Thursday, July 04, 2013
Design briefs - where it goes wrong
Here is an interesting video that has a message on the matter of briefing an agency.
Is your service support aligned to your marketing positioning?
For buyers of capital goods and other high ticket items purchased with a long time interval between replacements, your service team may be the customer's main contact with their business? Are they effective in maintaining awareness of your brand and building loyalty when the time for replacement comes round? Are the service team in the loop so they are aware of the 'keep in touch' marketing communications the customer should receive and do they portray the same brand values?
An interesting example this week was how Honda approached the annual service of my car. I was called on my mobile phone to remind me the first annual service was due and given the options of waiting while the vehicle was serviced, dropped off and collected later, or collected from home and returned at no cost. I opted for the free collection and return. As arranged a driver called to collect the car. He was clearly from the Honda dealer as his crisp white shirt had a discretely embroidered logo in red, he carried a clip board with the job details, cheerfully explained what was being done and off he went. A few hour later the service manager called, explained what service had been carried out, condition of of brakes, tyres and vehicle in general which would all be covered in a printed report. Your car is just being cleaned inside and out and will be back with you in 30 minutes. Twenty five minutes later it was parked in the same spot it had been collected from by the same driver who gave me the promised documents and that was it. Next day I received a call to ask if I was satisfied with the service - I was very impressed.
Unfortunately few other companies get anywhere near this level of service, they hide contact details on their web sites, are hard to contact at all, off shore call centres and oddly enough tend to be service suppliers like telecoms, energy or airlines. But the lemon of the week has to go to HMRC and their undisguised hostility towards their customers - but that is another story.
An interesting example this week was how Honda approached the annual service of my car. I was called on my mobile phone to remind me the first annual service was due and given the options of waiting while the vehicle was serviced, dropped off and collected later, or collected from home and returned at no cost. I opted for the free collection and return. As arranged a driver called to collect the car. He was clearly from the Honda dealer as his crisp white shirt had a discretely embroidered logo in red, he carried a clip board with the job details, cheerfully explained what was being done and off he went. A few hour later the service manager called, explained what service had been carried out, condition of of brakes, tyres and vehicle in general which would all be covered in a printed report. Your car is just being cleaned inside and out and will be back with you in 30 minutes. Twenty five minutes later it was parked in the same spot it had been collected from by the same driver who gave me the promised documents and that was it. Next day I received a call to ask if I was satisfied with the service - I was very impressed.
Unfortunately few other companies get anywhere near this level of service, they hide contact details on their web sites, are hard to contact at all, off shore call centres and oddly enough tend to be service suppliers like telecoms, energy or airlines. But the lemon of the week has to go to HMRC and their undisguised hostility towards their customers - but that is another story.
Tuesday, June 25, 2013
Thinking about the business model and micro businesses
Understanding the business model and the objectives set by a company's owners are essential to get marketing on target.
In my view, understanding the business model is very important because if this lacks clarity (in short figuring out how are they making money out of the business), the chances are their customers may not get it either and guess what you will discover they won't actually be making money. For example, back in the so called "dot com boom" or bubble in the late 1990s, investors were pouring funds into start up Internet businesses. They in turn were spending it - 'cash burn' was a phrase commonly used. Some of it went on paying programmers to write code day and night, some on expensive advertising campaigns and most just squandered. We had via an American contact been introduced to one such start up. The briefing meeting was taking place in the entrepreneur's apartment in London's Knightsbridge - probably rented with investors' cash. He was in a great rushing, hinting of dashing off any minute on a mission to Paris to buy yet another ailing dot com business to add to the portfolio. Meantime, a woman in a dressing gown mysteriously wandered in and out of the room. It seemed buying other fledgling and ailing Internet start ups had become their main activity since the injection of investor funds. All questions aimed at understanding what their real business was about was directed to the IPO prospectus which boasted some impressive business and political names as directors and also carried the financial equivalent of a health warning. In short the merchant bankers had failed to come up with anything tangible to explain the business model. A subsequent trawl of investor comments quickly revealed stock had nose dived and they felt tricked. As an advertising agency used to dealing with challenges it was apparent there was no business plan, no vision and worryingly no customers either. We declined the invitation to bid for their account. Shortly after the business had burnt the investors cash and went the way of many others.
Out of that era however emerged businesses that used the Internet not as a novelty to appeal to investors who unwisely thought it to be a cash generator, but as a means of reducing operating costs in running businesses founded on a sound business model. This trend appears to have accelerated since the credit crunch of 2008 as the unemployed started what are being termed "micro businesses". According to Management Today "In 1971 there were 820,000 firms with fewer than 9 employees in the UK. Now there are a record 4.8 million." It goes on to say "These small companies account for 32% of private sector employment (7.8 million) and 20% of private sector turnover." Of these 4.8 million, a massive 3.6 million are sole traders.
I am reminded of a business school lecturer who advocated what back in those early 1970's when most of us still worked for big corporations was then a very radical idea of not to employ any staff. As anyone who manages staff will know, once employee numbers reach about 9 oddly enough, they tend to take up all of your time. Something the entrepreneur is probably not trained to do, is any good at and anyway is a major distraction from converting his vision into profitable business. The statistics of micro businesses tend to bear this out. Interestingly in another article, Management Today says that some global Internet names are not that much bigger with Wikipedia employing 65, Pinterest under 50 and Reddit just 12. As the work place changes, so a more flexible and mobile work force is emerging allowing companies to utilise external specialists without employing them and the burden of related legislation and overheads that accompanies it.
Technical Marketing Ltd has been in the vanguard of this trend, with our own skill sets augmented by those of other specialists as required, working on the Internet without the overhead of expensive premises and regarded very much as part of the business team by our clients. By outsourcing marketing expertise these new expanding micro companies can grow turnover and profit without adding overhead of staff, buildings to house them and all the baggage of HR headaches they bring with them. You know it's worth thinking about.
In my view, understanding the business model is very important because if this lacks clarity (in short figuring out how are they making money out of the business), the chances are their customers may not get it either and guess what you will discover they won't actually be making money. For example, back in the so called "dot com boom" or bubble in the late 1990s, investors were pouring funds into start up Internet businesses. They in turn were spending it - 'cash burn' was a phrase commonly used. Some of it went on paying programmers to write code day and night, some on expensive advertising campaigns and most just squandered. We had via an American contact been introduced to one such start up. The briefing meeting was taking place in the entrepreneur's apartment in London's Knightsbridge - probably rented with investors' cash. He was in a great rushing, hinting of dashing off any minute on a mission to Paris to buy yet another ailing dot com business to add to the portfolio. Meantime, a woman in a dressing gown mysteriously wandered in and out of the room. It seemed buying other fledgling and ailing Internet start ups had become their main activity since the injection of investor funds. All questions aimed at understanding what their real business was about was directed to the IPO prospectus which boasted some impressive business and political names as directors and also carried the financial equivalent of a health warning. In short the merchant bankers had failed to come up with anything tangible to explain the business model. A subsequent trawl of investor comments quickly revealed stock had nose dived and they felt tricked. As an advertising agency used to dealing with challenges it was apparent there was no business plan, no vision and worryingly no customers either. We declined the invitation to bid for their account. Shortly after the business had burnt the investors cash and went the way of many others.
