BACK TO REALITY

HARD LANDING

Prior to COVID-19, and the declaration of a pandemic in February 2020, characteristics common to many small businesses were that they were under-capitalised, under-resourced, found it difficult to recruit and retain good staff-members and, because of limited budgets, were not well profiled online, in the mass media and the marketplace. In short: exposed, vulnerable and driven by cash-flow. 

Federal government actions, policies and legislation collectively brought economic activity and mobility to a grinding halt. Welfare systems, in multiple guises and aggressive large fiscal outlays artificially propped up many sectors of the economy, commerce, society and differing infrastructures. This persisted through 2020 and the early months of 2021.

Figuratively and literally, seemingly Zombie companies – large and small – lived on (or persisted on handouts).

In the final days of March 2021, government-funded initiatives concluded, were wound back or selectively applied.

A widespread lack of strategic and contingency planning highlighted countless operational deficiencies and underscored time was needed to address and redress the prevailing immediate, evolving and, yes, returning marketplace realities. 

Sadly, when you run out of time,

you run out of money, and

typically, you are run out of business 

What happened to the multi-layered government workshops on social media, innovation, creativity and disruption? Such buzz-words and concepts have little currency in the face of tectonic structural marketplace shifts. 

Numerous participants of such activity did progress from being unconsciously incompetent, to being consciously incompetent. That is, they are now aware and sensitive that they lack the capital, hardware, software, people, skills, resources and time to fulfil (or approach) “the potential’. 

Such gaps are hard to close, expensive to redress, typically labour – if not resources – intensive. 

It seems that ongoing record deficit-funded, government-funded fiscal recovery initiatives will be the exception for the ensuing generation. Somebody has to pay the piper. 

New corporate values and visions will be embraced. Margins – profit and risks – will be narrowed. Internal efficiencies will be driven hard. 

Capital investments will be strongly concentrated among better resourced and capitalised medium to larger entities. 

WHAT ABOUT ME? 

Owners of small businesses will be well advised to reconfigure collaborations, extend well beyond attendances at networking meetings and seek loosely-structured “strategic alliance partnerships”. This is sage advice for the tens, if not hundreds of thousands of small business owners who saw their superannuation funds, in the form of the worth of their small businesses, rapidly evaporate. 

Value retention and optimisation will be best achieved through a measure of independence and control. 

Individually and collectively, these are key issues that should have been addressed during the periods of the pandemic-inflicted lockdowns and social distancing. 

Reality is back. The landing could be hard. 

Regardless of size, certain fundamentals apply, including: 

KEY PRINCIPLES:       

• Establish, isolate and maintain sufficient working capital to fund operations for at least 6 to 12 months. It provides time, control and choice.

• Generate immediate, ongoing cash-flows to off-set operating and variable costs.

• Determine optimal size and growth rates, based on working capital and cash-flows. Do not fear contraction.

• Monitor and manage fixed and variable costs, sustaining a balanced ratio between the two.

• Seek, recruit, induct, train and develop select team-members, ensuring they are well paid, recognised, celebrated, trained and involved. Being singularly indispensable is expensive.

• Plan and plan to - conduct regular participatory strategic audits and, progression, revisions and refinement analyses. Plan long, manage short.

• Formulate, document and implement an integrated branding and positioning strategy, to profile and enhance the presence of the company, product, services, apps and people profiles.

• Ensure that multi-channel marketing facilitates and expedites effective and efficient supply chains, high interactivity with existing, prospective and past clients.

• At all times respect and value the importance and nature of communications: they create and foster opportunities.

• Dispel the label small business, it is meaningless, limiting and irrelevant.

• When asked: How big (or small) is your business?

Answer: It’s about the right size, for now. That is, don’t be defined by the size of the business. Think big.

Barry Urquhart

Business Strategist

Marketing Focus

M:        041 983 5555

E:        urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

COME TOGETHER. RIGHT NOW

Corporate cultures, group dynamics, ambiences, internal and external relationships and personal commitments have each been impacted, compromised, marginalised, stripped bare and exposed by the ravages of the COVID pandemic. 

Momentum and critical mass have been lost, particularly in some key life-style, discretionary and economic-driving sectors. 

A progressive drift to online operations has accelerated into a rush. So too has the introduction of new payment, and rapid home-deliveries systems. 

Many processes have been trimmed, refined, sped up, with consequential increases of internal efficiencies. 

Consistent with such focus, the number, frequency and size of group team-member, distribution network and client meetings, gatherings and celebratory events have been reduced. 

The important aspects of fun and emotion are less conspicuous, influential and managed.  Where recognised, such are often rationalised and justified because of “the unprecedented times” of the coronavirus environment. 

Enjoyment appears to have been largely replaced by enduring in the current reality. 

Significant changes are also evident in communication strategies. Expenditure increases with online channels have overwhelmed contracting budgets for the traditional mass media of television, print, radio and out-of-home (outdoor). 

Emphasis is given to single, often time-specific offers with the orientation to product, price, place and promotion. A striking return to the pre-1963 sales era. 

Investments in brand-names, ongoing relationships and the life-time value of clients and customers are now secondary. Cash-flows and their immediacy rule. 

Among the natural consequences are substantial decisions in customer loyalty, repeat business, recommendations, referrals and advocacy. The value of, and payments for the latter two have become more isolated, modest and questioned. 

BIG WINNERS 

The standout high performers in sales and profits during the 2020 calendar year were typically larger scale operations and networks. 

Deep pockets and a willingness to invest on marketing, sales, promotions and multi-channel advertising, ensured a dominate, conspicuous presence and competitive advantageous profile. 

“Share-of-mind” did, ultimately, equate to share-of-market. 

Some marketing lores retained their currency, relevance and effectiveness. Consistency and continuity were virtues in a marketplace where consumers were attracted to brand names that were familiar and trusted. Such stood proud in a sea of turmoil. 

DISCOMBOBULATED REALITY 

Confused? You’re not alone. 

At present, throughout commerce, standards, benchmarks and traditions are in play and very fluid. 

Absolute measures are seemingly meaningless. Move over Albert Einstein. The theory of Relativity is being revisited, and re-applied. 

In isolation, and with social distancing, everyone appears to be determining and working within their own reality. Unity, integration and cohesion are spoken about often. Implementing, maintaining and developing such is more complex and challenging. 

A steady and steadying hand is reassuring. We all appear to have come the full circle. 360 degrees. 

The time has arrived for recommitment to corporate cultures, group dynamics, ambiences and relationships. 

Retreat to the nature of tribalism, founded on personal presence and interactions are evident. 

Invitations and commissions to provide customised keynote presentations and facilitate high-energy, interactive workshops are important components for Marketing Focus. 

The intent is not to rebuild, but rather to refine, refresh and individualise the “new”. 

Interestingly, this includes sessions on critical visual merchandising, positive, personal customer service and integrative company cultures.  

Above all, it is time to come together. 

EXCEPTIONAL EVENTS 

In the current period of “belt tightening” and financial rectitude it is not surprising that outlays and investments in the conduct of events for internal team-members, contributors to supply chains, franchises, members of marketing networks, clients, customers and associates at large are considered, and celebrated as being exceptional. 

Exceptions to the rules and prevailing norms standout, are recognised, often appreciated, valued and are recalled for extended periods of time. 

The reasons and rationale for the conduct of exceptional events are wide and varied.

Their resonance among invitees and participants are more pronounced than in the past, when such occasions were anything but exceptional. 

Such initiatives project a sense of confidence, which can be, and often is, infectious. Cash-flows are adversely impacted in the short-term. However, sharing goals, ambitions and offers are usually warmly received. 

Follow-up and follow-through practices maintain momentum and achieve critical mass. 

Success, like winning in sporting pursuits, is not a part-time thing. It becomes a habit, an expectation and it sets minimal standards. 

Australian long-distance running champion, Herb Elliott, is a fine example. He was never beaten in a mile-length event.  Or the metric 1500-metre adaption. 

Herb maintained his winning style in commerce, with sports equipment, and on Boards of Directors – particularly in the mining sector. 

Exceptional? Not really, just expected. 

Like Herb, we all need to put in the hard yards.

THE AUTHOR:

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

BEWARE: AIMLESS FUTURE

Lesson one.

The COVID pandemic has taught commerce many salutary lessons.

Philosophies, practices, structures and policies have all been reviewed, refined and above all, questioned.

The inherent rationalisations and justifications contained in the statement; we have always done it this way, carry no charter and little credence.

FIRST STEPS FIRST

Enforced social distancing and WFH (Working From Home) have necessitated business owners and leaders to embrace and implement delegated authority, trust and enhanced multi-channel communications. Interestingly, some subordinates felt exposed and vulnerable.

Centralised decision-making and micro-managing have rapidly, if not instantly, become obsolete, to the shock of many.

The measures and monitoring of efficiency, productivity, accountability and transparency are difficult and subjective in such isolated circumstances.

Regular and periodic on-time Zoom meetings have produced their own by-product, Zoom fatigue.

Unexpected and unintended consequences have gone viral. Mandatory participation has ensured individuals have connected. Engagement is quite another thing. Follow-up and follow-through have been in many instances forlorn hopes.

All long-standing rules seem to be up for negotiation. By necessity, corporate values are being finessed.

CONSEQUENCES

Career-paths appear to now have short horizons. Navigating such is difficult – finding “true north” on life compasses is challenging.

Achieving and sustaining a power-balance is difficult to measure and qualify. The very art and practice of collective bargaining group negotiations are impacting the roles, images and perceived worth of professional associations and unions.

That alone has put a question-mark over, or intense scrutiny on the innate value, worth and future roles of such entities. Memberships have fallen in countless cases, and renewals are difficult to secure.

Commerce, as known and experienced before January 2020 at the time of the pandemic onset – has not been destroyed. However, in varying degrees, it has been de-constructed. The essential parts, expertise and experiences and, yes, intellectual property, remain.

Reconstruction is underway. Barriers, impediments and filters have been marginalised, or eliminated.

