Marketing Communications Archives - Page 2 of 3

Saving Lives with Better Communications

According to a recent Wall Street Journal article, The Talking Cure for Health Care, research has long confirmed that improving communications between Doctors and their patients can actually save lives. The news prompting the article is that healthcare organizations are now taking actions based on this knowledge as a way to improve how Doctors speak with their patients.

Some of the stats that came out of research conducted by Doctors Co. indicate the lack of effective communications issue is widespread:

Here is the point I found most intriguing: This type of communication should be the MOST effective, given the setting and subject matter. If you are a patient sitting in front of your Doctor who is explaining something to you that is as important a topic as your health – don’t you think that you would be really paying attention? Given this assumption, the fact that up to 20% of all malpractice claims were derived from communications problems tells me that there are probably even greater issues in communicating effectively on other topics, which are not life and death scenarios.

Take marketing communications, for example, written by professionals trying to convey a message about value propositions, promotions or other compelling cases why a buyer should perform an action. On has to now assume that a big part of the message will likely be lost!

So, next time you venture down the path of writing a webpage, email or sales collateral, think carefully on what can be done to improve the effectiveness by simplifying what you are saying, as most likely, a big number of your readers simply won’t get it.

Gordon Benzie is a marketing communications professional and business plan adviser that specializes in preparing and executing upon business plans and marketing strategies.

Thinking Smarter Isn’t a Business Plan

By Gordon Benzie

Last week I read an interesting and well written article in the Wall Street Journal on the challenges that Alcatel is facing, titled “Alcatel Chief Is Out as Turnaround Stalls.” As you may recall, about six years ago France’s Alcatel merged with U.S.-based Lucent Technologies (former equipment division of AT&T) to create a telecom-equipment giant. Their ambitions to become a global telcom equipment leader have fallen short. Competition is tough. They compete in many lines of business, while at the same time, their revenues trail the competition, which has precluded their ability to make the necessary investments in research and development. These factors among others have translated into massive losses over the past seven years, and ultimately, CEO Ben Verwaayen’s job.

Alcatel-Lucent’s business strategy was to be an end-to-end supplier serving all telecommunications companies in the world, in virtually every markets. That means being everything to everyone, with a product line that includes everything from the submarine cables that wire together continents to the software that phone companies use to calculate and send out phone bills every month. Wow. That is a “big ass” strategic goal. In fact, I would argue it probably isn’t feasible, at least not within a high technology industry where product innovations are significant and competition is fierce.

Interestingly, when asked what the management team was going to do differently to avoid continued year-over-year losses, one of the “official” responses was “they simply have to be smarter than competitors about where they place their technology bets.” I am sure this statement sounded good in the interview, and certainly no one would argue against it. But, I am not so sure I would feel comfortable with this response if I were a member of their board of directors.

There are a few things wrong with the statement “we’ll just have to be smarter.” First, if that is all it would take, then why didn’t you do it six years ago when the merger was first completed? My next concern is that of execution. How do you lead a company to change its decision-making and business strategy by just “being smarter”? Is there a course you can take to accomplish this goal? If so, sign me up … I could always use with being a bit smarter.

The reality is that you simply can’t expect a group of employees and their managers to “get smarter” so they can make better decisions. You can lead by example as CEO, providing insights as to where new market opportunities might be, as well as to show how to operate more efficiently as an organization. I am with the belief that people are probably already doing the best work they can, or least are making the best decision they know how to … the idea to simply “make smarter decisions” is not likely.

Is it possible to embrace a new strategy and take a different direction? Of course. In fact, that is exactly what is needed. The expression of “you can’t please all the people, all the time” comes into play. Perhaps taking a perspective to consolidate and further refine their business might work better here, as a way to be more effective and focused with both strategy and execution. However, this shift would likely involve closing down divisions, which might be difficult for a French firm where strict labor laws prevent such actions.

Sadly, I suspect that if something isn’t done soon, there will be a far worse situation than just a few divisions shutting down … the entire company may go under, which certainly would be a shame. Should the management team try to make the smartest decisions to avoid shutting down? Of course. Making the smartest decisions you can is always the best course. But maybe a bit more strategy is needed than simply making smarter decisions.

