Rants, Reasons, and Rationales

So I've been asked by the Globe and Mail, one of C...

2007-04-23T16:57:00.000-04:00

So I've been asked by the Globe and Mail, one of Canada's national newspapers, to comment on the power of blogs if you're looking for a job. Isn't that neat? And, to add irony to the story, here I am writing a blog about being asked about writing a blog. It kind of seems like looking into the looking glass, doesn't it?

I think this story has absolutely great timing. Think about it. The baby boomers are retiring. By 2008 almost 25% of the workforce can retire. By 2010 that number increases to almost 50%. Never before in history has it been such an employee's market. Recruiters will be calling you non-stop to lure you away from your current employer and convince you to take a job with them. The boom is only beginning. Yet, despite all of these realities, the story being written is about using blogs to help you find and secure a job. Why is that? Well, if you ask me (and I know you didn't ask so I'll simply offer my opinion), it's not about getting a job so much as it is about getting the job you want. Ironically, this same rationale applies if you're using a blog to promote your company. Blogs are here to stay. The real question is are you using them?

Are blogs really such a new-fangled idea? The fact of the matter is that they're not. In history, blogs were referred to as diaries, or journals. And then we simply got too busy, and too digital, to even put pen to paper let alone to chronicle our thoughts. And then came blogs. It's like 'back to the future', but without the soundtrack or the associated revenues. Or are there revenues? The answer is -- absolutely there are revenues. If you get a better job, or a new client, or syndicated, then you can generate revenues that didn't previously exist. And all of this happens for doing something new that's really something old. So what's stopping you?

Let me help you understand why you should be blogging.

It's all about the brand call You! It's about Thought Leadership. And, trust me, you want both! Especially if you're looking for a job.

If you truly believe you are qualified for a job, why wouldn't you convey your abilities and your opinions online so that you will stand out from every other applicant applying for the same job? How will you stand out? How will you differentiate yourself from the applicant that does have a personal website or a personal blog or both? Are you prepared to put yourself at a disadvantage from the get-go? If you are selling yourself as a candidate able to be familiar with current technologies and solutions then how can you be credible if you do not use these vehicles to build your own brand and thought leadership? Bottom line, you may be the best candidate but if you're not using all of the tools at your disposal then you'll lose that job to the candidate that is. After all, as we like to say in Marketing, perception is reality.

So how do blogs help you get that job? Well - lots of ways. The real question you're probably asking, though, is "Why would I create a blog?". The answer is - lots of reasons! Blogs, on a personal level (like my blog, for example), can be utilized for a variety of reasons, including:

Express your opinions. That's what thought leaders do. People don't have to agree. They're just opinions. That's what the Comment feature is for - to encourage debate on anything you post.
Open people to new ideas they may not have considered. Isn't that how you learned? Isn't that how you differentiate? Sometimes we all get stuck in a way of doing things but new approaches change the game. If you're the one making the suggestion, even if you didn't create the idea, you're the one getting credit for being 'a thought leader'.
State your beliefs and philosophies. If people agree with you then they'll immediately engage you for opportunities. If they don't agree with you then they won't waste your time. And, best of all, they'll like you out of the gate so you don't have to waste cycles on small talk.
Promote yourself by promoting your blog. Whether you reference it in an email signature, a letter, a business card, a website, or anything else, be sure you promote the blog. Isn't that what brand leaders do?
Indirect references. People who read your blog will talk about it to other people. And,as the old commercial goes, they'll tell two people, and they'll tell two people, and they'll tell two people and so on and so forth. Before long, you have a reputation and a following. And then you're in demand. And then you have options.
Targeted engagements. So you want a specific job? Send the CEO a link to your blog. Tell them that you can make an impact on their company. Trust me - even if they don't read it they'll be impressed. Before you know it, the head of HR will be calling you to come in for a visit.

These are just some of the ways you can create your brand and thought leadership with your own blog. When the article is published, I'll create a link to it. In the interim, check out this article from the Wall Street Journal.

So there you have it. I probably just gave you the tools you need to take away that job I always wanted. Just remember me. And promise me you'll keep on practicing good Marketing. And, of course, reading my blog.

How go your processes? Processes, you ask? Whic...

2007-04-23T16:14:00.000-04:00

How go your processes?

