Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
Perfection: There are few things I enjoy more than a perfectly ripened peach. It is firm yet juicy, sweet and tangy, an adventure to eat and simply delicious. It is fruit nirvana! The problem with peaches is that they are perfectly ripe for such a short period of time that is almost impossible to experience this state of perfection very often.
Despite this, farmers still grow, harvest and ship peaches. Grocery stores still stock them and sell them. And I still buy them, hoping for that rare occurrence of a perfect peach.
The point is the great peach infrastructure isn't letting the difficulty of delivering their best, get in the way of delivering good. They do not throw in the towel because they know only rarely will a piece of fruit hit the table at the perfect time. Instead, they work to get the peaches they sell as good as they can. And then they sell them. Voltaire stated this more simply in his poem La Bégueule or The Prude Woman: "The best is the enemy of the good."
In marketing terms, this means that there is an opportunity cost to waiting for perfection. An imperfect ad that is placed in the media always generates more sales than the "great idea" that is still on the drawing table. A product that is in the market, being purchased, used and tested by consumers will outsell the product that never gets released because the designers or the engineers or the factory "just can't get it right." You can read more about this in a blog I wrote last summer, titled "Don't Wait For Perfection" here.
We have all read countless articles and blogs about the late Steve Jobs' obsession with perfection. I would argue that even Mr. Jobs realized that perfection is the enemy of the good. Eventually, Apple released the iPhone, the Macbook, the iPad. They put each item out on the market and learned how they could make it better and did. If the iPhone had been perfect when it was first released, Best Buy would not be selling iPhone 4, 4S and 5 right now (with another version right around the corner!)
I am not saying that you shouldn't strive for perfection. Every marketer should. But like growing peaches, if you wait until you have perfection before you go to market, you are probably going to be too late!
Showing posts with label Four P's of Marketing. Show all posts
Showing posts with label Four P's of Marketing. Show all posts
Tuesday, February 12, 2013
Friday, February 8, 2013
The Many P's of Marketing: Perspective
Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
Perspective: YOU know how many hours, days, weeks and years you spent designing and crafting the product. YOU know how you sweat every detail so you could deliver the service just so. YOU know how hard you have worked to design and deliver a solution to the problems or needs of your customers.
So why aren't THEY (your customers) standing in line to buy what you have to offer like its the latest iteration of the iPhone?
Perhaps it is because from their perspective, you don't have the product, price, packaging or promotion right. Perhaps it is because from their perspective, you addressed needs they don't have any more, or at least don't care about any more. Perhaps you haven't looked at your product, and the rest of your marketing P's, from the perspective of your customer.
Apple does and they stand in line for the iPhone.
Tuesday, February 5, 2013
The Many P's of Marketing: Photography
Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
As I explore the diversity of P's in Marketing, I felt it was worthwhile to explore a diversity of perspectives as well. I have asked a handful of people I respect to select a P of Marketing and write about it. Today's blog on Photography is guest written by Robin Pendergrast, the owner and President of Robin F. Pendergrast Photography, Inc. and Robin F. Pendergrast Production. Thank you Robin!
Photography: The professional photography
or imaging world doesn’t have a day go by without an inquiry about the
multiplicity of changes that have taken place since the introduction of digital
imagery.
Thoroughly understanding
the capabilities of the equipment and the ability and the creative
opportunities that can unfold with this new technology takes constant attention
to changes in both hardware and software.
As a professional, the
challenge is in knowing how to address the almost daily “can you do this?”
question. And while the answer most of the time is yes, part of the
response requires a continuing enhancement of the knowledge of just what the
possibilities are.
Digital photography puts
very little in the way of imagination on hold. When you compound the digital
hardware with the software that is available, a whole new creative world
unfolds. Since my evolution into 100% dedicated digital imagery
approximately five years ago, every day is part of an exciting and, naturally,
challenging imagining process for clients.
The conventional capture
of images for events, activities and specific assignments for individuals or
corporations will always exist. But the
unfettered capabilities of digital imagery allow the photographer to cover new
ground in these conventional assignments and help us meet and exceed the
communications and marketing imagery needs of a client. With digital photography, my photography can
now more closely match the imagination of my clients!
The world of
professional digital photography is exciting. And challenging. The passion to learn and to accept the
challenge keeps the world of photography, especially to the digital
photographer, an exciting world in which to operate.
You can learn more about Robin and Robin F. Pendergrast Photography at http://www.rfpphoto.com/
You can see some of Robin's photography at http://pinterest.com/rfpphotography/
Thursday, January 31, 2013
The Many P's of Marketing: Parables
Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
Parables: We are storytelling animals. The most successful communicators, whether they are spiritual or political leaders, teachers, business leaders or activists, know that there is nothing quite like a story or parable to drive home the point. Stories engage the listener or reader. Stories frame issues and make points in a way that is easier to relate to AND easier to remember.
There is a reason that one of the most famous and successful ads of all time is a very wordy print ad that starts with the headline "They all laughed when I sat down at the piano, but when I started to play!..." You don't have to have paragraphs and paragraphs of copy like John Caples famous ad, but if your marketing can engage prospects in a story you can engage them both intellectually AND emotionally. It also allows you to utilize all the tools of a storyteller to hook and draw in your audience. You can read the famous ad here.
