STARTING AGAIN, FROM A STATIC STATE

“Lock-downs” stop most things.

Inertia prevails.

Momentum is lost. Critical mass is, well, less critical.

“Bunker-down” is a common call. It’s not necessarily a lot of fun. Social distancing does that. The greater the distance, the less the socialising.

Inveterate networkers suffer withdrawal symptoms. Ironically, income streams, for many in that subset, remain constant.

Business leaders are busy. They are re-evaluating self-worth, priorities, effectiveness and preferences. Revelations abound.

PLAN, TO BE READY

Now is not the time to sit back and wait for

the business cycle to evolve, for upturns to

emerge and for “green shoots” to grow.                   

Consultations are underway for the reorientation

of communications, remodelling of content,

realignment of contexts and the rescheduling

of specific, progressive and sequential campaigns.

 Strategic input is providing the bases for briefings

of the tacticians – advertising, publications and promotional consultations.

Opportunism is being discarded, and rightly so.

Brand damage must be avoided. Preparations for

an early and immediate start are imperative. 

“I CAN SEE CLEARLY NOW”

Across commerce, reflections proliferate. Revelations have emerged. Inefficiencies have become obvious. Bloated corporate structures suddenly appear to be self-evident. “Lock-downs” do that.

Past practices are being questioned, remodelled and as a result, potential productivity enhancements have accelerated.

The virtues of introspection.

A MODEL OF “NEW”

New realities each unique and individual, are being conceptualised. Sadly most exist in the mind of a few, not shared or clearly articulated.

Some have been reduced to plans, charts and procedural manuals.

All are untested, because in periods of “lock-downs” there are few active clients and customers.

The gaps between service providers and intended recipients, which have long existed and persisted, seem, if not larger, then certainly more pronounced.

On the other side of the fence, or perhaps the desk or counter, clients and customers are making their own reassessments. Some are subjective, intuitive and founded on “gut-feelings”. Others are, and will be the product of online and in-field research, undertaken during this period of self-isolated down-times.

New, tempting buying search routines will be ready for testing. Past loyalties and relationships will be challenged, compared and subjected to comparative-analyses.

All pieces on the “chess board of corporate life” have been moved. As a consequence, creativity and originality, in isolation, will not be enough. Relevance is imperative.

The finish line – to profits, growth and market share is known. Little appreciation is given to the new starting line. Therefore, the ability to reach achievements and fulfilments will be compromised.

Possessing in-depth knowledge of clients and consumers will provide substantial head-starts.

HANDICAP EVENT

The annual Melbourne Cup turf event is the race that stops the nation. It is a handicap event.

A “locked-down” economy has similar characteristics. On this occasion foremost among the handicaps will be superficial knowledge of primary, secondary and tertiary target audiences.

The over-reliance on price discounting, multiple sales events and expensive saturation advertising campaigns will also weigh heavily on potential for the immediate future.

Continuity of, and persistence with, past and existing campaigns are proving to be sub-optimal, if not outright inappropriate, and therefore failing.

Emphases on products, discounts and sales events will not resonate with many clients and customers.

Changed circumstances dictate the need for changed contexts, contents and rationales, if interest and purchase considerations are to be stimulated, and for transactions to be concluded.

STRUCTURE, DISCIPLINE

To gain and to sustain competitive advantage, it is important to avoid the temptation to discuss issues with peers, competitors, substitutes and disruptors.

“Group Think” commoditises most things. – Bland  beige colours the business landscape.

Differentiation is now more possible than in recent times.

From the advantage-point of being a facilitator to a member of business development audits, reviews and refinements, I believe enthusiasm is justified for those who formulate, document and implement a “Starting Again” set of strategies.

The component parts are: 

·         Reflection

Conduct a detailed strategic audit of the “fit” of the entity, its products, services and apps in the new marketplace. 

·         Introspection

Undertake a detailed, moderated analysis of past and persisting structures, practices and policies. Surgically cauterise excesses. 

·         Projection

Self-determine preferred channels, opportunities and marketplace gaps. Fill them rapidly and comprehensively. Invest wisely and confidently. Remember to follow-up and follow-through. 

·         Effect-ion

Remember, one is rewarded with what they do, and deliver.

Talking about things soon dissolves into inaction. 

·         Inspection

Install monitoring, support and refinement infrastructure to achieve and to sustain momentum and critical mass. 

BACK TO WORK

“See you on the other side” is a phrase that shakes the faith of some.

Therefore, remain humble. Do not assume the mantle of “Homo Duess” – human god.

When the Australian Prime Minister and Chief Medical Officer make repeated references to when we get to the other side of the COVID-19 pandemic, it is reasonable to accept that the nation, its people and commerce sectors will survive, persist and subsequently grow.

Preparation in terms of time, resources and funds will be, in time, rewarded.

Time and timeliness are key measures for starting again, particularly at the conclusion of economic peaks and troughs.

Barry Urquhart

Business Workshop Facilitator

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

ISOLATE, SOCIALISE SELECTIVELY

Don’t be unsociable.

Commerce, like society and families, is dependent on social interactivity. It is indeed the lubricant that ensures the wheels of business keep turning.

Now is not the time to figuratively and literally “self-isolate”. Interacting with oneself can be very lonely, unfulfilling and not at all profitable.

Removing oneself from “social settings” reduces, but does not eliminate risk. Only sealable, unimpeachable “bubbles” will do that.

The reality and challenges confronting us all are how best to maintain, review, refine and recalibrate social interactivities.

Many past and present practices will be rightly identified as being ineffective, inefficient and, in some instances, dysfunctional.

The use and frequency of social media in all its forms (blogs, texts, emails, videos and TEDx etc) will doubtlessly be reined in. So too should the deployment of communications in mass media (print, television, radio and out-of-home).

Personal visits and “calls” should also be scrutinised. On balance, many of those are more “social” than they are commercial.

STRIKE A BALANCE

In the prevailing “over-communicated” marketplace, much of the communications are screened, blocked and filtered by technical means, and by the psychological process of selective perception.

Self-evaluation of the relevance, benefit, advantages and rewards inherent in intended missives will raise questions about the need for, and value of messages.

 Increasingly, “less” will genuinely be “more”

Power words, many of which are evocative, emotional and graphic, will be invaluable when utilised discerningly.

Eliciting responses will be rightly rated highly and prioritised, in favour of simply attracting and resonating with targeted individual group-members and audiences.

Responses signify commencement of the social interactivity process.

A COMMON VIRUS

Much of the well-intentioned communications which have been generated, transmitted and distributed as a consequence of the COVID-19 (coronavirus) pandemic centred on the communicator rather than the recipient. So unsociable!

Greater understanding and empathy would have re-oriented the content to the interests, perspectives, aspirations and needs of those receiving the unsolicited missives.

Too much is as equally annoying, frustrating and ineffective as too little.

WHAT DOES IT ALL MEAN?

Understandably, many people are confused. The contentions, propositions and conclusions that are being so readily shared are often conflicting, qualifying and contradictory.

Little wonder, many are left to contemplate, who do I believe?

Moreover, the rapid rate of changing circumstances quickly makes key messages obsolete. Single spheres-of-influence are often countering their previous advice.

Inertia is widespread, and enjoys understanding and sympathy among the masses.

TOO MANY SOURCES

There is widespread evidence of creeping COVID-19 (coronavirus) news fatigue. The available information seems to be incomplete and often contradictory. Its seeming exponential growth-rate exceeds that of the virus itself.

The mass and social media are feeding the frenzy and, arguably, exacerbating the circumstances.

A nominal plaintive call for a little self-isolation from the multiple channels of unedited, unfiltered and non-verified raw information is evident among an increasing number of exacerbated individuals and group-members.

PLAY YOUR PART

Among the truly great actors, scriptwriters, producers and directors, there is a consensus. That is, brevity of words projects a compelling message. In the current marketplace when addressing the COVID-19 (coronavirus) pandemic, such a philosophy and set of practices may not win awards, but they will enhance trust, respect, integrity and value.

Captain Albert Jacka, was the first Australian recipient of the Victoria Cross. His actions on the beaches and battlefields of Gallipoli, Turkey, in 1915 were astounding.

Those standards were maintained on the Western front in Europe, where he was awarded the Military Cross and Bar. These were the hallmarks of a true leader, whose men followed unquestionably.

Bert Jack was a man of few words. When he spoke, people listened, responded and followed.

That message and those lessons retain currency in the current society. Be measured, modulated and purposeful. Above all, be social.

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

TRUST YOURSELF – PLAN FOR IT

Three categories exist for business strategic plans:

·         Desk top

·         Top drawer

·         Bottom drawer

In the third instance, references to the document are sparse and typically arise at times of crisis. Ironically, use is therefore random and not at all planned. Top drawer strategic plans suffer from being out-of-sight. Therefore, they are often out-of-mind.

Desk top plans have a conspicuous presence. “Dog Eared” pages suggest repeated and regular referral, use and refinement.

Overall these distinct categories reflect more on the business owner and user rather than on the veracity of the content.

In recent times, Australians have been exposed to countless life lessons, numbered among which is the importance of planning.

There is little or no immunity to Covid-19 (coronavirus), catastrophic bushfires and widespread extended drought.

PLAN – POSITIVES

In times like those, others may blame, doubt or dismiss you. Self-belief, discipline and focus can, and typically do, overcome adversity, particularly when supported by a structured, integrated and documented plan.

Contingency initiatives are usually implied rather than detailed among the shorter-term tactics.

In the three categories detailed above, the urgency in addressing and redressing the key causes may well have elapsed for the time being. They will remain primary unresolved imperatives.

WORKING PLANS

Recovery is another matter. It is an immediate priority, with longer-term realities and consequences. Sustainability is one important measure.

The rush to cut costs, seek government assistance and implore widespread emotional and transactional support from the broader public is understandable. Each is reactionary and short-term, and will be largely ineffective.

Extensive rainfall will, and has, extinguished bushfires, stimulate pastures and regrowth. Vaccines will remediate the health considerations of the coronavirus. Very rapidly the 24-hour news cycle will have the media move on, change focus and report on new headlines.

It is typical in such circumstances that management teams are inclined to decide to “put aside the strategic plan” and “to start doing things”. Poor choice! That is the very time that the strategic plans should be produced, analysed and be subjected to a forensic audit. Within its pages are the anchor points for culture, strategies, tactics and datum points for crisis management initiatives.

Therefore, detailed reviews, revision and refinements of strategic plans are required. Each of the strata will require analysis and, most probably, extension. Maintaining alignment between each will be important.

Too often, in times of “crisis”, short-term tactics are introduced, with little consideration of intermediate (objectives – 3-5 years), long-term (goals – 3-5 years and strategic- cultural (mission statements – 10-20 years) aspects.

Natural outcomes are road-blocks, a loss of competitive edge, compromised branding and reliance on price discounting.