Out of that era however emerged businesses that used the Internet not as a novelty to appeal to investors who unwisely thought it to be a cash generator, but as a means of reducing operating costs in running businesses founded on a sound business model. This trend appears to have accelerated since the credit crunch of 2008 as the unemployed started what are being termed "micro businesses". According to Management Today "In 1971 there were 820,000 firms with fewer than 9 employees in the UK. Now there are a record 4.8 million." It goes on to say "These small companies account for 32% of private sector employment (7.8 million) and 20% of private sector turnover." Of these 4.8 million, a massive 3.6 million are sole traders.
I am reminded of a business school lecturer who advocated what back in those early 1970's when most of us still worked for big corporations was then a very radical idea of not to employ any staff. As anyone who manages staff will know, once employee numbers reach about 9 oddly enough, they tend to take up all of your time. Something the entrepreneur is probably not trained to do, is any good at and anyway is a major distraction from converting his vision into profitable business. The statistics of micro businesses tend to bear this out. Interestingly in another article, Management Today says that some global Internet names are not that much bigger with Wikipedia employing 65, Pinterest under 50 and Reddit just 12. As the work place changes, so a more flexible and mobile work force is emerging allowing companies to utilise external specialists without employing them and the burden of related legislation and overheads that accompanies it.
Technical Marketing Ltd has been in the vanguard of this trend, with our own skill sets augmented by those of other specialists as required, working on the Internet without the overhead of expensive premises and regarded very much as part of the business team by our clients. By outsourcing marketing expertise these new expanding micro companies can grow turnover and profit without adding overhead of staff, buildings to house them and all the baggage of HR headaches they bring with them. You know it's worth thinking about.
Thursday, June 20, 2013
Does the company blog replace the press release?
Although company blogs have become a news channel in their own right, they are not a substitute for a press release.Press releases are written for the press, providing the basic information about a company news announcement for journalists to develop into a story, written in a style that will be of interest to the readership of the publication. The reality is that few company pronouncements are actually that newsworthy to prompt a journalist, or in the case of many trade journals, the editor, to call up and get more information. Some editors in the industrial sector now seem to edit more than one title and the only other staffers are not journalists, but advertising salesmen selling traditional display and classified space, but also editorial space. Not all publications do this, the better quality titles keep editorial decisions away from advertising influence. What tends to happen is that the press release, if the word count is within the required range, may be re-titled, or edited for length, but otherwise published as received.
Before blogs came the news aggregator web sites that unlike the print based titles who published perhaps as little as 1 in 20 press releases received, published everything. Some industry specific news aggregators may take a swift editorial review to tidy up copy, but some others are happy to publish news just as it comes in. The news aggregating sites were of interest to companies on several counts. Not only was their investment in PR rewarded by publication rather than rejection into the editorial trash can, but the sites did well on search results and links helped company web site ranking and to attract visitors. In short they had SEO value. The company blog was the next step, with the PR content published there too. But all this may actually now be working against high rankings as this recent article explains, "Why your press releases are getting you penalised." As more and more company web sites have turned to standard development packages and CMS -- the wide landscape rotating image set at the top being a common distinguishing feature - there is often a "news" module in the kit. This is more of a blog module than a press resource, which in turn raises the question of what resources is the press looking for?
Research conducted some 10 years or more ago indicated even then 90% of journalists researching a company turn first of all to the company web site to discover what the business says about itself. A background document that explains the company's business, introduces the important company officers, gives financials, brief history and key performance data, helps set the scene and save journalists a lot of time. What else might they expect to find there? Well current press releases with downloadable and captioned high resolution images and contact details for the press officer or PR agency. Perhaps too, searchable news archives to quickly find reference to related stories that help build up the full picture and how about an image library with hi-res and web ready images. For the company press officer other features would be great, such as automatic creation of an html press release ready to email out, news feeds such as RSS and news tickers that can be put on the home page, or other web sites and linking to the full story. The Virtual News Office offers all these features as a service to busy marketing and PR professionals - it does a lot more than a blog!
Thursday, June 13, 2013
Is digital publication the only future?
A rallying call for print and falling stock price for Facebook hints that the digital only future has not yet arrived.Despite advocates regularly predicting the demise of print in an all digital world, with a few centuries of experience print has established some well entrenched business models. Readers understand the concept of buying a publication and value the content. Publishers control the process including the quality of the final product and marketing issues such as 'cover appeal'. Digital meanwhile dabbles with a number of business models delivered through a medium where there is an expectation that content is free. Just as confusing is the platform on which content will be read. Is it on a desk top computer, a smart phone or tablet? And even which way round will it be read - vertical or landscape. Some publishers have merely set up the publication for print and brought it to the screen using page turning software. Others have made greater use of the digital medium such as incorporating video, but still produce using software tools designed primarily for print. Few yet have abandoned the set constraints of a magazine size and layout and designed only as a digital publication.
So where does all this leave the marketing manager with regard to advertising and which media, format and platform to use? Talking to an advertisement manager of a technical publication earlier this week there was news of larger companies actually booking larger campaigns in the printed media. At the same time print industry journal PrintWeek reports that Barry Hibbert boss of mega print firm Polestar, issued a rallying call to customers to invest in "the golden nugget of printing". Interestingly Polestar back this up with sales growth, investment in new print plant and success in securing long term print contracts.
Meanwhile over at Facebook falling stock values, about 40% off the IPO valuation, and a claim teenagers are getting tired of the social network, the hope is now focussing more on mobile. Unlike print which can command both a cover price and an advertising income stream, social media needs the advertising revenue. Although the prospect of reaching very carefully targeted individuals is appealing, real sales leads from Facebook, especially in the b-2-b markets are not something you hear about.
Although the company web site remains the first place to go, our research suggests that when customers type a search term into Google it is more commonly for the brand that they already know than actually searching for a generic product to discover vendors. Business buyers it seems already have favourite destination sites, using search is just a quick way of getting there.
Thursday, June 06, 2013
What does your email signature say about your company?
Does the email signature dominate the message content and create a negative impression of your company?We have been using email as a communication media since the very early days and still find it probably the most useful messaging tool. In those pioneering times when only pockets of users were connected, in the company I worked then, only Marketing and R & D departments in London and Los Angeles were linked, but it revolutionised our working practice. At that time messages were much more casually written and more friendly, even amusing it seems in retrospect in a time before the legal boys wised up and started adding disclaimers. We didn't really expect the content to be formal as would be the case for official letters which then were still being dictated to an army of secretaries to transcribe. People were now writing their own content complete with spelling errors and absence of punctuation. But know what - we didn't care. Not only did we get the information we needed quickly, but we tuned in to the personality of the individuals and it did a whole lot of good for collaborative working for people in different locations and time zones. And once we had dealt with the message it was trashed along with any record of political incorrectness or corporate transgressions.
But once the wider business community embraced emails the geeky stuff got replaced by formal content and the signature kind of became excessively loaded with dire legal warnings. The emails didn't go in the trash can any more, they were filed for all time and instead of speaking to the guy at the next desk an email with appropriate audit trail is sent. Forwarded emails are worse because each time it is sent another great load of signature stuff gets stuck in between. Of course there are still some folks that haven't figured out it is customisable and leave in the default - 'sent from my iPad' - promoting Apple rather than their own company. Personally I favour sticking to contact details plus maybe a tagline or reference to a current promotion or exhibition the company is at - but short and to the point. I find the 'do you need to print this?' message a bit patronising, but nothing is as bad as the full legal sign off. I will conclude with this example - say no more. Names and addresses are removed to protect the creators.
"Thank you, for contacting our Enquiries Team at XXX College.
We hope to process your enquiry and where appropriate respond to your request within the next 48 hours.
