Marketing Management - 5 Things To Get Right - From The Start

Minimizing Confusion, Frustration, And Second-Guessing

By David Miranda

During a Q&A session after speaking to an Executive MBA class, I was asked a familiar question from one of the candidates. Of course, all of these bright men and women had day jobs, some in the marketing discipline. The question was asked with some obvious frustration stemming from his current work environment. He asked, "I find myself continually frustrated in working on various marketing initiatives. We can't seem to consistently get our act together. If it's not one thing, it's another. Sometimes we don't have enough funding. Sometimes we aren't provided the necessary support or access to company resources. Sometimes we don't have the right people on the project. Sometime we don't even know where we're going. Is there a better way or should I change careers?"

No, don't change careers.

It's a familiar question that I hear frequently. The problem is primarily due to management not appreciating the dynamic process that is involved and what must be done to enable people to be successful. It is not enough to say "Here is what we need to do. You people are smart. Let's get it done." Of course, I am simplying, but typically people are sent off on marketing quests assuming they will figure it out. That's what they get paid for. This is usually not the case. In the majority of cases when post mortems are conducted on unsuccessful marketing initiatives, the problem is identified with a bad beginning. The adage, "things that start badly, end badly" fits well here.

In order for a marketing initiative to be successfully executed for optimum results, five key elements need to be aligned and working in concert. These include a strong and clear vision, a team with strong and appropriate skill sets, performance incentives, the resources or funding necessary to implement the initiative, and a concise action plan specifying the who, how, when, and what to do including performance benchmarks and expected results.

The attached chart illustrates what can happen when one or more of these key elements is missing or lacking.

• Without a clear vision, confusion is more than likely to percolate.
• Without the proper skills, team anxiety can occur, i.e. "do we have the right talent?"
• Without performance incentives, things progress with less gusto and more gradually
• Without the necessary resources and funding, frustration will set in.
• Without a clear action plan, there is likely to be many false starts.

In summary, it is critical for marketing initiatives to get off on the right foot. Understand the importance of the five elements working in concert or be prepared to deal with consequences.

And as for the Executive MBA candidate, I told him that marketing needs people like him who ask questions. Keep asking and don't let school interfere with your education.

"Hello, Dave. Will You Be Searching For Anything Today?"

Binary Marketing - How Computers Are Influencing The Marketplace

By David Miranda

We all remember the most compelling character from Stanley Kubrick's film classic, 2001: A Space Odyssey - the HAL 9000 ( which stands for Heuristically programmed ALgorithmic computer), the artificial intelligence on-board computer that runs the entire spacecraft, Discovery. Today, we have new HALs. They go by different names - names like Google, Yahoo, Lycos, and Ask.com, for example. They are search engines - heuristically programmed algorithmic entities that determine what results we are given when we search the Internet. Like HAL, without the voice recognition enhancment, these search engines are a powerful force in the marketplace - a binary dynamo influencing choice.

Historically, the mission of marketers was to influence the potential buyer to prefer their brand over competitors using a myriad of marketing and sales tools and techniques. The landscape now has dramatically changed. Search engines have the power to put your brand in the top tier of a results screen. How? Heuristically programmed algorithms. Getting to the top of the list requires more than marketing. It requires sophisticated mathematics - trying to understand how the system works and how to beat the system. The formal term for it is "search engine optimization." Companies and agencies are adding computer scientists and mathematicians to their ranks in growing numbers - individuals who attempt to influence the artifical intelligence, not the consumer.

It is a binary marketing age where the language of success is ones and zeros.

The traditional marketing mission of influencing potential customers will still be the prime objective of any company, but smart firms must realize that this will not be enough anymore. As the Googles of the world gain even more market influencing power, companies will have to understand this cannot be ignored or do so at your own peril. Computers will have more and more influence on the information a person receives including what, when, where, and how.

As we move into a voice recognition marketplace, HAL becomes less fiction and more reality.

