1- 330-413-8552 Mark@NoSmokeAndMirrors.com

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2009 Health Care Reform Initiative Lessons #10, #11,#12; Make Sure Your Marketing Has All the “Rights” Covered…right time, right customer, right offer

A basic marketing tenant says make sure you have all the “rights” covered in your New Product launch, New Service Launch. I discussed solving the right problem in my last post and that leaves the following “rights”; Right Time, Right Customer(s), and Right Offer(s).

Failure to nail all the rights puts your new product and or service launch results in jeopardy of missing ROI targets. Let’s take a quick look at these “rights”.

Right Time

One of the difficulties the Obama administration faced when launching the 2009 Health Care reform initiative was bad timing.

Like companies who have launched products in their markets before they were ready, or failed to meet the expectation set by marketing and sales, the Obama administration could not have launched at a worst time. They followed a failed stimulus from the Bush administration, a failed stimulus from the Obama administration, and they tried to begin their launch in the worst economic conditions the United States has seen arguably since the Great Depression.

When you launch products that are not complete solutions, or are not solving a specific problem, your market at first becomes suspicious, and if you repeat the insanity (doing the same thing over and over again expecting different results) you eventually break the trust in your Brand. When trust is broken you turn loyal customers into shoppers again.

Market leaders understand the importance the right timing plays in hitting their new product launch goals and the ROI’s promised the board and or shareholders.

Market Losers are so in love with their new product they fail to listen, they fail to send out market soundings and often their launches crash into the rocks of bad timing

.

Right Customer

In the Book Tuned In the authors discuss how to determine if the problem you are trying to solve should even be considered for development. They discuss the need to determine if the problem is urgent, pervasive (a bunch of folks have it) and most important, is your market willing to pay to solve it?

As we look at the “market “of US consumers we have distinguishable groups that can be segmented: Gen Y’s, Gen X’s, Baby Boomers, and Retired Consumers, consumers without health insurance,…just to name a few.

When you launch a new solution the burden is on you and your organization to clearly understand the problems of each market segment and solve them.

Once you solve problems the burden is also on you to clearly articulate the problem(s) you solved in the voice of the market.

Market Leaders understand the importance of segmenting their markets and speaking to each segment in a voice that they understand.

Market Losers launch with one size fits all solutions that require a salesperson to interpret, and fail to be understood and therefore Miss ROI targets.

 

 

Right Offer

When you thoroughly solve problem(s) for specific segmented groups in your market, you create offers that are made to stick. The offer is clear and does not require a rocket scientist or an attorney to understand. These perfect solutions instantly connect and become viral in all your targeted market communities. Social media picks up your solution and cannot wait to share how you solved the problem.

Market Leaders understand and value the impact social media can play in a successful Product launch.

Market Losers use Ready-Fire- Aim new product launches that, not surprisingly end in disaster.

Market Losers do not understand the power of Social Media and how it can be a valuable ally or an incredible foe that literally can cause you to go out of business.

How about your business….

Do you have all the “rights” covered in your next new product and or serve launch?

Are you living a launch disaster now?…tell us about it…

Have you successfully launched a product without having all the “rights” covered? If so, tell us about it.

Do you have clearly defined solutions or are you practicing “Agile Product Launches” …how’s that working for your shareholder value?

Are there other “rights” we need to consider?…Right Channel?….

Technorati Tags: Right customer,right offer,right time,Obama Health care,health care reform lessons,marketing,New product launch,market loser,market leader

2009 Health Care Reform Initiative Lesson #6: Without a Road Map Your “Administration” Will Attempt Too Much, Too Fast and Not Achieve Any of Your Goals

It is an all too common problem;leaders trying to execute to many  things and not doing any of them effectively and thus missing their goals. Our current 2009 Health Care Reform is providing another lesson for business leaders throughout the world;

“Buy a Map!”

