In today’s economic environment, it is back to the basics.
The key to surviving in today’s challenging business environment is delivering consistent performance over time. But more than revenues and profits, performance today is measured in terms of value. While often hard to quantify on the balance sheet, value is what separates great companies from their competitors. The following beliefs are key for a company to succeed and be profitable:
- Be true to your customers and your people.
- Recognize the power of character and credibility over charisma.
- Establish trust and building brand loyalty.
The pause in the current economy provides an opportunity for businesses to reassert their values and set a course for a stronger future. Leading-edge companies are using this time to their best advantage by developing incorporating an integrated marketing communication approach to their business goals. Business problems can only be solved by addressing them strategically. Look at the “big picture” before any work or analysis begins on a project. You have to make certain that all marketing plans and strategies are informed by your business goals and objectives.
How does a Smart Marketing Process work?
- Situation Analysis – What’s happening now?
Define the problem or challenge.
Purpose: Determine internal and external perspectives and attitudes about your products or services.
Tools: Primary and secondary research through informal and formal methods such as surveys, reviewing existing materials, focus groups, interviews, etc.
- Planning and Programming – What should we do, say or change?
Determines goals, objectives, strategies and tactics based on information gathered and evaluated from the Situation Analysis.
Purpose: Define how to get your internal and external audiences to gain acceptance of your organization’s idea(s), attitudes, beliefs and/or sales proposition.
Tools: Advertising, public relations, promotion via campaigns, direct marketing, and online communication.
- Taking Action and Communicating – How do we do it?
Implement the plan
Purpose: Achieve the specific objectives for each of the publics/audiences in order to accomplish the overall program goals.
Criteria: Timetable, budget, personnel assignments, outsourcing, etc.
- Evaluation and Assessment – How are we doing?
Assess the development, implementation, and results of the plan
Purpose: To make adjustments based upon the evaluation feedback and determine if the program should be continued, stopped or concluded.
One of the fundamental issues to address when creating a company and product or service offering is how your offering will be positioned in the market relative to your customer. This question assumes you thoroughly understand your market – the competition (both direct and substitutes), customer problems or “pain points” and segmentation that will be the topics of other articles.
Positioning is how your offering fits in the minds of your customers and end users. Why is your product more desirable to them or better suited to their needs? Is it less expensive, easier to use? Does it solve a problem that is important to them? Does it work better than their current options? Does it provide them with intangible personal benefits – status, ego satisfaction, etc.?
This concept first came into widespread use by Alfred Sloan when he created General Motors. His stated approach was “ a car for every purse and purpose”. Chevrolet for the entry level, then Pontiac as one became more successful, followed by Buick and then ultimately a Cadillac once you make that big exit at a very high multiple. While this seems quaint in the face of GM’s current situation it led them past a dominant Ford in the 30’s. Then to over 50% market share in the US for many years in the 50’s through the early 80’s. Arguably it was lack of understanding of positioning that led to GM’s downfall. The Japanese competitors recognized and created a high value for reliability and practicality in small cars versus the style, power, size and brand focus of the American car companies.
A more current example is the Internet search market between Google, Yahoo and Bing. Google’s mission is to organize the world’s information and make it universally accessible and useful3. Bing is positioning themselves more narrowly on decisions: “When it comes to decisions that matter, Bing & decide.” Yahoo is trying to make themselves more human with their positioning focused on people: “To connect people to their passions, communities, and the world’s knowledge.”
Each of these companies has specifically focused their efforts to offer something unique to their customers. Have you?
It’s perhaps the most commonly asked question of entrepreneurs: “What business are you in?” How many of us think carefully about the answer? Some answers I’ve heard lately include “I’m in consulting”, “we make and sell replacement parts for earthmovers”, “we are the leading on-line retailer of golf accessories”. These descriptions and most of those we hear describe what the business activity is, not what it does. What your business does is provide a solution or answer to a customer’s need. We often hear the phrase “point of pain”. What is the point of pain that you resolve for your customer?
Over an amazing lunch at Sparks in New York, I had a conversation with a man who is a major developer of industrial properties in the tri-state area. We were discussing his relationship with a well-known discount book chain. He told me, “I know what business I’m in. I’m not in the warehouse business. I’m not in the real estate business. I’m in the ‘lowest unit cost quickest on the shelf’ business”. He understood exactly what point of pain he solved for his client. Books are heavy and take up space. It can take a long time to move books from the printer to a warehouse and then to a store. Books are sold today like fresh produce – they have a short shelf life. So the retailer needs to be able to restock big sellers quickly but not crowd their shelves with slow movers. My host worked at solving that problem and built a long term profitable relationship with the solution.
What business are you in? Look at your market and customers as abstractly as possible. Which of their points of pain do you touch in your business? How do you resolve the pain? That is what business you are in. Have you resolved it as completely and inexpensively as you possibly can? If so, congratulations; if not, you need to do better because if you don’t someone else will.