For example,

"Good morning, Google. I would like to search for a real estate attorney in the 31002 zip code"

"Good morning, Dave. I have found seven real estate attorneys for you in the 31002 zip code. May I recommend the firm of Jones, Powell, and Crawford? I'm showing they are the most popular choice of recent searches."

Far fetched? Think again.

Great Brands Are Like Great Friends (Or Friends You'd Like To Have)

Or As Dale Carnegie Put It - How To Win Friends And Influence People

By David Miranda

The photo on the upper left is sign language for the word "friend". As a consumer (or a client), there are many brands who want to be your best friend - and they try very, very hard. Today alone, hundreds of millions of dollars have been earmarked to befriend you and your wallet. The solicitations are everywhere - on TV, the radio, newspapers, outdoor signs, the internet, your mailbox, in elevators, washrooms, on buses, flyers, by paid spokespersons, grocery carts, salespeople, brochures, airports, your mobile device, movie theaters, infomercials, powerpoints, etc. etc. Think for a moment. How many of these solicitations worked? How many of these brand "friends" did you open your wallet to? Chances are none, zip, nada. But no need to worry. They'll be at it again tomorrow. There are ways, however, to make all this effort a bit more productive. It's winning friends and influencing people along the way.

How should brands win friends and influence people? Let's start with some simple basics.

1. Friends are good listeners.
Do you listen to your audience? What are the problems that you can solve? What are the things important to them? What is it that you can deliver that can make their lives easier, better, more satisfying, more rewarding?
2. Friends are there when you need them.
How is good is your customer relationship management? Do you respond quickly enough? Are you empathetic to their situation?
3. Friends appreciate friends.
Do you recognize loyal patronage? Do you know when they stopped coming and why? Do you make an effort to win them back?"
4. Friends look out for each other.
Are you proactive with your customers or clients? Do you alert them of upcoming events or trends that could affect them positively or negatively? Do you put their friendship over your economic gain to insure their long term business?
5. Friends communicate regularly.
Do you have a formal process of communicating with your customers and clients - soliciting feedback on their continued satisfaction or suggestions; providing updates on new products and services; or welcoming testimonials and recommendations to others?

Winning friends and influencing people is not a daunting task, but it is one that requires commitment and perseverance - and it must start from the top. It's time to take a good, hard look in the mirror and see the reflection of your company to others.

I'm only telling you this as a friend.

Marketers: Say Goodbye To "Think" And "Try" And Say Hello To "Know" And "Can"

Changing Verbs Can Influence Marketing Success

By David Miranda

There are two types of marketers-those that think and try and those that know and can.

Let's examine the former - the marketing majority.

When faced with a challenging task, they respond with "I think we can do a good job and we will try our very best. Sounds reasonable, but what if the person who made this comment was an airline pilot, brain surgeon, criminal defense lawyer, pharmacist, dentist, lifeguard, babysitter, or accountant, this statement surely might give you reason to find someone a little more sure of themselves.

We all remember the children's nursery rhyme of the little engine that could. As it pulled its cars up a steep incline it muttered to itself "I think I can, I think I can" and then there was that moment of truth. The little engine substituted the word "can" for "think". "I know I can. I know I can". And then - success. He could, indeed!

I can't tell you how many times I have been in business meetings with experienced and highly educated marketers and agencies who, when asked if their plans will work, have responded with "I think we have the right plan and the right people. Let's give it a try". Compare this to individuals who respond, "I know we have the right plan and the right people. We can do it." Which of these inspires the most confidence? The answer, of course, is rhetorical.

One might argue that there are no guarantees in life and it is better to hedge one's bets - underpromise, overdeliver. Problem is we are dealing with real money.

In business today, good marketers are expected to "know" what they're doing and "can" accomplish their mission. Just like we want pilots who know they can fly a plane; brain surgeons who know they can operate; and lifeguards who know they can save lives - we want marketers who know they can deliver the goods.

So start now. Change the verbs "think" and "try" in your vocabulary to "know" and "can" - and mean it! Then watch the difference in your own performance and the impact on those around you. Chances are you will have more people knowing you can get things done - beginning with yourself.

I know you can do it.

Everyone Thinks They Are A Marketing Genius

Marketing Joins The Top Ten List Of Things We All Think We're Good At

By David Miranda

The human spirit is a wonderful thing. Long live the human spirit.

If you are one of the millions of Americans who watch American Idol, particularly the tryouts, you can't help but grimace, smile, chuckle, cringe at those contestants who think, not only that they can sing, but more audaciously, think they are the next American Idol. Like the title of Sen. Barack Obama's best seller, it is the "The Audacity Of Hope". It is what is great about America. We are a nation where anything and everything is possible. But let's be honest, hope is not substitute for talent

I have put together a Top Ten List of things we all think we're good at.

1. Singing


2. Minding other people's business


3. Holding one's liquor


4. Being a better driver than others on the road


5. Selecting the ideal mate for others


6. Being the boss


7. Understanding the opposite sex


8. Being a better contestant when watching those on game shows


9. Being a good listener


10. Marketing

Yes, marketing makes the Top Ten List.

I have been in countless marketing meetings attended by lawyers, accountants, technology experts, operations executives, research analysts, etc. etc. All, by their comments, feedback, and suggestions. claim to be marketers. "I think the logo should be blue", "The tag line doesn't do anything for me." "I think the music in the ad should be a little more upbeat". "The ad needs more copy." Etc. Etc. Etc. All marketing experts.

A friend of mine, Sergio Zyman, the former CMO of The Coca-Cola Company, shared with me an interesting story. He had just finished some television spots for Coke and reported this to Roberto Goizueta, the late and venerable Chairman and CEO of the company. Mr. Goizueta asked Sergio for tapes of the ads. Asked why, Mr. Goizueta said he wanted to show them to his wife who had a good feeling for choosing ads and her feedback would be invaluable. Sergio, not missing a beat, agreed, but with one condition. "What's that?", Mr. Goizueta responded. Sergio replied, "On the condition that she buy all the cases of Coke that I am supposed to sell." Sergio went on to explain that the advertising was targeted to consumers who were going to buy Coke and Mrs. Goizueta was not the target audience." Mr. Goizueta got the point.

Good marketing is that which is targeted at the people who will buy something. In most cases, the people sitting around marketing meetings, particularly the non-marketers, need to focus less on their personal tastes and opinions and more on those who actually buy the stuff.

I highly doubt that a female CMO of a men's fashion retailer wonders how she will look in the fashions marketed. Or does a 50-year old CMO of a children's toy company actually select a marketing campaign based on his own toy preferences?

For those non-marketers in the world of business, I have two solutions. Either leave marketing to the marketers or learn marketing. Unlike singing, marketing expertise can be an acquired talent.

The Age Of Marketing Insurgents

Identity Crisis -Why Incumbents Lose Their Advantage

By David Miranda

The evidence is pervasive. Major incumbents, representing almost every business segment, have been losing their long-held competitive advantage in the marketplace. The perpetrators of this erosion have been insurgents-small, but keenly focused and aggressive competitors who have identified the bureaucratic Achilles Heels of the big guys - arrogance, ignorance, resistance to change, indifference, and resting on one's laurels. Take your pick of one of more.

Examples abound. Some old, some new, some soon to make their case.

Take the newspaper and magazine industries. Once the unchallenged incumbents of the fourth estate, both in circulation and advertising. Today, declining circulation with the resulting effect on revenue. The insurgents? Craig's List, eBay, Google, Yahoo, news sites, blogs, to name a few. The head of the New York Times said recently, he does not expect the Times to be printed within five years going all digital. Time Inc., the world's largest magazine publisher has recently undergone its second major round of employee cuts. Time magazine, the flagship brand, has recently reduced it advertising rate card circulation from 4 million to 3.25 million and announced more resources dedicated to its online efforts.

