Posts Tagged ‘execution’

What’s Happening in Your Marketplace?

Tuesday, February 1st, 2011

Entrepreneurs just starting out, owners of growing small businesses, corporate marketing managers – business people in general – need a clear understanding of what’s happening in their marketplace:

– of what customers want, what’s frustrating them, and what makes them happy

– of what customers like and don’t like about you and about your competitors

– of the forces creating changes in the marketplace, and what will be their impact

Gaining objective, fact-based answers to questions like these – and using the resulting insights to drive better decisions – is Marketing Research, the key to making any business stronger and more successful.   

Whether your Marketing Research budget is large, small or hardly there at all, here’s what you need to know to get smarter about the market environment you’re operating in, and how to use that knowledge to guide your business to greater success.

Plan Your Project:  A little forethought will assure that your efforts are focused on the issues that really matter – that you get ‘the most bang for your marketing research buck’.

1. What big problem or opportunity are you facing?  What sort of information would help you face it better?

Not getting enough customers through your doors?  Want to attract more?

– What do potential customers know about me – and just how many potential customers are really out there?

– How do they learn about products and services like mine? 

– What do they really care about, and what really upsets them?  How do I measure up?

Wondering about introducing a new product or service?

– Why will customers care?  What’s bad and good about what they’re using today?

– How dissatisfied are they today?  Upset enough to spend real $$$ to change to your new offering?  How many would likely buy your new product, and for how much?

– How will your competitors react?

Worried about competitors eating your lunch?  

– What do customers like about you, about your competitors?  What have you done to make them mad?

– What do customers really think about your competitor’s latest ad campaign / new product / expansion?

2. Methodologies – What types of information will be most helpful in solving your problem?  What sorts of people are most likely to have the information, and what’s the most efficient way to get the answers you need?

Who has the info you need – not just your direct customers, but anyone else who influence their decisions and anyone who has a bearing on your success for failure.  Ex-customers or people who decided not to buy from you are often your very best source of ideas for improvement.

Different questions require different data, and different data implies different methodologies …

“Should I stock red, blue or green?”  A simple survey and simple statistics will tell you how many customers prefer which color – and what else they might like or dislike.

“How do all the players in a complex value chain interact to make or break a new product?”  Better have deep, searching conversations with a number of people who make decisions up and down the value chain.

“What’s the right price for my new product?”  Ask directly and you’re likely to hear numbers you don’t like, but some special techniques and analyses can get your very close to the truth.

3. How much is solid, comprehensive understanding worth?  How painful are the potential consequences of not knowing?  How much should you invest in getting it right?

What would it be worth – Dollars and Cents – to have 25% more customers?  What’s it worth to know the best way to attract them … and what ways would be ineffective?

How expensive and damaging – Dollars and Cents – would it be if your new product fizzles out after you introduce it? 

Execute Your Project:   The big question “Pay someone else or do it myself?” doesn’t have an easy answer.  A ‘hired gun’ consultant can bring special methodologies, they can usually get things done more quickly and efficiently, and they they’re less likely than you to look at the marketplace through those ‘rose colored glasses’.  But then, there’s that out-of-pocket price tag.

Engage a consultant when you don’t know the specialized techniques or just don’t have the time; when anonymity will help get unbiased answers and results; when your issues are complex and the stakes are high

– Carefully agree upon the scope of work before you begin.  Most problems with consultant projects result from a mismatched expectations that could have been avoided.

– To make sure the project stays on course, be actively engaged during the project – but think long and hard before you substantially change direction.

– Challenge your consultant to give you not just the facts, but interpretation and recommendations.

DIY works just fine when the questions and analyses are simple and straightforward; when the consequences of uncertainty are not so high; or when the value of enriching your relations with customers outweighs the potential value of the answers you gain.

– In person or on surveys, phrase your questions in neutral language – don’t subconsciously lead them to the answer you want to hear

– In your conversations, ask open-ended questions that invite discussion.  Practice ‘active listening’ and follow up questions.

– Keep surveys short and simple.  Test ahead of time to make sure customers won’t be confused.

Most consultants will be happy to talk through your options with you, without any fee or obligation.

Apply the results:  Any research is too expensive if you don’t put the results – even results you don’t like or didn’t expect – to good use.

Forty percent of your customers like ‘blue’ but only 20% like ‘green’?  Make sure that store shelves and your production run aren’t overloaded with ’green’.

Customers like to rely on sales reps for product info and recommendations?  Consider less consumer focused advertising and more support to retailers and distributors.

Customers mad because your deliveries are too slow, even though you met your 3-day promise?  If 3 days isn’t good enough, then you’d better figure out how to do it in 2 or 1, of kiss those customers good bye.

 

IV. Brand Building for Start-Ups

Wednesday, January 19th, 2011

Part IV of an extended exploration of nature and value of “Branding” and practical discussion of how to create, strengthen and extract greater value from your ‘Brand’

The foundation of successful branding – whether you’re a start-up entrepreneur or leader of a corporate marketing department – is a solid business strategy, solidly executed:

– An offering that promises to satisfy the needs and expectations of your customers

– An organization that consistently delivers the values and experiences you promise 

While branding plays an important role in business strategy, no fancy logo or advertising campaign can overcome the drag of a poorly conceived product, poorly presented. 

