43 years of Marketing… And it struck me that I have been obsessed with perfection of application and implementation of marketing excellence for 40 of those years – holy hell!

To be fair, my blind faith in commercially-usable academic knowledge has been the major reason I have pulled off some record-breaking successes in my career… by simply taking proven marketing science and applying it.

So, it’s no wonder that my peers shake their heads in dour and reluctant tolerance to what we call the “dumbing down” of skills and knowledge in the world of Marketing.

In particular, we’ve seen an awful downward slide in the quality and output of market research… reviewing studies done for clients who should have known better, but didn’t.

Is it the client’s fault for not have the skills to be a discriminating buyer?

Is it the researchers’ fault for not setting a standard and mentoring their clients to understand the importance of asking the right people, the right questions, in the right way?

Is it the pure academics, devoid of commercial experience, who are to blame for not delivering the education necessary in marketing graduates?

Is it the academic institutions that should be kicked for appointing inappropriate teachers of marketing for the hundreds of students who are paying for, expecting but not getting, skills that will empower them in commercial marketing roles?

Where does it stop and who will stop it?

Applying some of the theories of Marketing, we might predict that the commercial world will ultimately reject the inferior products now being delivered by academia… forcing academic institutions to return to the belief that only working practitioners marketing can teach it,  which was the original springboard of Marketing into wide-spread fame.

In the meantime, the absence of properly trained Marketing strategists, and the substitution of operational trained under-educated executives TRYING to make prudent business decisions likely to leave many of them face-down in puddles of business problems that shouldn’t even exist.

Absolutely, and without exception, any business that has been successful, accumulated profits and held major market share, should NEVER, that is EVER, g broke, die, or even experience a failed product launch.

Only when management goes wrong, get arrogant, or complacent, of suffers belligerence and apathy borne of bureaucratic inefficiency, do organisations begin to struggle or worse.

And ONLY, when leaders are empowered with strategic marketing knowledge and input, as well as authority to act and utilise this knowledge, will market leaders stop going broke, losing to competitors, or make other terminal business management decisions.

The questions is three-fold:

  1. What proportion of executives are drowning in puddles?
  2. How many partially strategic executives are face-down in shallow water?
  3. And how nay are truly able to survive in the deep?

 

Product Development that Wins Overwhelming, Profitable Sales

It is a mad world we live in… so close to the wood, we rarely stand back and enjoy the trees, let alone the whole forest. In MARKETING terms, we’ve been distracted by Marketing Communications (with all the digital hype) and forgotten the other 7P’s of Marketing.

If you do recall proper Marketing Management, just for a second, you’ll recall that new markets arise daily, and new products that better satisfy the needs of market segments are the fast road to blue ocean sales, profits, market share, success, and return on shareholders’ funds and outstanding EBIT.

Product Development Delivers Competitive Edge

The operational focus in FMCG led them to discover that over 50% of profits come from products launched in the past 3 years.

Clever strategic marketing by banks has helped them reap millions in extra profits, without increasing transactions, simply by developing new products that better match the needs and wants of certain market segments, while better matching the capabilities and efficiencies of their organisations.

Product Development Is Getting More Sophisticated

As New Product Development consultants, we have seen a constant sophistication since we began 19 years ago!

It is time to share new and proven updates on New Product Development… changes in thinking, methods, adaptations.. as well as a reminder of the basic Laws of Exchange and the correct strategic directions and actions to take in certain, pre-set circumstances.

For instance, in just a few years, the Stage-Gate process for New Product Development has gone from academic indifference to usage by 80% of USA corporations!

Training Workshop on 2016 Issues, Techniques & Methods In New Product Development

Why not catch up, train some new executives, revitalise some old ones, and tune-up your whole Product Development team by attending my upcoming Product Development course in Kuala Lumpur this June?

You can download a brochure from this link , http://j.mp/kl16prodDEV

Feel free to post questions in the comments section so I can reply and with answers that may help others.

