Marketing demystified for smaller companies, students and professionals who prefer explanations and commentary in plain English. Lacking airs, ego and buzzwords!
Monday, 30 June 2014
Are you a mug or something?
As soon as England were knocked out of the World Cup, somewhat inevitably, supermarkets and other outlets discounted all the England merchandising hoping to recoup some of the now-wasted investment. Prices of mugs, teddies and even the ubiquitous flag all hit rock bottom, just as our national team have done in their dismal qualifying games.
On a visit to a supermarket on Saturday, the merchandising is still there and it seems they can’t give it away. The displays are shunted to a sorry corner but are nonetheless re-marketed as “summer essentials” – a marketer somewhere is hoping that we’ll want a St George’s flag to adorn the BBQ scene so I guess they’re pinning their hopes that we do actually get a BBQ summer then? Or perhaps they’re anticipating future demand that we will stock up for 2018 – after all, Roy said we’d be ready by then so get a bargain now!
As well as lots of merchandising going spare, one souvenir manufacturer even had to contend with a horrific marketing gaffe by mixing up the most powerful man in the world and England’s Chris Smalling. Trying to sell 2,000 mugs emblazoned with the faces of England's World Cup flops would usually be a hard task, but the hilarious mistake has apparently caught the public’s imagination.
It seems the mug with Barack Obama’s face as a defender is proving popular as a novelty item, with the BBC reporting a quarter have been sold to people in the US and that there are "not many left".
Thankfully for the poor newbie who made the mistake, and the naughtier manager who obviously didn’t proof it properly, it seems they have unconsciously tapped into something Americans perhaps love about us – our sense of humour. Marketers have long-since known that those across the Pond love our accents, the royal family and our straight-talking brashness (thanks to Simon Cowell’s brand) and now it seems they love our humour, however unintentional it was on this occasion.
International marketing has many facets – the main one is ensuring you understand and respect cultural differences. If only marketers here had thought a bit harder:-
· Postman Pat had problems in Japan – the cartoon character is drawn with three fingers – a sign he is a member of the Japanese mafia (Jakusa).
· Honda introduced their new car "Fitta" into Nordic countries in 2001. If they had taken the time to undertake some cross cultural marketing research they may have discovered that "fitta" was an old word used in vulgar language to refer to a woman's genitals in Swedish, Norwegian and Danish. In the end they renamed it "Honda Jazz".
Our message to the poor soul who made the error – don’t worry. A) it could have been worse – Chris Smalling’s picture could have been put on the USA team’s mugs and B) a certain future on the US comedy circuit awaits you should your apprenticeship not work out for some reason.
Labels:
branding,
business-to-consumer,
cultural issues,
England,
FIFA World Cup 2014,
football,
high street,
merchandising,
pricing,
product management,
production,
proof-reading,
working internationally
Friday, 27 June 2014
I think it's all over... it is now (the time to divest)...
The TV wasn't hogged at 8pm last night so I think it's safe to return to the sofa... yes, we came, we didn't score many goals and the England team shuffled off the plane with only a cleaning lady to wave them home... or something like that. I'm not the world's biggest football fan by any means but I would have put the England flag up if we'd got to the next round!
So hope's over for another 4 years and the England team are off to Ibeefa and other sunny climes - probably via yacht because the average Premier League player's weekly pay packet is evidently £250k (BBC, 2013) although football blogger Sameer Arshad researched national match fees and found they were "not much" according to Rio Ferdinand and often donated to charity. However, if England had won the FIFA World Cup 2014, the players would have pocketed £650,000 each as a bonus.