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

Why do Public Relations?

For this post, I thought I would challenge what the role of public relations is, with the objective to provide a thoughtful perspective on what value PR plays within an organization.

To start, the objective of public relations or PR is to raise awareness of a company, non-profit group or any other organization. Why does this matter? Well, to start, it is a lot easier to sell products or services if your audience has heard of you. Simply stated, no one wants to buy from a stranger. Public relations overcomes this sales hurdle by creating stories about the organization that will be viewed as interesting, or at least interesting enough to be read about by your target audience.

Note that this methodology must be applied with the sole objective to engage your audience. If other people find out, that is fine. But, you must be careful to not waste limited resources reaching individuals that will never be part of your buyer’s purchase lifecycle. This philosophy must be applied religiously to every opportunity for contributed articles, guest blog posts, speaking engagements and award opportunities.

My Audience Already Knows Me

I have spoken to some business owners who state that their target audience already knows who they are, and they know all about their company’s product or service. If this is the case, why spend the investment to reach out to them again? The reason why this investment makes sense is that it is going to help you to continue to best serving your market segment. Just because a customer has heard of you doesn’t mean they will continue to purchase or renew their existing services with you on a consistent, never-ending basis.

The Risk of Complacency

Imagine this scenario as a theoretical a case study. A new competitor enters your market. What do you think will be the first thing they do to introduce themselves to your customers? Odds are some sort of PR campaign, including announcements, special offers, grand opening day parties, etc. They must make this investment as they are coming into your market as a “disruptor,” which must be announced in order to be effective.

Now let’s say that you haven’t been investing your own PR campaign. Maybe funds have been tight as you have neglected this activity for the past year or so. Maybe your website and social media channels are a bit out of date too, falling into the category of something that could be deferred for a year or two.

Unfortunately, you are now a sitting duck for this new competitor to come in and eat your lunch. Once they begin making noise, you will be caught off guard. Assuming you move quickly and start to invest in getting your PR program back on track, it will still take time. Days, weeks or even months will pass before you are able to first get your routine changed to re-focus on this topic. You will be in “catchup” mode for some time. Every month you are behind is a month where you are at risk of losing customers. Think about it … what is the opportunity cost that someone might come into your market and try to steal market share?

At minimum, it might make sense to at least keep a few programs running, even if funds are tight. This way you still have a “toe” in the water, as a steady “beating of the drum,” to remind the market and your audience of current customers and prospects. This activity states that you are still there, and are actively reaching out to them to continue to help better address their needs with your product or services. Seems like a good investment and an even better business strategy decision that can be easily incorporated into your marketing communications strategy.

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

Are you Ready for the Mobility Revolution?

A couple weeks ago I saw the latest Top 10 IDC predictions for the IT industry. It is always good idea to seek an “outside in” perspective on your business positioning and marketing message. A prediction that caught my attention was that in 2013 there will no longer be growth in the use of traditional desktop computers and laptops to access the Internet. By 2015, it is expected that more people will surf the net from their “Smart Mobile Devices” instead.

From a marketing communications perspective, this is pretty big news.

To start, one of the most important communications venues is a website. The growth in tablets and smart phones to access the Internet is hardly surprising. A year ago I wrote this post: 5 Ways to Improve Website Usability on a Mobile Device, which pointed to this growing trend, and what to do in preparation. Regardless, the expectation that more than half of all website visitors will be on mobile devices is shocking! No longer is it prudent to just think about formatting and display issues … a complete reevaluation on menu navigation and accessibility should now be considered. Ignore this audience and you will be at risk of losing up to half of all visitors in just two years’ time.

Here is something to consider: do you have flash running on your site? If so, then you might want to set a plan in motion to remove it. Apple mobile devices have a significant market share, and Flash doesn’t work on their systems. And, the new Microsoft Surface tablet doesn’t run flash either.

Here is another thought to consider: Windows 8 is out and on the shelves. In the next 12-18 months a much larger percentage of website viewing activity will be done from this operating system, which will run both desktops, laptops and mobile devices. This OS favors a content structure that moves from left to right instead of from up to down. Translation: you might want to start thinking about how to arrange your website navigation accordingly.

