Tuesday, December 30, 2008

Don't we love a disaster

With the year drawing to a close, I thought I would look back at the stats for my blogs over the year. The blog about the disasters of Wendy's and Burger King's marketing was, by far, the most popular. And popular around the world.

Most of the readers found the blog through a Google search. Have Wendy's and Burger King become the equivalent of rubbernecking a car crash? As North Americans, we have a morbid fascination with disasters and these two fast-food joints are definitely the prize winners for disastrous branding and marketing.

I re-read the blog to see if there had been any changes to the situation since writing about them in January. To my surprise, the brand-scarring I mentioned in the blog had been eliminated. The evil papier mache King head seems to be gone and the idiots in red braids seem to also have left the building. And thank goodness for it.

Wendy's brand has become more stable and likable again. Burger King is still a mangled mess, but at least they aren't scaring people anymore. (Well, they do scare me but that's a different thing. What scares me is that someone is out there making money off this mess and pretending they know something about marketing)

Needless to say, ill-conceived marketing ploys will be more painful for companies during the recession. Lack of consistency and follow-up will affect business bottom-line in a more pronounced fashion. With a tighter hold on their wallets, consumers and businesses will be making more thoughtful decisions about where they spend their money. Emotions induced by marketing messages will have more power to create a strong customer base.

Tight credit and closely held wallets won't make people stop using their emotions when they make buying decisions. They'll just get better at rationalizing the purchases. So mind your marketing and how it affects your customer.

Best wishes to all for a prosperous 2009.

Friday, December 19, 2008

If only they could remember why they were unique

Automakers are a fine example of what happens when everyone looks and sounds the same. I'm pretty sure their television ads are actually intended to demonstrate the quality and value of the product, but when everyone is saying and looking the same, why even spend the money?

When was the last time you saw a television ad for a car or truck that truly inspired you, either emotionally or mentally? For the last several years, there are only three vehicles that actually stand out for me. That's three, out of hundreds.

The Cadillac CTS 'Hammer' ad is one of them. As an A-type personality, the message fits me to a T. I found myself emotionally involved in the delivery of the message because it totally defines my personal style. I intentionally watched it a second time to learn what car was being promoted. And since then, I just watch it because I love it.

Kudos again go to Cadillac for their ad with Kate Walsh. I don't think there has ever been such a sexy promotion for a car. Again, I got emotionally involved. Had a wonderful sensation of 'mmmmm'.

So with two ads, back to back, Cadillac stood out with great writing, great delivery and great emotional impact. So the Cadillac CTS is the only vehicle currently being marketed that means anything to me (and I drive a Ford Focus).

In the past, Jeep was able to get my attention with their hilarious 'Rock me Gently' ad. I enjoyed it so much, I didn't even realize until just this minute that it was a 60 second ad, not a 30. While it probably doesn't speak to everyone, it engages a certain audience in a memorable way.

And finally, the whole series of swamp ads from KIA for their Sportage are memorable and entertaining. Particularly their lastest Goth version. If a vehicle can deliver this much fun, it needs to be in everyone's life.

So there - three out of hundreds of cars and trucks over the years. Buying a car is a big decision. It costs a good portion of most people's annual income. If you can't find the unique selling proposition and demonstrate in an engaging and informative advertising campaign, why bother selling it at all?

The Cadillac ads are a great example of how we've become more about "what's in it for me" than about features and benefits. We are emotional buyers.

Now for the benefit of the marketing firms who put together the majority of boring, repetitive, indistinguishable advertising for the automotive industry, I will say we have no idea what the creative brief looked like, how creative you tried to be and how often the auto execs kyboshed your ideas. In my experience, executives are executives because they know how to organize and manage people, not because they are creative or willing to step out of the safety of "everyone else does it this way". In most companies, you never get to be an executive if you are creative and willing to be different.