Kind Regards
The Enquiries Team
for the individual(s) named. If you are not the named addressee youshould not disseminate, distribute, print or copy this e-mail. Pleasenotify the sender immediately by e-mail if you have received this e-mailby mistake and delete this e-mail from your system. E-mail transmissioncannot be guaranteed to be secure or error-free as information could beintercepted, corrupted, lost, destroyed, arrive late or incomplete, orcontain viruses. The sender therefore does not accept liability for anyerrors or omissions in the contents of this message, which arise as aresult of e-mail transmission. Please note that any views or opinionspresented in this email are solely those of the author and do notnecessarily represent those of XXX. Finally, the recipient should checkthis email and any attachments for the presence of viruses. Althoughthis email and its attachments are believed to be free of any virus orother defects which might affect any computer or IT system into whichthey are received, no responsibility is accepted by XXX or any of itsassociated companies for any loss or damage arising in any way from thereceipt or use thereof.
XXX is the trading name of XXX College Corporation incorporatedunder the Further and Higher Education Act for the provision ofeducation to students, whose trading divisions are XXX College andYYY College and whose registered office is at ................................
XXX works nationally to meet diverse education and training needs inpartnership with its subsidiary companies:
The AAA Group Limited is a private limited company registered inEngland and Wales with registration number 0000000 whose registeredoffice is at ..................................
BBB is: a company limited by guarantee with registrationnumber 0000000; a charity registered in England and Wales withregistration number 00000; a charity registered in Scotland withregistration number 000000. The registered office of ....................................
Thursday, May 30, 2013
Company newsletters - online or in print?
Has the company newsletter become a casualty of the rising tide of social media content?B-2-B enterprises have traditionally used a newsletter, which in some cases evolved into a company magazine, as a means of keeping in touch with customers with updates on interesting recent projects, advances in technology, new products and general helpful information about the market. Because they were a cut above the hard sell mailer and professionally produced, they had higher retention value and also got passed on to work colleagues. For some clients the company newsletter became a victim of budget cuts with the rising cost of postage becoming a deciding factor. Some have switched their efforts to email contact and to social media, but there is a difference.
Looking at the trade press as an example, many have simply placed the printed magazine online using page turning technology. However people I have talked to about this find it too small to read without enlarging the article and after a while can't be bothered. Worse still clients are concerned their advertisements will not get noticed and where the publisher has opted for a magazine designed for print but only published online, they have pulled their advertising. Some have abandoned print completely and designed for reading online embracing the use of video and links and at the same time creating other display advertising opportunities. The advertising manager of one publication that continues in print as well as providing an online version, told me that there is very little overlap between the two circulation lists implying two, possibly different, audiences.
Rather than replace company newsletters and magazines by abandoning print and moving online only, newsletters need to evolve into an authoritative, quality publication through the use of informative and useful content that is of value to the customer. As a 'keeping in touch' communication tool they are probably going to be more effective and more likely to be read than an online only option which relies on the customer choosing to visit. Why not also develop and re-purpose content into an online version to attract a new readership?
And by contrast to the quick flash, short lived news bites of social media fulfilling a very different marketing need.
Wednesday, May 15, 2013
Should b-2-b marketing follow where consumer marketing leads?
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| iPhone users socialising |
It is not just social media of course but the platforms used and how people communicate with one another. The smart phone and in particular the iPhone is the platform of choice right now that absorbs the attention of its owners seemingly every waking minute. If that is where people, in other words potential customers, spend their time then that is a place where product and service providers need to be too, in order to promote i.e. advertise their offers. Certainly a number of consumer companies think so and have invested heavily in social media and in particular Facebook to 'converse' with the younger audience. A recent report by Piper Jaffray which asked 5,000 teenagers to name their favourite social media site showed a significant decline in support for the best known sites like Facebook. A couple of articles (click links) illustrate the findings and add their own views raising questions about the marketing value of social media.
As noted in several previous blogs, our b-2-b clients are divided on social media as being appropriate to their business. At one extreme Facebook in particular is seen at best as trivial, or worse a place where 'friends' post and tag their pictures of recent drunken excess, or even bully others. A strange surreal world where without leaving the bedroom a user can socialise with a couple of thousand 'friends' they have never met, rather than their 2 or 3 real life acquaintances. Why they ask would we want our products to be associated with this banality? Good question. The opposite view is that engaging through social media is an important channel because that is where customers and prospects spend so much of their time. This approach seems to demand an almost continuous news stream to gain any kind of visibility amongst the sea of messages that are out there. Purely anecdotally I have noticed amongst people I know a trend for retired former work colleagues to be quite active users of Facebook, others sign up and after a burst of enthusiasm lose interest and another category simply shun Facebook. And of course there are many other social media sites that parents and retired people have not heard of yet where young people can go. A more relevant question is where, if on any of these numerous social media channels are your customers and prospects?
There is plenty of anecdotal evidence that the iPhone brigade spend an inordinate amount of time interacting with the device even and particularly, when supposedly actually socialising in a restaurant, at a barbecue (see photo) or even in the cinema or theatre. Take the example of a 24 year old in our family, one who shuns Facebook incidentally who switches on TV, plugs in headphones in one ear to talk to his girl friend, manages a steady stream of text messages on his iPhone, plays a game on his iPad and simultaneously discusses his menu requests for our evening meal. Or the daughters of friends sitting side by side sending Snapchat images of each other back and forth, pictures that vanish in seconds. Maybe its the platform that really fascinates and the popularity of apps will come and go. And don't forget more people are now reading their emails on mobile devices than on desk top computers and email campaigns have a proven track record.
Tuesday, May 14, 2013
Is email marketing getting personal?
Are the days of one to many email campaigns to be replaced by personalised emailed messages?Depending on source, the number of emails sent world wide each day vary, but safe to say are well in excess of 100 billion. According to royal.pingdom.com some 144 billion emails were sent each day to 2.2 billion users last year. Of these 61% were deemed non-essential, approaching 70% were spam and of these not surprisingly, half for pharmaceutical products. Interestingly mobile has over taken desk top and web as the most used platform and Mail for iOS devices at 35.6% is the most popular email client. OK - enough with the numbers, email is still a top marketing communications tool but not surprisingly things are changing and more changes will evolve as email marketing becomes better targeted, segmented and data driven.
It should come as a surprise, but doesn't, what poor shape many company email databases are in. With the cost of postal campaigns almost prohibitive to smaller b-2-b companies once the cost of design, print, labels, envelopes and postage are added up, it is to what quite a number still refer to as an 'email blast' they now turn. Although research normally rates email as a high return on investment channel, simply blasting out thousands of emails relying on volume to return at least some enquiries doesn't cut it any more. The smarter clients have meanwhile been nurturing and fine tuning their email subscriber databases, building trust and interaction with their customers and in particular keeping the email data current and the recipients engaged.
From time to time we are asked can we or do we send out emails? One such prospect not only had no customer email database but the company had no centralised record of their customers either. Amongst the 'email blast brigade' there is little concept of what they are going to send out either. They will have spent money in the past on designing print, but fail to extend the same approach or budget to a well designed email including a 'call to action", a campaign landing page and tracking codes etc. In fact too many still have little concept of the processes involved and factors that make the campaign a success.
Many seasoned email marketers, those who don't see the medium as a lower cost option to postal campaigns, are recognising the importance of tracking customer action and building data profiles from response to email campaigns, links followed, products evaluated and purchases made. For many b-2-b users this implies joining up system, in particular making the connection between enquiry data, web site visits and the all important purchasing record that probably only exists in the accounts department. So now not only does the b-2-b marketer have to deal with the IT people, but they might have to deal with accountants too!