LOSS OF MOMENTUM

Many of the effects of cash-flow interruptions and downturns are conspicuous and immediate. Impacts on momentum and critical mass are less apparent in the shorter term, but profound over broader horizons.

Re-establishing and rekindling momentum require capital, resources and time. Expeditious turnarounds are typically pipe dreams, evidenced by spates, and accelerating rates of business closures and failures.

Under-resourced entities, geared to a reliance on consistent and growing positive cash-flows, are soon found to be exposed and wanting. Margins of error evaporate, lead-times are truncated.

Vacant premises and FOR LEASE signs are proof-positive of the cycle, and indicative of a lack of planning.

INTEGRATION, DEPENDENCY

The attainment and fulfilment of short-term targets should, indeed must, lead to contributions to the intermediate-term objectives.

Otherwise they raise questions on the purpose, the objectives, goals, mission and philosophy of the entity.

Objectives are fundamental benchmarks for marketing. They define absolute and relative market positioning, competitive standing and presence in the marketplace.

They contribute to and quantify the relevance of the entity, its brand name, products, services, supply chain and people.

In times of crisis, when the emphasis is on survival and cash-flow, these dimensions are assigned little consideration and emphasis.

And so it is, as others are losing their heads, those who have taken the time and allocated the resources to formulate, document and implement genuine integrated and structured strategic plans, typically enjoy the fruits of their labours and endeavours.

The philosophies and mission usually are retained and respected. Complementary contingency plans are outlined and energised.

The foundations of self-belief, discipline and focus lie with the documented plans.

Inevitably, recovery is quicker, more successful and consistent with the overriding values of the entity.

Strategic plans. Hardly light reading. But important desktop references.

Barry Urquhart

Strategic Planning Facilitator

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

GOOD BUSINESS IS SIMPLE… BUT NEVER EASY

Lost opportunities.

Too often, in-store and on-line, after all the hard work in attracting, qualifying and developing prospective transactions, sales are being lost.

Processes, policies, information demands and countless, seemingly, meaningless barriers, filters and impediments – individually and collectively – are sufficient for intending clients and customers to depart, or for them to leave abandoned on-line, partially filled shopping trolleys.

Typically, competitive pricing, quality and value have peripheral roles in these frustrating, and costly, experiences.

This is opportunity-cost personified. The loser, the intending seller, is often the perpetrator.

GOLDEN RULE

In the prevailing, testing marketplace, the hard work is in stimulating interest, and generating consumer/client traffic in-store, on-line and via the phone.

Having captured both the presence and attention of those who are the source of revenue, it is important that the buying experience and journey are seamless, simplified, truncated and enjoyable. 

Demands for additional information, assurances, guarantees and costs (foremost of which are freight expenses and credit card penalties) are sufficient to temper interest and demand.

Low and unacceptable sales conversion ratios cannot, and should not be rationalised, or tolerated by dismissing some consumers as “window-shoppers”, “carpet-crushers” and “tyre-kickers”.

Corporate and network-wide pledges to customer centricity count for little when compromised by bureaucratic baggage. Clear out the clutter.

ADD-ON VALUE

Throughout the current price-sensitive economy, little sustainable competitive advantage is likely by an additional 5% or 10% discount in prices.

Customers and clients consistently assign premium value to their own time and convenience.

Therefore, the Marketing Focus mantra does have universal relevance and application:

                         Expedite, to Excite

In many instances, the innovations, changes and operational disruptions incur little or no direct or indirect costs.

Moreover, once known, experienced and appreciated by customers and clients, the positive expectations are such that the business opportunity funnel is opened up to encourage and welcome more prospects.

In short, productivity (often measured in terms of velocity and volume) typically contributes to enhanced efficiency and effectiveness.

It is a two-sided coin, enjoyed by those who are buying, and by those who are selling and servicing. Now that is value.

BIASED TO ACTION

Embracing the philosophy concept of customer obsession implies that there are no compromises or qualifications in pursuit of exciting and delighting customers.

What is most lacking in the pursuit of attaining this idealised state is urgency, immediacy and action.

Obsessions are, or usually need to be fulfilled NOW.

Therefore, internal reviews of policies and practices should necessarily focus on WHY? and HOW? WHEN is not an issue.

Moreover, orientations to WHY NOT? and NOT POSSIBLE? are misplaced and self-defeating.

To some, a bias to action will involve risk. Rightly so. Managing risk and risk tolerance are the arts of leadership. The alternatives include closing down, or disposing of the business, products, services and team.

LEAKY FUNNEL

Business opportunity funnels have become increasingly leaky during the past 5 years. The trend and rate will increase, in some instances exponentially, unless and until such time as a tight focus is developed and implemented to become increasingly biased to action. That is, to simplify all practices, increase interaction with and engagement among existing, prospective and past customers.

For some, that will involve re-invention. In a rapidly changing marketplace, self-induced obsolescence has many virtues. It is usually better to make yourself obsolete, than to allow competitors and substitutes to do so.

OVERCOME RESISTANCE

Resistance, and push-back to strategic and structural change is expansive, particularly among those who are comfortable with the status quo.

Like just the 1960s British rock band of the same name, the ranks of status quo are thinning. That which is left is aging, rapidly.

Therefore, self-belief and inner-drive are to be recognised, applauded, supported and celebrated.

In law, the onus of proof lies with the prosecutors. However, throughout commerce, the prosecutors of disruption, innovation and change can rightly expect and demand of the nay-sayers to provide the proof and substance resistance to simplicity. Moreover, they have the backs of customers and clients.

There. Simple. But, never easy. And, it’s on-going.

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

HIGHER DEALS ARE REWARDING

“Hi, service”

 Interesting salutation. An introduction to good, positive service is a new experience to many consumers in the current price-discounting driven marketplace, in which a race to the bottom is common.

 High service is an even more exhilarating encounter.

 Recognition by consumers of an abundance of enthusiastic, qualified, trained, informed and accessible front-line service providers registers immediately, and establishes heightened expectations. A key point of differentiation is also registered.

 Increasing numbers of business leaders are now able to quantify, and thus justify, the financial benefits of investments in additional people. Wages bill increments of as little as 2% above industry, sector, network and company averages and standards are consistently resulting in leveraged enhancements in sales volumes, and in repeat customer visitations.

 Doubters remain, but they are being marginalised and sidelined.

 BUSINESS LEAKAGES

 The adherents and promoters of high service readily acknowledge leakages to lower-price and on-line competitors. Sharing consumer wallets is a reality. So too is the need for competitive house brand products and ranges. It’s simply a matter of determining, managing and maintaining a balance.

 Specific and overall margins do not need to be compromised. Economic viability is sustained by disciplined leadership and a sound business model.

 Projecting and enunciating the values and virtues of brand names remain an essential component of marketing attractive value packages.

 HEALTHY RETURNS

 Retail pharmacies are a case in point. The philosophies and practices of “forward pharmacy” and personalised “therapeutic counselling” are maintained and supported in high service outlets.

 Where available, compounding chemist services emphasise the respect extended to on-site individualised medical care. It is a further distinguishing offering, which extinguishes the fires of price competitiveness.

 Introduction of private consulting and counselling rooms has been warmly received by the broader public.

 A suite of complementary health services can be, and often is, selectively available.

 Noticeably, a key feature of nominated providers is the human contact between the customers and the front-line service providers.

 In these strategic initiatives, there are no shortcuts. The recruitment, introduction, training, development, and the delegated authority accorded to the appropriate people are important. So too are their age, qualifications, experience and remuneration: No short-cuts here, either.

 Not surprisingly, collectively, little things mean and result in a lot.

 TASTE OF SUCCESS

 In many respects, modern society is designed by its coffee culture. Outlets and baristas are ubiquitous.

 Service stations and convenience stores are making concerted efforts to intrude and benefit from the product/service mix.

 The need to self-serve is typically countered by significantly lower prices, often as little as 25% off the neighbouring full-service coffee lounge.

 Customer counts usually favour the latter alternative. It is difficult to articulate and monetise the appeal and value of interactions and the customised coffee provided by “my barista”.

 There are some things money, and savings, can’t buy.

 THE SUBJECT IS NOT SUBJECTIVE

 The current business landscape is populated by countless coaches, mentors, evangelists and counsellors, and, yes, speakers.

 In a nation of 25 million Australians, all are speakers, to a greater or lesser extent. Very few are paid, or worthy of payment to speak. Indeed, many are happy to speak for no fee, to simply have an audience.

In a disturbingly high percentage of cases, the fee paid is an accurate reflection of the value provided.

 Often, the subject is the speaker, and his or her pursuits, or past achievements. Being among the tens of thousands human beings who have scaled Mt Everest, or being the last man standing in an ice skating race, or having won the Brownlow Medal in AFL football (or equivalent) some 25 years ago, may be interesting, but seldom relevant and beneficial to those in business who will never pursue such endeavours.

 Gratifyingly, there is a notable trend to seeking out, briefing and utilising the few conference keynote speakers who undertake extensive background research, formulate targeted presentations and customise the content and focus to ensure those in the audience enjoy considerable advantage, benefit and reward.

 The value of the high-service addresses and the facilitation of interactive workshops evolve well beyond the day and the event. Both high-service formats are labour-and time-intensive.

 BEWARE TEMPTATIONS

 In highly competitive marketplaces, confronted by literally gale-force economic headwinds, it is tempting to join the pack and drop prices, retrench service providers and reduce expenses.

 Longer term advantages favour the implementers of high-service standards. The evidence, while not overwhelming (primarily because of the lack of high service adherents) favours the brave.

 On-going refinements to philosophies, policies, practices, strategies and tactics are often non-negotiable. Change is omnipotent.

 Striving for, attaining and maintaining improved productivity provides its own positive outcomes. Those can be achieved, packaged and promoted within a high service business model, regardless of the marketplace, products, services, applications.

 A sobering realisation is that competitiveness, market share, sales, margins, profits and customer loyalty are optimised. That is, maximisation as a key performance indicator is a questionable matrix, which may not be ideal, but is preferred.

 High service is a service to providers and to consumers, and is valued accordingly.

 Barry Urquhart

Conference Keynote Speaker

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

GO FIGURE… OR IS THAT, GO REFIGURE?

Decomposition.

The breaking up of markets, consumer groups, communications and value-propositions is a complex, often tortured process.

However, the rewards, upsides and insights gained can be substantial.

New perspectives and understandings can be gained, enabling enhanced efficiency, effectiveness and productivity in all things marketing.

HIGHER, AND HIRE

Fashion brand, Country Road, whose genesis was in Melbourne some three decades ago, has recognised, and is now responding to changes in consumption patterns.

It has entered a strategic alliance partnership with a finance-based hiring company to offer certain ranges for short-term hire to consumers who are seeking changing wardrobes and fashion-statements.

Few would have thought that the word “change” could so readily infiltrate the use, and outlays, for personal presentation “packaging”.

