June 23, 2005
Re: getting stuff free....Wasn't it Estee Lauder who started the trend of giving gift samples of cosmetic products free with every purchase? She just knew that we all thrill to that little extra something so temptingly packaged that we didn't have to pay for. Now you buy a bar of soap and your bag is filled with so many samples that you forget about the soap. Once again, marketers choose the me-too approach rather than making any attempt to be as original and clever as Ms. Lauder.
What Matters Most to Clients
The 4-A's (American Association of Advertising Agencies) recently asked major agency leaders that question and the answers are interesting:
First and foremost...One big idea. There's no escaping it...you gotta have a Big Idea....not lots of little ones. One BIG one. What's yours?
Second...and very important: A collaborative collegial environment where ideas are valued and action/standards are embraced.
Which leads me to a little riff on our corporate identity (available to be seen on our website...also available to be seen here, if I weren't so lazy).
Our abstract watercolor mark symbolizes the "handmade" quality of our marketing/communications solutions. Nothing cookie-cutter here. We carefully craft Big Ideas that are uniquely suited to maximize each client's results.
The colors blend seemlessly, reflecting our "no barriers" approach to work. We see no barriers among the various disciplines within our organization, and no barriers between us and our clients. We seek that "collaborative collegial environment" that agencies say clients value so highly. And, again, our watercolor mark hopefully communicates that environment.
So, that's what it all means to us. And besides, we like to look at it 'cause it kind of makes you think, imagine, and explore the possibilities. And that's fun...fun that we get away with calling "work."
Smart Cookie
I like this woman Robyn Waters, former VP of Trend, Design, and Product Development at Target. She has written a miniscule book called "The Trendmaster's Guide: Get a Jump on What Your Customer Wants Next."
Well, the title is a bit of an over promise. But there's some good stuff in here.
For example, I like her story about how Target took a totally different approach to what she calls "trend tracking." Typical fashion retailers were doing "runway research" at the major fashion shows and trend spots like St. Tropez. Target took the opposite approach. Says Ms. Waters, "We started with the customers. We tried to get close to their lives, understand their lifestyles, and then take the fashion trends that we saw happening and translate them into fashionable affordable products for Target." Makes sense, and is consistent with all wise marketing: look and listen carefully...the answer, the opportunity, is typically right in front of you.
Best is her incredibly succinct description of the Target success formula:
"We were going to be 'trend right,' customer focused, and design driven. We were going to help make chic cheap, design democratic, and put some real pizzazz into the world of discounting."
And did they ever!
AND, unlike the cosmetic crowd that has never improved upon Estee Lauder's idea, Target did not follow or imitate the leader (Wal-Mart). They staked out a unique position of their own. That's why, on the day that K-Mart (the ultimate me-too brand) filed for bankruptcy, Target's stock was 19% above it's previous year's price.
posted by David Rawle @ 9:48 PM
2 comments
2 Comments:
The consumer-centric movement is becoming a popular thread in discussions on marketing in the modern age-- I find this encouraging. Thanks for bringing it up.
Target is not alone. According to a story posted on Forbes.com two days ago, "Companies like Coach and Gucci have long defined top-of-the line products in their sector. In the past, they've relied on a few top designers to exemplify taste. In the future, companies pitching products to the rich will depend more on feedback from their customers and design will become more of a collaborative effort," says Milton Pedraza, chief executive of the Luxury Institute, a subscription-based research firm in New York.
Earlier this year, I read an article in the LA Times called "Searching for the Why of Buy." An interesting insight into the science of consumer proclivity, it estimated that 700 new products are introduced every day and that 2 million brands vie for our attention. Holy moly. The incredible number of new products is a testament to American ingenuity and free enterprise, but the point of saturation is often met long before a new product leaves the think tank and hits the lab. Enter the need for consumer-centric product development.... and subsequent consumer-centric marketing efforts.
Like Waters at Target, A.G. Lafley (CEO of Procter & Gamble) is another champion of the consumer-centric approach and certainly one who feels the heat of competitive products and brands. He encourages employees to spend actual time with consumers-- learning and documenting the behaviors, from putting on make-up to washing dishes. After spending time with known consumers, employees armed with actionable field data then enter the lab. As a result, their stock has doubled and earnings are up 17%. Talk about measurable results!
Thanks in large part to the internet, and the re-introduction to traditional forms of information exchange like in-home visits made famous by AVON and Mary Kay, marketers are able to drill down and correctly identify the 20% of customers who generate a whopping 80% of the profits. The ability to define more meaningful consumer segments, and their collective core values, has added greater depth to the relationship a company can forge with its consumers. As a result, we're seeing savvy companies develop highly specific messages intent on deepening the relationship with just that golden segment. It is fascinating to watch the companies who have mastered this approach and encouraging to see that others are trying. Who has time to pay attention to the ones who have missed this boat-- those stone-agers who don't grasp the importance of incorporating the customer into their market approach or worse- gasp!!- those who field customer interaction+feedback, but do nothing with it... leaving dead data and disgruntled customers in the wake of their crumbling brand. The Economist summarized this best by stating that the growth of the Internet, rise of the empowered customer and market fragmentation have made “positioning” a relic. Brands today are defined by customers, collectively. Companies focused on branding must devote resources to defining, delivering, and sustaining the precise value that core customers seek.
The instigation for this comment is, in fact, a by-product of the consumer-centric approach. Upon learning that I read and enjoy your postings, both Nikki and Claire encouraged me to leave a comment-- to help you define and come to know your audience. You have presented the opportunity for the audience to interact with your topic selection and ongoing dialogue. Hence, you have invited the consumer to shape and mold your product first-hand. Isn't it interesting how knowing you have the ability to intimately and instantly interact with your consumer via the web can propel you to crave that finite degree of research and highly detailed composite of your end user? Some time back, I read the following two quotes. Unfortunately, the author / periodical escapes me... ""The audience is our new client." AND "We're not selling products, we're buying people's time." In my practice, both ring true.
And one final note: blogs and other on-line discussion groups are enabling people to share peer-to-peer information at a rapid pace, go deeper, and thus become better consumers. Keep up the good work!
"The Quest for Customer Focus" by Ranjay Gulati and James B. Oldroyd, available at Harvard Business online, is on my short list of things to read this summer- are you familiar with it? And how about you weigh in on wikis.
Yes, I'd love to know what people think about wikis...I have to admit that I know very little and haven't done much research, but it sounds like an online version of "Telephone". How do you know that the information that is constantly being added, updated, revised is accurate and not just someone's opinion? I envision an electronic community of know-it-alls...like the kind of people you hope to avoid sitting next to at dinner parties.
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