Branding

What is an “Agent of Change?”

Challenge ChangeLast week, just after sitting down for lunch with a new business prospect, and right after exchanging business cards, the gentleman looked at my business partner’s card and then mine, and said, “Hey, both of your titles say ’Agent of Change’…tell me more about that.” And we did. We told him about having trademarked “Agent of Change,” how every one of our employees has the same title, how it’s the essence of our business approach, and most importantly by far, how it’s our mission and mindset as marketers. For us it was easy to define what those three words meant because we live and breathe it each day.  You might say it’s part of our DNA. But for many marketers, those who want to believe that they are an Agent of Change within their organization, it might not be as easily defined. In fact, if I were to ask you right now, how might you define an Agent of Change, you’d probably want a minute to think of a good definition. (At the end of this post, I’ll give you our view on how our firm defines an “Agent of Change”.)

If you’re looking for a dictionary definition, an Agent of Change is someone who “alters human capability or organizational systems or activities to achieve a higher degree of output or self-actualization.” Beginning with the end in mind, the goal of an Agent of Change is obviously to make changes that stick and is the foundation for future change which achieves results that weren’t previously possible.  While this dictionary definition is ok, I think it misses the essence of what it means to be an Agent of Change. It has as much to do with identity and character as it is any definition.

So with that in mind, here are some ways that it feels to be an Agent of Change

Lives in the world of “tomorrow.” Regardless of what is going on today, an Agent of Change has a vision of what could or should be and uses that as the driving force to take action. To a certain extent, an Agent of Change is dissatisfied with what they see around them, in favor of a much better vision of the future. A great place to be!

Fueled by passion, and inspires the same.  Change is hard work and it takes a lot of energy. Don’t underestimate this. Without passion, it’s very difficult to gather up enough energy to take on dreaded status quo that seems to otherwise carry the day. “Status quo is Latin for the mess we’re in” said former President Ronald Reagan.

Understands people. You can’t create the change that is needed if you have no real understanding of what people need or seek. It’s not about what you can do or say but rather about what the customer wants to hear. It’s also not about what you think the customer wants. Instead, you need to know what the customer wants and that sometimes requires digging deep to get to the heart of what motivates people.  Knowing has saved me from my mistaken “I think” a good number of times.

Has a strong ability to motivate themselves to move forward. There are going to be lots of days where people don’t understand and can’t recognize or grasp what’s being offered up as a solution. The Agent of Change needs to find it within themselves to get up every day and come to work and risk being misunderstood and unappreciated.

However, I think the definition also needs to be based on what an Agent of Change does, in addition to the personal traits required.  You see, people are willing to change when the pain of the status quo exceeds the pain of change. Or, when the future looks like it does today or worse. A successful Agent of Change recognizes the opportunity for change, identifies the best approach, and becomes the catalyst that makes the change possible, whether by design, planning, or inspiration. While they can’t do it alone, they’re the force that gets the ball rolling.

Also, an Agent of Change isn’t so much a job title or job description as it is a mentality.  It’s just what they do or how they do it. Like breathing.  They don’t do it only when permitted or told to do so, but rather all the time.  There are very few companies that has someone with the title of Agent of Change because they don’t expect things to change much over time. If you work in an organization where committees are king, you know what I’m talking about.  Sloooowww and steady is the mantra while competitors seize on all sorts of opportunities and grab market share …and new customers. The only “change” this type of company knows is the coin kind in a pocket.

OK, I told you earlier that I would share with you how we see our firm as an Agent of Change and what we told our new business prospect at lunch…so here goes:

Being an Agent of Change means upsetting the normal course of things, turning up the heat, altering the future as it now stands. It’s serving as a catalyst for growth.  Being an Agent of Change is about looking beyond the immediate marketing tasks to consider the entire business environment and how an audience engages with brands in the new marketplace. From that perspective, problems and solutions start to look very different. Being an Agent of Change is about embracing the new marketplace in order to seize untapped sales/revenue-producing business opportunities, delivering real value and long-term sustainable brand credit.  Whether it’s a message delivered through an email inbox or on a national TV campaign, or creating new touchpoints where customers can connect on their own terms, everything we do is designed to communicate a total value proposition and spark a noticeable Change in the relationship between the customer and your products. We do this with a shared sense of urgency in increasing sales, growing traffic count, expanding the customer base, increasing stakeholders, strengthening brand identity and enriching bottom-line revenue.

You can be that Agent of Change within your organization or find yourself an Agent of Change to help because the world is changing…with or without your permission.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

 

 

Move over ROI. Now it’s ROO.

Making this kind of offer won’t necessarily produce an immediately measurable return. But its impact will ultimately return value many times over.

If you’re tracking financial return on investment (ROI) as the sole benchmark to determine if your marketing programs are working, then you need to know that there are other ways in this new world to go about doing so because otherwise you’re missing a big part of the picture.

You see, as much as we like to talk about ROI being a critical metric for marketing success, there are not many organizations that really calculate this metric — I mean really calculate it.  The reason being that linking ROI to business efforts is just plain difficult, especially as a cumulative total, due to the blurring of cross-channel integration, competitive activity and economic and marketplace factors. The truth is, most CMOs have a general sense for what’s working and what’s not with respect to overall marketing spend and therefore overall ROI is calculated with experience and intuition (not on a spreadsheet).

The thing is, marketing isn’t black and white, and there are a number of marketing objectives don’t link directly to revenue / return.  What if the objective is branding or awareness?  You might expect an indirect impact on sales.  You would also measure the success of the campaign very differently; maybe you just want to see if more people visited the website, or visited the store.

Enter Return on Objectives. Analyzing ROO means that you accept and understand that not all goals are measurable with hard data. Sometimes, marketing efforts simply help a business move in the right direction to meet its long-term objectives. For example, it could take the form of a business that develops a social media plan and creates a library of content on its website blog page, Facebook page, YouTube channel, and so on over the course of a year, all of which will undoubtedly move the company closer to its long-term brand building objectives.

