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Why do marketing initiatives fail?
By John R. Graham
The company president refused to approve
funds for publishing a much-needed marketing newsletter for
customers and prospects. Initially, he had been enthusiastic
and supportive to the point that the first edition was written,
designed and approved. But when it came to publishing and
mailing the newsletter, he wouldn’t approve the
expenditure. Yet, four months later, he wanted to get it
published and mailed as soon as possible. Why the change of
heart?
More often than not, budget problems are
an excuse rather than the reason for scuttling proposed
marketing and sales initiatives.
Management’s reluctance to fund
these programs may stem more from doubts about the benefits
derived than the costs themselves. For the most part, the
failures result from failing to deal with certain basic sales
and marketing challenges. Here are eight that companies should
address if they want positive results:
1. Failing to capture the customers’
attention. As strange as it
may seem, the big task is not simply getting a company’s
message out to customers. In fact, that doesn’t count for
much. Besides, that’s easy and you can see the evidence
for it everyday and everywhere. Look at your mail, read
newspaper and email ads. Most of what passes for getting the
message out totally misses the mark.
We’re flooded with messages —
and most of them go right by us. Why? Because they focus
attention on the advertiser. What purports to be a message is
no message at all.
The law firms that pay enormous fees to
advertise in the Yellow Pages generally do it right. The
headline says it all: “Injured?” That single word
captures the customer’s attention. The focus is squarely
on the person who has been injured and is looking for
compensation. While the name of the law firm is not
unimportant, it’s strictly secondary to capturing the
customer’s attention.
If marketing doesn’t accomplish this
objective, it’s wasting money. Most company newsletters,
web sites and marketing brochures suffer from the same flaw.
They tell the company story but fail to capture the
customer’s attention.
2. Not understanding what business
we’re in. A survey of
hundreds of drycleaning customers gave respondents the
opportunity to express their comments. While some customers
expressed concerns about a stain problem, a missing button or
some other issue related to the cleaning process, by far the
majority of comments related to customer service at the
company’s stores.
The survey revealed an interesting pattern:
customers who were satisfied with the people behind the
counter tended to be satisfied with the quality of work —
and vice versa. Those who did not care for the way they
were taken care of seemed to be less satisfied with the quality
of the clothing care.
Is the drycleaner in the business of
cleaning clothes? Of course not. The basic business is
satisfying customers. The task is figuring out how that is best
accomplished. Among others, Dell, Amazon and HP have figured it
out.
3. Not recognizing who runs the company. “Who runs your business?”
It’s a trick question, so watch out. The answers
generally cover the narrow range of shareholders to CEO. While
that’s the most politically correct answer currently, it
can’t come close to the un-politically correct and
unspoken answer. In more companies than dare admit it,
it’s the sales department that runs the business.
“If you want to stay out of trouble,
don’t let the sales manager hear you say that.” How
many times have you heard those words?
Employees in other departments can’t
figure out why management accedes so easily to requests from
the sales department. They wonder why their mistakes are
overlooked. And they don’t understand why they are
handled with kid gloves.
If sales isn’t in charge, then it
may be suppliers who control what is sold and to whom. They run
the business.
Once in awhile, a more thoughtful person
offers a different answer to who is in charge: “Our
customers.” Perhaps the housing and automotive industries
come closest to letting the customer run the business. And
that’s no accident. Both industries invest heavily in
understanding the customers’ dreams, aspirations and
basic needs––and delivering on them. Is that why
the front ends of the Dodge Ram trucks become more intimidating
year after year?
4. Wasting time looking for answers. The growing number of business
how-to-do-it books and newsletters suggest that employees at
all levels are something like the little lock in Alice in
Wonderland that runs around looking for the key to
“unlock me.” Check the popular management books on
amazon.com. Surprise! Those that give the reader what they want
to hear make it to the top of the list.
While we’re successful at responding
to readers’ wants––quick, easy answers to
complex and difficult problems––we’re not
ready to spend time asking the right questions. We are quick to
do something, but slow to know something.
The president of a manufacturing company
blamed declining sales on industry changes and a declining
customer base. When it was suggested that current, past and
prospective customers be surveyed to determine their level of
satisfaction, knowledge of company services, as well as a host
of other issues, the president saw this as a useless activity,
suggesting “we know all that.” The irony, of
course, is that they didn’t know “all that.”
In fact, they didn’t know any of it. All they had were
self-serving comments, personal impressions and anecdotal
information. And they are not alone.
5. Having a hard time staying on track. Perhaps the most pervasive marketing
problem of all is a lack of consistency. Everyone starts out
with a bang. It’s going to be the greatest ad campaign,
product promotion, newsletter or Web site. Time, effort and
money go into the projects. And where are they six months or a
year later? More often than not, they’re either all but
forgotten or already a memory.
If you look back through the files of just
about any company, there’s visual evidence of strong
starts and whimper-like endings.
The success of marketing is not so much
award-winning ads, brochures and web sites as it is in keeping
them going.
6. Ignoring the need to be responsive. An advertising agency began working with a
producer of radio spots on a new project. Early in the
production of the commercials, a level of irritation developed
as the agency began receiving audition “reads” from
voiceover candidates. As the emails arrived, confusion reigned.
No one could remember the individual voices. And just about the
time a tentative selection was being made, additional voices
arrived.
If this were an isolated instance, it
could be overlooked. But it’s not. Rather than dealing
with bits and bytes, we are expected to manage an assortment of
bits and pieces, particularly when email is involved.
On the other hand, failing to respond when
a response is required or needed is the other side of the coin.
Managing the follow up process is nearly unmanageable. Even
after repeated requests, there’s no response. Then out of
the blue comes the long awaited call, “Can we have it
tomorrow?”
7. Staying lost in the crowd. Describing the auto industry, Wall Street
Journal columnist Neal E. Boudette, writes, “Companies
with strong brand images are raking in
profit––despite slumping demand in Europe and a
price war in the U.S.” He then states that these
companies are “speeding ahead, because customers are
willing to pay more for their brands.” As he notes,
“companies with weaker images….are forced to slug
it out in profit-sapping incentive wars.”
That’s laying down the gauntlet.
Buyers are willing to pay more if they perceive the brand
offers additional value. In this particular column, the writer
describes BMW’s total commitment to brand protection.
If a product or service lacks strong
branding, the customer opts for the lowest price. Why has Tide
been the biggest seller among Wal-Mart’s detergent
products? Because of the brand. Protecting the brand is the
essence of business.
8. Failing to find new ways to help
customers solve problems. A
seasoned printer and copier salesperson for Dictronics, Inc. of
Needham, MA, Don Brouillette looked at the personal HP printer
and HP inkjet color printer next to it in an executive’s
office and offered one brief comment, “The money is
in the consumables.”
Brouillette was doing his job, finding
ways to solve a customer’s problem. In this case, it was
one that the customer had not identified. He pointed out that
while the cost of the equipment was low, the cost of the
consumables was high and that over quite a short period, a
single printer that does color and black ink would result in
significant cost savings.
The marketing challenge is to identify
ways for solving problems and then helping the customer
identify possible solutions. It’s in the discovery
process where good marketing shines.
Overcoming these eight challenges will go
a long way to producing positive results from a company’s
marketing and sales activities.
John R. Graham is president of Graham
Communications, a marketing services and sales consulting firm.
He is an author of several books, writes for a variety of
publications and speaks at association meetings. Graham can be
contacted by phone at (617) 328-0069 or by e-mail at j_graham@grahamcomm.com. The company's web site is www.grahamcomm.com.
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