“New-world” is a somewhat trite but accurate label.

Jim Collins’s contention that Good is the biggest enemy of Great has become to some extent redundant. In this new world nothing should be holding one back. Figuratively speaking, the arrival of COVID-19 paralleled “The Big Bang”. Accordingly, there is no past, in a literal sense.

Original thought is omnipotent – for those who dare to think big.

That which was until recently thought to be impossible is now possible. The allocation of sufficient funds, resources and cerebral energy are imperative – but not necessarily stiflingly expensive.

Success (or the degree of success enjoyed) will be influenced, if not determined by time and timing. However, in these “unprecedented times”, control is difficult to acquire, exercise and maintain.

Therefore, goals, objectives and outcomes will need to have some flexibility and tolerance. Being philosophical may be more relevant than being type A – bad news for work-a-holics.

TOUCH DOWN

Tom Brady, the 42-year-old quarter-back for the Tampa Bay Buccaneers NFL football team in the USA is a refreshing case study which highlights that chronological age accounts for little.

He now has seven Super Bowl rings, as evidence of his ongoing and recurring success. But he’s not finished yet. He intends playing next season. After all, he does have eight fingers – suggesting unfinished business.

He brings to the table experiences, expertise, discipline, commitment, passion and self-belief. Tom thinks big and has been rewarded for it.

Nineteen years of top flight is generational, ask any actuary. Repetitive? No way. Malleability ensures durability, sustainability and resonance, which collectively creates an aura of leadership.

Clearly, he looks through and beyond goal-lines.

THINK, ACT BIG

Incremental change counts, and accounts for little in the current volatile marketplace.

Risk tolerance is not mitigated with an attitude of “more of the same”. Competitive advantage is difficult to maintain, or attain, in such circumstances.

Break-free. Be bold, daring and different is an appealing and seemingly, an appropriate mantra.

Think, talk and act big – then deliver such promises, hopes and aspirations.

Guilt-free errors, mistakes and underperformances will, in the main, pass rapidly. It’s an exciting set of learning experiences, which is energising, exciting, fulfilling, rewarding and motivational.

Imagine. Accelerated growth, performance and satisfaction – edict-free organic innovation, creativity and possibly, a little disruption. The latter is qualified because precedents and established practices, perceptions and perspectives are not constraining considerations.

In the purest sense, delegate, trust, support, recognise, celebrate and reward ... because,

                        We are all in this together.

Barry Urquhart

Cultural Change Consultant

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

UNINTENDED CONSEQUENCES

Effect.

Outcomes often extend beyond what was intended, or expected. They underscore the inexact nature of targeted communications and marketing, and a lack of understanding and specificity of primary audiences.

In an increasing number of instances the size, worth and responsiveness of secondary and tertiary target markets exceed those which have been identified, isolated, analysed and focused upon as probable and preferred customers and clients.

The allocation and deployment of scarce resources, to reach out, connect with and engage all appropriate cohorts is a perplexing conundrum for business owners, managers and service providers.

Prospect-leakages are common and profound, impacting on and compromising effectiveness, efficiency and productivity. It is a recurring cost borne by most commerce. It provides explanations, in part, for the unattainable goal of maximising sales, market-share and profits. Moreover, it provides currency, understanding and a differing measure of rationality for optimising endeavours.

The current global digital economy consumers – corporate sector and individuals – tend to be more assertive and active than in the past. Previous strategies, which were founded on mass media, analogue channels, passive audiences and intrusive messages and initiatives, are necessarily being subjected to review, refinement and recalibration.

Selective perception, message rejection, and subjective, emotion-based evaluations persist. However, in a grossly over-communicated society the “communication fog” is more enveloping. Seemingly, boundless information exists and is being projected and articulated, but to less effect.

It is not that the intended recipients are immune. Rather, they are more oriented to specific platforms and channels. Influences and influencers are more self-determined, often of questionable credibility, transparency and integrity.

Long-established, traditional mass-media sources have been subjected to intense and repeated scrutiny. Negative and qualifying fallout is inevitable with repeated references about “fake news”, “social-bias”, “left-wing”, “right-wing” and “after-dark” commentaries.

Truth, balance and objectivity seem historic virtues.

The accuracy of the mass-media commentary is considered to parallel that of economists and weather forecasters (or meteorologists, who are deemed to be in a parallel universe).

Against a background of popularist politics, personified with the pretence of Donald Trump, Recep Tayyip Erdogan (President of Turkey) and Rodrigo Duterte (President of Philippines) and unsubstantiated tweets on social media, the causes of unanticipated consequences are difficult to source, and therefore to analyse, influence and implement.

REPETITION

Effective initiation of conversations and the guiding of narratives can be a function of repetition and volume. Getting above the clutter of “white noise” (unobtrusive background ambient sound and messaging) requires concise, specific, attitudes, opinions, values, perceptions and intent, which are consciously “packaged” as “authorative”, “authentic facts”. Really? Well not real, but executed with intent.

Endorsers, ambassadors and advocates who pass on, share and “like” communications, multiply the exposure and acceptance of key messages. However, the original initiator loses control of the distribution process.

Unintended and unknown audiences typically result in unintended and unknown outcomes. Philosophical acceptance is understandable. One can only do what one can do, and what one intended. The consequences are in another realm and are another dimension.

INTERDEPENDENCE

The COVID-19 pandemic has highlighted the interdependent nature of businesses and demand. In many, if not most cases, such relationships overlap and integration were not recognised nor considered in the formulation, documentation and implementation of strategies and tactics.

For example, retailers of homeware have learnt that a long-standing competitor was the tourism industry. Week-in and week-out sales, revenue and opportunities were lost to self-indulgent expenditure which was centred on interstate and international travel, accommodation, dining and experiences.

Hard-border lockdowns imposed by governments narrowed options and channelled both attention and expenditure on “hard-products” from the homeware (among others) sector.

Alas, a further case study of unintended consequences.

Who would have thought? Who would have, and did know?

It’s time to awaken to the realities and complexities of the contemporary (probably not new) world – and to the many unintended consequences.

SELF-LIMITING

Self-belief in one’s ability to discerningly and discretely target narrow-based audiences, limits the scope to generate widespread interest, demand, sales, revenue, profit and ultimately repeat and loyal business.

Cascading exposure and impact should be accepted, welcomed – free from the desire to justify and explain such unintended consequences. Be philosophical.

 Such does not fall within the bounds of chaos theory.

CONCLUDING OBSERVATIONS

A butterfly flutters its wings in the Amazon basin, Brazil, South America.

Meanwhile, on the plains of Africa...

Consequences. Unintended.

THE AUTHOR:

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

“LITTLE ME” BRANDS

Shrinkage. It’s the antithesis of the mindset of the last 29 years, a period of continuous buoyancy and growth.

Contraction in numbers of outlets, product/service ranges, inventory levels and the size of premises first emerged and progressively developed during 2019. The onset of the COVID-19 and the pandemic simply accelerated, rather than caused, the trend. Retailers, Australia-based in particular, have been at the forefront. No-one in that sector it seems is immune. Long-established, recognised and preferred brand names are conspicuous among the down-sizing, including:

·         Noni B                                    Target

·         Portmans                               Big W

·         Rivers                                     Myer

·         Peter Alexander                   David Jones

The fate has also fallen on leading global brands in the dynamic fast fashion sector, including H&M, which has announced the pending closure of some 250 stores, which represents around 5% of the 5,000-outlet network.

THE BIG SQUEEZE

Senior executives and Board members have justified store closure decisions on “unreasonably high rentals” and leakages to online sales.

Both are strategic factors which have long-term implications. Other important issues are at play. In the digital era, consumer mobility is not limited to geographic constraints.

Instant and ready access is convenient, tempting and an efficient generation of enquiries, transactions, revenues, profits and the foundations of ongoing, mutually rewarding relationships.

Multi-channels are effective in communications, supply-chains and service delivery.

Multiple new payment systems have democratised business – consumer interactions and repeat transactions.

Deliveries, home deliveries specifically, have remodelled and prioritised buying decision criteria.

How do you transact? And, when do you deliver? Such questions are primary discriminators and differentiators. They have both evolved, from being virtues to imperatives.

In all instances, geographic considerations and constraints have been marginalised.

The productivity attainable, and supply-chains, networks channels and apps, are not necessarily determined by size or physical presence.

MILITARY PARALLELS

What-ever happened to “pocket battle ships”? Their value was to qualify the power of the punch rather than the size of the puncher (user).

Military forces, Australia’s as an example, are not necessarily growing. Prime focus is on specialisation. Drones, remotely controlled, are examples. So too is the deployment of special-forces, like the SAS (Special Air Service) and commandos.

The charge of the Light Brigade, Waterloo and the Western Front in World War 1 will remain on the pages and chapters of history.

The need for extensive distribution networks (retail footprint) has waned in recent times. Access to digital channels, online transactions and sophisticated logistics satisfy intending customers.

Impulse and spontaneous purchases, stimulated by exposure to retail premises, have been overwhelmed by mobile phones and like instruments.

Share of market is now often a function of share of digital (rather than physical) presence. Bold statements about being big, bigger or biggest are largely outdated, irrelevant and ineffective.

The distribution, deployment and support of resources can now be achieved with, and by “Little Me” brands. Shade of Disneyland in Anaheim, California, and one of its most popular rides;

                                    “It’s A Small, Small World”

All one needs to do is to stand up, speak up and stand out.

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

OUT OF REACH – SUSTAINABILITY

Time. It is a fundamental aspect which differentiates marketing from sales.

Sales are typically transactional. That is, the product, service or app are available, accessible and, often, consumerable now.

The strategic nature of marketing requires investment in, and the allocation of multiple resources – people, branding, positioning, supply chain, service delivery and support, as well as follow-up and follow-through. Those all take time.  

Sales performances can readily be tracked, monitored, qualified and monitored. Charts, regardless of format – pie, bar and trend – are graphically descriptive. 

Unanswered in many instances is the question, why? Price alone provides limited, possibly two-dimensional responses. If only life, and commerce (in the digital era) were so simple. 