If we were doing a cost benefit analysis on England winning the World Cup, the return on investment would be huge - financial benefits, sponsorship and merchandising, increased match ticket sales, and lots of lovely positive PR and a jolly good 'corporate' reputation: Rule Britannia. But how can we justify this team performance? Here are some very rudimentary statistics from a non-football expert:
At the beginning of June, I decided we must blog about the World Cup and now I've reached that goal post, it's all over... I don't get the point of football but its management intrigues me. Is it enough to give your fans the dream that one day you'll win (again) or do you need to provide tangible returns? Was football better when players didn't earn as much and were just hungry for the game? Do we need to get our players to work harder for their money? Or is it just a backdrop for sponsorship, merchandising and getting David Beckham into tight white pants... now there's a thought...
So hope's over for another 4 years and the England team are off to Ibeefa and other sunny climes - probably via yacht because the average Premier League player's weekly pay packet is evidently £250k (BBC, 2013) although football blogger Sameer Arshad researched national match fees and found they were "not much" according to Rio Ferdinand and often donated to charity. However, if England had won the FIFA World Cup 2014, the players would have pocketed £650,000 each as a bonus.
If we were doing a cost benefit analysis on England winning the World Cup, the return on investment would be huge - financial benefits, sponsorship and merchandising, increased match ticket sales, and lots of lovely positive PR and a jolly good 'corporate' reputation: Rule Britannia. But how can we justify this team performance? Here are some very rudimentary statistics from a non-football expert:
Over 3 England games, the average ball possession rate was 53% vs Costa Rica, 48% vs Italy and 62% vs Uruguay making the England team's overall performance 54% effective.
England played 3 games and scored 2 goals, an average of 0.67 goals per match.
Based on England's FA structure fee formula (2012) as quoted by Sameer Arshad (above), England players would have received £1,000 each for a draw (Costa Rica), and £750 for a defeat (Italy and Uruguay). So each player would have earnt £2,500 for a fortnight's play totalling £57,500 for the team of 23 players. Not to forget their home pay for their club sides of £11.5m (23 players working for a fortnight with an average salary of £250k).
At the 2012 fee structure rate, each goal cost us £28,750 in player wages.The simplified version of this cost benefit analysis of course misses out many income streams and other associated wages / costs and despite my lack of interest in football, even I can see the importance of having a national side and participating in the biggest tournament in the world - particularly when we do well (the London Olympics is a case in point). But there is a case for putting a marketing spin on our World Cup performance, in portfolio analysis, we examine the success of our products and divest the ones that are not performing or giving us a good return on investment. Some we put out to pasture if they're past their best. If we turn the argument into one about people management, sales people earn a basic rate and receive bonuses for achieving performance goals which motivates them to aspire to greater and continued success. If they stop selling, they stop earning commission.
At the beginning of June, I decided we must blog about the World Cup and now I've reached that goal post, it's all over... I don't get the point of football but its management intrigues me. Is it enough to give your fans the dream that one day you'll win (again) or do you need to provide tangible returns? Was football better when players didn't earn as much and were just hungry for the game? Do we need to get our players to work harder for their money? Or is it just a backdrop for sponsorship, merchandising and getting David Beckham into tight white pants... now there's a thought...
Labels:
budgets,
England,
FIFA World Cup 2014,
football,
management,
motivation,
rant,
team working
Location:
Cambridgeshire, UK
Thursday, 26 June 2014
Look into my eyes and trust me
"Look straight
ahead into the flashing light. Keep your eye focused straight ahead… not much
longer. Great we’re all done." And so it was that, last week, I got
laser eye surgery at London Vision Clinic. In about 20 minutes, my 20 years of glasses and contact lenses
were history.
The procedure was quick and painless and so is the recovery and it’s just a pity it took me two years to pluck up the courage to have it done. The decision making process was long but very straightforward due to the fact I have spent the better part of my marketing career in the healthcare industry and know my way around. The information search was as routine as the surgery - I knew which clinics had the best reputation and I checked out the top surgeons (some I knew of anyway) and so I was confident in my choice. What took the time was courage development!
