Category: marketing

Advertising Is Not Marketing

Posted by joshua duncan – September 20, 2009

Rocketwatcher had a great post last week reminding people that marketing is not SPAM.   My favorite quote from April’s article,

Spam is what happens when there is an absence of marketing.  It’s what happens when you don’t think about what customers want and don’t care about building offerings for them.  It’s what happens when you don’t care about market segments and you believe a cat, a CEO and a teenager are equally likely to click on your link.

I was reading an article on Amazon’s brand this weekend that really helps make the point that marketing is not just advertising either (though the term marketing is often used interchangeably with advertising).

The Business Week articles Amazon’s approach,

Instead of shelling out big bucks for lavish trade shows and TV and magazine ads, Amazon pours money into technology for its Web site, distribution capability, and good deals on shipping. The result: a smooth shopping experience that burnishes the company name.

If your marketing strategy is focused on your customers, your customers will rave about you.  Amazon understands its customer and knows that the best way to delight is by delivering amazing service and focusing on ease of use.  This focus has led to a sterling reputation and increased brand awareness all without spending on advertising.

Advertising can be a very effective marketing tool but it is definitely not the only tool you should pay attention too.

Budget Your (Product) Perceptions

Posted by joshua duncan – September 10, 2009

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On a recent trip to L.A., I found myself at a hotel I was not familiar with.  From the moment I arrived, I was impressed.  I am not sure if it was the personal concierge that took care of the check-in while I waited in the hip lobby or the complementary fridge full of soda and juice, but either way,  I was sold.  From there the list goes on of all the things they did to make sure my stay was as enjoyable and hassle free as possible.

Reflecting after the trip, it occurred to me that that from the first minute I stepped into the hotel, I had the feeling that this was going to be a good experience (first impressions!).  The place just had that feel.   To get that feel, the hotel had to do a lot of planning (and probably research).  I can’t put my finger on it and am not an interior designer, but leather couches, the reception stations, the artwork on the wall, all worked together to create that welcoming ambiance.

Talk about immediate return on investment.  I hadn’t even been in the hotel for 5 minutes and I was already making  a final judgment that this was the place to be.

Dan Ariely helps explain this in his book “Predictably Irrational“.  Dan talks about a behavioral experiment where they alternated serving containers and then asked for feedback on the coffee.  When the coffee was served along with fancy glasses and metal containers vs. white styrofoam cups, the coffee received better feedback.  Dan explained,

When we believe beforehand that something will be good, therefore, it generally will be good – and when we think it will be bad, it will be bad….This is also essential for building the reputation of a brand or a product.  That’s what marketing is all about – providing information that will heighten someone’s anticipated and real pleasure.

From a product management standpoint, I think a good question to ask is:  What are the perceptions about my product?  Are there things that I can do to enhance my positioning in the minds of my customer?  The tricky part here is that your customers will not be able to tell you directly what to do to make a great (perceived) product experience.  You have to figure that part out yourself.

Ries and Trout went as far to capture this critical point as their Law 4, The Law of Perception (from The 22 Immutable Laws of Marketing):

There are no best products.  All that exists in the world of marketing is perceptions in the mind of the customer or the prospect.  The perception is the reality.  Everything else is an illusion.

UPDATED:  Check out the Personal Branding blog’s article for a great post on digital first impressions.

Picture via nyominx.

First Impressions Count

Posted by joshua duncan – August 3, 2009

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I had a chance this summer to do some retail shopping outside the U.S. to look at how our products are sold.  It was fascinating to experience the non-U.S buying process and I came away with a laundry list of things we need to improve on.

Rohit Bhargava covers the importance of doing this activity in his recent article, “Forget Eating Your Own Dog Food – Just Try Buying It …“:

You need to experience the entire process around buying it to really understand your customers. That means you need to shop around. You need to go into a retail store to try and purchase, or buy it online and see how long it takes to arrive. What did the box it came in look like? What was the condition of it? Did you get any follow up from anyone after you bought it.

I would like to add to this from the product development side.  There’s a lot to consider when it comes to where and how your product will end up being sold:

  • What are all the channels that my product will be sold in?
  • How is the buying process different across these channels?
  • How do I need to communicate my product benefits (may be different by channel)?
  • How can I improve over what my competitors are doing?
  • How often do I need to change or update (for example, to stay fresh on the shelf)?

You may find there are a lot of elements that you can’t control (especially if you are selling through retail).  But this is why it is important that you examine and look for opportunities to make sure your product is not only the best but also perceived as the best.

Using the books example, Seth explains this point nicely with his post on “The purpose of a book cover“,

Tactically, the cover sells the back cover, the back cover sells the flap and by then you’ve sold the book. If those steps end up selling a book that the purchaser doesn’t like, game over. So you have to be consistent all the way through and end up creating a conversation after the purchase.

Bottom line, your product needs a good book cover.

Great Deck: What’s Next In Marketing And Advertising (2009)

Posted by joshua duncan – August 1, 2009

From Slideshare:
View more documents from Paul Isakson.

A Product Launch is Like…..

