Marketing Management

Memorable Marketing Messages

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brain-thinking_process1

Effective brands provide a lasting impression.  However, loyal is fleeting for most buyers in the absence of a strong brand.  Yet, I have purchased the company’s competitors in some cases, even with these good memories. Solomon points out that individuals’ knowledge about the world constantly updates as they are exposed to new stimuli.

Individuals can continue to receive ongoing feedback that allows them to modify their behavior when they find themselves in similar situations later. Therefore, we use our past experience as a baseline for making new purchasing decisions. Consequently, businesses need to understand how the principle of working memory and long-term memory influence learning consumer behavior.  

The principle of working memory and long-term memory apply greatly to learning consumer behavior. Marketing successfully for most businesses depends on the consumer’s recognition of their products and services.  Michael Solomon, author of Consumer Behavior, maintains that many marketers realize that extensive learned connections between products and memories are a potential way to build and keep brand loyalty.

For example, Arm & Hammer baking soda is one of those long-lasting memories from my childhood in Louisiana. From stopping a bleeding wound to keeping a refrigerator fresh, Arm & Hammer’s products have been associated with multi-purposes.

McDonald’s is another brand to consider for this discussion. An image of the golden arches has a world-wide reputation. For most adults, the memories start in childhood.  McDonald’s has done an excellent job of branding, or brainwashing, us as children.

Yet, I think it’s all about classical conditioning. When we see the golden arches, we think about—FUN. Classical conditioning focuses on visual and olfactory cues that induce hunger, thirst, sexual arousal, and other drives. Therefore, it is easy to see why McDonald’s is doing well and serving millions of people from a variety of countries.

Consequently, buying decisions are influenced by these memories.  Trust is the anchor. Stephen Covey and Rebecca Merrill, authors of The Speed of Trust, note that low trust slows everything—every decision, every communication, and every relationship.[1]

In fact, we are heavily influenced by our parents and teachers.  In addition, our backgrounds influence our purchasing decisions.  However, we are not puppets.  Businesses that create a lasting image of their brands are in the best competitive advantage. 

Please discuss the power of memorable brands from your own professional experience.

© 2013 by Daryl D. Green

 

[1] The Speed of Trust by Stephen Covey and Rebecca Merrill

 

Marketing Sustainability

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Many businesses attempt to navigate today’s economic landscape using the same old marketing gimmicks.  It just won’t work. Today’s organizations need to understand marketing sustainability and how to utilize it.

Frank-Martin Belz and Ken Peattie, authors of Sustainability Marketing, note, “Conventional marketing thought and practice have struggled to adapt to a world that we now realize could be destroyed (or at least impaired to the impoverishment of us all) by unconstrained consumption as we strive to satisfy an ever-longer list of wants for an ever-growing global consumer class.”  Given these perimeters, the average individual would argue that marketing sustainability must be an oxymoron. Marketing is about meeting customers’ needs and wants.

Phillip Kotler and Kevin Keller, authors of Marketing Management, suggest the importance of marketing to buyers:  “Many people want a Mercedes; only a few are able to buy one. Companies must measure not only how many people want their product, but also how many are willing and able to buy it….Therefore, businesses must connect with customers in other to convince them to purchase.”  However, some people would suggest marketing involves the mass consumptions of goods and services at any cost.

 

With the depletion of natural resources and the ever growing population demands from such countries as China and India, many experts worry that the world is headed for a train wreck unless something changes.  Governments race to find new energy sources while businesses search the world for cheaper labor and lesser costs for producing their products.

Consequently, more and more organizations recognize that sustainability is more than keeping the environment clean.  Yet, the concept of sustainability is often difficult to define. According to the U.S. Environmental Protection Agency, sustainability is defined as “everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment.”

Consequently, one person may view sustainability simply as the ability to use resources continuously without any long-term depletion.  Andres Edwards, author of The Sustainability Revolution, breaks down sustainability into several key components, which are: ecology/environment, economy/employment, equity/equality, and education.

