September 4, 2014

The two basic functions of business

Filed under: Marketing Quick-Tip — admin @ 3:03 pm

 
“Business has two basic functions: Innovation and Marketing.
These produce results. All the rest are costs.”
                                                                                – Peter Drucker 
About Peter Drucker

Peter F. Drucker — writer, management consultant and university professor — was born in Vienna, Austria in November 1909 and died in November of 2005.

He published his first book, The End of Economic Man, in 1939. He then joined the faculty of New York University’s Graduate Business School as Professor of Management in 1950. Since 1971, he has been Clarke Professor of Social Science and Management at the Claremont Graduate University in Claremont, California. The university named its management school after him in 1987.

Drucker has written 35 books in all: 15 books deal with management, including the landmark books The Practice of Management and The Effective Executive; 16 cover society, economics, and politics; 2 are novels; and 1 is a collection of autobiographical essays. His most recent book, Managing in the Next Society, was published in fall 2002.

He was a regular columnist for The Wall Street Journal from 1975 to 1995 and has contributed essays and articles to numerous publications, including the Harvard Business Review, The Atlantic Monthly, and The Economist. Throughout his career, he has consulted with dozens of organizations – from the world’s largest corporations to entrepreneurial startups and various government and nonprofit agencies.

Experts in the worlds of business and academia regard Peter Drucker as the founding father of the study of management.

For his accomplishments, Peter Drucker was awarded the Presidential Medal of Freedom by President George W. Bush on July 9, 2002.

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August 26, 2014

10 Fatal Flaws in Marketing

Filed under: Marketing Quick-Tip — admin @ 10:31 am

 

 

 

10 Fatal Flaws in Marketing  

 

1.   Thinking that being best ensures success

  • How this can work against you.
  • How this can work for you.

2.   Disregarding the power of the “Three-Foot Rule”

  • Spread the word at every opportunity.

 3.   Failing to stake-out your unique position

  • Focus your marketing on what your competitors can’t say.
  • 4.   Portraying features as benefits
  • Convey “what’s in it” for the customer.

5.    Thinking that a lot of brilliance compensates for a lack of reliability

  • People aren’t easily dazzled, but need to know they can count on you in a pinch.

6.   Being too “wordy”

  • “If you can’t put your idea on the back of a business card, it’s not a clear idea.”     — David Belasco
  • The confused mind says “No!”
  • Read: Why Business People Speak Like Idiots — Fugere

7.   Choosing style over substance

  • Who have you served?
  • What have people said about you?
  • How long have you done it?
  • Success stories
  • What can you do for someone like me?

     8.   Ignoring Drucker’s Law   

  • “Business has two basic functions: Marketing and innovation.

These produce results. All the rest are costs.”  — Peter Drucker

     9.   Letting prospects and customers/clients forget you

  • Maintain visibility.
  • Keep selling the “sold.”

10.   Buck Fever

  • You’ve got to pull the trigger, to hit the target.
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August 19, 2014

Where there’s a Will . . .

Filed under: Marketing Quick-Tip — admin @ 4:12 pm

Had he not decided to “go straight,” Will Rogers would have made a good advertising copy writer. He had a way with a phrase, and was a pretty good country philosopher, too. Here are a few examples:

Some of his sage advice:

1.     Never slap a man who’s chewing tobacco.
2.     Never kick a cow chip on a hot day.
3.     There are two theories to arguing with a woman. Neither works.
4.     Never miss a good chance to shut up.
5.     Always drink upstream from the herd.
6.     If you find yourself in a hole, stop digging.
7.     The quickest way to double your money is to fold it and put it back into your pocket.
8.     There are three kinds of men:
• The ones that learn by reading.
• The few who learn by observation.
• The rest of them have to pee on the electric fence and find out for themselves.
9.     Good judgment comes from experience, and a lot of that comes from bad judgment.
10.     If you’re riding’ ahead of the herd, take a look back every now and then to make sure it’s still there.
11.     Lettin’ the cat outta the bag is a whole lot easier’n puttin’ it back.
12.     After eatingan entire bull, a mountain lion felt so good he started roaring.
• He kept it up until a hunter came along and shot him.
• The moral: When you’re full of bull, keep your mouth shut.

