The 6 "p"s of marketing - open for debate

OK - here's a topic that's surely up for debate: I believe there are 6 "p"s of marketing.

Those of us that studied marketing in university/college some ____ years ago learned the 4 "p"s of marketing: Product | Pricing | Promotions | Place.

The dominance of the internet in the marketing mix has expanded that list to 6, in my opinion. There are articles that talk about 4, 5, 6, 7 and even 8 "p"s, and the words that start with "p" aren't always the same. I've seen 'People' and 'Process' included in many lists, but I don't believe they contribute to the act of creating demand (the definition of marketing) as much as the other categories (open to debate!). I've also seen 'Physical Evidence', described (by valuebasedmanagement.net) as 'the ability and environment in which the service is delivered, both tangible goods that help to communicate and perform the service and intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers.' ... HUH?!?!?

Here's my list:

1. Product (How do you shape your offering to match consumer needs and build demand?)
2. Pricing (How does your pricing strategy support your positioning and generate demand?)
3. Place (Where do you need to be to reach your audience?)
4. Promotions (How do you tell people what you have to offer?)
5. (new) Positioning (What is your reputation? How do people describe your company? Why would anyone buy from you?)
6. (new) Conversations (Are you participating in the conversations that are taking place about you and your industry?)

OK, that last one doesn't start with "p", but I couldn't find an applicable and adequately descriptive word that did. The best I could come up with is "People Talking". Yep, I thought it was lame too. We've got 5 "p"s and a "c". Deal with it.

Social media, in case you were curious, fits clearly into the Conversations category. In fact, it was the catalyst in creating the category. Social media participation is just as important to the marketing mix as promotions or anything else. Deal with it. Embrace it.

LESSON FOR SMALL BUSINESS MARKETERS

As you create a marketing plan for your business, or as you make decisions to help build interest and demand, be sure to consider all 6 marketing categories. Promotions alone, which many businesses confuse for marketing, is insufficient for driving significant demand. You need to be creative and intentional in all 6 categories to be giving marketing the attention it deserves.

It also means you're that much more likely to build demand for your products and services, and what is there that's more important than that?

YOUR TURN

How is your list different, if at all?

Getting less than you paid for, courtesy Starbucks

I have written before about the damage that can be done to your brand reputation by failing to meet customer expectations. Well, Starbucks, your turn.

The other day I bought one of their fruit and yogurt parfaits. This is what it looked like, before I took a single bite. No, this is not Photoshopped - it IS more than half EMPTY.

And I paid $3.95 plus tax for about 5 spoonfuls of yogurt and fruit.

Now, I know that they are positioning themselves as a premium brand with quality products and, subsequently, higher prices. I get that. But this is a clear example of the brand's inability to keep the promise they made to the consumer (this isn't the only lame parfait I've had). I expect a quality product. They charge more for their coffee than Tim Hortons does because it's better. This should be a better parfait than Tim Hortons', but it ISN'T.

My belief (created by their branding efforts) that they offer a premium product has been contradicted by the quality of the product itself. That's Damaging Your Brand, 101.

Think of it this way: If every BMW you bought only went as fast as a Kia, would you believe that they are the "ultimate driving machine"? Would you pay three times the price? Didn't think so.

TAKEAWAY FOR YOU AND YOUR BUSINESS:

1. If you haven't already, make a clear brand promise to your customers.
2. Deliver on that promise with all that you do.
3. Listen to your customers and respond every time a customer's expectations have not been met.

Your turn: Any examples of the product not meeting the promise it set for itself?

Editor's note: Here's another bad example, this time courtesy Nutrition House.

CIBC fixes its direct mail program

A short while ago I posted a brief criticism of CIBC for sending me a direct mail package that tried to convince me to sign up for a card I already owned.

Well, just like McNain before it, CIBC has been influenced by the power and reach of my blog (what's the punctuation for sarcasm again?) and has dramatically improved its direct mail program.

