Category Archives: Business Strategy

Marketing Progress

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Marketing measures their effectiveness, but should also measure organizational effectiveness as perceived from outside. The fact is that all organizations want to make progress. Too often though, progress is equated with profit. Profit is only one form of progress. To not measure more meaningful aspects of progress might lead to eventual doom. Imagine that you could report to the CEO a fantastic year. Sales up. Net profits up. Total number of customer up. But let’s also assume that you failed to measure customer satisfaction, brand loyalty or relative market position. Next year you would likely be reporting plunging sales, no profits and a bleeding customer base. Every organization wants to make progress, but you have to define what is the progress that needs making. A 10% improvement in customer satisfaction might generate 20% more sales the following year with additional marketing spend. If you have not monitored customer satisfaction, then … Continue reading →

Buzz Kill

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Why is everyone talking about Kim Kardashian’s rump and not your disruptive, world-changing app? So many startup marketing plans are based on building buzz, yet achieve none. The reason is that founders believe their own hype. They see the intrinsic usefulness and beauty of their products and believe that everyone else will too. Based on little more than this borderline egocentric outlook, startups rarely get people talking because they missed the point about why people talk. People talk to one another out of personal motivations. Seth Godin once presented a monstrous list of why people share ideas, which gives you a clear idea of why the motivations of your communications conduits are more important than your features and benefits. People talk about products because

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Innovation, Disruption and Groundbreaking

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“Our technology is disruptive” said every founder at a recent venture capital pitch fest. If that had been the case, it would have been a wonderful evening. As it turned out, not a single deal was discussed after the last slide deck reached its end. All said, the words innovative, disruptive and groundbreaking were frequently used and never accurate. I have seen the same with marketers. As with startup founders, if you don’t understand the difference between these concepts, or you buy your own hype and assume your product is in a status it isn’t, you are unlikely to be profitable. Innovation: To innovate is to make changes in anything established (things that are disruptive are innovations as well, but of a different caste). If you devise a small enhancement to a product category that creates a minor but marketable advantage, you have an innovation. Likewise, if you overhaul your … Continue reading →

The Only

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“There may be 300,000 of you … but I’m the only one.” Melissa Etheridge said that to the Woodstock ’94 audience (I know, I was there) as she was wrapping up her song titled “I’m the only one.” Though her song was about romance, it was also about marketing. Two directly related themes are wound-up in this quote: audience reach and differentiation. It doesn’t matter if you are a book author, software vendor or rock star. Each of us has an audience. To this audience we present something unique. Only once there is a sufficiently large audience and an undisputed differentiation will mass appeal (or even strong niche appeal) be possible. Take the case of a fitness book that landed a $1,000,000+ advance publishing deal, which in that industry is completely unheard of. Core to the publisher’s decision was that the authors had established audiences (or as the book biz … Continue reading →

Handling Influencers

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A guest post by David Greer and excerpted in part from his book Wind In Your Sails. Buying power has shifted from companies to purchasers. There is too much information available today on the Internet for anyone to think they can hide information from buyers. While buyers always had a process, in the past marketers could get away without knowing those processes in exacting detail. Today you cannot market and sell without knowing how your prospects buy and what are the key drivers for them to make a change. In the middle of the sales process, strategic thinking has an incredibly important part to play. In order to understand a prospect’s buying process, you must start with the numerous stakeholders. Many of them have veto power in the process. In my book, Wind In Your Sails: Vital Strategies That Accelerate Your Entrepreneurial Success I feature the strategies that Guy Smith (head … Continue reading →

That’s Different!

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When Lady Gaga donned a meat dress, people said “That’s … errr … different.” Differentiation is what drives both companies and products, which means differentiation is one of the most import things to occupy your attention immediately after corporate cash flow and the last donut in the break room. Being different is a communication of value, and value is what people pay for. Yet, not all differentiation is equal and not all differentiation is sustainable (e.g. Madonna). Product differentiation is the easier to understand, and oddly the less valuable of the two. When your product is different in a way that matches the needs or desires of a targeted audience, then sales are sped. But product differentiation is short lived, even if you have patents. The differentiation you invent today will be cloned by your competitors tomorrow. Likewise, there are differing

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Question Yourself

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Take your market research seriously … unless you didn’t take it seriously from the beginning. It is relatively easy to screw-up market research because there are many ways to do so. The most careful of statistical validation calculations are meaningless if you asked New Guinea tribesmen their first class cabin cocktail preferences. The heart of research (market and marketing research included) is knowing what you need to learn, learning it correctly, then applying it appropriately. That last one can be tough for start-ups when visionary founders resent market researchers telling them that their baby is ugly. There is no way to exhaust the list of methods for creating lousy research, but some of my favorites include: Not having a business purpose behind the research My first question to executives looking for primary market research is

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