There has been and always will be two schools of thought on the value of hard vs. soft metrics. Solely relying on traditional ROI isn’t enough and there will always be marketers who don’t like the fact that soft metrics play an important role in marketing today, but without considering them, a big piece of the story is missing.  For example, the value of word-of-mouth marketing and an emotional connection to brands can’t necessarily be quantified. But that doesn’t make it any less important.  A CEO, CMO, or CFO who ignores the less tangible importance of engagement and consumer perceptions of brands will limit the potential growth of those brands. In today’s world, that’s a big mistake. The best marketing leaders and teams can marry the two — hard and soft metrics — in order to make the best strategic decisions for the company.

Think of it like this: If short-term financial ROI is the single factor with which marketing activity is measured against, many large successful brands would never advertise. For most business types, only a smaller proportion of marketing communication generates a short-term purchase response, and this is particularly true for well-established mature brands.

Investment in marketing communication for some brands should therefore be seen for often what it really is: reinforcing/strengthening favorable brand perceptions and insuring the brand’s strength and status for the future. It isn’t always a math calculation where the dollars spent have to exceed dollars coming in. So much of building brand value is tied to emotional involvement in a brand, and that’s even harder to quantify than social media conversations and sharing. However, I don’t think anyone would argue that emotional involvement doesn’t add to equity (at least I hope they wouldn’t). Otherwise, a brand like Nike would be just another athletic shoe company. Disregarding those emotions because they can’t be precisely quantified would be a tragic mistake.

As well, what current ROI metrics don’t account for are what I’ll call “lurkers,” the people that are watching and waiting to take action. If we as marketers bail too soon based on the short-term analysis of results, then we miss the boat.  How many of us have at one time or another been a “lurker?” All of us, right?

That said, without a doubt most marketers want to prove that the dollars they have invested have achieved measurable success and cost effectiveness. For me, ROO can be defined as the “Total cost of campaign divided by the number of objectives met.”  To do it right, the key to measuring ROO is that specific objectives need to be created from the outset of a project along with a specific end date. In other words, the marketer must plan for measurement at the same time that the campaign is being developed.

So, instead of evaluating success based on revenues, marketers should take a look at measuring returns based on whether their objectives, from brand awareness to customer relationship-building, are met. Completion of these objectives, rather than dollars earned, will determine the success of a given campaign. As a result, ROO results will come in all shapes and sizes, but will not necessarily be defined in immediate dollars and cents…just like the offer in the photo above probably achieved for Plaza Cleaners.

My point is that ROI numbers don’t tell the entire story and relying on hard metrics alone isn’t enough. The hard and soft data is available to you for you to use it. You can bet your competitors are…or will be doing so soon.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

 

The Seven Cardinal Virtues…Of Marketing

business angelA few weeks ago I wrote about the Seven Deadly Sins of Marketing and hopefully all of you sinners out there have repented. Given the response, I thought it might be good to talk about the flipside, the Seven Cardinal Virtues of Marketing. To paraphrase Abraham Lincoln, “Vices and virtues: Can’t have one without the other!” Anyway, as individuals responsible for the marketing activities of the organization, it’s worth reminding ourselves that we do have a responsibility to “behave” in a way that allows for the marketing function to perform its responsibilities in a manner that helps the company survive and thrive.

Patience

In today’s world of “needed it yesterday,” too many marketers see patience as something that can’t be accepted by the company because it’s “just not how we roll.”  Well, as a marketers we need to continue to be reminded that patience is a valuable skill and critically important to the growth of the company.  For example, staying the course of what the brand’s strategy is when you know it is the right course, rather than over-reacting to others’ activities. As well, patience guides how long to stick with your marketing message.  It may feel like it is old and stale to you but that’s because you’re exposed to it daily while prospects and customers aren’t nearly as familiar with it. That doesn’t mean you should keep repeating the same thing over and over again, especially if a better approach is required. Be patient with yourself and resist the temptation to compare your progress to that of others.  Hey, it takes some time to set up a lead generation and follow-up machine that will crank out good results month-after-month, right?

Diligence

Sometimes the best course is to apply a little dose of patience and sometimes one needs to persist and push through the challenge at hand. Be diligent in doing something every day to move your marketing and sales programs forward.  You can always do a bit more to optimize the website, create more content, tighten your message or figure out how to better add value to the selling process. Keep learning the new skills necessary to succeed in a changing marketing world.  Since the web is such a powerful awareness and lead generation tool, anything you can learn about how it works is helpful. With social media becoming an increasingly more visible component in your marketing efforts, be determined to write that blog post, send some tweets, utilize LinkedIn, etc., even when you don’t feel like it. You never know when your efforts will pay off.  In short, it’s keeping the brand’s finger on the pulse of the market, and working to respond properly to it.

Fortitude

News Flash! The marketplace is as fluid as water so the watchwords for the day are “Stay Alert and Stay Brave.”  “The Fast and the Furious” isn’t just a name of a movie series, it’s also how the Net moves. It can also describe competitive activities and certainly how your customers think and take action. Keep in close touch with those factors that will either lead you to success or be the things that will keep you up at night.  Do your best to stay up to date by doing the necessary customer and competitive research by seeing what is being written and said about you online from Epinions to Yelp and many more review sites. Remember, “not knowing” is just that and more than one company has been blindsided by bad sales results because they imagined they knew what was going on in the marketplace and what customers and prospects thought of them.  Sure they did.

Honesty/Justice

Customers know when companies are not being upfront or honest with them by what they see, read or hear in the marketing or advertising. They know when you’re trying to hide behind the small legal type or legal mumbo-jumbo.  And guess what?  As people who really dislike honesty, they bail…and they let others know about it as well.  Conversely, think like your customers: If you had a problem with an order and wanted it resolved, you’d want to be treated fairly—and so would they. Make sure that your marketing material and activities reflect a company who respects and values their customers…because we know that they’re not easy to come by.