It was the late 1990’s and my independent sales representative Randy and I were working downtown Philadelphia looking for a new video game distributor. As we drove in what felt like circles we were obviously lost and frustrated. We must have passed the same hot pretzel street vendor three times, so I asked Randy to pull over in the next gas station so I can ask directions. As we pulled into parking lot and parked, I got out to ask directions, (Randy quickly locked the doors.) I thought …after all I am in the “city of brotherly love”…surely someone will be happy to give me directions… As I walked up to the bullet proof window the clerk said: “What?” I explained I was looking for the following address and I will never forget what he said…

“Buy a Map!”

 …little did I know then how profound that advice was when you feel lost.

A Road Map helps your organization (administration) understand where you are, where you want to be, and maps the 2-3 key initiatives  (from an overview standpoint) you plan to execute. In addition to identifying 2-3 key initiatives versus 23 or more, it also shows where you do not plan to go. Will your road map change? Sure, you may encounter a roadblock in your marketplace and you will adjust your trip plan, however you will recalculate the course to get to your desired destination.

A Mistake businesses leaders make is trying to do too much, too fast, and not execute any of your initiatives and miss your goals. When this occurs, your market loses trust in you, and you lose their votes. ( orders)

The current administration in the white house came in after a poorly executed stimulus plan. The market was already Leary of Washington’s ability to execute.

The past launch failure caused a lack of credibility and trust in the market.

Very quickly they announced the following plans;

“American Recovery and Reinvestment Plan.”

Close Guantánamo

Education Stimulus

Auto industry bail out

Tax Cuts

Increase Efforts in Afghanistan

Stop the Iraq war.

North Korea

New Energy

Plan for Immigration

Normalize relations with Cuba.

Auto higher mileage standards

Estate-Tax Plan

Confront Iran

Gun control

Climate plan

Plans for Israel

Is it any wonder the current administration will miss its budget projection by $2 TRILLION DOLLARS?

“Buy a Map!”

Again, this was not meant to me a political commentary but an example for us all to learn from. When you list all the initiatives your team is working on I think it would surprise most business leaders.

An exercise I often do with new clients is I meet with all middle and senior leaders and ask what they are working on. Very quickly I determine if I am helping a team that has a road map and is aligned.

When I polled CEO’s not long ago asking what concerns them the most;

Finding out six months into a launching a strategic plan that my team members are not executing to the plan.

The leading cause of teams taking on too much and team members acting on their own initiatives not in alignment with the overall corporate strategy is the lack of a road map. So…

“Buy a Map!”

Once you develop your map you must prioritize the initiatives that made the cut. You must assess what your team has the capability, financial resources and skill sets to execute. You will identify 2-3 key initiatives…not 23…54…or 76 .

Market leaders assess their capabilities and create a road map for their organization and share it with all team members.

Market losers lack self control and alignment that results in many initiatives and they fail to execute any of their objectives.

Market losers resort to name calling and blame-storming.

Less is more with a Market leading Road Map.

How about your …administration?

Have you added initiatives to your plan to hit your numbers or identified 2-3 you plan to do well?

Do you have a way to filter new opportunities?

What causes your team to be distracted from the road map?

Do you know your companies road map?

Do you and your leadership team need to …”Buy a Map!”?

Technorati Tags: road map,road mapping,marketing stroy,strategy,marketing,market leader,blame storm,name calling,health care reform lesson

2009 Health Care Reform Initiative Lesson #3: Without a Clear Understanding of the Problems to be Solved, and Requirements, Development will Build Solutions Because They Can and Not Because They Should!

Where a number of entrepreneurs make a costly mistake is in jumping into a new product launch and making a product launch checklist  without spending an adequate amount of time gaining an intimate market knowledge and building strategy. When this occurs, developers and engineers (Representatives) build things because they can not because they should.

How do we end up with a 1,000 page bill? ( few have read, and fewer understand?) Or an ipod station and toilet paper holder? Or a laptop that smells?…. ( by design)

Without a clear understanding of the problem you want to solve, and clear requirements and not understanding who you are solving them for, you will build stuff.