Posted by joshua duncan – May 26, 2009

I have been reading Neale Martin’s latest book, Habit, when I came across this great quote:

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Having recently finished a product launch, I couldn’t agree more.

Have a favorite product launch analogy to share?

Yahoo And Product Portfolio Management

Posted by joshua duncan – April 27, 2009

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The current issue of Fortune has an article covering Carol Bartz, the new CEO of Yahoo, and the staggering job in front of her trying to turn the company around.

One of the most interesting parts of the article was the historical recap of the early 2000′s where the company was on a buying tear, gobbling up companies left and right.  The strategy seemed to be focused on growth through acquisitions with no attempt to merge and focus the acquired companies.  Of course, it was during this time that Google perfected paid search and the rest is history.

Comment new Yahoo CEO Bartz,

She also wants to prevent more space debris from launching in the future. “Yahoo was amateur hour in the past when it comes to product management,” she bluntly told business partners last month; groups haphazardly released things without a clear sense of whether customers wanted them.

It is always easier looking back, but I think is safe to say that a strong product portfolio management process may have helped avoid some of the missed opportunities.  The key here is to make prioritization decisions on product development that align with the strategic direction of the company.

Portfolio Management for New Products is an excellent resource on the topic.   From PMNP, the portfolio process should be the starting point for evaluation:

  • Does the new product fit our business strategy?
  • Where is the business currently spending resources and what allocation changes need to be made?
  • What needs to be done immediately and what should be postponed?

However, a good process doesn’t guarantee success.  If done right, it will defenitly help focus, but you still need a sound strategic direction to make sure at the end of the day, your products hit the mark.

HBR On Marketing In A Downturn

Posted by joshua duncan – April 1, 2009

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This month’s HBR has an excellent article on marketing during a downturn.  In (very) brief, here is the summary:

  • Understand recession psychology – make sure you understand how your customers are going to react during the recession
  • Manage investments – determine which of your products have the best and worst opportunities and make smart choices when it comes to funding
  • Market through the recession – drive short term gains but don’t sacrifice the long term health of your products

And for after the recession:

Survivors that make it through this recession by focusing their attention on consumer needs and core brands will be strongly positioned for sunnier days ahead. However, companies must understand how people’s behavior may change following the recession so they will be able to offer products and communicate messages aligned with the needs of new consumer segments.

After most recessions have ended, consumers’ attitudes and behaviors return to “normal” within a year or two. Following more extreme downturns, though, consumers’ heightened sense of economic vulnerability can persist for a decade or longer.

Very interesting.  Read the full article here.

Rohit Bhargava at Austin Marketing Association

Posted by joshua duncan – March 20, 2009

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Yesterday I was able to attend the Austin AMA lunch with Rohit Bhargava, author of *Personality Not Included (great review from Chris Brogan here) and the Influential Marketing Blog.

I have to say I was very impressed.  He followed all the rules and delivered the goods with a great presentation.  Here are a few sound bytes from his talk on “Why Personality Matters – The Untold Story of Marketing in the Social Media Era”:

Starting a blog is not the answer

You must be willing to give up control to unlock authentic stories

Learn to listen actively -  Why don’t you respond?  Where can you respond?  What is your industry saying?

Look for your accidental spokesperson – but be aware you may not have a choice (read the Coca-Cola Facebook story)

Save money on advertising by creating content that your customers want

If you have the opportunity to hear him speak I highly recomend it (I can’t believe I missed him at SXSW! The good news is he  already posted a summary of his talk here).

Talk = Traffic

Posted by joshua duncan – March 17, 2009

Fred Wilson has been looking at The Rising Power Of Social Media As A Traffic Driver :

I can’t reveal the specifics due to confidentiality, but there are some companies that count facebook and twitter as the second and third most important sources of traffic after the big daddy Google.

This intuitively makes sense but it is good to see some data to support.  If someone you know and trust tells you to check something out, you are much more likely than if a total stranger does.

I have been thinking about is if this is sustainable?  There is definitely something major going on right now!  At some point though, is there just too much noise, too many friends, too many pokes to keep up?

Thoughts?

Did You Know That 70% OF Consumers Have Used Social Media To Get Info About A Product?

Posted by joshua duncan – January 6, 2009

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Media Post recently reported on a  DEI Worldwide study on Word-of-mouth marketing.

The study showed that 67% of consumers are likely to pass along information from an actual (“real live”) brand representative to other people, and 57% are likely to take action based on that information

Consumers don’t put much trust in corporate blogs or social network profiles, but will readily listen to people–even if they are employed by the company selling the product–provided that they are open about their mission and relationship to the company.

This is a very interesting stat for social media and could lead you to jump to some immediate conclusions.  However, if you really want WOM marketing to work you need a complete story (see Made to Stick)

The Brand Experience Lab has a really good post on the subject and sums it up perfectly here:

WOM is not a tactic or strategy by itself. It is the outcome of doing something really well.

Bottom line, it all comes back to your companies brand and product strategy.  If you create something that has an authentic story behind it, people will love talking about it.

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