Take the real estate and travel industries. These once heavily intermediated industries have been disintermediated. On the travel side, agents are on the endangered species list driven out by both internet travel agents (Expedia, Travelocity, Orbitz, etc) as well as the web sites of the travel providers themselves. Real estate agents are being circumvented by the likes of Realtor.com, and BuyOwner.com with the ability to both buy and sell their homes on the Internet.

The music industry once tightly controlled and marketed by the large record labels have seen, what started with Napster, evolve into various and sundry distribution channels they never imagined a short decade ago. The internet has provided a channel for new talent to find an audience and distribute content. iTunes has become the most powerful music distribution channel in the world. As we witnessed the end of the LP, the 8-track, and the cassette. We are now witnessing the demise of the CD. A similar situation can be found in the movie industry.

These are just some examples of insurgents taking it to incumbents.

But what are incumbents to do? The answer lies in the brands they developed and nurtured - brands that they have taken for granted and underutilized in their battles with the insurgents.

The incumbent brands need to understand their underlying attributes, their real raison d'etre. The New York Times, for example, is not a newspaper. It is a news organization with a rich and storied tradition of award-winning journalism and commentary. It is a valued curator of the news. The newspaper has just been a means to distribute the content, just like film was a means to distribute photos. As long as newspapers see themselves as newspapers, insurgents will win.

The music labels are music discoverers, mentors, and distributors of talent to music audiences. They are not producers and distributors of CD's. Like newspapers, the CD is just a means to an end. It is the end that matters. Until they learn this, the insurgents will win.

Incumbent brands must understand and learn from the past. The railroads thought they were in the trains and tracks business. They were in the mass transportation business and if they had learned this sooner they might have recognized the opportunity and threat of the airlines. If the old movie moguls has realized they were in the entertainment business, not the movie business, they would have recognized the opportunity and threat of television.

Incumbent brands, instead of chasing insurgents, first need to look inwardly.

What business are you really in? Chances are an insurgent is lurking to take it?

Brand Preference - The Key Metric In Determining The Right Strategy

When To Protect, Preempt, Promote, Poach, And Probe For Consumers

By David Miranda

Many times in marketing various analogies are used to help make an important point. One of the most common themes are those that compare marketing to warfare, as in, " the battle for the hearts, minds, and wallets of consumers." It is the relentless battle for brand preference. In today's marketplace, preference is perishable. Hyper-choice of products, services, media, and distribution channels have shifted market power to the consumer and the battle is fierce.

This requires a new marketing perspective for brands in the allocation and deployment of limited resources to achieve optimum results. The key question is how to do it effectively.

The answer lies in understanding brand preference - yours, your competitors, and the considerable number of consumers who have no preference - the brand agnostics.

A brand should develop and monitor a brand preference spectrum that identifies and measures those consumers with a strong preference for the brand over all other choices; those who have a soft preference (sometimes switch to competitors); those who are brand agnostics (no preference at all); those who have a soft preference for competitors; and finally those who have a strong preference for one or more of your competitors.

Each of these segments in the brand preference spectrum require a different marketing strategy as follows:

• For those with a strong preference for your brand, it is important to implement a marketing strategy to "protect" these your best customers from defecting to competitors, since they represent the greatest R.O.M.I. and lifetime value for the brand.
• For those with a soft preference, it is important to preempt competitive poaching. They may prefer your brand over others, but are vulnerable.
• For the brand agnostics, it is important to continually use promotions. These consumers are constantly switching from one brand to the next primarily driven by promotional offers. All other things being equal, they will go with the best offer.
• For those with a soft preference for your competitors, strategies should be employed to poach these consumers taking advantage of their vulnerability.
• For those with strong preference for competitors, a marketing strategy to probe those consumers who may consider switching preferences has high returns. This cannot be accomplished effectively and efficiently with mass marketing. It requires market intelligence and precision.

In summary to get the best Return On Marketing Investment, allocate and invest marketing funds in strategies that protect, preempt, promote, poach, and probe for success.