As this photo attempts to show, they not only figured out that I already have the card, but they suggested I visit a LOCAL establishment (which is saying something, given that I live in a town of 33,000) to earn extra loyalty points.

So, it appears that their database and direct mail marketing staff has figured out exactly who owns what product, AND has established marketing partnerships in each cardholder's home town.

Now THAT'S direct / 1:1 marketing.

Marketers take note.


TAKEAWAYS FOR YOU:

1. If you don't have this level of detail about your clients, get it.
2. If you do have it / once you do get it, USE IT.

Burger King ad - do you like it?

In this ad, Burger King comes right out and admits they stole their new idea from an existing McDonald's product.



I like the honesty and creativity. I like the bravery. I like the fact that their sticking an idea out there and saying "deal with it". I like that they're trying to stick out from the crowd.

There are lots of reasons it's a terrible ideas as well (imagine you're BK's ad agency, and you decide to pitch an idea where you admit on TV that you stole an idea from McD's - oh, to be a fly on the wall), but I'm on the "like it" side.

You?


TAKEAWAY FOR YOU:

• In heavily competitive markets (anyone know one that isn't?), you have to give someone a reason to buy from you as opposed to your competition. BK took a stab at that by offering theirs for $1.
• Copycat product marketing is essentially admitting that you are lesser in some way than your competition. Just be aware of that and address the issue accordingly.

How NOT to ask your customers for their opinion

I received this request to fill out a customer survey the other day, and shockingly, I was NOT inspired to complete it.

I'm sure I don't need to explain why. Here is the invitation (I decided to disguise the company name as ABC):

To All Participants in ABC Program,

The ABC Board has been leading a strategic plan development process with the assistance of an external consultant who is very experienced in this area. At the 2009 AGM, the members identified some key areas of activity. Before moving forward, we would like to gather feedback from all levels within the ABC membership, from members, participants, supporters, and from administrators to volunteers. Linked are the key strategic issues identified by the membership and below is a link to the online survey.

http://www.abccompany.ca/strategic_direction_2010_en.pdf

http://www.surveymonkey.com/s/abccompany

Please respond to the survey by March 12, 2010

Thank you,

ABC Board of Directors

Oh gee, let me stop what I'm doing and take time out of my day to help you, with no indication of how it will help me. I know some companies expect that customers will simply be pleased to provide input for the sake of participating in the process, but there aren't many of those around!

Surveys are hard because you are asking people to spend a specific amount of time, and you want enough people to respond so that you have results that mean something.

In this particular case:

• They didn't tell me how long it would take
• They didn't tell me how I might benefit (do I get the results? improved service? anything?)
• They didn't express any gratitude for my participation or recognition of the value of my time
• They talked only about what they needed for them - completely one sided

Basically, they didn't do anything to inspire me to participate. Good luck!

And they mention that they are getting assistance from a consultant who is "very experienced in this area". If this survey request is any indication, that consultant either a) had no input on the survey request process, or b) has insufficient experience.

THE TAKEAWAY FOR YOU:

When you ask customers for their opinion:

1. Thank them in advance.
2. Recognize that their time is valuable.
3. Tell them how much of their time you need.
   
4. Recognize that their opinion matters.
5. Offer them something in exchange for their opinion (at least a summary of the results, maybe even something valuable, like an entry in a draw or a gift certificate).
6. Keep asking until you get a relatively statistically significant number of responses.
7. Follow up with them afterwards so they know their opinion was received, included and valued.

Uh oh. Someone at CIBC's in trouble about this direct mail...

Today I received a direct mail piece "inviting me to apply for a CIBC Aerogold VISA Infinite card".

Um, I already have one!

So, the obvious problem is that they completely wasted their money sending these mailers to existing cardholders. That's basically step number one when it comes to direct mail aimed at acquiring new customers: make sure you don't send it to existing customers! Direct mail 101 people. Huge oversight.