Determining, analysing and quantifying the returns from a strategic marketing investment into branding are more complex, and usually evolve over varying extended periods of time. 

The clock is ticking. Stopwatches are typically restricted to specific time-constrained events – sales, promotions and new product releases. 

Time horizons tend to be contracting. Sustaining momentum and presence on the way to achieving critical mass is difficult. It is a genuine challenge. 

WHAT TREND LINES? 

The art of forecasting, projecting and budgeting is becoming increasingly questionable. 

Demand, foot traffic, revenue, profits and costs oscillate, often in pronounced manners. 

Maximising margins and profits seems to be a forlorn hope. Even optimising, upon reflection and projection, appears to be beyond reasonable reach. 

The “dark art” of economics is increasingly under review. An allocation of scarce resources is very subjective. 

An evolving consensus is developing about economics and economists. Both are typically wrong. The only point to ponder and to seek concurrence is, to what degree or measure. 

The common attribute to most trends today is that there is no trend. So much for maximising, optimising and achieving ultimate productivity. And then there is the question of... 

SUSTAINABILITY 

Hold on. What are we writing and talking about? Maintenance, survivability and sustainability. 

Common among those who have, and will, endure is that they will do so in a very changed state – physically, psychologically and operationally. 

Hence sustainability differs from resilience, which, essentially is to “snap-back” to an original form. 

That very reference conjures up images for “politician-speak”, about a hoped for undetermined post-pandemic period in which the economy, society, commerce and health will, “majestically”, snap-back to a resilient state. Hope springs eternal. 

A NEW DAY 

Existence and persistence in a new day will require a new form, in its many dimensions to “best-fit” the new environment and circumstances. 

All measures, time horizons included, will need to be recalibrated. In all probability the new reality will have limited sustainability. Alas, that is the nature of the prevailing and rapidly evolving marketplace, economy, society and set global forces. 

HOLD ON 

Little value will be assigned to an attitude of “hold on”... on several counts. 

In the first instance, decisive thinking, decision making and implementation require a sense of immediacy. Don’t hold on, or procrastinate. Act now. 

“Holding on”, physically and metaphorically, will have little credence in periods of quantum change. 

An answer lies in cutting ties with the present and the past. Adaptability is the key and the pathway to sustainability. 

The implications for branding, supply chains, communication channels, marketing, sales, strategic and tactical initiatives are profound. 

Adjectives, like “contemporary” will take on different and important meanings. For example, the customer experience of today will, in all likelihood, be different to the customer experience of tomorrow. Such adaptability, malleability and fluidity will be the initial stepping stone to sustainability. 

CONCLUSION 

Lineal thought has been, is, and will be, redundant in pursuit of sustainability. Lifetime learning will take on refreshing new perspectives. Embrace both principles, and sustainability could well be within reach. 

Chorus line please, Elton John:

                                                            “I’m Still Standing”

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

WHO DO YOU TURN TO?

A rush to the doors has been evident during 2020, with pandemic-fuelled retrenchments, dismissals, business failures and unforced closures.

Years of expertise, experience and training have been lost to entities, sectors, commerce and society. The subtle art of nuances, understandings and corporate cultures have been shelved and compromised.

Customer service standards and consumer expectations have been adversely affected.

GROWTH INDUSTRY

Generous, loosely defined structures and administrated incentives, training and support initiatives, funded by Federal, State and local governments have been catalysts for a growth industry. That is, the creation of not-for-profit entities, whose primary beneficiaries appear to be their own employees and sub-contractors.

Under-resourced micro-small businesses, typically employing two or fewer people (in some instances up to five), are targeted for basic, introductory and rudimentary 2,4,6 and 8-hour courses in social media, finance administration and other detailed  issues.

As if such complex issues could be resolved with limited exposure, led largely by subcontractors who have graduated in the past two, three or four years with  little practical experience and expertise in managing departments, leading teams and operating businesses. Reality often strikes with telling force. Participating small business owners soon realise that applying newly-learnt skills requires time, money and resources. Priorities need to be set. Time spent at a console forsakes the opportunity to speak to, influence and enthuse, existing, prospective and past clients. Cash-flows? What cash-flows?

WHAT MESSAGE?

Small business cohort members have learnt to despair at the exhortations of trainers about the need to be creative, innovative, original and disruptive. Words! Merely whims.

Such urgings, well intentioned as they may be, represent little value and provide sparse substance, foundations and directions.

Motherhood statements are not bankable in the prevailing locked-down local marketplaces, state economies and commerce at large.

Moreover, in excess of 80% of prospective customers, sales, revenues and profit lie with past, often established customers. In the main, they are not seeking, or demanding, creative, innovative, original and new products, services at standards.

Re-establishing, supporting, complementing and celebrating relationships are greatly valued.

MORE EXPERTS, THAN EXPERTISE

A striking characteristic of the growth industry which has rapidly evolved because of and during the pandemic is the presence of countless experts, espousing often pre-packaged resolutions and actions.

In many instances the targeted small business owners are the means to gain access to government funding, which is essential for the employment of the experts and their subcontractors.

Like so many things in the digital era, the clients have become the product. Look no further than the marketability of the privacy details of the applications and platforms on social media. Access to these (and to the social media users) is marketed and sold to advertisers.

A lack of precedence, experience and past lessons learnt dictate the need for customisation of unique and varying situations that especially confront individual small to medium-sized enterprises.

Generalised concepts, campaigns and strategies will typically lack the capacity to achieve impact and to resonate with primary, secondary and tertiary target audiences.

BE BOLD

Collaborative endeavours by grouping the owners and managers geographically “local” businesses are laudable, but largely ineffective.

Many skill-sets and experiences are not readily transferable and applicable to a broad spectrum of entities, sectors and precincts.

Scant funding inhibits capacities to perform, to recruit and to deploy. Some things similarly need to be paid for. That is the nature of investments.

Copy-cat marketing abounds in the prevailing challenging economy. Anecdotal evidence show success rates are isolated and marginal. Customisation is an imperative to address, satisfy and fulfil unique needs and expectations.

Implementing idealised outcomes and goals, free from operational, financial and established constraints can be energising, accelerating and educational. Defining quantifiable measures instils appropriate measures of structure, monitoring, reviewing and refinements – the essential nature of WHAT.

The issue of HOW should only then be addressed.

CONTEXT FIRST

To win back and retain customers requires businesses, big, small and medium to provide, promote and extend compellingly attractive ambiences and positive experiences. That is, context precedes the importance and sequential flow of content.

Managing expectations, and delivering the promise are effective means to generate and to enhance traffic, be it foot, social media, telephone, text and yes, even mail-based.

Energy and urgency create emotion, which still represents the largest force for demand, selection and transactions.

RETURN TO ME

It is inevitable that most businesses, having endured the coronavirus pandemic, will be smaller, with reduced team-member numbers, narrower and contracted product ranges and restricted supply chains.

None of these should impact on the ambience, experience and customer service extended to existing, prospective and past customers.

Achieving an increased rush to the ingress lane of the doorways will require an initial focus on winning and welcoming back key frontline service providers.

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

“BLANKET” COVER SUPPRESSES ACTIVITIES

Much of Australia and the world has gone to sleep. Many have pulled up the doona, rolled over with no intention of charging forth, to “take on another day”. 

Consumer and corporate confidence have tanked. Actual capital investment has in recent months declined appreciably. Plans and expenditure budgets have been trimmed. 

Discretionary purchases have been reined in, many because of government regulatory constraints. Interestingly, for those who are active in the marketplace, indulgent purchases abound, to the relief and financial benefit of a host of vendors. 

Entrepreneurial and creative marketing spirits continue to encounter barriers, filters and impediments. 

Some commentators contend that they shouldn’t take it personally. The policies are being applied to all. 

Therein lies the dilemma. Cascading consequences will deepen downturns and extend appreciably extend recovery rates and periods. 

Tolerance of risk among banks, financial institutions, seed capitalists and investors at large is low. 

Opportunity costs are escalating and opportunities forsaken. 

“One size fits all” is not an attitude of mind or policy framework that fosters enterprise or endeavour. 

Individualism has been marginalised, if not lost in many instances. 

RAIN ON MANY PARADES 

The visions, aspirations, beliefs and hopes of countless business leaders and consumers are being dampened. 

Even those with commendable long-term track records of high performance are being marginalised, and in many instances rejected. 

Dramatic reductions in marketing, advertising, promotions and merchandising budgets are widespread. Momentum, revenues and profits are being constrained as a consequence. 

Each are “victims” of blanket assessments. 

Stereotyping is omnipotent, and reflected in common phrases: “Baby-boomers aren’t buying”. “Millenniums can’t afford first homes”. “Everyone is working from home”.  “Buying online is the only way”. 

Truisms are flawed, typically misleading and can be greatly influential. 

SEGMENTING STRATEGIES

Since its genesis in 1947, the marketing discipline has significantly influenced, determined and reflected consumerism. 

Brands have been developed, networks established and fortunes made by astute applications of a broad spectrum of marketing philosophies. Foremost among those has been “market segmentation”. 

Audiences, target groups, clients and consumers were segmented, differentiated and communicated to with customised messages, offers and opportunities of on-going relationships. 

Over a period of some 50 years segmentation regressed into fragmentation. Groupings and clusters became too small to be economically viable to service and satisfy. 

In more recent times, ironically within the digital era, cohorts overwhelmed segments. The generalising of mass markets in the global economy has created noticeable divides. “Males”, “females”, “SUV owners”, “conservationists” and “vegetarians” have become ill-defined classifications. 

Not all males or females act, think or consume in unison. Conservationists have divergent beliefs, systems and values. Vegetarians are not a monolithic block or market presence. 

It’s a complex society and marketplace. “Blanket” covers, policies, strategies, tactics and campaigns seldom achieve and sustain optimal performances. That is true in business-to-business and business-to-consumer interactions and relationships. 

Therefore, centralised decision-making may well reduce exposure to and the cost of risk.  However, it will come at a cost; that is, opportunity cost. 

