Intrinsic Strategy

It’s inevitable that, during the slow crawl up through economic recovery, companies will have good patches and bad patches. What they shouldn’t do is succumb to the natural corporate temptation to share only good news.

This might seem counter intuitive to traditionalists: Share bad news with customers? But that will hurt our image, our customers’ trust in us and maybe our business. But what these traditionalists forget is we live in a century with customers who both distrust typical marketing messages … and aren’t afraid to use Twitter.

I think of this as my fifth and final myth of marketing coming out of a downturn: Communicate only good news. And it’s one I discussed with The Bellevue Collection Merchants last month.

Let’s be realistic, for two reasons. First: As firms get back on their feet there will be missteps. Customers know this, and expect more transparency. People expect to hear bad news when coming out of bad times, especially if they know an individual industry sector has been troubled. If all they hear instead is happy-fluffy-bunny marketing speak, they will either be suspicious and wonder what you’re hiding, or they may wonder if you’re clueless about the true state of affairs. That’s not a good either-or to be in the middle of. (more…)

Sometimes, I get a blank look when I explain to people that I do marketing “strategy.” It’s the blank look usually reserved for people who say they do what the voices tell them. Or the one seen while others figure out how to politely ask if you do anything productive.

Finally, they’ll sometimes say, “But we’re in a downturn. I just care about sales.”

The last time I wrote about the role of strategy was during the last downturn, seven years ago. And there’s nothing like being in a downturn, even if it’s supposedly in the rear-view mirror, that illustrates why strategy — a clear, well-thought out strategy — is important. In short, strategy means knowing where your business wants to be after the downturn. I suspect some of the best moves being made right now are from companies thinking long-term, so they can take advantage of short-term opportunities.

I took some time to explain why earlier this year at a Bellevue Chamber of Commerce talk on the myths of marketing. Having a marketing strategy — which is a core component of any business strategy — can be as simple as taking the time and thought to understand four C’s: (more…)

Beware the familiar-sounding name.

Over the years I’ve been involved in a number of projects to name products, services and companies. And these projects can go pear-shaped in ways almost too numerous to contemplate, from endless free-for-all brainstorming to unilateral executive decisions  — only to discover later the exec subconsciously found a choice comfortingly appropriate because it was the name of a largely forgotten competitive product.

So I’ve developed a series of steps to avoid the most egregious mistakes while still coming up with a solid name. And note that I don’t say the perfect name. No name is perfect out of the gate; it has to be used consistently for a product, service or company that actually delivers what is promised.

How do you get started? Here’s the short four-part version. (more…)

A downturn is no time to stop managing your brand. If a strong brand allows you to charge a premium in good times, that perception of value in bad times will help you recover when good times return.

But only if the brand itself is maintained throughout.

Going into my talk on the myths of marketing at the Bellevue Chamber, I’d just come off of several anecdotal exchanges about whether a company should even bother to think about brand now, and instead focus only on price and sales. “Who cares whether it properly carries our brand,” one paraphrased back-and-forth went with a high-level executive. “The customer will figure it out.”

Setting aside the hubris inherent in forcing the customer – the paying customer – to do your corporate identification work for you, this illustrates clearly my third myth of marketing in a downturn: The brand makes no difference; only sales do. Or, put another way, leave branding and brand maintenance to better times.

Certainly the financial benefits of having a strong brand aren’t in dispute. (more…)

A few thoughts about customer service and its role during a downturn. In short, customer service becomes marketing. Or rather, its absence becomes an opening for your competitors’ marketing.

Customer service seems like an obvious area to cut when times are hard. But that’s a myth (and the second one I explored in my Bellevue Chamber talk). What companies should do, if they’re cutting marketing aimed at customer acquisition – and as I noted earlier, they should re-balance before they reduce – is protect the money spent on customer service.

Why? Because customers with money in a downturn expect to be treated better.

An excellent piece in BusinessWeek earlier this year cited the cautionary tale of Hertz. In January, Hertz  laid off 4,000 people, many of them front-line workers. The result? Customers in Hertz’ loyalty program didn’t have cars waiting for them as arranged, or couldn’t quickly return cars before catching flights. (more…)

In a down economy, myths proliferate.  And one is to immediately reduce marketing spending to conserve cash. Because, the myth goes, in a down economy customers know you’ll market less.

