Monday, June 1, 2009

Tips but no tricks 4

Let's talk a bit more about "Ed". The clothes you have on your back (and, I hope, on your front, too), your mortgage, your dinner next weekend at some nice steak house, your kid's books and tuition, your dog food (unless you bring her leftovers from your steak house dinner), your utilities bills, and any other thing you have that you must pay for - it is "Ed" and only "Ed" who has made these things possible. The only reason you have a job or a career or whatever you may call it, is because someone, an "Ed", is willing to buy whatever your employer is selling. The moment "Ed" stops buying or subscribing or enrolling, no more paychecks will be forthcoming and before you know it, you're in the unemployment lines.

Please, don't ever forget this crucial fact of life. There are "Eds" who buy from your employer or from you, if you are independent. You are an "Ed" who buys from others. "Ed's" decision to continue a business relationship will determine success or death for any enterprise. Sometimes you are on one side of the counter (seller), other times you are on the other side (buyer) - either way, don't mess around with your livelihood.

Let's continue with "the plan." Companies (or people) who plan for the future are more likely to survive. Plans are normally done annually, though very regular monitoring is a must. The plan is a comprehensive statement about what is expected from each product/service (and yes, this applies if you have a Mexican restaurant, a Chinese donut shop, a dry cleaners, a plant nursery, a gasoline station, a school, a hospital, a print shop, or a manufacturing operation) over the period being forecast and measured. It includes historical information as well as recommendations on how to improve performance. It combines strategies, tactics, and timetables for action.


The sections of a plan must discuss and present at least five basic elements:

  1. A detailed situation analysis: (a) analysis of the internal marketing situation - known as an audit, (b) competitive and environmental analysis.

  2. Objectives that will provide direction, when things are to be accomplished, and how these activities will be evaluated.

  3. A strategy that determines and selects "Ed" and discussions on the marketing mix (product, place, price, promotion).

  4. A tactical plan covering what will be done and who is to do what.

  5. A system or program for measuring results.


Where have you been? Where are you now? Where will you be? How will you get there? These issues will not solve themselves. Maybe you have been lucky and your business has taken off without a glitch (rarely the case) and without a plan. Truth is, the good Lord will not send you customers from heaven - you must plan for them, go out and get them, make them happy, nurture them, and keep them satisfied.

I don't remember if I mentioned this in other blogs, but a marketer's job is extremely difficult. It requires coming up with ideas, creations, products, services, etc. that will satisfy someone, somewhere. Is it not easier to satisfy someone we know than someone who is a total stranger?

Before we go on, let's talk a bit about strategy and tactics. In avery general sense, strategy is what you want to do; tactics is how you will do it. Say you want to change the look of your living room. Your strategy might be to have the best looking living room among your friends; your tactics might be to paint the walls, replace the carpet with wood floors, change the curtains, buy new furniture, etc.

Back to the plan.

  1. Company situation: Current sales, net income, market share, strengths and weaknesses.
  2. Environment: Competitive plans, opportunities, threats, laws, regulations.
  3. Target markets: Where they are, how they buy, how much will they buy.
  4. Objectives: Sales, market share, distribution, stockholder equity, technology, quality.
  5. Strategy: Areas the firm will emphasize, what paths to follow for marketing mix variables.
  6. Action programs: Six month activity plan, tactics, media plan, individual assignments, timetables, completion deadlines.
  7. Anticipated results: Breakeven charts, projected profit and loss statements, cash flow budgets, actual P&L.
  8. Contingency plans: What if?
  9. Appendixes: Support documents and exhibits.
  10. Executive summary: An overview of the entire plan. It is the last paper to write, but the first to appear in the document.

We'll talk about these issues as we go along in future blogs. By the way, did you know that people are paying thousands of dollars for this kind of information? See you in a while.

Monday, May 18, 2009

Tips but no tricks 3

Oh boy, did I sound upset? Sorry about that; I hate when companies waste money. Anyhow, enough ranting. On with the task.

Do you have a plan? T. Boone Pickens says (actually his dad said it), "A fool with a plan can outsmart a genius with no plan." Insight and understanding are the accelerators for accomplishment. The insight and understanding must reside somewhere other than in your head and heart. They must be committed to paper, where everyone involved can see clear direction; where everyone involved has, or should have, a say. And clearly, if you are to receive approval on any kind of budget, a plan is a must. Marketing is like a road trip; if you know your destination, you punch the data into your GPS, or look in a map - depending on where you want to go, and where you are, these gizmos will guide you on the best ways to arrive. No map? No GPS? Well, there is always "just go for it." You may get there (assuming you know where 'there' is); then again, you may go around in circles burning gas (resources) as you seek your destination.

So, a plan. What do you do? Why do you do it? Who is it for? Why is it for these people? Who are you? What qualifies you to do this thing you do? Questions and more questions.