Faith/Courage

Believe in yourself and what your company is marketing. Know that marketing does work, regardless of the naysayers throughout the organization from C-Suite to the folks in finance and sales. My business partner is quick to point out that marketing is a self- fulfilling prophecy: If you believe in it, you’ll commit to it, invest in it and give it time to work… and it will. Or, if you don’t really believe in it, you’ll hold back, and guess what? It won’t work, and you’ll be right as well. If we’re honest with ourselves, there are times when we’ve wondered if what we’re doing is really achieving the goals we’ve set forth. Realize that success usually comes only after setbacks. View failure as an unavoidable component of success.

Prudence

Planning and acting can be difficult for a lot of marketers who often fear looking indecisive or making a mistake when the firm’s future—or their job—is at stake. Making decisions that are politically expedient, that travel the path of least resistance or avoid confrontation are dangerous and often unproductive without thinking through the ramifications of the decision. And when that happen, like clockwork, a marketing problem raises its ugly head. To help with that, first listen to what others have to say because the right answer might possibly come from them….really. Second, judge with the information in hand. And then, once you judge the right thing to do, the next thing to do is act. Otherwise, what’s the point?

Chastity/Charity

It’s a virtue combination that in our everyday life we think is important….but is rarely acted upon in business.  Yes, as marketers we’re responsible for communicating a meaningful and unique value proposition that the brand alone can own and then making sure that the audience embraces it both emotionally as well as rationally.  But shouldn’t we also make sure that the brand contributes something meaningful to the market – or even better, the society? A brand should stand for something more than just the product or service that comes from a company. A reputation for being a good corporate citizen only comes through actions that don’t have an obvious ROI attached to it, such as sponsorship or participation in causes or activities that benefit the community because it’s a right thing to do. Think about how as a marketer this chastity/charity mindset could feed the soul of the organization.

As marketers, we realize that the marketplace brings with it many trappings and temptations that could lead us astray from doing the job that both we and the company expect. Recalibrating our thinking and actions to embrace the virtuous side of ourselves in a way that also benefits the organization will lead us to a better place. Let’s go and do good.  Your company and customers deserve it.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

The Seven Deadly Sins…Of Marketing

Not too long ago, I Seven Sins2watching a series on PBS about the Seven Deadly Sins (Wrath, Pride, Envy, Greed, Sloth, Lust and Gluttony) and things started churning in my mind.  So I decided to list my “Seven Deadly Sins of Marketing,” given what I continue to see taking place within marketing and marketing departments across all different industries.

Guessing

In the Dilbert cartoon series, Dilbert says that “marketing is just liquor and guessing.” Funny…but as we know, a bit simplistic. Yet, too many companies assume that there is absolutely no need to substantiate their beliefs about the marketplace, about what their prospects want, about why their customers are buying, about what people think of their brand, about most anything having to do with those whom they want to purchase their products or services.  Generally the thinking is that no one can know the marketplace as well as the company and the market will accept whatever you offer. Guess (pun intended) how that turned out for Kodak, Borders Books, TWA, and certainly some companies in your own industry!  Ask yourself, when was the last time that your company committed the time and resources to do some marketing research…qualitative, quantitative, ethnographic, etc.  And do it right.

Marketing by Committee (Indecisiveness)

I’m not sure why, but when it comes to marketing, everyone seems to have a say. Partners, staff, associates, spouses, and the janitor all want to give their two-cents. How about an accounting committee to help figure out where the credits and debits are posted? Or an office supply committee to pick out the colors of pens you order? Many executives forget that great marketing is not about what they like. Great marketing is about what works.

Committees, by nature, are full of compromises so solutions are usually watered down versions that will wind up doing little or nothing to accomplish your growth goals. Marketing by committee leads to lots of bad ideas and poorly thought out plans. Instead of bold strokes from the marketing brush, you get a sea of beige. And then it doesn’t work. Who would have thunk it! The solution is to decide on objectives and budget, and then write a marketing plan. Once the plan is approved, ONE person gets appointed within the organization to take on the role as “the decider.”  Empower him or her to make all the courageous decisions required to position your company to dominate your category.

Inconsistency

When different aspects of your marketing messages don’t reinforce each other, the inconsistencies alienate prospects and current customers. Inconsistent marketing distorts clear expectations, makes potential customers unsure of the characteristics of your products and creates unhappy customers who don’t get what they expect. These inconsistencies affect businesses by reducing both initial sales to consumers as well as repeat sales from dissatisfied customers. Also, be consistent with your marketing plan. Don’t stop running an ad, for instance, just because the first insertion didn’t ring your phone off the hook. Give your campaign time to work, but you also need to know when a change in direction is a good idea. Remember, people are not paying that much attention to you, but when they do, it helps if the message you’re saying now is similar to the message that they heard the last time.

Complacency

It’s out there right now. Lurking in the shadows of your success. It is the silent business killer that strikes without warning and can bring even the biggest and the brightest companies to their knees. What is this hidden terror? Complacency.  We all know it better as the dreaded “status-quo.” It generally takes the form of “whatever we did last year.” Except, things change. Your competitors are changing things up. Your customer’s needs are changing. The marketplace is changing.  A few things to avoid complacency: Keep looking in your rearview mirror to see what your competitors are doing. Listen to new ideas as the next big idea may not come out of your own mouth. And, strive to always do better even before you are forced to react to a competitor’s challenge.

Lack of Focus

Okay, so after reading articles by “experts” about how you should have a customer engagement program in place (so you can be more “customer-centric”), you’ve put your company on LinkedIn, YouTube, Facebook, Twitter, Google+, and Pinterest. Heck, you’re even ready to go when the next big social media platform launches. You’ve got your product literature online, and your Web site has a blog and videos. Not to mention all the offline activities ranging from tradeshow activities to advertising to PR, etc. But why did you believe you needed to be in ALL of these social media locations in the first place, and, just as importantly, who is making sure that all of these activities work together?