Statements like “my favourite… (garb)” will doubtless be cast aside by certain market segments and select consumer audiences.

It is an exciting prospect, and will reconfigure the measures of value, and space usage. In isolation, price tags will become marginal reference points.

Concepts of ownership will need to be recalibrated.

Personal budgets too, will need to be reviewed, refined and re-assessed.

PUT ON THE LEASH

Dog owners are often compelled by local government regulations to restrain their pets by having them on a leash, when going for a walk.

Many business lessees feel the same constraints are applied to their operations by the provisions, and costs of property leases. There has been a noticeable increase in the use of shared and casual occupancy throughout the commerce fraternity during the past decade.

It has developed a whole new sector in property management, with public listings of entities being planned and implemented. Initial responses from investors have been encouraging – but qualified.

The example of the We Work in the United States of America highlights that the concept may not work for all.

However, the property leasing and occupancy landscape is changing rapidly and retail networks need to be re-assessed.

BALANCE SHEET RE-WEIGHTINGS

The balance sheets of many contracting entities, particularly those seeking to service the volatile mining industry are weighed down with large inventories. Much of that capital is under-utilised, inert and subject to widely fluctuating need and demand.

That is an expensive burden to bear, particularly in periods of economic down-turns, which can extend for years.

Removing the costs (and value) of rolling-stock from the financial records can, and does, enhance key performance ratios and returns. These are typically reflected, positively, on share market prices.

Original equipment manufacturers are rapidly recognising the value and advantages of complementing the recognised and trust brand names, with financial instruments which impact on the balance sheet, and the bottom line. They have found the offers are particularly appealing to financially constrained start up, and green-fields operators.

Gearing up with motor vehicles, torque, can influence greatly acceleration and overall performance.

And it’s not all talk when new vehicle manufacturers are tapping into new sales opportunities in a largely contracting marketplace.

Overall, during 2019, new vehicle sales in Australia have fallen around 7%. Consumers, and to a certain extent, corporations, are retaining ownership of their vehicles for longer periods.

Reportedly, more than 70% of new vehicle dealerships are unprofitable in trading.

Cash-flows and margins are best from service, maintenance, insurance and finance revenues.

Not surprisingly, more and more vehicle manufactures are marketing extended, capped-price servicing of new vehicles (up to 7 years), which are purchased as a means to stimulate interest, visits, sales and relationships.

Ongoing personal contact and interactions with customers are significantly extending the duration and worth of customer-dealership relationships. Those reconfigurations are having impacts on corporate cultures, policies and practices, to the benefit of all.

ACCOUNTING FOR SOMETHING

The broader public accounting fraternity is under challenge. Increasing numbers of clients are expressing concerns about fee totals.

Overall, the services being provided and charged for are recognised to be costs.

Value, advantages and benefits are difficult for some clients to identify and monetise.

Discounting and negotiating lower fees are therefore often foremost on the agendas of accountant-client meetings. The outcomes are unpalatable for the professional accountancy principals.

A noticeable change is the introduction and integration of lower-cost and lower service-standard bookkeeping offerings. It satisfies the expectations, wants and needs of some.

Refining and repackaging value-propositions is an alternative.

Segmenting and differentiating professional services, including auditing is another.

Deleting provisions like business planning, human resource consulting and financial planning have also been identified by some to be attractive and advantageous for both clients and accountancy practices. Establishing, or retaining, arms-length relationships can, and do, have strategic upsides.

It simply involves the discipline of reviewing, assessing, determining and implementing reconfigured suites of services.

BREAK IT, BREAK IT UP

Established, often proven, business practices are not, and should not be beyond review.

Breaking up policies, reconfiguring value-packages and decomposing databases can often reveal new opportunities and possibilities.

Invaluable insights and overviews are gained as a consequence of posing the question, WHY? 

Initial individual responses tend to be catalysts for further innovation and creativity. Energetic and enthusiastic buy-ins are inevitable, often self-generating consequences.

It just takes the drive to adopt a different view. So, don’t exclaim: Go figure

Instead, Go Reconfigure.

Barry Urquhart

Facilitator of Business Development Workshops

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

AUSTRALIAN CONSUMERS UPSTAGED BY ADVERTISING ALGORITHMS

It had to happen. Customer-first has been usurped by the prevailing marketing and advertising mantra: algorithm-first.

The rapid and ongoing migration to on-line, social and digital media is being driven by increasing amounts, and percentages of marketing and advertising budgets being expended on inducing recognition, endorsement, likes and benefits accorded by platform algorithms.

The algorithms have become the effective gate-keepers for access to prospective clients.

Investments in search engine optimisation and advertising on specific platforms involve the need to please, and be in accord with the parameters, word-usage and use-frequency dictated by the inanimate, all-powerful algorithms.

In essence, platform rankings are the consequence of a “auction-process”, in which the owner and operator of that platform is financially rewarded and advantaged.

It’s a lot like property listings. They are one measure. Another is property sales. Only the latter pays the bills.

Further financial contributions and utilisation of specific platforms can effect higher, but not exclusive rankings.

 Exclusivity, monopolisation and solus exposure are today, in the on-line and digital era, redundant and obsolete concepts, goals, aims and realities.

 In short, participants of on-line channels have lost control over their marketing, advertising, communications, promotions, merchandising and sales. In large measure, these are determined at the discretion of the host platform.

 SHARE VALUE

 At best, companies, brand names, products and services get to share presence on platforms. Rankings are variable and seemingly forever changing.

 Select direct advertisers enjoy preferred, but shared locations. Those able to leverage a presence through effective, integrated, on-going and often resource-intensive and possibly expensive search engine optimisation processes can have the benefit of being on the landing page, in company with competitors and substitutes.

 Brand recognition, differentiation and preference are difficult to achieve in such circumstances.

 Price can be, and often is, the sole point of difference.

 MARKETING LORE: When all other things are equal, price is the only differentiator. 

The hurdles for new-entry offerings, or for an established brand seeking to enter new marketplaces are formidable.

 Establishing aided recognition, unaided recall, interest, preference and loyalty is best, and most readily achieved, when the company that owns the rights of the brand name, product, service and application has, and can exercise, control. That is, has been, and in the foreseeable future, will be achievable in the mass media channels of television, radio, print and outdoor.

 COMPLEMENTARY MULTIPLE CHANNELS

 Having an active and effective presence on-line, and in the digital channels is important, if not imperative.

 However, ideally and optimally, it should be phased, with mass media being initially utilised to project the core and essential values of the brand name and corporate culture.

 There are no binary choices. One channel should, enhance the others.

 The fixation on, and domination of, on-line platforms are compromising mass media and impinging on the value and effectiveness of brand names.

 Assessment of allocation between available media is subjective, determined by individualised circumstances and influenced by the intuition, experience and expertise of the professional marketing communications and business leaders.

 Justifications for sustaining or increasing investments in on-line and digital channels based on the premise that the impact and resources are quantifiable have been found to be wanting. Impressive quantums of “hits” are often matched with disturbing, and disappointing high numbers of “misses” and “missing”.

 Among the leakages is the degree of presence, impact, recognition and recall of brand names. A significant percentage, often a majority, of consumers exhibit and declare loyalty to websites and platforms.

 DIRECT RESPONSE

 Many digital media practitioners and advocates applaud the direct response nature of on-line channels.

 A major qualifying consideration in those contentions is the lack of free, open and self-controlling direct access to targeted primary, secondary and tertiary target audiences by the participating marketing entities.

 It seems the leveraging point and fulcrum, are controlled by the platform owners, who charge handsomely for access, with little or no accountability when measured on the bottom line.

 SALES CONVERSION

 A key metric in performance measures is the sales conversion ratio. That is, converting suspects, prospects, contacts and “hits” into sales, revenues and profit.

 Consistency and continuity, two attributes that are difficult to sustain on numerous platforms, will deepen and lengthen relationships between suppliers and customers, when follow-up and follow-through procedures are implemented. 

 Repeat, loyal and referral businesses are optimised when they actually exercise control over their communication channels in manners that respect direct access and response.

 On-line and digital media are effective for opening the doors of opportunity. One should never forget that an increasing number of on-line channels are now recognising how important a brick ‘n’ mortar presence is in closing the sale.

 Direct, personal interactions between consumers and clients, and front-line providers are still fundamental in delivering the philosophy:  

Customer-First 

CONCLUDING COMMENTS

 Upon reflection, and on balance, the power relationship between entities and on-line platforms is not balanced.

 A huge measure of control is being exercised by the channels. In varying degrees, companies, brand names, products and services have ceded control, discounting their innate value.

 Alternative strategies are available, and needed.

 Barry Urquhart

Managing Director

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

SERVICE SHORTCOMINGS

Managers are coming up short on service.

A recent series of studies by Marketing Focus has revealed that more than four in five (82%) of business owners and managers contend that their operations consistently meet or exceed customer expectations.

That figure is in stark contrast to the 44% of customers and clients who feel that their service expectations are met. A further 7% expressed the belief that their expectations were consistently exceeded.

Therefore, a daunting 49% of clients regularly experience unfulfilled needs, wants and expectations. Moreover, they are among the cohort of consumers, individuals and corporates who have screened and deleted those service providers as unworthy of providing the goods, services and applications that are sought.

Clearly, inflated measures of self-belief among senior ranking business team members are not contributing to, and sustaining relationships, repeat business and loyalty. Indeed, the discrepancies between customer expectations and the standards of service being delivered are contributing to the substantial measures and instances of “customer-leakage”. That is, lost opportunities for revenue, profits, competitive advantage and revenue growth.

COMPOUNDING FACTORS

Exacerbating the circumstances and the very real costs of this service deficiency is the fact that front-line service providers are not aligned with business owners and managers in their assessments of meeting customer expectations.

Some 69% of those frontline service providers contend that customers’ expectations are consistently being met or exceeded.

The variance in the perceptions held by senior team members and front-line people is a consequence of two key contributing factors:

POINT-OF-PURCHASE TECHNOLOGY

Front-line service providers are sensitive to the increasing use of on-line channels by consumers – before entering premises, and while advancing the purchase process in-store.

In the latter scenario, service providers contend that they are disadvantaged by consumers having real-time access to key and determining purchase information and intelligence.

A significant majority of this sub-group strongly advocate the issuing and use of real-time applications to better service, to respond to and match tech-savvy consumers, customers and clients.

AUTHORITY

Those directly interacting with customers believe that they do not have sufficient authority, and therefore discretion, to make decisions that will address and fulfil needs, wants and demands.

Delegated power has the capacity and track-record of enhancing morale, motivation and employment tenure of those committed to a service culture.

But there is little evidence of this capacity being employed to the intermediate to long-term advantage of the company.

Trust in the integrity of team members is consistently well rewarded.