Initially you may want to ask if anyone cares about what you are doing or offering. Kind of takes us back to the better mouse trap story. Maybe even back to the issue of Chinese Marketing, where it is assumed that the proper strategy will sell anything to anyone regardless of want or buying ability. I won't go into detail about Chinese Marketing, but one of the ideas is great: If one could get each person in China to buy just one apple a day, you could potentially sell 1.3 billion apples daily; nice dream, eh? Great and detailed Excel spreadsheets will not necessarily get a product to market nor keep it there.

So we ask, What is the reason for our existence? What vaccum do we fill? What niche do we fill? What problem do we solve? Oh yes, and problems...

...did you know that it is never about producst or services and customers? Did you know that it is really about a perceived satisfaction to a perceived problem? People don't buy products or services, they buy what these things represent: I don't buy headache remedy because it is so exciting to have. When my body is out of balance at times it shows through a headache; I want my body back in balance, thus no headache, thus the remedy. As a business, I deal with advertising agencies because of the results I seek to obtain through their creative, their astute buys, etc. - I don't deal with an agency because I like people in the ad business.

What do you believe you satisfy, and who is the "Ed" who will be satisfied?

Saturday, May 16, 2009

Tips but no tricks 2

Someone once asked me, "What is one of the first things you would do to determine a proper marketing direction seeking better results?" My response was rather simple and direct. If the measurement or evaluation of your efforts in each (and I do mean "each," because all search engines are not created equal, a brochure is not the same a s a flyer, radio is not just radio...) marketing area is proving positive to the desired degree, then you should seek avenues for improvement (there is always room for improvement). If you have no measurement or evaluation criteria or system, and you are designing and launching programs (web pages, brochures, information meetings, radio and the like) because this is what has always been done (what I call historical ignorance), or because this is what the industry does (what I call collective stupidity) then you should immediately stop EVERYTHING. If tossing resources out the window without second thoughts is what you are after, then go ahead, do that - stand at the window and throw them out; why bother with whatever you are calling "marketing programs"? And then, of course, blame your lack of customer, or client, or student, or patient, or whomever response on the economy. Blame your budget cuts and layoffs or firing people (except, of course, yourself - the "leader") on decreasing revenue.

What I found sad about that short conversation was the immediate response of, "Manny, we can't do that!" "How can we possibly stop our marketing efforts?" To this, I understood that "marketing" had to continue, regardless of results or lack thereof. "Marketing" must go on, perhaps to justify expenditures and show someone that we are doing something, and that the decrease in revenue, or sales, or units, or enrollments is not our fault. Could it be there is a year-end budget fear? That fear that if we don't spend what we said we would, then next year's budget will be shorter? Can't have that, now can we? Could it be that we really don't have a clue about marketing and how it works and what it should do and how it should do all things it does?

Maybe you took a principles (and, please, it is PRINCIPLES, not principals - use a dictionary for the sake of your readers. I have seen this on education institution brochures and websites) of marketing course at the undergraduate level, and a marketing strategy course at the graduate level. Now, you are prepared to tackle the marketing world. You have answers and techniques. I don't think so!!! Some stories I could tell about failed "marketing" efforts of some of these folks. (Oh, oh. That brings to mind some teachers of the profession who have never practiced - went through undergrad, grad, post-grad school; read all the books, learned all the jargon and formulae; participated in round-tables and wrote papers, but never actually worked in the field, never actually did anything; never had to meet a payroll; never had to design a program that someone was actually depending on for revenue to meet payroll. Ah, to have tasted the blood of battle!)

We need more money. We have insufficient resources. Our people need to work the phones harder. We need to make more pitches. We, blah, blah, blah... Somehow it is never enough.

Of course it is never enough! How can there ever be enough when there is no understanding of even what is required. It is not about what you have, rather about what you do with what you have. It is about endowing your resources with increased wealth-building capacity (this is what I offer my clients). To do this, however, to endow your resources with such power, you must understand the game and its rules.

On the first night of class, I always like to ask my students to introduce themselves. Who are you? What do you do? For how long have you been doing it? Why are you here? What do you plan to do with this once you "finish"? I have received some cute answers, some pie-in-the-sky answers, some answers the likes of, "Gotta do it. My employer demands it if I am to get a five-dollar raise next year or a lateral move to some obscure department". The one that truly blew my mind, though I know for a fact that this is happening in many industries, many enterprises, every day, happened at a summer term course: "I work for a company that has exercise centers, and sells and distributes exercise equipment. I have just been promoted to the position of marketing manager, and I can't even spell the word." Was it just me, or did anyone else feel the slap in the face?

"Well, we need a marketing "person." Joe, the assistant over in accounting, is pretty good at graphic design - maybe a good choice. Then there is Jane. Jane has, for several years, been receiving calls from potential students and answering questions about our programs and requirements and general queries; she has also maintained and updated our student database, as well as printed letters, licked envelopes and sent out mailing pieces. That certainly qualifies her to be promoted into a marketing position. Of course, there is also Judy, who knows about web pages." And the story goes on. Subject-blind people using improper criteria for such a critical issue.

