Tag Archives: marketing strategy

The Attention Web: What B2B Marketers Need to Know

For B2B marketers who are too busy to keep up-to-date on every marketing trend and buzzword, here are a few thoughts on all the current noise about the Attention Web:

  • Attention as a marketing asset is not a new concept: Top-of-mind awareness has always served as a cornerstone of effective B2B marketing.  In their 2001 book, The Attention Economy, social scholars Thomas Davenport and John Beck proposed that in today’s information-flooded world, the most scarce resource does not involve ideas, money or talent. They argued that unless companies learn to effectively capture, manage and maintain attention – both internally and in the marketplace – they will fail. Here’s one way to understand what’s happening:

Attention Web

  • Pageviews, Likes, Clicks, Shares and Downloads do not measure engagement: Now that the advertising industry is using actual data to evaluate online behavior, smart B2B marketers can validate what they’ve always suspected about the metrics that are used to measure the effectiveness of the content they produce. There is now hard evidence that shows the number of clicks, comments, and shares are not indicative of how much time people spend engaged with the actual content. One recent study, reflected below – produced by Chartbeat and based on a boatload of data – demonstrates that there is no relationship between how often a piece of content is shared and the amount of attention the average reader will give that content. The good news for B2B marketers is that there are now editorial analytic tools that can provide attention and engagement metrics and insights.

article sharing

  • Attention, engagement and business relationships are driven by quality content: Beyond whatever products or services they sell, all B2B companies must establish credibility and trust with clients, prospects and referral sources. Initial inquiries and longstanding relationships are not nurtured by bombarding target audiences with aggregated content from 3rd parties. The most successful B2B firms only associate their brand with highly relevant content, most often home-grown, that supports their value proposition, stakes out intellectual territory, avoids self-serving claims and truly differentiates their company from competitors. Less can be more, when it comes to B2B content.

 

  • Don’t rely on the internet exclusively to generate market attention. For B2B firms, direct communication (email, snail mail, face-to-face, etc.) with target audiences remains the most effective means of gaining and maintaining engagement. If you’ve created high quality content, ensure that it earns an adequate marketing ROI by consistently putting it in front of the right people; don’t expect them to find your content by themselves on your company website or blog, on LinkedIn or through Twitter. Those online channels should be considered a secondary, rather than the primary means, of generating attention and engagement through content.

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Peter Drucker on “The Four Roles of the CFO”

Dr. Peter F. Drucker, Management Thought Leader

In the early 1990s, Highlander Consulting was engaged by Phibro Energy to help introduce energy derivatives to Chief Financial Officers at corporations with substantial exposure to fluctuations in oil, gasoline and jet fuel prices.

As part of an integrated marketing strategy, management legend Dr. Peter F. Drucker, then serving as a professor at Claremont Graduate School, was engaged to serve as keynote speaker at the Phibro Energy Risk Management Forum, held at The Metropolitan Club in New York City.

Dr. Drucker, who passed away at age 95 in 2005, chose to speak on what he called, “The Four Roles of the CFO.” His remarks before more than 200 CFOs appear to be as relevant now as when he spoke to them nearly 25 years ago.

Here are some highlights from Peter Drucker’s presentation, which can not be found in any one of his 39 books:

The CFO as Information Officer:

“The original role of the CFO was to be the information officer of the business…Accounting, which is information, is changing today more than it has changed in the last hundred years…CFOs will have to make an important decision for their companies not very far down the line, on how to get rid of the pernicious rift between information that is concept-focused, which is accounting, and information that is transaction-focused, which is computerized information…

“The notion that you should split these two universes of information between the Chief Financial Officer, who is responsible for financial information, and the Chief Information Officer, who is responsible for non-financial information is not a good idea…

“The only reliable information we have available to us basically is “inside” information, mostly in our accounting systems. And yet, the events that really determine the success of business do not happen on the inside…So CFOs have a big job ahead: bringing together information channels, and learning an accounting system that’s going to be very different. It will require an ability to get “inside” information by manipulating figures quickly, and combining it with “outside” information, which is largely anecdotal today.”

The CFO as Financial Advisor:

“The Chief Financial Officer must think about the financial consequences of projected policies and actions, not only in terms of costs but in terms of the allocation of scarce resources…So the chief financial adviser’s job is to think about opportunity costs, and most CFOs don’t do this…As a CFO, you must think about what a policy or project is likely to return. Also think about the consequences if it doesn’t work…So the chief financial adviser basically is a conscience, a financial conscience.”