Here's the less obvious, but equally damaging problem: the impression I now have about CIBC. I've written a number of posts recently about the importance of strengthening your brand with your actions, not weakening it. This is, sadly, a clear example of how quickly you can damage your reputation. Many of the cardholders that received this in the mail will just quickly discard it and forget it, but many still will take note of the oversight and think poorly of the company that sent it.

This mismanagement of the corporate brand has less tangible, but significantly damaging implications. The next time I need to get a credit card, what recollections will I have about my experience with CIBC? Will it persuade me to consider a competitor's card? Don't know for sure, but we do know that significant damage has been done.

How to give yourself a BAD reputation

I talk a lot about the importance of effective brand management to my clients, because it's arguably the most important element of your corporate marketing.

Your brand is the collection of words, thoughts and impressions that pop into the consumers' mind when they hear your name. Everything you say or do reflects either positively or negatively on your brand. You could have the best advertising in the world but if your brand image is poor, you won't be successful.

Case in point: McDowell Ovens.

They make bread crumbs. At Sobey's at least, they have great shelf space which, for packaged goods companies, is one of the most important marketing strategies.

But look closely at the package: "For all your bread crumb uses."

Wow - what a revelation! Here I thought I should use bread crumbs for non-bread crumb uses! (that's sarcasm, in case you didn't catch it)

Packaging (and specifically, what you put on the package) is also a key marketing strategy for packaged goods companies. They had an opportunity to write anything they wanted on their package, and they chose that ineffectual statement. This packaging decision damages their brand. All the good they did for their brand by obtaining key shelf space is undone by their packaging laziness.

I bought a competitive brand.

THE TAKEAWAY FOR YOU:

The lesson for ALL businesses (packaged goods or otherwise): please, please, please look at ALL you do (from packaging to answering the phones) and consider whether you are enhancing or damaging your brand reputation.

HAVE YOUR SAY:

Any other examples of exceptionally poor or exceptionally effective packaging?

Avatar as an examination of marketing

According to BoxOfficeMojo, Avatar has grossed more than $1.4 BILLION, and counting! There is no definitive answer at the time of writing this, but production costs for the movie appear to be close to $300 million, and marketing costs close to $200 million.

So, here's a question (for which there is probably no answer):

How much would the movie gross if they had spent less on marketing? Or more on marketing? How much would the movie gross if they had spent less on production (presumably weakening the quality of the product)?

This is a very common question - one that we grapple with all the time. Will more marketing lead to enough sales to earn our money back? Is the product good enough on its own to be successful without extensive marketing?

And here's another thing business owners and marketers need to keep in mind: It's possible that the movie would have grossed, say, $1.25 billion with no marketing, putting them $50 million ahead of where they are now (saving $200 million on marketing but earning $150 million less). Would that mean the marketing was a waste? It's tempting to say yes, but think of all the awareness for the movie and for James Cameron and for Fox that was generated!


All marketing has benefits beyond its direct impact on sales.


Remember that as you consider investing in marketing.


Your turn: What's your guess about the box office sales with more (or less) spending on the product or on the marketing?

Auto industry ads continue to drive me crazy

The auto industry is notorious for stretching the boundaries of acceptable advertising practices.

From price wars among dealers from the same auto maker (see post) to price promises that aren't really promises (see post) to mice type that no one can possibly read (don't get me started!), this is a new low.

BMW (who otherwise does everything right if you ask me) is running a campaign to promote their 2010 323i. This ad CLEARLY promotes the 323i, and the 323i only. You can tell this by the headlines and copy, and they even go so far as to break down the lease rates for the 323i specifically.

But the image, which is predominant, is of the 335i. If you look closely (click image below to enlarge), there is a line of mice type (don't get me going!) that admits they are showing a picture of the 335i!! How can they be allowed to do that?! The 335i looks better, performs better, costs more, and has clearly different lease rates.

Now, the 323i is from the same family as the 335i, but that doesn't excuse this manipulative advertising practice.

They need to advertise more responsibly.