Being different takes guts. Entrepreneurs with guts are the ones that grow their business. Business people who are afraid to be different than their peers, find themselves lost in the shuffle. That's a good message for small business, but on topic today is how this insistence on continuously developing 'typical' advertising is one of the reasons auto sales just aren't what they used to be.

In a recent press release, I wrote about how the auto makers and their behemoth structure keep them from giving their customers what they want and need. This is definitely true where their marketing is concerned.

Make sure as small business owners you don't fall into the same trap. Understand your unique selling proposition and if you can't figure out what it is, then either speak to your customers to learn what they think, or for heaven's sake, just give up and walk away. There was, at some point, something unique about your business. Remember what it was and market that in an equally unique way.

Perhaps the automakers need to figure out what was unique about each of their models and if they can't remember, stop making them.

Friday, December 12, 2008

Recession survival - Knee-jerk marketing the woe of small business

How many times have you been contacted by a media or marketing sales representative who has a great song and dance about why they are the best place to put your marketing? And how many times have you bought what they're selling, even when it was never a part of your marketing plan?

Of course, that makes the assumption that you have a well thought out marketing plan based on your actual audience definition.

Most small businesses are led by people who are great at what their small business delivers, whether product or service. But being good at one thing doesn't make you good at everything. As a result, there are folks with no marketing training or experience developing plans or, most likely, making knee-jerk decisions based on the last sales rep who walked through the door.

In recessionary times (and I'm pretty sure everyone now admits that we're in a serious recession), it becomes more important than ever to develop a thorough marketing plan and then stick to it. Recession marketing requires a brave business owner who understands that cutting the marketing budget also means cutting off the conversation with the customer.

The value of the marketing plan versus knee-jerk spending is two-fold. Firstly, having a plan allows you to know what your expenses are every month so you can plan ahead. Secondly, it forces you to really think about who your audience is and how to reach them efficiently.

To start your marketing plan, you need to know all about your audience. And not just their age, education and income level. You need to learn about their hobbies, families and occupations. These additional pieces of information help you reach them in their 'special' places, and in most cases, more economically than in mass media.

After you really, really, really know who your audience is, you can move on to doing the research about what is available for reaching them.

Example: Moms with school-age children are trapped in the family vehicle for a number of hours, trotting children to extracurricular activities, doing the family shopping, etc. Reaching them could be as easy as buying your local radio station that runs bus cancellations and amateur sporting reports. Add the radio to a sponsorship of a local amateur sports team and a partnership with the local grocery store and you have a great package to reach this audience part.

Recessions require that if you are going to purchase a marketing tactic, you have to purchase it correctly. Planning helps with this. If you don't have enough budget to do it right in January, save January's budget and combine it with February's so you can achieve your goals. You are better off getting great results from a combined budget tactic than no results from a poorly delivered one.

And above all, know what your strengths are as a business owner and focus on those during recession. If you aren't a marketing expert, find someone who is. Even if your marketing expert costs you a few dollars, the increased results will make it worthwhile. (But for heaven's sake, make sure your marketing expert is actually a marketing expert not an ex-media sales rep or just someone who purchased a desk-top publishing program. Marketing is about a lot more than just being able to produce a flyer!)

Friday, November 21, 2008

Smart recession survival

Small business owners can see recession two ways. One where they sit in fear and one where they take advantage and stay ahead of the pack.

I suppose it's a natural survival tactic to hold everything close, keep it safe - particularly your money. But if you let fear govern your business decisions, you simply may not survive.

Recessionary times are when the smart survive and the unique get noticed.

Smart companies recognize marketing as a revenue generator, not a cost centre. They don't immediately cut their marketing budget. They get smarter about how the money is used. Mass communication is replaced with targeted communication. Interaction with the customer is increased so they stay front-of-mind.

Unless you are in a luxury market, your customers still need or want your products. Make sure your products and services are priced to reflect market tolerance. Surviving recession isn't about lining your pockets, it's about survival.