                                         —————-  //  —————

As a start-up, your hands are probably more than full juggling all the details of getting your business up and running.  Fortunately, getting those details right is the first step in building your successful brand.  There are 3 fundamental elements:  Defining your identity, communicating the performance and values you promise to deliver, and execution that fulfills your promise.

Define Your Identity

Your start-up’s first brand building requirement is to clearly define your identify – the character of the company you aspire to be and the nature of the markets you intend to serve.  For example:

– Want to be known as the luxury brand (and earn the right to charge luxury prices)?  Then everything you do – from the way your phone is answered, to your employees’ demeanor and dress, to the appearance of your store, website, signage and advertising, to the way you pay your suppliers – should whisper elegance and respectability.

– If you elect to be a bargain-basement supplier, your customers may tolerate bare-bones facilities and less than attentive staffing, but the bargain hunting customers who flock to you today can just as easily fly off to the new-discounter-in-town tomorrow.

-Aiming to serve mass-market tastes and sensibilities?  Better not plan to switch gears and become the next hot spot for the artistic and avant garde.

Pretty elementary stuff, I know, but a lack of clarity and focus around your identity and the purpose of your business – and the dilution of effort that results – is the Achilles’ Heel of too many start-ups.

Communicate Your Promise

As a start-up, your first imperative is to quickly establish your visibility, credibility and recognition in a noisy, crowded marketplace.  Communications is the start-up’s key branding task, and your goal:

Shape all your formal and informal communications to create a memorable image of the attractiveness of your product and company, and an enthusiasm within your potential customers to spend their $$$ with you.

                The array of communications vehicles available to you is both seductive and confusing:  internet presence and SEO, e-mail and social media, print and TV advertising, seminars and customer meetings, or host of other vehicles for getting your message before the public.  It’s tempting to jump in – and spend tons of money – before you have a well planned communications strategy.  Build yours around fact-based, objective answers to these priorities:

1.  The Audience:  Which groups of people are most likely to buy your product?  Why would a product like yours appeal to them?  Where are they most likely to learn about products like yours?  Who else might influence their decision to buy from you?

2.  The Content of Your Message:  What information (and what emotional appeals) would motivate people in your targeted market segments to try your products?  What do they need to know to find you and complete their purchase?

3.  The ‘Look-and-Feel’ of Your Message:  What will appeal to the sensibilities of the people you need to influence?  How can you create the proper image of your company and product?

4.  The Communications Media:  What mix of communications vehicles is most likely to capture the ‘eyeballs’ of the people you need to influence

Armed with this sort of insight, you’re in position to create a communication strategy that uniquely suits your company, your product and the markets your aim to serve, providing: 

1.  Education:   “Yes, I see what your product will do for me.”

                                “That’s something that would be really valuable to me.”

                                “Now I know where to get one.”

2.  Recognition:  “I remember hearing about your product.”

3.  Motivation:    “Oh, yes!  I want to go get one now.”

If your communications can elicit answers like these, you’re well on the way to success.       

                “More details, more specifics” you ask?  Well, I wish I could, but your business, your product, your customers, and the market environment you’re in are like no others.  A big part of the success of your branding effort will be your creativity and skill in crafting a message uniquely suited to your situation and goals.  Here are some thought-starters to point you down productive communications pathways …

An animated, slapstick TV commercial may be a fine way to sell beer to an audience of couch potato athletes, but it’s not likely to appeal to the well-healed retiree looking for discrete wealth management advice.

Selling a new synthetic lubricant for jet engines demands facts, figures and no-nonsense data, but an ethereal vision of fantasy and hope sells more cosmetics. 

Your grandmother probably won’t learn about new osteoporosis drugs on TWITTER, and it’s not likely that the high school video gamer will see your ad in the local newspaper.

Internet marketing is probably not the most effective way to enroll a high end life insurance prospect, but you can’t afford to rely on 1-on-1 customer visits to promote your fancy cupcakes.

Remember – Effective communications begins with a clear sense of the message you need to convey, molded by your understanding of the needs, preferences and expectations of your intended audience.               

Execute Your Promise

Respect for your brand comes from delivering performance and experiences that satisfy your customers.

Make sure that, from the beginning, your execution is right.  Delivering what you promise is the key to building a strong and valuable brand.

Customers, casual lookers and third party busy-bodies continually balance what they experience against what you promise.  A mis-match between what you promise and what you deliver can quickly become a brand killer. 

– You promise low prices but customers find you’re scooped by the discounter on the corner

– You promise excellent service, but phones and emails go unanswered

– You promise confident professionalism, but show up late for your appointments   

No amount of advertising or fancy logos can overcome the disappointment of a product that doesn’t work, missed delivery dates, unanswered telephone calls, or rude and unresponsive service people.  News of poor products and service spread far and fast, and repairing a bad reputation is no easier for your start-up than it is for a high school outcast.