ON BALANCE – A DEFICIENCY

An objective assessment of the widely prevailing circumstances highlights the need for better engagement with and understanding of existing, prospective and past customers, greater delegation of authority to front-line, service providers, the provision of, and access to in-store real-time technology, development of a comprehensive, extensive and consistent service culture and the implementation and support of “stretch-goals” customer service training.

In short, a significant percentage, if not a majority of entities, big, medium, and small, in private and the public sectors will benefit substantially, and profitably, from embracing entity-wide service excellence cultural initiatives.

A measure of the urgency for review and action is the disparity between the perceptions and beliefs of consumers, senior management and front-line service providers.

The enormous gaps between the respective stakeholders are voids into which customers, revenues, profits and competitive advantage are falling. Sadly, the causes are not readily recognised, particularly by senior management and business owners.

WHO’S RIGHT?

Customers aren’t always right. But they are always the customer. They are the source of purchase decisions, revenues, and word-of-mouth recommendations and referrals.

Being in-step and in-sync with those whom you wish to serve is fundamental.

Perhaps entities and their service providers – read: every team member – need to focus less on processes and resources, and more on outcomes. When they can be collated and quantified into consumer advantages, benefits and rewards, a broader understanding will evolve. Service will be recognised and respected as a way of thinking, rather than a way of doing.

MANAGEMENT FOOTNOTE:

For business owners and senior managers, a reorientation from “I think we meet or exceed customer expectations” to “I know first-hand what our customers expect, experience, value and how we rate” will be a big step forward – a stretch goal, if you will – to achieving and sustaining service excellence.

An initial step would be embracing the concept and principles of “MBWA – Management by Walking About”. This is a wonderful way to become closer to customers – physically and emotionally.

Barry Urquhart

Service Excellence Keynote Speaker, Facilitator and Author

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

REMEMBER: STICK TO THE KNITTING

The year 1981 seems so distant and passive. A lot has happened in 38 years – technology, innovation, creativity, the rapid evolution of the internet, Microsoft, Apple, Amazon, iPhones, digital media and disruption.

 Some 7.5 million people around the world rushed out and bought a business book,   “In Search of Excellence”.

 Authors Tom Peters and Bob Waterman jnr were consultants with the Boston Consulting Group and had studied the supposed best-run companies in the United States of America. The focus was narrowed to twenty entities. They then identified, isolated and analysed twelve common key features and characteristics.

 Among the key dimensions the philosophy:  

            “STICK TO THE KNITTING” 

That is, to recognise, respect, refine and adhere to that which one does best. The inherent discipline avoided, or minimised, the distractions and allure of expanding product/service lines, activities and markets. 

 A MATTER OF TIME  

Among the profiled companies was General Electric (GE) which at the time manufactured, distributed, sold and serviced aeroplane jet engines, high-order medical equipment, refrigerators, household white goods, credit cards, finance and insurance services.  

Chairman and President, Jack Welch, was held up to be an outstandingly successful business leader. His books on leadership, management and entrepreneurship sold millions of copies globally.  

For formal and informal students and practitioners of commerce, Jack Welch was an authoritative sphere-of-influence.  

He was foremost in taking a company first established by Thomas Edison to manufacture, distribute, retail and service incandescent electric lights, to being a global leviathan operating in many sectors, regions and nations.  

Considerable wealth was created. In relatively recent years, Jack Welch has retired, and GE has lost around 95% of its share-market value. Companies, brand-names, products, services and supply chains have been closed, liquidated, merged and sold-off.

 With the effluxion of time, the advantages, benefits, rewards and economic sustainability of specialisation and sticking to the knitting became apparent.

 Contemporary General Electric, a much smaller, focused and disciplined trading entity is now pursuing organic growth, within strict philosophical and cultural parameters.

 PRINCIPLES APPLIED

 In Australia, evidence is mounting that between, and within sectors, categories and professions, companies, firms and groupings are applying the same or similar templates.

 Woolworths, the largest supermarket network in Australia, has decided to separate and/or dispose of all or most of its interests in service stations, liquor stores, hotels and gambling machines.

 It is an extension of the, doubtless, painful, and expensive decision to cease operating the Masters hardware, retail chain.

 Woolworths does supermarket retailing well – better than most, if not all local competitors.

 Concentrating its resources, focus and capital on what it does best, provides scope to leverage the outcomes, to the benefit of shareholders, customers, suppliers, associates and its extensive workforce.

 Shorter supply-chains and tighter, integrated internal communication channels facilitate more efficient and effective operations, and provide the basis for heightened defensive strategies.

 A MOMENT TO REFLECT

 During the first week of July, 2019, Lee Iacocca, the former President of both Ford and Chrysler, died at age 94.

 Infamously he was removed by Henry Ford II, and subsequently took up the top position with Chrysler, which had failed financially. Chrysler was the first U.S. enterprise ever to receive federal funding support to survive.

 Lacocca accepted an annual base salary of $1.00 – plus, performance bonuses.

 He marshalled what resources he had, was the catalyst for a new range of Chrysler vehicles and fronted the mass media advertising campaign.

 His message, a challenge, was captivating:  

            If you can find a better car, buy it.  

He stuck to the knitting. After the first year, the company returned to profit. He pocketed a $20 million bonus.

 Within a short period, the U.S. federal government was repaid, with handsome profits.

 Focus, discipline, pride and enthusiasm, hard work and customer care are profitable.

 Part of the Chrysler advertising message was the statement:

             There is only one thing more important than excellence… maintaining it.  

Telling, evocative and outstandingly successful.

 PARALLEL HISTORY

 Over time, Lee Iacocca retired, new management teams were installed and new cultures and philosophies implemented. Chrysler broadened its scope in its merger with Nissan and Renault.

 An initiative that failed and is progressively being unwound.

 CONCLUSIONS

 Growth, adaptations and globalism are, in their own rights and when applied judiciously and appropriately, laudable.

 Organic growth is typically slower than an assertive acquisitive pathway.

 When complemented, influenced by and contained within the parameters of sticking to the knitting, the prospects for sustainable success are enhanced.

 There is no single formula which can be, or should be applied to and by all.

 It is, however, an important step to excellence, and in maintaining it.

Barry Urquhart

Business Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

CAUSE FOR CONCERN

“Advertising is over half my problem” (Quote from a prospective client).

 Another half-truth.

 In this particular instance, like so many others, the advertising was a problem. However, it was, in reality, symptomatic of the underlying causal factors and therefore a product of inappropriate or mis-aligned briefings and orientations.

 Achieving “cut-through” and impact are becoming progressively more challenging. Communication channels, like the marketplace, are rapidly evolving. As a result, they are more complex, and in a range of circumstances, more fragmented and disjointed. The word and concept “synergy” seems to be limited to a power company which operates in Western Australia. (And, let’s not venture into commenting on its standards, consistency and universality of supply and distribution – let alone costs.)  Alas, all too often, “1+1” is regularly coming up short of 2.

 Consumers and clients tend to have reduced attention-spans, they exercise more readily selective perception whereby large blocks of communication – which are deemed to be irrelevant – are filtered or blocked.

 Typically, blame for advertising under-performance is attributed to the communication channels or advertising agencies. Wrong.

 Access to targeted and preferred audiences can be achieved, but result in little or no responses, if the context is not right.

 PROPER HORSES, FOR COURSES

 The lack of “fit” in the marketplace often relates to a company, brand name, product, service and, yes, category.

 That can and does have implications for defining (or redefining) target audiences, product/service configurations and timing.

 “Outdoor furniture” is a fine example. It is a category which has some unique (and interestingly, self-induced – if unintended) – characteristics demand is typically short-term, with high peaks and low troughs. Price is a key determinant in product and outlet selection.

 Why? In essence, to many consumers the term “outdoor furniture” equates to summer. So in Australia that means consideration for, and contemplation of purchasing products in that category is, (at a stretch) limited from November to March.

 Accordingly, advertising – regardless how creative or price-oriented – will not readily resonate with and impact on targeted primary, secondary and tertiary audiences during autumn and winter periods.

 Mind-sets do constrict interest, demand, sales and relevance. Therefore, effective repositioning of the category - “outdoor furniture” - is needed to promote scope and opportunities for increasing sales throughout the four seasons.

 REDEFINE AUDIENCES

 At differing times, endeavours to communicate with select demographic and psychographic profiles may well be futile or marginalised unless, and until, all factors and variables are aligned.

 Individual consumers fulfil multiple roles in the contemporary pluralistic society. That is; she may awaken next to her spouse or partner and be a “wife”, she then prepares breakfast for the family as “mum”. Driving to work she is another “commuter”, before arriving at work, to undertake her role and obligations as a “boss” or “employee”.

 On the way home, after a full-day’s work, she calls into the supermarket and completes the task of a “shopper”, before participating as a “team-member” in a local sporting club.

 Thus, the self-image and role-specifics of a prospective outdoor furniture buyer may, and probably will, differ.

 Our research has verified and identified that key point, together with prioritised purchase criteria that are applied, buying “outdoor furniture”, or alternatively repositioned product categorisation.

 STIMULATING INTEREST

 Developing awareness and sensitivity of often unrecognised needs is an important component of the communication mix.

 The actual products or categories may not be primary purchase items. They can be, and often are, dependent, subsequent or complementary acquisitions.

Establishing and profiling such value-packages tend to de-emphasise price sensitivity, demands and expectations.

 Alas, the four “P” components of the selling philosophy – Product, Price, Place, Promotion – have been eclipsed, again.

 Advertising may be an element in the mix, but it is questionable that it is “the” problem.

 STEPS TO SUCCESS

 Certain key aspects of the communication and marketing disciplines, when developed in sequential order enhance impact, resonance, effectiveness and sales. They include: 

• REFINE TARGET AUDIENCE PROFILES

  Extend consideration beyond demographic and psychographic profiles. Identify, isolate, analyse and focus on relevant lifestyle role-plays. This will personalise headlines and messages.

• REPOSITION BRAND/SERVICE/COMPANY CATEGORIES

  Broad-brush generalisations typically lead to commoditisation.

  “Department stores” are passé, outdated and hold little interest for many. Discount department stores suffer from an image and positioning problem, which is reflected in poor and falling sales and profits.

• CONSIDER COMPLEMENTARY PURCHASE OPPORTUNITIES

  Not all products, services and brands are, in isolation, a primary purchase item.

  Their value is enhanced when clustered with other, often more dominant merchandise:

  “Would you like … with that?” is a well established proposition that elicits positive responses in sufficient numbers and percentages, to increase the bottom line.

• RECALIBRATE THE ADVERTISING

  From a “clean slate”, decisions need to be made about the content, the headline, context, channels and scheduling of the advertising/communication mix.

As implied in this sequential overview, advertising can prove to be (an important) footnote, rather than a problem. 

Barry Urquhart

Conference Keynote Speaker

Marketing Focus

M:        041 983 5555

L:         (08) 9257 1777

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

THE ROAD TO RUIN

Ironically, street names are not good at addressing marketing, selling and merchandising issues and challenges.

