I am not very interested in cars and do not know much about car brands. Marketing from the automobile industry towards me must therefore be crystal clear. In fact, I am a potential customer. By comparing two car brands with their backbone in the Swedish automobile industry, Volvo and SAAB, makes the importance of a distinct message to succeed very obvious.
With Volvo, I get a family car with an emphasis on safety. I know that from many years of a distinct and consistent marketing message from Volvo. But what do I get when buying a SAAB? Do I get a war machine like SAAB Jas 39 Gripen? Do I get a truck like the ones formerly produced by SAAB Scania? I have no associations to SAAB cars. Who is driving a SAAB? Is it a car that brings me high quality-to-price ratio or is it a car that makes me feel luxurious when driving it? I don't know. To me it's just a car that takes me from A to B. However, I want more than that. I want my car to be an extension of my personality. A sporty outdoor lifestyle would perhaps fit well with Jeep, whereas a Porsche gives more a feel of career and performance.
Personally, I drive a Toyota Yaris. It's small, economic, fun and it never gives up - just like me. ;-)
Wednesday, May 4, 2011
Thursday, April 14, 2011
Everybody wants a reference
How usual is it to chose a carpenter right out of the phone book? Not very usual, I assume. Instead you start by asking around for references. Your customers probably do the same to find their way to your business. So why not start taking networking seriously?
Compared to an advertizing campaign, word of mouth (WOM) is a cheep way of marketing your products. Compared to cold phone calls it most certainly is more effective. Some companies rely entirely of WOM. Aussie Haircare is one example of the power of WOM. The initial marketing of their hair styling products was carried out largely through referral marketing in various online communities.
One way to network is to join forces with other professionals with similar or complementary products to your without being competing. For example, if you are an instrument supplier you could ally yourself with a supplier of consumables suitable to use with your instrument. Another way is to network within a society where your potential customers may be members.
In advance your networking event, prepare a short presentation about yourself, your company, who your customers are and your advantages compared to the competition. When you are asked about what you are doing, don’t just tell what you sell. Instead, explain when your products are needed and by whom. This way you facilitate for your reference to remember what you have to offer and when your products or services are needed. In this way, your reference will more likely come to think of you when he or she meets one of your potential customers.
Compared to an advertizing campaign, word of mouth (WOM) is a cheep way of marketing your products. Compared to cold phone calls it most certainly is more effective. Some companies rely entirely of WOM. Aussie Haircare is one example of the power of WOM. The initial marketing of their hair styling products was carried out largely through referral marketing in various online communities.
One way to network is to join forces with other professionals with similar or complementary products to your without being competing. For example, if you are an instrument supplier you could ally yourself with a supplier of consumables suitable to use with your instrument. Another way is to network within a society where your potential customers may be members.
In advance your networking event, prepare a short presentation about yourself, your company, who your customers are and your advantages compared to the competition. When you are asked about what you are doing, don’t just tell what you sell. Instead, explain when your products are needed and by whom. This way you facilitate for your reference to remember what you have to offer and when your products or services are needed. In this way, your reference will more likely come to think of you when he or she meets one of your potential customers.
Tuesday, April 12, 2011
Less is more
A company that is often mentioned when talking about successful marketing is IKEA. Independent on world location, IKEA stands for Swedishness and has a well communicated company history and traditions. The distinctiveness in their marketing communication has subsequently built them a strong brand.
Branding should be based on corporate identity, profile and image. You can’t be everything for everyone. Important to consider is what you are (products, facts) and for whom (when are your products needed), how you will communicate your identity (profile) and what marketing channels you will use for this communication (where are your customers susceptible for your message).
Company profile needs to reflect the company’s values, be communicated from inside the company and out and be well implemented internally in the organization. Branding needs to be credible, consistent and long-term.
Keep the message simple and clear. It is said before but worth mentioning again and again; less is more.
Branding should be based on corporate identity, profile and image. You can’t be everything for everyone. Important to consider is what you are (products, facts) and for whom (when are your products needed), how you will communicate your identity (profile) and what marketing channels you will use for this communication (where are your customers susceptible for your message).
Company profile needs to reflect the company’s values, be communicated from inside the company and out and be well implemented internally in the organization. Branding needs to be credible, consistent and long-term.
Keep the message simple and clear. It is said before but worth mentioning again and again; less is more.
Tuesday, April 5, 2011
Walk the extra mile
On my way back from a meeting in Germany I became aware of the fact that the airport in Munich was hit by an electronic meltdown and hence all luggage was let behind. Subsequently, upon arrival to Stockholm I took a taxi home without my bag. Although I knew that this was nobody's fault, I was annoyed by this obstacle. However, my luggage was on the next flight to Stockholm and deliverd to my door the same evening. They could have chosen to wait until the day after and delivered my bag during office hours, but they didn't. Due to this excellent service I will continue to fly with Star Alliance also in the future.
In my work, I frequently care of visitors from various parts of the world. For dinner I often take our guests to Domtrappkällaren, a local restaurant in Uppsala. Usually the waiter gives a short presentation on the history of the facilities and on the food to be served. While waiting for the dishes, small appetizers are served in advance what's ordered. Complimentary as a little extra. I have chosen to return to this place with my company again and again.