Processes, you ask? Which processes do you mean? The processes where we de-dupe our lists? Or the processes where we organize events? Or the processes where we process new leads? Yes - those processes. And the other processes, too, of course.

If you're a Marketer, what involvement have you had in the process flows defined in your Customer Relationship Management (CRM) system? Have you been involved in the sales methodology flow? Or the forecasting flow? Or the support and case management flow? Or the change request flow? Or the New Product Introduction flow?

These are a few of the major flows which affect the success of Marketing. While Marketing is known for its creativity, the real fact of the matter is that it is only successful if the processes are in place to attract new leads, to follow that lead all the way through a sale, to manage that sale through implementation and deployment, and then to ensure that the customer has a high customer satisfaction rating.

Why do I care, you ask?

Well where does your next testimonial come from? Or your next client reference? Or your next case study? Or your next whitepaper? Or your next word-of-mouth referral?

Processes are what turn great Marketing into brand leaders.

And while Excel and Email are great applications, they are not the bastions of process creation and tracking that we all seem to think they are.

With today's cost effective, software-as-a-service tools, like Salesforce.com, there really is no excuse to NOT invest in the infrastructure required to guarantee your corporate success. CRM does not have to be expensive or difficult. I'm telling you - if I can do it than so can you! Ask me and I'll share my experiences with you.

If you're Marketing is not embedded throughout all of the process flows, throughout every touch point your company has with the consumer, than you are NOT controlling your brand. It's that simple.

So what's holding you back? Are you scared? Are you a creative type that doesn't know how to do 'process'. Do you feel 'process' will stifle the creativity? If so, then it's time to get over it and truly compete. Otherwise, you'll be a second rate, unemployed Marketer who can brag about all of the creatives you've done but can't say a damn thing about the revenue you generated.

If you don't believe me then let me ask you this simple thing. What is the number one lead referral vehicle in the world? If you said 'word of mouth' then you are absolutely right. Any other answer and I suggest you go back to Marketing 101. If you don't believe me then I suggest you review my previous post where I use myself as my own focus group. See if you can relate to this real-world scenario. If you are calling one of your personal suppliers (your bank, your credit card company, the phone company, etc.) and you have an intuitive automated attendant followed by a wonderful interaction with a real person, are you not raving about that provider to all of your friends? Of course you are. And if the opposite has occurred, which is honestly more likely, where you have the experience from hell, are you not equally sharing that story with your friends? Of course you are. These experiences that you are personally having shape the very brand and reputation of the suppliers you use. Knowing this, shouldn't you as a responsible Marketer make the process flow, also known as the 'Customer Experience' an enjoyable experience? The answer, when you personalize the issue at hand here, is so very obvious.

So there you have it. Great marketing starts with great processes - and that's the truth.

Welcome to Marketing, folks, where process rules and creativity reigns. After all, with proper planning, you can have your cake and eat it too.

Marketing is an interesting game. It relies on us...

2007-04-23T15:56:00.000-04:00

Marketing is an interesting game. It relies on using strategy and tactics to create business demand, product road maps and brand awareness. Yet, despite these lofty goals and ambitions, Marketing is often measured by the success of the Sales department. After all, if the product isn't moving, well it's because the Marketing isn't any good. Right?

Whether it is a lack of brand awareness, or a lack of appropriate supporting tools, or a lack of new leads, Marketing is about ensuring your reps, or your channels, have the tools they need to succeed. In this day of Marketing transparency via new-fangled Key Performance Indicators (KPIs), it still comes down to revenue generated.

So here is the point. Are your sales and channel representatives having the success they need? If they're not, I'll bet it comes down to product education. In other words - all of the strategies and tactics in the world mean nothing if they simply do not understand the product and how to sell it.

Who owns the training of key people within the company? Is it Marketing? Or should the reps be responsible enough to take what you give them and train themselves. My experience is that they are well paid. Typically far better paid than almost any other employee. So why shouldn't they own that responsibility. Between you and I, I think they should and any excuse to not own it is an abdication of their own responsibility to the company, their professional peers and the shareholders. However, real life isn't always fair and it doesn't always work that way. In the real world, it is usually the job of Marketing to train the sales force. So you have to ask yourself the question; are my reps trained sufficiently so that they can deliver the content?