Business failures, vacant premises and “tired” looking operations are typical consequences, and are the manifestations of inaction, and of many well-intentioned initiatives which simply focus on the wrong metrics.

Endeavours to reignite and re-emerge Parramatta Road and Oxford Streets in Sydney, Chappell and Lygon Streets in Melbourne, James Street in Brisbane, Melbourne Street in North Adelaide, or Rokeby Road in Subiaco, South Terrace in Fremantle, Oxford Street in Leederville, Albany Highway in Victoria Park and Beaufort Street (Northbridge, North Perth, Mt Lawley and Inglewood) in metropolitan Perth have certain common factors.

Roads, streets, avenues and boulevards can be long, transcending suburbs, localities and even regions. Therefore, business clusters, compositions and groupings can, and usually do differ along the one arterial transport network. Hence, no single profile or brand accurately and appropriately projects a compellingly attractive image. Temptations to visit are soon overwhelmed by confusion and multiple – if not conflicting – value-offerings.

It has been said many times (arguably unfairly) that the best thing about Victoria Park is Albany Highway… because it takes you out of the township and has you end up some 400 kilometres south at picturesque Albany.

Atrractive and appealing precincts, centres, squares and destinations are seldom defined by their main street.

Moreover, images, expectations, perceptions and selections are developed, and determine decision-making long before the consumer or consumers negotiate a given road-way.

MYOPIC FOCUS

Great opportunities are often forsaken, but await those who are insightful on the scope to project specific, relevant and resonating brand names for discrete business clusters and limited localities.

Bugis Street and Orchard Road in Singapore have been long eclipsed as the addresses for bargains, discounts and fashion. Individual, differentiated and branded destinations enjoy consumer interest, visits and transactions.

Even Sunset Boulevard in Hollywood has seen the sun go down on its boom-times. And on a broader scale, Route 66 in the United States of America remains in name only in most places. Tumbleweed and run-down vacated communities are stark reminders of that which was once dominant.

ROAD-MAP TO SUCCESS

Local government councils, chambers of commerce and business interest groups are right to be concerned about tough times for local businesses. The key and most effective triggers for positive prospective customer responses are well beyond street names, customer service training and the conduct of street-markets and erection of pop-up bouncy castles, for kids.

Creative, original and challenging rebranding will have people going to their mobile phones, GPS and wallets to consume – and not to commute.

For interviews:

Contact:                    Barry Urquhart

                                    Marketing Strategist  

                                    Marketing Focus

Mobile:                      041 983 5555

Email:                         urquhart@marketingfocus.net.au

Office:                        (08) 9257 1777

GENERIC BRANDS MAKE OTHERS GERIATRIC

Converging forces.

Increasing acceptance, indeed preference for house-brands and generic products, services and apps are symptoms and consequences of tectonic shifts in marketplace dynamics. It’s a phenomenon which transcends categories, sectors and regions.

Projecting, protecting and deflecting brand names are becoming increasingly important, and difficult to both achieve and sustain.

Repeated exposure to non-branded or house-brand alternatives, with lower prices, satisfying quality and reassuring value is desensitising consumers and clients to the implied and perceived innate advantages, benefits and reassurances of recognised, respected and traditionally preferred brand names.

The progressive devaluation of long-established brand names is being accelerated and compounded by the increasing use of online channels and forums, like Amazon Marketplace and eBay.

Consumers are inclined to go online and nominate product/service types and categories. Requests for information about, and the sources of, say, coffee are received by, collated, analysed and segmented by algorithms. This form of artificial intelligence may be unfamiliar with the number “43” or not recognise and associate “George Clooney” with the product, category or implied brands.

Put simply, algorithms do not recognise, respond to or understand many verbal nuances. Therefore, brand selection is determined by factors and influences well beyond the control and input of the individual and brand name owners, and numerical weightings can, and do, determine, and therefore nominate channel-owner, (read: Amazon, eBay, Facebook, Twitter, etc) generic and house-brands. 

Branding’s visual, verbal and special cues, which impact on and influence consumer perceptions, preferences and selection are typically neutered in social media. So anti-social!

Advocates for artificial intelligence will rightly argue that the arithmetic formula applied by algorithms produce rational and statistically validated decisions and outcomes. That belies the reality that most buying decisions are heavily accented to emotions, perceptions and subjective determinants.

For the algorithms, it’s a black or white issue. Consumers may recognise that their lifestyles, preferences and consumption take place in a world of “grey”. Brand owners and managers will quickly find themselves in purgatory. 

The need to be, and the lure of being present online is understandable. Attendant costs and loss of control are often difficult to quantify.

EVIDENCE-BASED REALITY

A recent significant Australia-wide study by a global finance entity concluded that house-brand products in supermarkets were growing in both volume (up to 4 times that of established independent brands) and market-share.

Cost-of-living expenses, increasing utility costs and stagnant incomes were identified to be key influencing variables in this situation. On balance, that represented only part of the story. The migration of window-shopping to online channels and the presence of its virtual assistants, Siri, Alexa, Nina and Bixby were not considered.

At Easter time, in Christian-based communities, Cadbury’s purple Easter eggs have an inextricable integrated presence in the minds of children, parents and chocoholics at large.

“The Battle for the Mind”, a concept so strikingly and articulately expressed by marketing leaders, Jack Trout and Al Ries back in 1969, has been largely marginalised by mindless artificial intelligence, algorithms and the like.

WHERE’S THE VALUE?

These patterns transcend categories, nations and regions.

Economic headwinds are suppressing the sale of new motor vehicles around the world. Preferences for specific brands and models remain.

However, a seismic shift is being witnessed in the servicing and maintenance of vehicles. Generic and house-brands, or non-original equipment manufacturer parts are being accepted by increasing numbers and percentages of consumers.

Similar circumstances are evident in sectors, like earth-moving equipment. Brand names Caterpillar, Komatsu and Hyundai dominate. Notwithstanding that dominance, acceptance of “un-branded” parts is increasing at a rate.  

BRANDED ANSWER

In an emerging and surgent sea of house-brand products, the value and integrity of recognised, trusted, respected and preferred brands stand apart and proud in a cluttered, commoditised marketplace.

Several recent case studies highlight the point.

The desires, and directions of manufacturers, distributors and wholesalers of certain high-profile pet foods, and breakfast cereals to increase both wholesale and retail prices were rejected by two major Australian national supermarket chains.

Supplies ceased, and stock soon sold out. Consumers were confronted with empty shelves.

The key lesson learnt was that consumer behaviour reflected the attitude that the customers, typically the female head-of-the-household, could do without shopping for those selected items from Coles and Woolworths. To sate the appetites and the preferences of pets and children, there were no acceptable alternatives to the nominated brands.

Confused? Don’t be. The presence and importance of house-brand products will continue to grow. The best and most sustainable defence is ongoing and integrated investments in brand names. The optimum is to establish, and have the brand name accepted as the generic reference of the product, service, application and company.

Those brand names that readily come to mind include:  

·         Hoover

·         Nugget

·         Vegemite

·         Google

·         Windows

·         iPhone

·         Amazon

·         and ... (complete the list – hopefully with your brand or brands)  

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

“KNOCK-OUT” PLANNING – MEASURED, BALANCED AND DISCIPLINED

Muhammad Ali had the capacity to land a telling blow.

None more so than when he said:

            “The best-laid plan is forgotten the moment the first punch hits.”

In business, many strategic plans are soon forgotten, filed or sidelined when competition intensifies, cash-flows dry up, client and consumer confidence contracts and banking credit policies are tightened.

Long-term visions shorten to myopic perspectives. Expansive scopes narrow, and positive responses turn quickly to knee-jerk reactions.

Alligators, elbows, draining and swamps readily come to mind.

IT’S NOT ALL RISK MANAGEMENT

The current and recent business landscapes are littered with morsels and entrails of liquidations, failures, foreclosures, forced acquisitions and collapses.

It is an unseemly and ongoing calamity.

Retailers, fashion distributors, car dealerships, new-home builders, property developers, contract and digital/on-line service providers are well represented in the unenviable lists. Few sectors, professions and disciplines are precluded. What are the dominant common factors?

Among the public listed entities, it is apparent that the striking commonalities are in the composition of Boards of Directors. Lawyers, accountants, bankers, merchant bankers and fund equity managers are well represented, often being an overwhelming collective majority.

Understandably, the skill-sets that are foremost at those boardroom tables and in deliberations are financial prudence and risk management. Mitigation strategies can, and do save money. Sadly, they do not address the need to make money.

Rapid change, innovation, creativity, disruption, technology and encroaching artificial intelligence are unrelenting. The impacts are fast, widespread and accumulating. Customer-facing managers and service providers experience are sensitive to those dynamics. But sadly, are seldom or poorly represented on many Boards of Directors. Redundancy and obsolescence seem inevitable consequences.

Business is an art-form. Its language is heavily nuanced. That should be reflected in the wording and nature of documented strategic plans.

Sales margins, profits and market share can be very short-term.

“Good”, appropriate plans are a balance between financial prudence, risk management and strategic direction. The latter attribute and feature typically comes from the input of experienced, qualified practitioners who have specific industry/sector/profession skills. It is “They” who are so often unrepresented.

DON’T GET LEFT BEHIND

The broader retail sector represents a telling case study. Among the trail of high-profile, established public-listed retailing operations which have been subjected to liquidation in recent times are Maggie T, Roger David, Pay-Less Shoes, Toys R Us and Ed Harry.

In most instances, there was a noticeable lack of industry “street-smarts” among the board members. “Capital” ideas are not limited to funds and funding.

Fashion retailers around the world have been found to be floundering in the presence of fast-fashion operators, like Zara, H & O and Uniqlo. Productivity, velocity and volume among the latter-set have dynamic and appealing business models. Business operators and consumers win.

Laggards soon lose touch with the marketplace, and with previously loyal customers. Market leadership in past years and decades counts for little.

Those factors, more so than the intrusion of on-line sales and the distribution of digital marketing and AI (Artificial Intelligence), expose long-established businesses to the very real prospects of decline, failure and liquidation.

Conversely, many highly prospective start-up entities fail because of the time taken to formulate, document and implement an appropriate business model.

Inputs from accountants, patent lawyers, funds managers and passive seed-capitalists typically don’t address the very real need to plan for success, and are huge drains on scant resources.

BUSINESS, ACTION, TACTICAL OR STRATEGIC PLAN

Over four decades it has been apparent to us that many plans labelled “strategic”, fall well short of that benchmark.

A recent review of a local government strategic plan showed that, at best, it was an action plan. The emphasis seemed to be on “doing things” rather than addressing needs, fulfilling expectations and achieving desirable outcomes.

The response from the local government executive was direct, striking and disturbing. That plan complied with the accepted template, which determined structure, topics and essential focus.

Compliance was essential, to secure state government funding for the documentation of the plan.