In the area in which I live, there used to be a storytelling festival. It was a remarkable thing to see. Every year, for a long autumn weekend, a large grassy field would be filled with tents, large and small. You could go around from tent to tent listening to professional and amateur storytellers spinning yarns, cracking jokes and telling tall tales. Virtually every tent was filled with a cross section of society that were brought together by the special magic that only a great story holds! The remarkable thing is that it has been almost 10 years since I have been to that festival (it is no longer held) and I can still remember half a dozen of the stories I heard that weekend. I went to a conference about a month ago and have to check my notes to remind myself about the Power Point presentations I saw.
A parables or story stays with you because it engages your intellect and emotions. It connects with you verbally and, since it creates images in your mind, visually. Stories, when used well in marketing, often "sell" the product without seeming pushy or aggressive. Stories can also tickle your funny bone and give you a good general feeling about the company. I remember several years ago reading a full page ad in the newspaper announcing that Taco Bell, to help with the national debt, had just purchased the Liberty Bell. The company, the ad announced, was renaming the national historic icon the Taco Liberty Bell. A glance at the date that this ad ran, April 1, told me that this was a company that wasn't afraid to be a bit irreverent or to take some chances. The ad and the story it told generated HUGE additional media for Taco Bell. You can read that ad here. The point is that a story, even a made-up story, helps you cut through the media clutter and become memorable.
It is important to realize that storytelling does not always have to look like John Caples' ad, with paragraphs of copy and little else. A smart, creative marketer can tell a story with a photograph, a short video, a radio skit, creative packaging and so much more. Penzey's Spices and Lands' End often include stories about their customers in their catalogs. Sometimes these stories involve the use of the products, but that is not the primary focus. Instead, it gives the catalog reader an opportunity to relate to fellow customers. It also gets readers to spend more time with the catalog, which more often than not ends up in more money spent on products!
You need to strongly considering making parables and stories a part of your marketing tool box. If you don't, well, you're only telling half your story...
Parables: We are storytelling animals. The most successful communicators, whether they are spiritual or political leaders, teachers, business leaders or activists, know that there is nothing quite like a story or parable to drive home the point. Stories engage the listener or reader. Stories frame issues and make points in a way that is easier to relate to AND easier to remember.
There is a reason that one of the most famous and successful ads of all time is a very wordy print ad that starts with the headline "They all laughed when I sat down at the piano, but when I started to play!..." You don't have to have paragraphs and paragraphs of copy like John Caples famous ad, but if your marketing can engage prospects in a story you can engage them both intellectually AND emotionally. It also allows you to utilize all the tools of a storyteller to hook and draw in your audience. You can read the famous ad here.
In the area in which I live, there used to be a storytelling festival. It was a remarkable thing to see. Every year, for a long autumn weekend, a large grassy field would be filled with tents, large and small. You could go around from tent to tent listening to professional and amateur storytellers spinning yarns, cracking jokes and telling tall tales. Virtually every tent was filled with a cross section of society that were brought together by the special magic that only a great story holds! The remarkable thing is that it has been almost 10 years since I have been to that festival (it is no longer held) and I can still remember half a dozen of the stories I heard that weekend. I went to a conference about a month ago and have to check my notes to remind myself about the Power Point presentations I saw.
A parables or story stays with you because it engages your intellect and emotions. It connects with you verbally and, since it creates images in your mind, visually. Stories, when used well in marketing, often "sell" the product without seeming pushy or aggressive. Stories can also tickle your funny bone and give you a good general feeling about the company. I remember several years ago reading a full page ad in the newspaper announcing that Taco Bell, to help with the national debt, had just purchased the Liberty Bell. The company, the ad announced, was renaming the national historic icon the Taco Liberty Bell. A glance at the date that this ad ran, April 1, told me that this was a company that wasn't afraid to be a bit irreverent or to take some chances. The ad and the story it told generated HUGE additional media for Taco Bell. You can read that ad here. The point is that a story, even a made-up story, helps you cut through the media clutter and become memorable.
It is important to realize that storytelling does not always have to look like John Caples' ad, with paragraphs of copy and little else. A smart, creative marketer can tell a story with a photograph, a short video, a radio skit, creative packaging and so much more. Penzey's Spices and Lands' End often include stories about their customers in their catalogs. Sometimes these stories involve the use of the products, but that is not the primary focus. Instead, it gives the catalog reader an opportunity to relate to fellow customers. It also gets readers to spend more time with the catalog, which more often than not ends up in more money spent on products!
You need to strongly considering making parables and stories a part of your marketing tool box. If you don't, well, you're only telling half your story...
Monday, January 28, 2013
The Many P's of Marketing: Purpose
Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
As I explore the diversity of P's in Marketing, I felt it was worthwhile to explore a diversity of perspectives as well. I have asked a handful of people I respect to select a P of Marketing and write about it. Today's blog on Purpose is guest written by Emily Mooney, Creative Content Author for Mooney Media. Thank you Emily!
Purpose: I’ve followed with interest Bill Clow’s recent series re-examining the perhaps outdated “marketing mix”, which purports the recipe for marketing includes Product, Price, Promotion, and Place. In an effort to advance marketing principles into the 21st century, Bill queried what additional principles are relevant to today’s marketing and communications efforts and fittingly contributed a fifth P: People. I would like to respond in kind by adding my own marketing P: Purpose.
As I explore the diversity of P's in Marketing, I felt it was worthwhile to explore a diversity of perspectives as well. I have asked a handful of people I respect to select a P of Marketing and write about it. Today's blog on Purpose is guest written by Emily Mooney, Creative Content Author for Mooney Media. Thank you Emily!
