Transcript Good Marketing - Fast Bridge Consulting

36 hours of lectures on
Product management in 25 Minutes
Most new products and services
will fail …
– they fail is because:
• we get lost in the thick of thin things
• we build products and services no one cares about
– worse yet, product successes are getting smaller
• too much incrementalism
• formula driven marketing vs. inspired marketing
Product Marketing
Bryan Cassady
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Building successful ideas and
successful brands is hard work
• A study by Nielsen 862 packaged goods
promotions. 50% no impact, less than 1 in 10,
plus 10%
– 90% of new products fail
– Few companies have proven their advertising works
Product Marketing
Bryan Cassady
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My personal view on marketing
• I think there are 3 types of marketers
– Risk takers (they like the macho bit)
– Risk reducers (they like getting house odds), but scare to act
– Risk reducers ready to act…
• A good marketer will build a strategy that increases odds of
success from
– 10%
– to 20%
– to 50%
A great marketer will
also do lots of stuff that fails
Product Marketing
Bryan Cassady
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“Let’s make
sure we follow
the books…
A typical Marketing MBA
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An interesting book…
Counterintuitive Marketing
Studying brands in 48 categories
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Airlines
Athletic Shoes
Auto Insurance
Banks
Beers
Bookstores
Bottled water
Catalog clothing
Cigarettes
Colas
Cold Cereals
Cookies
Cosmetics
Credit Cards
Department Stores
Fast Food Restaurants
Gas Stations
Haircare Products
Headache Remedies
Health & Fitness Clubs
Home Entertainment Equip.
Hotels
Household Cleansers
Internet Search Engines
Internet Service Providers
Jewelry
Laundry Detergents
Liquor
Long-Distance Telephone
Luxury American Cars
Luxury Foreign Cars
Major Household Appliances
Mid-priced American Cars
Mid-priced Foreign Cars
Motor Oils
Newspapers
Office Supply Stores
Personal Computers
Pet Supply Stores
Political Parties
Potato Chips
Rental Cars
Soaps
Spaghetti Sauces
Toothpastes
TV Networks
Weight Loss Programs
Wireless or Cellular Tel.
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Out of 48 product categories,
Brand Equity scores are:
• Decreasing in
• Stable in
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• Improving in only
4
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M.B.A. stands for
“Murderer of Brand
Assets”
In a connected world, little incremental steps
are the slow death of a brand
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“Learn not to
be careful.”
—Photographer Diane Arbus to her students (Careful = “The
sidelines,” per Harriet Rubin in The Princessa)
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Target ROI for a VC company
Investment
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Totals
Investment
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Return
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ROI
2000%
150%
100%
100%
50%
50%
25%
25%
10%
10%
5%
4%
3%
2%
1%
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Cum_invest Cum_Return
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Cum ROI
2000%
1075%
750%
588%
480%
408%
354%
313%
279%
252%
230%
211%
195%
181%
169%
159%
149%
141%
134%
127%
127%
Throw out 4 losers and your ROI increases
Throw out the winner and your ROI falls to
159%
-72%
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“Let’s make a
dent in the
universe.”
Steve Jobs
Apple Computer
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Class Summary
Thoughts to leave with
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Meaningful differentiation
Is there something that
makes you special
Normal = nothing !
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3 Laws of meaningful
differentiation
• Law # 1: An overt benefit
– 1 maybe, 2 things better than anyone
• Law # 2: Real reason to believe
– Credible, honest, memorable
• Law # 3: DRAMATIC difference
– Not itsy bitsy differences, but something that sticks in
people’s brains
Example:
Student applications
and the 10,000 pound cookie
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Dramatic Difference is a the best predictor of success
Dr. Robert Cooper
Factors of Successful New Products
#1 Unique Benefit
(Dramatic Difference)
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#2 Fit with Company
142
#3 Large &/or Growing Market
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(Resources, skills, abilities)
McMaster University
Hamilton, Ontario, Canada
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Clarity in communication
Your advertising needs to
be as good as your best
salesman
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Every day
YOU
are
bombarded
by up to 4,000 ads
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Quick test...What is it?
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Clarity
Confusion is not a good strategy for
success.
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Golden Rule of Clarity
Let a customer say NO
because what you offer
doesn’t apply to them.
But NEVER let a customer say
NO because
they don’t understand
what you’re offering.
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First Law of Marketing Physics
source: 2002 Eureka! Institute
• Overt Benefit
• You TRIPLE the effectiveness of
• your marketing efforts by OVERTLY
• communicating your customer benefit
Overt Benefit Level
Probability of Success
Low Overt Benefit
13%
Medium Overt Benefit
26%
High Overt Benefit Product Marketing
Bryan Cassady
38%
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Reason To Believe Story
3 Chefs - 3 Years World Cooking Competition Medalists
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Everything Sells
Are you offering, value,
innovation or service
(you need to choose ! )
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Everything you do with a brand is selling…
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1 + 1 + 1 + 1 = Beauty
1 + 1 + 1 + 0 = Failure
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Good Marketing is about [part 1]
What…
Dramatic differences
Clarity in communication
Everything Selling
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Be Real
Candor Counts !
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Why Candor counts…
• People want authentic brands
• They don’t trust advertising
– 93% of consumers do not have confidence in the
advertising messages of major corporations. (Yankelovic)
• Hated brands can win ! (polarization is good !)
– Build a brand consumer hate, and there is a good chance
you’ll build your bank account
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If you lie, consumers will punish
you. (Dell Hell = 366,000 hits !)
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Be connected
Good advertising = nice
Good word of mouth = Great !
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The Law of 250
• Every person knows at least 250 other people.
• Each of your contacts knows at least 250 people.
So that’s 62,500 at your 2nd level.
• Each of your 2nd level contacts knows 250
people - and that’s over 15,000,000
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Corollary to Law of 250
• It is typically not your first level contact that
eventually hires you - in fact, you’ll probably
find that the hiring contact may be 2, 3 or 4
levels deep.
• Some sociologists have found that
“acquaintances are more likely than family
members to give individuals direct information
and to recommend them for opportunities.”
(Mark Granovetter, “The Strength of Weak Ties”
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These are the contacts likely
Key to most success
You
4 Layers of Separation
Level 1
Contact
Your Friend
Alice
Level 2
Contact
Alice’s Uncle
Bill
Level 3
Contact
Bill’s Friend
Carol
Level 4
Contact
Carol’s Boss
David
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Gain exposure to the envelope of
serendipity: go to parties
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Don’t be fooled by the
experts !
Develop gut feelings
Talk to non-experts
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Wisdom of crowds in action
• Who Wants to Be a
Millionaire?
15 questions = $ 1 million
Phone a friend vs Audience
61% vs 91% accuracy
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An example
• What makes new products successful
– A better product
– Market potential
– Market synergy
All the things covered in the article, winners and losers…
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Bryan Cassady
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Yes
Yes
Source: New products what
separates winners from losers
Cooper & Kleinschmidt
2 out of 10 real differences, the rest statistically significant
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Personal opinion:
All the success criteria identified in the
winners/losers article are relevant. But what
makes a product a success is
An exceptionally high score on 1 criteria or
more likely…
A good score on a range of criteria
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Have fun
If you enjoy what you do… you’re
likely to do it well
If you believe you’ll do it even better
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• Increase the quality of life
• Right a wrong
• Prevent the end of something good
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Expand your horizons
Good marketing is about business
and people.
Understanding business is easy…
understanding people takes lifetime
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Make it your job to learn
• What you should be learning…
– Organizational behavior
– Psychology
– Design
• Collect stuff
– Cool advertising
– Great product ideas
– Beautiful design
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A few good books
Fun
• Re-imagine
• The Cluetrain Manifesto
• All marketers are liars
• Paradigms
• Funky business
• Influence: The Psychology of
Persuasion
• A Mind of Its Own: How Your
Brain Distorts and Deceives
Academic
• Judgment Under Uncertainty:
Heuristics and Biases
• The Difference: How the
Power of Diversity Creates
Better Groups, Firms,
Schools, and Societies
Not fun, but worth reading
• The Pyramid Principle
Quasi-Academic
• The Black Swan or Fooled by
Randomness
• Linked
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But remember…
Your education is what you
remember long after what you have
been taught is forgotten…
Make it yours, make it fun …
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Good Marketing is about [part 2]
What…
How…
Be Real
Dramatic differences
Be connected
Clarity in communication Don’t be fooled
Everything Selling
Have fun
Learn
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Share of customer
Never think you own your
customer… you earn them
every day
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A traditional view of the market
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The reality
"Our buyers"
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A continuum of loyalty
Not Aware
Sole Buyer
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A brand’s most valuable customers
give most of their business to
competitive brands
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11 Representative FMCG Brands
Not Aware
31% to
the brand
69% to
the competition
Sole Buyer
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Keep a dialogue open
Remember to talk with your
customers on a regular basis..
What they want is important
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Using advanced marketing
techniques for lunch...
• RFM
– This is what you ordered
last time
– And this is how much you
ate...
• Analysis techniques
– Based on your weight,
height, social background
• You expect them to ask,
why don't you ?
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Good Marketing [the full picture]
What…
How…
Be Real
Dramatic differences
Be connected
Clarity in communication Don’t be fooled
Everything Selling
Have fun
Learn
Measures
Share of customer
Ongoing dialogue: what do they say
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“Life [and your career] is not a
journey to the grave with the
intention of arriving safely in a
pretty and well-preserved body—
but rather a skid in broadside,
thoroughly used up, totally worn
out, and loudly proclaiming,
‘Wow, what a ride!’ ” —anon.
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A simple 3 step program for brands and people
1. What you are
Good at
Magic
2. What are you
Made to do
3. What will people
pay for
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