Developers are creative problem solvers. They want to be given problems and requirements. They go nuts if you also tell them how to solve it. Just as salespeople hate it when accounting tries to tell them how to sell more.

The inherent problem though lays in the fact developers also see problems that are real to them, that may not be market problems. So they have their “wish list” of solutions they want to introduce.

If you lack a clear definition of the problems you want to solve and the requirements needed and just “throw a challenge over the wall” two things will happen;

1. Development will create a perceived list of problems and prioritize them themselves.

2. Without a clear direction, they will build what they always wanted to build and not necessarily what the market needs or wants.

What happens next is even more dangerous. So you have shared your “big hairy audacious goal” with your market: “A Health Care reform bill before the August break”.

Not having a connection to the problems your team will connect to something…so the August goal is clear, measureable and written so they rally to meet that goal.

The achievement of the goal date becomes more important than solving the unresolved market problem.

When this occurs your team tunes out the market and its needs and tunes into the leaders goal ( and often ego).

Teams aligned around the wrong goal “tell and sell” versus “teach and share the problems they solved” and markets often rebel.

Buyers like to buy; they do not like to be sold.

With the power of social media, and the lack of alignment to the correct goal, a solution can launch and die within hours.

Market leaders understand the value in spending the time upfront, clearly defining the problem(s) they want to solve and developing requirements that set their developers up to win, and ultimately add value to the bottom line of the organization.

Market Losers are so focused on a delivery goal they Haste, and they waste. Focus on the wrong goal results in their team members thrashing around, starting and stopping and not able to develop revolutionary solutions that the market willing buys.

 

How about your organization….

 

Does your team throw things over the wall?

 

Do your developers ask for more information and the prioritization of requirements, or do they assume they know.

 

Has your company launched something because you could and not because you should? ….How’s that working for you?

Technorati Tags: requirements,market leader,market loser,throwing things over the wall,marketing,product development,launch,new product launch,build products your market wants to buy

“Dumb and Dumber, FOX and Warner and how they are Planning on Delaying Deliveries to Red Box

Lloyd and Harry reach Aspen on Scooter in Dumb and Dumber

FOX and Warner Bros delaying new movie releases to Red Box and other kiosk vendors is like watching a new release of Dumb and Dumber.

In the Wall Street Journal article: Warner Bros. aims to lift DVD sales, will delay arrival at rental kiosks. They discuss how they plan to delay new releases to DVD rental kiosks.

The movie studios are concerned about their DVD revenues.

The market is not only speaking, but screaming how they are raving fans of DVD rentals Kiosks like Red Box.

The current big customers like Blockbuster and others are posting over 22% losses in revenues when kiosks like Red Box are showing consistent and impressive gains. Call me crazy… but your market is speaking guys…can you hear me now? Red Box Kiosks are described as; “The hottest thing in movie rentals is as old as the Coke machine — and just as red.”Their CEO Gregg Kaplan said “We are incredibly proud to achieve 200 million rentals and 10,000 locations nationwide.”

The studios have a choice, they can try to “control” the market, the buyers, or they need to intimately understand the market, buyers and needs and not only embrace the new ways consumers wish to consume content but enable it.

Thirteen years of my work experience was serving the movie distribution, rental and mass retail. How Warner and Fox are behaving is no different than how they all were behaving worried that this new thing called “movie rental stores “would erode their box office revenues in the mid 1980”s.

Market losers try to control the market and they protected their current cash cows while ignoring the consumer’s voice. They ignore the bright lights of growth and change trying to tightly hold on to past business models their markets no longer value.

Market leaders spend time getting to know their market and they quickly understand consumers who rent movies also go to movie theaters and some even buy movies and collect them.

When we rent content it is about wanting entertainment in a convenient and cost effective way for me as a consumer. You can try to control us, however when you do we find other ways to solve our needs and often they are much more severe to your bottom line. Besides, how long will it be before one of your competing studios blinks? Didn’t we live this same scenario “back in the day” And what happened…aggressive smaller studios emerged understanding the needs of consumers and and one of you big guys blinked. Some of you held your ground (more stubborn and stupid, driven by your own needs and egos instead of being strategic marketers) and how did that work for you back then? I remember, do you?

