MARKETING EXCELLENCE

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MARKETING EXCELLENCE

• Just what the heck is Marketing?
• How do you do it?
• And how do you do it right, so you can make lots
  and lots of money?

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Game Plan

• We have about two hours together
• I have a ton to cover will go pretty fast
• You can get copies of all of the PowerPoint
  slides at www.JohnSpence.com
• Look for key points action items
• Ask questions
• I will try to leave 15 minutes at the end for
  QA
• Have fun!!!

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About this Presentation

• Based on my very favorite ideas and tools from my
  top 35 marketing books (6,000 pages).
• Taken from the very latest trends in marketing
  and advertising.
• Drawn from our work with hundreds of companies
  from local firms here in Gainesville and around
  Florida to projects for ATT, Burger King,
  American Express, Merrill Lynch, AOL, Allstate,
  Kinko's, GE, IBM, HP, Esso, Disney, Alltel,
  Verizon, Ford

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Lets Start With What Marketing Is NOT

• Marketing is not sales
• Marketing is not advertising
• Marketing is not fancy brochures
• Marketing is not direct mail or telemarketing
• Marketing is not a stage for humor
• Marketing is not an invitation to be clever
• Marketing is not a miracle worker
• Marketing is not to be taken lightly!

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MarketingDefined

• Marketing is the process of planning and
  executing the conception, pricing, promotion and
  distribution of ideas, goods and services to
  create exchanges that satisfy individual and
  organizational goals (American Marketing
  Association).
• Marketing is how you sell more stuff, to more
  people, more often, for the highest reasonable
  price, for as long as you possibly can (Sergio
  Zyman Global Marketing Director Coca-Cola).

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Marketing The BIG Picture
Advertising Consumer Industry B2B Print Broadcast
Outdoor Internet POP Packaging Direct Mail
Marketing Analysis Research Surveying Segmentatio
n Targeting Competition Replacements Substitutes N
iche I.D. Strategy Planning 4-Ps Product Price
Place Promotion
Branding Promise Values Image Character Look Feel
Emotions Personality Essence Position Differentiat
ion Affiliations Icons Imagery
Sales Retail Wholesale Distributors Reps Direct Ca
talog Internet Local Regional National Global
Product Development Features Attributes Style Desi
gn Innovation Uniqueness Applications Adaptations
Add-ons Unit Cost Manufacturing Scalability
Public Relations Press Releases Events Articles Wh
ite Papers Sponsorships Charity
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Now that you know what marketing is

• Lets take a little test!

Key you must be brutally honest in answering
these questions. The fundamental rule is NO
GUESSING
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Confidence Level

• Your score represents a rough estimate of the
  level of confidence you should have in how
  effective your marketing /advertising might be.
• Typically, you should drop your score by 5-8
  points to adjust for wishful thinking.
• A score of less than 75 should be cause for you
  to take a serious look at your marketing and
  advertising programs. Below 50 is a major
  warning sign.

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How to think about marketing

• Marketing should be an organizationally
  integrated process.
• You need to identify innovative approaches that
  will command the attention of the marketplace.
• Do not engage in any marketing efforts that fail
  to produce a positive return on the money
  invested.
• Be persistent, relentless, creative,
  counterintuitive, challenging, aggressive, bold,
  strategic and tactical.

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But John

• You dont understand, we just have a simple
  product that we want to sell to anyone who could
  possibly want to buy it.
• It is not that big of a deal, just make a slick
  brochure, take out a few ads and sell some
  products.
• Why are you making such a production out of this?

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Your Product is MUCH more than just a product
Quality Perceptions
Customer Service
Value Perceptions
Corporate Image
Add-ons
Brand
Finance
Price
Positioning
Core Product
Warranties
Quality
Design
Reputation
Delivery
Features
Guarantees
After Sales Service
Intangibles
User Recommendations
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Example Factors Affecting Price
Corporate Objectives
Now lets talk about Design Sales PR
Distribution Manufacturing Competitive
Positioning Brand / line Extensions Regulation
Legal Constraints
Company Market Profile
The Pricing Plan
Competitors
COGs
Consumer Attitudes
Potential Competitors
Substitutes
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Example Possible Positioning Strategies

• Attribute Positioning Tallest hotel, oldest beer
  company.
• Benefit Positioning Tide cleans better, Duracell
  lasts longer, Bounty is the quickerpicker-upper.
• Use / Application Positioning Nike is best for
  running, Rebook is best for Aerobics, Converse is
  for basketball.
• User Positioning Apple is for graphic design,
  QuickBooks for small companies.
• Competitor Positioning 7 UP is the un-cola.
• Category Positioning Xerox, Kleenex, Kodak.
• Quality / Price Positioning Rolex vs. Swatch

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Example Brand Characteristics

• Sensory
• Visual
• Smell, Aroma, Scent
• Touch
• Sound
• Comfort
• Understanding / Education
• The Leader / Innovator
• Endurance / Dependability
• Craftsmanship
• Quality
• Natural

• Pure
• Wholesome
• Special / Personalized
• Customized
• Service
• Speed
• Knowledgeable
• Hassle-free
• Convenient
• Guaranteed
• Consistent
• Versatility
• Ingredients / Components

• The Original / The First
• Value
• Price
• Time
• Feelings
• Personality
• Ego
• Humor
• Design
• Look
• Style
• Beauty

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Marketing is all about

• Making certain that your business is perceived in
  a strongly compelling manner that provides a
  powerful competitive advantage and an
  overwhelming motivation to purchase your products
  and services.

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Three Levels of Impact

• Okay
• This is basically what I expected.
• Thats Nice
• This is a little more than I expected.
• Holy Shit!!!!!
• This is amazing I never expected this!

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Key Point

• What you think, feel, assume and guess about
  marketing and advertising your product or service
  --- is COMPLETELY IRRELEVANT!
• The only person whos opinion counts is
  the CUSTOMER!

But how do you find out what they are really
thinking?
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What do you really need to know?

• Who are your top 3 customer segments in as much
  detail as possible.
• Retail age, sex, race, education, location,
  hobbies, reading / TV / Radio preferences, self
  image, aspirations, spending habits, income,
  credit, other product preferences, brand
  loyalties, fears, desires, hopes, needs, wants,
  current usage, disposable income
• B2B size, structure, competitors, product lines,
  technology, distribution, history, long-term
  strategies, industry trends, regulation,
  customers, sales, marketing strategy, needs,
  requirements, specs

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The big customer questions

• What do they think and feel about your product?
• Why, specifically, do they buy your product?
• What do they think and feel about the
  competition?
• Why would they buy your competitors products?
• What products would they substitute / replace?
• What would they like that you are not giving them
  now?
• What would make them completely loyal to your
  product?
• What are the key images, words, ideas that
  trigger them?
• What are the major focuses of their life /
  business?

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Who are they? What do they want?

• Industry research
• Demographic research
• Psychographic research
• Surveys / Questionnaires
• Focus groups
• CRM / Data Mining
• Mystery Shopping
• Benchmarking
• Preferred Customer Programs
• Beta Testers

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Once you have a high confidence level

• On exactly what your target market thinks, feels
  and perceives about your product and your
  competitors products
• What they want, need, and desire.
• What is truly important to them

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Build The Brand

• The brand is the total set of feelings,
  expectations, associations and images that make
  up your product offerings.
• It is an unwritten contract of intrinsic value
• It is a set of consistent promises that imply
  trust, honesty and integrity.
• It is a distinguishing name and/or symbol
  intended to identify and differentiate your
  products.
• It is based on the entirety of your enterprise.

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A nice quote about branding

• Branding is more than logo design, a clever tag
  line, product placement or advertising. Its the
  sum total of what people think and feel when they
  encounter a product or company. Boil branding
  down and ultimately its about making emotional
  connections. People want to belong to something,
  they want to be a part of it they want to
  believe in something.
• Eric Scott of Wolff Olins

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The Flycaster Brand Matrix
85 of consumers switched brands when the
product did not deliver on the Brand Promise
Brand Promise
Guiding Values
Product Truths
Character / Personality
Differentiating Benefits
Brand Essence
Brand Platform
Advertising
Public Relations
Target Market
Competitive Positioning
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To be effective, your brand MUST

• Be Clear, Concise, Consistent and Compelling
• Tell a powerful, vivid, enthralling story.
• Excite, delight, surprise, dazzle or inform
• Be unique, special, different and important
• Enliven the senses, speak to the soul, interest
  the mind
• Stand out, be seen, demand to be heard.
• Tell the truth.
• Deliver on the Brand Promise!

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Lets Look At Some Successful Brands

• Volvo
• Avis is number ___ but they
• Pepsi is the drink of
• A Diamond is
• Polo Ralph Lauren represents
• Nike says
• The Ritz Carlton represents

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A few other Brand examples
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Brand Extension
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Logic Emotion

• The brand must appeal to the heart and the head
• Facts, specifications, features, design elements,
  cost, color, speed
• Emotion, excitement, affiliation, character,
  aspirations, beauty, love, fun, joy, relaxation,
  safety

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Once the Brand is Established

• It is now time to create a FULLY INTEGRATED
  corporate communications program.
• All aspects of the business MUST support and
  enhance the Brand and deliver on the Brand
  Promise
• Advertising print, broadcast, outdoor, web,
  trade
• Public Relations press releases, events,
  sponsorships
• Sales direct, retail, wholesale, distributors,
  reps, catalog
• Customer Service pre, during and post sale
  services

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Now on to Advertising(which everyone thinks is
marketing)

• Advertising is the delivery vehicle for the Brand
  Promise to the target customer.
• Advertising sets expectations.
• Advertising is VERY expensive (if you dont do
  your marketing homework)
• NOT advertising is much, much more costly.
• Advertising has only one goal sell more stuff!

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My Favorite Advertising Acronym

• A
• I
• D
• A

ttention
nterest
esire
ction
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This sums it up nicely

• After all, what is a commercial in 2003 expected
  to to do? It must capture your attention, and
  hold it and be memorable without abrasiveness,
  dishonesty or disrespect. It must clearly explain
  about the product benefits and advance the brand
  image. And it must be carefully crafted around
  the sensibilities of the target audience. A good
  ad is like a great novel it should be
  irresistible to those that encounter it and go
  straight to the hearts and minds of those you are
  trying to reach.
• Bob Garfield Editor Advertising Age Magazine
  10/27/2003

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Public Relations(free advertisingor is it?)

• Press releases, press conferences, special
  events, community involvement,charity
  involvement, interviews, white papers, articles,
  expert panels.
• It really has to be real news --- really!
• It is all about relationships and strong
  credibility
• It is also expensive but can get a high ROI

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In Summary

• Marketing is absolutely critical to the success
  of your company, because it is the key driver of
  all communications, advertising, public relations
  and most importantlysales!
• Marketing is complex, challenging and costly. But
  not marketing is MUCH more expensive because
  then you are just guessing.
• All of your marketing, advertising and corporate
  communications must be clear, consistent and
  compelling.
• The ultimate goal of marketing is to sell more
  stuff, to more people, more often, at the highest
  reasonable price, for as long as you can!

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Thank You
Questions?

• You can download a copy of this presentation,
  either as a PowerPoint or PDF file at
• www.JohnSpence.com
• It will be in the Resources / Slides section,
  under the heading Marketing Excellence