Delegated authority. Nuanced communications. Onsite value assessments. Each has been a cornerstone of dynamic, responsive and developing free enterprise. Failures, percentages of losses and lessons learned have been, integral parts of the complex web of commerce. 

Remember,

rules are for guidance, not obedience 

That principle does, or should, apply to blanket covers. 

And finally, don’t be patient. Impatience drives activity, productivity and typically leads to profits and wealth accumulation. 

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

UNSOCIABLE SOCIALISM

You’re on your own.

A sobering realisation of maturity, independence and private enterprise is that, of varying degrees in western societies (Australia included) one has not and could not expect to be reliant on the support, often financial, on others, government included.

Capitalism is founded on the principle that market forces prevail. As a result, there are winners and losers.

Those tenets changed with the on-set of the coronavirus, COVID-19, and the declaration of a pandemic. Government decisions, legislation and regulations impacted commerce, society, lifestyles, families and individuals. Businesses were rendered unviable. Many were literally and figuratively closed down.

Compensatory payments and support were extended to businesses, employees, communities and sectors.

Such largesse softened, but did not avoid, the consequences. National recessions were registered, unemployment rates soared, international travel was all but eliminated and personal, social habits changed – possibly forever. More money and increased deficits will not, in isolation, achieve a growth economy.

Social distancing, hand sanitising, social isolation and working from home became the norm, and accepted as the expected.

DISTURBING

Increasingly, the public expressions of business leaders have reflected significant changes in attitudes about, tolerance of and desirability for SOCIALISM.

In Australia, venture capitalists have stated that the market-worth and sustainability of a large, full-service and wide ranging private airline will be dependent on some degree by continued payments of employee wages support by the Federal Government. Is that contradiction writ large?

The creeping hand of socialism implies a widening acceptance of dependence on the public purse. Risk tolerance is in play.

These values are philosophically different and distinct from social conscience.

Free enterprise and independence will be compromised.

ACTION REQUIRED

Recovery from the Federal Government-induced recession will be long. Increases in taxes receipts will be needed and inevitable.

New, more dynamic and malleable business models will be required. Supply chains will be refined, product (service/application and sources) will be increased, as will payment, communications and home delivery systems.

Partnerships and collaborations will be established, to mutual benefit.

Doubtless, considerations will be given to involvement in “public-private partnerships”. The recent track-record of such in infrastructure developments has been less than laudable – and short of being financially rewarding.

ROCKY ROAD AHEAD

Overall, the path to the future is strewn with boulders, a few pot-holes, and a number of twists and turns.

The need exists for attention, hands-on-the-wheel, and measured acceleration. Being a ‘four-on-the-floor’ entrepreneur was for another time, economy and marketplace.

A one-pace or two-paced economy is unlikely in the immediate and intermediate future. Forecasts and long-term navigation will have questionable veracity and accuracy. Those seem simplistic.

Rapid-response opportunism will be rewarded, certainly in the shorter-term. That proposition alone marginalises the probable positive role for government intervention, participation and support. “Creeping socialism” is, seemingly an apt term of phrase.

The scope for such collaborations will be extremely limited for an overwhelming majority of small to medium enterprises. Scale alone will bias the focus and participation of government to larger entities.

REVENUE-GENERATING ADVERTISING

Public sector-funded mass media advertising campaigns seldom generate and sustain widespread increases in revenue and visitations.

Well-intentional campaigns imploring and promoting the virtues to “buy, visit and support local” are laudable, but marginally effective.

Initial responses to such missives are positive. However, in the longer-term and final analysis consumers are driven by self-interest.

FORCED CHOICE

Aspirants and advocates value choice and control.

Creeping socialism, no matter its scale or nature, impinges upon those attributes.

Pursuits of agility and mobility are compromised by the presence, influence and processes innate to bureaucracy.

The stark choices confronting commerce at present are not binary. Free-wheeling, unencumbered laissez-faire enterprise is, at present, rare. So too, is over-powering ubiquitous socialism.

Locating an optimum-point on a scale between the two extremes is somewhat arbitrary. However, it is necessary.

Tolerance, understanding and compromise will be important.

SOBERING REALISATIONS

So, as in life, failure is often an orphan. Success tends to enjoy extensive maternal and paternal relationships.

Going forward, it is advisable that business owners, leaders and managers accept the challenge that in pursuit and attainment of success, they accept that to a great degree, “they are on their own”. But not alone, exposed and vulnerable.

 Barry Urquhart

Business Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

AFFORDALE CONFIDENCE

Be careful. 

Signs from the marketplace can be, and are, confusing, conflicting and misleading. 

A recent national nine-week series of surveys revealed a consistent growth in confidence of Australians. It attracted national headlines, particularly the figure 98.3. 

For those statistically-illiterate, and those who simply scanned the media release text, many interpreted the quantum sum to imply, if not declare, that 98.3% of Australians were confident. Not so. 

Indeed the study nominated the national “norm” to be 100. Therefore, 98.3% was a negative numeral, albeit marginal. Alas, some things are relative rather than absolute. 

The implications and application of these quirky characteristics of attitudes, perceptions, expectations and, yes, confidence are profound and widespread. 

BUYING CUES 

High and strengthening degrees of consumer confidence are not necessarily definitive and accurate measures of probable increases in demand, sales and revenues. 

In the same study, some 42% of respondents stated that now, in the depths of the COVID-19 pandemic (and lockdown), was a “good time” to buy major household items. 

Those two dimensions only tell part of a complex story. 

A similar figure (42%) of people expect “bad times” for the Australian economy over the ensuing five years.

Indeed, there is a difference of some 64% in the expectation of it being a “bad time”, rather than a “good time”, overall, in 12 months’ time. 

Against the backdrop of the nation having the second highest personal debt levels (204% of average annual income) after Switzerland, probable double-digit unemployment and a pending recession for the first time in 29 years it is improbable that a mass surge of consumer demand appear in the marketplace any time soon. 

Not even big discounts, sales events and other incentives will be effective in initiating and sustaining enhanced demand. 

Those endeavours may in fact suggest a lack of confidence among the promoters. 

IT’S PERSONAL 

A significant feature of the research findings was the fact that a sizeable percentage of Australians were more confident about their own personal circumstances and prospects for the next 12 months than they were for the national economy at large. 

Self-belief and self-confidence are powerful forces. They can be, and often are, subjective and emotional. 

Therefore, the entrepreneurial flame will not be extinguished. The rate of business start-ups and growth initiatives may become more tempered and measured. However, the spirit will persist, particularly as retrenchments, furloughs and employment dismissals continue, as a consequence of the coronavirus pandemic. 

In marketing, personal and personable communications have the capacity and prospect of eliciting positive responses. Care needs to be taken, and details noted. 

The study findings highlight differing expectations for the time horizons of one year, five years, and beyond. 

Striking a chord will be a matter of the right message at the right time. 

CIRCUMSTANTIAL REALITIES 

It is inevitable that the one constant in the unfolding decade, as Australia and the world emerge from its first widespread recession in 29 years, is change. 

Individual and collective moods will oscillate, rapidly and substantially. Accordingly, responses to external variables and stimulants – including advertising, marketing and merchandising – will vary appreciably. Unpredictable? Yes. 

A rejection, dismissal or deflection today will not, and should not, be considered an emphatic, categoric and ongoing, NO. 

Moods change. So too do confidence ... opportunities, demand, sales, revenue flow and consumption. 

VERY SAUCY 

In many respects, confidence can be, and should be deemed to be the sauce that lubricates the wheels of commerce. Without it there is friction, heat and adverse consequences. 

Like COVID-19, confidence is infectious. Once the factors of being able to afford expenditures, employment security and income stability and continuity are addressed, redressed and neutralised, confidence will overcome or overwhelm apprehension and risk tolerance. 

Presuming and asking for the business reflect and project confidence. 

Has there ever been a better time to invest or buy? Repeat after me: 

I confidently believe... 

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

FROM “THE OTHERSIDE” - A DIFFERENT PERSPECTIVE

Make a mark.

Recent statements and projections by the Australian Prime Minister, Scott Morrison, are interesting, upbeat and questionable.

The core focus, if not primary cause, is COVID-19 and the related lockdowns and self-isolations.

References about “the otherside”, “spring-back”, “snap-back” and “bounce” are essentially subjective, and probably hopeful.

Australian business leaders may well recall, and be drawn to memories of  the late media magnate, Kerry Packer, at the time of a massive heart attack, when he reportedly “died” for some 20 minutes.

In a subsequent press conference and in response to a question about his experience, he declared, in his own imitable style:

“Believe me, son, I’ve been to ‘the otherside’, and there is nothing f**king  there.”

So, Prime Minister and all in commerce, once we arrive at ‘the otherside’ if may need a lot of “greenfield” construction. Achieving and sustaining “snap-back” and “bounce” will doubtlessly take time, money and resources.

In this journey there will be no definitive answers to the perennial question, which typically emanates from the rear seats:  Are we there yet?

Many entities will not survive the transition.

Among the casualties will be established rules, conventions, relationships and supply chains.

Clients and consumers will have been exposed to differing choices, experiences and value-propositions.

Accordingly, new purchase routines and criteria will have been embraced and applied.

PRESUME NOTHING

A total change is unlikely, and improbable. However, most aspects and variables will be subject to review, refinement and development.

There will be little point in, “Scomo, from Marketing” (the Prime Minister) reprising his often touted past advertising campaign, when employed at Tourism Australia.

Having Lara Bingle, or any other attractive bikini-clad model hollering: 

Where the bloody hell are you? 

will highlight that, on the otherside, many will be lost – consumers and businesses. 

Re-acquainting with clients and customers will be advisable, if not imperative. They will be an essential element of change, and the change process. 

Realignment of philosophies, values, missions, goals, objectives and targets seems inevitable. In all likelihood the changes will be structural, strategic and, in many instances, substantial. 

Supply chains, payment systems, service expectations, policies and practices and people will be, or should be subjected to forensic analysis. 