I can remember the 28,000 independent video stores and large movie distributors placing pressure on the studios to not ship new video releases directly to this 14 store chain in Texas called Blockbuster. At the time they were buying through distributors like Big State, Commtron, Ingram, and others. Well that little chain of 14 video rental stores quickly became a market leader.

I am a huge fan of Red Box.

They solve problems for me;

· I want to rent a DVD fast, I like the experience

· I want to rent a DVD and do my grocery shopping in one trip, in one location, one stop ( I am already late for dinner)

· I do not want to pay what Blockbuster charges , no late fees …but still a lot more than $1.00

· I only want the movie for one night

· I don’t want to have to join Net flicks or others and pre plan my month of movie viewing

· At a $1.00 rental, I feel like I receive a value , if I like it I go to Wal Mart and buy it

· I do not want to have to “shop” at a movie rental store only to find out they have all the new releases checked out

· I do not want to pay more for a new release than an older movie

· I do not want to buy movies through my cable provider as they are already raping me with what they charge

· The box office theaters are increasing their prices ( again, feels like they are thinking about their own needs and not mine)

So what are you going to do Dumb and Dumber? Are you going to repeat the past and focus on your needs or are you going to understand the market, it’s consumers and our changing needs and not only enable us to enjoy movie entertainment, but who knows you may even find new products and serves that solve our unresolved problems that Red Box fails to solve?

When I wrote my post : Attention leaders: Don’t look now but your lack of market knowledge is showing… I was talking about companies like you that have lost touch with their markets and they guess , assume, and use their gut and intuitions as their way of hitting their goals. They make inside-out versus market -in decisions and their shareholder values decline rapidly.

Your choice…focus on your internal needs and try to control the market… Or gain an intimate knowledge of your market today and it’s consumers like me and build products and service delivery systems that serve me and solve my unresolved problems.

Oh I can hear the movie exec’s now…”easy for you to say, we have billions at stake here.” Well you are right, you do. But you will eventually supply the kiosk companies with new releases at the same time as others. While you figure it out, Red Box will go to a mass retail store on the day of the new release and buy them. While you figure this out you will remove profit from your movie distributors.

So the question is how long do you want to be a “buggy whip” manufacturer saying this horseless carriage is a fad? Or, do you embrace your market, its changes and evolve into a new company that meets our needs today and into the future?

Maybe you develop a “imovies” since my kids seem to download their favorite DVD’s onto Apple laptops? The only hassle is the download from the disc. Not a big deal, but maybe you take the time to understand why they are doing this, the problem it solves for them and solve it brillantly?

We are all watching…

How about your company….

Are you trying to control your market? How’s that working for you?

Are you trying to control your vendors trying to slow down a new service model in your industry?

Are you the buggy whip manufacturer saying this new horseless carriage is a fad and will never last?

Or are you studying your market, your consumers and intimately understanding what and why they do what they do?

All is not lost by the way as some forward thinking buggy whip manufactures found as they learned to make leather seating for these horseless carriages.

Trying to control a market is foolish and expensive. Understand and embrace your market and become a market leader, not a market loser.

Technorati Tags: FOX,Warner Bros.,Red Box,Market leadership,Market leader,market loser,Blockbuster Video,Marketing,market change

Market leaders know that Goals should not be a “Shell Game”

 

Market leading teams understand the importance of clear, measureable goals.

Market losers set loose goals and objectives that change like a shell game, as their mood and business climate changes…this is the quickest way to demoralize a team, lose shareholder value and key contributors.

Market leading teams understand the importance of clear, measureable goals.

Market losers set loose goals and objectives that change like a shell game, as their mood and business climate changes…this is the quickest way to demoralize a team, lose shareholder value and key contributors.