It would be GREAT to see you there!

 

 

 

 

When I was a boy, and asked “what do you want to do when you grow up?”, instead of saying fireman or policeman, I would say, “Be a time & efficiency expert”… having evolved into the quasi wish-come-true version of that, I find it enormously frustrating to watch, and doubly frustrating when my assistance is refused, because I can see the solutions, or alternatives, for businesses in trouble.

All around, I see businesses doing it tough, going bad, or just struggling. Other businesses appear to be raking in sales, but losing money through habitual and comfortable routine inefficiencies.

Sadly, bogus consultants, operational ‘experts who have failed to help’ and snake-oil sales folk, have all tarnished the promise of salvation, so these struggling companies – so close to the trees they can’t see the forest – struggle on… doing what they always do, and getting the results they have always gotten. 😦

Years ago, I came across research into how to stop a business bleeding, and how to turn it around, that is summarised below in 8 points…

  1. Accept you must do things differently
  2. Stop & plan: Work on the business, not in it
  3. Listen to your customer service & sales people
  4. Re-evaluate the capabilities of your advisors
  5. Listen to customers
  6. Study your closest competitors
  7. Milk every asset, call in every favour
  8. Move out of your comfort zone

But there are MANY ways to skin a cat.

I remember being served “Cuy” (cooked guinea pig, a Peruvian delicacy) in Peru at the bottom of Machu Picchu…. Having just finished the trek and in celebratory mode, I recall eating regardless of the fact it looked and tasted like rat (and probably was).  The point is, that if you can identify a different market, and position a core product in a different context, you can satisfy new customers with old capabilities (even that pesky kitchen rat!).

THIS is a skill that is beyond operational thinking. It is the domain of power for creative strategists. and goes to the heart of most of the 8 points above.

When executives, who are struggling, say, “we have leading industry experts on our Board and they can’t do anything” or “I can’t afford consultant right now”… yet their inner voice tells them they are headed for doom, these 8 points may be the wake up call necessary.

Product launches should never fail

Those who follow me, are aware that I ascertain new product launches should never fail.

Of course this follows from the fact that products don’t fail… businesses don’t fail… it is MANAGEMENT that fails to do its job properly, who truly fail.

How Do Executives Allow Product Launch Failures to Happen?

But is it their “fault”?

Perhaps modern-day executives are victims of the business education they have been fed, or the hype delivered by self-promoted NPD ‘experts’ who push flawed theory upon susceptible executives.

Models that are popular these days include the new product development wheel (which I admit to having taught, in the past, at postgraduate level myself) and the Stage Gate model (the NPD wheel re-packaged to seduce operational marketing folk with summarial simplicity)… BOTH limited and incomplete as management tools .

Given the limited delivery of academic acumen, it follows when Product Development teams are employed according to their knowledge of such tools, when business teams meet, committees are formed, and decisions are made they are made on the premise that these models are valid; its no wonder that product launches end up being risky, or unsuccessful.

Its kind of like a meeting of the the flat-earth society…. every decision that flows is built upon belief in a model that is simply flawed… so outcomes must be equally as flawed.

Methodology that starts with “idea generation” as Step One…. is dooming you to an 80% failure rate.

  • Idea Generation must FOLLOW discovery of market needs, wants, desires and aspirations.
  • Idea Generation must Be founded on Purpose, Mission and Vision.
  • Idea generation must contextual to the resources available to the organisation.
  • Idea Generation must to FOLLOW discovery of market needs, wants, desires and aspirations.

“That stifles creativity and innovation” cry the masses of self-proclaimed innovation & ideas experts (some of who are clever guys).

So might it be, but there ARE better ways paths to new product development for commercial success than the two mentioned above.