ABOUT GROWING OLDER…

First ~ Eventually you will reach a point when you stop lying about your age and start bragging about it.
Second ~ The older we get, the fewer things seem worth waiting in line for.
Third ~ Some people try to turn back their odometers. Not me; I want people to know ‘why’ I look this way. I’ve traveled a long way, and some of the roads weren’t paved.
Fourth ~ When you are dissatisfied and would like to go back to youth, think of Algebra.
Fifth ~ You know you are getting old when everything either dries up or leaks.
Sixth ~ I don’t know how I got over the hill without getting to the top.
Seventh ~ One of the many things no one tells you about aging is that it’s such a nice change from being young.
Eighth ~ One must wait until evening to see how splendid the day has been.
Ninth ~ Being young is beautiful, but being old is comfortable.
Tenth ~ Long ago, when men cursed and beat the ground with sticks, it was called witchcraft.
Today it’s called golf.
And, finally ~ If you don’t learn to laugh at trouble, you won’t have anything to laugh at when you’re old.

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August 11, 2014

Two reasons to stay in touch:

Filed under: Marketing Quick-Tip — admin @ 4:14 pm

Here are the two key reasons for staying in touch on a regular basis through marketing communication:

If people don’t know you exist, they can’t do business with you.
If they don’t remember you at decision time, they won’t do business
with you.

Is it time to update that contact list and let people know you are still here – and still care?

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July 22, 2014

The power of timing

Filed under: Marketing Quick-Tip — admin @ 12:26 pm

Life is a timed event. We have only a certain amount of time each day, week, month and year in which to accomplish our objectives. As my favorite college professor used to say, coming up with the right answer solves only half of the problem. The other half is to do so in a timely manner.

That familiar say, “Timing is everything,” while not totally correct is at least partially correct, and good timing is a very important item, at that. Timing can be pressure induced, but its more comfortable, and perhaps more effective, counterpart is good timing that results from good planning.

There simply is no substitute for a little self-analysis that results in timing things for maximum impact. So, while it is also the result of good instincts (thank God for those), it might be better to rely on good planning to produce the good timing from which your marketing will most profit.

Have you ever noticed how the NBA teams seem to kick it up a notch when the voice on the PA system announces, “Two minutes”? As business owners and managers, we don’t have that luxury. We have to come out of the staring blocks each day and run hard right from the starting gun in order to make our way through our weekly to-do list.

I advise our clients to set up a self-imposed marketing deadline system in order to produce and disseminate their marketing materials and make those vital selling contacts in a timely manner. This just makes good sense and, like the airport control tower, keeps the ”work-to-be-done” traffic moving. Otherwise, as I have found in my own case, it is easy to become so involved in your clients/customers’ needs that you forget the needs of your own business – needs like those key marketing projects and other self-promotion activities.

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July 15, 2014

The case for one-way communication

Filed under: Marketing Quick-Tip — admin @ 10:49 am

Here is the fundamental premise on which all marketing is based:

If the consumer isn’t aware that you exist, you can’t sell your product.

When encountering a prospect on the showroom floor or at a trade show, in every case, he or she was “delivered” to that critical point by an awareness of you; whether through an advertisement, a referral or, in the trade show circumstance, merely because you were there.

What takes place at that point is two-way communication (you standing face to face with the prospect, closing the sale). Though your degree of success will be determined by your persuasiveness, product, knowledge, price, etc., something that happened before that gave you the opportunity: a prospect had to be delivered.

In today’s highly competitive marketplace, real success is largely a numbers game. To survive, let alone be a leader in your category, you have to close many sales. In order to do so, you have to have ample numbers of prospects with which to work.

Here’s the key point: developing adequate numbers of prospects cannot be accomplished through two-way communication, either face to face, by phone, the mail or, even, the Internet. Neither you nor your sales staff has anywhere near the time necessary for this crucial function. Prominent publisher McGraw Hill & Co. has estimated that the average sales call requires approximately 45 minutes, and that an average of three calls is required to close a sale. Surely, it’s no way to prospect.