Marketing sustainability focuses on the triple factors of ecological, social, and economical in harmony. The managerial approach of sustainability marketing encompasses several key elements, which include (a) socio-ecological problems, (b) consumer behavior, (c) sustainability marketing values and objectives, (d) sustainability marketing strategies, (e) sustainability marketing mix, and (f) sustainability marketing transformations.

Belz and Peattie further maintain, “The point of departure in sustainability marketing is an understanding of social and environmental problems in general (macro level) and an analysis of the social and ecological impact of corporate products in particular (micro level)….To implement sustainability marketing strategies, a comprehensive marketing mix has to be developed.”  In fact, marketing sustainability then relates to an organization’s ability to balance environmental, social, and economic factors in order to be successful over the long-run.

However, some business executives quietly argue that profitability supersedes many other priorities, such as the environment.  Edwards disagrees: “Creating a healthy environment, free of pollution and toxic waste, and simultaneously providing the basic for a dynamic economy that will endure for an extended period are viewed as complementary rather than conflicting endeavors.”

With the growing demands from a global market, companies must readjust their business strategies. Marketing and sustainability are key components of this economic equation.  Therefore, organization must learn how to manage marketing sustainability to be successful in the future.

Please discuss marketing sustainability from your own professional experience.

© 2013 by Daryl D. Green

Communicating to Customers

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Businesses attempt to persuade customers with their commercial messages. Consequently, they need to develop effective marketing communications. In a ‘marketing heaven,’ an organization would have the top brand in its category. In the real world, it is about a company showcasing itself in a good light with buyers.

Positioning involves a company putting its product or service in a favorable space in the minds of consumers. Therefore, positioning involves winning the customer’s perception over one’s competition.  For example, McDonald’s uses its brand to position itself over the competition. When parents travel with their children, most children automatically want to eat at McDonalds.

If a company has an existing product and the overall consumer attitudes do not rank the product as highly as its competitors, the company has a chance to improve its positioning. The company needs to do a lot of research to see why it is viewed in this light before setting new strategies.

Michael Solomon, author of Consumer Behavior, maintains that the way a consumer evaluates and chooses a product varies widely, depending on such dimensions as the degree of novelty or risk in the decision. Additionally, the attitude of the organization has an impact on buyer behavior.

For example, a bad experience with McDonald’s can sway a parent from going to McDonald’s; they may seek an alternative. In fact, Mark Johnston and Greg Marshall, authors of Relationship Selling, further argue that customers pick up on a salesperson’s attitude. Does good chemistry exist between the salesperson and the customer?  That’s an important performance measure.

When developing performance measurement with relationship selling in mind, good chemistry between the salesperson and customer should be a factor. Likewise, improved company attitudes can have a positive impact on customer behavior.  

Please discuss the value of effective marketing communications to customers.

© 2013 by Daryl D. Green

Buyers’ Trust

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Too many businesses lose their focus. They are often consumed with their own quest for profitability at any cost.  Consequently, buyers become less trusting of these companies. 

In fact, countless businesses are making careless mistakes. Former Johnson & Johnson Chairman and CEO Jim Burke explains, “You can’t have success without trust…You tell me any human relationship that works without trust, whether it’s a marriage or a friendship or a social interaction, in the long run, the same thing is the trust about business, especially businesses that deal with the public.” 

Most businesses underestimate the critical attribute of trust in profitability. Any value proposition will fail without TRUST.  Some organizations seek to clearly deceive customers in the short run to gain profitability. It’s a fatal mistake. 

Mark Johnston and Greg Marshall, authors of Relationship Selling, maintain that building trust is essential in fostering good relationships with customers.  In fact, one of the primary tasks of organizational leaders is to foster trust within and outside of the organization.  

Many businesses suffer because they don’t understand their customers and how to meet their needs. Therefore, the message is mixed!  In fact, the manner in which customers are treated have a bearing on their customer satisfaction.

