What’s Value To You?

Your Business Plan probably uses the words ‘provide high perceived value’ somewhere.  ‘Perceived’ by who – you, your customer, your customer’s neighbor?  Details, right?  Truth is, claiming ‘perceived value’ is a cop-out when used vaguely in a business plan. All products that sell have some perceived value – otherwise no one would cough up the cash to make a purchase.  “High perceived value” could indicate your product is worth a premium price (things a lot of owners like) or is priced low compared to its value (things owners hate) or is fabulous and priced completely unrealistically (Things customers and sales folk hate). How many plans actually get approved with a value statement like, “Provide the lowest cost for the fewest features at the lowest quality that our customer will accept.” There are a number of companies successfully taking advantage of this strategy, but how many managers would admit to it?  Usually claiming we … Continue reading

Dump Your Marketing Department

Your marketing budget has been cut 50%.  So what. Do the company a favor and figure out a way to get rid of it all together. That may be a bit rough, but truth is when the boss says cut costs the accountant aims for the Marcom budget cause it’s easy and below the line. Most accountants are also very well versed in the old  Wanamaker quote about 50% of your advertising budget being waisted…just don’t know which 50%, and still believe it. (As an old Hallmark Cards guy I have a soft spot in my heart for Wanamaker, he did fund the campaign for Mother’s Day after all. But if your marketing budget/ad budget is 50% waisted in this day and age, then you’ve screwed up.)  Unfortunately in many organizations departmentalization created ‘marketing departments’ that really only focus on communication with suppliers and customers.  The marketing professionals scattered throughout the organization … Continue reading

Rethinking Budget Cuts

The nice thing about a recession is that it reminds you how amazing capitalism can be.  Even though most of us are hurting pretty badly —budgets being cut, loans being called, sales dropping — there are companies out there doing well.  Thriving even. Why bring up the lucky few when talking about budget cuts that are hitting most of us?  As a reminder that opportunity always exists even when the economy seems to be completely against you. Even a Budget Cut can be an opportunity. Truth is, there is no need for marketing, business development, product innovation, customer relationships or anything else if your organization runs out of cash.  In today’s economy, the length of your runway (how long before cash runs out)  matters more than practically any other program you have. So, if cuts need to be made, make them quick, take care of people as best you can … Continue reading

Don’t Departmentalize Brand Promise

Strategy drives an organization.  This has become business gospel.  It has also led to pigeonholing management of ‘brand promise’ as a communication issue, rather than a key strategic lever that can drive process refinement throughout a company. Imagine getting a promise from someone you don’t know.  How valuable is the promise, what does it mean? You evaluate it based on factors such as the giver’s integrity, politics, past experience, corporate culture, and even the conditions under which it was made. A promise made anonymously, lightly or from someone unreliable doesn’t carry weight. Similarly, your brand is the summation of promises made to a consumer through previous use, contact, communication, word-of-mouth and possibly a bit of fantasy on their part. So ‘Brand Promise’ will not affect consumer opinion of your brand if your corporate culture, product attributes and service delivery don’t align with the promise. In other words: Brand-is-Promise and Promise-is-Brand.