Companies that have chosen to walk the extra mile and to give that little extra to its customers tend to increase the number of regular customers. These customers tend to be more tolerant and understanding when they run into troubles with your products. To a greater extent will they also stick with you as a supplier during more difficult times.
In my work, I frequently care of visitors from various parts of the world. For dinner I often take our guests to Domtrappkällaren, a local restaurant in Uppsala. Usually the waiter gives a short presentation on the history of the facilities and on the food to be served. While waiting for the dishes, small appetizers are served in advance what's ordered. Complimentary as a little extra. I have chosen to return to this place with my company again and again.
Companies that have chosen to walk the extra mile and to give that little extra to its customers tend to increase the number of regular customers. These customers tend to be more tolerant and understanding when they run into troubles with your products. To a greater extent will they also stick with you as a supplier during more difficult times.
Wednesday, March 16, 2011
Authenticity and transparency
Consumers tend to have an increased interest in authenticity with an increased need for transparency. With the increased range of products, it is hard for the consumers to decide what is authentic. Marketing is not working as it used to. Therefore we need to change our focus on marketing from “what consumer needs” to “what consumer wants”. Distinctive brands need something more – sensory marketing. Advertizing campaigns has become less important. Instead, quality-to-price ratio has increased in importance. There is a shift from lowest price competition to quality-to-price ratio. Also the story of tradition and origin is important. Advertize with your heart, not your brain.
Tuesday, March 15, 2011
Become a star negotiator
The most common mistake in negotiations is to be unprepared and initiate with the lowest (if selling)/highest (if buying) acceptable outcome. I once had the opportunity to listen to a seminar by Karin Klerfelt and here are her tips for us to become star negotiators.
1. Initiative; If coming from your opponent, buy yourself time by asking if you can get back later, for example at 2 pm. If coming from you, be prepared.
2. Preparations; Set goals at 3 different levels - best, okay and worst outcome. This gives you space for negotiation.
3. Greeting; Build a good atmosphere by sending a “I want us to reach an agreement” message to your opponent. All your expressions (spoken language, vocal, body language, etc) need to send this message.
4. Introduction; What are the rules – how long will the negotiation take part? Take acceptance!
5. Demands; Ask the opponent. Practice your lines/questions before the meeting. What is the goal, budget, is there any other person that has the final mandate, etc?
6. Agreement; List of demands from opponent needs to be prepared. See to that you reach win-win for both partners. Give and take! This is a human mechanism called “reciprocal action”. Money is not everything, instead of giving a discount you may add a supplementary product. Be flexible!
7. Finnish; Settle the agreement. First make sure to have real eye contact and then summarize what you have agreed upon. To summarize is what drives the meeting forward.
8. Follow up; Important to follow up with the opponent in between negotiation events. This is when you build your relationship before next event.
1. Initiative; If coming from your opponent, buy yourself time by asking if you can get back later, for example at 2 pm. If coming from you, be prepared.
2. Preparations; Set goals at 3 different levels - best, okay and worst outcome. This gives you space for negotiation.
3. Greeting; Build a good atmosphere by sending a “I want us to reach an agreement” message to your opponent. All your expressions (spoken language, vocal, body language, etc) need to send this message.
4. Introduction; What are the rules – how long will the negotiation take part? Take acceptance!
5. Demands; Ask the opponent. Practice your lines/questions before the meeting. What is the goal, budget, is there any other person that has the final mandate, etc?
6. Agreement; List of demands from opponent needs to be prepared. See to that you reach win-win for both partners. Give and take! This is a human mechanism called “reciprocal action”. Money is not everything, instead of giving a discount you may add a supplementary product. Be flexible!
7. Finnish; Settle the agreement. First make sure to have real eye contact and then summarize what you have agreed upon. To summarize is what drives the meeting forward.
8. Follow up; Important to follow up with the opponent in between negotiation events. This is when you build your relationship before next event.
Wednesday, February 23, 2011
0.5 – 5.0 method
I once had a sales coach that taught me a method to base customers visit or sales calls on. He called it the 0.5 – 5.0 method and it works so that you follow a scheme to eventually get an acceptance, for example on an order. Subsequently you continue with conducting a needs assessment or a presentation of the company and the products.
0.5 Waking the interest – Have you ever had this problem with…?
1.0 Aim and objective – Then I have this solution for you.
2.0 General problem picture in third person – I’m often in contact with customers who have a demand for…
3.0 Our solution, the product – For these type of customers we have this solution…
4.0 References – Our customers are…and for them it is important that…
5.0 Acceptance question – Is this important for you, too?
The method is off cause not applicable to all customer situations. Sometimes for example, only 2.0 – 5.0 are applicable to the situation. As my sales coach pointed out “our customer shall enjoy doing business with us, not only meet with us”.
0.5 Waking the interest – Have you ever had this problem with…?
1.0 Aim and objective – Then I have this solution for you.
2.0 General problem picture in third person – I’m often in contact with customers who have a demand for…
3.0 Our solution, the product – For these type of customers we have this solution…
4.0 References – Our customers are…and for them it is important that…
5.0 Acceptance question – Is this important for you, too?
The method is off cause not applicable to all customer situations. Sometimes for example, only 2.0 – 5.0 are applicable to the situation. As my sales coach pointed out “our customer shall enjoy doing business with us, not only meet with us”.
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