Paul Peter and James Donnelly, authors of Marketing Management, note that building a good relationship with channel members is a critical part of marketing communications. Understanding customers is critical. Therefore, businesses need to provide them the right message is vital.

Furthermore, numerous managers believe they can offer this concept without regard to their employees. Some treat employees poorly and expect them to showcase service with a smile. In this situation, trust is lost. Managers need to model the way in value creation. 

John Hamm, author of Unusually Excellent: The Necessary Nine Skills Required for the Practice of Great Leadership argues that some managers have misunderstood leadership. They feel they can work fewer hours, give their work to others, and not respect employees due to their position or title. 

Yet, managers’ bad behaviors are not without consequences. Employees soon lose their trust in these managers to do the right things. Hamm explains, “When leaders compromise their own integrity, it takes that extra urge out of our bodies that says we’re willing to go the mile.  Therefore, trust as a competitive advantage cannot be underestimated by today’s businesses. 

Please discuss your professional experience with customers and their trust in buying.

 © 2013 by Daryl D. Green

Customer Value Differences

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Companies must focus on value for customers. However, all customers are not the same. Globalization has created all types of problems for businesses.  One of the issues is how to stay ahead of the competition by exploring new markets while keeping the same customer base.  This action is not easy.

Mark Johnston and Greg Marshall, authors of Relationship Selling, maintain that customers expect and deserve consistency in the way an organization’s value-added message is put forth. [1]

Being strategic conscious about these business relationships is not simple.  Marketing expert Ken Favaro further suggests that putting value creation consistently first requires leadership skills, discipline, and perseverance. He further challenged organizations to demand higher standards from managers who would jeopardize these business relationships.

These marketing problems are worthy of the most decorated scientists. In fact, the right value proposition is critical because all customers are not created the same. When organizations place value creation as a high priority, organizations will beat their competition because they will deploy capital better and develop internal talent better.[2]

Customer expectations and customer needs are often different. Management expert Ray Miller further suggests a “strategic trap” for businesses seeking to meet customer expectations. Delivering below expectations is obviously bad.  However, simply satisfying customers will not guarantee customer loyalty either because they are getting nothing more or less than they expect.

 https://www.youtube.com/watch?v=d7vwhHLmdWI

Furthermore, some businesses get caught up being efficient in developing cookie cutter solutions for the masses. Yet, they overlook that value seeking customers are looking for products and services that solve their specific needs.

Consequently, employees should be motivated to provide value for customers if the businesses want to be successful.  In fact, this reality involves being compensated fairly, being treated with respect, and being given meaningful work. Finally, companies must understand that customer value expectations are often different. Therefore, businesses that  manage customer expectations effectively will possess a distinctive advantage in the market.

Please discuss your professional experience with customer value differences.

© 2013 by Daryl D. Green

 

[1] Relationship Selling by Mark Johnston and Greg Marshall

[2] Put Value First by Kevin Favaro

Sustainable Customer Value

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Using Credit Card at Register

Senior executives should build value creation in their business strategies. To act otherwise is only asking for trouble. In the infancy of a business’ existence, a good value proposition for customers is essential.

Mark Johnston and Greg Marshall, authors of Relationship Selling, argue that value-added selling changes much of the sales process.[1] Value is defined as “the perceived experience and worth gained from a product or service.”

Phillip Kotler and Kevin Keller, authors of Marketing Management, maintain that it is important for businesses to understand customer perceived value: “Buyers operate under various constraints and occasionally make choices that give more weight to their personal benefit than to the company’s benefit….Consumers have varying degrees of loyalty to specific brands, stores, and companies.”[2]

Customer-perceived value is related to the difference between benefits the customer gets and costs the customer assumes for different choices. Yet, customer-perceived value often is a graded approach.

For example, if an individual wants a cheap, fast-food option, he or she may select McDonald’s. In this case, the buyer’s expectation for quality food is lower than eating at a five star restaurant. Customers are very understanding when the seller’s value proposition is clear.

