For amusement and insight, the stranger bye-ways of history often give some interesting perspective on our present. In the 17th century, Tulip mania or tulipomania was a period in which contract prices for bulbs of the recently introduced tulips reached extraordinarily high levels and then suddenly collapsed. At the peak of tulip mania in February 1637, tulip contracts sold for more than 10 times the annual income of a skilled craftsman. At one point 12 acres of farm land were exchanged for one tulip bulb. Continue reading “tulipmania and the madness of marketing”
Ten Marketing F-Words that shape the modern marketer.
1 – Functionality – everything needs to perform brilliantly all the time
2 – Form – and everything needs to be designed to look as well as it performs
3 – Friends – partners & allies unlock unique competitive advantages that are difficult or impossible to replace
4 – Focus – good things happen when you narrow the focus
5 – Free – if you give generously, you will win trust, loyalty and interest.
6 – Fast & First – fast plans, products & services = first in the customers mind & wallet
7 – Fantastic – surprise customers with amazing service
8 – Feel – Some love, passion & urgency needs to accompany the numeracy and logic
9 – Flexibility – In uncertain times, plans need to adapt quickly
10 – The Facebook Generation …
New look blog and I’m linking a few things.
Gordon Ramsey got it right – he built a great brand by using F-Words. Do you remember the P words? It was business as the centre, eminating out in a controlling, systematic arc of influence. Then – in a world where the only thing in short supply was human attention – the C-words took over. It was all about the Concept, Channel, Costs, Communication, Care, Change Management. And now – I find my little F-key on the laptop is getting a lot of use. Today, it is all about the Focus (product and brand) being Fast (service), being First (to market) being Fashionable (design), having Friends (business partners) and above all having Function, (product differentiation). And as Hamel points out, it will be the Facebook-generation that will shape the next ten years. There is nothing mystical about the choice of letter of course – but this change of argot does reflect the change in what keeps us on our toes (or keeps us awake at night, it its one of those weeks). The original marketing reflected a militaristic risk, plan – command and control mentality. The nineties saw the rise of the seventies and eighties kids, with a softer approach, and the concern about the tricky human and non-mechanical parts in the marketing system. And now – we’re in an era which combines the two. Not only must you have a cracking product thats better and out before your competition – but you have to understand the ephemeral position of a consumer, who is not only increasingly difficult to communicate to (media fragmentation) – but is now capable of changing brands, products and services more easily than ever before and then telling all their pals about it within a few seconds. There is one last great F-word of course, that may sum up the increasing position of the poor marketer. Frazzled. What were you thinking of?
Why do marketers love marketing communications more than their product and user experience? True, as somebody who spent nearly seven years in agencies – I love a good promotion me. Logo development, advertising, sponsorship. Fantastic. But – despite functionality now being the king of the marketing block, many I come across still care more about the image and the looks, and not so much about what is increasingly driving on-line and off-line consumer behaviour. Ever seen a Blackberry ad? I cannot recall one. I use it everyday but could not even tell you the logo. What it does have and what resonates is that it is solid, reliable, easy and very very rarely does it let me down. That’s the brand in my mind. The word association in my ladder for handhelds. How many milions do mobile companies spend on branding when it is quite clear NOBODY is loyal to any of your brands. Building a better product or making a better service is not quite as much fun as working with the agency. But in the digital world functionality (an F-word) is king.
1 – First; Know Thyself. ( Or, Tell Me What You Want, What You Really, Really Want?)
2 – Know Who You Want:
3 – Operate On First Date Principles:
4 – Seek First To Understand – Then Seek To Be Understood:
5 – Narrow The Focus (Seek Clarity)
6 – It It Isn’t Written Down – It Does Not Mean Anything
7 – Momentum Is King
8 – You Cannot Manage What You Cannot Measure
9 – Build Peer To Peer Relationships
10 – Copy And Paste
1 – FIRSTLY, KNOW THYSELF.
At the temple of Adephi, the simple wise words written upon the wall are ‘Know Thyself’. It is the hardest thing to do. Before embarking on any activity and especially involving a third party – it is vital to Know Thyself (from a business perspective) and appreciate how the idea or programe fits within the bigger plan. And as the Spice Girls so wisely put it; ‘tell me what you really, what you really, really want’. Is it all about cash? Or is it about product development? Your profile or exposure? What is the cost of failure? What happens if you do not secure the partnership? Can you afford to walk away? In negotiation terms – what is your ‘BATNA’ (the Best Alternative To Negotiating Agreement).
2 – KNOW WHO YOU WANT
Marry in haste, repent at leisure as my mother would tell me. Or, as the Duke of Wellington put it; ‘time often spent on reconnaissance is seldom wasted’. With modern communications and trade media it is now easier than ever to find out more about a prospective partner way before you even pick up the phone. You may even change your mind and start the prospecting again. Apart form being a practical marketing step, it is also pure good manners to find out about a business before you drink their coffee.
3 – OPERATE ON FIRST DATE PRINCIPLES:
A relationship is a linear and iterative process, that moves by causation from step to step, with each stage requiring completion before further movement can be made. This is so simple and evidently true in life, love, and business – yet it is often so little understood and instead people trample into sensitive new commercial relationships like a herd of greedy elephants. The easiest way to take a girl out on a fabulous and ambitious second date ( I have two tickets to a Take That concert t the O2… and I can take you for dinner at Gordon Ramsey’s beforehand) – is to start of with a simple and successful date first ( do you fancy pizza and an afteroon movie). Ries and Trout put it well in their classic 22 laws of marketing; you willachive more by firstly aiming for simple objectives. Aim for simple first dates, and you will seldom be disapointed. A simple first date allows you to test the other party. Did they turn up? Could they pay for things? Was the first experience poor, OK or brilliant? How likely is it that you could work together on something more elaborate?