Purpose: I’ve followed with interest Bill Clow’s recent series re-examining the perhaps outdated “marketing mix”, which purports the recipe for marketing includes Product, Price, Promotion, and Place. In an effort to advance marketing principles into the 21st century, Bill queried what additional principles are relevant to today’s marketing and communications efforts and fittingly contributed a fifth P: People. I would like to respond in kind by adding my own marketing P: Purpose.
Purpose informs cohesive marketing and communication efforts. This I’ve learned from my background in
management and writing. I have not
formally studied marketing in the way Bill has, so I’m constantly rounding out
my own skills by listening and learning from my colleagues. As a writer, the importance of purpose has
been driven into me and is now second nature.
All writing must point back to purpose.
The same applies to marketing, communications, and public
relations. We must ask, what is the
point? The answer is in a defined
marketing strategy.
Here in Chicago, we embrace Louis Sullivan’s design philosophy “Form
follows Function.” This fits nicely
under the umbrella of this blog, “Everything is Marketing.” Our marketing
strategy is our design. It informs all
of our marketing choices and decisions.
The current marketing mix is a hybrid of promotion and placement via
website presence, social media, and video.
These forms are most effective when they follow their function: to
further your marketing mission and goals.
Otherwise, we have new toys to play with that can communicate anything
and everything, which squanders our resources and the opportunity to
differentiate our brand or communicate a targeted message.
Content matters. Whether creating
an annual report, distilling complicated information for key communicators, or
building relationships within a community, the importance of staying on message
is paramount. When marketing is guided
by purpose, those receiving your message develop trust because of your
consistency. The message is familiar and
reflects your brand’s values. A positive
correlation is created. Furthermore, the
different elements of the marketing mix are coordinated, employed to serve a
singular purpose. We can’t afford to
alienate or confuse our audience with haphazard content produced for content’s
sake. Purpose needs to be our
compass.
Something else that I find makes purpose indispensable is when it is used
not only as a noun, as prescribed above, but as a verb. Purpose as a verb means to intend, to aim, to
determine. It implies a forward motion
of resolve. Purpose your efforts to
improve, expand, and grow. When your
marketing is informed by your purpose, which is informed by your strategy, which
is informed by your mission and values, then you have created something of
substance. It has legs to stand on. Today, with so many channels available to
communicate our message, there is a fantastic opportunity for ingenuity and
creativity in marketing. Purpose is both
grounded and lofty; essential ingredients in marketing and in life.
You can learn about Emily and Mooney Media at www.twomoonmedia.com.
You can learn about Emily and Mooney Media at www.twomoonmedia.com.
Friday, January 25, 2013
The Many P's of Marketing: Passion
As I was starting work on this series of blogs about the many P's of marketing, I reached out to marketers and communicators whom I respected to talk about the ideas and to invite some of them to write guest blogs for the series. One of the people I reached out to, Melea Smith, asked me if I was writing about the traditional 4 P's of Marketing: Product, Price, Promotion and Place or the New 4 P's of Marketing: Passion, Purpose, Personality and Positioning. "Both," I glibly lied to her. And then I started writing about the new four P's.
Passion: You don't have to be passionate about your product, service or company to market it, but it helps. Just like you don't have to love the game of basketball to be a good player, it is almost impossible to be a superstar without a certain level of passion. Passion is the difference between a good speaker and an evangelist; it is what makes a follower into an acolyte, a fan into a groupie, an advertisement reader into a customer.
A marketer who doesn't feel passionate about what he is marketing, can still develop and execute an effective marketing plan. But it is passion for the product or service that is being marketed that helps the marketer keep the faith during the inevitable slow times. It is passion that inspires a "we MUST win" attitude among the marketing team. It is passion that helps him sell the concepts in the marketing plan in the first place.
Why is passion important? While passion has many meanings, I think, when it comes to marketing, passion is about truly believing that your product CAN help customers; that it WILL address their needs as well or better than any other option. Passion about your product is, in other words, belief in the quality of your product and its attributes.
That belief, that conviction, when it is the basis for the marketing plan, shows through and turbocharges the marketing effort. As D. H. Lawrence said, "Be still when you have nothing to say; when genuine passion moves you, say what you've got to say, and say it hot." Lawrence may have been talking about a different type of passion, but the quote is no less relevant when applied to marketing!
As with so many of the P's of Marketing, passion has at least two meanings that make it relevant to marketing. In addition to being valuable if the marketer feels passionate about the product or service he is marketing, it is important that the marketing plan is designed to arouse the passions of the prospect.
All purchase decisions are made emotionally. All of them. Some decisions are later reinforced or backed up with facts, but emotions drive the initial decision. People make purchase decisions based on what will make them feel or look better, what will result in the least problems or the most recognition. I remember when my parents bought a new house when I was a teenager. They told us about the color of the drapes and the trees in the back yard but they couldn't remember how many rooms were in the house.
It stands to reason, then, that a marketer who can incite the passions of a prospect, has a much better chance of turning that prospect into a customer. There have been a lot of studies about the different steps a prospect goes through before becoming a customer. While there is some variation in the number of steps or the tags they assign to these steps, all of the studies have some step where the prospect makes an emotional connection to the product or service being considered. In every process, there is a point where passions are aroused before the purchase decision is made.
Very successful marketers don't stop with the purchase decision. Recognizing that if customers continue to feel passionate about their decision, at the least they will be effective word-of-mouth advertisers. At the best they will continue to be customers. Apple is a master of this. They do an excellent job of keeping their customers passionate about the products they purchase. Just try telling someone who uses a Mac about a cool new feature on your PC and you will experience what a second-class citizen feels like!
