by Rolf Gutknecht, Agent of Change (c) 2012
The GPS is a wonderful invention for anyone who’s had to get somewhere they’ve not been before. Whether you get directions from your SmartPhone, Mapquest, Google Maps, dedicated GPS device or even the old paper map, there are only two pieces of data to plot your route: where you are now and where you want to go. Sounds pretty simple, right? Yet how many companies, maybe even yours, have launched into a marketing campaign without really considering these things! Unfortunately, not having a clear picture of where you are now and where you want to go leads to not getting anywhere because one critical factor is missing: a overall marketing strategy.
Time and time again in speaking with CMO/VP/Directors of Marketing for companies large and small, they tell me that they need to execute marketing programs, but then tell me they “don’t have time to develop a full strategy.” I’m not kidding. It’s actually easy to understand, given all the exciting marketing tools available today, including social media, email marketing, location-based apps, etc. It’s easy to confuse these tactics with strategies. Too often I see people focused on the newest and sexiest marketing tactic du jour without any appreciation for how it fits in an overall marketing strategy. I’ve also seen entire marketing plans that consist of nothing but a series of tactics strung together one after the next without an over-arching marketing strategy.
So, what’s the difference between strategy and tactic? A strategy is the broad roadmap that defines where you are now, where you want to go and how you’ll get there – taking into account your product or service, what the competition is doing, which direction the market is heading, and what you’ll need to do and say that gives your company the competitive edge. It’s the big picture. Tactics, by contrast, are the specific tools you use to do this: Write a blog. Send out a newsletter. Develop an app. Run an ad. Be more visible at tradeshows. Etc.
It’s easy to start with the “how” but if you haven’t identified the “what”, you may find yourself spending a lot of time executing tactics that don’t take you where you want to go and in so doing, you’ll be wasting time, resources and losing out on sales-producing opportunities.
The confusion compounds when I hear some marketing folks talk about their organization’s “online marketing strategies” given all the attention to social media, online and mobile tools. You shouldn’t have an “online” or internet marketing strategy any more than an you should have an “offline” strategy. What you do need is one, single integrated strategy that looks across all delivery platforms whether online or offline, print, broadcast, or mobile. Your customers don’t have an online self and offline self and neither should you. Think holistically about all your marketing initiatives. Otherwise you’ll drive your customers and your own team crazy.
So at the end of the day, executing marketing tactics without having a well-developed integrated strategy is like leaving your roadmap tools at home and taking off on the drive without concerning if you’ve chosen the right road, highway or turnoff. You wouldn’t haphazardly set off on an important trip in your personal life so why let it happen with regard to your company’s marketing activities. You’ll never make it to the right place taking the wrong roads.
by Rolf Gutknecht, Agent of Change (c) 2012
Tell me a fact and I’ll learn. Tell me a truth and I’ll believe. But tell me a story and it will live in my heart forever. — Indian Proverb
Ever wonder the best way to represent your product or service to prospective clients or customers? Here’s something to think about. Stop talking about the features of what you offer. Don’t even focus on the benefits. Don’t tell me how good you are or why you’re better than the competition. Instead, tell me about a situation your customers typically find themselves in. Paint me a picture of how that situation is improved by the use of your product or service. Show me what success looks like. Capture my interest with people or places that resonate with me. Don’t focus on you, your company or your products. Instead, tell me a good story!
Since the beginning of language, stories have continued to teach, inspire, entertain, motivate and engage us like no other form of communication. From bedtime stories when we were young to story time in elementary school to the sharing of family stories around the dinner table, they connect us on a much deeper level than any list of advertising bullet points could ever do. For those not convinced, try telling any favorite story using only bullet points and then decide which format people find more memorable and meaningful.
Recently, my business partner, Dan, and I met with a mid-sized “challenger brand” company to talk about their business goals and how we could help them grow their business in the face of a number of competitors. Tom, the company president, talked about his products and their features. It was the same stuff we’ve heard time and time again from other companies in his industry. It was only when he got away from the rattling off of bullet points and suddenly spoke emotionally and passionately about how one of his customers was saved from the brink of bankruptcy because of his company’s tailored services did we immediately feel more connected with his business.