Capital adequacy, risk profiling, expected internal rates of return and inventory levels (and distribution) should, ideally, be assessed, determined, documented, declared and adhered to. 

ZERO-BASED PLANNING 

It will be prudent and appropriate to begin the planning process with a clean slate, free from the encumbrances and limitations of past practices, but influenced by experiences, training and expertise. 

DON’T WAIT FOR GOVERNMENT 

The lock-down scenario and its many and varied consequences provide a sound basis for reforms to business tax, superannuation, negative-gearing and GST by the Australian Federal government. 

Sadly, it will be a forlorn hope, unrealised, for those looking for government leadership. 

Therefore, certain fundamental characteristics of the economy and marketplace will persist because of inaction, inattention and a lack of resolve within the political fraternity. 

Individuals businesses and leaders may not be alone, but will do their best if they go for it on their own. 

REVIEW, REFINE RESTRUCTURE 

On the otherside, nothing will be immune to detailed analysis within organisations, big and small. 

All twenty elements of the marketing mix will, or should be, subject to study. 

THE PRODUCT/ SERVICE RANGE 

It is noticeable that throughout the world, department stores, supermarkets, motor vehicle manufacturers, manufacturers, media groups, accountancy practices, profession associations and service centres have all declared an intention to reconfigure (and in many instances, reduce) product/service ranges. 

Proposed smaller, narrower, and leaner offerings reflect the importance being assigned to relevance, productivity, efficiency, effectiveness, financial prudence and longer-term viability. 

Supply-chains will be revised, with greater emphasis on local production and sourcing. National and individual security will demand no less. Globalisation will begin to wane and nationalism grow.

The concepts of cross-subsidising and ambitious financial gearing are being assigned to history in many cases. Products, categories and clusterings, and space allocations will need to be closely monitored profit-generators. 

Attendant structures, disciplines, philosophies and practices will be needed to ensure adherence and optimisation.  

TARGETED AUDIENCES 

A logical extension will be the need for determination of the profiles of, connections with and the servicing of primary, secondary and tertiary target audiences. 

Old-style, long-established demographic and psychographic determinants will inevitably be obsolete, and replaced with more relevant common characteristics. 

This aspect alone will isolate and highlight to many management teams, just how little they really knew about previous preferred clienteles. 

Better, more detailed appreciation of clients and customers will contribute to better understandings, more effective communications and interactions, and enhanced, more resilient and profitable relationships. 

Standardised, sector-wide “value-packages”, which contribute to widespread commoditisation will be, or should be, cast aside. 

COMMUNICATIONS 

The principles of multi-channel and omni-channel communications will be revisited. Over-reliance on, or a bias to one or few of those channels will be corrected. 

The strengths and weaknesses of ubiquitous social media will be identified ... if not quantified. Poor returns and low conversion ratios will be noticeable. 

Complementary and integrating tactics will strengthen the previous overriding deficient strategies. The power and evocative, emotional nature of the spoken word will, in increasing number of cases, be recognised and deployed (or perhaps redeployed). 

THE WORD IS “SUPPLY” 

Well articulated case-studies of empty shelves because of panic-buying resulting from the perceived threats of COVID-19 highlight the need for, benefits of and rewards for short, malleable, efficient and effective supply-chains. 

On reflection and in balance, it became apparent that surges in purchase demands exceeded both short-term supply and consumption. Consumers simply “hoarded”, in fear of a lack of supply, or an inadequacy of the supply-chain. 

The other sixteen elements of the integrated marketing mix will be dependent upon, and need to both contribute to and complement the key pillars. 

Deficiencies in, or the absence of, any, will ultimately result in sub-optimal performances and the inability to be competitive and compellingly attractive and different. 

It will be well to reflect on the philosophy:

                        The objective of marketing is to make selling superfluous 

NO ECONOMISTS’ RATIONALISATIONS 

Foremost among the realities on the otherside will be that there will be no currency in the attitude on the otherside. 

That is, there will be no scope for a fall-back position to “old established ways”. 

In the initial period, measures of relevance, productivity, efficiency and effectiveness will be absolute. There will be no comparative measures in the exciting new normal. This is zero-base management real-time. 

He, she, or they, who are first will be best, preferred and winners, on the otherside. 

Imagine, if you will, there will be no purpose or capacity of looking back because many will conclude:

                        The past. That’s where I’ve been, and

                        there’s nothing f**king there (... of relevance) 

Barry Urquhart

Business Strategist

(and sardonic scribe)

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

WHAT THE WORLD NEEDS NOW…

Clarity and decisiveness are what society, commerce and people want and value. In the COVID-19 infected economy uncertainty and change prevail.

The immense chasm which exists between those two sets of pillars impinges upon and stifles confidence, capital investments and expenditure.

Guesses, at present overwhelm considered projections, forecasts and budgets.

Volatility, variability and procrastination become the norm, and sadly, the expected.

The steadying hand of strong, assertive leadership, conspicuously absent in numerous nations, placates anxiety, emotions and apprehensions.

Clarity, of mind and in communications, facilitates decisiveness. Confidence mounts. Commitment to decisions, processes and outcomes are a natural and progressive consequence.

In a figurative sea of turmoil, the calming waters which appear to envelope contemplative, objective leaders enable reasoned and reasonable courses to be charted. It is a settling sense of pacification.

In the eye of the storm – which is coronavirus – belief will overcome. Clarity, decisiveness and brevity are by nature short in supply and presence.

Less, shorter statements and exaltations are appealing, and will, in all likelihood, be effective.

It’s what the world needs now…

Barry Urquhart

Managing Director

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au                                                      

STARTING AGAIN, FROM A STATIC STATE

“Lock-downs” stop most things.

Inertia prevails.

Momentum is lost. Critical mass is, well, less critical.

“Bunker-down” is a common call. It’s not necessarily a lot of fun. Social distancing does that. The greater the distance, the less the socialising.

Inveterate networkers suffer withdrawal symptoms. Ironically, income streams, for many in that subset, remain constant.

Business leaders are busy. They are re-evaluating self-worth, priorities, effectiveness and preferences. Revelations abound.

PLAN, TO BE READY

Now is not the time to sit back and wait for

the business cycle to evolve, for upturns to

emerge and for “green shoots” to grow.                   

Consultations are underway for the reorientation

of communications, remodelling of content,

realignment of contexts and the rescheduling

of specific, progressive and sequential campaigns.

 Strategic input is providing the bases for briefings

of the tacticians – advertising, publications and promotional consultations.

Opportunism is being discarded, and rightly so.

Brand damage must be avoided. Preparations for

an early and immediate start are imperative. 

“I CAN SEE CLEARLY NOW”

Across commerce, reflections proliferate. Revelations have emerged. Inefficiencies have become obvious. Bloated corporate structures suddenly appear to be self-evident. “Lock-downs” do that.

Past practices are being questioned, remodelled and as a result, potential productivity enhancements have accelerated.

The virtues of introspection.

A MODEL OF “NEW”

New realities each unique and individual, are being conceptualised. Sadly most exist in the mind of a few, not shared or clearly articulated.

Some have been reduced to plans, charts and procedural manuals.

All are untested, because in periods of “lock-downs” there are few active clients and customers.

The gaps between service providers and intended recipients, which have long existed and persisted, seem, if not larger, then certainly more pronounced.

On the other side of the fence, or perhaps the desk or counter, clients and customers are making their own reassessments. Some are subjective, intuitive and founded on “gut-feelings”. Others are, and will be the product of online and in-field research, undertaken during this period of self-isolated down-times.

New, tempting buying search routines will be ready for testing. Past loyalties and relationships will be challenged, compared and subjected to comparative-analyses.

All pieces on the “chess board of corporate life” have been moved. As a consequence, creativity and originality, in isolation, will not be enough. Relevance is imperative.

The finish line – to profits, growth and market share is known. Little appreciation is given to the new starting line. Therefore, the ability to reach achievements and fulfilments will be compromised.

Possessing in-depth knowledge of clients and consumers will provide substantial head-starts.

HANDICAP EVENT

The annual Melbourne Cup turf event is the race that stops the nation. It is a handicap event.

A “locked-down” economy has similar characteristics. On this occasion foremost among the handicaps will be superficial knowledge of primary, secondary and tertiary target audiences.

The over-reliance on price discounting, multiple sales events and expensive saturation advertising campaigns will also weigh heavily on potential for the immediate future.

Continuity of, and persistence with, past and existing campaigns are proving to be sub-optimal, if not outright inappropriate, and therefore failing.

Emphases on products, discounts and sales events will not resonate with many clients and customers.

Changed circumstances dictate the need for changed contexts, contents and rationales, if interest and purchase considerations are to be stimulated, and for transactions to be concluded.

STRUCTURE, DISCIPLINE

To gain and to sustain competitive advantage, it is important to avoid the temptation to discuss issues with peers, competitors, substitutes and disruptors.

“Group Think” commoditises most things. – Bland  beige colours the business landscape.

Differentiation is now more possible than in recent times.

From the advantage-point of being a facilitator to a member of business development audits, reviews and refinements, I believe enthusiasm is justified for those who formulate, document and implement a “Starting Again” set of strategies.

The component parts are: 

·         Reflection

Conduct a detailed strategic audit of the “fit” of the entity, its products, services and apps in the new marketplace. 

·         Introspection

Undertake a detailed, moderated analysis of past and persisting structures, practices and policies. Surgically cauterise excesses. 

·         Projection

Self-determine preferred channels, opportunities and marketplace gaps. Fill them rapidly and comprehensively. Invest wisely and confidently. Remember to follow-up and follow-through. 

·         Effect-ion

Remember, one is rewarded with what they do, and deliver.

Talking about things soon dissolves into inaction. 

·         Inspection

Install monitoring, support and refinement infrastructure to achieve and to sustain momentum and critical mass. 

BACK TO WORK

“See you on the other side” is a phrase that shakes the faith of some.

Therefore, remain humble. Do not assume the mantle of “Homo Duess” – human god.

When the Australian Prime Minister and Chief Medical Officer make repeated references to when we get to the other side of the COVID-19 pandemic, it is reasonable to accept that the nation, its people and commerce sectors will survive, persist and subsequently grow.

Preparation in terms of time, resources and funds will be, in time, rewarded.

Time and timeliness are key measures for starting again, particularly at the conclusion of economic peaks and troughs.

Barry Urquhart

Business Workshop Facilitator

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

ISOLATE, SOCIALISE SELECTIVELY

Don’t be unsociable.

Commerce, like society and families, is dependent on social interactivity. It is indeed the lubricant that ensures the wheels of business keep turning.

Now is not the time to figuratively and literally “self-isolate”. Interacting with oneself can be very lonely, unfulfilling and not at all profitable.

Removing oneself from “social settings” reduces, but does not eliminate risk. Only sealable, unimpeachable “bubbles” will do that.

The reality and challenges confronting us all are how best to maintain, review, refine and recalibrate social interactivities.

Many past and present practices will be rightly identified as being ineffective, inefficient and, in some instances, dysfunctional.

The use and frequency of social media in all its forms (blogs, texts, emails, videos and TEDx etc) will doubtlessly be reined in. So too should the deployment of communications in mass media (print, television, radio and out-of-home).

Personal visits and “calls” should also be scrutinised. On balance, many of those are more “social” than they are commercial.

STRIKE A BALANCE

In the prevailing “over-communicated” marketplace, much of the communications are screened, blocked and filtered by technical means, and by the psychological process of selective perception.

Self-evaluation of the relevance, benefit, advantages and rewards inherent in intended missives will raise questions about the need for, and value of messages.

 Increasingly, “less” will genuinely be “more”

Power words, many of which are evocative, emotional and graphic, will be invaluable when utilised discerningly.

Eliciting responses will be rightly rated highly and prioritised, in favour of simply attracting and resonating with targeted individual group-members and audiences.

Responses signify commencement of the social interactivity process.

A COMMON VIRUS

Much of the well-intentioned communications which have been generated, transmitted and distributed as a consequence of the COVID-19 (coronavirus) pandemic centred on the communicator rather than the recipient. So unsociable!

Greater understanding and empathy would have re-oriented the content to the interests, perspectives, aspirations and needs of those receiving the unsolicited missives.

Too much is as equally annoying, frustrating and ineffective as too little.

WHAT DOES IT ALL MEAN?

Understandably, many people are confused. The contentions, propositions and conclusions that are being so readily shared are often conflicting, qualifying and contradictory.

Little wonder, many are left to contemplate, who do I believe?

Moreover, the rapid rate of changing circumstances quickly makes key messages obsolete. Single spheres-of-influence are often countering their previous advice.

Inertia is widespread, and enjoys understanding and sympathy among the masses.

TOO MANY SOURCES

There is widespread evidence of creeping COVID-19 (coronavirus) news fatigue. The available information seems to be incomplete and often contradictory. Its seeming exponential growth-rate exceeds that of the virus itself.

The mass and social media are feeding the frenzy and, arguably, exacerbating the circumstances.

A nominal plaintive call for a little self-isolation from the multiple channels of unedited, unfiltered and non-verified raw information is evident among an increasing number of exacerbated individuals and group-members.

PLAY YOUR PART

Among the truly great actors, scriptwriters, producers and directors, there is a consensus. That is, brevity of words projects a compelling message. In the current marketplace when addressing the COVID-19 (coronavirus) pandemic, such a philosophy and set of practices may not win awards, but they will enhance trust, respect, integrity and value.

Captain Albert Jacka, was the first Australian recipient of the Victoria Cross. His actions on the beaches and battlefields of Gallipoli, Turkey, in 1915 were astounding.

Those standards were maintained on the Western front in Europe, where he was awarded the Military Cross and Bar. These were the hallmarks of a true leader, whose men followed unquestionably.

Bert Jack was a man of few words. When he spoke, people listened, responded and followed.

That message and those lessons retain currency in the current society. Be measured, modulated and purposeful. Above all, be social.

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

TRUST YOURSELF – PLAN FOR IT

Three categories exist for business strategic plans:

·         Desk top

·         Top drawer

·         Bottom drawer

In the third instance, references to the document are sparse and typically arise at times of crisis. Ironically, use is therefore random and not at all planned. Top drawer strategic plans suffer from being out-of-sight. Therefore, they are often out-of-mind.

Desk top plans have a conspicuous presence. “Dog Eared” pages suggest repeated and regular referral, use and refinement.

Overall these distinct categories reflect more on the business owner and user rather than on the veracity of the content.

In recent times, Australians have been exposed to countless life lessons, numbered among which is the importance of planning.

There is little or no immunity to Covid-19 (coronavirus), catastrophic bushfires and widespread extended drought.

PLAN – POSITIVES

In times like those, others may blame, doubt or dismiss you. Self-belief, discipline and focus can, and typically do, overcome adversity, particularly when supported by a structured, integrated and documented plan.

Contingency initiatives are usually implied rather than detailed among the shorter-term tactics.

In the three categories detailed above, the urgency in addressing and redressing the key causes may well have elapsed for the time being. They will remain primary unresolved imperatives.

WORKING PLANS

Recovery is another matter. It is an immediate priority, with longer-term realities and consequences. Sustainability is one important measure.

The rush to cut costs, seek government assistance and implore widespread emotional and transactional support from the broader public is understandable. Each is reactionary and short-term, and will be largely ineffective.

Extensive rainfall will, and has, extinguished bushfires, stimulate pastures and regrowth. Vaccines will remediate the health considerations of the coronavirus. Very rapidly the 24-hour news cycle will have the media move on, change focus and report on new headlines.

It is typical in such circumstances that management teams are inclined to decide to “put aside the strategic plan” and “to start doing things”. Poor choice! That is the very time that the strategic plans should be produced, analysed and be subjected to a forensic audit. Within its pages are the anchor points for culture, strategies, tactics and datum points for crisis management initiatives.

Therefore, detailed reviews, revision and refinements of strategic plans are required. Each of the strata will require analysis and, most probably, extension. Maintaining alignment between each will be important.

Too often, in times of “crisis”, short-term tactics are introduced, with little consideration of intermediate (objectives – 3-5 years), long-term (goals – 3-5 years and strategic- cultural (mission statements – 10-20 years) aspects.

Natural outcomes are road-blocks, a loss of competitive edge, compromised branding and reliance on price discounting.

LOSS OF MOMENTUM

Many of the effects of cash-flow interruptions and downturns are conspicuous and immediate. Impacts on momentum and critical mass are less apparent in the shorter term, but profound over broader horizons.

Re-establishing and rekindling momentum require capital, resources and time. Expeditious turnarounds are typically pipe dreams, evidenced by spates, and accelerating rates of business closures and failures.

Under-resourced entities, geared to a reliance on consistent and growing positive cash-flows, are soon found to be exposed and wanting. Margins of error evaporate, lead-times are truncated.

Vacant premises and FOR LEASE signs are proof-positive of the cycle, and indicative of a lack of planning.

INTEGRATION, DEPENDENCY

The attainment and fulfilment of short-term targets should, indeed must, lead to contributions to the intermediate-term objectives.

Otherwise they raise questions on the purpose, the objectives, goals, mission and philosophy of the entity.

Objectives are fundamental benchmarks for marketing. They define absolute and relative market positioning, competitive standing and presence in the marketplace.

They contribute to and quantify the relevance of the entity, its brand name, products, services, supply chain and people.

In times of crisis, when the emphasis is on survival and cash-flow, these dimensions are assigned little consideration and emphasis.

And so it is, as others are losing their heads, those who have taken the time and allocated the resources to formulate, document and implement genuine integrated and structured strategic plans, typically enjoy the fruits of their labours and endeavours.

The philosophies and mission usually are retained and respected. Complementary contingency plans are outlined and energised.

The foundations of self-belief, discipline and focus lie with the documented plans.

Inevitably, recovery is quicker, more successful and consistent with the overriding values of the entity.

Strategic plans. Hardly light reading. But important desktop references.

Barry Urquhart

Strategic Planning Facilitator

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

GOOD BUSINESS IS SIMPLE… BUT NEVER EASY

Lost opportunities.

Too often, in-store and on-line, after all the hard work in attracting, qualifying and developing prospective transactions, sales are being lost.

Processes, policies, information demands and countless, seemingly, meaningless barriers, filters and impediments – individually and collectively – are sufficient for intending clients and customers to depart, or for them to leave abandoned on-line, partially filled shopping trolleys.

Typically, competitive pricing, quality and value have peripheral roles in these frustrating, and costly, experiences.

This is opportunity-cost personified. The loser, the intending seller, is often the perpetrator.

GOLDEN RULE

In the prevailing, testing marketplace, the hard work is in stimulating interest, and generating consumer/client traffic in-store, on-line and via the phone.

Having captured both the presence and attention of those who are the source of revenue, it is important that the buying experience and journey are seamless, simplified, truncated and enjoyable. 

Demands for additional information, assurances, guarantees and costs (foremost of which are freight expenses and credit card penalties) are sufficient to temper interest and demand.

Low and unacceptable sales conversion ratios cannot, and should not be rationalised, or tolerated by dismissing some consumers as “window-shoppers”, “carpet-crushers” and “tyre-kickers”.

Corporate and network-wide pledges to customer centricity count for little when compromised by bureaucratic baggage. Clear out the clutter.

ADD-ON VALUE

Throughout the current price-sensitive economy, little sustainable competitive advantage is likely by an additional 5% or 10% discount in prices.

Customers and clients consistently assign premium value to their own time and convenience.

Therefore, the Marketing Focus mantra does have universal relevance and application:

                         Expedite, to Excite

In many instances, the innovations, changes and operational disruptions incur little or no direct or indirect costs.

Moreover, once known, experienced and appreciated by customers and clients, the positive expectations are such that the business opportunity funnel is opened up to encourage and welcome more prospects.

In short, productivity (often measured in terms of velocity and volume) typically contributes to enhanced efficiency and effectiveness.

