Home on the Range
When you're one of a thousand cattle, your company's marketing can help you stand out from the herd
By John R. Graham -- Industrial Distribution, 10/1/2003
Why do some companies embrace marketing with commitment and enthusiasm, while others ignore it almost scornfully? Even firms with marketing departments can act as if marketing is a "soft" function, one that can be stripped away to a bare budget at a moment's notice.
One can sense, at times, that marketing is viewed as a crutch, and something of an affront to the Tarzan types who tend to eschew rifles on the hunt. Accepting assistance is seen as a sign of weakness or inadequacy. They think they must do it all themselves.
In effect, there's a feeling that relying on marketing is suggesting that the big, strong crowd is not up to doing the job, particularly when it comes to sales.
Is marketing a sign of weakness? No company is more concerned about sales than Dell Computers, a leading computer company. Yet, Dell makes marketing a top priority. In fact, Dell is omnipresent. Its online ads are everywhere on the web, as are its inserts. Dell catalogs fill mailboxes, and its newspaper and magazine ads are pervasive.
From no name to brand nameTake a look at Boca Burgers, a brand of veggie patties. Many who have taken a bite of a veggie burger have recoiled in horror. How would Boca meet the challenge of convincing the health-minded that its burger is different, and that it looks and tastes like a "real" burger?
The supermarket taste test was the answer. Tables were set up in supermarkets and customers were encouraged to try the product for themselves. They were handed discount coupons and directed to the Boca Burger display case.
A marketing executive took time out from his weekly grocery shopping to see how consumers responded to this particular Boca Burger promotion. Result: it was working.
There were non-believers, to be sure. Yet, the person passing out Boca Burgers was doing their job of creating customers and making sales.
For example, let's take the case of Kia and Hyundai, two South Korean car companies that seemingly transformed themselves from "hot potatoes" into "hot brands" almost overnight. Their strategy was simple. They invested in their brands.
The change from no sales to record sales was driven by marketing. How are they convincing doubting consumers that their products are vastly improved? Both companies came out with new, exciting, attractively priced, high-value vehicles protected by extraordinary 10-year, 100,000-mile warranties.
While other auto manufacturers can't kick start sales with ballooning incentives, Hyundai and Kia have consumers standing in line to buy their products. It's that marketing that drives their success.
Even with a longstanding track record, Hewlett-Packard has embraced marketing with a renewed passion following its acquisition of Compaq. The company is out to protect and strengthen its preeminent place in printers against attacks from Dell, now with its own printer line. H-P took out 10 full pages of full-color advertising in The Wall Street Journal and other newspapers.
These substantial investments don't occur because ad reps drop by to take marketing executives to lunch. All this is both deliberate and strategic. The goal is to sell products by protecting and building the brand.
"Half of the market value of the Fortune 250 is tied to intangible assets," states a McKinsey & Company report, referring as well to advertising money. "For some of the world's best known companies, the figure is even higher."
Look at me! Look at me!Marketing deals with the most basic of all business problems: how to stand out from the crowd.
As marketing associate Al Ries says, "A brand program should be designed to differentiate your cow from all the other cows on the range. Even if all the cattle on the range look alike."
The objective of marketing is for the customer to want your cow, car or computer. In a word, branding is about making customers.
Focus on what customers value. Many companies take enormous pride in "value-added," as if what they're offering should knock the customer's socks off. A sales manager says to a customer during lunch, "We bring lots of value."
The comment doesn't impress the customer. Because not once has the sales executive asked the customer what was important to him. The only value that's of any value is what's important to the customer.
Make a commitment to consistency. Companies seem to suffer from a form of "attention deficiency," particularly when it comes to marketing initiatives. Staying on course is often a serious problem because it's easy to be seduced into trying something new and different. It's difficult to stay on track.
Focus on attraction building. It has been pointed out that customers often follow a pattern. They see, hear or read something; if they are interested, they visit a web site. Depending on what they see, they may take the next step and make direct contact by email, mail or telephone, whatever is most convenient. In other words, an essential marketing task is one of attraction building.
But getting customers to take action is never easy, and it's getting more difficult by the day. Frustrated salespeople complain that it takes extraordinary patience to get a buying decision.
No one can be sure when a customer is ready to sign an order. This is why it's also essential to include a response mechanism with every communication. It can be a link in an e-mail bulletin, a fax back form with a letter, or several contact possibilities in an ad. Making action easy is critical.
It is better!The major issue, perhaps, is that companies often view marketing as an activity, rather than a function. To some, it's like a wellness program: it's nice to have around and makes everyone feel good, but it's not critical to the operation of the business.
But if that's the case, why are consumers willing to pay more for a Sony product or a Swiss Army knife? Because the marketing machine in these companies is in full swing. People recognize the brand.
Why do consumers pass by an array of less-expensive detergents and reach for Tide? The decision isn't based on objective data that Tide cleans clothes better than the others. It's because the company's marketing has the customers believing that Tide does a better job. That's the function and result of marketing.
| Author Information |
| John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. Author of four books on marketing and sales, including Break the Rules Selling, Graham writes marketing and sales columns for business and trade publications, and is a speaker at company and association meetings. He can be contacted at (617) 328-0069 or by email at j_graham@grahamcomm.com. |















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