Anyone, globally, should bookmark & use http://www.prelaunchchecker.com to ‘test’ if your product launch idea has merit…

For folks in South East Asia, click this link to find out about my 2-day Product Development workshop this June in Kuala Lumpur, Malaysia. You can find out more by visiting, http://www.yf-asia.com/product-development-for-bullet-proof-product-launch/

  1. The word “Marketing” is used as a synonym for selling, promotion, or marketing communications.
  2. Marketing and Sales are at odds… see each other as different departments or business units, exhibit power tussles and can be uncollaborative. Sales people are left to do all the selling.
  3. There s no Marketing qualified executive on the Board of Directors
  4. The CMO or head Marketing executive does NOT possess an MBA or actual Marketing degree.
  5. Marketing Planning is NOT a priority and routine in your organisation
  6. Client satisfaction levels are below 85%
  7. There is high animosity between the employees and management of the Company.
  8. Your brand actually disturbs a proportion of your market rather than attracts it.
  9. Trade partners and stakeholder hold you in low regard.
  10. Market share and/or profitability are falling or steady.

If any of these symptoms exist in YOUR Company, you AT LEAST should read and consider, “The Four Faces of Marketing”, free at … http://j.mp/ALLmktg

If every SMB used a QUALIFIED marketing consultant there would be  a LOT less SMB’s but a LOT more successful corporations. If not, they’d either be large businesses, merged businesses or different businesses.

Small businesses are, far too often, stunted by the limited skills, incompetence, or timidness of the Owner, CEO, major shareholder.

Qualified Accountants, aggressive Sales executives, IT buffs, Workplace bullies, proud tradesman and rich kids can all end up owning or running a business. They are not bad people, and CAN be successful business managers, if they open their minds to, and receive, GOOD business advice.

Did you know advanced marketing training includes CORRECT responses to make for differing market and business conditions, and the Strategic directions and setting certain business circumstances and avoided in others is an area MOST people don’t assume falls under the responsibility of Marketing Management?

Big companies support heavyweight bureaucracy , sometime crippling politics, excessive salaries in top heavy management structures, and other IN-efficiencies of scale because they embrace productive business disciplines and scientific business principles.

SME’s are more likely to make decisions based on emotion, limited experience and education, the way they’ve always done it, or the cheapest option (likely to be the worst choice)…

Only advanced marketing professionals possess the balance of training and skills in the broad plethora of marketing disciplines, that include:

– Distribution Analysis & Strategy
– Buyer Behaviour Analysis
– B2B strategic methodology
– Marketing Accountability Analysis (ROI, Forecasting, Performance Assessment, Net Marketing Contribution)
– Marketing Communications theory specific to the unique factors of an individual business – rather than those that may be seen to have worked for other businesses
– Pricing Methods and Strategies
– SCIENTIFIC New Product Development
– Understanding of the factors that generate Sustainable Competitive Advantage
– Marketing planning >>> Resource planning >>> Management
– Brand equity, brand portfolio strategies, brand life cycle, etc.
– STP (Segmentation, Targeting, positioning)
– Innovation types, product types, life cycle types, gap analysis..
– The right use of digital, when analogue is still better, and how to maximize returns from both media options

…. and so much more!

The great Conundrum of Marketing is that decision-makers often know so little about the depth and breadth of Marketing, and self-proclaimed marketing experts who are perceived to be good at “Marketing” when their strategic skills are all but absent, far out-number those with REAL skills and true knowledge.

When leaders find the latter, and IF they listen, THAT is when a business prospers… A GOOD Strategic Marketing Consultant will more than pay for themselves (many times over) – that is HOW to recognize a good one, and that is why SMB’s/SME’s should search for and hold on to, a qualified strategic marketing consultant.

Better Sales from Marketing

Business people share a lust for sales. Great sales! Extraordinary sales! Record-breaking sales.

“How to get better sales” preoccupies them, drives them, absorbs them.  They pine for profitable sales, AND they crave sales that are as easy as possible.