People that aren't car fanatics like me or that don't pay as much attention to advertising as I do would understandably go to the dealership looking for a car that looks like the 335i for the price of the 323i. Such a car does not exist. "Sorry consumer. But since you're here, why don't I put you into this more expensive car?" Oh, sorry, it's more like "What do I need to do to get you into this more expensive car?"

I know they're legally allowed to do this, but they shouldn't.

They're not the only perpetrators, but I just happen to be picking on them because they are advertising fairly heavily.

Product Management, PGA Tour style!

I'm a golf nut, for sure. I like the PGA Tour and as a golf fan, am paying particular attention to the playoffs right now.

As a marketer, however, I am also taking notice.

This is the third year the PGA Tour has had playoffs, and each year has had a different playoff structure. I was happy enough with the first one, but there was some criticism. To their credit, they made changes as a result. They could have, like many organizations would have, defended their decisions and done their best to minimize the negative impact of the criticism. But they didn't. They took the ideas of the players and fans and made adjustments to design a better "product".

Oh, and by the way, their decision to introduce a playoff in the first place was based on player and fan input.

BCS take notice.

My point here is so simple, yet so often overlooked in the interest of pride: Take input from your customers and stakeholders and make modifications to improve your product.

Don't be like college football.


Your turn: Think of example of companies that said: "I don't care what you think, we like the product the way we've designed it."

Your turn v2: Think of examples of companies that are truly listening to the market and making modifications accordingly.

And where do you think the New Coke / Coke Classic example fits?

Zellers sets a new standard for terrible

This is www.zellers.com...















So let's reflect on this for a minute...

• Approximately 95% of the space "above the fold" on the home page has nothing on it
• Approximately 75% of that space is just BLANK
• I can't find any sort of catalogue (just the recent flyer) or list of products they sell
• I can't buy anything online
• The home page seems to want to promote their specials, but they don't update it often enough (that Sung promo's been there for a WHILE)

Sure, maybe they want to drive shoppers to the physical store, but COME ON. You mean to tell me that you really don't want any business from the MILLIONS of people that shop online?

The reason I saw this in the first place is I am in the market for a new flat screen TV. Zellers has an electronics department. And TVs are a big ticket, big margin item!

No catalogue.

No ability to shop online.

I took my hundreds of dollars somewhere else.

Golf courses a dying breed

It has always been my contention that the golf course industry was saturated and that many were doomed to fail. I am starting to see that a bit in my area with some courses on the verge of shutting it down.

Then I saw this... (a Google Map of courses in the area)










...and all my suspicions were confirmed.

Q: How is your industry? Saturated? What are you doing to stand out?

Marketing question of the day

If you had to steal a customer from your competition, how would you do it?

The answer will reveal a LOT.

Try it.

And tell me what you came up with!

See? Market analysis pays off! Atta boy Hyundai!

An "atta boy" goes out to Hyundai today.

They have launched an "Assurance" program, which basically says that if you buy a Hyundai and then lose your job (within a year), you can give it back.

Imagine that!

So here's a company that truly took market analysis to heart. I can see it now - marketing people, agency people and executives sitting around a table begrudgingly reviewing the latest market trend analysis, and coming to the harsh realization that sales are down because people are worried about losing their jobs and being stuck with the car payment. But, instead of blaming company performance on market factors that seem beyond their control, they decided to negate the impact of that factor altogether!

Don't know if it will work, but a brilliant idea, I must say.

Make a good product, and put your name on it

Many of the companies that I work with claim, quite justifiably, to make the highest quality product on the market. They demonstrate this with references to quality assurance, craftsmanship, and so on. OK. Make sure you put your name on it!

I have a weekend travel bag that I have been using for easily 20 years. Not a rip in it. No wear and tear! Unbelievable. Many of the people I know have asked me where I got it or who made it. I couldn't tell you. There's no name on it!

