Tag Archives: Glengarry Glen Ross

July 8, 2019 · 11:52 am

Two Reasons Why Marketing Fails at Small and Medium B2B Firms

failure-arrows There are two reasons why marketing fails most often at small- and medium-sized B2B firms. Either or both of these failings may apply to your situation:

You view marketing as business triage. Your company uses a collection of tactics (often labeled as a “marketing campaign”) only in response to a problem; typically involving the loss of a key client, or decline in revenue. When business is good, little or no time is invested in marketing. When business (inevitably) takes a dip, only then does marketing becomes a priority.

You expect marketing to deliver immediate results. Either because your company always views marketing on a “cause & effect” tactical basis, or because marketing triage must be applied quickly to revive an ailing company, the marketing function is given insufficient time to produce tangible results. It’s no surprise that marketing professionals have the shortest tenure of any corporate function in the asset management business.

The hard truth is that very few B2B business owners either understand the marketing function, or have the discipline to design, implement, measure and adhere to a consistent marketing approach that builds brand equity and market engagement over a sustained period.

To establish the infrastructure and internal culture necessary for the marketing discipline to succeed, we offer the following simple strategy:

Create a Written Marketing Plan. This need not be in a 3-inch binder; a two-page document is often sufficient. Include goals, strategies, responsibilities, timelines, budgets and ways to measure results. Without a Marketing Plan you’ll waste lots of time and money. And unless it’s a written document, you won’t have commitment or accountability.
Gain Senior Level Commitment. The honcho in corner office (which might be you) must understand, endorse and support the Marketing Plan. This involves more than lip service. If your Plan isn’t properly staffed and funded at the outset, there’s no real commitment to marketing.
Do a Few Things Very Well. Your marketing success will be based on the quality and effectiveness of a limited number of strategies / tactics. Firms sometimes go overboard, thinking there’s a correlation between the size of its marketing investment and business results. But less can often be more, in terms of marketing ROI.
Build and Nurture your Database. Direct and easy access to your company’s clients, prospects, referral sources and opinion leaders is essential. Without an email pipeline, the marketing value of the content you create is close to zero. If your firm’s thought leadership simply sits on its website or social media, you’re missing the opportunity to build relationships with your target audiences.
Create Meaningful Content. Self-serving, long-winded white papers and research reports have very limited appeal. Generate content that validates your company’s intellectual capital, that’s easy to read, and focuses on timely topics that people have a genuine interest in. These topics do not include how great your firm is. Allow people to draw their own conclusions.
Drive Top-of-Mind Awareness. To be included on the short list of candidates for an assignment or sale, you need to build awareness with key decision-makers. To accomplish that goal, share your content directly with target audiences on a quarterly basis. (More frequently than that, and you may be viewed as a pest.)

Most importantly – with apologies to Glengarry Glen Ross – B2B firms must commit to:

A…..Always

B…..Be

M….Marketing

…for the discipline to be effective. Otherwise, the traditional short-term, hair-on-fire approach to business development will keep your company from ever reaching its full potential, regardless of its quality or reputation.

Why Your B2B Marketing Isn’t Working

Inconsistency Kills Most B2B Marketing Strategies

There are two major reasons why marketing is ineffective at B2B firms, regardless of size or industry:

Marketing is viewed as triage. The company applies a collection of tactics (often labeled as a “marketing campaign”) only in response to a problem; typically involving the loss of a key client, or decline in revenue. When business is good, little or no time is invested in marketing. When business (inevitably) takes a dip, marketing becomes a priority. This classic behavior is depicted in the “Sales / Service Volatility Curve” chart above.
Marketing is expected to deliver immediate results. Either because the company views marketing on a cause & effect tactical basis, or because marketing triage must quickly revive an ailing company, the marketing function is given little time to produce tangible results. It’s no surprise that Chief Marketing Officers have the shortest tenure of any corporate function.

Individually or collectively, both of these circumstances drive the #1 reason why B2B marketing does not work:

INCONSISTENCY

The sad truth is that very few B2B firms either understand the marketing function, or have the discipline to design, implement, measure and stick with a marketing approach that builds brand equity and market engagement on a consistent basis.

As an alternative to changing careers, and to establish the infrastructure and internal culture necessary for the discipline to succeed, we offer marketers (and B2B business owners) the following simple path:

Create a Written Marketing Plan. Include goals, strategies, responsibilities, timelines, budgets and ways to measure results. Without a Marketing Plan you will not succeed. And unless it’s a written document, you do not have a Marketing Plan.
Gain Senior Level Commitment. The corner office must understand, endorse and support the Marketing Plan. The Plan must also be properly staffed and funded upfront.
Do a Few Things Very Well. Marketing’s success will be based on the quality and effectiveness of a limited number of strategies / tactics. Less is usually more.
Build and Nurture your Database. Direct and easy access to your company’s clients, prospects, referral sources and opinion leaders is essential. Without this pipeline, the marketing value of the content you create is close to zero.
Create Meaningful Content. Self-serving white papers and client case studies have very limited appeal. Generate content that validates your company’s intellectual capital, on topics that target audiences have a genuine interest in.
Drive Top-of-Mind Awareness. Leverage your thought leadership content by sharing it directly with target audiences on at least a quarterly basis. More importantly, use content to initiate two-way conversations that build relationships in advance of sales.
Connect with the Sales Force. There’s no better way to find if and how well your marketing strategies are working, or to gain an understanding of the marketplace.