Goals that are not written down are just dreams.

So how do we set goals that motivate, drive growth, but do not feel unrealistic?

What I have always done is build goals from the market up as opposed to from the ivory tower down.

I recommend you segment your market into regions, and then keep peeling the onion until you are down to current and targeted new customers and then products and services.

You must spend time living in your market gaining current information to set achievable goals that drive profitable growth and add value.

From real market knowledge I then recommend building sales playbooks by team member. This is a collaborative effort with the team members who will execute the plan and are closest to the market. We identify sales goals for specific current customers and products .We spend time developing strategy upfront with tactics and key initiatives to achieve our goals.

Where market losers consistently fail is spending too much time deep in the weeds of tactics with little if any time upfront in strategy.

Then we identify new accounts we would like to sell and again assign a goal and develop strategies and tactics to open the targeted new accounts. Next we take the data and goals by product, by customer, and targeted new customer, and new products, and we now build a goal as well as a stretch goal.

The goal becomes our mission; it is what we will be talking about for the next year. The goal aligns us as well as other cross functional team members helping us clearly understand what we are setting out to accomplish.

A stretch goal is always developed to insure the goal is achieved. You are paid on the goal, and if you achieve stretch goal objectives above and beyond your goal you realize a compensation multiplier. Stretch goals become your contingency plan. Stretch goals give you the wiggle room for when things go bump in the night.

What do they say…? “Colonel Custer had a plan”…or “the best laid plans of mice and men”….and they are right. No matter how well we gather market data, “things” happen. Markets change, accounts get acquired, planned product launches are often late, and competitors also are executing their plans.

Having a stretch goal helps us” shoot for the moon and worst case we still end up a star”.

When a change occurs we go back to the original goal and review the specific strategies and tactics. If a key account was acquired or closed, we go back to our stretch goals and change the weighting of those stretch objectives. We ask ourselves…” OK, based on what we now know, we need to make up the shortfall . Of our stretch goals, which have the highest probability to make up the delta to goal? What do we need to do? What do we need to ask of others?

In Market leading teams everyone is a member of “the team” and everyone rallies around the goal, and are aligned with a singular purpose of the team’s definition of a win.

Market leaders know cross functional goals tear down dysfunctional silos and make mighty market leading teams.

Market losers play a shell game with their goals.

They have a “goal of the day” and their teams set out to take the hill. Their teams work diligently against difficult odds and often achieve the goal only to find out the goal changed. In this environment, you must be more skilled at watching the shell game masters hands and follow the goal more than the strategy and tactics to achieve the goal itself.

Market losers observe the goal building process (if they allow you to build it from the market up) and “bet the farm” on the stretch goals.

They need all the stars to align perfectly and although your team will achieve the 20% growth goal, and the corresponding increase in shareholder value, your CEO makes you feel like losers because you failed to hit the stretch goal he told the board ( and often the bank to justify additional capital) we would achieve.

Market losers build goals based on the ROI to justify the investment.

They create a number to make the board and investors happy then they slice this home grown goal and distribute the unrealistic slices to each team member. When team members challenge these goals from mount high they are disciplined and told to “make it happen”. If you challenge how the goals were developed you are often left feeling like you are not being a “team guy” and your questions are signs of disloyalty.

Market losers change the goal when they are not achieving it.

For example I hear some entrepreneurs bragging they are not;” losing as much business as others in their market” versus reporting their performance to plan.

Market leaders set aggressive goals and establish stretch goals as contingencies to insure they: do what they say they would do.

Boards, investors, and owners respect teams that do what they say they will do. Investors gain confidence and are more willing to make additional investments in the future.

How about your organization…..

Is your organization a Market Leader?

Is your organization a Market Loser? Why?

Who sets goals in your organization?

Are the goals fixed or are they a shell game?

Do you know your goals? If you are not sure…how does that make you feel?

What kind of company would you prefer to serve…one that sets aggressive market built goals or one that promises the bank and board numbers and then throws goal slices over the wall and tell you to “Make it Happen”?