Narcissism
It’s ridiculous that I have to say this but the memo has not reached the desk of many marketers, so here goes: “It’s not about what your company wants to say but rather about what the customer wants to hear.” (I feel better having said it.) Look, if you want to market based on your personal preferences without regard for what works best with your prospects, that’s your prerogative.  But I’d suggest that your company’s marketing not be so self-absorbed. Remember, you don’t buy from you, others buy from you and they don’t care about your business and your troubles nearly as much as you do. Most people are tuned into Radio Station W.I.I.F.M. —“What’s In It For Me!” If your marketing message is all about you, then your customers won’t notice what you’re saying.  Please begin to “tune” into your customers, find out what they really want and focus your message on them.

Confusion

Maybe, just maybe, the deadliest marketing sin of all is not having one over-arching marketing strategy – and insuring its implementation through all your tactics.  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 considering if you’ve chosen the right road. You wouldn’t haphazardly set off on an important trip in your car so why let it happen with regard to your company’s marketing activities. 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. What is needed 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.

Yes, there are more Deadly Sins that I could have talked about, like trying to be a “do-it-yourselfer,” or not measuring your activities, or saving yourself into bankruptcy, but the above are the Seven Marketing Sins I rank topmost.  Now, let us all go out and to the best of our ability, sin no more.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

 

The Dumbing Down Of Marketing

man-in-dunce-capcropOver the past year, I’ve been having a conversation with clients, co-workers, friends and family about “the state of marketing” and the results are in.  Marketing (and its various forms) seems to be dumbing down more and more. And since I’m not wired to accept mediocrity or any real form of laziness, allow me just this one time to channel my best Peter Finch (in the movie Network) and say “I’m as mad as hell and won’t take it anymore!”

Can someone please tell me why this is going on? In what forms does this dumbing down of marketing play itself out? Well, for starters, open up any newspaper, magazine or trade pub. Turn on any TV or radio station. Drive down the street and look at the billboards or bus panels. And even online.  It’s all around us… at home, at work… even on vacation. There’s isn’t a day that goes by where I don’t see some sort of advertising or marketing effort and say “what in the world are they trying to say?” This coming from a guy who, as humbly as I can say this, can put 2 and 2 together pretty darn quick. But the mental gymnastics that I have to do to try and get the point, if I can get there at all, is becoming more and more prevalent. In most cases, the message is convoluted. Other times, the message is beyond generic so much so that any company in that industry (and in many cases, in another industry) could say the same thing. Oh and then let’s not forget about puns or borrowing from successful campaigns (“Got Dog Food?”  “Got Rice?”)  Many times the channel isn’t right for the message and the message is obviously shoe-horned into the event or activity. Whether B2B or B2C environments, it goes on. Please tell me that you’re seeing the same thing. You are, right?

Additionally, I’m gobsmacked (haven’t used that word in a while) at the type of “discussions” on issues that are being pondered within some of the LinkedIn groups of which I’m a member. From the “Is it important that Sales and Marketing be on the same page?” to discussions that people dare not ask of their coworker “How do I go about finding a direct mail printer?”  Not to mention the blogs that deal with the details of details. On top of that, there also seems to be this craze for incorporating each new marketing tool, channel or approach (“the next big thing”) as though it will be the silver bullet to all the company’s marketing problems. And, to make matters worse, there’s a sprint to implement each new specialty, and in doing so, marketing starts heading down the slippery slope of actually getting further away from understanding the real world in which prospects and customers make purchasing choices. I think we can agree that this is neither good for the organization or for business as a whole. Not good at all.

OK, at what point in time was it decided that DIY is as good as what a successful outside marketing firm could provide? My business partner coined a phrase that I really like: “DIY is pervasive but hardly persuasive.”  Yet it seems to be what we’re seeing in the world today. The seemingly fun and economical do-it-yourself route usually leads to less than optimal results. Just because one understands how to use some design software doesn’t mean the outcome will help in achieving the goals set for that individual piece of marketing material.  I think that we might all agree that what separates the best work from the rest of the herd is what one does with the tools and not the tools themselves.

Another way that I see dumbing down happening is but the shear amount of specialization that goes on. This is not to say that being a specialist is a bad thing…it’s not… but as the marketplace continues to evolve and in so doing become more complicated, there are lots of marketers who know more about less and less due to being so specialized. What I mean is that these “specialists” are so focused on what they’re good at, they forget that you can’t solve an equation by concentrating only on parts of it. They can’t see the forest for the trees!

So how did this all come about? Well, as CEOs and CMOs whacked away at their marketing budgets over the last decade, they stopped hiring the most experienced and talented marketing professionals, the guys and gals with real degrees in marketing and gray hair earned on the battlefields of brand-building.  Instead, they hired people with “3-5 years experience” or moved over someone from human resources or finance or even the clerical pool to fulfill the marketing. Or they brought in specialists with social media or website experience and made them responsible for the whole marketing affair. Is it any wonder, then, that we’re seeing the kind of marketing on exhibit every day?

With the marketplace getting more complex and customers becoming more sophisticated than ever, now’s not the time to dumb things down but to think and behave like smart marketers once again.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

 

Which half of your advertising is wasted? The definitive answer.

Wide horizontal double tearRetail pioneer John Wanamaker was famously quoted “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”  It’s the dilemma of marketers whether they’re in retail or manufacturing, whether they’re spending tens of million dollars a year on marketing or just ten thousand.

As catchy as the quote may be, it’s not really that difficult to parse the answer.  After all, there are only two fundamental components to advertising: what you have to say and where (or to whom) you say it.  The half most advertisers spend the bulk of their money on is the “where,” which really means the media.  So when the advertising results in a resounding thud, all that expensive media gets the blame.  I can’t tell you how many times I hear a new client tell us “I’ve run in radio and it doesn’t work” or “We don’t use billboards, that’s a waste of money.”