Get creative about how you reach your customers. Surprise them with where they find you and what you are telling them. Small business messages have historically been very ego-centric. You have to become customer-centric to make it through tough times (actually you should be customer-centric all the time, but it's even more important now). Standard tactics won't be enough.

And tighten up your marketing spend. That doesn't mean cut the budget, it means eliminate the chaff and be efficient with the money you have. If a tactic isn't bringing a return, then change the tactic. But remember when you are measuring the success of your tactics that it isn't just about the immediate return. It's about developing a relationship with your customer. If you're getting inquiries or website hits but no actual buying, then your tactic has done its job. Marketing's purpose is to bring customers to you, it is the job of the sales team to actually make the sale.

The best weapon you have in recession is a good data base of your customers. This will help you deliver personalized attention at the marketing level. You can gather a good data base through a contest with a small survey as part of the entry form. The contest creates traffic, either to your website or your place of business, and while your customers have a chance to win so do you with the information you gather. Variable data printing isn't only for big companies these days. It's affordable to businesses of all sizes.

Develop a referral program. This is common place in the financial services industry but is functional for all types of business. Your best advertising is word-of-mouth (whether it's traditional word-of-mouth or through social media) and if you can get your customers talking, you're a step ahead. And if your referral program is strong enough, they'll definitely start talking.

Above all, don't try to manage your marketing on your own. You're in the business you're in because that's what you are good at. Don't try to be good at everything - no one can manage that. Call in the specialists to really get your marketing budget working for you. But make sure they are trained and experienced. Just owning some desktop publishing software doesn't make someone a marketing specialist.

Small businesses can be agile. That's a great advantage over big business. Be ready to change at a moment's notice - whether it's your product list, your audience base or marketing tactics.

Sunday, October 26, 2008

Recession means get smarter

The economic news throughout the world has recently become a big threat to small business. Lending has tightened, customers are holding their funds close to their chest. For many businesses, the next order of business is to cut costs. AIC, a mutual fund company cut their staff by 20% this week. In the article it is mentioned that this isn't as big a deal as it appears because most of the staff cuts were to IT and marketing.

And there's the rub. So often, the first that gets cut in a recession is the marketing team and the marketing budget. And without either of these, how do you get your message out?

Recessionary times are about being smarter with your money. Quite frankly, in my book being smart all the time makes the most sense but so many business people and even in-house marketing teams take the money for granted in the good times.

So how do you use your money wisely?

First, get to really know your audience. Mass marketing isn't economical if you sell a niche product or your audience represents a specific market. Find ways to fine-tune your delivery mechanisms. Stop talking to the people who will never be your customer. To use an example from last week's blog, if you are selling something that costs $30,000 stop talking to neighbourhoods with high unemployment or low incomes. You may have to get out of your office and actually sell your message in person.

Second, stop buying message delivery systems just because they seem inexpensive. If you spend $125 to reach no one who responds it is actually more expensive than spending $250 to reach those who will. Of course, you can only spend what you can afford, but if you resist the urge to spend that $125 that seems so inexpensive you can add that to next month's budget and actually reach people who care.

Third, and while I've come to hate this expression, think outside of the box. Be creative in how you reach your audience and how you spend your money. For some US readers, this could mean thinking about getting a Canadian marketing team to craft your messages. The difference between the Canadian and US dollar right now means you get more for your money. But it doesn't mean to resort to your nephew to do your creative development just because he happens to have a design program on his computer.

The companies that stay in the customers' minds during a recession are the ones who survive and grow more quickly after the recession ends. Which it will. It always does.

Sunday, October 19, 2008

Relevant messaging - what if your customer doesn't care?

The Canadian election on October 14th had the lowest voter turnout in Canadian election history. And yet, for many of the people who voted, it was considered the most important election in their lifetime. What went wrong?

