Strategy Intro For Jumping Dust

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by
7-Deadly Marketing Sins The Deadliest Sins
Solutions
Ian Rheeder, CM (SA)
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Energy Focus Which best?Choose only one?
Start
Target
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Success Just three things

• Focus
• Energy
• Activities

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Die as individuals, or win as a team
Al Pacino Every inch counts.
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Win as a team or Die as individuals.
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Quote Insanity
Doing the same things and expecting different
results. Mark Twain, US writer business
lecturer, 1835 - 1910
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Quote Planning
Plans are nothing, planning is
everything. Dwight D.Eisenhower, Thirty-Fourth
USA President1953-1961, World/W-2 Commanding
General
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In Search of Excellence. (Tom Peters, R Waterman)
Lessons from Americas best run companies, 1982,
(Pascale cites in 1990)

• 43 excellent companies, 1982
• 14 excellent companies 5-years later
• 6 excellent companies 8-years later

Source Richard Tanner Pascale Managing on the
edge how successful companies use conflict to
stay ahead. 1990, Viking, London
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Good to Great Leaps!
How?
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How The Mighty Fall.
11 Firms that fell AP, Addressograph, Ames
Department Stores, Bank of America, Circuit City,
HP, Merck, Motorola, Rubbermaid, Scott Paper,
Zenith.
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Five stages of Death
Stage 3 Denial of Risk and Danger
Stage 2 Undisciplined Pursuit of More
Stage 4 Grasping for Salvation
Stage 5 Capitulation to Irrelevance or Death
Stage 1 Arrogance Born of Success
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Success Secrets

• Talent, plus
• 10,000 hours

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Why are some people so successful?
Persistent action.
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• Sin Solution 1
• Objectives are Strategically Meaningless
• Oblivious of your industrys Key Success Factors
• Not mapping out the Customer Experience Cycle
• Lack of Environmental Scanning (PESTIE, CCC)
• Sales Team clashes with the Marketing Department
• Recruiting the wrong Salespeople
• Incorrect Account Management

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Setting Objectives
Management by objectives works if you first
think through your objectives. 90 of the time
you havent.
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Specific Objectives Organization
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• Sin Solution 2
• Objectives are strategically meaningless
• Dont know your Key Success Factors
• Not mapping out the Customer Experience Cycle
• Lack of Environmental Scanning (PESTIE, CCC)
• Sales Team clashes with the Marketing Department
• Recruiting the wrong Salespeople
• Incorrect Account Management

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Quote CA
If you dont have a Competitive Advantage, dont
compete. Jack Welch, GE
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Porters Warning
Today, the only way to have an advantage is
through innovation and upgrading. Professor
Michael Porter, Co-Chair, Global Competitiveness
Report. 2007
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If you cant state your position in eight words
or less, you dont have a position.Seth Godin
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Why Customers Defect? (bank survey)

• 40 Just one person in the bank was the cause
• 30 Not treated as valued-customers
• Another survey 67 defect because of indifference

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Key Drivers of Loyalty
Secret Weapon. Difficult to copy your people.
Service Quality
Customer Loyalty
Perceived Value
Product Quality
Price
Relatively easy for your competitors to imitate
A. Parasuraman, Dhruv Grewal, JAMS, Winter 2000
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Insurance Operational Structure
INSURANCE COMPANIES (Manufacturer Wholesaler of
Products)
Marketing Distribution (MAD)
INTERMEDIARIES (Retail)
Agents
Brokers
Client
Client
Client
Client
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Major Issues Insurance

• Cancellation/Lapse Rate
• After 3-years 50 of policies lapse
• Recession (people trade down)

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The Cause of Lapse Rate

• Poor Service People Processes
• Poor Operational Structure in Channels
• Poor needs analysis at the start
• Poor Policy Performance
• Recession or Downturn
• Competition

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Solution to The Lapse Rate

• Improve the Offer Policy Performance
• Improve Distribution Channel Service
• Service Clients Directly (control sales)
• Focus on Customer Retention
• Focus on Process Efficiencies
• Target the right Customers
• Increase Product Range
• Cross-sell and Up-sell

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Competitive Advantage Ideas
Differentiation Variables (for CA)
P Kotler, 1997
Focus on just one or two ideas.
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Competitive Advantage One big idea. Nedbank.
A 25-ton flywheel
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4Ps for Product Marketing
Services Marketing
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Focusing on the Insurance 4Rs
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• Sin Solution 3
• Objectives are strategically meaningless
• Oblivious of your Key Success Factors
• Not mapping out the
  Customer Experience Cycle
• Lack of Environmental Scanning (PESTIE, CCC)
• Sales Team clashes with the Marketing Department
• Recruiting the wrong Salespeople
• Incorrect Account Management

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Latest Research Studies

• Neuroscience
• Brain Scanners
• 62 90 influence based on colour

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Law of similar responses
?
?
You
Customer
You
Customer
Infect each other with Motor Mimicry.
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Law of similar responses
?
?
You
Customer
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Functional vs. Emotional
B2B
B2C
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The deepest human need is the need to be
appreciated.William James
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Every Customer has a sign around their necks,
saying

• Make me feel
• IMPORTANT.