Passion: You don't have to be passionate about your product, service or company to market it, but it helps. Just like you don't have to love the game of basketball to be a good player, it is almost impossible to be a superstar without a certain level of passion. Passion is the difference between a good speaker and an evangelist; it is what makes a follower into an acolyte, a fan into a groupie, an advertisement reader into a customer.
A marketer who doesn't feel passionate about what he is marketing, can still develop and execute an effective marketing plan. But it is passion for the product or service that is being marketed that helps the marketer keep the faith during the inevitable slow times. It is passion that inspires a "we MUST win" attitude among the marketing team. It is passion that helps him sell the concepts in the marketing plan in the first place.
Why is passion important? While passion has many meanings, I think, when it comes to marketing, passion is about truly believing that your product CAN help customers; that it WILL address their needs as well or better than any other option. Passion about your product is, in other words, belief in the quality of your product and its attributes.
That belief, that conviction, when it is the basis for the marketing plan, shows through and turbocharges the marketing effort. As D. H. Lawrence said, "Be still when you have nothing to say; when genuine passion moves you, say what you've got to say, and say it hot." Lawrence may have been talking about a different type of passion, but the quote is no less relevant when applied to marketing!
As with so many of the P's of Marketing, passion has at least two meanings that make it relevant to marketing. In addition to being valuable if the marketer feels passionate about the product or service he is marketing, it is important that the marketing plan is designed to arouse the passions of the prospect.
All purchase decisions are made emotionally. All of them. Some decisions are later reinforced or backed up with facts, but emotions drive the initial decision. People make purchase decisions based on what will make them feel or look better, what will result in the least problems or the most recognition. I remember when my parents bought a new house when I was a teenager. They told us about the color of the drapes and the trees in the back yard but they couldn't remember how many rooms were in the house.
It stands to reason, then, that a marketer who can incite the passions of a prospect, has a much better chance of turning that prospect into a customer. There have been a lot of studies about the different steps a prospect goes through before becoming a customer. While there is some variation in the number of steps or the tags they assign to these steps, all of the studies have some step where the prospect makes an emotional connection to the product or service being considered. In every process, there is a point where passions are aroused before the purchase decision is made.
Very successful marketers don't stop with the purchase decision. Recognizing that if customers continue to feel passionate about their decision, at the least they will be effective word-of-mouth advertisers. At the best they will continue to be customers. Apple is a master of this. They do an excellent job of keeping their customers passionate about the products they purchase. Just try telling someone who uses a Mac about a cool new feature on your PC and you will experience what a second-class citizen feels like!
"Find your passion, whatever it may be. Become it, and let it become you and you will find great things happen FOR you, TO you and BECAUSE of you." T. Alan Armstrong
Wednesday, January 23, 2013
The Many P's of Marketing: Perception
Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
As I explore the diversity of P's in Marketing, I felt it was worthwhile to explore a diversity of perspectives as well. I have asked a handful of people I respect to select a P of Marketing and write about it. Today's blog on Perception is guest written by Bridget McGuiggan, School Communications Professional. Thank you Bridget!
As I explore the diversity of P's in Marketing, I felt it was worthwhile to explore a diversity of perspectives as well. I have asked a handful of people I respect to select a P of Marketing and write about it. Today's blog on Perception is guest written by Bridget McGuiggan, School Communications Professional. Thank you Bridget!
Perception: Yet another P to consider in
the marketing mix is Perception. If people are truly part of the marketing mix,
then their perception of products and services and the companies that provide
them is equally essential to consider in modern marketing.
American
business magnate Warren Buffet said “It takes 20 years to build a reputation
and five minutes to ruin it. If you think about that, you’ll do things
differently.” I agree with the sentiment entirely.
As
an example, consider cyclist Lance Armstrong. Armstrong was considered (perceived
as) one of sports’ greatest heroes - a cancer survivor, a phenomenal athlete,
an inspiration to millions across the globe. News of his alleged doping broke,
and his reputation was all but destroyed that quickly. Like golfer Tiger Woods
and his alleged infidelity, the public didn’t need a press conference
confirming the information before it was assumed true and shared as fact by
those who heard only pieces.
As
another example, consider BP Gasoline. When the oil spill occurred in the Gulf
in 2011, countless customers pledged never to use the product again.
A
third example, one from my own life, comes to mind – I was considering purchasing
a new car a few months back. Before even starting the process, I ruled out a
few car makers based on my own experience and that of my spouse. We vowed never
to buy from a few particular companies again. I was left with five or six car makers
to consider, one of which was Kia. I had heard at one time that Kia cars were
poorly made and unreliable. Thinking back, I don’t remember if someone had
shared that with me, or if I had perhaps read the criticism somewhere.
Regardless, I was ready to rule out Kia completely on that basis – my
perception that was based on nothing in particular, and certainly nothing
recent. It wasn’t until I saw a friend’s Facebook post about her new Kia that I
gave it a second thought; she was someone I’d consider practical and someone
who had done the real homework I hadn’t yet begun. I decided to stop in a Kia
dealership to learn about the SUV for myself. I spent time on reputable car
review websites and read through articles on Consumer Reports. I learned that
Kia went through a major change and its newer models were completely
redesigned, with better parts and sleek designs that were garnering positive
reviews everywhere I looked. Paired with competitive pricing and a strong
warranty, Kia made it to the top of my list. When I do buy a new car, I have no
doubt Kia will be a contender. And when I hear someone criticize Kia cars, I’ll
think twice about the basis for their perception.