The goal is to send personalised emails that have drawn on the individual's recent online research, enquiry, purchase experience and frequency to segment campaigns that present information and offers that are likely to be most relevant - it's getting personal.
Wednesday, May 08, 2013
Is marketing becoming an IT activity?
In the early days of email and Internet, marketing departments were often at odds with the IT department because their needs were not seen as high priority or even understood. Many still are.
A feature article published in the April issue of Database Marketing attracted my attention with the information that according to Gartner, by 2017 "marketing will spend even more on technology than the IT department itself in the USA." Interestingly it was the quick response of external technically switched on marketing agencies compared with the traditional and slow response of in-house IT departments that caused marketing to outsource. It was why we developed Virtual News Office. News is now, not when IT get finished with running payroll for Accounts. Not only did we get the news out fast, but where inter department charges operated in larger companies, it was cheaper as well. Today most marketing teams are familiar with using the technology which is not just the hardware platforms, but also the software tools such as content management systems [CMS] for web site tweaks and social media publication tools for Facebook and Twitter.
A feature article published in the April issue of Database Marketing attracted my attention with the information that according to Gartner, by 2017 "marketing will spend even more on technology than the IT department itself in the USA." Interestingly it was the quick response of external technically switched on marketing agencies compared with the traditional and slow response of in-house IT departments that caused marketing to outsource. It was why we developed Virtual News Office. News is now, not when IT get finished with running payroll for Accounts. Not only did we get the news out fast, but where inter department charges operated in larger companies, it was cheaper as well. Today most marketing teams are familiar with using the technology which is not just the hardware platforms, but also the software tools such as content management systems [CMS] for web site tweaks and social media publication tools for Facebook and Twitter.
The article - Marketing and IT: a marriage of increasing convenience? - continues, " Marketing perceives IT to be a barrier to delivery, particularly when its requirements are time-sensitive and when IT typically push back when confronted with a vague project which needs to be completed yesterday." And here lies the problem. As we noted in our last blog, many of the current generation of marketing communications people are not good at providing a relevant and complete brief to the supplier. IT people traditionally spend ages writing RFIs and RFPs prior to developing the system specification.
It is a bit like an iceberg where 7/8 is below the surface, so with technical marketing campaigns its all the stuff behind the scenes that too few marketers appreciate or even understand what goes on that makes for a successful outcome for a campaign.
At Technical Marketing Ltd we are used to dealing with the enquiry " do you send out emails?" and discovering there is no email subscriber list, no email design, no landing page and no content or design in place. And of course it needs to go out now! Not a brief to win friends in an IT department, but then that's what we do and are good at.
Thursday, May 02, 2013
It is all in the detail - really
In the age of instant communication, it is easy for quality to be compromised.
When marketing communications channels and design processes were expensive both clients and agencies took great care to ensure that what they put out was on message, accurate, well presented and effective. Mistakes were expensive to correct in the design to print process and embarrassing to say the least if not picked up before going to print. Client briefings were thorough and got right into the details. Likewise agencies checked copy closely, examined printed proofs through magnifying glasses and got a physical sign off from the client before going to print. Clients understood the details of the process and the skills and expertise they were buying to achieve quality results.
Of course progress in software has transformed traditional processes such as photography, design for print and offered new publishing tools, to such an extent that much of the perceived value has been diluted. The Internet has accelerated this process so that instantly messages, thoughts, views and opinions can be shared with the world. Stripped of the briefing process, attention to detail and authorisation many people are soon regretting the hastiness of poorly thought out instant messages and tweets. Even formal press releases are being issued then followed up with a correction. Part of this is driven by a programme to generate more news, not just daily but hourly. Where once we worked hard to find say a couple of stories for a month that actually had news value, now because of the push to fill story quotas on Twitter and Facebook, any trivial snippet will do. Do prospective and current customers really want to be bombarded with so much information, or do they simply switch off and not bother following companies with such prolific output?
How often too do we hear clients say, "don't bother me with the details" or " my role is to take a helicopter view, I don't get involved in details." Briefs, where they exist at all, arrive in the form of forwarded emails, some may add a note along the lines of, " here is a news story" others don't bother and leave the agency to trawl through an email trail to figure out what the story actually is about. If indeed there is a story of any merit. Some seem to think every individual sale is of wider interest. After all someone has to deal with the details in an age where instant gratification is demanded as in "don't give me any details - I want it now!"
When marketing communications channels and design processes were expensive both clients and agencies took great care to ensure that what they put out was on message, accurate, well presented and effective. Mistakes were expensive to correct in the design to print process and embarrassing to say the least if not picked up before going to print. Client briefings were thorough and got right into the details. Likewise agencies checked copy closely, examined printed proofs through magnifying glasses and got a physical sign off from the client before going to print. Clients understood the details of the process and the skills and expertise they were buying to achieve quality results.
Of course progress in software has transformed traditional processes such as photography, design for print and offered new publishing tools, to such an extent that much of the perceived value has been diluted. The Internet has accelerated this process so that instantly messages, thoughts, views and opinions can be shared with the world. Stripped of the briefing process, attention to detail and authorisation many people are soon regretting the hastiness of poorly thought out instant messages and tweets. Even formal press releases are being issued then followed up with a correction. Part of this is driven by a programme to generate more news, not just daily but hourly. Where once we worked hard to find say a couple of stories for a month that actually had news value, now because of the push to fill story quotas on Twitter and Facebook, any trivial snippet will do. Do prospective and current customers really want to be bombarded with so much information, or do they simply switch off and not bother following companies with such prolific output?
How often too do we hear clients say, "don't bother me with the details" or " my role is to take a helicopter view, I don't get involved in details." Briefs, where they exist at all, arrive in the form of forwarded emails, some may add a note along the lines of, " here is a news story" others don't bother and leave the agency to trawl through an email trail to figure out what the story actually is about. If indeed there is a story of any merit. Some seem to think every individual sale is of wider interest. After all someone has to deal with the details in an age where instant gratification is demanded as in "don't give me any details - I want it now!"
Tuesday, April 23, 2013
Marketing and small businesses
According to the Department of BIS Business Population Estimates latest (October 2011) figures, 99.9% of the UK's 4.5 million businesses are SMEs employing less than 250 people. SMEs employ 59% of all private sector employees. And most are not even medium size - 99.2% are small businesses with less than 50 employees and 74% have no employees. OK - enough figures but sufficient to demonstrate that in sheer numbers there are far more small and one man businesses out there than big companies. The question is how do they market their businesses? Not it would appear by using social media.
Working out of a small home office I get to meet and talk to quite a few one man businesses and small companies. For example last week we were having some home improvement work done. The typical business model is the one man business who plans and does the work overall and calls in and manages additional specialist services as required and co-ordinates with local suppliers and negotiates discounts on products. He has a web site, but this is a showcase to which he refers his prospects to view examples of his work and read testimonials from satisfied customers. His main source of enquiries are from word of mouth recommendations and repeat customers. He has work planned in for months ahead. His connections are by mobile phone. He doesn't have time to tweet or Facebook.Take another example, this time an accountant. When he started in business he was persuaded to have a web site built and several years later he is still waiting for his first enquiry from it. Meanwhile he has developed a successful business, again through recommendations.
Now look at it from the customer perspective. For a start do I want someone doing work for me who is constantly tweeting, checking friends Facebook status, watching YouTube and being engaged in social media, or do I want someone who is actually doing the job I am paying for. Hiring anyone to do work is a matter of trust and that is why recommendation is so important because you can see the work, talk about the price and the whole experience with someone whose opinion you value.
The other day I was sent a user generated video from a marketing company talking about social media in the building industry and how immediate news publication and reader response was today. One person interviewed offered the idea that during work breaks construction workers would go online and respond to news stories. It seems people are responding to breaking news stories, but not the people I speak to they are too busy to bother, but some clients are undoubtably buying the story and investing resource heavily into social media campaigns. Another video from the same marketing agency had attempted to capture a presentation to an audience being presented somewhere by one of their team who demonstrated the value of Twitter by means of a weird story. When trying to discover if your favourite wine was in stock at the local Tesco in the old world you had to telephone the store and wait while someone went away to check. Really! Now you ask the question on Twitter and within 10 to 15 minutes you apparently get an answer from Tesco Customer Care. Amazing and worrying if its true. My builder knows his suppliers on first name terms, stock levels, pricing and ordering is done in a brief telephone call in minutes.
Meanwhile back in the small business world people carry on working, building reputations and getting recommendations for new work tweet free.
Wednesday, April 17, 2013
Engineers do marketing
Engineers also work successfully in many other careers ... marketing is one of them.
An online article asks the question, "what makes a large chunk of top engineers take up jobs on Wall Street (sales and trading, quant etc) rather than start ups, or companies like Google, Microsoft etc." The responses are many, but a common theme is that engineering skills are both appreciated and better rewarded outside the engineering business than in it. The graduate engineer's own quantitative abilities don't take long to figure out where the better rewards can be found. Not all work as quants on Wall Street however, some have also moved into marketing roles where the analytic and quantitive approach of engineering works so well. Why is this?
Wikipedia describes engineering like this, "Engineering is the application of scientific, economic, social, and practical knowledge in order to design, build, and maintain structures, machines, devices, systems, materials and processes. It may encompass using insights to conceive, model and scale an appropriate solution to a problem or objective. The discipline of engineering is extremely broad, and encompasses a range of more specialized fields of engineering each with a more specific emphasis on particular areas of technology and types of application."
My own transition from engineering apprentice to a marketing role was informed by practical experience of engineering on the shop floor and in the laboratory. My employers offered experience in the many departments that a major British electrical manufacturing company then operated, including manufacturing, research, even HR or Personnel as it was then known. It didn't take long to notice that the people who actually set the agenda were the bright young men from head office, the product managers. And they worked in the marketing department. On graduation I worked for just a few weeks more back in the research laboratories before being recruited as an assistant product manager located in the company's head office in London's West End. I exchanged my white lab coat for a suit, enrolled on marketing and management courses and learned the job of new product development under the guidance of experienced, senior product managers. In fact my move from engineering to marketing was similar to most of my colleagues who also had the same grounding in the methods, analysis and planning of engineering . A key role was researching and developing the brief for new products, getting the financial backing and resources allocated by the board and progressing new products through R&D, testing, into manufacture, into stock, training the sales force and a marketing launch. The engineering background proved invaluable and something the new business graduates that had tentatively begun to appear in the department couldn't comprehend or manage. Simply knowing the theory of marketing was insufficient.
That grounding in engineering philosophy is at the heart of the ethos of our own marketing company today, embracing not just the initial research and planning but continuing through into implementation and post campaign analysis.
Wednesday, April 10, 2013
Is it time for augmented reality advertising to take off?
Remember the sudden interest in QR codes two years ago? Is it now the turn of augmented reality advertising to enjoy a moment of fame?We blogged in April 2011 about the rapid adoption of QR Codes which spread like a rash over advertising and catalogues linking the print medium to the web without the bother of typing in a url. it seemed like a great idea at the time, but in reality demonstrated once again that when it comes to the Internet people are lazy and not prepared to wait either. The novelty of switching on an iPhone, opening the app, focus/scan and click and up comes a web page was an interesting experience for a while, but often the link led to content that failed to please. Disappointing content was poor enough return for the effort and locating the QR codes themselves on bus sides or across tube tracks on the London Underground were reason enough to forget the whole idea. Time to move on.
Augmented reality advertising has been debated by marketing people for a couple of years or more and as implented by blippar requires their image recognition app for, "bringing to life real-world newspapers, magazines, products and posters with exciting augmented reality experiences and instantaneous content. There is even an Augmented Reality summit scheduled for London in June promoted with the tag line "Where the physical & digital worlds meet."
So does it work? technically the answer is that I got it going quite quickly - downloaded the app, pointed it at a page of the Metro, tapped the screen and up popped a video clip. Much smoother than QR codes. To try it yourself get the blippar app from the app store, open it and point it at the image on this page and hopefully you will see the video promo clip. The response could equally be a "web link, video, competition, interactive game, poll, coupon ... anything!"
Friday, April 05, 2013
Marketing to a budget or on a budget?
In these times of economic gloom sound marketing advice, based on research, is to maintain the marketing activity while the financial management tendency, based on prudence, is to cut marketing expenditure.Research by Harvard Business School has shown that it is essential to maintain marketing spending, even more so in a recession and to emphasise core values. “It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. Uncertain customers need the reassurance of known brands.”
We have often talked about the importance of a Marketing Plan and closely linked to the plan is the Marketing Budget. As with the marketing plan - a statement of intent, a manifesto and plan of action - time should be spent on carefully building the accompanying marketing budget. Companies without a budget seem to be more easily tempted to buy special advertising offers and buy into all kinds of special deals than companies who have planned ahead and purchased at more advantageous series rates for marketing services that are core to the plan. Not only are the bargains not always appropriate but it is amazing how quickly the costs mount up and without apparent benefit.
We have frequently referred to the engineering philosophy behind technical marketing. Take the case of purchasing a new machine or piece of equipment. It is regarded as an investment that will be justified on the benefits it will bring - lower costs, improved productivity, better quality. We look at marketing as an investment, an investment that should deliver valid returns. Just because there is often a significant creative element does not devalue the investment benefit. Equally there should be benchmarks and goals set that are measurable.
Another more subtle way of cutting the marketing budget is to cut quality. Where marketing is not valued by a company, then purchasing marketing services cheaply can be tempting. The problem with this interpretation of budget is that the downgrade in quality that usually accompanies becomes apparent to customers. They start to perceive the company as a 'budget' brand and lower their expectation of both the quality and value of that company's product accordingly. Interestingly people buying marketing services at a budget price might think otherwise in their day to day lives. They would probably opt for experience rather than trainees or amateurs and recognise that experience may appear more expensive but is actually the safe option. The same people that wouldn't let a student do their hair or fix their teeth will happily let a relative or man they met in a pub have a bash at their web site, design a brochure or photograph products. Although professional marketing advice might come at a higher hourly rate it can prove a wise investment in doing things right and helping the company build credibility.
Wednesday, March 27, 2013
Marketing for start up businesses
New business start ups generally have need of effective marketing, but little resource to invest. How can a new business succeed?
One source notes that one in three new businesses fail within the first three years and lists a number of reasons. Guess what? Top of the list is 'poor marketing'. Marketing is also closely associated with other reasons cited for failure such as lack of planning and financial liquidity. Although there have been and continue to be, various government initiatives to encourage start up businesses, having a good product or service idea is not enough on its own and becoming an immediate expert in marketing, finance, selling, stock control, distribution and many other skills is simply unrealistic.