So what’s the secret to good storytelling?
Well, there is a right way and wrong way to tell stories. The secret lies in making an emotional connection with buyers because emotions play the dominant role in most decision-making processes. We need to tell our stories with authenticity and real passion in order to cut through the information overload that buyers experience and the BS shields they put up. On that note, talk like a human. Enough with the business babble. Don’t worry about sounding smart. It’s alienating and condescending, and your story will be quickly lost on your audience. Talk like a human being that cares about making meaningful relationships with people.
So how do you relate your story to the reader so that it resonates and motivates them to take action in the form of purchase or even just their wanting to retell your story and spread the word? Here are few things to think about:
So that’s my story for today and I’m sticking to it. What’s yours? Go out and create your own stories and “live happily ever after.”
by Rolf Gutknecht, Agent of Change (c) 2012
I had a phone conversation with a prospective new client (I’ll name her Amelia) last week and during our talk, I mentioned having seen a cable TV ad that her company had run recently and was wondering if it had produced growth in sales inquiries or better yet, generated more sales. Her response is something that I’ve heard more times than “Doan’s has pills.”
Amelia reported less-than-stellar performance, which didn’t really surprise me. But she fingered the blame on the media type…and not the marketing process or the message. The spot was flat-out boring and crammed with too many feature points. The message itself had no spark; the ad employed uninspiring, overused stock images that everyone has seen on other companies’ commercials; and while it had a lot of words attached to it, it said nothing. I know you know the kind of ad. You see them every day in trade publications, direct mail, online and yes, even on TV.
When I politely asked her if maybe it wasn’t the media but the message, my suggestion was immediately dismissed as “no, no. that’s not it. Cable just doesn’t work.” In this case it was TV but I’ve heard it for most every B2B and B2C media type there is. So I quoted to her legendary adman Bill Bernbach’s “golden rule”: “The truth isn’t the truth until people believe you, and they can’t believe you if they don’t know what you’re saying, and they can’t know what you’re saying if they don’t listen to you, and they won’t listen to you if you’re not interesting, and you won’t be interesting unless you say things imaginatively, originally, freshly.”
Now before I move on, please take another 15 seconds and read the above quote again and let it wash over you…it’s that important.
You see, what this timeless observation says applies to everything a marketing executive does in communicating a brand’s promise or a product’s sales message, and then needs to shine through like a huge Klieg light within your ads, your sales support material, your promotional initiatives, your tradeshow booth, your collateral and your website.
Taking the uninspired or predictable way out leads to self-inflicted mediocrity which we all know is like a communicable disease. It starts with a so-so idea and coupled with a lack of interestingness and imagination, it infects every aspect of your marketing to the point that regardless of how and where you present the message, your current and prospective customers will not give it two seconds of thought as it passes by, only to become part of the background noise and clutter.
I’m not sure about you but one of the main reasons I decided that advertising and marketing was what I wanted to pursue as a profession was because I loved coming up with marketing ideas that would make people sit up and take notice in a sea of indifference.
If you want your marketing to actually change the trajectory of sales, if you want yourself to be seen as an idea person rather than a “fulfiller” of marketing stuff, then the status quo is not an option. You need to create new truths for your company that people believe in because you say things “imaginatively, originally, freshly.” To do otherwise, especially in today’s economy, is unacceptable.
Back in the early 1940s, Rosser Reeves of Ted Bates & Company coined the phrase “USP – Unique Selling Proposition.” The term referred to a having, finding or creating a distinctive point of view or reason to buy that is wholly different from the competitions’.
But as a catchphrase, USP is so 70-years-ago!
In the 80’s, marketing agencies, HR consultants and motivational speakers started using the term “elevator pitch,” which kinda says the same thing: What is so special about you (or your company, or your product) that you can express it in just 30 seconds on the ride up the elevator and expect the listener to get it? We hear that term a lot in angel and investor meetings.