Business turned to academia… Economics couldn’t

Economics couldn’t conjure up sales. Accounting couldn’t stimulate sales or forecast accurately. Finance couldn’t initiate faster, better or increased exchange…

So, from the insatiable hunger for ‘more’, NEED spawned the science of “Marketing”.

The Business Reason Behind “Marketing” as a Profession – How to Consistently Grow Profitable Sales?

In the 60’s , the discipline of modern-day “Marketing”, as a specialist profession, was really born. Out of the School of Economics, studies of true business successes were initiated when Industry said, “We want to find out why sales progress, and how to

Out of the School of Economics, studies of true business successes were initiated when Industry said, “We want to find out why sales progress, and how to re-produce these sales successes”.

Empirical academic studies and practical, industry-sponsored studies, quickly identified key models and concepts that became cornerstone to modern commercial success: Everyday tools to business strategists and marketing directors of successful companies around the world. A database of all the profit-making methods was even built, and maintained for over a decade (called “The ‘PIMS’ Database[1]”).

How to get best possible sales? Use appropriate marketing!

Sadly, many executives who are responsible for Sales, have built careers on – and only know – systems, routines and operational ways to get great sales… and, because there are many great sales people in most industries, these commonly shared methods undermine competitive advantage.

Generating extraordinary sales, record-breaking sales, and genuinely better sales, elude many., because what they THINK is Strategic Marketing is actually Tactical/Operational Marketing.

Strategic Marketing is the SUSTAINABLE path to profitable sales and growth, mostly evolving from planned and well-managed application of marketing science, marketing models and methods, complex and skilled permutations of advanced techniques, and marketing devices under-educated marketing consultants only wish they knew and understood.

Yes, there ARE exceptions: Dynamically Continuous Innovations and Discontinuous Innovations (which have recently been trendily described as “Disruptive Innovation”) but these will be short-lived without strategic marketing disciplines.

The Conundrum of Marketing

The Conundrum of Marketing is that few understand the breadth and depth of the discipline; the advent of the digital era has allowed  convincing sales people to twist and distort the meaning to their own advantage.

Lack of advanced understanding comes with lack of education. ANYONE who calls himself, or herself, a Marketing Professional, who hasn’t completed at least one full [dedicated] degree in Marketing, is far short of properly trained in strategic marketing.

However, they may be brilliant in Operational Marketing… so others, who are also ignorant of the extensive nature of the discipline, believe Operational Marketers to be competent and qualified in strategic marketing.

Operational Marketers, naïve of the knowledge that can be honed from strategic marketing training, themselves believe they have mastered their art.

They are like witch doctors completely unaware of modern medicine: They know what to do in a singular, unchanged environment, but are lost in new or unfamiliar circumstances.

This is how big, omni-potent businesses go bust.

In 1986, Fortune Magazine named Digital founder Ken Olsen, “America’s most successful entrepreneur”. He said there was ‘no reason for any individual to have a computer in his home’. OPERATIONAL thinking, not STRATEGIC.

In my earliest days I was guilty, myself, of a limited operational perspective and I have witnessed peers, friends, superiors, students, competitors, the most well-meaning and the most arrogant, ALL suffer the inevitable ignominy (and pain) of defeat, that could have been wholly and completed avoided if they’d only been empowered with strategic marketing skills.

Businesses don’t fail! Products don’t fail. It is PEOPLE who fail!

The evidence is around us … 90% of new products should NOT fail. 67% of businesses should not close within 10 years! Established businesses SHOULD be immortal.

In Australia alone, 44 business close down every day! A staggering 42% of business closed down 2003-7… BEFORE the GFC!

Product launches that fail. Businesses that close their doors. Corporations that lose millions. These are ALL symptoms of weak or missing Strategic Marketing.

To serve the global community and those who are willing to listen, I have penned a small book, to introduce those with an interest in sales growth, to the differences between operational and strategic Marketing.

IF you’re keen, you can download it from j.mp/ALLmktg or drop me a line & I’ll send you a copy.

———————

[1] Profit Impact of Marketing Strategies