Gentle readers, here’s the simple truth: if the message is not compelling, you can quadruple your advertising spend and still get dismal results.

Let’s put it in human terms.  The guy who’s popular at a big party will be popular at a small party. The guy who’s a bore at black tie gala will put people to sleep standing at a car wash.  So, in short, it’s primarily all in the messaging.  What you choose to do at this juncture is what will affect everything that follows.  So here are some ways to think about making both halves of your advertising dollars work for you:

  • Start with a powerful strategically-based marketing message.  This is the very foundation of your entire marketing effort.  If this is faulty, nothing will stand on it.  Make sure you have a point of view that is completely unique to your firm alone, that your competitors aren’t also saying.  Be sure it’s a compelling message that would motivate someone who is already leaning toward the competition. Merely showing your group photo or facilities, using a pun for its own sake or relying on clichés are non-starters as far as marketing messages go.
  • How you say it is nearly as important as what you say. Invest in exceptional creative execution.  Your compelling message still needs to stop people in their tracks before it can do its job. I’ve long said that “Creative” exists as the most effective delivery vehicle for the message. Use the very best talent you can afford both in wordsmithing as well as in design.  Here’s the nexus where you’ll either be wasting your ad budget or making it soar. Many advertisers will spend next to nil for the ad’s creation (getting what they paid for), only to blow tens of thousands of dollars on the media to get a lot of people to ignore their ignorable ad.
  • Have patience.  Even great ads don’t work instantly.  Your audience isn’t waiting for your ad to appear.  But great advertising is highly erosive, wearing down the indifference so that when the right moment comes – or your salesman calls – the audience is ready to buy.  Nearly everybody remembers the brilliant Apple campaign, “Hello, I’m a Mac. I’m a PC.”  But the ads still had to run some length of time before people not only remembered the spots but acted on them as well.
  • Make certain that the entirety of your marketing is in step.  If your ads are cutting-edge but your website is still an antique, or if you’re not fulfilling the ads’ promise on all other fronts, you can’t expect optimum results.  Advertising is synergistic.  And cumulative.

So, in essence, getting your money’s worth starts at the very beginning, not at the end.  Putting the bulk of your focus on messaging, rather than media, will be much more rewarding.  Oh, and while we’re at it, D-I-Y is pervasive – but hardly ever persuasive! Try this on for size: open up 5 trade or consumer magazines and tag or cutout 10 ads that stop you in your tracks… ones that convey a strong value proposition, ones that you wish your firm had done! My completely biased but nevertheless absolutely accurate guess is that all 90% of those ads you clipped out were created by a marketing or advertising agency.

Also, don’t substitute hard-core strategic homework for a clever headline. And don’t think that the media selection is wrong when the creative you’re placing in it is what’s sending your audience running in the wrong direction.  (I’ve seen humble bus benches create insanely great response when used creatively.)

There.  Now you know which half of your advertising needs more of your love.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

 

Losing Sales to Marketing Fallacies

no-sale-signAs a partner in a thriving marketing firm that targets companies with $20-$100 million in annual sales, one of my responsibilities is that of business development. While I learn something in each conversation with people in marketing leadership positions, many times after I hang up the phone, I say to myself, “there’s another one who’s losing sales to their competitors!”  Mainly that’s because these folks have adopted some misconception about marketing as the “truth” that they can’t and won’t let go of no matter what. So while they say they’d like their sales to be stronger, their year-over-year sales won’t change much or, in some cases, will decrease from one year to the next.

So, let’s do a quick run-through of 5 most common fallacies that I hear. Hopefully none of these sound as familiar to you as they do to me.

I can grow my sales and “share of pie” with a smaller budget than my competitors

When I hear this, it generally implies two things to me:  1) Either your competitors are wasting a big portion of their marketing budget on initiatives or messaging that doesn’t connect with the customers or, 2) your marketing partners are fantastic because they’re willing to work for less than the average market price in order to do the wonderful work they do…which I have a hard time believing is the case.  Oh, and then let’s not forget about the inability of these companies to track how much money the competitor is actually (over) spending on marketing.

The reality is this: if your company is spending a good deal less than the competition, you’re probably not making any significant gains in market share. Yes, there might be a competitor that’s overspending, but my experience working with companies from the Fortune 100 to small mom-and-pops is that you don’t pose a serious competitive threat unless your marketing budget is in the same ballpark with your competition….it’s just one of those “marketing truths.”

Marketing’s role is to generate new business

You’ll get no argument from me that one of the jobs of marketing is to generate new business, directly or indirectly.  But just as important, marketing’s role is to make existing customers come back for more, that is making customers loyal to the brand.  Many businesses are so focused on attracting new customers that they tend to ignore – or even walk away from – the existing ones. Yes, new customers are constantly needed, but truly successful companies prosper on their ability to retain the customers they’ve already acquired. The reason is simple: finding new customers is expensive and time-consuming. Let the following research statistics wash over you….

  • The cost of acquiring a new customer is estimated at 6 to 7 times what it costs to maintain a current one.
  • The probability of selling to an existing customer is 60 – 70% while many companies consider a “get new customers” campaign successful if just over 5% of the prospects contacted end up buying.

New business is always good but don’t forget who’s paying the bills.

We’re looking to be more visible with our customers because it leads to better engagement

Reaching the right balance between quality and frequency of the message requires careful consideration.  There is a common belief among some that the more we communicate with our customers, the more “engaged” they will become. In fact, not knowing when to “zip it” is a classic marketing mistake that too many marketing people make. If marketing is about building relationships with customers, over-marketing is the best way to kill the relationship and send the customer or prospect heading for the door.  A social engagement study entitled “The Social Breakup” prepared by ExactTarget, provides clear evidence of what happens to customer relationships when the marketer comes on too strong:

  • 91% of consumers have unsubscribed from permission-based marketing emails
  • 81% of consumers have either “unliked” or removed a company’s posts from their Facebook.