Thinking again of the comment from Warren Buffet, there is one
other component to consider – people love a comeback. Whether it’s an athlete
who may have chosen the wrong path or a company that may have caused a
catastrophe, we’ll listen to the apology, especially if we perceive it as an
honest one. We’ll listen to the way they are going to make it better, and we
will watch to see if they follow through. And we may even start to root for
them again and hope they can turn it around.
The idea of perception as reality is a notion any marketing
professional should keep in mind. In an age when anyone can be a critic and
share their review with the world, there is a higher hurdle to jump. The
marketing has to overcome not only trusted family and friends who have their
opinions, but also information and misinformation that travels at the speed of
thought. Once perception is rooted, no matter how it started or how it’s been
addressed once it’s out there, there is an exceptional challenge in creating a
change. As Warren Buffet also said, “Chains of
habit are too light to be felt until they are too heavy to be broken.”
Monday, January 21, 2013
The Many P's of Marketing: Prediction
Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
Prediction: Prediction is something we are supposed to do in marketing. In some circles, they try to make it sound more scientific and business-like by calling it research, but when you boil it down, we are really talking about predicting. Predicting which ad will be preferred by males aged 18-34. Predicting at what price will people stop buying a specific service. Predicting which new market will be most profitable. Predicting which tag line will generate the most sales, or clicks, or votes.
Let's face it, research is the forgotten stepchild in many marketing plans. Most of us got involved in marketing because of a love for writing or designing or photography or sales. I haven't met too many people who got involved in marketing because of a love of research, or prediction. I know that I would much rather play with words and pictures than with number and percentages (which I don't care what my math teachers told me, are not the same as numbers!) While research is included in plans, I bet that it is often given scant attention.
Backing up your gut
But research, or prediction, or as one colleague calls it "educated guestimation", is important. Nate Silver, possibly the most famous predictor around right now, in his book The Signal and the Noise says "[p]rediction is important because it connects subjective and objective reality." In other words, prediction, or research, attempts to take some of the risk out of marketing decisions by making data-informed calculations about how people will act in a certain situation with a certain set of circumstances. Prediction, especially as it is usually used in marketing, uses scientific methods to collect data to help marketers make what are essentially subjective decisions. Or as my Grandpa would say, prediction backs up your gut with numbers!
Research is important because marketers are usually spending large sums of someone's money on seemingly arbitrary decisions. Most people who are paying for the marketing, usually known as clients or bosses, are more comfortable with some sort of external justification for how their money is being allocated. Research is also important because no marketer can be an expert in every field or every target market. Research can help to inform and educate us as to the realities of the marketplace. Every time I feel that I know the market I am working in and how the customers think and act, quality market research helps to prove to me that I have more to learn. In other words, market research can help keep our marketing egos in check.
Market research isn't always about predicting what WILL happen. Sometimes it is about perceiving what IS happening. A while back, I was managing the roll-out of a new name and identity for a healthcare system. We had developed a marketing plan and our research showed that we were actually performing above expectations as far as market penetration on the new name and understanding of what healthcare entities were included in the newly formed and named health system. It also showed that people had no idea how to pronounce the new name. We had not even thought of this as an issue when we were developing our roll out campaign. Armed with the perceptions that market research provided us, we were able to add radio to our promotional mix and soon had people pronouncing the health system's name correctly!
Making predictions is easy. Making accurate predictions is hard!
We all make predictions all of the time. Taking the highway will be faster. I won't take an umbrella because its not going to rain until I get back. The Cubs are going to win the World Series in 2013. Making predictions is easy. Making accurate predictions is hard.
The subtitle of Nate Silver's book is "Why so many predictions fail -- but some don't." Human beings, Silver tells us, are hardwired to look for patterns in the world around us. While that would seem to be an advantage when it comes to evaluating data to support subjective decisions, sometimes it just makes it difficult to sort out the data that is important to pay attention to from that which is, well, just noise.
You see, the problem with research or prediction in the 21st century is not data but filtering.
We have plenty of data. We have more data bombarding our synapses every day than we could possibly process in a week! So the challenge then becomes learning to select only the data and information that is relevant and helpful in making accurate predictions.
Just as we make predictions all the time, we also filter all of the time. One of the ways most people filter is by seeking out the familiar. If you are politically conservative, you most likely watch Fox News more than someone who is liberal. If you are from New York, you are much more likely to know last night's Knick's score than you are the score for the Suns. This is one of the ways we manage the tidal wave of information we are exposed to each day. As the amount of information we must deal with has increased, so has the size and the intensity of the filters we use.
The problem is good researchers need to learn how to remove the filters when they review research data. While filters help us get a handle on raw information, they can also hide real research results. An objective predictor is aware of her biases and prejudices and accounts for them when evaluating data. A careless predictor looks at data through biased colored lenses and gets a distorted, and most likely inaccurate picture of the world.
Prediction, or research, may be the forgotten stepchild of your marketing plan, or the part of your marketing mix that never gets crossed off of your "to do" list. If, however, you take the time and make the effort to do some carefully planned and executed research and analysis, it will be a great help to your marketing efforts. It will provide you with greater insights to your market and a better understanding of how well you are communicating to that market.
At least that's my prediction.
Prediction: Prediction is something we are supposed to do in marketing. In some circles, they try to make it sound more scientific and business-like by calling it research, but when you boil it down, we are really talking about predicting. Predicting which ad will be preferred by males aged 18-34. Predicting at what price will people stop buying a specific service. Predicting which new market will be most profitable. Predicting which tag line will generate the most sales, or clicks, or votes.