4 – SEEK FIRST TO UNDERSTAND – THEN SEEK TO BE UNDERSTOOD
What is the organisational cultural fit like? Do the respective people have chemistry? Could you imagine working with them? What are they seeking from you. Money? Customers? Your Brand? Distribution?
5 – NARROW THE FOCUS: SEEK CLARITY:
Good things really do happen when you narrow the focus. Get the kitchen cleaned tonight. Book the holiday tomorrow. Decide on what you want from a business partnership. The strongest question you can ask any marketer, is ‘what does it look like?’ The better the thinking the greater the clarity of business mechanics. I am amazed at how bright, articulate managers are unable to explain in simple terms what they expect from a third party relationship. Often, it is a jumble of various aims, from money to traffic, from brand fit to customer retention. In addition, if you want to take the lead in a relationship – then take the initiative and present an idea. People who still adopt the ‘let them make the first move’ school of negotiation are as out dated as Don Johnson’s pastel trousers. Be clear, be assertive, refect your understanding of their business and show them how you want to work with them.
6 – IT IT ISN’T WRITTEN DOWN – IT DOESN’T MEAN ANYTHING:
Human beings are superb are only hearing what they want to hear and the only way to ensure there is ‘consensus ad idem’ ( a meeting of the minds) – is to start documenting things early and avoid misunderstandings. In the majority of cases, additional stakeholders and people not in meetings will need to understand the relationship so you need your documentation to work hard for you. There is nothing worse then that dreaded moment when both parties realise after 4 rounds of undocumented meetings that they are holding two different sticks, let alone the wrong end of the same one.
7 – MOMENTUM IS KING:
If you have gone through the above steps and you are clear on the path ahead – then agressive and systematic progress is vital to avoid scope creep, personal lethargy and what I crudely would refer to as marketing constipation. A vital lesson I learnt from Boise (print management) is to have small seed budgets avaiable to quickly remove initial relationship obstacles and irritiations. By showing you can quickly alleviate minor issues (from arranging meeting venues to quickly paying for some concept designs) – you immediately show your honest and enthusiasic corporate intention and personal commitment. Quite simply, positive momentum builds trust and trust builds positive relationships.
8 – YOU CANNOT MANAGE WHAT YOU CANNOT MEASURE
Both parties need to agree how they will measure success. Often, each party will have different needs. A simple rule is to only use three core KPI’s and if a report is not missed, then it is not really worth doing. But what else is important to measure success by? What are the ‘soft’ parts of a relationship that are also valuable and make all the difference in terms of long term opportunity? A massive sale, with awful administration, PR, service and costs – is not good business, but may look good to the account manager. Good communication, informal and formal is vital to understand not just the facts and figures, but what is responible for them.
9 – PEER TO PEER RELATIONSHIPS
Initiatives are created by individuals but often require teams of people to proactivley deliver. The classic model is for ‘zip’ – or zig zag relationships between organisations to ensure that logistical points, practical elements and day to day progress is managed quickly and does not funnel upwards or downwards creating delays. It is important to make sure this matching up process is done. As the relationship develops, different layers need to be introduced in a ‘presidential’ capacity to ensure cohesion and endorsement. They will not need to be involved but they do need to be informed.
10 – COPY AND PASTE
I once asked a former boss and multi-millioniare entrepreneur, what the secret of marketing success was – and what was her biggest learning she had obtained from building two highly profitable businesses. Rather than complex financial metrics or business jargon, she surprised me by responding – ‘Copy And Paste’. If you have discovered a great recipe for past success, then do not go mad starting completely from scratch next time you have a similar problem or opportunity. Her belief was that most marketers were ‘ego-driven’ – and had an inate desire for showing ‘creativity’, being innovative and challening the new,- rather than in fact, solve the problem based on past knowledge. In terms of business relationships, whilst the tactical implemention and styles may need to shift and change – the general approach and process for any good initiative can be copied and pasted from another.
A business relationship only becomes a partnership when it is truly dynamic – it is a two way process, is always moving forwards, and has a plan for shared development. Most importantly, it is not driven by only looking in the rear view mirror. Looking back is useful, safe and wise but it cannot help you know where you are going. A partnership is a mutual exchange of ideas, value and thinking. Alternative business models are transactional and static. There is nothing wrong with this – most media buys are classic transactional deals. In addition, the best parterships are joint and equitable investments in time, money, resources and knowledge and often require developing solutions and activities that are outside of Business As Usual. Partnerships are more often than not, Business As Unusual. A joint understanding of what the other party needs and a shared vision of where the relationship is going is the hardest thing to know and appreciate. It needs to mix commercial insight with personal communication and ‘active listening’ – to get under the skin of the other party. As Tom Peters points out, understanding what you get out of a relationship is really pretty easy, anyone can tell you what has happened in the past. The hard part (and it is the job of partnership and business development managers to do this) – is to understand the future. What the other party is getting from the deal, how they value it, where they are heading – and can the two organisations share that journey? If you know the partner is vital to you (expensive or diffitcult to replace etc) – you’d be wise to understand them. To do this requires decent analysis and plenty of empathy. It requires executives to be the eyes and ears inside the partner’s business – whilst also being the fair advocate for the partner, inside theirs. Only then can the two organisations build a shared vision of where they are going together. Is it a weekend break in Brighton or a major journey across Brazil? As a wise philosopher once said, how can I have a conversation with you, if we cannot even define our terms.
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