Added Value

Have you ever considered how to provide your customers with additional value beyond the value offered by your product or service?   Obviously, your product or service provides your customers with certain “expected” benefits.  If you are a soft drink, your product “refreshes.”   If you sell autos, your car gets your  customers from one place to another.  Same if you are an airline. 

Product differentiation can be achieved any number of ways.  But, in addition to your product’s point of difference, have you considered providing your customers with additional added value?   Let’s look at some examples.  Starbucks sells coffee… but they also provide a comfortable and friendly atmosphere including web access.  Jet Blue provides airline seats…but they also provide in-flight TV and movies as well as a “fun” atmosphere.  BMW sells cars…. but they also give you free service.   And, Lexus will pick up your car when you need service.

Added value can also include on-going information regarding how to enhance the product you have already purchased as well as “unexpected gifts” as I have mentioned in a previous post.

So, let your imagination run wild… what added value things can you provide your customers that they would really appreciate and will help you build loyalty?

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Is Marketing Local?

If real estate is local, can marketing products be local as well?  Yes companies do market their products on a local basis.  But to what extent and how important is “local” marketing.   Many Companies use local marketing funds to support local events.  Beer distributors sponsor sporting events, fast food companies sponsor local charities, etc.  But, are these really effective?  How local is local?

Ultimately the key questions to try to answer are:  1.  Can the marketing activity pay out from a financial point of view?;  and 2.  Should the company support a local event to be a good corporate citizen?

Many times, local events are conducted without the critical need to pay out and are really done to fulfill a Company’s need to be a good corporate citizen.  It’s called giving back to the local community.

On a separate vein, why can’t Companies offer different versions of their products to satisfy local desires/needs.  Yes, I know this raises all sorts of manufacturing and distribution issues.  But it is already being done in some industries such as fast food.  Why not in other industries?   Why can’t Coke have a different formula in different markets if it better satisfies the tastes of its customers?  Why can’t Chevy have different options in different markets?  By the way, some car companies do this already?  Ever buy/lease a car in Florida and get sun screens?

Clearly, products do vary by country… why not locally?

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Service, Service, Service

In real estate it’s location, location, location.  In my opinion, in the 21st century, for most businesses it’s service, service, service.   Are there examples of great service.  You bet.  Unfortunately, many of these examples are not in the good old USA.

Let me give you two examples.  My wife & I were staying in Hong Kong.  We just got off the elevator on our hotel floor.  We began to walk to our room when a bell hop saw us and immediately ran to our room to open our door and ask us if we needed anything.  Same hotel…. we were having dinner and I began to get up to go to the rest room.  Before I could fully stand, a waiter was behind me pulling my chair out and then escorting me to the rest room.  Talk about service!

In the US the good examples of outstanding service include Nordstroms. Where they literally will do anything for you.  Another great example is a local men’s clothing store.  I called them one day because I needed a new suit and a few sports coats.  The salesman who I had used in the past came to my office that day and brought me a selection of suits and sports coats to choose from.   Once I selected what I wanted, a tailor from the store returned the next day to fit everything.  And a few days later, the salesman delivered my order.  

I  sometimes call this the WOW factor.  Just think if you were treated this way everywhere you went.  Talk about building loyalty!   Can you create the WOW factor in your business.  I believe any business can.  Just surprise your customers/consumers with extra and unexpected service.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Opportunity Knocks

I believe if you have the instincts of an entrepreneur, you can find opportunities everywhere if you just Look & Listen.   Opportunities are all around you.  Just think about your daily life.  What would you like that you cannot get?  What service would you love to have  is someone would only provide it?  What business processes do you see which could be improved in a major way? 

Entrepreneurs are very creative people by and large.  They see business opportunities where most do not.  Why?  Because their minds are constantly searching for new business concepts.  They use their daily experiences and those of others to seek new business concepts.  Or they see how something currently being  done can be done much better.

E-bay started with people trading PEZ candy dispensers on line.  Someone saw that as being an opportunity to sell and/or trade anything.   Amazon simply took a bookstore and eliminated the bricks and morter by moving it on line.  Bringing cell phones to countries without the infrastructure of land lines.  Selling cruise ships as residences.  Creating time shares.  Starting an airline which delivers small packages (FEDEX).   All of these were concepts which grew out of a customer/consumer need which was not being met. 

So, look around you and talk to people.  See what unmet needs they have.  Can you create a business based upon meeting those needs in a unique and protectable way? 

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

No Guts, No Glory

How inquisitive are you in your business dealings?  Do you always ask the question “WHY?”   When someone proposes a plan do you question every aspect of that plan?  Do you think about the consequences of  the plan from a profitability point of view?  From a competitive point of view?  From a distribution point of view?

Often, entrepreneurs in particular seem to “jump” on a new idea without really thinking it through.   They tend to think tactically and not strategically.  They see an opportunity to make money (they think) and they are ready to put resources (people and money) behind the idea.  They spend little time analyzing the idea including possible competitors, whether the idea has a sustainable and meaningful point of difference, what it will take to be successful, etc.  So, they will fail more often then they will succeed.

This is not to say that one does not have  to move quickly to seize an opportunity when/if it presents itself.  But you must be prepared to act based upon facts.  Remember, no matter who you are your resources are limited.  Be sure you place your bets carefully.  But, do place your bets.  No  guts, no glory!