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Purpose of a business?

• The purpose of a business is not to
• make money but to
• satisfy the Customer.
• Peter F Drucker

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Red is Edible!
Steers
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1
1
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When a watch is advertised, what is the time on
it?
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Dynamic Relationship between 2-things

• Empathy
• Desire to Win

HBR Aug 2006
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The CUSP Selling Technique

• Customers Trust
• Questions?

4. Propose Close.
2. Uncover Problems
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30
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3. Solution/s
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"The most important thing in communication is

to hear what isn't being said." Peter Drucker
(1909-2005) Austrian-American economist and
author
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Coca-Cola Assignment

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Coca-Cola Middle East Assignment Mistake!

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The Ultimate Question

• Whats important to you about?

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Virgin Atlantic CEM Mapping
Customer Experience
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• Sin Solution 4
• Objectives are strategically meaningless
• Oblivious of your Key Success Factors
• Not mapping out the Customer Experience Cycle
• Lack of Environmental Scanning
• Sales Team clashes with the Marketing Department
• Recruiting the wrong Salespeople
• Incorrect Account Management

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Quote Competitor Analysis
The greatest mistake managers make when
evaluating their resources is failing to assess
them relative to competitors. Collins
Montgomery (HBR, Aug/Jul 1995)
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Customers
Strategy Funnel Effect (Research 4Cs PESTGEL)
?
What are your Objectives for the next period?
Research Customers
RELATIONSHIPS
You vs. Competitors

Research Info
Tap Customers Minds
Objectives?
Customers
Focus?
Your Company
Strategy Plan
Customers
Research?
Competitors
Customer Segments
Resources?
Markets?
Your Channel Brokers etc
Positioning?
Customers
Messages?
Customers
Your Segments
Product 4Ps
Strategy?
Direct Competitors SWOT
Service 4Ps
Problems Customers are experiencing
Plans?
SWOT of Value-Chain
Knowledge Service 4Rs (Risk Reduction, etc)
Implement?
Inside Out
Controls?
Research Customers, Company, Competitors, Channel
PESTGEL Environment
Narrow down Best Alternatives
Narrow down
Narrow!
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Four Basic Segments
B2C Consumer
B2B Business
Intermediaries Channel Brokers Agents
Government
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Segmentation Case - 2007

• Joshua Bell (busker) played 3.5m violin
• 2000 people passed him in Washington Station
• Played for 45 mins, collected 32 in his cap
• 2-days later Sold out at 100 each

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• Sin Solution 5
• Objectives are strategically meaningless
• Oblivious of your Key Success Factors
• Not mapping out the Customer Experience Cycle
• Lack of Environmental Scanning
• Sales Team Fights with the Marketing Department
• Recruiting the wrong Salespeople
• Incorrect Account Management

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Sharp tip of the pen or pencil
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Key Steps to Successful Marketing
Marketing
Sales
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• Sin Solution 6
• Objectives are strategically meaningless
• Oblivious of your Key Success Factors
• Not mapping out the Customer Experience Cycle
• Lack of Environmental Scanning
• Sales Team clashes with the Marketing Department
• Recruiting the Wrong Salespeople
• Incorrect Account Management

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Salespeople Types

• Hunters or Farmers?
• Sell Tangibles or Intangibles?

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• Sin Solution 7
• Objectives are strategically meaningless
• Oblivious of your Key Success Factors
• Not mapping out the Customer Experience Cycle
• Lack of Environmental Scanning
• Sales Team clashes with the Marketing Department
• Recruiting the wrong Salespeople
• Incorrect Account Management

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Routes to Market
Three Types of Relationships All
require Trust
High use
High-end Solutions K.A.M (Key Accounts
Management)
Direct Sales (Face-to-Face)
Low cost Sales R.A.M (Remote Accounts
Management)
Dominant Go-to-market has been Face-to-Face
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Routes to Market
High-end Solutions K.A.M (Key Accounts
Management)
Was Direct Sales
(Face-to-Face)
Low cost Sales R.A.M (Remote Accounts
Management)
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Call UPSTAIRS, NOT DOWN
Key Account
Your Firm
EXCO
Excellent
Middle Management
KA Manager
Bad
Junior Management
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Bow tie Approach
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EXCO
EXCO
Key Account Manager
Middle
Middle
Middle
Junior Management
Junior Management
Key Account (KA)
Key Supplier
Middle
Junior Management
EXCO
Middle
EXCO
Junior Management
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Summary!
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THANK YOU Soushiant bazaar.
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QUESTIONS?
Ian Rheeder ian_at_markitects.co.za www.markitects.co
.za
THANK YOU!