More recently, we find ourselves using the phrase “value proposition.” And we’ve shorted the time to about 5 seconds, but we’ll settle for 30, just as long as it clearly tells the story.
Your value proposition is the answer to the question “what customer objective does my company help to achieve better than anyone or anything else?”
Whichever term you favor, USP, elevator pitch, or value proposition, without it, without a good one, you’re dead! If you can’t very quickly describe what makes you, your product, your service or your company truly special in the eyes of the customer, don’t expect your customer to do it for you. By default, they’ll just put you on the shelf called “commodity,” and there you’ll stay.
Every business, no matter what the business, starts out with the same baseline of customer fulfillment as its competition. If you have a fast food restaurant, for example, you might say your value proposition is fresh entrees at reasonable prices. But then, doesn’t the competing restaurant down the road also say that? So that alone doesn’t really make you special, does it? Poof, you’re a commodity! You’re just the same as everybody else.
On the other hand, your value proposition has to be one that is not merely unique but deserves an exclamation point in the eyes of your customer. It has to create a real sense of Wow! or there really is no value, just proposition. What can you say that captures the imagination and puts you in a class all your own? That’s at the very heart of making a sale or losing out on one.
I’ll be honest, defining your value proposition takes some real corporate soul-searching at the most fundamental level. It requires seeing yourself from your competitors’ customers’ point of view. It may even require re-inventing your organization so that there’s an entirely new but better value proposition than the one you’re claiming now.
Commit to asking yourself, just as soon as you finish reading this post, “what’s our value proposition?” Ask your associates and see if their answers agree with your own, and if they can articulate it in less than 90 seconds. Aim for 30. (For my company, we can do it in two seconds: “Agent of Change.” We even own the registered trademark on it!)
Your value proposition is the very cornerstone of your business. All sales and marketing must emanate from it. The stronger your value proposition is…
…and the more clearly it expresses your unique ability to improve your customer’s lives…
…and the most concisely you can articulate it between elevator floors…
…the more confident you can be in betting on your company’s success!
You’d be hard-pressed to find someone who’s going to describe today’s economic marketplace as anything but temperamental. The natural inclination is to take a defensive hunker-down mentality, downsize, and play it safe. The truth is, however, you should be looking at things (especially your customers) quite differently.
Most businesses look at their customers from the inside-out based on what they want to deliver. (In other words, you’ve created your own Kool-Aid and you’re drinking it, so your customers should too, right?) But customers see any business from the opposite perspective, from the outside-in.
Let’s take these two views apart for a moment.
Inside-Out thinking begins by asking, “What are we good at? What are our capabilities and products? How can we use our resources more efficiently?” This thinking limits the company’s business opportunities because it means the company is less sensitive to how the customer is interfacing with the market. They’ve slipped into thinking it’s “all about us and what we sell.” Inside-Out companies are surprised by poor sales results. They don’t feel threatened when a new competitor enters the market. They’re out of touch with what value they really bring – or don’t bring – to their customers, or what their customers think of them compared to competitors. In short, their mindset is “Here are our products and services and this is how we help you.” The problem with this approach is that it relies on your customers having to work to find a place for your solutions in their lives.
Alternatively, companies that think Outside-In focus on the customers’ point-of-view. They stand in the customer’s shoes and view everything the company does through the customer’s eyes. They depend on marketing to increase the conversation they have with their customers which in turn allows them to seize on business-building opportunities. They ask their customers what their upcoming needs are and then figure out how to give it to them. By shifting the focus so significantly, they open up a much broader set of opportunities. These companies don’t wait around for change to happen but rather they create change by seeing their world through their customers’ eyes, allowing them to more quickly meet the customers’ needs.
The first tablet PC's were designed based on the manufacturer's point-of-view; Apple's iPad was designed from the consumers'.
