Author: Jeff

Brand

Stop Circling the Wagons

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This past week I had the privilege of attending The Economist’s 2009 Marketing Forum. As you might expect, the topics this year were focused on managing through challenging economic times, how to prepare for what we all hope will be better times in the near future and how we might know when better times are coming.

The audience was smaller than in past years, which was not at all surprising, but still represented the marketing leadership of a diverse set of companies and organizations – enough so that it was not hard to see how different sectors and industries are faring, and how the thinking differs – or doesn’t – across these businesses. (you can read more on the twitter stream, some commentary on it from day one and day two and read another perspective on the conference)

I heard discussion of the expected topics, such as measurement, marketing mix and spending and investment allocation, plus branding, promotion, channels and the long list of things marketers think about. But after a day and one-half listening to and talking with this group of marketing leaders, there were two things that were notably missing.

I’m pretty sure that if you’re bothering to read this, you don’t need to be convinced that an economic downturn, regardless of how severe or prolonged, is the time when it is imperative that great companies (read: the ones that want to survive) innovate – not just creating a few new, related products, but re-think the way they relate to their customers and the rest of their market, they way they develop and roll-out product (I am intentionally avoiding the word “launch” here) and how they manage the marketing investment for their companies.

I won’t suggest that there were no interesting ideas offered. There were a few. But out of 12 panels and presentations, not one was focused on innovation in marketing or how companies can create the kind of significant differentiation that will allow them to succeed in bad times and dominate when the market turns up again.

I would hate to suggest that, among this group, not one person was thinking about how to do this for their company (or clients for the branding firms in attendance), but there was little to no talk of this, either on stage or in the hallway between sessions. The thing that struck me also, is how much of the conversation still assumes that marketers own and define their brand themselves (hint: your market owns your brand) and how much the style of thinking is still command-and-control-driven in most marketing organizations.

So what was missing? Let me start with these perspectives:

  • The CMO as the portfolio manager of a range of marketing investments (some of this was hinted at by Ward Hanson of SIEPR)
  • The CMO as the steward (not controller, or owner) of the brand in the minds of the members of the market
  • The CMO as the facilitator of the conversation around the company and the brand
  • The CMO as the steward of the relationship with the market(s)
  • The CMO as the driver of a sustainable business model (no, I don’t mean green products)

This is the opportunity that faces us in this challenging market. William Pearce of Del Monte Foods suggested that one of the key responsibilities of the CMO is to be the “driver of growth” – and with that comes the challenge of how to put your company in position to lead the market (and gain market share) in challenging times and to accelerate out of this downturn, leave your competition in the dust and become dominant in your market.

Your market is thinking differently about its relationship with you – and your competitors. Are you willing to do what it takes to enter into a new relationship, start to think differently about how your company operates and markets, and become the organization that everyone else wishes they were?

I hope so – and I’d like to hear how you are getting started.

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Brand

Just Ask

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At this morning’s Social Media Breakfast (great discussion with Anneke Seley, author of Sales 2.0 on using social media in sales), I was talking with Sue of KITList and Clare about how to improve the conversation and engagement of the thousands and thousands of KITList members. The three of us wrestled with updating the blog, creating an e-mail discussion list, maybe a social media service presence (Facebook, Twitter?), but we weren’t really sure what would engage the large and very diverse group that is the KITList membership. Then came the “a-ha” moment:

Clare said “Why don’t you ask your members?”

Which is, of course, applying the basic social media principle to figuring out social media.

Marketers are always working hard to understand customers, prospects and future prospects better. We think we’re pretty good at asking people in our market what they think, want and need. We also think we’re pretty good at translating often disparate answers into a coherent theme that then, we hope, guides our strategy.

Where this morning’s conversation started was in the “market research” mode of asking a few people. Sue asked me and Clare, and told us she had asked a few others, but still had no good answers. So a few hours later, she wrote a blog post (and sent an e-mail) to the members and asked everyone.

A few hours later, I saw the news that Facebook, after the recent debacle, has now decided that changes to their terms of service will be open to discussion by all members and subject to vote of the membership (Can’t you hear the lawyers cringing?). A social media icon now adopts real social media practices in a way that much of the technology industry is proverbially famous for not doing for so many years. This means no more misunderstandings (we hope) and terms of service that the community of Facebook members actually wants to abide by (I’ll refrain from a rant on the use of self-interest as a motivator being better than the threat of lawsuit). Facebook is actually asking everyone, and the result is almost certain to be a service that’s more appealing to its members.