Let's face it, research is the forgotten stepchild in many marketing plans. Most of us got involved in marketing because of a love for writing or designing or photography or sales. I haven't met too many people who got involved in marketing because of a love of research, or prediction. I know that I would much rather play with words and pictures than with number and percentages (which I don't care what my math teachers told me, are not the same as numbers!) While research is included in plans, I bet that it is often given scant attention.
Backing up your gut
But research, or prediction, or as one colleague calls it "educated guestimation", is important. Nate Silver, possibly the most famous predictor around right now, in his book The Signal and the Noise says "[p]rediction is important because it connects subjective and objective reality." In other words, prediction, or research, attempts to take some of the risk out of marketing decisions by making data-informed calculations about how people will act in a certain situation with a certain set of circumstances. Prediction, especially as it is usually used in marketing, uses scientific methods to collect data to help marketers make what are essentially subjective decisions. Or as my Grandpa would say, prediction backs up your gut with numbers!
Research is important because marketers are usually spending large sums of someone's money on seemingly arbitrary decisions. Most people who are paying for the marketing, usually known as clients or bosses, are more comfortable with some sort of external justification for how their money is being allocated. Research is also important because no marketer can be an expert in every field or every target market. Research can help to inform and educate us as to the realities of the marketplace. Every time I feel that I know the market I am working in and how the customers think and act, quality market research helps to prove to me that I have more to learn. In other words, market research can help keep our marketing egos in check.
Market research isn't always about predicting what WILL happen. Sometimes it is about perceiving what IS happening. A while back, I was managing the roll-out of a new name and identity for a healthcare system. We had developed a marketing plan and our research showed that we were actually performing above expectations as far as market penetration on the new name and understanding of what healthcare entities were included in the newly formed and named health system. It also showed that people had no idea how to pronounce the new name. We had not even thought of this as an issue when we were developing our roll out campaign. Armed with the perceptions that market research provided us, we were able to add radio to our promotional mix and soon had people pronouncing the health system's name correctly!
Making predictions is easy. Making accurate predictions is hard!
We all make predictions all of the time. Taking the highway will be faster. I won't take an umbrella because its not going to rain until I get back. The Cubs are going to win the World Series in 2013. Making predictions is easy. Making accurate predictions is hard.
The subtitle of Nate Silver's book is "Why so many predictions fail -- but some don't." Human beings, Silver tells us, are hardwired to look for patterns in the world around us. While that would seem to be an advantage when it comes to evaluating data to support subjective decisions, sometimes it just makes it difficult to sort out the data that is important to pay attention to from that which is, well, just noise.
You see, the problem with research or prediction in the 21st century is not data but filtering.
We have plenty of data. We have more data bombarding our synapses every day than we could possibly process in a week! So the challenge then becomes learning to select only the data and information that is relevant and helpful in making accurate predictions.
Just as we make predictions all the time, we also filter all of the time. One of the ways most people filter is by seeking out the familiar. If you are politically conservative, you most likely watch Fox News more than someone who is liberal. If you are from New York, you are much more likely to know last night's Knick's score than you are the score for the Suns. This is one of the ways we manage the tidal wave of information we are exposed to each day. As the amount of information we must deal with has increased, so has the size and the intensity of the filters we use.
The problem is good researchers need to learn how to remove the filters when they review research data. While filters help us get a handle on raw information, they can also hide real research results. An objective predictor is aware of her biases and prejudices and accounts for them when evaluating data. A careless predictor looks at data through biased colored lenses and gets a distorted, and most likely inaccurate picture of the world.
Prediction, or research, may be the forgotten stepchild of your marketing plan, or the part of your marketing mix that never gets crossed off of your "to do" list. If, however, you take the time and make the effort to do some carefully planned and executed research and analysis, it will be a great help to your marketing efforts. It will provide you with greater insights to your market and a better understanding of how well you are communicating to that market.
At least that's my prediction.
Thursday, January 10, 2013
The Many P's of Marketing: Packaging
Marketing has gotten more and more nuanced, as new technologies and strategies have opened up many options for marketers. It is my contention that today, the marketing mix contains much more than the traditional four or five P's that are taught in school. In this series I am exploring the Many P's of Marketing.
Packaging: Packaging performs many duties for a product. It helps to make delivery of the product safe and cost efficient, as in the case of an egg carton. It can help promote the product and its benefits, as does packaging for laptops and corn flakes. Packaging can impart value, such as cases of beer that have 30 cans vs. 24, or packaging can imply value, such as the elaborate and fancy packaging that accompanies many bottles of 15 year-old scotch.
Traditionally, packaging was considered part of the product in the marketing mix. Marketers have recognized, however, that creative packaging can, in fact, can help create new products. Take, for instance, the Dean's Milk Chug. Dean's took a product that is essentially a commodity, milk, and through clever packaging, created a very popular, profitable and unique product. The easy to use, single serving Milk Chugs has created a whole new way for people to use milk. It helps to make milk competitive with other single serve beverages and snacks. It has also helped Dean's stand out in comparison to other dairies.
Similarly, "packaging" of a service into something that is available 24/7 or online (or both) helps package a service into a new product option. The Post Office has done this by allowing companies like Stamps.com sell official US Postal Service approved postage through their service. It creates a new, convenient option for the ultimate consumer, new or more frequent customers for the US Postal Service, and a possible profit opportunity for the company repackaging official postage.