So what about those who don’t have that knowledge? How do
they evaluate the alternatives? All surgery has risks and for
so-called elective procedures these must be more carefully evaluated especially
for more radical cosmetic procedures such as liposuction. Rates of
cosmetic surgery in the UK are high – nips and tucks are booming
business. There is a plethora of procedures and a vast range of clinics
to choose from.
The advertising is similar, the positive website reviews don’t
vary too much, the before and after pictures are mainstream so does it come
down to deciding which surgeon is the best? Well that was what clinched
it for me – but apparently a third of those opting for cosmetic surgery are
flocking to clinics abroad for cut-price procedures and a suntan too.
That’s a great holiday to have if all goes well, but it often doesn’t and
cosmetic tourists return home with poor results as well as jet lag and duty free.
The price dictating the quality of the surgery has got to be a bad
idea. I am all for bargain hunting on the high street but getting smoked
salmon from Aldi is hardly what we’re talking about here.
The post-purchase evaluation for me is overwhelmingly positive
and none of the associated risks materialised. I have paid a bit more
than others with the same result but you can’t put a price on peace of mind.
Friday, 20 June 2014
Survival of the Fittest
Two weeks into my "bikini diet" and I've lost 2lbs and the will to munch dry lettuce leaves, however it did get me thinking about diet guru Rosemary Conley who has been in the news discussing her business empire going into administration. After 21 years of successfully championing her wares to the slimmers of the UK, she lost ground due to new competitor diets and digital channels. She admits her mistakes in not considering the impact of apps and fitness gaming but it is too late for the staff who will be losing their jobs and the business creditors.
Rosemary has made a deal with a healthcare products firm to create apps and websites offering fitness and weight loss advice and has secured 100 of her franchisees offering fitness classes. The business may not have collapsed if social trends had been observed and the environment constantly reviewed and scanned for changes. The organisation should have entered the online market sooner, and countered the claims of effectiveness by other diets such as the Atkins, the 5:2, paleo and clean eating. This is an industry where slimmers are constantly chasing quick fixes and methods that really work! Let's face it, dieting is boring and following the same plan over a long period of time can be unmotivating - innovation is key to mix it up, otherwise customers will go elsewhere particularly if they are promised it works like magic! If you look at the core product concept - what is it that this product does for customers - you are selling transformation. And that's a powerful point.
In a competitive marketplace, where running costs need to be lean and organisations need to find faster and more profitable routes to market, running the headquarters of the food and fitness company in a beautiful stately home in Leicestershire was not the best way to gain a financial advantage and this is now set to close.
Obesity and health-related conditions are forecast to continue growing so this market is sustainable. In this case, the business model failed because competitive advantage was lost, costs were not reviewed, and customer needs and changes in their behaviour were not observed or taken seriously. In this business case, it was Rosemary Conley who lost the pounds, not her customers!
Rosemary has made a deal with a healthcare products firm to create apps and websites offering fitness and weight loss advice and has secured 100 of her franchisees offering fitness classes. The business may not have collapsed if social trends had been observed and the environment constantly reviewed and scanned for changes. The organisation should have entered the online market sooner, and countered the claims of effectiveness by other diets such as the Atkins, the 5:2, paleo and clean eating. This is an industry where slimmers are constantly chasing quick fixes and methods that really work! Let's face it, dieting is boring and following the same plan over a long period of time can be unmotivating - innovation is key to mix it up, otherwise customers will go elsewhere particularly if they are promised it works like magic! If you look at the core product concept - what is it that this product does for customers - you are selling transformation. And that's a powerful point.
In a competitive marketplace, where running costs need to be lean and organisations need to find faster and more profitable routes to market, running the headquarters of the food and fitness company in a beautiful stately home in Leicestershire was not the best way to gain a financial advantage and this is now set to close.
Obesity and health-related conditions are forecast to continue growing so this market is sustainable. In this case, the business model failed because competitive advantage was lost, costs were not reviewed, and customer needs and changes in their behaviour were not observed or taken seriously. In this business case, it was Rosemary Conley who lost the pounds, not her customers!