The CFO as Productivity Manager:

“There is a third CFO function, which is managing money for the business. I’m not talking of the treasury function; that is only a small part of it. The biggest part of this involves managing the productivity of capital…It’s my view that you can increase the productivity of capital in any organization three percent a year compounded, by just plain hard work, provided it’s allocated properly. And this is a function which is not, bluntly, on your professional agenda today…

“Top management doesn’t think financially. They think in terms of next quarter’s dividend, and that’s not thinking financially. They don’t think in terms of the financial impact of business decisions and the business impact of financial decisions. And that, I think, is your biggest educational job ahead.”

The CFO as Asset Protector:

“The fourth dimension of the CFO’s role is the preservation and protection of assets. This is a duty of a company that benefits not only the shareholders, but also society…The stupidest thing you can do is attempt to predict the future. Brilliant people have seen that those who predict eventually come to grief. Truly brilliant people understand that they must make external fluctuations irrelevant to their business…

“The protection of assets involves making sure that the risks over which you have no control are managed, and do not interfere with the conduct of the business. Losses based on fluctuations of commodities are no longer permissible, any more than it is permitted to have a factory burn down without insurance coverage. These are manageable risks.”

If you’d like to receive a copy of Peter Drucker’s complete remarks at the Phibro Energy Risk Management Forum in 1991, just shoot me a note.

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Stop the Insanity. Fire Your PR Firm in 2014.

The attribution is unsupported, but Albert Einstein is often credited with the quote: “Insanity is doing the same thing over and over again, and expecting different results.” Its source notwithstanding, the axiom applies perfectly to the great number of companies that retain PR firms, year after year, to generate publicity that will have little or no impact on tangible business outcomes.

Over the past 5 decades, to rationalize hefty monthly fees, the PR profession has successfully promoted three underlying assumptions:

  • Any publicity is good publicity.
  • The more publicity, the better.
  • Publicity generates revenue.

Here are just a few reasons why it’s insane for most businesses to base their marketing strategy on any of those assumptions:

  1. Lots of Media Exposure is Worthless. The “worthless media” category can include one-off quotes or mentions in round-up stories that also reference your competitors…if you’ve gained no unique mindshare.  It can include appearances on network and cable TV…if the topics have a short shelf-life, or are unlikely to be of interest to target audiences.  And it always includes exposure in advertorials (regardless of the sponsoring publication’s stature) and feature articles in pay-to-play vanity publications…because you gain no credible 3rd party validation.
  2. Counting Media Clips is a Zero Sum Game. PR firms often justify their value by the sheer volume of media exposure they generate…regardless of whether it stakes out intellectual territory, supports a client’s value proposition, or differentiates them in the marketplace. The goal should be to create an arsenal of effective credibility tools; not simply to generate clippings to hang like hunting trophies in the “Media” section of a website.  This zero sum game is also played in social media, where scorecards of “likes” and “followers” are used as hollow substitutes for meaningful business metrics.
  3. It’s All About Merchandising. Business leaders must address two key questions in advance of seeking any publicity: “1. What type of media exposure will benefit us most?” and “2. If we gain that exposure, what will we DO with it?” Responses to Question #2 must provide clear direction regarding how it will support the firm’s sales and marketing strategy; how it will be used to drive leads; how it will initiate meaningful conversations with clients and prospects; and how it can be leveraged to gain other opportunities for targeted exposure.

Most PR firms fail to deliver on the potential of their craft because performing it correctly requires really hard work, takes time, and demands accountability for business results. Your role as a responsible client requires that you hold your PR agency’s feet to the fire by expecting results that have a measurable impact on your company’s balance sheet. It also means that you must provide your agency with the time and guidance necessary for them to deliver something more than a pile of useless press clippings.

If you’re unwilling to make that commitment, or if they’re incapable of delivering on your expectations, then it’s time to stop the insanity. Fire your PR firm in 2014.

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An End to B2B Social Media Madness

20070805-humanLemmings

Rapid, lemming-like adoption of social media tools by small and medium-sized B2B firms – fueled by an army of self-proclaimed social media experts – has resulted in wasted dollars, missed opportunities and heightened distrust of the marketing function in the C-suite. As if CMOs needed another cause for termination.

The past decade’s social media debacle is akin to introduction of desktop publishing in the early 1980s, when personal computers arrived in the business world. New software programs enabled companies, for the first time, to design and produce their own graphic materials in-house. Every company needed desktop publishing; corporate bean counters promoted the cost savings; anyone who learned how to use the software claimed to be a graphic designer, and the trend resulted in the most unprofessional and ineffective marketing & sales collateral every produced. Over time, even the bean counters came to understand that misapplied technology can be very costly.

