centrally controlled regarding decisions and operate in a very disciplined, structured format. Extra frills are rejected….everyone is focused on saving every penny, or dollar and delivering outstanding value to the customer at the best price…..consistently. Does this define your company?

Product or Service Innovation……think Apple Computer, Intel, Sony, Toyota as examples. This is a best product, premium price, and leading edge innovator focus. Firms tend to be focused around product life cycles, they might even obsolete their own products to develop the next generation of features for customer preference. The organization is structured in product teams, often not functional lines, and creativity and best in class is valued. Rapid change is a part of their existence. Does this define your company?

Customer Intimacy…..think Ritz-Carlton, Nordstrom’s as examples. This is a focus on the customer as king and creation of activities based on what the customer wants….the ultimate in empowerment of your employees to do whatever is necessary to satisfy the customer. Your service is premium priced, but the customer is willing to pay for the extra benefits. Your objective is to generate a WOW response from the customer based on your responsiveness and the initiative taken by your employees. Does this define your company?

These three strategies are quite different. The difficult choice is for you to choose ONE to place your focus. You cannot perform all three with equal focus….too many elements are contradictory and you will confuse your audience as well as your team. Be black or white to your audience……pick a strategy!! Try to focus on all three…..you will appear grey to your audience and be mediocre, at best.