Labels:
business-to-consumer,
diet,
digital,
fitness,
information,
management,
market research,
marketing planning,
product management,
Rosemary Conley,
social trends
Location:
Cambridgeshire, UK
Friday, 13 June 2014
Want to know how to be an effective international marketer?
This
week, I wanted my class of International Marketing undergrads at #AngliaRuskin
to understand the challenges of the global marketplace – what environmental
factors could create barriers to entering a new country or region? I realised
that the most valuable insights I have about working internationally come from
my business meetings in Europe and America and collaborating with colleagues in
satellite offices, not from a text book. So the slide deck and reading to one
side, we set to pool our own knowledge and experience: what a diverse bunch we
proved to be with students from China, India, the Emirates, Italy, Lebanon,
Mongolia, The Congo and just myself from the UK!
Political
issues were really problematic in some countries where bribery and corruption
appear to be the rule – my students from Italy talked about Mafia payments and
my Indian students felt that bribery has become normalised in many situations. We
talked about cultural norms – how personal presentation is crucial in some countries,
respectful dress codes, socialising with prospective business partners to get
to know each other before contracts can be discussed, giving appropriate gifts
and understanding hierarchies in organisations.
Global marketing is about treating the world as one marketplace and segmentation based on characteristics beyond geography, however working effectively internationally as a professional marketer means understanding the influences from that country or region’s environment, as well as the appropriate way to do business, behave and present yourself.
"Understanding your own global competencies and getting guidance on the areas where you fall short translates itself into a powerful tool when it comes to negotiating and working successfully on an international scale. With all the various emerging markets on the Asian, South American and African continents - one language or style of marketing no longer suits all. Flexibility is critical as you engage in these different markets."
As
we continue to develop professionally as marketers, and our businesses extend across borders,
learning about new cultures and environmental differences will help us achieve
our objectives successfully. As my students embark on a career in business, I
hope their experience of studying in an international business school will ensure
they are culturally aware and better able to communicate and negotiate with
colleagues and partners abroad – wherever in the world they base themselves!
#workingabroad #intercultural
Tuesday, 10 June 2014
We can neither confirm nor deny that we are writing about the CIA!
A strange thing happened this morning... I took a screenshot of the CIA's now notorious first (quite amusing) Tweet, saved it onto my computer as CIA.jpg - then I couldn't find it anywhere despite the previous history saying I'd created it! When I resaved it as Cimage.jpg - it was there... Strange huh? Conspiracy? Probably not!
The CIA has embraced the Twittersphere in the spirit of openness and transparency - they tell us that they will share their #unclassified content with us. Fabulous said 615,000+ followers and the estimated 250,000+ according to The Guardian who retweeted the first tweet. However, this fills me with as much disappointment as when I realised that MI5 were publically advertising career opportunities... no more will I wander around Cambridge waiting for that tap on my shoulder to ask if I've ever thought about working for my Country. "Yes, count me in, although I don't like flying, hot countries, spiders, volcanoes or danger." Although we can still merrily engage in conspiracy chatter about the #unclassified content the CIA is not sharing with us, I do feel they've spoilt the mystique!
So should all organisations have a social media presence? Well these days the answer is probably yes, if they can keep it current, relevant, useful, on target with objectives and the mission of the organisation. Even the British Monarchy is following an integrated social media strategy with regular updates of what the royals are up to, photos from events, information on celebrations and so on... They've sent out over 18,000 tweets and have 668,000 followers - probably from a younger generation. When you consider how unpopular the British Royals were after Diana's death, and the current unpopularity of the Spanish Royals, social media is clearly a great channel for them to reach new global fans from this generation of digital natives.
Equally, despite my disappointment in state secrets being slightly less shrouded in mystery, there is a case for security services to be using social media to communicate what they do to protect citizens and to explain their strategic mission - however don't expect the SAS to be posting selfies of themselves "going through the window right now" anytime soon.