Not everyone will answer. But I can’t think of a better example of how to learn what your whole market thinks, and not just the select few you’ve chosen for research. This is not quite crowdsourcing, but it’s close, and it uses some of the same ideas about collecting opinions from many, many individuals.

So when you want to know what your customers, prospects and market really want and need (and I hope you always want to know), do you let a select few speak for everyone? or do you really ask – everyone?

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Brand

Your most important question

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It would have been hard to miss the turmoil surrounding the change a few weeks back in Facebook‘s terms of service. It appeared that they had changed the terms so that Facebook now owned complete rights in perpetuity (or something similar) to anything and everything anyone has ever posted or ever will post on Facebook.

It shocked some people that anyone noticed. But if you’ve been in the social media world or in on-line communities at all in the past decade, you know there are always at least a few people watching out and ready to pounce on anything that even smells like a usurpation of individual rights, freedom or privacy. (personal note: a really good analysis of this and what it means for the future is in Jonathan Zittrain’s book, The Future of the Internet and How to Stop it).

And, as one might have expected, once the individual shouts turned into a roar, and the mainstream news media (and even NPR and Harvard Law) picked up the story, Facebook backed off, and retracted the changes.

Facebook explained the intent of the changes by saying they had “revised our terms of use hoping to clarify some parts for our users” and that the changes were intended to do things like make sure people knew that if they posted, say, a picture on a group, then canceled their Facebook account, but the group still existed, then the picture would stay posted on the group.

Makes sense to me. Unfortunately, what they actually said, didn’t seem to mean that – and certainly wasn’t taken that way by the chorus of users who called for the recission of the changes.

Full credit to Facebook, by the way, for listening.

OK, now to my point. I don’t know if Facebook actually did any market research or any form of listening to their users in this case, but this is an all-too-common situation that marketers face: We listen to our market, then we act on what we think we heard. All good, right?

Well, frankly, no.

Thomas J. Watson, Jr. was famous for one admonition to his employees that became the informal motto of IBM: “Think” I remember in my younger days visiting IBM offices, and nearly everyone had a plaque on their desk with this single word embossed on it.

IBM Think Sign

 

That’s what Facebook forgot. And that’s what we see marketers forget a bit too often. Forget the groupthink that got you to the decision to act. Forget the assumptions you make every day. Forget the facts and data. Forget the market research and all the pithy quotes you garnered from your customers.

Take just a few minutes. Pretend you actually are one of your customers hearing for the first time about whatever you plan to do (not sure how to do this? ask an aspiring-actor friend – I know you have at least one!).

What do you think? What’s your reaction? What’s your initial feeling or what action might this inspire. Be honest here. This is the marketing equivalent of the gut check.

In other words: Think. What would your (prospective) customer really think about this?

That’s your most important question.

If it passes that test, then act, knowing your (prospective) customers won’t react with “What were they thinking?”

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Marketing

I had to ask

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I don’t know if these ads run in your part of the world, but Jimmy Dean (the sausage people) are running a series of ads here featuring, well, weather – starring (pun, I assume, intended) the Sun, with a less-than-full moon (who becomes full after eating one of the advertised products, fog, and rainbow.

Rainbow is shades of grey (rather than colors) thanks to a special diet (again, solved by eating the advertised product).

Here’s my question: Are you, like me ever since I saw the ad, walking around humming Paul Simon’s My Little Town?

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Engagement

Improvement and Change

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I learned something from my last few posts: The people who read this blog like to respond by e-mail. OK, maybe I’m generalizing based on just a few events (e-mails in response to posts), but I do get e-mail, and I don’t get many comments.

I didn’t intend to experiment to find out how my “market” likes to engage. But what I did was, on a small scale, the kind of experiment in which marketers engage every day: Put something out into a market or segment and see how people respond. Do the same thing (at the same time) to comparable but different versions of the same “thing” (offer, message, whatever) in different but comparable markets or segments and you’ll end up with a good idea of what works and what doesn’t.

Marketers do this all the time. And, I hope, as a result they improve how they talk to their market.

Marketers (and, I’ve noticed, many companies) are not as good at the kind of experimentation that creates change. It’s really not that different. Experiment with things you have not yet tried. Try a new medium for communication – outbound, inbound or (preferably) two-way. Try a few all at once. See if any work. Maybe try a structure to a program, or create something in your market that’s never been created before. It might not work, but it might, and even if it doesn’t, you’ve learned something about having the conversation with your market that your current structure would never have allowed you to learn.