Given that market framework, perceived value is in the eyes of the customer and varies from business to business. Kotler and Keller further note, “The marketer can increase the value of the customer offering by raising the economic, functional, or emotional benefits and/or reducing one or more costs.” [3]

Therefore, organizations are challenged by selling value. Consequently, managers must better align themselves strategically to provide long- term value for customers, rather than focusing only on short-term profitability.

Being strategic conscious about these business relationships is not simple. Ken Favaro, author of Put Value First, further explains that putting value creation consistently first requires leadership skills, discipline, and perseverance.

He further challenged organizations to demand higher standards from managers who could jeopardize these business relationships. Favaro further adds that sharing information widely within the management team builds a shared sense of commitment toward building value for customers and shareholders. Customers and all members of the supply chain should provide input so that the expectations are clear.

Businesses that pay more would get more benefits (i.e. certain perks, discounts, etc.). Therefore, the value proposition would be enhanced. Yet, all good business transactions start with trust.

Johnston and Marshall argue that customers expect and deserve consistency in the way an organization’s value-added message is put forth.  When a customer begins a relationship with you, he or she already has a specific set of expectations.[4]

Sadly, unproductive firms put little strategic thought in the matter of value creation. Nat Martin, III, Director of Purchasing and Concept Support, Darden Restaurants, Inc. notes: “If the value exceeds expectation, the customer is highly satisfied. If the value falls short of expectation, the customer is dissatisfied.”

Value creation can be considered the powerful engine that energizes sustainable growth. Therefore, value creation for businesses must be strategic and deliberate for any sustainable growth.

Please discuss your professional experience with company’s value creation initiatives.

© 2013 by Daryl D. Green

[1] Relationship Selling by Mark Johnston and Greg Marshall

[2] Marketing Management by Phillip Kotler and Kevin Keller

[3] Marketing Management by Phillip Kotler and Kevin Keller

[4] “Customer expectation vs. customer need” by Ray Miller

Building Relationships with Today’s Customers

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Relationship selling is about creating positive, lasting impressions with customers.  For example, Carrabba’s Italian Grill is one of my favorite restaurants in Knoxville.  During our 22nd anniversary, my wife and I celebrated there.  Our waitress was very attentive to our needs.  In terms of positioning, I think the restaurant is above Olive Garden.  

Yet, even though I had a high level of praise for this business, I became a little irritated when our waitress took a break and left us unattended.  It took us some time to get over that situation.  Therefore, customer satisfaction can be a little fickle and make a customer-centric approach difficult. 

Building relationships with customers is very important for sustainable success for businesses.  However, some customers have a negative reaction to the seller-buyer interactions (i.e. salespersons in retail pressuring customers to buy).  Although selling is about business transactions, selling is also about building relationships. Consequently, the concept of relationship selling is a hot commodity in a hypercompetitive environment. 

 

For this blog, we will examine the basic concept of relationship selling.  Relationship selling requires somewhat different skills than traditional selling as it involves securing, building, and maintaining long-term relationships with profitable customers. 

Furthermore, many organizations simply do not consider customers when planning their sales strategy.  Mark Johnston and Greg Marshall, authors of Relationship Selling, share four relationship mistakes by businesses which are (1) wasting customer’s time, (b) behaving  as a victim instead of an employed salesperson, (3) lacking the understanding of the customer’s business, and (4) bringing problems instead of solutions to the job. 

For example, Carrabba’s Italian Grill failed to adequately address our needs due to a focus on their internal operations rather than how to maximize their profit.  However, it is only due to relationship selling that we will go back. 

Furthermore, Paul Peter and James Donnelly, authors of Marketing Management, suggest that profitable marketing begins with understanding customer needs. Yet, it is a trait that is not gained by accident.  Being a professional in a highly technical field, we are required to possess certain skills and abilities. Finally, serious businesses cannot afford to master the concepts of selling relationships. It should begin today!

 Please discuss your personal experience with relationship selling.

 © 2013 by Daryl D. Green