Most importantly – with apologies to Glengarry Glen Ross – B2B firms must:

A…..Always

B…..Be

M…..Marketing

…for the discipline to be effective. Otherwise, the traditional short-term, hair-on-fire approach to marketing will keep your B2B firm from ever reaching its full potential.

The Power of Insulting Customers: Confessions of a Vacuum Cleaner Sales Rep

The Rolls Royce of Vacuum Cleaners

My connection with advertising legend David Ogilvy is that, early in our careers, we both sold consumer appliances door-to-door. Long before he founded Ogilvy & Mather in 1949, and following a short-lived career as a chef in Paris, David Ogilvy sold AGA cooking stoves to housewives in Scotland. Long before I founded Highlander Consulting, as a college student seeking money for gas and beer, I sold Fairfax vacuum cleaners to housewives in Connecticut.

Ogilvy claimed his door-to-door sales experience provided insights into the mind of the consumer that earned him acclaim as an advertising wizard. I credit my door-to-door experience with an appreciation for the power of insulting people as a sales tactic.

Created long before Star Wars, Fairfax vacuums looked like R2-D2, were priced at several hundred dollars and equipped with a motor so powerful it could nearly – to borrow a phrase – suck the chrome off a trailer hitch. Although my recollection of how I first became associated with the Fairfax Company remains fuzzy, I can recall every detail of my first home demonstration, given to an unsuspecting housewife by my sales trainer, a seasoned vacuum cleaner salesman straight from Glengarry Glen Ross.

Here’s a replay of our sales visit:

Sales Trainer:    Thank you, Mrs. Jones, for allowing us to demonstrate the power of the Fairfax vacuum. Before I do that, would you kindly show me the vacuum cleaner you’re currently using to clean your beautiful house?

[Mrs. Jones brings her vacuum out of the closet. The Sales Trainer plugs it in and then pulls out a glass jar full of dirt, hair, dust balls and other unpleasant items.]

Mrs. Jones:         Oh, my!

Sales Trainer:      Now I don’t want you to be upset, Mrs. Jones, I assure you that no permanent damage will be done to your rug.

Mrs. Jones:         Well, I’m not sure that…

[The Sales Trainer opens the top of the glass jar, and dumps the entire mess on to a portion of the rug.]

Mrs. Jones:         Oh, my!

[The Sales Trainer smiles at Mrs. Jones while he steps into the pile of dirt and grinds it into her rug with his foot.]

Mrs. Jones:         [Visibly upset.] Oh, my!!! How will I ever get that dirt out…

Sales Trainer:      Let’s see how well your vacuum cleaner handles this mess.

[The Sales Trainer vigorously vacuums the rug for several minutes with Mrs. Jones’ vacuum until no dirt is visible and the rug’s original appearance is restored. Mrs. Jones now appears more relaxed.]

Sales Trainer:      Would you say that this area of your rug is clean now, Mrs. Jones? Why don’t you get down and take a closer look, to check for any dirt?

[Mrs. Jones reluctantly agrees, bends over to take a closer look and runs her hand over the carpet.]

Mrs. Jones:         You seem to have gotten all of the dirt out. You really scared me for a moment.

Sales Trainer:      Well, let me give it a couple more passes with your vacuum, just to be sure it’s clean.

[The Sales Trainer begins to vacuum the area again. Mrs. Jones looks at me. I look down at the floor until he stops the vacuum…The Sales Trainer sits down and directs Mrs. Jones’ attention to his new Fairfax vacuum which features a clear plastic fitting in the middle of the hose (for demo purposes only) containing a white, porous paper filter designed to collect any dirt before it enters the vacuum canister.]

Sales Trainer:      As you can see Mrs. Jones, my Fairfax vacuum is equipped with a special paper filter that will show us how much dirt is being collected. So let’s go back over that spot we just cleaned with your vacuum.

[With great fanfare, the Sales Trainer begins to vacuum the rug. As he does, he points to the white filter in the hose, which immediately begins to collect debris and turn black in color. Mrs. Jones stares at the filter. She looks quickly at the Sales Trainer, then at me, and begins to mutter something to herself as the Sales Trainer shuts down the Fairfax.]

Mrs. Jones:         That’s amazing…I never…

Sales Trainer:      As you can see, Mrs. Jones, your vacuum appears to have missed quite a bit of dirt and debris that was in your rug.

Mrs. Jones:         It certainly did.

Sales Trainer:      Mrs. Jones…may I ask you a personal question?

Mrs. Jones:         Well, I guess so…

Sales Trainer:      Mrs. Jones…Do you care about the health and safety of your family?

Mrs. Jones:         Why, of course I…

Sales Trainer:      Mr. Jones…Is this really the way you want your family to live…[long pause as he points to the black filter on the hose]…in a dirty, germ-filled house?

[Having just suggested that Mrs. Jones is an unfit housekeeper, she is clearly shaken and unable to respond. She looks at the Sales Trainer, and then at me. Expecting the worst, I shuffle my feet, planning a rapid retreat from the house. The Sales Trainer remains frozen in position, during a very long silence, staring at Mrs. Jones, waiting for her to answer his question.]

Mrs. Jones:         [Clearing her throat.] How much will your Fairfax vacuum cleaner cost me?

[The tension in the room evaporates. The Sales Trainer sits down, pulls out a contract from his valise, and proceeds to sell Mrs. Jones a new Fairfax vacuum.]

My tenure as a Fairfax vacuum sales rep was short-lived and highly unsuccessful, never having found the courage to ask Connecticut housewives the insulting question that would initiate a sale. However, to this day I continue to apply the important lessons in sales craftsmanship taught to me by my Fairfax vacuum sales trainer: