Articles

A Short Course in Avoiding Marketing Stupidity

by John Graham

It’s what we don’t want to think about that always gets us. The CEO of one of the nation’s largest banks thought the Board of Directors was behind him, when they were actually going behind his back in finding a replacement. How could he have been caught off guard?

Being caught off guard may be the most pressing business issue of the day. Just when we think we have our arms around something, particularly when it comes to marketing, we’re not only surprised, but also embarrassed.

Here are eight issues that constitute a short course in avoiding marketing stupidity:

Avoid pushing your luck. It’s tempting to try to leverage your success. But it doesn’t always work. In 2002, VW launched the Phaeton, a fine product by all accounts. But it flopped and then faded because of poor sales. But a big VW badge on a luxury car? Consumers didn’t buy it, in more ways than one.
Hyundai did it right by building on lower-priced, quality-enhanced vehicles with great guarantees. As consumers came to prize these products, Kia introduced a luxury sedan, the Genesis, to rival Lexus. The message to consumers: Hyundai keeps raising the bar.

The only right marketing strategy is the one that resonates with the consumer.

Success can be blinding. For more than 60 years, Procter & Gamble has cleaned up with Tide, the world’s top selling detergent. But even winners like Tide can get caught in the wringer of a recession.

Evidently, P&G thought nothing could break consumer loyalty to
Tide, particularly with such an incredible track record. They guessed wrong, the Great Recession changed behavior and consumers opted for lower-priced detergents.

As Tide sales went down the drain, P&G finally came out with Tide Basic at 20% less than the original. Waiting far too long to make their move, the delay not only cost sales, but a fabled CEO his job.

In today’s world, anything that blurs objectivity can lead to tragic consequences and turn the tide.
Stop waiting for the past to reappear. Warren Buffet is betting big time that railroads will drive a spike in the trucking industry, 60 years after the 18-wheelers rode roughshod over freight trains.

Unfortunately, it’s easy to hope that what once was will reappear and almost always it’s the way it was when we were young. For some it’s the Cleavers, for others paternalistic employers or “a simpler life.” Perhaps this is one reason why Samuel Beckett’s mid-20th century play, “Waiting for Godot” has recently arrived on Broadway.
Most of us are waiting for something. Drycleaners hoping millions of men will shake off “business casual” and once again go to work wearing the “business suit.” While all things are possible, this one is even more doubtful now that Steve Jobs has been named by Fortunethe CEO of the decade.
By waiting for something to occur, we may miss major opportunities, like all those casual clothes.
Embracing technology is continuous. Such a statement seems out of place today. More and more offices are quiet today. The phones ring far less than in the past. Using the phone has become a sign of age.

Yet, libraries continue to buy hard copy books. And why would anyone want to carry about a book, when you can read it on a Kindle, an iPhone or some other electronic device.
Businesses send out email messages to customers, but most fail to take advantage of the capabilities of gathering information from customers to focus on individual needs and wants.
And then most businesses are still wondering how to make the most of the social media, even though their employees are busy tweeting and building a following throughout the workday. The best resource for learning how to take advantage of the social media is not only in our midst, but also on our payroll.
Going places is out. Is it too much to suggest that malls are passé, that bank buildings are anachronisms, that department stores are history and that ATM’s will soon outlive their usefulness?

Here’s the point: Because of technology, consumers see no need to take time to go places to take care of errands. It’s wasting time that could be better spent doing what we want.
If you can order a computer online that you have, in effect, designed, why can’t you create a car online? Do we really need car dealers? From all the empty dealerships, that is a rhetorical question. Of course stores, banks and movie theaters will not disappear completely, but their footprints will continue to get smaller and smaller.
With remote capture, fewer businesses are sending an employee to the bank every day. Talk about improving productivity. And some consumers are depositing checks the same way from home.
Get rid of your business cards. The business card is a 20th century phenomenon, with little or no place in a world where data is transmitted electronically. A box of 500 business cards lasted for a year or so, while today it is a career-long supply.

The continued use of business cards is also an example of how little things often lead us down the wrong path. It’s as if face-to-face has more value than electronic communication. The shift is ongoing: mail is out, fax is out, voice mail is out, telephone calls are viewed as interfering, there are fewer and fewer face-to-face meetings and texting is making inroads on email.
Business cards were a way we tried to impress people, often outrageously expensive. It’s much easier for a v-card to find its way into someone’s address book.
Forget about deceiving customers. Unfortunately, those handling Chrysler’s advertising may have missed this memo. For example, the Chrysler 300’s website touts “Innovative Technology.” When you check it out, the reference is to something called “uconnect,” which has to do with web and cell access, navigation, satellite radio and music. It has nothing to do with automotive technology. It almost seems like a smokescreen to cover up a lack of up-to-date engineering, something consumers might expect from a car manufacturer. Is this an attempt to cover up long-in-the-tooth engineering? Quite possibly. It may also help explain why Chrysler’s market share is in the single digits.

This is no minor issue. Since 1992 the Federal Trade Commission has told marketers they must have scientific evidence that a product will decompose in a reasonably short time for it to carry a “biodegradable” label. Yet, a number of companies continue to ignore the ruling. In the same way, some manufacturers shrink the products without lowering the price. Pringles cut the contents and Kraft’s Dairyea slices became lighter (the box was the same but the slices were thinner), for example.
When it comes to dealing with customers, transparency pays.
Nothing is forever. Companies take pride in permanence. “Established in 1831” suggests endurance and strength, or at least it did. Temple-like bank buildings exuded permanence. Today, these structures convey inflexibility and seem out of touch with the times.

The recent recession brought us a whole new retail category––“brushfire marketing.” With empty mall space the “pop-up stores” began appearing, creating excitement and the much sought-after buzz. Whether it was for a weekend, 30 days or three months, retailers from Gap to Hermes have been ringing up sales.
There’s also the “one-day online sale.” Famed designer Donna Karan offered a $1,695 purse for $400.
In the 21st century, it’s quite possible that permanence may be our Achilles Heel. Continuity creates comfort. But at the same time, it can make us far too comfortable. Nothing is forever, which may help explain why antiques have fallen out of favor.
Wonder whatever happened to travel agents?

Much marketing turns out to be ineffective and a waste of time and money because it is based on faulty premises and we’re surprised when we don’t get the results we expect.

John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He is the author of The New Magnet Marketing and Break the Rules Selling, writes for a variety of business publications, and speaks on business, marketing and sales issues. Contact him at 40 Oval Road, Quincy, MA 02170; 617-328-0069; jgraham@grahamcomm.com.