Prospecting is what marketing ¾ the one-way communication element of sales ¾ is ideally suited for. Expensive, time-consuming two-way communication simply isn’t necessary, nor is it efficient in developing prospects in the numbers sufficient for business success. Marketing communication, in one form or another, is the answer.

Most anti-marketing hard-liners got that way because they, at some point, were turned off by poor marketing efforts that failed to produce results. This is understandable, because much marketing is misguided or misplaced ¾ but it is not justifiable, and, more than likely, will be hazardous to bottom-line business health.

Is marketing foolproof? Will it always produce infallible, guaranteed results? No it won’t, nor is it fair to expect it to (after all, what does?). But it is more science than art, and, as such, has something very important on its side: LOGIC.  Marketing is measurable, quite often yielding predictable results, and as practiced by good professionals, should ¾ and most often does ¾ more than pay for itself.

 

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July 7, 2014

Building brand equity takes balls

Filed under: Marketing Quick-Tip — admin @ 5:25 pm

 There are three balls that need to constantly be juggled in order to at least maintain the value of a brand. These are:

a) customer acceptance

b)  a reasonable level of employee contentment, and

c) fiscal viability.

The first of these is, of course, product/service driven. The second, in addition to their getting a paycheck on a regular basis, has more to do with employees’ general job satisfaction, working conditions, self-image, etc. The third is required because relatively few people want to buy a “loser.”

If maintaining the brand is Business 101, then building equity in the brand requires, not only doing things right, but, doing the right things. Key among these tenets, and a fourth ball one must keep an eye on is business growth.

In other words, if your brand equity today equals “$$,” would the sale of your business net you a comfortable retirement or even an adequate down payment on that cottage in the woods or another business venture? . . . I was afraid that would be your answer! The remedy: build your equity to (at least) $$$$.

How to do this?

The late Peter Drucker, who during the whole of the 20th century was the foremost business management guru of them, all has put it this way:

           “Business has two basic functions: Innovation and Marketing.

           These produce results. All the rest are costs.”

It may not surprise you to learn that I agree with the renowned Mr. Drucker, whom I hasten to underscore was not a marketing person, but, rather, a management expert. Indeed, unless you are that notable exception (would you believe one in 100,000?) whose business grows sort of  “organically” at a rate (and of a quality) significant enough impact the bottom line, you can count on the fact that effective marketing will need to be your key engine in achieving growth.

When a sale of your business is a goal

If preparing an exit strategy and “cashing in your chips” have become more dominant factors in your thinking, it would make sense for you to start a dynamic marketing program with specific objectives and benchmarks, sooner rather than later. If your timeline is to put your business on the market within the next couple of years, it certainly is not too late to mount an aggressive marketing campaign aimed toward making the sale date a bigger pay day (keep in mind that the average business sale easily can take 12-18 months).

Such a campaign most likely will involve direct marketing (probably e-mail) and your online presence (attracting traffic to your website) because that’s where the action is these days. This should not be left to chance or random efforts, but, rather, should be based on an effective marketing plan featuring strategies to meet your objectives, and tactics through which to implement those strategies. And there should be an ongoing review of your exit plan so necessary adjustments can me made throughout the process.

Following these guidelines will help to ensure that the results of what may be the biggest sale you will ever make will meet or exceed your goals.

 

 

 

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June 24, 2014

Branding Campaign Pointers

Filed under: Marketing Quick-Tip — admin @ 10:44 am

In addition to income creation, the recognition — and strength — of your brand is a major factor in creating equity for your business and adding value in the event that its future sale may be an issue.

Branding campaigns help companies define and communicate the essence of their business by giving it a personality and more clearly conveying what a company is all about. The core concept behind a branding campaign is that if you put a positive message about your company in front of your target market for enough time, potential clients will think about you when it comes time to make a purchase.

Your brand is essentially a promise – a link between your name and what it stands for -to those you engage through your marketing campaign. It will help your patrons and consumers or potential clients/customers distinguish your product/service from others.