Conversely, I have been riding the same mountain bike for easily 18 years or more. Many people have noticed (maybe they're telling me something...), and unlike the weekend bag, I CAN tell them who made it (TREK), because the name is right there in big red letters! Now, everyone that has noticed that I am riding a bike that has lasted forever has an impression that TREK bikes last forever!

Probably exactly what TREK wants them to think.

You may be saying that the product you make isn't suited for a brand name, but are you really sure about that? The best furniture in my home has the name printed on the inside of the drawers. You wouldn't put the brand name on the outside of furniture, but what's wrong with inside?

So if you make a product that you want people to believe will last forever, make sure it will, then put your name on it.

C'mon ESPN, you know better that that!

I'm a big fan of Rick Reilly, former Sports Illustrated and current ESPN columnist. I couldn't wait for his new book, Hate Mail from Cheerleaders, to hit book stores in Canada.

I was reading a post of his on ESPN.com, and noticed, right next to his column, an ad for Kenny Mane's book: An Incomplete and Inaccurate History of Sport.

Now maybe ESPN.com is to blame for not thinking of it, and maybe Sports Illustrated is to blame (publisher of Reilly's book) for not asking for it, but wouldn't you want to have an ad for the book written by the columnist next to the columnist's column?

If I'm reading Rick Reilly online, I'm a really captive audience for Rick Reilly's book. Not Kenny Mane's.

It's possible that ESPN.com wouldn't sell ad space to SI because SI has its online affiliation with CNN (sportsillustrated.cnn.com). But it would be in ESPN.com's best interest because click-throughs would go up, and better stats leads to better online ad sales, and more revenue. Plus, if you can demonstrate that kind of intuition when creating your online ad campaigns, you can pitch that attention to detail and advertiser focus to possible advertisers.

The point is, never stop thinking about possible cross-sell opportunities like this. Stay active in your marketing.

Would someone please sell me something!?

Fireworks! Canada Day weekend! You can feel the excitement in the air - people are buzzing, crowds are building... and we all sit there waiting.

There must have been a couple thousand people at the fireworks display in Tobermory this past July 1. The posters on the streetlight posts tell you to arrive at 9:30pm. We all show up at 9:00pm because we want the best seats. And the show doesn't start until 10:15pm. So what happens in the 75 minutes between when we all arrived and when the show begins? NOTHING!

Of all the retailers in town (the fireworks were held in the harbour - the centre of town), not one was open (except the bars), and not one tried to sell me anything.

How hard would it be for the local BeaverTails (to die for!) franchise to send someone around with one of those trays that you can carry around your neck (like the popcorn guy at hockey games) selling ready-made BeaverTails for $5 each? They would have sold 1,000!

How hard would it be for the Fish and Chip Place (yep, that's the name of it, and I think it's a good one for that matter) to stay open an extra 2 hours? They have an outdoor deck that is a prime viewing location for the fireworks. So instead of staying open until 11:00 and selling us all a whole pile of fish and chips and drinks, they scurried everyone OFF the deck so they could close by 9:00. I would have advertised "Watch the fireworks here!" all week long. Would have taken reservations, and filled the place until 11:00 (or even later). Would have been the best night of the summer!

Please, I'm begging you, sell me something! When you're in business, you have to keep thinking: 'how can I sell more today?'

Working IN your business means closing up on time. Working ON your business means staying open two extra hours so you can have your best night of the year.

There's a fee to read this blog

I visited a web site the other day that listed vacation properties - places to rent if you want to get away for a week. I discovered (in time, thankfully) that to book through them, you were required to pay a $75 "transaction fee".

Now, many of you are surely wondering what the big deal is. But think about it - a fee to process the transaction?! Every business in the world processes a transaction at some point. This is purely a way to appear less expensive, when really they aren't. In this case (as an example), booking a rental through them costs $925... plus a transaction fee (in mice type of course). They are hoping that you will compare that price to another agency renting the same place for $1000 (with no extra fees) and assume the $925 price is that much better.

They are assuming that we are stupid, and that bothers me.