Training is really just a level deeper than the knowledge and content created to create demand and to attempt to close sales. It puts the words in the mouth of the reps which support the tools and the visuals behind the brand and the sales tools. It starts with simple things, like speaker notes on presentations, or lists of frequently asked questions. It goes on to qualifying scripts for inside sales or telemarketers where you create value-based questions that seek responses which qualifies a prospects pain. It gets more sophisticated with things like value-based calculators that document the value you can deliver based on the competitive differentiators of your product. And to do that you need to know what those competitive differentiators are. And you don't guess at them. You ask your customers. You ask your prospects. And you especially ask after you lose. It's amazing what people will tell you when you ask.

I, like most Marketers, dislike having to train the Sales channels. However, I also realize it is the Achilles heal of almost every Marketer out there.

How effective are your Marketing campaigns and Sales tools? If they're not what you'd hoped for, in other words the revenue isn't matching your expectations, then you should evaluate your training programs. Whether you like it or not.

Sometimes, blogs are like relationships. You beco...

2006-05-04T17:01:00.000-04:00

Sometimes, blogs are like relationships. You become comfortable with one another even if you don't say much. Hence, I apologize but I really haven't said much lately. It's not because I don't value your readership, it's simply that I trust the relationship we've developed. How's that for personal.

So, with that as the catalyst, allow me to ask this question of you. How comfortable has the relationship become with you and your customers? In my case, when I don't talk to my wife, I think I'm behaving like a typical man and am merely conveying that everything is alright between us and that there isn't much to say. She, like many females, will view the situation differently. She will feel that something is wrong, obviously, because I'm not talking to her anymore. If I continue to not talk to her then I run the risk that she will become irritated with me Guess what? Your customers and you have the same dynamic. Just don't ask me who is the male and who is the female in that relationship.

So why do we want to have a relationship with our customers? Obviously there are many reasons but lets review a few of them:

to ensure they are happy
to see if they want to buy more stuff from you
to understand how they use the products or solutions you sell
to understand what pains and problems they still have which may be an opportunity for you
to develop a new product, a market, or to extend your current offering
to learn how they select solutions like the one you offer so that you can better target your marketing activities
to discover what associations, standards bodies, or networking groups they associate with so that you can become active in them and be perceived as a thought leader by all who might purchase your solution
to have them identify how your solution has operationally or financially benefited them
to help you understand why you won, or lost, a deal against your competition
to see if they'll share with you anything your competitor is telling them
to utilize them promotionally for such things as press releases, case studies, whitepapers, presentations, quotes or testimonials
to have them participate in any beta trials of your solutions in real-world scenarios and provide you the feedback
to have them introduce you to other potential customers

As you can see, the list goes on and on. Your customers are your biggest asset. Bigger than any one employee. That's why, in my "What I Do" section on my website, I state that one of the three strategic roles for Marketing is "Increase the value of the brand, goodwill and customer annuity assets".

So what does that mean? Brand? Goodwill? Customer Annuity? Most people don't get it. Let's see if I can explain it better.

Are you willing to pay more money for a shirt with ten cents worth of thread on the chest that forms the shape of a horse, verses a shirt that doesn't have that ten cents worth of thread? If so, that's because you value more the 'brand' of the shirt with the ten cents worth of thread. That brand was developed by associating an image with the manufacturer. In this case, the image is one of affluence, style, and success. You want to identify yourself with that brand and you'll pay handsomely for that ten cents of thread. If you're paying handsomely, then the company selling you the shirt has invested in promoting an image with their name and as a result they can charge a premium. That premium means their average selling price is higher than the industry average, as is their profit margin. By default, you can assume their revenue per employee is much higher than the industry norm as well. If that's the case, they can probably raise additional funds for new or future investments quite easily because of the 'goodwill' associated with their corporate identity. There's the term again - goodwill. If you go to dictionary.com, you'll see goodwill defined as

The amount above the fair net book value (adjusted for assumed debt) paid for an acquisition. Goodwill appears as an asset on the balance sheet of the acquiring firm and must be reduced in the event the value is impaired.
The discounted value of a larger-than-normal return on tangible assets. A business may build goodwill over time as loyalty builds among its customer base.