Using simple methods, like piloting, controlled experiments, and allowing the emergence of what works and what doesn’t, this type of experimentation can be successful in almost every organization. And when you learn what works, and then work to improve it, you create the kind of marketing innovation that puts you ahead of your competition.

Why does this matter? I will refrain from beating the now-tired drum of “the market is changing” (which really means your buyer is changing) – we all know it’s true, and will continue to be. If you’re trying the same things over and over again (even if you are improving them every time), you will become irrelevant.

Why does it matter now? In the past year, I’ve seen several companies start to see their marketing effectiveness eroding, only because they won’t (or don’t know how to) try something new. And I don’t know if I believe the doom-and-gloom economic forecasts, but I do believe that the market will become more challenging in 2008 than it was in 2007.

So the question is: are you going to keep doing what made you successful last year, and let someone else find a new way to beat you? or are you going to experiment with new ideas and find the new way to beat them?

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conversation

October 10, 2008

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It’s a new year, and that probably means that you’ve made a bunch of resolutions and now you’re thinking about how you’re going to make all of those resolutions happen. There’s no shortage of resolutions to be made, and I’ve made more than a few of my own (breaking a long tradition of refusing to focus on the new year as a useful time to incite change).

But over the past year, I’ve begun to see something of a disconnect between the resolutions we’ve made in our work as marketers and the challenges we face as marketers.

In my conversations with marketing leaders, mostly in the business-to-business world, I’ve heard lists of resolutions that include: getting better at measuring campaign results, using the latest technology to run campaigns or to reach prospects, doing a better job of generating quality leads for the sales team, building award-winning branding and advertising, quantifying the results of our new-media efforts, and creating a “green” effort for our brand. There are many more, but the ones that fell into these categories were the most popular.

But then I look at the same conversations and I read the marketing press (and lots of other well-respected blogs that are too numerous to link here) and I conclude that marketing leaders, executives in particular are facing some key challenges: short marketing executive tenure (particularly CMOs), marketing needs more of a seat at the leadership/strategy table, the value of marketing is not well-recognized or accepted (with some even calling for the elimination of the marketing executive role completely).

Does better measurement mean that the value of marketing can be demonstrated better. Well, yes and no. I’d argue that it can demonstrate the value of marketing programs and campaigns. But does measuring lead quantity, lead quality, relationship value, conversational metrics, and all the other traditional and new media metrics we put in place show how the CMO contributes to the overall strategy of the organization?

I’ve seen only one measurement in an organization that demonstrates that anyone (or everyone) is making a valuable contribution: revenue. But I am left asking this question: does measuring the revenue result of marketing programs place a value on the CMO’s contribution?

I don’t know the answer to that question. Yet. But I look at another key executive, the CFO as a point of comparison. Why? Like the CMO, the CFO has measurement responsibility, fiduciary responsibility (for financial position as opposed to brand and market position), and no direct responsibility for revenue creation. What can we learn from the fact that the CFO has such a strong strategic role in nearly every company?

And here’s where we get back to that new year’s resolution thing. My one resolution for this year, as it relates to improving my effectiveness as a marketing leader, is to be able to make new year’s resolutions next year that are consistent with the challenges I face and help me move my effectiveness and my contribution to my company forward.

This means I have to understand the key question I’ve raised here: What underlies the apparent disconnect between marketing leadership and the expectations of corporate leadership? It seems that whatever this disconnect is, is the underlying cause of short CMO tenure, perceived lack of a strategic role “at the table” for marketing, and so many of the other issues I’ve seen raised in the past year (or two, or three, or ten).

And as with so much of what we learn, this will be a conversation. I know I’ll be having this conversation with many people in this field, and I’ll issue my usual and truly sincere invitation to you to participate. I still believe the larger the crowd the better the wisdom.

And as with any resolution, if I want to accomplish it this year, I have to be well on my way by the time we’re three-quarters of the way through the year. So I’ve picked a date that’s meaningful to me (no, it’s not my birthday) by which I hope to have moved much closer to some conclusions and answers.

Care to engage in the conversation?

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Brand

Reading Your Spirograph

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I’ve been reading a lot over the past few weeks on the explosion of social networks. It’s hard to read marketing blogs and not read about Twitter or Facebook, and how they relate to Pownce and LinkedIn and all the other options. Oddly, I don’t find myself at all confused. I’m on LinkedIn and Facebook, Twitter and Pownce (and more). There’s crossover among the people, but from my perspective I know intuitively what (and who) goes on Facebook and what (and who) goes on LinkedIn.