So, from the outset and before any scripting, the plan was destined for failure, under-performance or non-performance. Some reassurance appears to be gleaned from the fact that all, or most, peer local government strategic plans would be identical, or similar.

Therefore, among many, not all, local government municipalities and involving multiple interest groups and people, expect a lot of activity. “Doing things” is the forte of the plans. Achieving outcomes seems to be outside the scope and the planning template.

PLAN TO PLAN

Planning is an imperative. Reducing visions, intent, opportunities and priorities to writing tend to contribute to the realisation of favoured outcomes – if formulated astutely.

Within the military context, an overwhelming majority of strategic plans (not battle plans, which are essentially tactical) are not about winning wars. Rather, most seek to avoid conflict and casualties.

When conflict is inevitable, casualties are minimised. The first Iraq War, during the 1990s, resulted in success for the allied forces and loss and destruction for the Saddam Hussein-led Iraqi forces.

Indeed, General Colin Powell and his field commander, General ‘Stormin’ Norman Schwarzkopf, caused fewer than 250 deaths, some 70 of which were “misadventure” from “friendly fire”.

AND THE POINT IS …

When the marketplace and economy at large turns tough, there is an understandable need to sustain income, competitiveness and strike a measure of stability.

That does not diminish the need for effective, genuine strategic planning.

             Ready. Fire. Aim.

This is a dangerous, high-risk philosophy, which typically bears a high cost of casualties and failures.

Those with experience on the battlefields and shop floors have much to contribute. Analysing spreadsheets, with an emphasis on the bottom right-hand corner entry of “internal rate of return” are deficient.

Sting like a bee. Float like a butterfly. Don’t retreat to your corner, and throw in the towel. Above all, remember, not everything goes to plan.

Barry Urquhart

Facilitator – Strategic Planning

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

NO IFs..., BUTs OR MAYBEs...

(Apology, Rudyard Kipling)

When all around you are losing theirs, keep your head.

Royal Commission notwithstanding, the relevance and currency of those words extend beyond Australian bankers, insurance agents, financial planners and mortgage brokers.

Every person, brand, company, product, service, application and concept is being subjected to scrutiny, audit and review. Transparency and accountability lead the agenda of most aspects of business.

Personal, corporate, individual and collective worth are being questioned, and rightly so. It should have been for ever thus. Many customers, it seems, have been short-changed.

RESPONSIBLE

At times like these it is important to accept responsibility. Resist taking the blame in isolation, particularly when all seem to doubt you. Whether it’s internal or external to a company, it is important that leadership is apparent, consistent, articulated, supported, applauded, endorsed and celebrated. That attribute appears to be in short-supply at present. “Sitting on the fence” and “spinning wheels” do not reflect leadership. “Follow me” is a style which is back in vogue, and is re-emerging.

The “road ahead” will have many twists, turns and peaks to conquer. Milestones should be checked off, quantified and maintained.

Allowances will need to be made for “doubting Thomas’s”, of which there will be many. Self-belief will be, is, and always has been a virtue. Self-monitoring provides reassurance.

The immediate challenges for nations, regions, sectors and professions will be formidable. Remedial actions will be draining. Therefore, it is imperative that one overcomes tiredness. Ultimate success and progress will have their own rewards.

VIRTUES

At no time should lies be contemplated, or tolerated.

It is unconscionable, to charge for services which have not been sought, have been paid for but never utilised. Issuing or maintaining life insurance policies for the dead is simply beyond this world.

Be true to yourself. To do otherwise is to cheat yourself.

The evidence during, and the consequences since the conduct, conclusion and release of the report from the Australian Banking Royal Commission is sufficient to identify the extent, toxic nature and adverse manifestations of lies, many of which were ingrained in corporate cultures.

Those will not die, and the perpetrators will have to live with them and themselves.

There are no shades of grey in lies. It’s a matter of black and white.

A COOL HEAD

In moments of anxiety, panic and concern a “cool head” is a magnet that facilitates cohesion, integration and focus. For some two decades home builders, property developers and real estate agents were too involved in reaping the fruits and benefits of continuing “boom” times.

Returns from an investment in taking the time to contemplate and to ponder the question, “what if”? were not recognised, nor respected. The consequences are typically immediate, sustainable and profound.

“Buts” and “Maybes” need to be considered in context. They are seldom barriers or impediments. Rather, they demand justification, and that is reasonable and ultimately reassuring. There are lessons aplenty awaiting those in the broader retail sector.

Imagine the scope possible for the Brexit negotiations between Britain and the European Union, and within Westminster. Accountability and justification apply to all.

Funding, construction and the administration of a wall on the border between the United States of America and Mexico may well be another issue.

In that instance key questions relate to the aim itself. Some things are not negotiable, as evidenced in the attitudes of the US President and the Democrats in Congress. What is the aim? Raw political power. The proposed wall is simply a means to that aim.

GOOD TIMES AHEAD

With the effluxion of time, good times will return.

In those periods, as now, it is important to not look or present “too good”. Talking too much will have little or no audience.

Don’t stop dreaming. However, dreams and their content must never become the aim.

And yes, think. Share those thoughts. Develop, refine, reinforce and extend them. But avoid the temptation to make them the final objective.

Innovate, create and simplify. Each is an essential attribute of disruption.

Don’t leave it to others to ask, “IF?”

RECALIBRATE

Volatility, toxicity and dysfunction are each components of the prevailing marketplace and, seemingly, the cultures of many entities throughout the world, across Australia, within communities and among peers, clients and associates.

At a time when all around you are losing their heads, a measure of stability, consistency and integrity is greatly valued.

A measure of balance will enable the “ship” to be steadied, a new course to be set and broad horizons challenged and conquered.

IF (only). Thank you Rudyard Kipling.

THE AUTHOR:

Barry Urquhart

Conference Keynote Speaker

Marketing Focus

M:  041 983 5555

E: urquhart@marketingfocus.net.au

L:  (08) 9257 1777

TRUST DEFICIT

Trust accounts for a lot in business.

Deficits and debts constrain or restrain many. Together, trust deficit spells trouble. It’s presence, consequences and manifestations are writ large in politics, banking, insurance, financial planning and commerce at large.

Forensic examinations and cross-examinations at Royal Commissions and political election results serve to highlight the philosophies, cultures, policies and practices which cause, contribute to and exacerbate the lamentable reality of trust deficit.

LESSONS LEARNT

The former Australian Prime Minister, Malcolm Turnbull, who was effectively removed from office by a coterie of “ungodly”, extreme right-wing, evangelical religious (principally back-bench) politicians was not necessarily liked, endorsed or supported for his policies. However, the process and seemingly personal and negative intent of his removal breached a lot of trust tenents throughout the electorate of Wentworth, in New South Wales.

A high-profile, independent, married lesbian was elected in the resultant by-election.

Prey tell.

It is doubtful that the original agitators and the new member sing from the same hymn book.

Unintended consequences abound.

BANKER DEFICITS

Australian banking Chairs and Chief Executives, present and recently past, have fast come to recognise the presence and nature of trust deficits. Many trust accounts were found to be in deficit, big time.

Remedial actions will need to extend well beyond funding deposits, and will reach out for considerable periods of time.

Interest will be high on all counts, and viewed from many perspectives.

The consumers’ assessments will not necessarily be black and white. Records will be tainted red. Just how effective was the training in emotional intelligence? On reflection, it’s not a dumb question. 

KEY PERFORMANCE INDICATORS

An interesting and significant oversight in the media reporting, analyses and commentaries is the absence of references to “goodwill”.

For those in small business, that often represents a large component of their retirement funding. Accordingly, it is a key attribute of financial and emotional well-being.

Discounted “goodwill” may well become the currency of the immediate future for many banks, bankers and financiers. As the individualists “move on”, their legacies will persist.

A SALE AT ANY COST   

Many people around the world have despaired at the reaction of U.S. President, Donald Trump to the murder, if not assassination of journalist, Jamal Khashoggi, Saudi Arabia-born, American resident and journalist.

Tolerating such, and not responding appropriately because of the possible consequences to commercial contracts between the United States of America and Saudi Arabia have been recognised as being unconscionable:

Clearly, a sale at any price is not acceptable.

“Fees for no service” and “costs to deceased former clients” are equally unpalatable.

Trust and integrity are two pillars of value. “Doing the right things” and “doing things right” should be instinctive, self-determining and self-monitored.  

Authority does not, and should not reside solely in executive suits, and company board rooms.

That implies a trust deficit throughout the organisation, and among the team members.

Consistency and continuity builds confidence and is integral to the “doctrine of no-surprises”.

Japanese workers, when asked who leads and runs “this business”, typically respond: “we do”.  No trust deficit there.

A LONG-SHOT

Many sectors, professions, entities, management teams and individuals have been found in recent times to be well behind the eight-ball. It will be a long, arduous way back … to winning the trust, respect and support of customers, clients, supporters, the media and public at large.

Each will need to dig deep, to reflect, objectively evaluate and determine the best means to establish, or re-establish belief systems which will define, project and sustain value.

Parameters will delineate that which are acceptable, and unacceptable.

Credits will need to well exceed deficits. Trust me.

CULTURE EATS STRATEGY

In conclusion, endeavours and initiatives intended to optimise, sustain and stabilise trust in, and the integrity of the business need to begin with the corporate culture. It is the very essence and being of an entity, and of its contributing people.

Training programs on customer service, leadership, efficiency and emotional intelligence suffer trust deficits if, and when the initial and primary focus is not dedicated to, and channelled on the overriding corporate culture.

Well-intentioned practical and tactical practices are dismissed, internally and externally, when they are not preceded, determined and supported by complementary policies. 

Barry Urquhart

Service Excellence Keynote Speaker

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

FIRED WITH ENTHUSIASM OR, BE FIRED, WITH ENTHUSIASM

Good intentions. Questionable execution.

A recent article in the Sydney Morning Herald reported about a letter distributed to Optus staff members by the Chief Executive Officer.

The message was succinct and pointed. In essence, it declared that those staff members who made customers unhappy would be sacked, if and when it was referred to the boss.

There appeared to be six degrees of separation with the mythical statement made by a Roman centurion:

            The whippings will continue until morale improves

WAS IT NECESSARY?

The need for such communication was questionable, – if the “right” people had been recruited, inducted into a universal, supportive team ambience – and then trained, developed and inculcated into a positive service excellence corporate culture.

It is a challenge. Some 24% of the adult Australian workforce has the appropriate psychological profile and attributes to be great service providers. Identifying, isolating, recruiting, inducting, celebrating and rewarding them is imperative.

Such individuals are self-monitors and consistent enforcers of the service standards of peers, and among their own internal customers.

“We don’t do things that way” is a very powerful statement of values, intent and self-worth. It comes naturally to a “driven” service provider.

CAUSE, EFFECT OR VICTIM

Telecommunication campaigns rank second highest among client (corporate) and customer (consumer) complaints received by regulatory authorities, after banks.