Lastly, take a moment to recognize that touch screens are steadily becoming more prevalent. Apple is the one to “blame” for this transformation, with the launch of their iPhones and iPads. Their popularity demonstrates the benefits of this type of user interface – it is just easier to touch a screen to navigate a user interface or website. This is another design element that should now be considered as part of your website layout. Big buttons will need to be incorporated to activate menu options or to request more information.

My prediction is that 2013 will be a great year for web design firms. If I was running the marketing program at one of them, I would be sure to kick off the year with a special message and marketing communications about the results of the latest IDC study coupled with a free “mobility compatibility” evaluation offer.

There might even be a reasonable business plan that could launch a new company offering this service …

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

Did Labor Unions Really Kill the Twinkie?

The nostalgia world may never be the same after the events from earlier this month. After 88 years, Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business. According to the story that ran on NBC.com, the CEO blames the unions, which made the decision to go on strike as part of the latest round of labor negotiations. The company has been in Chapter 11 bankruptcy proceedings for the past 10 months or so. Last week it was announced that all assets will be liquidated, resulting in about 18,000 employees losing their jobs – certainly an unfortunate turn of events.

When I first read this news story, it struck me as interesting how strong the focus was about the role that the Labor unions played in “bringing down” the company. Since the labor unions would not accept new lower salaries, the only choice CEO Gregory Rayburn had was to shut down the company.

That is one way to tell the story.

Another angle is that the company failed to adjust to the times. Over the past decade or so, eating habits changed – the focus today is on eating healthier foods. Given this trend, it is not surprising that a company such as Hostess began having problems, given its product line. I don’t think anyone will argue that the nutritional value of a Twinkie is not too high … according to info published on Livestrong.com. At 150 calories per Twinkie, it has 4.5 g of fat, 20 mg of calcium, 20 mg of cholesterol and 19 g of sugar, equivalent to almost 5 tsp. Double each of these figures for the typical way this product is sold, as a two pack. Other Hostess products don’t fare much better.

This brings me to my point. When you are crafting a story for the press to cover as a business communications or news announcement, there are many options on how to pitch it. Seldom is there just one story. In this case, perhaps the Hostess CEO and management team sought to blame the unions for the downfall of their iconic institution in order to deflect a different line of questioning – such as what were you doing about new product introductions a decade ago when this trend first became obvious? A few days later, more details began to emerge indicating that maybe there were other issues impacting sales. Clearly their cost structure was not well aligned to revenue. It might be that there is no business model that could work for these products today; however, a story focused on that theme wouldn’t do well to help the company find a new suitor. When faced with these alternative stories, portraying the problem on the unions was probably the best way for them to deflect blame while keeping the door open to a new buyer that believes they can address the labor issue.

When you have a business communication to address, sometimes you get to choose what the lead in story and news will be – more often if you proactively make an announcement or hold a press conference. If this is the case, best to take advantage of this opportunity. Other crisis communications, such as an oil drilling platform explosion and fire, can’t really be modified to give it a good “spin.” Over time, if your story has more to it, then it is most likely that the rest of the story will follow. But, it will be secondary to the original announcement, which might just buy you some time to get through your crisis, should you have to experience this type of announcement.

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

Communicating Pricing in a Multi-tiered Distribution Model

It is no secret that companies regularly charge different prices for the same product. Just look at the airline industry as one example. Nearly every seat has a different price, which can vary depending upon the day of the week, your status as a frequent flyer and how close the flight is to departure. The strategy behind this pricing decision is valid – lost seat revenue from departed flights can never be recouped. Airlines must try to fill every seat for the highest possible rate to maximize revenue. This pricing dichotomy can create a potential communications challenge, but only if the rationale behind this difference isn’t reasonable.

I would propose that the car rental industry’s pricing strategy doesn’t make sense, and as a result, that industry is communicating poor messaging resulting in a loss of consumer loyalty and repeat purchases. Speaking from my own experience, I see the purchase of a rental car as a commodity item, one that is identical regardless of what provider I choose to patronize, with one exception – Enterprise. They will bring the car to you. This is great service, and truly a competitive differentiator.