A perfect demonstration of the difference is tablet computing. Tablets have been around for years, fundamentally as flat computers…in search of markets who need them. Apple, on the other hand, looked at how consumers use the Internet, music, photos and video content, and came up with a convenient form factor that is, in essence, an Internet devise, not a computer. The rest, as they say, is history. That’s Outside-In thinking at its best.
So what’s this all mean? Well, fundamentally, if you’re not stepping out of your comfort zone and taking a hard, honest look at your business and its products through your customers’ (and non-customers’) eyes, you’re putting a lid on your growth. If you’re not communicating to your customers on their terms, they simply won’t care. Having an Outside-In attitude ensures that your company delivers the value buyers actually understand and appreciate. Conversely, the old phrase “if you keep doing what you’ve been doing, you’ll keep getting the results you’ve been getting” has never been more true.
Alright, business hasn’t turned around as quickly as you’d like – or as quickly as anyone would like. So your customers aren’t throwing their spending money at you any more than you’re shelling out dollars to hire additional staff, add new locations or expand your advertising reach.
Instead, if you’re like most companies, you’re continuing to be as parsimonious with your spending and investing as good business judgment dictates, right? That means you’re more focused on sales than on marketing, since marketing means spending money whereas sales means making money, right again?
Many businesses have grown their sales force while decimating their marketing departments. They’ve turned from brand-building to such “instant gratification” sales-based marketing strategies as direct response and SEO. At the same time, they’re making price the deciding factor.
What could possibly be wrong with that?
So let me propose two basic flaws in that kind of approach.
First, the further away from image and brand marketing you move, the less the customer is predisposed to buy from you regardless of price, since your brand is no longer the top-of-mind preferred choice. That means A) you have to wait until the customer is ready to buy and not a second before, and B) you are now set up for trading exclusively on price since your value proposition has taken a distant back seat…and there’s always a competitor who will come along with a cheaper product or service.
The second strategic flaw is that you’re now doing exactly what your competition is doing, hunkering down and playing the DR/sales/price game at precisely the time advertising rates are the most affordable they’ve ever been. Today, you can negotiate the most advantageous ad programs and one-up your competition with strong visibility while they’re still virtually invisible.
The opposing argument might be that in this sucky economy consumers are more price-focused than brand focused. And yet…
Why is it that sales of Apple’s iPad, an absolutely non-necessary (but really great) product, are booming? With each new iteration of the iPad, a $600 – $800 purchase, there are lines of anxious shoppers waiting outside the Apple Store. Simply, Apple presents a fantastic value proposition in its advertising that has nothing to do with price. The Apple brand and the iPad experience are king. Their strategy is so successful that in 2011, Apple sold more iPads in its last quarter than HP sold desktop computers all year!
The true job of advertising and marketing is to establish a consumer’s desire in advance of asking for the order. Without this first stage, building desire and brand equity, the selling process is exponentially more difficult. Any wonder why the sales cycle for most businesses has doubled or even tripled over the past few years as marketing budgets have been cut?
This is nothing new. In fact, the business publisher McGraw Hill addressed this very issue in a brilliant ad that ran in the early 1960s. In essence, the ad demonstrated that without marketing laying the foundation of understanding and desire prior to the sale, the barrier is significant.
So you’ve been given a gift, as it were, in the form of a recession. From a marketing perspective, your competitors are asleep at the wheel, and you can afford marketing visibility as you never have before. Here’s your chance to let them suffer the recession while you profit from it. How will you handle the opportunity?
You spend thousands, perhaps tens or even hundreds of thousands of dollars on your advertising and yet you’re still completely invisible to most of your audience. What’s going on? Why after all this time and all those dollars are you still the best-kept-secret in town?
Well, think about it from another perspective.
Do you need a plumber right at this moment? (If you do, let’s pretend you don’t for the sake of this illustration.) People who don’t need plumbers probably don’t see all those plumber ads in the papers, or on bus benches, or hear them on the radio. Oh, they’re there all right, lots of them, but to you, they’re completely invisible…Unless. The “unless” is if the ad happens to be really creative or interesting in some way that grabs you regardless. But most plumber ads are pretty much what you expect, and are therefore completely unnoticeable to the 98% of the audience who is not at-need. (You see where I’m going with this…)
In this case, the best that the plumber/advertiser can hope for is an equal shot along with all his competition at the time the faucet starts dripping, and not a moment before. But let’s take the plumber whose advertising is really fresh and interesting, that makes people take notice even when everything is fine. Then he’s going to be the first name on people’s minds when the sink backs up.