It is a two-sided coin, enjoyed by those who are buying, and by those who are selling and servicing. Now that is value.

BIASED TO ACTION

Embracing the philosophy concept of customer obsession implies that there are no compromises or qualifications in pursuit of exciting and delighting customers.

What is most lacking in the pursuit of attaining this idealised state is urgency, immediacy and action.

Obsessions are, or usually need to be fulfilled NOW.

Therefore, internal reviews of policies and practices should necessarily focus on WHY? and HOW? WHEN is not an issue.

Moreover, orientations to WHY NOT? and NOT POSSIBLE? are misplaced and self-defeating.

To some, a bias to action will involve risk. Rightly so. Managing risk and risk tolerance are the arts of leadership. The alternatives include closing down, or disposing of the business, products, services and team.

LEAKY FUNNEL

Business opportunity funnels have become increasingly leaky during the past 5 years. The trend and rate will increase, in some instances exponentially, unless and until such time as a tight focus is developed and implemented to become increasingly biased to action. That is, to simplify all practices, increase interaction with and engagement among existing, prospective and past customers.

For some, that will involve re-invention. In a rapidly changing marketplace, self-induced obsolescence has many virtues. It is usually better to make yourself obsolete, than to allow competitors and substitutes to do so.

OVERCOME RESISTANCE

Resistance, and push-back to strategic and structural change is expansive, particularly among those who are comfortable with the status quo.

Like just the 1960s British rock band of the same name, the ranks of status quo are thinning. That which is left is aging, rapidly.

Therefore, self-belief and inner-drive are to be recognised, applauded, supported and celebrated.

In law, the onus of proof lies with the prosecutors. However, throughout commerce, the prosecutors of disruption, innovation and change can rightly expect and demand of the nay-sayers to provide the proof and substance resistance to simplicity. Moreover, they have the backs of customers and clients.

There. Simple. But, never easy. And, it’s on-going.

Barry Urquhart

Marketing Strategist

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

HIGHER DEALS ARE REWARDING

“Hi, service”

 Interesting salutation. An introduction to good, positive service is a new experience to many consumers in the current price-discounting driven marketplace, in which a race to the bottom is common.

 High service is an even more exhilarating encounter.

 Recognition by consumers of an abundance of enthusiastic, qualified, trained, informed and accessible front-line service providers registers immediately, and establishes heightened expectations. A key point of differentiation is also registered.

 Increasing numbers of business leaders are now able to quantify, and thus justify, the financial benefits of investments in additional people. Wages bill increments of as little as 2% above industry, sector, network and company averages and standards are consistently resulting in leveraged enhancements in sales volumes, and in repeat customer visitations.

 Doubters remain, but they are being marginalised and sidelined.

 BUSINESS LEAKAGES

 The adherents and promoters of high service readily acknowledge leakages to lower-price and on-line competitors. Sharing consumer wallets is a reality. So too is the need for competitive house brand products and ranges. It’s simply a matter of determining, managing and maintaining a balance.

 Specific and overall margins do not need to be compromised. Economic viability is sustained by disciplined leadership and a sound business model.

 Projecting and enunciating the values and virtues of brand names remain an essential component of marketing attractive value packages.

 HEALTHY RETURNS

 Retail pharmacies are a case in point. The philosophies and practices of “forward pharmacy” and personalised “therapeutic counselling” are maintained and supported in high service outlets.

 Where available, compounding chemist services emphasise the respect extended to on-site individualised medical care. It is a further distinguishing offering, which extinguishes the fires of price competitiveness.

 Introduction of private consulting and counselling rooms has been warmly received by the broader public.

 A suite of complementary health services can be, and often is, selectively available.

 Noticeably, a key feature of nominated providers is the human contact between the customers and the front-line service providers.

 In these strategic initiatives, there are no shortcuts. The recruitment, introduction, training, development, and the delegated authority accorded to the appropriate people are important. So too are their age, qualifications, experience and remuneration: No short-cuts here, either.

 Not surprisingly, collectively, little things mean and result in a lot.

 TASTE OF SUCCESS

 In many respects, modern society is designed by its coffee culture. Outlets and baristas are ubiquitous.

 Service stations and convenience stores are making concerted efforts to intrude and benefit from the product/service mix.

 The need to self-serve is typically countered by significantly lower prices, often as little as 25% off the neighbouring full-service coffee lounge.

 Customer counts usually favour the latter alternative. It is difficult to articulate and monetise the appeal and value of interactions and the customised coffee provided by “my barista”.

 There are some things money, and savings, can’t buy.

 THE SUBJECT IS NOT SUBJECTIVE

 The current business landscape is populated by countless coaches, mentors, evangelists and counsellors, and, yes, speakers.

 In a nation of 25 million Australians, all are speakers, to a greater or lesser extent. Very few are paid, or worthy of payment to speak. Indeed, many are happy to speak for no fee, to simply have an audience.

In a disturbingly high percentage of cases, the fee paid is an accurate reflection of the value provided.

 Often, the subject is the speaker, and his or her pursuits, or past achievements. Being among the tens of thousands human beings who have scaled Mt Everest, or being the last man standing in an ice skating race, or having won the Brownlow Medal in AFL football (or equivalent) some 25 years ago, may be interesting, but seldom relevant and beneficial to those in business who will never pursue such endeavours.

 Gratifyingly, there is a notable trend to seeking out, briefing and utilising the few conference keynote speakers who undertake extensive background research, formulate targeted presentations and customise the content and focus to ensure those in the audience enjoy considerable advantage, benefit and reward.

 The value of the high-service addresses and the facilitation of interactive workshops evolve well beyond the day and the event. Both high-service formats are labour-and time-intensive.

 BEWARE TEMPTATIONS

 In highly competitive marketplaces, confronted by literally gale-force economic headwinds, it is tempting to join the pack and drop prices, retrench service providers and reduce expenses.

 Longer term advantages favour the implementers of high-service standards. The evidence, while not overwhelming (primarily because of the lack of high service adherents) favours the brave.

 On-going refinements to philosophies, policies, practices, strategies and tactics are often non-negotiable. Change is omnipotent.

 Striving for, attaining and maintaining improved productivity provides its own positive outcomes. Those can be achieved, packaged and promoted within a high service business model, regardless of the marketplace, products, services, applications.

 A sobering realisation is that competitiveness, market share, sales, margins, profits and customer loyalty are optimised. That is, maximisation as a key performance indicator is a questionable matrix, which may not be ideal, but is preferred.

 High service is a service to providers and to consumers, and is valued accordingly.

 Barry Urquhart

Conference Keynote Speaker

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

GO FIGURE… OR IS THAT, GO REFIGURE?

Decomposition.

The breaking up of markets, consumer groups, communications and value-propositions is a complex, often tortured process.

However, the rewards, upsides and insights gained can be substantial.

New perspectives and understandings can be gained, enabling enhanced efficiency, effectiveness and productivity in all things marketing.

HIGHER, AND HIRE

Fashion brand, Country Road, whose genesis was in Melbourne some three decades ago, has recognised, and is now responding to changes in consumption patterns.

It has entered a strategic alliance partnership with a finance-based hiring company to offer certain ranges for short-term hire to consumers who are seeking changing wardrobes and fashion-statements.

Few would have thought that the word “change” could so readily infiltrate the use, and outlays, for personal presentation “packaging”.

Statements like “my favourite… (garb)” will doubtless be cast aside by certain market segments and select consumer audiences.

It is an exciting prospect, and will reconfigure the measures of value, and space usage. In isolation, price tags will become marginal reference points.

Concepts of ownership will need to be recalibrated.

Personal budgets too, will need to be reviewed, refined and re-assessed.

PUT ON THE LEASH

Dog owners are often compelled by local government regulations to restrain their pets by having them on a leash, when going for a walk.

Many business lessees feel the same constraints are applied to their operations by the provisions, and costs of property leases. There has been a noticeable increase in the use of shared and casual occupancy throughout the commerce fraternity during the past decade.

It has developed a whole new sector in property management, with public listings of entities being planned and implemented. Initial responses from investors have been encouraging – but qualified.

The example of the We Work in the United States of America highlights that the concept may not work for all.

However, the property leasing and occupancy landscape is changing rapidly and retail networks need to be re-assessed.

BALANCE SHEET RE-WEIGHTINGS

The balance sheets of many contracting entities, particularly those seeking to service the volatile mining industry are weighed down with large inventories. Much of that capital is under-utilised, inert and subject to widely fluctuating need and demand.

That is an expensive burden to bear, particularly in periods of economic down-turns, which can extend for years.

Removing the costs (and value) of rolling-stock from the financial records can, and does, enhance key performance ratios and returns. These are typically reflected, positively, on share market prices.

Original equipment manufacturers are rapidly recognising the value and advantages of complementing the recognised and trust brand names, with financial instruments which impact on the balance sheet, and the bottom line. They have found the offers are particularly appealing to financially constrained start up, and green-fields operators.

Gearing up with motor vehicles, torque, can influence greatly acceleration and overall performance.

And it’s not all talk when new vehicle manufacturers are tapping into new sales opportunities in a largely contracting marketplace.

Overall, during 2019, new vehicle sales in Australia have fallen around 7%. Consumers, and to a certain extent, corporations, are retaining ownership of their vehicles for longer periods.

Reportedly, more than 70% of new vehicle dealerships are unprofitable in trading.

Cash-flows and margins are best from service, maintenance, insurance and finance revenues.

Not surprisingly, more and more vehicle manufactures are marketing extended, capped-price servicing of new vehicles (up to 7 years), which are purchased as a means to stimulate interest, visits, sales and relationships.

Ongoing personal contact and interactions with customers are significantly extending the duration and worth of customer-dealership relationships. Those reconfigurations are having impacts on corporate cultures, policies and practices, to the benefit of all.

ACCOUNTING FOR SOMETHING

The broader public accounting fraternity is under challenge. Increasing numbers of clients are expressing concerns about fee totals.