In running a small business ourselves for many years we have tended to divide our work effort into 3 main categories:-
One source notes that one in three new businesses fail within the first three years and lists a number of reasons. Guess what? Top of the list is 'poor marketing'. Marketing is also closely associated with other reasons cited for failure such as lack of planning and financial liquidity. Although there have been and continue to be, various government initiatives to encourage start up businesses, having a good product or service idea is not enough on its own and becoming an immediate expert in marketing, finance, selling, stock control, distribution and many other skills is simply unrealistic.
In running a small business ourselves for many years we have tended to divide our work effort into 3 main categories:-
- The process of generating enquiries, acquiring new customers or clients and getting an order or a brief for the work required.
- Actually doing the work itself and delivering this to the client.
- Then, all the back office work such as book keeping, paying invoices and taxes, issuing invoices and progressing payments, banking, maintenance of premisses, ordering supplies and everything else it takes to keep the business functioning.
The most important thing to remember is that only selling a product or service generates an income. Getting business is an investment to help create sales and administration is an expense. Small businesses are often very small in the start up phase - just one or two people - and resources are measured in both time and money, both are scarce.
Because marketing is such a key element, even a start up business should budget some money and time and consider this an investment that needs to earn its way in bringing in quality sales leads. Before even starting a business, market research is essential to drawing up a realistic business plan. OK so you have a great product or service concept. Now you need to research pricing, competition, estimate the market size, the target market for your product and who are you selling to - the target audience. The business plan should have an objective which can be simply stated such as to sell X products in year 1, gain X% market share or achieve £X sales. New businesses often over estimate sales and predict unrealistic growth. It is better to be conservative and set a marketing strategy to hit achievable targets and plan finances to suit.
Marketing communications is the key to telling your target audience that you are in business, you have a product which has benefits to them - think about user benefits not a list of product features they may neither understand or care about - and use several communications channels to get your message to the type of people who you have identified as potential customers.
So finally a word on what marketing communication channels to use. First of all avoid the sales pitch of advertising space salesmen. The "just closing the issue at a special discount if you buy now" type of offer should be resisted. Time for paid for advertising later once you are established, understand your market better and which media is relevant. Likewise exhibitions can be expensive; build a sustainable business first. Do build a competent web site and invest in professional design too for not only the web site but all relevant communication collateral. Use word of mouth marketing, get satisfied customers to endorse and recommend your product, use online tools such as social media to promote news about your product. Maybe use your passion for the subject to build up a an audience that sees your blog as an authority in your market niche. And above all nurture your customers, get repeat business and encourage them to spread the word.
Content ideas - books
Yes, books. Real books. Books that can be touched, carried, read without a screen or pixels. A corporate book is more than a marketing piece; it conveys the experience of a company, its tradition, beliefs, philosophy and history. It adds credibility to the company and gives provides an alternative, yet supporting, perspective to the sales mission. In a highly competitive industry it can raise a company profile and support other elements of your marketing mix. It is also a gift that is valued by clients, and definitely has a retention value. And these days of print-on-demand, the investment need not be high. So what content do these corporate books contain? The key elements are to do with building on the company's reputation, emphasizing its experience and providing a client with confidence that placing an order for a product or service is the right thing to do. The Guide booklet advice given last time can also be included in a full book content if appropriate.
The route to deciding content divides between an established business and a new one. For companies with a history, some background is a good start with archive photos, and an explanation of a client-friendly business philosophy that has continued through to the present. A timeline of development and, ‘pushing the envelope’ inventions provides a solid foundation for implicit claims that your company and services/products have a strong legacy, based on knowledge and experience. Tracing current designs, business models back to the origins all helps to provide a complete story that can be illustrated with case studies woven into an illustrated portfolio. Finish up with the here and now. Investment in people, the business, current benefits for clients and conclude with looking to the future.
A corporate book is slightly different for a new company making its way into a potentially crowded market. Here, you would look at setting out why you are entering the market, what you can offer clients that they don’t have already (yes, this means that if you don’t have a USP, then maybe a book isn’t the way to go). But if you are bringing new thought to the market, then let’s look at a similar plan to the established company route with a beginning, middle and end: where you experience has come from, what you are doing now, and where you are going in the future. And don’t forget the photos! A picture replaces a thousand words, and the best book content is based on the quality and interest value of the images.
Content ideas - technical guides
Following on from our current theme of content marketing ideas, this week we look at an extension of the whitepapers idea: technical guides.
There are many opportunities for looking at slightly ‘left field’ forms of marketing. In the world of technical marketing, when a company offers technical advice gathered from years of development and practical experience, it is seen not as a sales pitch but an altruistic gift, yet one that is closely linked to the sponsor’s brand. Yes, of course all this information can be uploaded on a website and listed by Google, but our experience is that even a small printed booklet is still given and received as a 'gift'.
A guide booklet is a subliminal sales tool, but unlike a whitepaper (which focuses on a single subject), a guide extends to the complete topic surrounding the advertising message you want to distribute. The guide is created in a style that explains a technology in easy to understand terms, with sufficient history to provide a background, but not so much to be boring.
All new product ranges, technical solutions or services are ideal subjects for a guide booklet project. While avoiding specific references and ‘catalogue entry’ descriptions of products, the guide will provide a canvas of background information to b-2-b specifiers and buyers and gently explain about why previous technologies have developed to the logical point that describes your product’s unique benefit.
Of course, the guide uses plenty of subtle yet direct references to the products being sold, but in non-specific terms 'Fig 5: A typical example of a waterproof digital widget', or 'Graph 7: Comparison of energy efficiency of the traditional and the new technology…’ Using a combination of technical and journalistic copywriting techniques, the guide booklet can have many marketing benefits. In addition to the primary means to introduce a new product, or range of products or services, it can also help to promote your company as a caring, generous corporation, and most importantly be a sales tool with the all-important retention value.
There are many opportunities for looking at slightly ‘left field’ forms of marketing. In the world of technical marketing, when a company offers technical advice gathered from years of development and practical experience, it is seen not as a sales pitch but an altruistic gift, yet one that is closely linked to the sponsor’s brand. Yes, of course all this information can be uploaded on a website and listed by Google, but our experience is that even a small printed booklet is still given and received as a 'gift'.
A guide booklet is a subliminal sales tool, but unlike a whitepaper (which focuses on a single subject), a guide extends to the complete topic surrounding the advertising message you want to distribute. The guide is created in a style that explains a technology in easy to understand terms, with sufficient history to provide a background, but not so much to be boring.
All new product ranges, technical solutions or services are ideal subjects for a guide booklet project. While avoiding specific references and ‘catalogue entry’ descriptions of products, the guide will provide a canvas of background information to b-2-b specifiers and buyers and gently explain about why previous technologies have developed to the logical point that describes your product’s unique benefit.
Of course, the guide uses plenty of subtle yet direct references to the products being sold, but in non-specific terms 'Fig 5: A typical example of a waterproof digital widget', or 'Graph 7: Comparison of energy efficiency of the traditional and the new technology…’ Using a combination of technical and journalistic copywriting techniques, the guide booklet can have many marketing benefits. In addition to the primary means to introduce a new product, or range of products or services, it can also help to promote your company as a caring, generous corporation, and most importantly be a sales tool with the all-important retention value.
Thursday, March 07, 2013
Content ideas - white papers
As remarked in the previous blog, more opportunities for publishing, call for more content.
A White Paper can be a useful marketing tool particularly in an area where the company has special expertise and knowledge that a potential customer might find helpful as a briefing prior to the product selection stage. Accordingly a white paper is usually about a single subject, such as a new technology and can be used to help readers understand the issues involved before starting a process of product evaluation. The tone should aim to be neutral and authoritative examining both the benefits and the disadvantages and allowing the reader to make his own decision based on informed knowledge.
Although not overtly discussing products in the white paper, the reader will still have a view of the company as expert and therefore be favourably inclined towards that company as a result. It is part of building a recognition as ideas leader and capturing the moral high ground of that market place.
A White Paper can be a useful marketing tool particularly in an area where the company has special expertise and knowledge that a potential customer might find helpful as a briefing prior to the product selection stage. Accordingly a white paper is usually about a single subject, such as a new technology and can be used to help readers understand the issues involved before starting a process of product evaluation. The tone should aim to be neutral and authoritative examining both the benefits and the disadvantages and allowing the reader to make his own decision based on informed knowledge.
Although not overtly discussing products in the white paper, the reader will still have a view of the company as expert and therefore be favourably inclined towards that company as a result. It is part of building a recognition as ideas leader and capturing the moral high ground of that market place.
Tuesday, February 19, 2013
Stepping up content creation
With the emergence of self-publication as a valid option the requirement for quality content needs to be stepped up several gears.
One client has recognised the need and is working with us to deliver a wealth of new content to a daily schedule. Another has stalled and needs ideas to drive their communications programme forward. They will also need to open up and be less shrouded in outmoded secrecy. Here are some thoughts we put forward for consideration.
The traditional options for communicating with customers and prospective customers has been through third party publishers of journals, usually referred to as the trade press, who provide magazines to address target audiences for the client's products. There have been two main routes:-
- Display advertising - purchase of advertising space in the main publications.
- Editorial - news coverage derived from press releases sent to the editor or news desk.
Both display advertising and gaining editorial coverage are valid marketing communication options, but through the Internet there are now many additional ways to communicate with prospects that no longer rely on buying space or an editor choosing to run with a news story, by being your own publisher. Communication can be broadcast (to a wide group), direct (to named individuals) or to niche groups.
As a consequence businesses need to generate considerably more content.
Content development
Relevant content is no longer of only short term value that doesn’t outlive the currency of the journal that prints the news, but now builds a library of information on the internet that is indexed by search engines and this in turn ranks your company higher in search results. It is therefore essential to step up content development, both to directly reach and influence prospects and to improve search engine rankings. As a consequence businesses are responding by increasing the output of content. Here are some ideas for content:-
- News flashes - short items (not formal press releases), comments on industry news, events, new legislation, ideas, new staff, talks, exhibitions, interesting reference articles etc sent out using email news, RSS feeds, social media and online comment on industry blogs etc.
- Press Releases - formal communication with press, news publishers, customers, subjects include new products, interesting product applications, third party testimonials, contract wins, staff appointments, exhibition previews, new investments, technology etc. sent out to press, published on own web site (e.g. using Virtual News Office), posted to industry news sites.
- Articles - longer, more detailed news stories, perhaps describing a recent and interesting project or a testimonial from a customer. Published on own web site, in company newsletter or commissioned by an editor.
- White papers - informed article typically describing the background to a topic such as the advent of a new technology, industry relevant and brand neutral. informative and educational and due to expert provided content positions the publishing company as authoritative in that market. Published as a PDF on own web site, often in exchange for contact email.
- Guides - introduction to the market, requirements, outline ‘how to’ chose right class of product etc. Often printed, mailed out on request, distributed at trade shows, available as ebook or published as a downloadablePDF on own web site, often in exchange for contact email.
- Video - increasingly popular for demonstrating how a product works, showcasing interesting applications or interviewing customers. Typically published on YouTube and own web site.
Third party publication
Self publication
Content/News distribution
- News to traditional media sent using html email press release.
- News to customer/prospect list (opt-in subscribers) by email newsletter - eNews - aggregate news stories, headlines/ opening text and image linking to Virtual News Office.
- News feeds - Twitter and RSS.
Thursday, February 14, 2013
Don't throw the marketing baby out with its bathwater.
The classic marketing mix for B-2-B products has been overhauled in recent years as we all know very well. Traditional combinations of personal demonstration, word of mouth, advertising, editorial, printed literature, direct mail, press releases, exhibitions and training courses have been eclipsed by websites, PDF downloads, video presentations, bulk emailing, RSS and social media feeds.
But is this 180° turnabout really what your customers actually want? We are hearing clients complain about these so-called Internet marketing methods. "It seems more like a way of saving money and balancing budgets," seems to sum up the mood in certain quarters. Few can still support the cost of a personal representative on the road visiting clients for a few pounds of sales per visit. It simply doesn't make sense if the end result is only collecting an order for a dozen nuts and bolts. However, what is often forgotten is the hidden benefit of face to face contact. What are your customers thinking, who are the new competitors, and why are they better? Would you have found out about a potential contract for another part of your business without popping in for that chat? How is the market changing and why?
Of course, you can spend money on market research and focus groups to gather information, but they can't replace direct sales feedback. Or, it seems, printed material. We are finding that more and more clients have gone into online information or PDF downloads for technical data and are starting to come out the other side and embracing print again. It is a hot subject with supporters on both sides: those who want to find information online and download it and those who what a printed brochure to put in a file.
One thing is certain and that is the argument for and against different marketing methods will continue for the forseeable future, but what is starting to appear is a hybrid approach of taking the best from both philosophies to make the whole greater than the sum of its parts.
A recent project to promote a range of data management hardware components included a simple 16pp guide for specifiers, written in a form of language that neither intimidated the novice, nor patronised the expert. Considered alone it didn't mean much, but as a souvenier of a sales visit, a gift for visiting the website, or a direct mailed piece, or the result of replying to a Tweeted message, it has been an undoubted success.
Thus the technical marketing strategy is to look at all options for marketing - from the traditional and up to date lists - and merging the best tactics from both to create a coordinated and appropriate approach to boosting profitable sales.
But is this 180° turnabout really what your customers actually want? We are hearing clients complain about these so-called Internet marketing methods. "It seems more like a way of saving money and balancing budgets," seems to sum up the mood in certain quarters. Few can still support the cost of a personal representative on the road visiting clients for a few pounds of sales per visit. It simply doesn't make sense if the end result is only collecting an order for a dozen nuts and bolts. However, what is often forgotten is the hidden benefit of face to face contact. What are your customers thinking, who are the new competitors, and why are they better? Would you have found out about a potential contract for another part of your business without popping in for that chat? How is the market changing and why?
Of course, you can spend money on market research and focus groups to gather information, but they can't replace direct sales feedback. Or, it seems, printed material. We are finding that more and more clients have gone into online information or PDF downloads for technical data and are starting to come out the other side and embracing print again. It is a hot subject with supporters on both sides: those who want to find information online and download it and those who what a printed brochure to put in a file.
One thing is certain and that is the argument for and against different marketing methods will continue for the forseeable future, but what is starting to appear is a hybrid approach of taking the best from both philosophies to make the whole greater than the sum of its parts.
A recent project to promote a range of data management hardware components included a simple 16pp guide for specifiers, written in a form of language that neither intimidated the novice, nor patronised the expert. Considered alone it didn't mean much, but as a souvenier of a sales visit, a gift for visiting the website, or a direct mailed piece, or the result of replying to a Tweeted message, it has been an undoubted success.