Guess the biggest reason people break up with companies? (Drum roll)…Too much marketing. The study showed that:

  • 54% of consumers unsubscribe when emails come too frequently;
  • 63% of customers have “unliked” a company on Facebook due to excessive postings.

In short, increasing the frequency of communication shouldn’t be your marketing goal. Constantly improving content quality should be.

We don’t need a marketing firm because we can do it in-house for less

It’s the #1 thing I hear the most. A survey conducted by American Express Canada shows that “84% of small business owners say branding is important to overall business success, but only 14% hire third-party experts to help with branding.” I am not surprised by the results, and I can only guess the reasons: agency expense, the desire to have full control over the creative process, poor prior experience with an agency, or possibly the ability to make changes faster on one’s own. So, instead of looking for an outside marketing partner, many companies decide to hire a “marketing person” who wears many hats: graphic designer, social media specialist, copywriter, etc. Let’s be honest, no marketer can be a specialist in everything, unless the company is willing to cut corners on how it presents itself to the world.

Now please understand, I’m not trying to bash the in-house marketing department as there are a lot of smart and talented people out there working for companies. Rather, my point is this: the right outside marketing partner will bring a focus to the marketing initiatives or project, resulting in faster execution time; will come in with an original point of view – more in line with how your customer will interpret the messaging; develop much fresher creative (no “vanilla” wallpaper stuff that gets passed over, and; deliver a much higher level of production quality. Try this on for size: open up 5 trade or consumer magazines and tag or cutout 10 ads that stop you in your tracks… ones that convey a strong value proposition, ones that you wish your firm had done! My completely biased but nevertheless absolutely accurate guess is that all 90% of those ads you clipped out were created by a marketing or advertising agency.

We’re looking for something beyond traditional marketing because that kind of advertising is dead

The internet is chock full of  advice on how your company should abandon traditional “old school” communication methods and make the switch to online. It would seem like TV, print ads, billboards, and radio are dying and not worth considering in the overall communication strategy.  Yet, research (and lots of it) say this is an incorrect assumption. I think we can agree that the best marketing communication strategy uses a mix of offline and online tactics to reach the target audience. (Do yourself a favor and visit www.marketingcharts.com and subscribe –it’s free. Here you’ll get daily research updates on a wide range of topics including how traditional channels are preferred over digital depending on the audience.)

While it’s true that more money is shifting towards digital, the traditional marketing channels are still heavily required in many business environments. In fact, when Google started getting serious competition, they started running…wait for it…TV ads!  When Dollar Shave Club saw that their growth was limited by only online marketing, they started using those old, traditional channels that have in turn made them a rising star company.  When there’s a product launch, a sale or just about any other occasion where you need to reach a mass audience quickly and effectively, there’s still no substitute for paid media…and even the dot-coms know it.  Think about this, in 2014, the average cost of a 30-second Super Bowl ad was more than $4 million. No CEO or Marketing Director would ever approve such a budget without taking ROI into account, right?

So as I noted earlier, hopefully none of these sound familiar to you. But if on the other hand you’ve heard or said one of these things in the past, know that a lot of confusion, frustration and unrealistic expectations can be eliminated by seeing the world through a different set of lenses.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

Five “Pins” to More Successful Marketing

As we all know, Pinterest and Instagram have become staples on the social media scene. The right visuals (from photos to quotes to inspirational messages) have great appeal and serve as motivation for many.  With that in mind, here are some interesting visuals coupled with some content concerning marketing issues that face marketing teams almost daily as they work towards creating the change in the way people use and interact with their company’s products or services. Short, sweet and fun.  Click away! Beautiful Day

The average attention span today is roughly 9 seconds…like that of a goldfish. Nine seconds to communicate a message, earn a little bit of loyalty, build a little bit of trust so you can continue the conversation before your customer starts getting distracted!  So what could you possibly say in that time or less to get someone’s attention? It starts with presenting your message in clever and unexpected ways. It grabs people’s attention and has them focusing on the message and not thinking about the other stuff that could come into their mind. They’re engaged and captivated. In doing so, it allows you to persuade them, get them to trust you, get them to believe you, get them to want to connect with you. A shift in perspective from speaking about yourself to speaking from the audience’s point of view can be remarkably effective.  Witness a beautiful commercial for a British online content company featuring a blind man whose original cardboard sign talks about himself, “I’m blind.  Please help.”   But when a caring passer-by changes the words to be more audience-focused, something powerful happens. The symbolism is powerful. To read more, click here.

Shiney

Social media as a pathway to sales is almost certainly not going to work to the degree you want. There…I said it. While social media can be a valuable marketing tool, it’s not magic and it cannot and won’t replace everything that came before it. There’s no quick success and very few programs break through. Coca-Cola says it can find no correlation between “buzz” on Twitter and actual unit sales. Nissan admits it has no idea if social media helps it shift cars. MasterCard can’t tie its social investment to revenues. Don’t take my word for this. Go online and do your own research and see for yourself. In fact, there remains little evidence social media does anything to boost brands’ bottom lines. So then why use social media at all?  The reason is that it is an impactful vehicle for empowering advocacy and we know that’s extremely important for brand health and profitability.  Social media, if done right, can capitalize on what brand equity your company has already built up. To read more, click here.