Why? I have circles – more than one. People who find me to be a worthwhile business contact gather around me in that context and form my community of business associates. People who find me interesting as a friend gather around me and form my social community (as is social life). Some people are in both. There are more circles than that, some very closely related, some not, some entirely within others (my friends from school is a subset of all my friends). If I tried to draw it, it might look something like an unbalanced spirograph.

Marketing perspective 1: Your market looks just like this. Your customers, your prospective customers, people who might one day be customers all create the community which gathers around you (because they find what you are saying and the experience you offer interesting – but that’s a whole conversation in itself – look for more posts soon). But they have different reasons. Some like the lifestyle implications of being your customer, some like the way you care for them (I hope), and there are so many more. Knowing what these are, and what they can become means you can understand the kinds of experiences you must offer to engage the various communities.

Marketing perspective 2: In each of these circles – the communities in which you survive as a producer of experiences (note: not “business,” not “goods and services”) some of the community members are very close to you (maybe your most loyal customers) and some are on the edge, maybe moving in and out of your community as it suits them. Knowing who is where and why is critical to knowing your market, and being able to engage them in conversation and deliver a relevant engaging experience.

Reading the unbalanced spirograph that is your community, knowing its shape, knowing its distribution means being able to serve it well.

Knowing how it might change means being able to change with it.

Being able to create new circles (where neither you nor your competitors are delivering relevant experiences today) means being able to create disruption.

What does your spirograph look like?

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Community

What if your navel stared back?

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From Mashable:

Bloggers! Here Comes Navel Gaze Sunday
A trend: sometime every Saturday afternoon Eastern Time (now), tech bloggers run low on real news, and a story about bloggers themselves gets an unnecessary amount of airtime. On Sunday, it rises to a rabble before dying down as the Monday news starts coming in – call it Navel Gaze Sunday if you like

No, there’s nothing really disruptive about this at all. But it does lead me to ask whether bloggers (in general) are creating communities around themselves, or are the collective “they” just one community?

If you choose to start or use a blog to promote yourself, your company, your book or whatever ideas you want to put out into the market, while you are working to make it less promotional and more a part of the so-called blogosphere, you also have to remember that it needs to appeal to YOUR community, and not the community of bloggers.

You tell me: By talking about bloggers talking about bloggers on my blog on Sunday, have I participated in the tradition I just tried to warn against? Would it have been possible not to?

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Brand

Circle of Conversation

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This image was not created to represent a market. But it does. And it shows a dimension of a market that’s often overlooked.



I found this on FaceBook, it’s an application called FriendWheel. You are at the center of the circle (this is a sample by the author of the application) with all of your friends around you. The lines represent the connections among your friends. If you were in high-school, it might show the potential for people gossiping about you.

But, a market? YES!

Your market – the collection of people (businesses – or actually the people in them) who buy from you, who want to buy from you, who have bought from you and might again (or might not) – is not a straight-line list (though that’s how we often think of our customers and prospects – as just a list). Your market is the group of people who have gathered around your company and your products because they find you interesting and engaging (the same reason your friends hang around you). And you (your company and all the people in it) are at the center of that crowd.

But the conversation is not just bi-directional (you’re doing pretty well if you are truly having a bi-directional conversation). There are conversations happening in all directions around you. Most don’t include you, but if they are happening around you, they are, more than likely, about you.

Your brand (the total experience and impression of you in the collective minds of the market) is being defined in these conversations. So look carefully at those lines that connect the members of your market community to one another. They show you how closely your market participants are connected, and how they are connected. They’ll help you understand where the conversation is taking place and how you can get closer to it.

Why? Because the conversation that defines your brand – and your success – is happening. And when your market is about to be disrupted, it is in these conversations that you’ll learn about it. Are you listening?

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Differentiation

Happy 4th of July!

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I know I’ve been a bit behind in posting recently, but I want to take this opportunity to wish everyone here in the U.S. (and any Americans abroad who might find their way here) a Happy 4th!

And lest we be reminded of this one too many times (and I hope I’m not sounding jingoistic here), it was 231 years ago that a small group of very smart people had a very different and disruptive idea. They gathered a community around them and created something never seen before – a democratic (system of government, not party) nation.

For much of what we call the “western” world, this is now commonplace. But it’s always possible, for better or worse, that somewhere in the world disruptive political change might be happening again today (it’s happened a few times since 1776).

But I’ll offer my admiration to those who dared to think differently and stake their lives on it (among them one of my most admired people). And I’ll remember that the ability and imperative to create change never ends, and applies to all of our institutions and every part of our lives.

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