Overall, the services being provided and charged for are recognised to be costs.

Value, advantages and benefits are difficult for some clients to identify and monetise.

Discounting and negotiating lower fees are therefore often foremost on the agendas of accountant-client meetings. The outcomes are unpalatable for the professional accountancy principals.

A noticeable change is the introduction and integration of lower-cost and lower service-standard bookkeeping offerings. It satisfies the expectations, wants and needs of some.

Refining and repackaging value-propositions is an alternative.

Segmenting and differentiating professional services, including auditing is another.

Deleting provisions like business planning, human resource consulting and financial planning have also been identified by some to be attractive and advantageous for both clients and accountancy practices. Establishing, or retaining, arms-length relationships can, and do, have strategic upsides.

It simply involves the discipline of reviewing, assessing, determining and implementing reconfigured suites of services.

BREAK IT, BREAK IT UP

Established, often proven, business practices are not, and should not be beyond review.

Breaking up policies, reconfiguring value-packages and decomposing databases can often reveal new opportunities and possibilities.

Invaluable insights and overviews are gained as a consequence of posing the question, WHY? 

Initial individual responses tend to be catalysts for further innovation and creativity. Energetic and enthusiastic buy-ins are inevitable, often self-generating consequences.

It just takes the drive to adopt a different view. So, don’t exclaim: Go figure

Instead, Go Reconfigure.

Barry Urquhart

Facilitator of Business Development Workshops

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

AUSTRALIAN CONSUMERS UPSTAGED BY ADVERTISING ALGORITHMS

It had to happen. Customer-first has been usurped by the prevailing marketing and advertising mantra: algorithm-first.

The rapid and ongoing migration to on-line, social and digital media is being driven by increasing amounts, and percentages of marketing and advertising budgets being expended on inducing recognition, endorsement, likes and benefits accorded by platform algorithms.

The algorithms have become the effective gate-keepers for access to prospective clients.

Investments in search engine optimisation and advertising on specific platforms involve the need to please, and be in accord with the parameters, word-usage and use-frequency dictated by the inanimate, all-powerful algorithms.

In essence, platform rankings are the consequence of a “auction-process”, in which the owner and operator of that platform is financially rewarded and advantaged.

It’s a lot like property listings. They are one measure. Another is property sales. Only the latter pays the bills.

Further financial contributions and utilisation of specific platforms can effect higher, but not exclusive rankings.

 Exclusivity, monopolisation and solus exposure are today, in the on-line and digital era, redundant and obsolete concepts, goals, aims and realities.

 In short, participants of on-line channels have lost control over their marketing, advertising, communications, promotions, merchandising and sales. In large measure, these are determined at the discretion of the host platform.

 SHARE VALUE

 At best, companies, brand names, products and services get to share presence on platforms. Rankings are variable and seemingly forever changing.

 Select direct advertisers enjoy preferred, but shared locations. Those able to leverage a presence through effective, integrated, on-going and often resource-intensive and possibly expensive search engine optimisation processes can have the benefit of being on the landing page, in company with competitors and substitutes.

 Brand recognition, differentiation and preference are difficult to achieve in such circumstances.

 Price can be, and often is, the sole point of difference.

 MARKETING LORE: When all other things are equal, price is the only differentiator. 

The hurdles for new-entry offerings, or for an established brand seeking to enter new marketplaces are formidable.

 Establishing aided recognition, unaided recall, interest, preference and loyalty is best, and most readily achieved, when the company that owns the rights of the brand name, product, service and application has, and can exercise, control. That is, has been, and in the foreseeable future, will be achievable in the mass media channels of television, radio, print and outdoor.

 COMPLEMENTARY MULTIPLE CHANNELS

 Having an active and effective presence on-line, and in the digital channels is important, if not imperative.

 However, ideally and optimally, it should be phased, with mass media being initially utilised to project the core and essential values of the brand name and corporate culture.

 There are no binary choices. One channel should, enhance the others.

 The fixation on, and domination of, on-line platforms are compromising mass media and impinging on the value and effectiveness of brand names.

 Assessment of allocation between available media is subjective, determined by individualised circumstances and influenced by the intuition, experience and expertise of the professional marketing communications and business leaders.

 Justifications for sustaining or increasing investments in on-line and digital channels based on the premise that the impact and resources are quantifiable have been found to be wanting. Impressive quantums of “hits” are often matched with disturbing, and disappointing high numbers of “misses” and “missing”.

 Among the leakages is the degree of presence, impact, recognition and recall of brand names. A significant percentage, often a majority, of consumers exhibit and declare loyalty to websites and platforms.

 DIRECT RESPONSE

 Many digital media practitioners and advocates applaud the direct response nature of on-line channels.

 A major qualifying consideration in those contentions is the lack of free, open and self-controlling direct access to targeted primary, secondary and tertiary target audiences by the participating marketing entities.

 It seems the leveraging point and fulcrum, are controlled by the platform owners, who charge handsomely for access, with little or no accountability when measured on the bottom line.

 SALES CONVERSION

 A key metric in performance measures is the sales conversion ratio. That is, converting suspects, prospects, contacts and “hits” into sales, revenues and profit.

 Consistency and continuity, two attributes that are difficult to sustain on numerous platforms, will deepen and lengthen relationships between suppliers and customers, when follow-up and follow-through procedures are implemented. 

 Repeat, loyal and referral businesses are optimised when they actually exercise control over their communication channels in manners that respect direct access and response.

 On-line and digital media are effective for opening the doors of opportunity. One should never forget that an increasing number of on-line channels are now recognising how important a brick ‘n’ mortar presence is in closing the sale.

 Direct, personal interactions between consumers and clients, and front-line providers are still fundamental in delivering the philosophy:  

Customer-First 

CONCLUDING COMMENTS

 Upon reflection, and on balance, the power relationship between entities and on-line platforms is not balanced.

 A huge measure of control is being exercised by the channels. In varying degrees, companies, brand names, products and services have ceded control, discounting their innate value.

 Alternative strategies are available, and needed.

 Barry Urquhart

Managing Director

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au

SERVICE SHORTCOMINGS

Managers are coming up short on service.

A recent series of studies by Marketing Focus has revealed that more than four in five (82%) of business owners and managers contend that their operations consistently meet or exceed customer expectations.

That figure is in stark contrast to the 44% of customers and clients who feel that their service expectations are met. A further 7% expressed the belief that their expectations were consistently exceeded.

Therefore, a daunting 49% of clients regularly experience unfulfilled needs, wants and expectations. Moreover, they are among the cohort of consumers, individuals and corporates who have screened and deleted those service providers as unworthy of providing the goods, services and applications that are sought.

Clearly, inflated measures of self-belief among senior ranking business team members are not contributing to, and sustaining relationships, repeat business and loyalty. Indeed, the discrepancies between customer expectations and the standards of service being delivered are contributing to the substantial measures and instances of “customer-leakage”. That is, lost opportunities for revenue, profits, competitive advantage and revenue growth.

COMPOUNDING FACTORS

Exacerbating the circumstances and the very real costs of this service deficiency is the fact that front-line service providers are not aligned with business owners and managers in their assessments of meeting customer expectations.

Some 69% of those frontline service providers contend that customers’ expectations are consistently being met or exceeded.

The variance in the perceptions held by senior team members and front-line people is a consequence of two key contributing factors:

POINT-OF-PURCHASE TECHNOLOGY

Front-line service providers are sensitive to the increasing use of on-line channels by consumers – before entering premises, and while advancing the purchase process in-store.

In the latter scenario, service providers contend that they are disadvantaged by consumers having real-time access to key and determining purchase information and intelligence.

A significant majority of this sub-group strongly advocate the issuing and use of real-time applications to better service, to respond to and match tech-savvy consumers, customers and clients.

AUTHORITY

Those directly interacting with customers believe that they do not have sufficient authority, and therefore discretion, to make decisions that will address and fulfil needs, wants and demands.

Delegated power has the capacity and track-record of enhancing morale, motivation and employment tenure of those committed to a service culture.

But there is little evidence of this capacity being employed to the intermediate to long-term advantage of the company.

Trust in the integrity of team members is consistently well rewarded.

ON BALANCE – A DEFICIENCY

An objective assessment of the widely prevailing circumstances highlights the need for better engagement with and understanding of existing, prospective and past customers, greater delegation of authority to front-line, service providers, the provision of, and access to in-store real-time technology, development of a comprehensive, extensive and consistent service culture and the implementation and support of “stretch-goals” customer service training.

In short, a significant percentage, if not a majority of entities, big, medium, and small, in private and the public sectors will benefit substantially, and profitably, from embracing entity-wide service excellence cultural initiatives.

A measure of the urgency for review and action is the disparity between the perceptions and beliefs of consumers, senior management and front-line service providers.

The enormous gaps between the respective stakeholders are voids into which customers, revenues, profits and competitive advantage are falling. Sadly, the causes are not readily recognised, particularly by senior management and business owners.

WHO’S RIGHT?

Customers aren’t always right. But they are always the customer. They are the source of purchase decisions, revenues, and word-of-mouth recommendations and referrals.

Being in-step and in-sync with those whom you wish to serve is fundamental.

Perhaps entities and their service providers – read: every team member – need to focus less on processes and resources, and more on outcomes. When they can be collated and quantified into consumer advantages, benefits and rewards, a broader understanding will evolve. Service will be recognised and respected as a way of thinking, rather than a way of doing.

MANAGEMENT FOOTNOTE:

For business owners and senior managers, a reorientation from “I think we meet or exceed customer expectations” to “I know first-hand what our customers expect, experience, value and how we rate” will be a big step forward – a stretch goal, if you will – to achieving and sustaining service excellence.

An initial step would be embracing the concept and principles of “MBWA – Management by Walking About”. This is a wonderful way to become closer to customers – physically and emotionally.

Barry Urquhart

Service Excellence Keynote Speaker, Facilitator and Author

Marketing Focus

M:        041 983 5555

E:        Urquhart@marketingfocus.net.au

W:       www.marketingfocus.net.au