The following steps are a required starting point in making the kind of assessment that will help ensure success of your branding campaign:

  1. Know your strengths. What is your core competency? What does your company do better than anyone else? What is your niche? What is your competitive advantage? Why would a prospect choose your product/service over another company’s? What is the first thing that comes to mind when consumers think of your company?
  1. Know your customers/clients. Who is your target audience? Who are you trying to reach? What do they want? Why should they choose your product or service over your competitors? Where do they come from? What do your clients need? How can you better serve them? What may they need in the future?
  1. Determine how you can reach your customers/clients. Where are they? Do they read, shop online and attend events? How do they prefer to communicate? Will they complete surveys, respond to e-mails or open regular mail?
  1. Develop and implement a marketing plan. Once you know your strengths, who your customers are and how to reach them, putting together a marketing plan should be the next step in your brand-awareness campaign.

 

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June 18, 2014

Things to consider before entering new markets

Filed under: Marketing Quick-Tip — admin @ 10:13 am

Look before you leap into a new market (horizontal, vertical or geographic, that is).

There are several key considerations to look at when you are considering to expand your business into a new area. Here is a “Top 48″ list to help get you on the right track in your decision making process:
1.      Examine your motives (frivolous, fact–driven or ego–driven?)

2.      Do you trust your instincts?

3.      Consult family / partners / trusted friends / associates / advisors / skeptics / fans / unaffected “brains”

4.      Conduct a background / capabilities “self–exam”

5.      Measure existing vs. required financial and human resources

6.      How will expansion impact key personal and business relationships?

7.      Consider vendor relationships

8.      Go slowly: understand that smart growth takes time

9.      Utilize research, e.g. type of expansion, market–suitability, timing

10.      Economic and consumer conditions and trends

11.      Focus groups

12.      Case histories

13.      Will new skills, techniques and business methods be required?

14.      Seek expert counsel, e.g. accounting, legal, business, marketing

15.      The things that are hardest to change should be left for last

16.      Are you maintaining a consistent bottom–line profit and showing steady growth over the past few years?

17.      Evaluate your administrative systems and management team

18.      Staff reorganization

19.      Staff adaptation

20.      Avoiding the “Peter Principle”

21.      Selecting vendors, employees, partners, alliances

22.      Create a business plan

23.      Create a marketing plan

24.      Include a SWOT Analysis

25.      Entry– and long–term strategies

26.      Setting clear campaign objectives

27.      Goals and budgeting

28.      Assess advisability of product and price adjustments

29.      Consider new products for new markets

30.      Capitalization, e.g. staying power, investors, angels, joint ventures, venture capital

31.      Balance guts against apprehension

32.      Establish initial startup and ongoing progress benchmarks

33.      Make a “why I should” list

34.      Make a “why I shouldn’t” list

35.      Keep meticulous notes and records

36.      Developing qualified sales and marketing leads

37.      Target–consumer assessment

38.      Assess demand for your products or services

39.      In–house vs. outsourced sales/marketing team

40.      Assess your internal sales and marketing capabilities

41.      Traditional vs. unconventional marketing

42.      Cross–marketing

43.      Market research

44.      Creating product– or brand–awareness

45.      Creating “buzz”

46.      Competitive intelligence

47.      Interviewing prospects a) employees, b) customers

48.      Securing the long–term future of your enterprise

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June 10, 2014

The Up’s and Down’s of Elevator Speeches

Filed under: Marketing Quick-Tip — admin @ 10:21 am

You probably have an appropriate and effective response to the hypothetical, yet critical question, “Why should we give you our business?”  One of our clients who is skilled at delivering those daunting “elevator speeches” was nonetheless stumped when one of his was not clear to the listener. What more should he say, and quickly at that?

If this should happen to you, your “post-elevator-speech” response may be the last opportunity you will ever have to sell yourself, so it had better be to the point, and laced with relevant claims. Here’s a clue: Build your speech entirely around things unique to you and your business. The only things your prospect is interested in are those things distinguishing you from your competitors.

Vague generalities and meaningless claims are verboten. Be clear, specific and benefits-oriented, rather than features-oriented in your response. And never rely on emotion rather than facts.  If you can’t dazzle your questioner on the spot, at least try to entice them with something of substance in order to “buy” enough time to give more thought to their needs and concerns before giving a more comprehensive response at a future date.

The keys are brevity, clarity, pertinence, and, if more time is needed to develop a truly appropriate response, enough “enticement power” to facilitate a follow-up opportunity.

 

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