The CIA has embraced the Twittersphere in the spirit of openness and transparency - they tell us that they will share their #unclassified content with us. Fabulous said 615,000+ followers and the estimated 250,000+ according to The Guardian who retweeted the first tweet. However, this fills me with as much disappointment as when I realised that MI5 were publically advertising career opportunities... no more will I wander around Cambridge waiting for that tap on my shoulder to ask if I've ever thought about working for my Country. "Yes, count me in, although I don't like flying, hot countries, spiders, volcanoes or danger." Although we can still merrily engage in conspiracy chatter about the #unclassified content the CIA is not sharing with us, I do feel they've spoilt the mystique!
So should all organisations have a social media presence? Well these days the answer is probably yes, if they can keep it current, relevant, useful, on target with objectives and the mission of the organisation. Even the British Monarchy is following an integrated social media strategy with regular updates of what the royals are up to, photos from events, information on celebrations and so on... They've sent out over 18,000 tweets and have 668,000 followers - probably from a younger generation. When you consider how unpopular the British Royals were after Diana's death, and the current unpopularity of the Spanish Royals, social media is clearly a great channel for them to reach new global fans from this generation of digital natives.
Equally, despite my disappointment in state secrets being slightly less shrouded in mystery, there is a case for security services to be using social media to communicate what they do to protect citizens and to explain their strategic mission - however don't expect the SAS to be posting selfies of themselves "going through the window right now" anytime soon.
Labels:
British Royals,
business-to-consumer,
CIA,
social media,
Twitter
Location:
Cambridgeshire, UK
Saturday, 7 June 2014
Britain's Got Talent & Brand Loyalty - it's a yes from us!
Yet again, the Britain’s Got Talent final is nearly upon us. Now in its eighth series, we're about to feast on all that is talented and British (and Spanish, Canadian and French)! Together with other popular culture shows such as the X-Factor, I'm a Celebrity, The Voice and Big Brother, how does BGT manage to stay around? Viewing figures may ebb and flow and Big Brother even changed channels but we still switch on every Saturday night. You could say there’s nothing else on and nothing better to do but we can stream TV programmes and films to our heart’s content!
So if it’s not inertia, it must come down to loyalty.
So how do we generate sustainable brand loyalty? Here are our top 5 tips:
So if you want your brand to be more than just a one-trick pony, with a sustainable base of fans, use your talents wisely!
Ann & Cheryl
So if it’s not inertia, it must come down to loyalty.
So how do we generate sustainable brand loyalty? Here are our top 5 tips:
- Tap in! Tap into your target audience’s needs and, crucially, try to “own it”. BGT creates family entertainment that you can watch while eating your Saturday night takeaway. It’s mostly inoffensive, suitable for all ages and has no direct competitors on the other side. Create a unique offering that suits your target market and delight them; they'll come back for more.
- Keep on innovating, don’t settle: to be successful a brand has to change and adapt but it doesn't have to be top flight all of the time. Any brand, regardless of resources can focus on ensuring design, communications, packaging or customer care are delivered in a way that is superior compared to others. Make sure that you are outperforming on the factors that are most important to your customers.
- Get engaged with your customers! One thing that often sets top brands apart from the followers is the ability to communicate and engage with their audiences. BGT has a great app that replicates the big red buzzer and can be used during the programme. It doesn't matter how you engage with your customers – whether it’s through apps, social media, or shaking a bucket at the village fete – just make sure it suits your organisation and your objectives.
- Remember your long-term faithful customers: after 8 series, BGT has to consider its original fans as well as find new ones (some who may have been too young to watch previous programmes). These original fans are the ones who complain about changes in format or the competition's rules - it's not what they signed up for but they may like the spin-off shows which gives them more of the auditions they love! Remember, if you only offer superior deals to new customers, your existing customers will complain with their feet. Generate genuine loyalty by looking after your existing customers and hopefully they'll spread the love to new fans too.