Everyone, it seems, has a story – or an experience – to share about a bank and/or a telco.

Significantly, in both sets of instances, policies, processes, procedures and technology are primary causes of annoyance, frustration, exasperation and yes, “unhappiness”.

In short, the cause and issue are often determined and experienced before personal interactions with a service provider. Indeed, they too may well be a victim of the operating business model which has been formulated, implemented and measured by the Chief Executive Officer, and the senior management team.

In facilitating interactive workshops for in-house sessions of “Service that Satisfies SELLS”, care is taken to explain the context and content when dealing with the typical “customer from hell”.

The issue at hand is often not the issue at hand is a key and fundamental principle.

Condescending and personal outbursts are often the consequences of unrelated, precedent experiences. In-store perceived or real deficiencies can be a trigger that compounds an earlier instance of road rage, a domestic argument or difficulty in finding a parking bay.

Sometimes, minor shortcomings and infractions are the trigger that “breaks the camel’s back”.

COMPOUNDING ACCELERATORS

The current Australian finance, insurance and service sector Royal Commission has revealed, highlighted, and forensically analysed appalling instances of the neglect, abuse and contempt of customers.

Deficient and inappropriate corporate cultures and staff member reward systems have been uncovered and roundly criticised.

Employment contracts have been terminated, and career paths shattered. Moreover, consumer rights have been profiled, and accordingly, expectations and demands have been heightened, sharpened and are being pursued by a more sensitised customer and client base. There has been a recorded 35% increase in complaints submitted to the telecommunications industry regulatory authority.

Clearly, for all and sundry, there is no place to hide. Service excellence is a non-negotiable performance indicator.

Fine-print provisions are no protection. Simplicity, focus, transparency and accountability are dominant driving forces in a challenging and challenged marketplace.

Concerns about the surging increments in the costs of power and public utility services including water, sewerage and rubbish removal… are being addressed by politicians, governments and regulatory authorities. Comparative cost charts are being drafted, distributed and applied to the advantage of the consuming public and business sectors. However, consumers’ satisfaction languishes.

Some 25 years ago Cathay Pacific, the Hong Kong-based international airline, learnt about and profited from the advantages of simplifying the value-package and retail cost offerings.

Little wonder, the success is in delivery.

The promise:

            “32 European destinations

            1 price”

Brilliant

Easy to comprehend, to assess value and to be satisfied. No-one was going to get a better deal. 

FOLLOW-UP, FOLLOW-THROUGH

A major concern and annoyance to customers is the lack of follow-up and follow-through once a sale or service issue has been successfully concluded.

A personal expression of “thank you” is a strikingly effective relationship enhancer.

Such sentiments and emotions are noticeably absent in the many transaction experiences that typify the prevailing digital marketplace.

CONCLUDING COMMENTS

For most entities there are eight to ten matrices that define a total positive customer experience (read: great customer service).

These arise before the initial face-to-face (voice-to-voice) interaction, and then evolve following the conclusion of the transaction or issue resolution.

Appropriately and consequentially applied, these factors ensure customer satisfaction and negate the need to distribute letters threatening the sack for infractions which, supposedly, result in customers being “unhappy”.

Structure, discipline, belief and enthusiasm contribute to a corporate culture which provides delight for all … Chief Executive Officers included.

SUMMARY OF KEY POINTS

1.    Document a detailed job description – specified duties.

2.    Script a job specification – outline essential human attributes.

3.    Recruit discerningly – match profiles with individuals.

4.    Induct into a comprehensive service culture.

5.    Support, reinforce and celebrate consistent service delivery.

6.    Empower. Delegate authority to self-monitor and self-regulate behaviours.

7.    Reward consistent standards.

8.    Embrace P.R.I.D.E. – personal responsibility for delivering excellence.

9.    Insist on “one-touch” service.

10. Provide on-going customer feedback, and training.

THE AUTHOR:

Barry Urquhart

Marketing Focus

M:  041 983 5555

E: urquhart@marketingfocus.net.au

L:  (08) 9257 1777

THE EMPEROR’S GOT NO CLOTHES

It’s time to step up, stand up, speak up and call out reality.

Put simply, the pursuit of, and responses to disruption, change, digital and social media are, in most instances, deficient, inconsistent, under-resourced and not transparent.

Let’s call a spade a spade…  

                        The Emperor’s got no clothes.  

Immense amounts of money, time, skills and resources are being invested with little-or no quantifiable and verifiable returns. Responses are typically mute. No one wants to admit to poor decisions or sub-optimal performances.

Everyone is doing it. Going with the flow has a touch of Group Think about it. Performances, good and bad, tend not to be standouts. Disturbingly, some things in commerce are simply not spoken about. The facilitators, designers and consultants are not being brought to account. Measurement seems to be difficult, if not impossible.

FRACTURED REALITY

The early signs of fracturing of newly conceived, designed and implemented business models are appearing.

Structures, numbers and budgets are being refined and refocused. The rapid migration to all things digital and on-line is experiencing a wash-back.

Value ratings of the mass-media – print, television, radio and outdoor – are being reassessed. As a result, better balances are being achieved.

Omnichannel and multi-channels are being subjected to makeovers in which integration between the parts is being prioritised as a primary goal.

Noticeably widespread, there is a lack of urgency. A lack of consensus in boardrooms and management suites exists. The score and scale of under-performance are not being quantified, monitored or discussed in open forums.

Based on readily available anecdotal evidence, it is reasonable to contend that over 80%, and possibly up to and including 90% of digital, social, on-line and disruptive strategies are not achieving significant and sustainable increments in demand, sales, revenues profits and customer satisfaction.

In many instances, difficulties are encountered in measuring outcomes and establishing cause-/effect relationships.

Many conclusions and decisions are being based on intuition – “feelings”. Questions abound. Answers are rare, and wanting.

The lack of definitive, concrete evidence obscures recognition of the need for immediate affirmative actions, with appropriate follow-up and follow-through.

Few, if any, entities, brands, products, services, apps, sectors and regions seem to be immune.

GAINING MOMENTUM

The “green-shoots” of revision-and review are becoming more conspicuous.

Major, mass-volume project home builders are now distributing letterbox drops. Imagine return to junk mail in the modern digital era.

The same entities were, and remain, at the forefront of the transition to social media marketing campaigns.

A general economy downturn, tightening of bank lending policies and competitive head-winds do not explain in full declines of 10, 20 and 25% in sales.

Creative licence is being applied to offers on renovations, property sub-divisions and joint-venture initiatives.

Interestingly, these do not appear to address consumer demands, but rather, seek to stimulate interest and intent through the supply of alternative thoughts. It’s back to the future, with greater use of traditional established mass-media.

Issues of risk, security, stability, fear and income-flows are not readily addressed or highlighted: Those alone temper positive responses.

CRITICAL MASS

The marketing of consumer household products is being subjected to the same rigorous review.

 There is a widening, pronounced emphasis on point-of-purchasing, promotional and merchandising endeavours. Old established and proven practices are new… again.

Sadly, price-discounting is common, suppressing the resultant benefits of increased volumes, with squeezed margins and thus, profits.

The importance and potential power of brand is being recognised. It is one attribute that has been compromised with a reliance on, and preference of on-line marketing and supply. In such circumstances, recognition and recurring transactions have tended to be assigned to, and enjoyed by the platforms.

“I buy on Amazon”, “we visit eBay” and “my preference is Gumtree” are typical refrains.

TAKE STOCK

In an over-communicated world and marketplace, information-overload prevails. Target audience segments turn-off. Selective perception filters and blocks the transmission of what may be considered compelling, attractive and relevant offers by the transmitters (manufacturers, distributors, suppliers and retailers).

Impressive access to huge mass audiences count for little, when recipients are not positively receptive.

Impressive statistics on “hits” can be meaningless, particularly when recipients delete the missives. A better, more meaningful classification would be “hit and miss”.

CLOTHING ESSENTIALS

In fashion, as in life and commerce, the cut of the cloth is important. So too is the fibre, but many social media, digital and on-line communication strategies are now threadbare.

Indeed, in some cases, notwithstanding rationalisations and justifications…  

            The Emperor has no clothes.

A full wardrobe, with considerations for various external factors, is now being reconstituted.

(Robes, tiaras and crowns may be a little premature...)

BACK TO BASICS

History is repeating itself. Calls to get back to basics are misplaced. Lessons from the past highlight the need to never leave or forget the basics.

Digital disruption, change, innovation, social media and on-line business are not the total answer. They are part of the drive, focus and solution.

At present the potential is not being fulfilled. In a figurative and literal sense, execution is the issue.

Barry Urquhart

Business Strategist

Marketing Focus

M:  041 983 5555

E: urquhart@marketingfocus.net.au

L:  (08) 9257 1777

THE FUTURE IS ’FUSION’

Get the word right. Fusion, not confusion, is the future for most sectors, products, services and entities.
 
Fusion is a concept – not a miss-spelling or a mispronunciation. Its relevance transcends sectors, product types and service categories. Its contemporary application is a back-wash from over-use and often misuse of market segmentation, which ultimately led to market fragmentation.
 
Micro-managing and endeavouring to consider nano-segments of populations are often unviable and ill-advised. Having the ability to discriminate and delineate discrete nuclear sub-groupings of existing and prospective customers is not enough justification.
 
The evolution of market-segmentation witnessed changes in focus, from demographic profiles (age, occupation, income, gender etc) to psychographics, which centred more on lifestyle pursuits and self-images.
 
Time–series analyses consistently highlight the fact that tightly profiled primary target audiences – centred on demographics or psychographs, and occasionally a combination of them – seldom represent more than 40% of actual customers and clients.
 
It is clear that many individuals and entities that do not “fit” the profile, aspire to do so, or related best to those who did.
 
Perceptions and self-images can - and regularly do - overwhelm reality. Thus, the statement:
 
                        The consumers’ perceptions
                        are the marketers’ realities
 
Look no further than the number and percentage of all-wheel-drive sports utility vehicles which never leave the bitumen, clog the freeways and create gridlock on the streets around schools at twice of each weekday.
 
TARGETED FUSION
 
In recent times many businesses and sectors have fallen victim to well-intentioned broadening of product/service mixes, as a means to generate additional revenue.
 
Incompatible customer profiles, needs, buying routines and purchase criteria have been significant filters and blockages to such endeavours.

Superficial analyses have not enabled appropriate delineation of underlying circumstances which determine and contribute to commercial success.
 
For example, the purchase of domestic floor coverings is typically taken at differing times and on distinct bases. Renovation is a complex web of decisions, purchases and endeavours: only those who truly know their customers can identify the distinctive nature of such.
 
Endeavours to integrate – fuse, if you will – newsagencies and pharmacies have in the main suffered similar outcomes. Increasing visitation rates to retail pharmacies or related operations do not ensure increased revenue in that discrete product mix.
 