Let us remember something of crucial importance: Nothing happens until somebody makes a sale. If revenue is not resulting in "cha-ching" in your cash register, then, my friend, all you have is a hobby; it does not matter if your cash register is not-for-profit. I don't care how elite your professors. I don't care how unique your products. I don't care how many wonderful buildings you have or how beautiful your grounds. I don't care how astute your financial people. I don't care how great your accounting methods - accounts payable, accounts receivable, accounts throw-awayable, what accounts because you have no revenue. I don't care... whatever. I don't want to hear the babble and mountain-high BS. Truth is, you have nothing without customers. And get off your cloud, please. They are ALL customers. These are the people who pay you a salary (I don't know, maybe you're special and God sends it to you every payday. Or maybe you get paid from instituional endowments. Your students, not customers, are special people who are a raw material, who pay a "tuition" not a "price", that you mold into something better. Yeah, tell that to your mortgage lender at month end) - the salary that allows you to go to work (the job you got because you were able to "market" yourself to someone) every day because you were able to buy a car (from someone who "marketed" to you) and put gas in it. The salary that allows you to eat, and pay mortgage, and buy dogfood (hopefully not for personal consumption), and send your kids to school, and set aside money for retirement. I won't go on with the list, you're already bored to tears.

Without true marketing you have no buyers, you have no revenue, you have no business - period! Or did you think nature would send you customers because you're such a nice person with such a good idea? If you believe that, you must be the person who created the better mousetrap; better buy a new lawnmower because the grass is probably pretty high as no one has yet beat a path to your door.

People, we marketers - true marketers - are screaming this at the top of our lungs. We want to help. We want success for the masses. We want success for YOU. If you are not successful, then neither are we; we may all have to resort to eating dogfood. If you are not getting results, then perhaps your methods suck. If your marketer is not getting you results, then maybe your marketer sucks. If your marketer sucks, then perhaps you, too, suck. Are you listening?

Wednesday, May 13, 2009

Tips but no tricks

I plan to use this blog to bring tips and ideas on marketing and consumer behavior strategy to anyone interested in such subject matter. In their "The 22 Immutable Laws of Marketing", Ries & Trout say, "Billions of dollars have been wasted on marketing programs that couldn't possibly work, no matter how clever or brilliant. Or how big the budgets."

First, a few things (amongst many) that marketing is not. Marketing is not, and/or you are not a "marketer" if you:
  • creativity
  • graphic arts
  • knowing how to buy media
  • making brochures
  • worked in a marketing department in some support function
  • kept and updated a customer database
  • updated a web page
  • created flyers
  • sold (not counseled on) anything
  • worked in an advertising agency
  • the list goes on, but I believe you get my drift. At least those folks who are truly in marketing will

Marketing involves a dizzying array of areas. Marketing is, regardless of what you may believe or of how it is classified or labeled in your organization, the umbrella under which fall all areas dealing with customer acquisition and retention.

"Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007 by the American Marketing Association)."

I don't know, maybe it's just me. MARKETing is putting things on the MARKET. It is understanding that person whom I call "Ed". It is identifying needs/niches/vacuums in the MARKET. It is creating things (and please, let's not get academic in terminology--things, products, services, dreams, desires, exchanges, gizmos...) that someone wants/needs; it is communicating that these things exist and how they come to satisfy; it is putting these things in someone's hands to try; it is presenting these things convincingly to people so they are willing and ready to stick their hand in their pocket and buy one; it is ensuring that the communication is producing desired results; it is identifying, locating and qualifying the people to whom you will present; it is identifying if what you gave them is working as promised; it is a social responsibility in terms of morals, values and ethics.

I don't know, maybe it's just me. But haven't I just talked about marketing research, advertising/communications, sales, promotion. And don't get me started on other arenas such as distribution, merchandising, proper invoicing, customer service, and yes, why not, a manicured lawn and a clean toilet. If your place is a shambles, what can I expect inside the box you just sent me via some delivery service at some astronomical cost?

Oh, yes, I almost forgot to tell you about "Ed." The next time you are out and about, do me a favor and pick up a present for Ed. Who, exactly, is Ed, you ask? Precisely. That takes us a bit into geo/demos, consumer behavior, psychographics, lifestyle... my goodness, more MARKETing stuff.

Is it Edward, or Eduardo, or Edwina, or Edgar, or Edith? Is this person tall or short; heavy or thin; female or male; married or single or in a relationship; straight or gay? With kids or no kids; employed or unemployed. What type of work does this person do? How much does this person earn? What type and level of education does this person have? Where does this person prefer to shop? What does this person typically buy? What language does this person speak?

My goodness, so many questions. And this list is nowhere near comprehensive. If you have none of the answers, how do you expect to design, develop, launch, communicate and hope to sell anything to anyone? Marketing is difficult in that it requires that one create an offer that will satisfy someone else, as I said, "Ed."

I must stop now; I have to go market something. Speak with you in a while