Said another way, the company or product with the great brand will command a higher-than-normal sale price if it was sold simply as a result of the brand equity. Suddenly, growing customers to develop brand can result in excessive goodwill? Is Marketing sounding like a profit center to you? Is it possible? Wait - it gets worse. Did you know that if your customers like you, feel like you understand them, that you engage them, and that you create solutions that they have participated in the development of, they will then continue to buy from you. Worse yet, they'll endorse you via word-of-mouth referrals. Isn't that crazy? Guess what? If they do, because you did a great job at communicating to them and with them, then what you've done is created an ongoing financial Customer Annuity. Said another way, the customer brings you money year after year after year because they value your brand.

Don't get me wrong. It takes great products, and great customer service and support to ensure the brand identity is upheld. However, if you do it properly, you'll have inputs all along the way from the customer to you as they touch your company (or your brand) at each of these touch points.

That's Marketing's job. To communicate with customers. Marketing is here to ensure the company makes money. And it is also here to ensure the processes and IT infrastructure are in place to ensure an amazing customer experience. Press releases alone won't do the job of communication. Nor will brochures or collateral. Communication is a completely integrated strategy.

One more point - strategy without execution is a recipe for failure. I'm counting on you to be a success so that your customers will make your company a success so that you can then share the financial rewards with me. After all, I gotta family to feed too.

As my mom used to say "Just be yourself". I've me...

2006-05-02T18:20:00.000-04:00

As my mom used to say "Just be yourself".

I've mentioned below, in previous blogs, that most Marketers attempt to guess at what their target audience wants. They seem to check their brain at the door and not use themselves as a focus group. So what am I getting at? It's like this - when Marketing, just be yourself.

Ask yourself this: do you enjoy being sold? Do you enjoy the used-car salesman approaching you with the best offer ever? Do you roll your eyes? Do you run away? Fast? I do. I can't stand it. I hate it. I despise it. I will leave the store and never come back again. Do you agree?

Okay - so you agree. Great. So then why do we do promotions that are full of marketing-ese and sound like earth-shattering hype when in fact you're blatantly trying to sell something and everyone knows it?

A friend of mine, who has his own rare books business, was chatting with me the other day. He was about to issue a newsletter promoting some great deals for Mother's Day. The email content was good. It was consistent with what his opt-in list would expect. But his email headline was too salesy. When questioned he responded that he had scanned the headline for any words that the spam protectors would reject. And he acknowleged that he was being defensive (don't you hate defensive Marketers? If you've got a better idea then share it with me. I won't be defensive. I have no concern sharing the glory if you make me successful). So I asked him to think of himself, arriving at his home computer after a hard day at work, opening up his email client and seeing the bold subject headings showing him his new emails. I asked him what he would do if he saw an email heading that started with "Last Minute Deals...". I asked him to be objective. You know what? He didn't even answer my question. He simply said "I know. You're right. Help me.".

You know what the answer is? Just be yourself.

Talk to your prospects and your customers. Don't go on the attack. Engage them but don't sell them. To a degree, if they're interested, they'll be your customer. Where you really should be investing your time is on how to convert them once you've got them interested. When I mentioned that, he outright told me that that was his biggest challenge. He's not alone. His issue was that he was going to scare away potential clients before he ever got to the conversion challenge.

Ironically enough, after I finished talking to him I checked my own email and saw my latest newsletter from MarketingSherpa.com (BTW - the headline was "New Email Marketing Data". Does it get any less promotional than that? I opened it immediately.) The newsletter had a case study about which email subject lines work best. Check it out here. It says exactly what I had told my friend, but it proved it with actual statistics.

Bottom line, as I told my friend, use smaller control groups to trial your messages first. Then launch the campaign to your entire audience with the knowledge learned from your control groups. It's not rocket science, but the reason common sense is so common is because everyone has the same challenge.

So what's the point of my blog, this time. It's this: stop trying so hard, and just be yourself.

I’m my own best focus group. I really am. I l...

2006-04-29T12:06:00.000-04:00

I’m my own best focus group.

I really am. I learn more from studying my own behaviours than I do from anything or anywhere else. I think far too many people who practice Marketing fail to do this. They spend their time wondering how a target segment will react to a promotion or a campaign, yet they never imagine themselves as the recipient of the proposed promotion and attempt to diagnose what their own reaction would be.