Packaging is no longer just a way to deliver a product or service to consumers. Packaging can have a significant role in the value that a product or service imparts to the customer. Packaging is one of the many P's of marketing.
Packaging: Packaging performs many duties for a product. It helps to make delivery of the product safe and cost efficient, as in the case of an egg carton. It can help promote the product and its benefits, as does packaging for laptops and corn flakes. Packaging can impart value, such as cases of beer that have 30 cans vs. 24, or packaging can imply value, such as the elaborate and fancy packaging that accompanies many bottles of 15 year-old scotch.
Traditionally, packaging was considered part of the product in the marketing mix. Marketers have recognized, however, that creative packaging can, in fact, can help create new products. Take, for instance, the Dean's Milk Chug. Dean's took a product that is essentially a commodity, milk, and through clever packaging, created a very popular, profitable and unique product. The easy to use, single serving Milk Chugs has created a whole new way for people to use milk. It helps to make milk competitive with other single serve beverages and snacks. It has also helped Dean's stand out in comparison to other dairies.
Similarly, "packaging" of a service into something that is available 24/7 or online (or both) helps package a service into a new product option. The Post Office has done this by allowing companies like Stamps.com sell official US Postal Service approved postage through their service. It creates a new, convenient option for the ultimate consumer, new or more frequent customers for the US Postal Service, and a possible profit opportunity for the company repackaging official postage.
Packaging is no longer just a way to deliver a product or service to consumers. Packaging can have a significant role in the value that a product or service imparts to the customer. Packaging is one of the many P's of marketing.
Tuesday, January 8, 2013
The Many P's of Marketing: People
Traditional marketing education teaches that the "marketing mix" is made up of four key themes, also known as the Four P's of Marketing. In recent years, many marketing writers have proposed that the traditional four P's of marketing, Product, Price, Promotion and Place do not reflect the current marketing reality. As the focus of marketing has taken on more of a relationship bent, a fifth P, People, has often been added the to the traditional concept of the marketing mix.
People: People are the key to marketing. People make decisions. People make purchases. A marketing effort is an attempt to influence the behavior of...you guessed it...people.
With the introduction of better information about the customer, better communications technology and more sophisticated practitioners and customers, it is not controversial to say that the focus of marketing has shifted from touting a product or service toward building and nurturing relationships. Relationships are key to a successful marketing effort. Most successful marketers now focus significantly on developing and maintaining relationships with customers, prospective customers, opinion-makers and staff.
Affinity programs such as frequent-flyer programs are attempts to develop a relationship with the customer. When Netflix makes recommendations for movies you might like based on movies you've watched and rated, they are trying to build value into your relationship with them. When Ace Hardware or your local coffee shop gives you a discount card or every tenth cup free, they are trying to do the same.
Relationships have become so important that a whole branch of marketing, called relationship marketing, has emerged. This is where marketers focus primarily on building and nurturing a relationship with a desired customer. Relationship marketing often takes a long-term view towards towards the profitability of the customer relationship. I will explore relationship marketing more in a future blog.
The "people" aspect of marketing refers to more than just the customers and prospects that a company works with. It also refers to the people who deliver the customer service and communications that makes or breaks that precious customer relationship. As I discussed in my blog on low cost retailers, that you can read here, the people that work on the front lines serving the needs of the customers make a monumental difference in the success or failure of a business. How many times have you had a complaint or a problem with a company when the "above and beyond" service of one person totally changes your impression of the company. How the people you employ treat the people you are trying to sell to may be a more significant factor in long term sales than any other element in the marketing mix!
For example, I used to go to a particular dry cleaner. There was a clerk who worked at this dry cleaner who always knew my name (and phone number) and often had my dry cleaning ready to go before I ever got to the counter. She always had something pleasant and often funny to say to me, often referring to a previous discussion. I was definitely NOT a number to this woman but a person. Furthermore, if I had my daughter with me, she remembered that her favorite candy was Tootsie Rolls and always had a couple for her. My daughter wouldn't have let me switch from that dry cleaner if I wanted to! The day that exceptional woman retired was the last day I went to that dry cleaner.
As someone said to me recently, people are often the forgotten element of the marketing mix. People are, however, essential to good marketing!
People: People are the key to marketing. People make decisions. People make purchases. A marketing effort is an attempt to influence the behavior of...you guessed it...people.
With the introduction of better information about the customer, better communications technology and more sophisticated practitioners and customers, it is not controversial to say that the focus of marketing has shifted from touting a product or service toward building and nurturing relationships. Relationships are key to a successful marketing effort. Most successful marketers now focus significantly on developing and maintaining relationships with customers, prospective customers, opinion-makers and staff.
Affinity programs such as frequent-flyer programs are attempts to develop a relationship with the customer. When Netflix makes recommendations for movies you might like based on movies you've watched and rated, they are trying to build value into your relationship with them. When Ace Hardware or your local coffee shop gives you a discount card or every tenth cup free, they are trying to do the same.
Relationships have become so important that a whole branch of marketing, called relationship marketing, has emerged. This is where marketers focus primarily on building and nurturing a relationship with a desired customer. Relationship marketing often takes a long-term view towards towards the profitability of the customer relationship. I will explore relationship marketing more in a future blog.