Here is my source of confusion – if you take the time to create an online profile with your preferences, including personal identifying information about what you like to rent and where you like to rent, this privilege you are bequeathing to the car rental company comes at a price – you are charged a higher rental fee! One might think that a “preferred” member should at least be given a coupon or some sort of advantage for going through the hassle of creating the online profile..

Let’s assume there is some sort of loyalty program that gives repeat buyers a discount. If that were the case, then the choice to purchase through a third party might be worth less to a car rental company – a commission must be paid to these purchases, reducing the economic value of such a purchase. The reality is just the opposite, and the price difference is unbelievable. At Hotwire.com, I can rent an economy car for $15 per day, provided I can create an alert and check back periodically to when that rate comes available. Alternatively, if I go directly a car rental company and try to book the same car, the price is about $80-$90 per day, for the same period, same location and same type of car, a rate increase of 400-500% higher. The only difference is that the $15 rate is non-refundable, so clearly there is some value in being able to cancel without penalty.

Perhaps, this is a reasonable pricing decision and worthy from an economics perspective to continue this practice. I don’t know, as I am not privy to this information. My point is that from a consumer messaging and business communications perspective, this discrepancy simply doesn’t make sense. For example, the car rental companies could offer a “refundable” and “non-refundable” rate, if that is indeed the source of the extreme pricing difference. Then, it starts to make sense.

In the same way that an empty “seat” on a flight represents revenue that will never be recaptured, rental cars sitting on a lot overnight represent the same opportunity cost. Clearly, a multi-tiered pricing strategy is logical. The challenge how do you execute a sensible pricing and communications messaging strategy that can be a win-win for both the company and its customers?

Does your business or industry have its own pricing “nuances” that only you, as an insider, understand? If so, maybe it is time to fix them.

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

Measuring the Value of Outdoor Advertising

As a marketer, you must make many choices on not only what your primary message should be, but also on what medium is the best to communicate your vision. I just read an interesting article in the Wall Street Journal about a nice win that the NASDAQ just pulled off – getting Kraft Foods to drop their big board listing on the NYSE to go instead with a listing on the NASDAQ (see article here). I can only image what the lead time and typical sales cycle is for such a decision, as it is clearly more than just a simple administrative change such as switching banks. Beyond the logistics of such a change, there is clearly a message at play – Kraft wants to be seen more as a company that is closer aligned with the technology companies that now dominate the listings on NASDAQ.

Stepping aside from that whole decision process and what was involved in closing the deal, the point that got my interest was when I read about what was publicly stated as the key reason that Kraft made the swap. According to the article, it was “the prospect of cost savings and the marketing visibility afforded by NASDAQ’s landmark advertising billboard in New York’s Times Square.” Cost savings in today’s economy is certainly justifiable and reasonable. What was interesting is the reference to the billboard that NASDAQ has in Times Square, which I am sure each of you has had the chance to either see either on TV or in person.

Wow. So, what Kraft is essentially saying is that this outdoor advertising venue was the tipping point that pushed them to close the deal. A couple of questions and comments come to mind here. First, what benefit is Kraft really envisioning? Increased brand awareness? I think that pretty much everyone in the world has now heard of Kraft Foods, so that clearly can’t be the case. How about awareness of what Kraft stock can be purchased for? In today’s digital world of price tickers, I have a hard time believing that it is this type of awareness that they are talking about.

I would propose that the awareness they seek is being viewed as part of the NASDAQ’s group of more tech-heavy, startup type of companies that are more typically on that exchange versus the NYSE. But, this message simply wasn’t part of the article. Maybe NASDAQ is trying to expand their positioning to be more than just a home for tech firms, and this was a way for them to point out other reasons for making the swap? If any of you have any background info that can help explain this decision, your comments and feedback would be most welcome!