Crazy PeopleWhen was the last time you/your marketing team asked the question “I wonder what would happen if we ________.”Crazy ideas have changed the way we go about living our lives.  Knowing this, why is it that many marketers still don’t trust the crazy idea when it shows up unexpectedly especially, since crazy ideas, not safe ideas, are the game changers that propel companies forward?  In today’s competitive, me-too world, if your product isn’t a legitimate leader in a category, it’s certainly a far better choice to come up with a new value story around your own product or service rather than trying to compete price-wise on the value that was generated by a competitor. You might want to be thinking about a crazy idea that will create a new meaning around your brand. Embrace that mindset so much so that the next time an idea is presented by your marketing department and someone outside of that department says “That’s a crazy idea,” you’ll say, “Thanks, we love it as well!”  To read more, click here.

Middle of the Road

If you want to have passionate customers and dedicated partners, you must first inspire strong responses.  But as you attract fans, you’re also bound to get the critics or “Haters.” It’s OK to have some folks (not too many, though) who will not like your brand.  The undeniable reality is that if you’re not eliciting a negative response from someone somewhere, then you’re probably not that fascinating to anyone. Think about it, even Apple has Haters as does Starbucks and it hasn’t hurt them.   Alternatively, you have the advocates, evangelists, loyalist…the Lovers. They don’t just buy your product or service, they also accept price increases and forgive occasional “issues.”  They’re loyal and not just buying your products for price or utility.   In the middle are the Lukewarmers. They have a really bad habit of not caring.  They won’t buy your product unless it’s the cheapest or most convenient option which means they’re only buying you until a cheaper or more convenient alternative comes around. In today’s marketplace, this middle ground is death!!  Not caring is not buying. Not caring is inaction.  The world is not changed by people who sort of care or don’t care at all.  Stop focusing on the Lukewarmer.  Start by having your marketing and advertising be imaginative, original and fresh.  To read more, click here.

Ben and Jerrys

Having dealt with all sorts of companies and people, I believe the Number One reason for boring  “vanilla” marketing messages is the result of trying to please all the people all the time. Fighting the desire to be all things to all people lets you: 1. Stand out from the herd; 2) Attract the like-minded; and 3) Create stronger connections. Vanilla brands might not have enemies, but they also don’t have passionate advocates whose enthusiasm spreads.   In order to win the race, you can’t stand still. Vanilla marketing is standing still. To stand out, to be different, to be memorable, takes boldness. It takes being “a real Marketer”. So, however you go about it, stop defaulting to dishing out plain vanilla marketing and start scooping out interesting flavors (think “Cherry Garcia”; “Chubby Hubby”; or “Chunky Monkey”, etc.) that stand out and are uniquely your own. To read more, click here.

So there you have it. 5 visuals that speak to different marketing challenges and opportunities. Maybe these visuals will stick with you for awhile and even change the way that certain projects, campaigns and programs are developed and executed.  Seeing is believing.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

Here’s to the Crazy Ones

Jobs bigWhile driving in my car the other day, I was thinking about the recent Mazda TV commercials featuring people that invented something that we commonly use in today’s world.  Suddenly, I blurted out something that had me stumped by my own question: “Where do all the crazy breakthrough ideas come from?” And when I say “crazy”, I mean crazy as in unexpected… revolutionary…the WOW kind. Well, after doing some quick online research, it turns out that “formless thought (the stuff that just pops into your head) in a creative mind” is where “crazy” ideas originate from.

Many of the products that we can’t seem to live without today started out as crazy ideas – ask the Wright Brothers or Henry Ford or Bill Gates or Steve Jobs or the “Mazda Guys” like Bill Simpson – inventor of flame-resistant racing suits or Martin Cooper – inventor of the mobile phone.  Or Netflix, Costco and so on. At the time, it was stuff that nobody needed or was asking for (maybe because people didn’t see a problem that needed fixing), but once developed, it was just the thing that people were waiting for. And each idea proved to be a big success in the marketplace. These crazy ideas have changed the way we go about living our lives and it all started as a formless thought.  Knowing this, why is it that many marketers still don’t trust the crazy idea when it shows up unexpectedly especially, since crazy ideas, not safe ideas, are the game changers that propel companies forward.  On the other hand, safe ideas are the ones you can more easily assume will work before it takes form in the world. (Note: That said, I’ve never quite understood the concept of guaranteeing a new idea will take hold in the marketplace before it actually gets produced, introduced and marketed. With so many factors involved in making that happen, who can do that?)

In some ways, I think crazy ideas are like the ancient fire that early humans feared until proven helpful.  Once these humans first learned that fire made life a lot easier – from staying warm to cooking meat – the idea spread like wildfire (pun intended) and was widely accepted as necessary for a more comfortable survival and not something to avoid at all costs. I believe crazy ideas are like that as well.

In today’s competitive, me-too world, if your product isn’t a legitimate leader in a category, it’s certainly a far better choice to come up with new value story around your own product or service rather than trying to compete price-wise on the value that was generated by a competitor, right?  So, if you do find your company ranked 3, 4 or lower in your industry, you might want to be thinking about a crazy idea that will create a new meaning around your brand. Think of it like a “Blue Ocean” strategy.

Two examples come to mind…LA Gear (athletic shoe brand-late 80’s) and Swatch (watches).

In both of these cases, as their larger competitors were keeping an eye on consumer needs related to performance features, both LA Gear and Swatch had the crazy idea that people, and lots of them, were more interested in how they expressed their own personality and style, and these people were willing to pay more for products that helped them do it. In the minds of the customer, these products functionally did what competitive products did…but these products also spoke to them on another level.  And in doing so, these two “crazy” companies each created a new category and a competitive advantage that they had all to themselves.

OK, so now what?  Well, from where I sit, if your brand/product/service is to prosper in a world that’s driven by the daily creation of crazy new ideas, your company will need to choose whether their marketing department, and their activities, will operate from a creative platform or competitive platform.