The "people" aspect of marketing refers to more than just the customers and prospects that a company works with. It also refers to the people who deliver the customer service and communications that makes or breaks that precious customer relationship. As I discussed in my blog on low cost retailers, that you can read here, the people that work on the front lines serving the needs of the customers make a monumental difference in the success or failure of a business. How many times have you had a complaint or a problem with a company when the "above and beyond" service of one person totally changes your impression of the company. How the people you employ treat the people you are trying to sell to may be a more significant factor in long term sales than any other element in the marketing mix!
For example, I used to go to a particular dry cleaner. There was a clerk who worked at this dry cleaner who always knew my name (and phone number) and often had my dry cleaning ready to go before I ever got to the counter. She always had something pleasant and often funny to say to me, often referring to a previous discussion. I was definitely NOT a number to this woman but a person. Furthermore, if I had my daughter with me, she remembered that her favorite candy was Tootsie Rolls and always had a couple for her. My daughter wouldn't have let me switch from that dry cleaner if I wanted to! The day that exceptional woman retired was the last day I went to that dry cleaner.
As someone said to me recently, people are often the forgotten element of the marketing mix. People are, however, essential to good marketing!
Thursday, January 3, 2013
The Many P's of Marketing: The Original Four P's
In the 1950's, American Marketing Association President Neil Borden coined the term "marketing mix." The traditional four P's of Marketing (Product, Price, Promotion and Place) were considered to be the primary components of the marketing mix. The Four P's of Marketing have been a staple of marketing education since then, although some have added a fifth P, People, to the marketing mix model. If you have studied marketing in the last 60 years, most likely you have spent time reading about the 4 or 5 P's of Marketing.
It is my contention that these five categories are very broad. Too broad for today. With marketers' ability to mass customize their marketing efforts these days, I think we need to pay attention to many more P's of Marketing. I plan to explore some of the many P's of Marketing over a series of blogs. I encourage readers to suggest other P's of Marketing. In this blog, I will briefly discuss the Original Four P's of Marketing.
Product: Everything starts with the product (or service) that is being marketed. The nature of the product, its qualities, its faults, its uniqueness, its available options, the demand for it in the market, all impact on how the product is marketed. All of the features of the product, including how it is produced, its packaging and its performance (3 more P's) impact the impression potential customers will have of a specific product. It is also impossible to view a product in a vacuum. How a specific product compares to its competitors is an essential component of marketing.
Price: Price, simply put, is what the consumer pays to acquire the product or service being marketed. In reality though, price really refers to the perceived value of that product or service. The trick of the marketer is to figure out how to maximize a product's profit potential by setting price so that it is just at the point where it meets perceived value. Econ 101 revisited!
Promotion: This is what most people think of when they think of marketing. Promotion refers to the efforts a company or marketer employ to get customers to make a purchase. This includes advertising and public relations that marketers employ to let prospective customers know about their product and the features and values they want those prospective customers to focus on. Promotion also traditionally includes the sales function, including direct sales and sales promotion.
Place: Place refers to where the product can be purchased. It seems to me that Place is the Original P that has changed the most in the last 60 years. Physical location of a store or allotment of shelf space matter much less now than they did in the 50's. With the advent of online sales, even the smallest producer can have a worldwide market available to them. No longer does the success of a product depend on whether the sales manager is able to negotiate a deal with Sears and Roebuck. These days, I would include in the Place category elements such as placement on a Google Search list, placing links to your sales website on sites that are popular with your target audience, getting on Pinterst and Facebook, and the like. I also suspect that if Mr. Borden were introducing his marketing mix concept today, Place may NOT be one of the four P's.
Next blog I will discuss the 5th P, People, and several other P's I think are worth paying attention to.
It is my contention that these five categories are very broad. Too broad for today. With marketers' ability to mass customize their marketing efforts these days, I think we need to pay attention to many more P's of Marketing. I plan to explore some of the many P's of Marketing over a series of blogs. I encourage readers to suggest other P's of Marketing. In this blog, I will briefly discuss the Original Four P's of Marketing.
Product: Everything starts with the product (or service) that is being marketed. The nature of the product, its qualities, its faults, its uniqueness, its available options, the demand for it in the market, all impact on how the product is marketed. All of the features of the product, including how it is produced, its packaging and its performance (3 more P's) impact the impression potential customers will have of a specific product. It is also impossible to view a product in a vacuum. How a specific product compares to its competitors is an essential component of marketing.
Price: Price, simply put, is what the consumer pays to acquire the product or service being marketed. In reality though, price really refers to the perceived value of that product or service. The trick of the marketer is to figure out how to maximize a product's profit potential by setting price so that it is just at the point where it meets perceived value. Econ 101 revisited!
Promotion: This is what most people think of when they think of marketing. Promotion refers to the efforts a company or marketer employ to get customers to make a purchase. This includes advertising and public relations that marketers employ to let prospective customers know about their product and the features and values they want those prospective customers to focus on. Promotion also traditionally includes the sales function, including direct sales and sales promotion.
Place: Place refers to where the product can be purchased. It seems to me that Place is the Original P that has changed the most in the last 60 years. Physical location of a store or allotment of shelf space matter much less now than they did in the 50's. With the advent of online sales, even the smallest producer can have a worldwide market available to them. No longer does the success of a product depend on whether the sales manager is able to negotiate a deal with Sears and Roebuck. These days, I would include in the Place category elements such as placement on a Google Search list, placing links to your sales website on sites that are popular with your target audience, getting on Pinterst and Facebook, and the like. I also suspect that if Mr. Borden were introducing his marketing mix concept today, Place may NOT be one of the four P's.
Next blog I will discuss the 5th P, People, and several other P's I think are worth paying attention to.
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