So, there you have it. The decision to pay millions (?) of dollars a year by NASDAQ’s marketing team to keep that lease or own that real estate with its prime placement in Times Square actually led to a sale, which can now be tracked directly to that investment. The next question is: “Did the marketing team put this into their ROI calculation to help justify the expense?” There probably was some sort of awareness factor, which then translated into some sort of increased branding … but, to actually get a sale as almost a direct impact from the billboard / outdoor sign? I am guessing “no.”

In concluding, first, I hope that the marketing team at NASDAQ saw the article and is now pointing it out to their executive team. Second, I am not endorsing a marketing campaign composed entirely of outdoor advertising – an integrated approach covering multiple channels and awareness media is best. Third, to those thinking that there isn’t really any value to brand advertising and that any quantifiable new sales are not really possible from such expenditures, maybe that assumption isn’t quite always the case!

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

How Much Skin do You Have in the Game?

I recently completed an engagement with a client interested in starting a new web-based portal to serve the music industry. As part of writing his business plan, the discussion came up on what level of funding was sought, and at what point in the process would it be reasonable to pursue. I thought this was a good question, so am writing this post to talk about the timing component of when to fund a business, as part of your writing the business plan.

Clearly, one of the reasons to write a business plan is that you seek funding. This means you need a document that can clearly and quickly articulate how your plan and business vision can become a actual company generating revenues. (Before you decide to actually start writing your plan, here are 5 questions to ask.)

Here is where we have a bit of a paradox … if you are writing the plan to secure funding, then how much can be expected of you to get the business started to demonstrate viability? My client had a real challenge on his hands, in that he really didn’t have any money to invest in the venture now – his expectation was to find an Angel investor to pay for everything. I challenged this assumption, suggestion that he was going to need to put some of his own “skin” into the game, be it either from pre-negotiating some of the necessary partnership agreements, to finding a web developer that could start programming the portal. I suggested he find someone willing to do the work for experience and future equity, so cash outflow was not necessary required. One way or another, my advice to him was that he was going to need to make some sort of investment to show his commitment and devotion to the business.

As you are writing your business plan, either on your own or with a business plan writer, you too will need to think about how to bridge this important gap. My experience has taught me that few investors are simply going to give you a check to pay for everything, and then wish you well … unless you have had a terrific history and have earned that privilege. For the rest of us, we will need to prove our way forward to demonstrate that we have the wherewithal, perseverance and ingenuity to make something out of nothing, so to speak. This concept is critical as part of your selling that your business plan is worthy of being funded.

The best written plan in the world won’t get you funding if you can’t answer the question of “What skin do you have in the game?” Do time and effort count? Absolutely. But, most likely you will also need to have made some sort of financial investment too if you really want to “close” your investor. After all, if you are trying to pitch your business plan to an investor and haven’t invested any of your own hard-earned money, how can you reasonably expect an investor to?

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

What Role Does Social Media Play in your Marketing Plan?

Like it or not, social media is here to stay. It has changed the way we communicate, the way we shop and the way we share these experiences. Consumers would rather buy from someone they know. Absent this type of referral, a product or service review by an independent third party is deemed as nearly as valuable and certainly more credible that what a company says about itself.

According to a recent McKinsey research survey, “Social technologies as a group have reached critical scale at the organizations represented in our survey. Seventy-two percent of the respondents report that their companies are deploying at least one technology, and more than 40 percent say that social networking and blogs are now in use.” The below charts published in the McKinsey report demonstrate the consistent growth social media has experienced within the business world.

There are two ways you can leverage social media as a business tool: As an internal means to improve productivity and efficiency, and as an external means to further engage with your customers.

As an Internal Tool

Social media can be used as a collaborative platform to better share ideas and solve customer issues faster. Here social media is being used as a shared IT application, no different than the use of browsers for web surfing or applications for word processing. As a collaboration tool, it should be centrally managed with a set of agreed upon usage guidelines to encourage appropriate behavior that isn’t offensive and makes good business sense.

As an External Tool

Here is where inflated expectations sometimes lead to unrealistic lead generation, branding or awareness assumptions. The likelihood of acquiring a million users that want to use your product after reading your twitter feed is probably unrealistic, unless there is a highly compelling event that can give you the exposure for such traffic volumes. A more likely scenario is one where your customers reference and, ideally, praise your product or service within their existing social media sites and usage patterns.