Human beings only pay attention to the things that interest them, and block out all the rest. It’s a natural defense mechanism that helps the brain cope with too much information. And only those things that are of immediate interest have a way of showing up as if by magic – such as when you are shopping for a particular car and suddenly, every car on the highway is that car!
For fun, try this wonderful YouTube demonstration:
[youtube=http://www.youtube.com/watch?feature=player_embedded&v=Ahg6qcgoay4]
It’s easy to be visible to your audience when there’s an immediate need or urgent desire. But imagine how completely invisible you are to them prior to that need – which is precisely when you most want to reach them! The more “expected” your advertising, the more invisible you become. You’re just another plumber advertising to people whose toilet’s are flushing just fine.
If you want to be noticed, you have to be noticeable. You need to rise above the general noise level with advertising and marketing that is different, fresh, unconventional and unexpected. You have to be willing to step out on a limb and surprise the audience and perhaps yourself.
I realize that only a tiny percentage of marketers will actually take this to heart and do anything amazing. That’s why 95% of ads in any medium – print, TV, billboards, direct mail – or for any industry – beer, office supplies, funeral homes, or financial services – are doomed before they leave the production house. But for those who take the risk, the reward is top-of-mind awareness before, during, and after the need.
That’s an ROI I’d take any day.
– By Dan Katz, Agent of Change © 2012 LA ads – A Marketing Agency
Failure is not fatal but failure to change might be – John Wooden
Somehow, somewhere, our basic programming got all screwed up. While throughout life, change is inevitable — in business, in our economy, in our relationships with others — we are fundamentally hard-wired by human nature to resist it.
For example, last week I spoke with the president and founder of a successful food manufacturer in Southern California. He told me about how his company was losing business for the past two years and that he was seeing the dark clouds building up on the horizon for his company and the employees he felt responsible for. B2B and B2C sales were being eaten away by competitors. And some key buyers insisted on margins he could not sustain. In short, his business was coming to a critical juncture and he knew that one primary reason was his lackluster, forgettable marketing efforts. He then said something that still bothers me today: “I know of your company’s reputation and that making a change to your firm would probably be the right thing to do, but for too many reasons, I just can’t switch agencies or strategies at this time.”
While I’m not a psychologist, 25+ years in marketing has taught me that there are some primary causes for why business executives struggle with change. You can probably add another 10 causes yourself but here are my 5 “issue buckets” for resisting change. See how many sound way too familiar.
5. The status quo is good enough…or “We’ve always done it this way and there’s no reason to change.” That’s not what one would call a rallying cry for success, yet it’s said day in and day out. Couple that with a poison called “being comfortable,” and you’ll unfortunately arrive at the intersection of “Irrelevance Blvd.” and “Vulnerable Ave.” Status quo, you know, is Latin for ‘the mess we’re in’. – Ronald Reagan
4. Not seeing the Marketplace as it really is. Without any real-world customer and competitive research, the marketplace can be seen in a very skewed manner; in essence, believing one’s own BS! Any recommended, alternative approach to what is taking place is ridiculed and discounted.
3. Change costs money. In a bad economy, logic might suggest that the best thing to do is hunker down, put your arms around the money you’ve got, hold tight and wait it out. Only here’s the truth: more companies have saved themselves into bankruptcy than spent themselves there.
2. It worked before. Past success often drives and validates current behaviors. Unfortunately, though, what got you here won’t necessarily get you there because too many other things have changed, so those old formulas will no longer work.
