Let that be a lesson to all.
Crestfallen. That is the emotion which befalls those who fall short in their packaging and delivering promises. The Australian Federal Treasurer, Jim Chalmers, recently experienced reality in the aftermath of delivering the annual budget.
Chalmers was beaming during his 40-minute address to parliament, seemingly expectant of sweeping bows of gratitude (from all taxpayers for a $300 relief on power charges) and the applause and endorsements of economists, bankers, business owners and commentators. Shades of repeated annual general reports by the chief executives of public listed entities.
Reality can and did strike hard. The specifics of the budget simply did not resonate with the targeted audiences.
A $2.8 billion “surplus” was quickly discounted and contrasted to a combined deficit total of around $100 billion in the ensuing four years.
Increased expenditures and a universal $300.00 credit on power bills were recognised to be expansionary. At best, the fiscal outlays were considered to be factors that will put a ceiling on the prospects for lower inflation rates, and therefore reduced interest rates.
“Higher for longer” was a chorus-line that echoed throughout society at large. Cost-of-living expenses seemed to be locked in for some interminable time. No counter assurances were forthcoming from the Federal Treasurer, the Prime Minister, the government, bankers, economists and commentators.
DRIVING FORCE
Confidence is a widespread and influential imponderable that contributes to and directs economic activities. Politicians, economists, business leaders and marketers need to recognise, respect and implement the underlying principles of :
Managing Expectations.
At present, most things in established commerce seem perfect, change will require investments to be on hold in marketing, advertising, promotions, sales and service. It equates to the fiscal policies and initiatives of the Federal Budget.
Therefore, funds and resources are required, risk tolerated, and campaigns supported with commitments which convert potential into reality, transactions, contracts, revenue and profits.
Doing, or being able to do little or nothing generally results in well, nothing. Not at all an enticing and rewarding outcome.
In the political arena it is important to strike a sustainable balance between fiscal and monetary policies. Increasing outlays that are deemed to be excessive has implications and ramifications for monetary initiatives, like interest rates, bank equity ratios (which affect funds available for loans) and bond rates/values.
Businesses need to contemplate and determine which business development initiatives will generate improved cash-flows in the immediate, intermediate and longer terms. Identifying, isolating and deleting those that don’t is imperative.
Achieving marketing and communication cut-through is essential. Establishing benchmarks is fundamental. Closely monitoring such must be a given. Collectively, these practices are characteristic of the philosophy centred on:
Plan long. Manage short.
Momentum, critical mass and competitive edge are internal forces that are required in insipid and inert marketplaces and economies.
In short, one needs to make it happen. Reliance on others, governments in particular, is ill-advised and typically disappointing.
APPLIED ECONOMICS
It is one thing for a Federal Treasurer to be pleased with himself in delivering an annual budget. The true measure of success is the pleasure, excitement and delight experienced by those for whom the communications are intended.
That is a message in itself to business owners, managers and marketers.
Further pertinent case studies are the lessons learnt by economists. Individual and collective forecasts and prognostications are consistently wrong, or in a kind nuance, off-mark. The only point at issue is the measure of just how wrong they are.
A majority of the population, consumers and clients have not read or seldom, if ever, refer to economic textbooks. The Phillips Curve is widely unknown, not understood, not deemed relevant by many and therefore, not directly influential.
In recent times an increasing number of economists are embracing and utilising the term behavioural economist. Well-intentioned but lacking. An absence of detailed, extensive and comprehensive interactions, studies and analyses of behaviour reduces the label to be superficial.
Success needs leaders to reach out, connect and engage with those intended to be informed, influenced, satisfied and fulfilled.
In short, the focus of communications and initiatives must at all times be what is in it (advantages, benefits, rewards) for those in the audience.
It is they, the recipients, who should be beaming, not necessarily the communicator.
BETTER UNDERSTANDING
FOOTNOTE TO TREASURER:
It is important to “put a smile on the face of taxpayers”, rather to have one on one’s own.
Cut-through in advertising, marketing and communication is not solely dependent on channels, media, genre, creativity and originality. Relevance and resonance are fundamental elements of effectiveness.
Recipients are the final arbiters. They apply many and differing criteria. They are not always right, but they are never wrong.
Poor responses or a lack of response are typically good measures of just how well “cut-through” is being achieved or cut down is being experienced.
One is well advised to review all current marketing, advertising and communications through a differing perspective. That is, customers and clients .
Walk a mile in their shoes. The insights and overviews will be invaluable. Resultant refinements are typically effective, enhancing impact and accelerating positive responses, demands, transactions, margins and profits.
Barry Urquhart
Consumer Behaviourist
Marketing Focus
M: 041 983 5555
E: Urquhart@marketingfocus.net.au