Another thing I’ve learned is – listen to your gut. If I think I’m going to react a certain way, but my mind uses logic to argue otherwise, I’ve learned to prioritize my gut over my mind. Of course, it took me several years and numerous under-performing campaigns to realize this. Then again, I never said I was a quick learner.

I’ll give you a recent, personal example.

I’m involved in a hockey playoff pool. It cost me $20 to join. The purse is split up depending on where you finish the pool. If I finish in first, I can win almost $200. Not a bad return.

Okay, the strategy in most of these pools is to pick the team you think will survive the most rounds, and then pick as many players as you can from that team. Over the long haul, you’ll earn a steady collection of points, and eventually you should place very well. In my case, I decided to pick the New Jersey Devils. They weren’t my first team choice, but based on where I was in the drafting order, that was the team that seemed to offer me the best chance. What makes matters worse is that I’m a fanatical Ottawa Senators fan, and my childhood favourite team was the Detroit Red Wings. Said another way – my team “loyalty” belonged to Ottawa first, and Detroit second – but not New Jersey.

Part of the pleasure in the pool is the daily email banter among the participants as the updated standings are released. Recently, one of the participants (who is not doing well at all) declared that his poorly performing Eastern conference team would pick up the pace and make it to the semi-finals but would lose there to Ottawa. Similarly, he declared, his poorly performing Western conference team would pick up the pace and make it to the finals, where they would also lose to Ottawa. In this scenario, he would climb back up the standings, win the pool, yet still have his favourite team – Ottawa, just like me – win the Cup. Of course, we ridiculed him for such fantasy, but then again that’s just what we men do. We trash talk.

Now, at the same time, this scenario got me to thinking. Would I be okay if that were to happen? If it did, I would not win the pool however my team would win the Stanley Cup. Guess what? I was absolutely okay with that. So, looking at it differently, you could argue that I was willing to sacrifice $20 for the team to which I was loyal would win. Isn’t that interesting? Marketers would love me because I would pay incremental money to support a brand I was loyal to.

But would I? Let’s look at it differently again. If, before the playoffs started, someone approached me and said “If you give me $20 now, I will ensure the Ottawa Senators win the Stanley Cup.” Assuming I took them seriously, I know I’d hesitate to pay that $20. I might pay $5, but probably not $20. That’s a lot of money. So, what I’ve learned about myself as a consumer is that I’m willing to pay a modest amount of money to support my loyalties (or my brand biases), but I need to be convinced to pay a lot of money to support my loyalties. Hence, my loyalty only goes so far. I’ve also learned that I’m willing to accept the loss of an existing investment ($20) if it means I achieve my ultimate goal (Ottawa winning the Cup). These two observations point to two different parts of the buying cycle.

The first lesson learned here is that I need to build loyalty for my product offerings. I need to make it the preferred brand. If I do that, consumers will actually pay nominally more for my brand than they would pay for a similar and equally effective brand. Hence, I increase my average selling price, my overall revenues, my profitability and my operating efficiency by simply investing in building my brand.

The second lesson learned here is that I can convert an existing competitor’s customer and make them my customer – causing them to change loyalties – if I can demonstrate that my offering will deliver to them the value they are seeking (like winning the Cup). Hence, in any campaign or sales cycle, you will only disrupt and oust the incumbent if you can demonstrate a significant gain in value. To do this, you must need to understand what the customer is trying to achieve. If you don’t do this then you will never know how to position and justify your offering over your competitors. This audit process, or assessment process, is the critical part of the sales activity. It also says that you need to have a very deep understanding of the operational and financial impact your product has made for your existing customers. By knowing that, you can actually prove the value statement you will claim in the sales cycle. You will appear as having high integrity.

What’s interesting is that neither of these two lessons learnt had anything to do with a product’s features or functions. However, isn’t it true we spend most of our time discussing those very things? And that’s why those campaigns, those sales tactics, always fail. A feature, or a function, is a cool thing. But, a feature, or a function, that results in demonstrable operational or financial gains, is a smart investment.

And all of these observations happened because of a simple hockey playoff pool. Oh, and because I remembered to study my own behaviour as an indication of how my potential target consumers might react. So – are you your own focus group?

Interactive Marketing is core, not part, of your M...

2006-04-27T08:16:00.000-04:00

Interactive Marketing is core, not part, of your Marketing strategy.

