Are You Still Using The Marketing 5Ps? Move To The Improved 7Qs.

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Marketing is a great profession and the marketing 5Ps is the code by which we live. I’ve worked in or with marketing teams for almost my whole career and I am passionate about brand building.

From the outside, others see marketers as those who come to work late and seem to party all night. They always seem to be watching TV or jetting off to exotic places to talk about advertising!

For people working in operations or finance, marketers just don’t seem to be doing a very serious job; they’re always having too much fun! I’m sure you’ve already heard such comments.

Well, as you yourself know, marketing IS fun, but it’s also a lot of hard work, often close to 24/7 on some occasions.

So does all that hard work pay off? Not often enough in my opinion. And why? Because marketers simply don’t always ask the right questions!

 

The 5 Questions Marketers Should Ask

If you work in marketing, you already know the 5Ps – people, place, product, price and promotion. However, the problem with those is that when you find an issue with one of them, you know the “what” but not the “how”.

So I suggest you work with my 7Qs instead. Each of my seven questions explain not only what to check, but also the how and why you need to examine the area.

And if you can’t immediately answer more than just a couple of them, then perhaps you need to do a little more work and a little less partying!

 

Q1. Who are your customers?

People is the first of the marketing 5PsThe first “P” stands for people and often this is taken to be “Do you know to whom you are selling?” The answer is always yes and that’s accepted as sufficient.

Instead, ask yourself who your customers really are. I don’t mean just their demographics, but what, where and how they use or consume your brand and the category in which you are competing. And especially the why of their attitudes and behaviours. If you can’t give all these details about your customers, then you’re in serious trouble.

For more on this topic, see  “12 things you need to know about your target customers” for details on better defining your customer persona. You will also find a link in the article to download a useful template you can use to store all your information as you gather it. 

 

Q2. How are your customers changing?

Hopefully, you answered Q1 without any hesitation – you did, didn’t you? Did you also download our template and complete it? Many of my clients find it a useful way to store and rapidly access the information whenever they need it.

It’s great that you know a lot about your customers, but people change. Are you following how your customers are changing? Continue Reading

The Future of Brand Building is Customer Centricity

Marketing is an old profession. It’s been around for hundreds of years in one form or another. But with the advent of digital in the early 80’s, companies began taking a serious look at their marketing strategies.

Many organisations realised that it was time for a major overhaul of their primarily outbound strategies. Consumers no longer appreciated being interrupted in their daily lives, if they ever did!

However, even today, with the creation of inbound marketing strategies, they are still irritating their customers with spammy emails, intrusive pop-ups and over-complicated cookies, that gather far more information than most organisations will ever need or use.

Despite these changes CMOs remain one of the leading c-suite members who struggle to keep their jobs for more than four or five years. The reasons are many, but the post “Head of Marketing, How Can You Keep Your Job When Most CMOs Are Losing Theirs?” explains what you can do to ensure you only leave your position when you want to.

 

Brand Building

Many large CPG companies, such as P&G, Coca-Cola and Nestle, have changed the name of their Marketing departments in the past twenty years, to Brand Building. They hoped that it would revive sales and give new vitality to their communications to better engage their customers in the new social world. But most failed miserably, because they remained very much in a state of business as usual. They continued with the same processes and mind-sets. And with few exceptions, they prioritised thoughts about themselves and their brands, and rarely took their customers’ perspective.

Luckily a few other consumer goods companies realised that to satisfy the consumer they had to do things differently. They were the ones that moved to customer centricity. Or to be exact they started on their journey towards putting the customer at the heart of their business. Customer centricity is not a destination, because consumers are constantly changing and their satisfaction never lasts for long. It is a journey with the aim to satisfy and delight.

I think we have taught our customers far too well! They understand a lot more about “marketing” than they used to. They understand that companies have marketing plans and regular promotions, so they wait for the next price offs whenever they can.

They also realise that in today’s world, products have become more and more similar. Their format, colour or perfume may differ, but there are strong similarities in their performance.

That’s why consumers now often have a portfolio of brands from which they choose in many categories. They are far less likely to be loyal to only one brand than they used to be.

 

They have also come to expect constant innovation as they quickly adapt to the once novel idea and start searching for the next big improvement. According to Accenture’s “ Customer 2020: Are You Future-Ready or Reliving the Past?” almost a half of consumers believe that they are more likely to switch brands today compared to just ten years ago! Continue Reading

Improving Ideation, Insight & Innovation: How to Prevent Further Costly Failures.

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As you know, I am a global customer centricity champion. My passion is helping organisations to grow faster by putting customers at the heart of their business. One of the most frequent requests I get is to help in improving ideation and innovation.

This is by far the most common area that my clients struggle with. Is it a challenge for you too?

Many companies create great new products and services – from their perspective – but they fail! They then ask if I can help them to identify to whom they should be selling. Of course, I do help them, but I also suggest that next time it would be better if they called me before they started innovating! In a failure situation, it is almost always due to an outdated innovation process in which the customer has not been involved.

I know it can be difficult to innovate in this new age of technology, but it remains vital for growth. This is why I was recently invited to run two workshops on improving ideation and innovation, as well as to speak about it at three different universities in Beijing and Shanghai.

 

China is an Innovation Hot-House

China joined the top 25 most innovative countries in the WIPO global innovation index for the first time this year. This is because they no longer rely on cost-effective manufacturing alone. They also applied for more patents than the next two countries, the United States and Japan, combined! This clearly shows that China is improving ideation as well as their innovation. But they know they must do even more. To become a truly competitive nation, they have to better understand their customers, especially their growing middle and higher-income residents, who continue to prefer primarily imported Western brands.