1. Fear. Since it’s never known for sure what will happen when one makes changes, the fear of change merely leads to inertia. But the truth is, like the proverbial deer caught in the headlights, one is sure to encounter untold damage unless there’s movement. (I supposed I could have said that a shark that doesn’t continue to move forward drowns, but that’s just too many animal metaphors!)
One needs to trust that through taking action and moving out of one’s own comfort zone, there’s an opportunity to grow, evolve, and possibly transform into something much greater. My vote is to do something. Anything.
If you change the way you look at things, the things you look at change. – Wayne Dyer
You cannot change your destination overnight, but you can change your direction overnight. – Jim Rohn
— by Rolf Gutknecht, Agent of Change
Here’s an interesting way to measure the effectiveness of your marketing. And you can do it in two seconds. Simply ask this question: Does our advertising & marketing program make our competition nervous? Or are they thinking, “this isn’t a problem for us!”?
I’ll cut right to th
e chase. If they’re not nervous, you’re losing important ground.
Your single most important job as a marketer is to strike a chord in the marketplace and make people react…reshuffle their brain cells, if you will. If you’re successful, it will certainly raise eyebrows at the competitors’ offices. You know you’re winning when people at “the other guys” run around the office waiving your ad yelling “Did you see THIS!”
Watching the commercials during the Super Bowl, I can’t help but wonder how few competitors feel really threatened by what other advertisers spent millions to run. If you think about the four or five spots you actually remember (let alone the one or two whose products raised your interest), then imagine how much money was spent that changed nothing at all.
One of my favorite experiences came out of a campaign we created for Vivitar. We boldly compared our client’s digital camera quality with four major competing brands, visually demonstrating the quality of each camera using the same subject. Shortly after the campaign began, a letter arrived from the attorney of one of the other brands we featured demanding details on how we set up the shots. Gladly, we sent them the documentation and that was the last we heard from them. On the other hand, not surprisingly, sales of Vivitar cameras shot up.
More than once, I’ve had the joyous experience of actually listening to our clients’ competitors complaining about our clients’ campaigns (their not realizing that we created them in the first place). It’s a lovely sound.
If your marketing is really doing the job, your competition is saying things like “that’s not fair,” “this is making us look bad,” “we need to ramp up our own campaign,” and “why don’t WE do stuff like that!”
What kills a good marketing program is expectedness, complacency, just being good enough. But if you think the competition is taking notice of your marketing efforts and they don’t like it, you’re on the right path and you dare not stray at your peril.
Take the two-second test and decide if those who covet your customers are saying bad things about you in their hallways, or are high-fiving themselves all the way to the bank at your expense.
I’m sure you remember those wonderful fill-in-the-blanks books, “Mad Libs.” You know, you just insert your own verb, noun or adjective in the blanks and see how silly the sentences come out. Mad Libs are great for kids and fun at parties, but they have no place in expressing your marketing message. Yet, as I look through the pages of ads in magazines, or surf companies on the web, I see all kinds of Mad Lib slogans and taglines, which are in effect condensed marketing messages:
At the very least, many marketing messages are so generic, any competitor in the same industry could put their name in the space:
They don’t communicate anything unique about the marketer other than the category in which they operate, putting them at the same level as everyone else who provides a similar product or service.
By comparison, here are a few examples of taglines past and present that are truly distinctive and demonstrate a unique selling proposition:
If you’re in the former camp instead of the latter, it’s a perfect time to re-think what you have to say to prospective customers that gives your firm the edge.
As you begin looking forward to the new year, it’s worthwhile to look backwards to some of the strategies and tactics you’re bringing into 2012…starting with your basic marketing message. Ask yourself, is our message so familiar, expected or generic that it could apply to any of our competitors? Does it fully express our unique point of difference? Is it fresh and “sticky”?
Without having a strong point of view and a distinctive message risks your customers seeing your products or service as a commodity, and they’ll be happy to shop your competitors when they think price is the only difference.
This may require a bit of corporate soul-searching, but it belongs on your marketing must-do list for 2012. Otherwise, you’re just [ verb ]-ing your precious marketing dollars [ preposition and place ].
by Dan Katz © 2012