It is. Or it should be. So why resist it? Further, why are you treating it simply as a component of an overall mix? "Okay, folks, we've got your print advertising, your direct marketing, a few seminars and some online banners. We've got all the angles covered. We rock."

Move on. You don't get it. Find a new job. Ask the in-laws to get you into the family business. You're costing your employer money by misspending the Marketing budget.

Recently, while reading Tony Romeo on imediaconnection.com, I learned about Max Planck. He is considered the father of Quantum Physics. A quote attributed to him is appropriately suited to the very topic we're discussing here:

"A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it."

Fundamentally, this quote is the primary reason many Marketers target youth with the new media techniques of the day. They're receptive to it, far moreso than the established consumer. However it should also be noted that, with examples like VHS, DVD, mp3, and the Internet, even established consumers do ultimately adopt innovations -- or they die in their resistance and since we don't want to market to dead people we'll just disregard that segment. If you've ever needed a better example of crossing the chasm you're not going to find it. Once something becomes mainstream enough then everyone comes onboard. Transitioning from early adopters to late adopters, it's the new media marketing techniques that bridge the consumer behaviour.

So what does all of this mean. It means that online advertising, blogs, podcasts, micro-sites, and email marketing are just some of the more critical mixes required of your marketing communications efforts. Why? Because these vehicles are more personalized than anything else you could achieve using traditional methods such as print advertising, direct marketing, or tradeshows. Consumers, in the privacy of their computer, can surf to the content that most interests them.

Does this mean that print advertising is dead? And isn't print advertising equally personalized when placed in segment specific publications? The answer is "No" on both questions. Because consumers are young and old, you want to live where they live, and that often means the trade magazines. However, the trade magazines have mass distributions, even the niche publications, and your advertisement doesn't have the ability to connect with the reader the same way a very-specific online advertisement can because the online advertisement can be very specifically placed based on the content being viewed by the surfer, or based on the behaviour of the surfer. Further, even if your advertisement is compelling, it requires action on the part of the reader to physically do something - pick up the phone, or go to a website and input the address. People don't have time for that. But they do have time to simply click on your banner and rapidly decide if what you're promoting is of interest to them.

These are the real issues you need to consider.

Interactive marketing allows you to establish an intimate relationship with your target audience; moreso than traditional outreach mediums.
Interactive marketing is significantly less expensive than traditional mediums, establishing a much more effective return on your investment. This allows you to do much more with the your always limited budget.
Interactive marketing reaches a much broader, more diverse, more qualified consumer of your goods. Afterall, they are destination seekers. If your content is there, they are interested. The destination does the qualifying for you.
Interactive marketing allows you to service your customer. In the end, you build far better, and faster, brand loyalty by being part of their education and awareness than you would traditionally.
Interactive marketing addresses all age brackets. Even if the industry you market within is established, with a demographic of 40 years of age or older, they still surf the Internet and use it as a resource. They have to. They have kids, nieces, nephews, and friends that more and more are forcing their behaviour and their adoption. Even if its just because they communicate with one another through email. Familiarity breeds adoption.
Ignore what the experts in your field say when they suggest your target demographic do not use the Internet. Take the time to survey the customers yourself and ask them if they do. You need the results to demonstrate to the so-called experts in your market that times have changed.
Interactive marketing is best used to connect with people personally. That means you don't treat it like print advertising or mass mailers. You focus on personalized messages, on segment-specific content, with a call to action that speaks to their need for help, for education, or for financial returns.
Finally, as it always does in business, create a business case that demonstrates the ROI of Interactive Marketing. Despite preconceived notions, everyone's a business person and they'll always tolerate investments they initially doubt if the numbers support it. In the end, you'll be the winner when they see the results.

Still not sure? I can tell you why. It's because you don't know how to do it. You don't have the knowledge. You don't know where to go to find it. You don't want to invest your time to learn it because you're already overworked. If that's the case, I can only make this one suggestion. Make the time. Your career and your salary depends on it. I suggest you go to my website and review the links. I've got a lot of relevant sites on my site that can really help you out. And if that's not enough, email me.

In the end, as you know by now, all I've said is just my opinion. I guess the question you have to ask yourself is "are you part of the old generation, or the new generation"?

Do you value "Value"? I know. The question doesn...