Apparently the majority of the population just didn't care. (I am a firm believer that if you don't vote, you don't get an opinion about the state of the government later on.) They were getting mixed messages from the media, backtracking from the politicians, irritating telemarketers and door-knocking canvassers.

There was too much negative commentary from the parties as well. And here's a very important point for small business that would have put a different tone on the election. Spend your time and your money telling me what is good and unique about you; don't spend my time just yapping about the things that are wrong with the competition. Yes, yes, each of the parties purchased advertising in which they spouted their positive attributes, but we all know that media coverage gets more attention and belief than any paid advertising. In the end, all the political leaders looked lame and some even looked childish.

I had a conversation right before the election with my local MP. We had a great chat about how the Conservatives are their own worst enemy when it comes to messaging. What they mean to say and what gets published in the media are often two very different things. And I can't help but think that if they actually had a marketer, instead of just a whole slew of public relations folks, their messages might be a little tighter. Sure they use a marketing firm to produce their lovely paid advertising, but where is the marketing guidance for the every day mess?

The complicated stories that were the underlying issues of the election were too complicated to resolve in speeches or one-minute ads. The environment, the economy and leadership abilities all require a consistent, understandable message - one that isn't up for media interpretation.

And small business needs that relevant, clear message as well. You can spend a lot of money uselessly if your messages aren't relevant to a person's life. You can help people care through education and exposure, but neither one of these things is an instant return. Are you selling a $30,000 item to an area with high unemployment and a fear of job loss? You might want to check in on the relevance of your messages.

Politicians are fun to watch because they have to educate, get exposure and convince people their "product" is the best, all in a short period of time. Jack Layton hasn't changed his "product" in years - so if it wasn't relevant to people before, why would it be relevant now? Elizabeth May personifies what everyone feared of the Green Party - fanatical extremist. That has a pretty limited relevance. Stephen Harper obviously had the most relevance for the voters - a calmness in the face of economic explosion, a leader who admits mistakes rather than blaming others. He has his flaws but he came closest to being relevant to Canadians. And Stephane Dion? Well, poor Mr. Dion just didn't have a clue. And all the Liberals are equally to blame. They voted him into the leadership position and supported the Green Shift. Don't let any of them convince you that Mr. Dion did that all by himself. Relevance, gentleman ( and lady). If you want voters out, you better find out what is relevant to your customers. And that's us. Every single person in Canada is your customer.

Saturday, October 4, 2008

Part II - Be careful how you say hello

Last week, I took a look at the dangers to your brand that a badly handled dismissal or layoff can create. This week, I'd like to spend a moment with how ignoring the importance of your brand when hiring new staff can have long term effects.

The brand outline is rarely one of the things that is contained in the welcome package for an employee (and some companies don't even have a welcome package and, okay, they don't have a brand outline either). New staff learn about the human resources policies, benefits packages and history of the company. But there is an absence of indoctrination into the brand and the importance of upholding it.

Lots of senior management believe that upholding the brand is the duty of the marketing department but in reality it's the responsibility of everyone who works at the company.

Basic brand ideas, such as the appropriate font for emails, can be shared with new staff easily. I've lost count of the number of emails I have received from customer service staff using wonky fonts. And the language in emails needs a certain tone depending on your business and your brand. There's a big difference in how the staff talks and writes at Virgin Mobile compared to a stuffy insurance company.

And then there's the evil creature - the PowerPoint presentation. When staff outside the marketing department are called on to do a presentation, their imaginations run wild. Colours, images and language that have nothing to do with the brand creep in; no one stops them because, as I mentioned, there is a belief that brand protection is the job of the marketing department. Heaven forbid one of these presentations gets out of the building and in front of the customer. Any strong brand presence is whittled away.

Your staff needs to be engaged with the brand and have enough knowledge of what it represents to uphold it. This includes not just the visual and verbal entities mentioned above, but the philosophy of the brand as well. Companies who have brand support throughout their staff are strong companies. And they're believable companies because their message never falters.