Now, you might expect someone who designs marketing strategies to call this a “myth” (as, I suspect, did the audience at the Bellevue Chamber of Commerce Business Lunch). But no business should automatically reduce — not unless it thinks about re-balancing, first.

The reality is businesses have to keep on marketing. During a downturn, if customers stop hearing from you they start to wonder if you’re in trouble financially … or if you still exist. Your company or product name needs to remain visible.

Re-balancing your marketing portfolio is the first step. By that, I mean review all of your spending and determine which of your marketing expenditures reach your target audience the most cost effectively. Then focus on stuff that’s either extremely targeted. Or extremely cheap. (more…)

Washington’s Innovation Summit 2009 hosted a Who’s Who of leaders across various industries and government discussing the importance of innovation — and how to spur, nurture and maintain it.

Now, videos of the plenary sessions are available online, from “intrapreneur” coiner Gifford Pinchot’s fascinating discourse to McKinstry CEO Dean Allen’s conversation with Puget Sound Business Journal’s George Erb. And many sessions in between, including my own brief interview with Rogers Weed (former Microsoft VP and new director of the State of Washington Department of Community, Trade and Economic Development) and Mike Schwenk (VP and director of technology deployment at Pacific Northwest National Laboratory).

Find the program and video links here (look for the phrase “watch video”), or directly go to the Weed/Schwenk “Reflections on Innovation” video here.

Incidentally, all the lame moderator jokes have survived the transition to video. Unfortunately.

Interested in what Amazon.com, Google and Rochester Institute of Technology’s Open Publishing Lab think about the future of learning platforms for students and teachers? The Association of Educational Publishers has posted a podcast (or an “audiocast,” since there’s no subscription) to the AEP Summit general session I moderated in June, “Learning Platforms for the 21st Century and Beyond.”

In it, Jeff Keltner of Google (responsible for Google Apps in the education market), Laura Porco of Amazon.com (director of Kindle Books), and Michael Riordin of the Rochester Institute of Technology (co-director of the Open Publishing Lab) discuss and debate what technologies and platforms education companies need to consider now.

After all, anyone who is 32 years old or younger — student, teacher, or administrator — has never known life without the relatively inexpensive, mass-produced personal computer.  The Apple II was released in 1977, and the original IBM PC in 1981. Even the Web browser is Sweet Sixteen.

This panel was PowerPoint-free, so it’s 1:16 of pure discussion. Download the audiocast as an MP3 file, and check out a session description and bios of the panelists. An official summary was added later at the AEP blog. You’ll also find audiocasts and presentation files for other sessions of interest at what was, overall, a great AEP Summit. A once-live Twitter stream @FrankCatalano (#AEP09 or #AEP) is here.

The Software and Information Industry Association has posted a summary of the Ed Tech Industry Summit session on embedded assessment in digital learning products. You can find it, as a PDF, here.

The panelists kindly put up with my PowerPoint-free moderating approach and turned in a lively and frequently illuminating discussion. Thanks to Bob Ginn, Century Consultants; Sue Koch, AutoSkill; and Mike Patterson, Curriculum Advantage.

Those interested in notes from other ETIS sessions can find them posted on the SIIA ETIS Web site. A Twitter stream @FrankCatalano (#ETIS or #SIIA) is here.

Over at TechFlash, I’ve contributed a commentary on the potential value – even for pure Internet companies which produce only digital products – in having a physical world presence.

For more than 15 years, brick-and-mortar businesses have been creating Internet presences for both marketing and e-commerce. But there seems to have been an unspoken hesitancy to promote moves in the other direction, from Web-only to Web-plus-cinder block.

Underlying the hesitancy may be a false assumption that the Internet is the ultimate destination for all business, and that a physical presence is a sign of the past. No company, it’s implied, should go out of its way to create a real-world presence if the business was spawned and is doing fine on the Web.

Yet it does pay off.  (more…)