2006-04-25T10:27:00.000-04:00

Do you value "Value"?

I know. The question doesn't make sense. Allow me to expound.

How many of you have been told: "We don't market products. We market solutions.". Of course, what they mean is that they don't sell MS Word, they sell MS Office; a complete solution to all of your needs as it relates to desktop productivity. And then, once that is established, they talk about all of the fantastic features the solution offers like spell check, object linking between applications, and on and on.

Did ya see my point? Did ya get it? Was I too subtle?

Nowhere in that paragraph did it talk about the value to the end-user -- the paying customer -- of having a complete solution. How does it make their life better? What is their experience? What is their current pain and how will that go away? How will their career improve? How will it impact their next promotion or salary review? How will it help them achieve the metrics for which their boss or their employer measures them against?

Speaking "value" means making it personal! Consumer brands get this. That's why I roll my eyes when experts from consumer brand companies come and speak to technology marketers. They're not speaking from the same frame of reference. Technology marketers, brought up in traditional engineering-centric companies, will never understand or relate to what is being said. The concept of "brand" is foreign and lost on technology marketers, especially in Canada.

So why do I care about "value"? Afterall, it's the cool features that help me differentiate myself from my competition, right? Wrong. Most users use less than ten percent of the actual functions of the product. Features, after a while, don't matter. In fact, in a future blog I'll talk about dumbing down your product and removing features for competitive advantage.

You care about value because you're gonna use the benefit to create a business case for the consumer so that they can justify purchasing your solution. Huh? Let me explain. If a complete Office suite makes you five percent more efficient, and your salary is $50K per year, that means we just saved your employer $2,500 per year. Over four years that's $10,000. Now, if you have one hundred employees at your company, you can multiply the savings by one hundred. That means, over four years, you save your employer $1,000,000. That money can be re-invested into other strategic initiatives (like a company health club!) that will increase productivity and make you more competitive. It's like found money. And what you did was help the purchaser justify the investment. And we did it without a single demo, a single whitepaper on technical capabilities, or a single dissertation on the academic merits of our algorithms verses the competitions'. You've created a barrier to competition that your competition is completely unaware of and will never respond to in the sales cycle.

And that's why you should value value.

Unless, of course, you'd rather not succeed.

Canadian Technology executives do not get Marketin...

2006-04-24T11:44:00.000-04:00

Canadian Technology executives do not get Marketing!

There! I said it.

I don't think Canadian technology executives understand anything about Marketing. Seriously, I don't.

Don't get me wrong - there are always a few exceptions. Instead, let's look at the overwhelming majority.

If you're in the technology industry, in Canada, then I want to ask you this simple question.

"What is the role of Marketing within your organization?"

Let me provide you some answers that I've received, or have observed on job boards or in consulting gigs, and tell me if you disagree.

Marketing - creates hype and awareness
Marketing - creates collateral
Marketing - runs tradeshows
Marketing - spends money

So? Does this sound familiary? Is this what you would have answered? Is this what your company leaders are doing with their Marketing department?

Okay - so let's ask the next question. Is this how American companies treat Marketing? BTW - the answer is "sometimes, but most of the time it is a strategic weapon".

Let me be loud and clear about this. Marketing is a profit-center. Marketing should assess market needs, create products to serve those needs, create channels to distribute those needs, and create brand equity to value those needs. And everything I just said is strategic -- not tactical. Marketing is where strategy meets execution and creates a return for the investors.

Sales is execution. R&D is execution. Operations is execution. Everything else is execution.

By now, many Canadian readers will be rolling their eyes. So let me ask those readers this question. Does Nike or Coke or Dell or IBM or Microsoft or Tim Hortons or Apple win because they have better products, or do they win because they identify or create a new market need (hmmm, iPod anyone?), create products that meet those needs, create channels to distribute those needs (hmmm, iTunes?), and create corporate brand equity to justify a higher selling price than better products from less nimble competitors (don't tell me your iPod is the cheapest or the best player on the market because it's not - yet you probably have an iPod even knowing that)?

And now that you know my opinion on the role of Marketing, and the incredible dearth of talent in Canada to address it, you understand why I created this blog. The good news is that there is a small contingent of home-grown talent slowly stepping up to answer the call.

The real question in all of this is - will Canadian executives get it in time?

Send me your opinions.