It is clear to me that "transaction fees", "processing fees" and "administrative fees" are sneaky pricing illusions designed to disguise the real price and fool the consumer. And often times, it's too late - you go through the (usually online) transaction process only to discover that the "transaction fee" makes the price higher than one of the other options you may have considered.

The airline and automotive industries are notorious. Two Hondas ago, I actually challenged the dealer about that. I asked "what is the $250 administrative fee for?" Without a word of a lie, he couldn't tell me. Neither could anyone else in the dealership (I made him ask). Now, I'm a big fan of Hondas, so I bought the car anyway. And Honda is not the only perpetrator in the industry. The point is, that was Honda's way of adding $250 to their bottom line without making the car $250 more expensive... in the consumer's mind. It's backhanded, deceitful and arguably unethical.

Don't do it.

Make the price the price. When the consumer gets to the part where they have to pay, all that should be added is any applicable tax. Otherwise, you're just being deceitful.

Great golf, lousy marketing

Today I noticed, as I was traveling along the 401, a huge flag at Puslinch Lake Golf Course that read "GREAT GOLF"... and that's it. Now, I knew it was Puslinch Lake because I happened to play there two days ago. But they have raised that flag to advertise their course to all passers by. Great idea because it's a huge audience (more than 500,000 cars per day) and because a good potion of them will be potential golfers.

But what if someone was actually interested in golfing there based on the flag? Only a small handful of the potential audience would know which course that was! No phone number on the flag. No web address. Not even the name of the course! They're saying 'come golf here, but you have to guess where here is'.

What a waste.

We work so hard in marketing to convince people to try our products. You CAN'T make it hard for them to figure out how to get it! In fact, you have the burden of making it EASY.

Have your say: In an earlier post, I gave an example of how easy VISA made it for online shoppers to apply for a card. What are some other examples of companies making it easy to try a product?

Competition at its best

Hockey fan or not, you have to love this story.

This week, CBC failed in its negotiations to maintain rights to the theme song for its #1 TV program - Hockey Night in Canada. The theme song has been an integral part of Canadiana for more than 40 years. Most Canadians could belt out the tune on command, and it has even become an overly popular ring tone for hockey fans across the country.

Now, tempting as it is, I won't use this space to talk about CBC's failure to retain something so critical for their brand. Instead, I am more intrigued - or should I say impressed - by CTV's response. They bought the rights right out from under them! They will use the song for their hockey broadcasts on TSN (which they own). As deft a competitive move as I have seen in recent memory.

Now, readers of my blog will cry hypocricy and remind me that in a previous post, I condemned Kelsey's for using the Cheer's theme song for their new campaign. But wait - this is different. CTV has recognized the importance of the song to viewers, and is wooing them with it. They didn't try to recapture old, expired magic by reviving a popular theme from somewhere else (as Kelsey's did), they just stepped up to the plate when their competitor couldn't. Kelsey's decision to use the Cheer's theme reeked of laziness. This move by CTV is competitive spirit at its best.

Imagine for a moment that, say, The Keg offered a menu item so vital to the Canadian fabric that Canadians ate there just for that reason, and ate there almost every time they ate out because it was that important to them (this dish would likely resemble a donut sandwich with coffee sauce and a side of Molson Canadian). Now let's imagine that someone had sold the recipe to them, and the usage rights had expired. If Kelsey's swooped in and grabbed the recipe when The Keg decided it wasn't worth keeping (ignoring the needs of their customer base), that would be impressive. Just like CTV's move.

Similarly, imagine that CBC dropped the logo for the show - not really that important to viewers. If CTV had picked that up, that would just seem like laziness.

See the difference?

The theme song WAS the show. It was Canada. Forget that it's a theme song, or a logo, or a menu item. Whatever IT is, if it's that iconic, protect it. And if it's available, steal it! Other examples would include Nike's Jordan silhouette, the golden arches (sadly), and the iPod.

Nice move CTV.