The impact and potential of social media is far more significant than desktop publishing, but this also means that its range of casualties and cost of misapplication are exponentially greater. Simply, there are far too many B2B companies that are either:

–  using inappropriate social media tools,

–  not using appropriate social media tools correctly, or

–  missing opportunities to use appropriate social media tools.

At the risk of generating a firestorm of debate from social marketing gurus armed with clicks, likes, re-tweets and other forms of meaningless ROI validation, and based on the social media casualties we’ve seen or treated first-hand, the following guidelines are suggested for small and medium-sized B2B firms:

  • Focus on Your Website. This is the online mother ship of your brand. Don’t bother with social media tactics unless this tool is all that it can be. If your website has not been refreshed and updated in the last 3 years (which means more than simply sticking press releases in the “News” section), then your company is due for an overhaul.
  • Blog Correctly, or Don’t Have One. A company blog is the most effective way to leverage social media. But if you are unable or unwilling to generate meaningful content on a consistent basis (at least twice a month), or to merchandise your blog content properly (which means taking specific steps to promote the content with target audiences), then do not start a blog. If you already have a blog and you’re not meeting those goals, then shut the blog down. It’s a brand liability.
  • Forget Facebook, Twitter and Google+. These are primarily personal and B2C social media platforms, and there are few good reasons why most B2B firms should be investing any time or resources there. In terms of demographics, it’s telling that Twitter’s top 3 profiles belong to Justin Bieber, Lady GaGa and Katy Perry, but if your B2B firm needs quantitative evidence to support dropping these social media platforms, here is some recent research from Pew Research Center:

PRN_landscape_social_media_users

  • Use YouTube Selectively. YouTube can be a very effective social media channel for B2B firms. But your video products must be sophisticated, professionally produced, and no longer than 3 minutes. Resist the temptation to include sloppy, home-made productions, or hour-long webinar presentations. They reflect poorly on your brand, and few people will watch them. Ensure that you develop ways to drive consistent traffic to your YouTube channel.
  • Build Your LinkedIn Presence. LinkedIn is 3x more effective for demand generation than either Facebook or Twitter. LinkedIn has become an essential part of the business world’s due diligence process, and your company is conspicuous by its absence. Unfortunately, few companies take full advantage of LinkedIn’s social media potential. Their corporate profiles often do not contain adequate information, they do not merchandise blog-related and other relevant content, fail to connect through industry user groups, and their employees’ profiles are inconsistent and sometimes unprofessional. Most B2B companies would be well served to invest 100% of their social marketing effort through LinkedIn.

Very often, the root cause of dysfunction and disappointment related to the application of social media tools by B2B firms has less to do with the shortcomings of the various platforms, and more to do with the lack of a coherent and articulated marketing strategy. Chances are, if a B2B firm is spinning its wheels in the morass of social media, they’re having similar challenges with traditional marketing communication channels as well.

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4 ½ Reasons To Avoid Using Celebrity Endorsements

With those big guns, can we be sure that Tony's not using HGH?

With those big guns, can we be sure that Tony’s not using HGH?

Here are 4 ½ good reasons to avoid celebrity endorsements:

  1. OJ Simpson
  2. Tiger Woods
  3. Lance Armstrong
  4. Oscar Pistorius

4.5  Elmo the Muppet

The marketing world is littered with celebrity endorsements similar to these train wrecks. Yet companies will continue to dole out lucrative contracts to sports heroes, actors, politicians and other personalities du jour…in hopes of leveraging their popularity or notoriety.

Why do marketers continue to roll the dice with their company’s brand reputation?

One reason: celebrity endorsements require no creativity and very little effort. Nike’s ad agency simply shoots some footage of Tiger bouncing a golf ball 25 times off the face of a pitching wedge, and voila…there’s a 30-second commercial.

Companies rationalize this brand risk by assuming that the public will assign them some sympathy for having been duped by the murdering, philandering or drug abusing ways of their fallen celebrity. Marketers also may believe a celebrity’s fall from grace will provide their company with an opportunity to publicly cancel the contract, express sorrow or indignation, and gain additional time for their brand in the public spotlight.

But in terms of long-term brand management, association with a celebrity who’s fallen from grace is a losing proposition. For starters, it demonstrates poor judgment. So ignore the assurances from your ad agency, even if the celebrity they’re proposing is Mother Teresa.

But if you’re determined to use a celebrity, it may be a safer bet to hire an animal than a human. To my knowledge, RinTinTin never bit anyone, but Orca whales have a very poor track record.

Better yet…create your own celebrity. The Geico Gecko, Kellogg’s Tony the Tiger, and StarKist’s Charlie the Tuna all have clean rap sheets. So far.