- Use your personalities! For BGT, it’s a carefully selected team of judges. For other organisations, it could be inspiring or entertaining figureheads, social media with a face (we love First Capital Connect’s customer service Twitter feed) or even a celebrity endorsement in your communications. Nobody loves a faceless grey organisation; show off your individualism and unique selling points!
So if you want your brand to be more than just a one-trick pony, with a sustainable base of fans, use your talents wisely!
Ann & Cheryl
Thursday, 5 June 2014
Get in and get on with it!
As well questions such as “how much should I write” or “what
should I write about” or “when do I have to write it by”, one of the additional
questions I get at assessment time is how do I get on in marketing?
So, in the spirit of a bit of careers advice, herewith my
top 10 tips:-
1. Bigger isn’t always better: many believe (incorrectly in
my view) that you must work for a big big brand with a massive budget to be
viewed as successful. Whilst that may
work for some, in the earlier days of a marketing career in particular,
marketing roles in big corporations tend to be pretty routine and lack exposure
to marketing strategies. Smaller firms
may give more accessibility and scope to progress. One of the best marketing roles I had was
where I grew the role from nothing into a department, brilliant experience.
2. Know your balance from your breakeven: finance stuff can be scary and a little
boring let’s be honest here. However,
having some idea about numbers is a good thing for marketers. We get dissed by the finance manager if we
perpetually look blank at finance related questions. If you are not keen on numbers, find someone
who is to talk you through the basics of budgeting at least.
3. Make a new friend: in connection with the above, the
finance manager (who you are now trying to impress with your knowledge) should
be your friend not foe. Work hard to get
to know him or her so that they don’t roll their eyes at your budget. Get them on side and keep them there.
4. Network: there are some events where you can do this
externally and keep your eyes open to opportunities, but networking indoors
with people from different levels in the organisation is equally valuable
especially when restructuring or redundancies are being considered. If you’ve been noticed by other managers,
that could help.
5. Keep up: keep up to date and stay there. Your marketing knowledge is a tool that needs
to be used and sharpened. Get to know
the latest developments and do this continuously as marketing constantly
evolves and change and so should you.
6. Quality not quantity: just because you are first to
arrive and last to leave doesn’t make you the next top marketer. You are likely to be wasting time as no-one
can be that effective from 7am til 7pm so focus on what you are doing, not how
long you can do it for. Use time away
from the office more productively by doing a course, reading, or attending
events rather than pecking away at your pc looking busy.
7. Try mentoring: many in the profession who’ve been around
a while are happy to give advice and give your career the once over. Professional bodies such as the Chartered
Institute of Marketing run a mentoring scheme to help you take the next steps. Don’t ask, don’t get is what my mother used
to say!
8. Act professionally: you will get noticed for the wrong
reasons if you don’t fit in. Whilst I am
firmly against the idea of everyone being the same (this is marketing after
all!), if you stick out like a sore thumb then you won’t get that break. If it’s a “suited and booted” company then
that’s what you should be. Many larger
corporates are like that so if you insist on wearing your beach attire you need
to rethink your choice of organisation, or your wardrobe....
9. Enjoy it: There’s
very little point if you don’t. There
are lots of facets to marketing:
branding, communications, planning, design, research etc etc so there’s
no reason to get stuck in a rut. Find
what you like to do and move from a job into a role.
10. It’s not about the money: well it is, of course. We all need it to function but if you don’t
think it’s enough then look around to compare your role with an equivalent
one. Set out what you do and why you’re
worth more. Pick your moment to discuss
it properly with your manager. It may be
a “no”, or a “not yet” but ask for a plan as to how you can achieve a higher
salary.
So in summary, get the right cultural fit for you, learn new
skills including financial ones, pick up hints and tips from those around you
who can help, look the part, be professional particularly when it comes to
asking for a salary increase and enjoy it.
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