Let me share with you a few of the ideas that I spoke about during my visit. They may just save you too from more costly failures.

 

Innovation is Essential

Switzerland continues to lead the world in innovation according to the latest WIPO GII study. It was, therefore, a privilege for me to by invited to help China corporations and academics by proposing a new way to innovate.

Most companies innovate from a technical and skills-based foundation. It doesn’t usually work very well, if at all. In fact, according to Nielsen, IRI, Fortune and many others, it is estimated that between 85% and 95% of new consumer products in the US fail. In Europe, it’s just as bad, with only 25% of new consumer products still on the shelf just twelve months after launch! And less than half that number by the end of the second year.

With such disastrous results, you might wonder why companies continue to innovate. Well there are three main reasons why they do:

  1. It keeps brands fresh. Brands which innovate have something new to share with current and potential clients.
Continue Reading

How to Stop Brand Decline: Following Brand Image is More than Meets the Eye

If the headline caught your eye, then you are probably challenged by a declining brand. Am I right?

Unfortunately for you, I’m not going to give you an easy five-step solution to turn around that faltering, or dying brand. And I will chastise you for letting it get that far! But I’ll also give you five ideas to help you understand why your brand is declining.

I was speaking with an ex-colleague of mine who is frustrated by her boss – aren’t we all at times? She is working on a brand that is globally doing OK, but the brand image results are beginning to show some worrying signs. The most important attributes identified for the product are all trending in the wrong direction.

Her boss continues to argue that since sales are good, why should they worry? He even went further and claimed that as the brand’s sales were doing well, there was no reason to continue to measure its image! This is just madness; wouldn’t you agree?

Brand image metrics are one of the best ways to follow the health of the brandif you are following the right attributes. 

By right I mean metrics that are relevant for the brand and the category. I have heard marketers request to measure their advertising slogans in a brand image study. This is obviously wrong, but it still comes up regularly when I’m working with a relatively inexperienced marketer. The reason you don’t is because slogans change, but the essence of a brand shouldn’t.

So if you don’t measure its advertising (directly), what should you measure? I think that the three most important areas to cover are:

  • the rational, functional benefits
  • the emotional, subjective benefits
  • the relational, cultural benefits

Let me give some examples, so you better understand:

  • Rational, Functional: removes stains, has a crunchy coating, offers 24-hour service.
  • Emotional, subjective: trustworthy brand, high quality, makes me more attractive.
  • Relational, cultural: a Swiss brand, trendy, traditional

In addition to these three image areas, I would suggest you also follow the brand’s personality and value perception. Both of these will impact its image and can provide clues to help understand changes in the image.

One further best practice is to also follow your main competitors so you have a good perspective of the category and its main selling points. Sometimes declines in image come from a competitor emphasizing an attribute for which you were previously known. As a result, although your brand hasn’t changed anything, its association with the attribute can decline due to the competitive actions.

Coming back to my friend and her manager, she asked me what she could do to persuade her boss to continue measuring brand image. This is what I told her to discuss with him.

  1. Review the attributes that have been measured, especially those showing the largest changes. Can you agree on why these have happened? Are you measuring the right metrics that cover the category or are you in need of updating them?
Continue Reading

How to Stop Customer Satisfaction Drip, Dripping Away

I recently spent a few days in a condo that I have rented before in Miami Beach. It is a wonderful penthouse suite with panoramic views of the sea to the east and Miami city and port to the west. I rent it because I am always delighted to spend a few days of vacation in such a perfect place.

However, this last time I wasn’t happy. What has changed? Very little really but enough to make me feel disappointed. That made me reflect on how quickly our customers can move from delighted to dissatisfied because of some small detail we might have overlooked or which we ourselves see as irrelevant. Let me explain.

  1. I arrived at the condo building, but the usual doorman with whom I had built a good relationship has been replaced by a new person. Just as efficient but not “my” doorman; he didn’t know me so he came across as less welcoming and friendly. In the business world our customers like to be recognized for their loyalty.
  2. The condo was as perfect as ever, but had obviously been cleaned in a rush in time for my arrival. It smelt wonderful of course, but I didn’t notice the high-sheen tiled floor was this time wet and I went skidding onto my backside as soon as I entered. Customers notice when things are wrong more than when everything is right.
  3. The usual paper products were supplied, but only four sheets of kitchen roll and not many more of toilet paper! No big deal but it meant I had to immediately go out and buy them first thing the following morning instead of lazing at the beach. Customers will sometimes buy a competitive product rather than go searching when yours is out-of-stock.
  4. I went to bed early upon arrival because I was tired from the sixteen hour trip and the six hour time difference. I had never noticed before but neither the blinds nor the (too short) curtains cut out the daylight, so I tossed and turned for hours before sleep finally took over. Small issues with your product or service may go unnoticed – at least until there are many more “small issues.”

I am explaining these details to demonstrate how little things can build upon one another to create dissatisfaction. The same can happen to your customers. So ask yourself, what little changes have you been making that your customers haven’t (yet) noticed?

  • Reducing pack content just a little
  • Reducing the cardboard quality of packaging
  • Making the flavouring just a little more cheaply
  • Increasing the price just a few cents
  • Shipping just a few days later than usual
  • Call centres being not quite as friendly as they used to be
  • Response time to queries and requests a little slower than before

These adaptations are unlikely to be noticed by your customers at the time they are implemented, unless they are already unhappy with your product or service. The minor changes you have been making over the past months or years will have gone by without any impact on sales. Continue Reading

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