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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:

  • Know what’s important to your customer.
  • Be straightforward in pointing out a problem (or opportunity.)
  • Demonstrate a viable solution.

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Did The New York Times Purposely Fuel the Goldman Controversy?

A Compromised Value Proposition?

If the biggest loser in disgruntled employee Greg Smith’s recent OpEd piece was Goldman Sachs, then the apparent winner in this high-profile media sideshow was The New York Times. Rarely has an opinion piece on any topic, published in any major newspaper or periodical, attracted so much attention and controversy.

The veracity of Mr. Smith’s opinion and the timeliness of his topic notwithstanding, is it ever appropriate for a publication as widely read and long-respected as The New York Times to provide a platform for one disgruntled employee? In publishing Mr. Smith’s description of Goldman’s shortcomings, and his heartfelt reasons for quitting the firm, did The New York Times supply an inherent level of credibility and endorsement of Mr. Smith’s position?

If The New York Times was genuinely interested in presenting its readers with a balanced viewpoint – traditionally a fundamental responsibility of the Fourth Estate – would it not have given Goldman Sachs an equal editorial platform to present the firm’s response to Mr. Smith – ideally in the same issue and on the same page as Mr. Smith’s OpEd piece? Or was the element of surprise part of the publication’s marketing strategy?

In the Greg Smith / Goldman Sachs matter, The New York Times appears to have borrowed a page from the playbook of now defunct Jobvent.com, a website that pioneered a viral platform for anonymous employees to post their titillating rants on real and imagined injustices by their employers.

As the line separating bona fide news reporting from entertainment continues to erode, and as advertising revenues disappear, in its decision to print Mr. Smith’s largely unsubstantiated viewpoint, The New York Times may be complicit in trading in its legendary journalistic standards for a temporary spike in brand recognition and readership.

By delivering self-serving content of this caliber, the Gray Lady likely revealed more about its own integrity than that of Goldman Sachs.

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B2B Marketing Strategies and Insights

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Are You Wasting Money on Publicity?

The Value of Publicity is Based on 3 Key Factors

Every year, companies waste time, money and opportunity generating publicity that accomplishes little or nothing in terms of tangible business outcomes.

Here are a few hard truths regarding publicity:

  • Your audiences are unlikely to notice the exposure, or do anything about it.  Even with content shelf-life driven by intelligent SEO management, there is simply too much information, too many online and offline media sources, and too little time in the day for your customers, prospects and referral sources to read, see or hear your message. And if they do get your message, there’s often little motivation for them to act on it.
  • Publicity volume does not translate into business results.  A single high-value media placement that’s properly merchandised often has greater impact than a pile of press clippings. In fact, publicity for its own sake is often unfocused, with no connection to the company’s underlying value proposition or core messages; generating confusion and apathy among target audiences.
  • Some types of publicity have significantly greater marketing value than others. The old PR adage that “There’s no such thing as bad publicity” may work for Lindsay Lohan, but it has no application for companies that care about their brand. To calculate the media placement value of various types of publicity (see chart above), Highlander Consulting uses three key criteria:
  1. BRAND RISK – If you have little control over how your company’s reputation or intellectual capital is presented – such as in a feature story where a reporter or editor will seek to produce “balanced coverage” by presenting negative items or including a competitor – then the publicity has inherent brand risk. (Value Scoring: +1 if you have total control over content; -1 if you have little or no control.)
  2. CREDIBILITY – Often called “masthead value,” this factor is based on how well the media source is recognized and respected. The potential value of the publicity is based in large measure on the underlying credibility of the source, because the exposure supplies an inherent 3rd party endorsement. (Value Scoring: +1 if the source has strong credibility; -1 if it has low credibility.)
  3. MERCHANDISING POTENTIAL – This often overlooked factor is sometimes mistakenly called “reprint value,” but Merchandising Potential encompasses far more, relating to how easily and how broadly the media exposure can be leveraged to support and drive specific marketing goals. Simply posting publicity on a website does not deliver a high ROI.  (Value Scoring: +1 if the publicity has a range of applications; -1 if it’s limited to one or two.)

Using this ranking methodology, and as reflected in the chart above , bylined articles and OpEd pieces published in credible sources typically deliver the highest marketing ROI; while inclusion (being mentioned or quoted) in a round-up news or feature story does not score well. Most home-grown efforts, such as self-published press releases, have very little value.

By using this formula, or a similar methodology, to evaluate the potential ROI of individual publicity tactics, and by building media and marketing strategies around only high-value activity,companies can consistently make the connection between publicity and tangible business results.

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