Rich

Bizvice:  Strategy, Marketing  & Entrepreneurship

“It’s Hard To Fly Like An Eagle When You Work With Turkeys”

If you own your own business or you are in upper management, one of the most important jobs you have is to surround yourself with the absolute best and smartest people you can find.  Smart, motivated people allow you and your Company to “Fly Like Eagles.”   Frankly, even less experienced smart motivated people are better then more experienced but “average” non-motivated people.

So, finding really great people to work with you is not easy.  It requires discipline and an exhaustive recruiting process.  Indeed, finding really great people will take longer then finding “average” people.  But, in the long-run it is well worth the effort.

What about motivation.  What really motivates people to work hard and smart?  Is it money?  Titles?  Ego?  The desire to succeed?  Frankly it is all of these and more.  To really motivate people get them involved in the day to day decisions that effect their business lives.  Try to lay out a clear strategy and plan for the Company and for their area of responsibility.  Then tie their compensation into their performance coupled with the Company’s performance.  Be sure this is clear and easy to understand.  Also, be sure it is sufficient to be motivating.  Offering someone a few hundred dollar bonus on a six figure salary is obviously not motivating.  But if they could “double’ their salary it would obviously be highly motivating if the goals were realistic and agreed to in advance;  And, if the results were measurable.

So, find the best people and really motivate them and you will  indeed “fly like and eagle.”  AND have a Happy Thanksgiving!

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Communications-Business vs Consumers

When you examine how things have changed over the past few decades you have to be amazed.  This is particularily true in the world of business communications.  Just think of e-mail, cell phones, voice mail, internet, etc., versus where we were just 20 years or so ago.  But, have things really changed in the world of business to consumer communications?   Of course we have the Internet and a wealth of new ways to advertise to targeted groups.  And we have more magazines then one could ever read.  On top of that we have hundreds of cable and satellite TV stations.  And, now satellite radio.   But beyond the magnitude of these offerings, what has really changed beyond the Internet?

I would submit to you that little has changed.  Yes, we have been better at targeting specific groups via both TV, Radio, and Print.  And, yes, the Internet gives us even a greater chance to segment.  But how much interactive communications between Companies and thier customers have really taken place on a regular basis.

Did you ever have a question or problem with a product, go to its web site and tried to find out how to talk to a live person (who does not live  in India)?   What a frustrating experience.  What about when you finally find a phone number you get caught up in automated answering “hell”… If you want x push 2, if you want y push, 3, etc., etc., etc.   What a mess!!!!   Sometimes we just want to talk to a human being!!!!!

So, I hope companies get with it and realize that communicating with customers is a key to loyalty!

 Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Retailer-Friend or Foe

In today’s environment if you distribute your product(s) through retailers should you consider them friends or foes?   I would submit to you that they are neither.  Rather they should be your partner.  Without either of you your products would not get sold.  You need to market and manufacture the product and these partners need to market and sell your products.

Proctor and Gamble, arguably the best marketing company in the world, realized this partnership arrangement was necessary years ago.  They even established an office in Bentonville, Ark the home of Wal Mart.  This was done well before any other manufacturer.  This office has worked closely with Wal Mart in almost every business area effecting both P&G and Wal Mart.  Now dozens of Companies have offices in Bentonville.

A more recent example is Pepsico.  Pepsi is introducing a product called Fuelosophy in Whole Food stores.  This product will not mention Pepsico in its packaging and is targeted specifically to the Whole Foods health conscience customer.  So, here is an example where a major manufacturer has actually developed a product specifically to be distributed at a “partner” retailer. 

So, how do you become partners with your customers?   Ask them.  They will tell you what you need to do better and how you can work together so you both benefit.  You are in this together… so, why not “combine” forces and really make your relationship productive?

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Ask for the order

Every business is in the sales business.  All the strategic planning, marketing planning and tactical executions lead up to a hopeful sale of your product or service.  But, where the “rubber meets the road” is closing the deal.  So, you need to learn to ask for the order.

This is particularly true in the retail business.  When a customer comes into a retail store, the really great sales people not only ask how they can help and do everything they can to answer any and all questions, they ask for the order.   This is also true in the services business.  At the end of every presentation, ask for the order.  The worst that can happen is you get  turned down.  But if you don’t ask, you will certainly not get the order.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship

Milk or Invest

Every Company should view each of their products and businesses as either growth opportunities or “margin” opportunities.  Every product/service has a life cycle.  They launch, grow, then stabilize and sometimes die.  The trick is to know  where you are in this cycle.  Obviously, you do not want to be investing in a brand that is going out of business.  On the other hand, you may be able to revitalize a brand with a reformulation or a change it its benefits.  This would obviously call for an investment strategy, at least in the short term.

So, how do you know when to invest versus milk?  Investment dollars can be justified as the product builds awareness and trial.  As the customer base of a product stabilizes and less people become “triers” and more become regular users, it is a good time to consider cutting back on spending and trying to maintain the business. 

Then as the business starts to lose its loyal customer base and assuming no new initiatives are available to revitalize the brand, then a “milk” strategy is probably appropriate.

In any company with multiple products,  the trick is to identify the proper mix for all products since investing in everything is simply not practical.  Older products typically are viewed as the “cash cows” of the business where margin is maximized.  Newer products are the investment vehicles for the future hopefully they themselves turning into the long-term cash cows.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship