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Essentials of marketing
Ten Reasons Why Marketing Fails
by John Graham
The principles of marketing have been practiced and tested for decades.
Yet many business executives remain skeptical when it comes to making a
commitment to marketing. These are often the same executives who quickly
raise sales department budgets without giving thought as to what more they
could expect from the added investment.
Why is there so much reticence when it comes to authorizing marketing expenditures?
"If I spend a dollar, I want to know what I am getting for it,"
said the president of a successful corporate travel organization in response
to his management team's request for a marketing program.
The return-on-investment issue is a common query when marketing dollars
are at stake. Why is marketing often perceived as being unable to deliver
the desired results? Why are marketing programs often disappointing to those
who pay for them? Here are 10 possible reasons:
1. A failure to direct the correct message to the correct audience.
For at least two decades, the IBM message rang throughout American business
with undisputed clarity: You can't go wrong buying IBM. While IBM was praising
itself, along came a kid from Texas with his own message: "Just take
it out of the box, plug it in and go to work. If you need help, give us
a call." The Dell Computer message spoke to the customer. The IBM story
spoke to its sales force and corporate staff.
IBM's self-serving marketing message––like those of so many
other companies––was a primary reason for marketing failure.
Years later, the effects of that misstep continue to be felt. IBM roared
back as a computer services company, while Dell has never lost the lead
in PCs.
2. A failure to match the budget to the goals. Those who
build Indy 500 race cars make their point: "Speed costs money."
This applies to marketing, too. If a company is introducing a new product
or decides it wants to be the leader in its field, it comes with a substantial
price tag.
If the task is simply to maintain a marketplace presence, then the budget
will be much lower. Lofty goals and a low budget are a deadly combination,
almost always leading to the inevitable conclusion that the marketing was
a failure.
3. A failure to make a significant impact. Brylcreme’s
advertising slogan branded this men’s hair care product forever: "Brylcreme...a
little dab will do you." That might have worked for Brylcreme customers,
but not in marketing.
Unless results deliver higher sales, greater market penetration or a solid
flow of inquiries or customers, the program probably lacks impact. Too little
marketing may be worse than none at all.
4. A failure to use the correct techniques. A community
bank committed its entire marketing budget to buying billboard space to
advertise its credit card. In three months, the budget was gone and so were
the billboards.
The money was wasted because the wrong tactic was selected. A more appropriate
approach might have been to identify prospective customers and initiate
a repetitive direct mail campaign to enroll users. Print and radio advertising
could have been added to support the direct mail by increasing awareness
of the bank and its credit card.
5. A failure to be consistent. A long distance telephone
service reseller contracted with a large business association to provide
members with discounted rates. More than six months later, the sales manager
reported that only 100 members signed on. After one mailing and a little
telemarketing, the recruitment effort was all but abandoned. If an association
member happened to call, a sale was made. If location, location, location
are the keys to making a successful real estate purchase, repetition, repetition,
repetition are the three keys to successful marketing. It takes time to
impact the customer and this requires a consistent program.
6. A failure to grab attention. Much of the dissatisfaction
with the results of many marketing initiatives results fail from a failure
to make a significant audience impact. Fundamentally, the issue is commitment
or––more likely––a lack of it.
The dairy industry’s “Got milk?” campaign not only received
initial attention but continues to attract consumer interest with its Milk
Club, Shake Stuff Up tours, and college scholarship programs.
Got milk? grabbed attention initially––and won’t let go.
How different are the marketing efforts by most companies that come and
go so quickly, they don’t have time to register with their audiences.
7. A failure to understand the customer. What's missing
in most marketing activities is a proper customer focus. An association
was ready to print a brochure to help recruit members. A marketing consultant
was asked to review the materials at the last moment. He was immediately
struck by what was missing: no mention as to why someone would want to join
the organization, an incredibly common error.
A computer firm was also ready to print a marketing brochure when it was
discovered that there was no mention of why someone should buy the company’s
products. The brochure focused on what the company sold, while the reasons
for buying were missing.
How could this happen? Quickly analyze a selection of brochures, ads or
direct mail pieces and look for the focus: Is it the company, the product
or the customer?
Marketing that fails to speak clearly and accurately to the customer will
not be successful.
8. A failure to be on the cutting edge. There was a time
when stability, strength and vast resources were major factors influencing
buying decisions. Although they still play a role in decision-making, technology
has changed buying patterns.
Today, companies want to make certain that what they are buying is on the
leading edge. No business wants a Pentium IV chip when there’s something
faster. The technological bells and whistles often drive today's buying
decisions. "State-of-the-art” disappeared because it describes
what can be mistaken for a static situation, while cutting-edge conjures
up an image of action, progress and excitement. Cutting edge gets the purchase
order
9. A failure to do the research. When DaimlerChrysler’s
PT Cruiser hit the showrooms in 2000, the funky little vehicle sold at above
the sticker price. Why has it been such a niche marketing success? Luck?
Not a chance. The company’s market research people drew upon Dr. G.
Clotaire Rapaille’s psychoanalytic research on archetypes. Drawing
upon hundreds of “childhood stories” written by participants
while viewing a prototype of the vehicle, exterior design changes made the
car look even more “outlandish.” Sustained sales have followed.
If Buick had attempted to understand its customers’ “inner child,”
could its SUV, the Rendezvous, have been more appealing?
By understanding the customer, a product or service can be successful.
10. A failure to recognize results. Far too often those
who lack an understanding of marketing determine the definition of results.
Effective marketing has a cumulative impact and it’s often difficult
to identify results: Where did a particular sale come from? What prompted
the telephone inquiries? Why did the prospect you have been pursuing for
a year suddenly sign the order? Why is it easier to make sales than it was
in the past? Why are prospects more receptive?
Within three weeks of mailing its first newsletter, an industrial security
firm saw a surge of new business from both prospects and previous customers.
"It was like being hit over the head with a hammer," reported
the marketing director. At the same time, other firms receive leads but
fail to follow up, and then complain that marketing does not work.
The task is to create the proper environment for customers to be attracted
to do business with a company. "We had been trying to get through the
door of a high-tech firm for more than a year," reported the vice president
of commercial insurance sales at a regional insurance brokerage firm. "We
just couldn't make it happen––until the telephone rang one day
and the CFO asked us to meet with him as soon as possible." What made
the difference? Why the abrupt change? "The CFO read an article in
our newsletter that addressed the problem on his plate,” the vice
president noted. “He felt confident we knew how to handle it."
Marketing results vary. For immediate results, an offer with strong customer
appeal will prove worthwhile. At the same time, a consistent marketing program
can produce a consistent flow of business over a sustained period.
While not every marketing program produces the desired results, many may
come closer to the mark than we realize. Matching expectations with the
program is essential.
© 2004 Graham Communications
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John R. Graham is president of Graham Communications,
a marketing services and sales consulting firm. Mr. Graham is the
author of four books on marketing and sales, including Break the Rules
Selling: Success Strategies that Beat the Competition (Superior Books).
Mr. Graham writes for a variety of marketing and sales columns for
business and trade publications and he presents his Magnet Power presentations
at company and association meetings. He can be contacted at 40 Oval
Rd., Quincy, MA 02170; by telephone at 617-328-0069; by fax at 617-471-1504;
or by email at j_graham@grahamcomm.com. The web site is grahamcomm.com. |
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