The critical question to ask consider is “How easy are you to work with?” How difficult is it for one of your customers to extract data from your service and upload it into their social media sites? If it is easy, then social media might indeed have a role in your future growth. Also, what content are you providing? Is this information that will be helpful for them as part of their purchase decision and evaluation? What is of primary importance, however, is that you think about it now, and that you realize that the way we use social media will likely change over time. Today we are in the middle of a communications transformation. This means you have to be ready to make the time, effort and financial investment to stay current and learn with the rest of the other companies.

Just in the same way that every marketing and business plan should have a competitive review and a strong positioning, companies today writing a business plan or marketing plan must now have a Social Media component. Businesses must now recognize that this is not a trend that will quietly go away. Social media is an important communications vehicle that should ideally be used both internally and externally as part of your marketing and communications plan.

Gordon Benzie is a marketing adviser and business plan writer that specializes in preparing and executing upon business plans and marketing strategies.

5 Ways to Improve Website Usability on a Mobile Device

As a seasoned marketer that has written many pages of copy for websites, it is refreshing to now see a new trend now underway. There was a time not too long ago when a website’s content layout could simply be maximized for viewing by ensuring it worked on Internet Explorer, or “IE”. The early days of Firefox were sometimes challenging when image displays or text wrapping would not work quite right … but, it didn’t really matter too much if only 2-3 percent of your audience were using that browser. Website usability on multiple browsers is now a reality that marketers must embrace.

Today’s web browsing market is highly fragmented, a condition further exasperated with the proliferation of mobile “smart” devices. The dominance of IE is now gone (see: The End of an Era: Internet Explorer Drops Below 50 Percent of Web Usage). While desktop browsing is still the dominant format, mobile browsing has grown significantly, from virtually nothing three years ago to nearly six percent today.

So, what does this new evolving social behavior have to do with your business? Here are five considerations to evaluate:

How important is your website for lead generation? If this attribute is key, then how “user friendly” is your site? For example, how well can you actually read the content? How many images to you have on each page, which thereby forces the phone to auto size your text to be way too small? Is your competitor’s site more “mobile-friendly”?
How well does your website display on Safari, Android or Opera? These three operating systems comprise 94 percent of all mobile browsing activity. Given Apple’s current market share leadership for this segment (62 percent), it might be a problem if your site has issues with how it is displayed in this browser’s application. For example, is Flash on your site? Flash doesn’t work on an iPhone or iPad, so forget about a user being able to read or engage with this content.
How fast does your website load on a mobile device? This is critical for mobile viewers, as they might be trying to multi-task with another activity while searching your site, such as waiting in line to see a movie, pumping gas, etc. This type of “burst” web viewing has a low threshold for delays when accessing web pages; they will simply turn off the browser or move on to another activity that can be completed quickly.
If your “call to action” necessitates providing info, how streamlined is it? For example, if you are promoting registration for webinar or event, how many fields do you require to be completed? Anything more than 2 or 3 will start to push the limits of what can be accomplished on a mobile device, despite how well skilled your prospect is at typing on their smart phone.
How quickly can information be found on your site? What extent do menu hierarchies play as part of your website’s navigation structure? Whereas a desktop-based viewer has a mouse that can be easily used to track through several tiers of menu choices with a single click, this type of navigation simply isn’t possible from a mobile device.

As a general comment, how often do you check how your website appears on an iPhone, iPad or an Android OS device? If you only own a Blackberry, how informed a decision can you really make, given Blackberry’s meager 2 percent market share within the mobile web viewing market?

Fortunately, options exist to address these challenges. First, it is possible to build a mobile website without destroying your existing site. The use of a .mobi extension can make this possible; viewers can then see a version of your website that has been optimized for mobile viewing. And, if you are really serious, then an App for mobile devices might start to make sense, as it really does offer a much better interactivity experience than trying to simply find information on the web.

What other suggestions do you have on how to better design website for mobile usage? I would be interested to hear your feedback.