When your company operates from a competitive platform, it can only win by having somebody else lose, similar in look to that of a “Red Ocean” strategy. Here companies try to outperform their rivals to grab a greater share of product or service demand. As a result, crazy ideas that are formless and unproven will be quickly be dismissed in favor of the known and the “proven.” Typically the marketing messaging and activities for companies operating from a competitive platform are uninspiring, forgettable, and 2nd tier level within their specific industries. They’re totally devoid of connecting with the customer on an emotional, human-to-human level in part because BIG data has played a huge role in the product coming to market. These messages don’t even register a blip on your consciousness radar screen…they’re that uninspiring.

Alternatively, if your organization operates on the creative plane, it will have a compelling reason for being. It will develop products that redefine the category, fascinating customers with the unexpected, making competition and pricing (in most cases) irrelevant. It’s the type of organization where people don’t settle for the status quo and find “crazy ways” to fill in the blank part of the question, “I wonder what would happen if we ________.”  In the movie rental business, “What would happen if we didn’t charge late fees?” Thus, Netflix.  In retail, “What would happen if we sold quality products in larger/bulk quantities at the lowest possible prices?” Viola: Costco.  This creative plane is where so-called crazy marketing ideas are constantly brought to the forefront for consideration. Where non-traditional thinking isn’t immediately shot down because it doesn’t conform to the “we just don’t do it that way” type of thinking. It’s where your competitors say “why didn’t we think of doing or saying it that way?”

Let me ask you a question: What will your company innovate or creatively say in 2014 that will differentiate your business by bringing higher value to your customer base? My vote would be to get crazy, to break away from commonplace. Embrace that mindset so much so that the next time an idea is presented by your marketing department and someone outside of that department says “That’s a crazy idea,” you’ll say, “Thanks, we love it as well.”

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

From the mouths of Mad Men

MADMEN-logoI was having lunch with a friend who is well-respected and recognized in the advertising industry (age of “Mad Men”), when we both started reciting well-known marketing/advertising quotes and how there are as relevant today as they were 40 to 60 years ago. Unfortunately, too many marketing director types immediately dismiss these pearls of marketing wisdom because they think “that was then and this is now.” The problem with that type of thinking is that these people are doomed to make the same mistakes over and over again because they don’t get one important fact: marketing has the same challenges as it did years ago which, in short, is the need to differentiate your message from competitors so people buy your product or do business with you.  It’s we just have a lot more channels to contend with today.

So, here are five famous marketing/advertising quotes, with a few thoughts on how they relate to your efforts, whether you’re a social media manager, content marketer, or advertiser:

1.  “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 until you do and say things imaginatively, originally, freshly.” – Bill Bernbach

My all-time favorite advertising/marketing quote because it really goes to the heart of getting your product or company’s message recognized and acted upon. If you believe what Mr. Bernbach says, and frankly, how can you not, then the whole idea of developing uninspiring, status-quo, “beige” marketing messaging should never be settled for again…ever. Why put forth the effort of creating something that becomes largely invisible to your audience? This quote goes hand in hand with another Bernbach quote:  “You can say the right thing about a product and nobody will listen. You’ve got to say it in such a way that people will feel it in their gut. Because if they don’t feel it, nothing will happen.”

2.  “When you reach for the stars you might not quite get one, but you won’t come up with a handful of mud either.” – Leo Burnett

I’ve worked both on the agency side as well as the client side and to this date, I’m still shocked at how often the client thinks so little about the growth opportunities for their product or service, while the agency thinks that the product or service is just the “cat’s meow.”  Don’t be an “Eeyore-type.” Think big! While there’s also something to be said for having realistic expectations about what you can achieve, there’s nothing wrong with having big dreams and aiming to make them a reality.  If you aim a little higher you might just find yourself achieving things that you might not have thought possible.

3.  “Why keep a dog and bark yourself?” – David Ogilvy

If you’ve decided that working with a marketing firm is going to help you communicate your value proposition in ways and forms that you otherwise might not have come up with, then believe in the abilities of those you’ve entrusted to do this and step away from playing copywriter or art director. Yes, you’ll know your product much better than the agency in the same way the agency knows how to communicate it to the marketplace much better than you. In short, collaborating is a good thing. Dictating to your marketing partner, well, that’s not how to get the best work done.

4.  “I’d rather apologize than to be so timid as to never try and do anything smart or brave.” – Lee Clow

Lee, who created legendary advertising ranging from Apple Computer’s “Think Different” to the Energizer Bunny to Taco Bell’s Chihuahua to California Cooler, knows of which he speaks. The reason these brands became megabrands is because they recognized good work and weren’t afraid, yes, unafraid, to put it out there for the world to embrace. They rejected the status quo. While your company might not ever become a megabrand, it certainly has in it the ability to fascinate your audience more than it does now and in doing so make your competitors say “Why didn’t we think of that!”

5.  “On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent eighty cents out of your dollar.” – David Ogilvy

The headline or title of your ad, blog post, collateral piece, Twitter post, YouTube video, etc., is the most effective way to get people to give you the 8 seconds of attention that you want before the reader decides to move on to something else.  In short, the purpose of your headline is to get people to read your first line. The purpose of your opening line is to get people to read the next one.  If you don’t embrace – and more importantly, implement – this principle, you’re going to miss out on a lot of readers. Employ headlines that stop the prospective customer.  Don’t let it be anything but scintillating.

OK, I was going to stop at 5 but I thought of five more quick ones that really should be on anyone list of remembered marketing & advertising quotes:

“The consumer isn’t a moron; she is your wife.” – David Ogilvy

“Rules are what the artist breaks; the memorable never emerged from a formula.” – Bill Bernbach

“Creativity may well be the last legal unfair competitive advantage we can take to run over the competition.” – Dave Trott

“Stopping advertising to save money is like stopping your watch to save time.” – Henry Ford

“Don’t tell me how good you make it; tell me how good it makes me when I use it.” – Leo Burnett

So take these inspirational quotes to heart and make your advertising and marketing ancestors proud! If you want your brand and products to get more noticed in today’s media-saturated world, you might not have to look any further than the original Mad Men and marketing legends. Their legends for a reason!

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.

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