Pet product retailers and veterinary surgeries are exploring related initiatives, with mixed and often imbalanced results, in which win–win is not a constant.
 
FUSION, AS AN INFLUENCE
 
Many restaurants and cafes have enjoyed success with fusion cuisines. They tend to avoid attempts to integrate and coordinate differing ethnic-based food-types. Indian, Chinese, Italian and Swedish is an interesting mix, but by nature is not fusion. To many consumers it is not a mouth-watering temptation.
 
Fusion, it seems, is at its best when it is an influence, not an ingredient or component of a mixed offering.
 
Consistency between signage, branding, ambience and menu is important. It may be unique, a hybrid and a reflection of the rich mosaic of life, society - and the globe.
 
Purity and consistency are idealisms from the past, but probably never realisable or existent.
 
The increasing presence of key influences, stimulates interests, establishes expectations and contributes to positive, enjoyable experiences: differentiates. All these are significant factors to stimulate returned patronage.
 
A DIFFERING PERSPECTIVE
 
In many respects marketers who seek to effect “cut-through”, resonance and relevance to discrete market segments endeavour to exclude certain consumer groups and sectors, as a means to achieve optimal performance.
 
Doubtless, the segmentation process precludes many opportunities, be they related to targeted audiences, product/service ranges and communication texts and channels.
 
Conversely, fusion tends to be more inclusive, embracing and capitalising upon prospects with secondary and tertiary factors. In short, an absence of delineation which is definitively “black” or “white” promotes the reality and prospects of that which resides in the broader continuum of grey.
 
UNDER THE INFLUENCE
 
In the prevailing marketplace it seems acceptable, indeed possibly preferable, to be operating “under the influence”. It puts a differing hue to being considered a conviction marketer.
 
Confused? Hopefully not. Just starting on the journey to a fusion future.

THE SAME OLD STORY - A DRAG ON THE FUTURE

It’s an all-too-familiar tale.

Mass retrenchments, closure of premises, product withdrawals, corporate restructures and, yes, mergers, acquisitions and liquidations.

The increasing trend and pace of shortening lifecycles for businesses, products and services reflect growing intrusion, impact and consequences of rapid change, disruption and innovation.

A recent public announcement by Telstra, Australia’s largest telecommunication corporation, grabbed international media headlines. It was to retrench some 8,000 staff members (around 25% of its workforce) and would split its structure. That caught the attention of millions and carried explicit and implicit messages to business leaders and owners – no-one or thing is immune to the evolving forces of the future.

SYMPTOMATIC CASE STUDY 

Telstra’s circumstances should not be reviewed in isolation.  They are symptoms of encroaching realities for many sectors, professions and entities.

Disturbingly, the manifestations, consequences and ubiquitous presence of dynamic change are not being recognised, respected and planned for.

Public references to “shock”, “unforeseen” and “unexpected” are sad indictments of inadequacies of the visions and analyses of both internal and external leaders and experts.

Ongoing, periodic objective assessments, audits and forensic strategic analyses should be mandatory and programmed.  They will not avoid the challenges of change, but will provide time for allocation of resources and priorities to address and redress their direct, indirect and cascading impacts.

Many supposed business and strategic plans have an orientation or sole focus on the future.  Some detail contemporary, comparative analyses. Often overlooked is the past, and the genesis of the entity, its product/service range and that of the sector in which it operates, and to those to whom it seeks to serve.  Therein lie many questions and countless answers.

THE ROOTS OF THE MATTER

Beyond the narrow focus of Telstra is a telling story.

Telstra in its own right is worthy of contemplation.  It has lost its dominating and monopolizing presence.

Selling off, and losing control of one’s supply chain is fraught with danger and has intermediate to long-term adverse consequences.  The “cash-rush” from the sale of its copper-based network to NBN (National Broadband Network) was not reflected in enhanced dividend payments to shareholders, or in the share price.

Indeed, the share value and, thus, the market capitalization of the corporation have more than halved during the two years to June 2018.

Telstra, which was consistently ranked (by capital-worth) in the top eight publicly listed companies on the ASX (Australian Stock Exchange) is no longer among the top 10.

Disposal of the former large revenue and profit generating Yellow Pages, appeared to have little impact on operations or value.

The roots of the Telstra family-tree appear to run deep.  A landline telephone network, copper wires, “Yellow Pages” and, yes, call-centres.  Each is reflective, and tied to the past.

TRANSFORMATIVE FUTURE

The prospects for growth, resilience and reasserted competitive advantage for Telstra appear to centre on new and substantial pillars, being:

• Foxtel

The corporation’s substantial shareholding in the on-line channels of Foxtel provides scope for penetration and access, making the categorization of being a telecommunications company somewhat redundant.

• Content

  The leverage point of its Foxtel investment will inevitably be the rich rewards possible with the content that is produced and transmitted, rather than the transmission channels themselves: like Netflix

• 5G

  It is conceivable, and reasonable, to forecast that the embracement and utilization of 5G technology will, to some considerable extent, make the NBN network obsolete, inadequate and relatively inefficient and expensive.

  So much for the projected investment of around $30 billion (currently $58 billion, and still counting) without the advantage and evaluations of a cost/benefit analysis by a Labor Party Senator and party powerbroker.  It seems the political party power was misplaced and poorly applied, and the numbers weren’t counted.

NATIONWIDE ISSUE

The lessons learnt from the Telstra scenario have widespread relevance, with significant structural and societal implications.  Look no further than the six largest corporations by market capitalization listed on the ASX.

Four are banks.  In 2017 Westpac celebrated its 200th year of continuous trade.

BHP, the recently rebranded “The Big Australian” is there.

So too is CSL, the former government-operated Commonwealth Serum Laboratory, which is the youngest, at 102 years old! It is also the best performing and has been the fastest growing of the six, since its public listing in 1996.

Collective ageless beauty? I think not.  It’s a cause for concern.

The contrast with the six largest public listed USA corporations is striking: Microsoft, Amazon, Apple, Facebook, Twitter and Google.

None were operating in 1985.  Four had not been established in the year 2000, and each has in recent times stated they do not need banks or banking to transact business.  They have their own payment systems.

And then there is Alibaba from China, which has similar attitudes and capabilities.

THE MESSAGE IS…

The restructuring, downsizing and thinning of Telstra is, it seems, a frontrunner for what will happen to the big four banks in Australia.

BHP is on the front-foot.  It is rapidly embracing technology, artificial intelligence and automation.

Shareholders will be gladdened with the prospects for increases in production, reductions in staff numbers, enhanced revenues, margins, profits, dividends and share prices.

Who’s looking back to the past? Hopefully, no one, other than to appreciate the path taken.

BE PROFESSIONAL

Casual or heightened interest in the Telstra, banking and mining industry case studies are insufficient for many public and private, big and small corporations, firms, partnerships and networks.

Detached observations need to be upgraded with disciplined, structured, committed and well-resourced engagement.

In recent times I have enjoyed the challenges, insights and positive outcomes from facilitating detailed strategic analyses and business development workshops for lawyers, accountants, dentists, pharmacists, engineers and veterinary surgeons.

A new dawn is awakening for each discipline.

The future has arrived and it’s spelled:

Digital

It’s time for all commerce to extract the digit.

Barry Urquhart

Business Strategist

Marketing Focus

Mobile:     041 983 5555

Email:      urquhart@marketfocus.net.au

Landline: 08 9257 1777

GUARANTEED – REALLY?

There are no guarantees. Money-back offers have been marginalised, if not neutralised. They currently offer little prospect of generating additional revenue, placating consumer anxiety, stimulating preferences and developing or sustaining relationships. To some they are considered “quaint”.

Their peak usage and effectiveness of such were attained in the 1980s, when consumers were less informed about quality, performance standards and were particularly less aware of, and inclined to exercise, consumer rights and entitlement provisions.

MAKE IT SIMPLE

Macy’s department stores in the United States of America were explicit, concise and unqualified in their promise:

            Satisfaction guaranteed. Period.

There were no limits, compromises or necessity to justify, and to submit written substantiations of claims. 

Recognition of, and respect for the life-time value of a customer dictated delivering the promise … - without question.

This practical, simple policy which genuinely empowered Macy’s service providers with the authority to provide satisfaction, and fulfilled a basic aspirational consumer goal, being:

Peace-of-mind

 It was a distinguishing and powerful point of difference, and competitive advantage.

Competitors were hesitant to duplicate the offer, fearful of the cost and expectant of abuse by consumers.

To an overwhelming percentage and absolute number of Macy’s customers the money-back guarantee was appreciated, respected and valued. Abuse of the privilege was isolated and very occasional.

NOTHING LASTS FOREVER

Over time other retail networks introduced, promoted and adhered to the ideals, led by Costco, Target, Nordstrom and Kohl’s.

Increasingly, consumer expectations changed and reached higher planes.

A competitive advantage was transformed into a basic essential. Not to do so precluded one from the prospective shopping list.

Many business laggards still suffer from a loss of opportunity, revenue, profits, repeat and referral business, as well as loyalty, - unaware or alive to the importance and centrality of explicit and implicit guarantees.

BEYOND WARRANTIES

Major motor vehicle manufacturers (for a long time) offered limited warranties related to the purchase of new cars.

Local dealerships extended similar, restricted assurances with the sale of used vehicles.

In the former instance, the deal was typically valid for 12 months or 12,000 kilometres – whichever lapsed first. For used vehicles the offer was three months or 3,000 kilometres. Measured peace-of-mind. 

In the current marketplace seven-year, unrestricted-kilometre guarantees – with capped service costings – are not unusual. For a significant percentage of consumers that represents a risk-free proposition, with the resale value of the vehicle is written down to nothing. Hence, any price paid is a bonus.

It makes for easier, - not necessarily easy, - decision making.

ASSERTIVE CONSUMERS

Contemporary consumers tend to be better informed, more discerning, demanding, price-sensitive and aware of their rights (and prepared to exercise them) than ever before.

Accordingly, guarantees are often considered to be a given. That is, implicit.

No one wants to, or indeed does read the fine print of (sales/supply) contracts.

Access to, and a preparedness to share experiences on social media have tipped the scales of balance and justice in favour of the customer. Guaranteed.

SOME THINGS CAN’T BE GUARANTEED

One particular Asia-based international airline would find it difficult to win favour and increased custom by extending a money-back guarantee.

Two high-profile instances, in which hundreds of passenger lives were lost, are indelibly imprinted into the minds of people around the world.

That makes guarantees non-negotiable and, possibly, inappropriate.

Safety is sine qua non (second to none).

The calendar year 2017 recorded the lowest global number of paying passenger casualties. It was not a perfect record, but did reinforce the high expectations about safety by intending and actual airline passengers.

Consequently, Qantas has lost any competitive advantage based on its safety record, and the endorsement of actors Tom Cruise and Dustin Hoffman in the movie Rain Man.

Sometimes things don’t need to be promised or guaranteed, - just delivered.

 Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au