Thus the technical marketing strategy is to look at all options for marketing - from the traditional and up to date lists - and merging the best tactics from both to create a coordinated and appropriate approach to boosting profitable sales.
Wednesday, February 06, 2013
Report claims advertising boosts the economy
According to Marketing Week, a recent report from the Advertising Authority claims that for every £1 spent on advertising in the UK, £6 is generated for the wider economy that's making a £100 billion contribution to UK GDP.
Quoting from Marketing Week - Advertising Authority chief executive Tim Lefroy says: “That’s bigger than spending money on building new roads, railways or stations where the conversion factor would be one to four. Spending money on advertising will grow the economy, increase jobs and make things better in this country.”
It is all about generating demand for products but the report recognises a negative view of advertising is often more talked about than the positive role of wealth creation, exports and social benefits.
When the world wide economic crisis hit a few years ago, marketing budgets and advertising in particular were the soft targets for cuts because that is what has traditionally been the reaction. On the face of it there is no immediate disadvantage, only savings and a positive effect on cash-flow. Evidence suggests otherwise, for example research by Harvard Business School has shown that it is "essential to maintain marketing spending, even more so in a recession and to emphasise core values."
But the report while emphasising the economic case for advertising also homes in on data. "Digital expansion has brought with it an unprecedented amount of data, which if used responsibly can unlock immense value, but there are concerns that if the EU’s proposed data and privacy policies come into effect, further growth will be stalled." There is clearly great concern that proposed EU regulations if enacted into UK law, then growth in digital marketing could damaged.
Monday, January 28, 2013
The rationale for a technical marketing philosophy
Why is it consumers will pay a premium price for a product far in excess of its intrinsic cost? The answer is that the product bears a logo representing a brand that is desirable to the consumer. They are not just purchasing a product – they are investing in a life style choice, ownership of that product is aspirational and makes a powerful statement to their friends and associates about their own values and status. Of course the brand owner has invested serious money to create that desire and positioning of their brand intended to convey instant recognition and comprehension.
So do the same marketing techniques work for the less glamorous world of business-to-business marketing, where budgets are considerably less? The answer is that the general principles of marketing still apply – the challenge is how they are applied. People buying business products and services are also consumers who experience the world of consumer marketing every day, but in their professional capacity will be less influenced by emotional appeals. When buying or specifying b-2-b products the process is not characterised by a spontaneous desire for instant gratification. It is a process of evaluation and consideration which may be quite lengthy. But what might ultimately differentiate one similar product from another is the reputation of the brand of the supplier. Although price will always be important, quality, reliability, technology, availability, post sales support and many other factors may figure in the final purchase decision. Building that reputation for a brand is where marketing performs a vital role in creating an environment where purchasers will ultimately demonstrate a preference for one product over another.
Marketing should not be confused with sales. It is far more to do with planning for the future, with strategy to keep ahead of fast moving trends, the routes to market, and the means of promotion and delivery that provide the essential environment in which selling can be successful. When marketing technical products, there are many facets to the marketing role. Technical marketing will typically embrace new product development, marketing communications and protection of intellectual property. Instead of the emotional appeal of consumer marketing we recognise that in the marketing space we address of industrial, technical and entertainment technology products, we are more typically engaged with engineers. Accordingly we have introduced an engineering approach to marketing. Engineering brings discipline to marketing, a discipline much needed in controlling the flights of fancy of the creative media types in getting the i's dotted and t's crossed, keeping feet firmly on the ground and keeping sight of the purpose of marketing a product - not in winning design awards. And if bringing engineering into marketing might seem a strange notion, unless marketing is properly controlled and brought in on budget then it will be a disaster. Engineering projects are as much about planning, adherence to schedules and budgets as they are about technology. In fact engineers are increasingly being employed in some surprising areas including many types of management consulting even in the financial sector.
Technical marketing brings the same engineering methodology and thinking to marketing - introducing staffing structures, building the team, setting objectives through the marketing plan, formalising budgets, introducing financial controls, defining schedules and setting specifications for creative projects. Too often companies launch into building a web site, designing a brochure, booking an exhibition stand or commissioning an advertisement without first deciding on what they need to achieve. Design led agencies naturally play to their strengths - a flare for creative designs - and wow clients with exciting images. Arguably engineering marketing, or as we call it technical marketing, lacks some of that wow factor, but what we have discovered is that clients recognise the benefits that our approach can bring to the bottom line. We supply the rationale. And with the increasing importance of the Internet in marketing, a technical competence and comprehension of what works online too. Of course there is a need for professional creativity, but it requires purpose and direction - in short planning, organisation, discipline and control. So engineering marketing solutions works - our clients testify to that.
Common to successful engineering projects and successful marketing is the importance of planning and testing first. Our technical marketing philosophy helps engineer marketing solutions that support and aid delivery of company objectives. Starting at the beginning of the planning process is the marketing plan. Very few companies actually seem to have one any more than they have a formal business plan. There is too often the impression conveyed that the only marketing plan is to repeat last year's pattern of expenditure - usually the last several years - which makes it difficult to find budget for new concepts. All at a time when marketing is rapidly evolving. The usual reason given for not having a formal marketing plan is lack of time. But what is the point in spending money without knowing why or having any benchmark to measure whether it is successful? We recommend not only reviewing the marketing plan at least annually, but also setting the budget that will help deliver the results and company objectives.
Planning needs to be followed by effective implementation. This is an important part of our client involvement – working as part of the team to actually implement the plan at an operational level. By working in partnership with our clients, changing circumstances can be easily accommodated in the plan. We bring experience in a range of marketing disciplines from traditional to evolving online techniques and can handle some or all of these to an agreed plan. The mix will differ according to each client’s own specific needs and resources. Most of our clients now regard Technical Marketing Ltd as part of their team thanks to long standing business relationships.
If you market technical products and think your business could benefit from working with us then get in touch. If you are just interested in what we do then sign up for our e-mail newsletter or just follow us on Twitter or any of the other options offered on the web site. We are here to help businesses succeed.
Thursday, January 24, 2013
Time to think about how you approach marketing
Technical marketing is founded on the same planning and attention to detail demanded of engineering projects.
Successful businesses have clearly stated goals, a strategy and a supporting financial forecast. Marketing has an important role to play in achieving these business objectives and typically includes new product development, product portfolio management and a marketing communications programme. We should regard marketing as an investment that delivers valid returns just as would be demanded of any other use of scarce resources. Consequently it makes sense to plan marketing activities, apply strict budgetary control, set targets, measure outcomes and use feedback to modify and improve the plan.
It is essential to impose organisational discipline on all marketing activities starting with the marketing team itself, the relationship with both external suppliers and internal customers and in particular with the sales operation. A formal, written Marketing Plan detailing proposed actions, methods, rationale and time scales should be shared with and supported by the whole company. The Marketing Plan should be accompanied by a detailed budget which will be used throughout the plan period to measure and control expenditure. Another essential document is a Corporate Identity (CI) Guide which describes how the company logo and image is to be used consistently across a wide range of materials - not just marketing communications collateral, but from company stationery to vehicle livery and service team work apparel.
The discipline imposed by creating the Marketing Plan will require attention to be focussed on a 'joined-up' marketing communications strategy, so that the various marketing techniques such as advertising, PR, web site and email campaigns, are co-ordinated and have a synergy and integration into a complete programme that is absent in adhoc, unplanned activities. As with engineering projects, planning and attention to detail will pay off when the marketing plan is implemented.
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