Technorati Tags: goals,set goals,achieve goals,add value,increase shareholder value,cross functional team,tear down silos

Mentor Moment #12: Dance with the Date who Brought you to the Dance

There are a number of ways to grow a business; sell current products to current customers, current product to new customers, new products to current customers and new products to new customers.

However far too often companies spend a disproportionate amount of time and energy is spent on new customers and not building relationships with current clients. You must insure you focus on serving current customers.

Current customers have given you their vote, their trust when they placed an order with you

. Market leaders understand the importance of including current client development programs in their growth objectives. Market losers forget who brought them to the dance, and give all their energy to chasing new dates …and often go home alone broke. Market losers are unaware of the interruptions for current clients and often turn customers into shoppers again.

How about your company….

Do you have current account growth plans in place?

Do you have a KPI for retaining and growing current customers?

Once you lose a current customer how hard and expensive is it to win their love again?

Technorati Tags: sales,sales growth,grow current customers

Are You a Sales “Stallion” or an “Order Taking Gelding” Headed For the Glue Factory?

When I wrote my post: Are you enabling your Sales Force or emasculating them? I discussed comments made by salespeople selling in today’s economic climate. In addition I shared other leader’s comments about their view of salespeople and my preference to hire sales Stallions over order taking geldings.

I had a couple of salespeople contact me concerned if they were sales Stallions or order taking geldings. So I decided to share some of the questions I asked them on the telephone in hopes it helps others determine where they fall. But before you answer these questions please understand that teams require all types of people with varying degrees of gifts and experience. If you are an order taker, then be the best order taker with the greatest accuracy to detail in your company…just do not call yourself a salesman nor expect to be paid like a sales stallion.

1. In the last 6 months have you identified a change in your buyer’s buying process that requires a new sales tool?

2. In the last 6 months, have you challenged a corporate norm that is self serving to your organization and not customer serving?

3. Would you describe your role as “fighting for your clients?”

4. In the last 3 months have you experienced conflict with key influencers in other departments in your organization in your efforts to better serve your clients?

5. Has an account thanked you for your quick follow up in the last month?

6. In the last 30 days have you taken a bold action to serve your client without seeking your manager’s permission?

7. Are you in the top 10% of performance to goal in your sales team?

8. Are your accounts in the top 20% of most profitable accounts for your organization?

9. In the past week have you presented your management clients needs for approval?

10. In the last 24 hours have you asked for a clients oder?

 

If you said “No” 2-3 times be careful as you are on the verge of becoming an order taking gelding.

If you said “No” 4-6 times, don’t look now but you have become an order taking gelding. If that is who you want to be, then be the best you can.

If you said “No” to 7 or more of the above questions not only have you become a order taking gelding, but you are headed for the glue factory if you do not change quickly.

Sales Stallions spend 2/3 of their time listening and understanding the needs of their clients. Stallions understand the needs of their clients and solve those needs with the products and or services they represent. They become internal champions who fight for the needs of their clients. Sales Stallions consistently produce profitable sales revenue. Sales stallions are experts in their client’s buying process. Sales stallions are in the top 10% of sales to quota performance.

How about your company….

How well does your organization embrace client needs?

 

Does your company welcome your fighting for the needs of your clients? Or do your actions politically hurt you?

 

Have you been told to “sell through your client’s objections” when you share your clients’ needs?

 

Are your companies ‘policies and procedures written to better serve your clients, or your own organization?

 

If you have challenged one of those; “how we do things around here” rules how was it received?

 

The role of salespeople today is to help guide clients to a sale. Salespeople must become internal advocates for their clients and help their buyers buy, versus selling them. If you are a stallion in line to become a gelding to survive in your organization, you need to ask yourself if you will be happy making that compromise for a company that is disconnected to the needs of its market.

Technorati Tags: sales,buying process,sales process,sales stallion

It’s never too late to jump the fence before you get your… “Values”…. snipped.

Mentor Moment #9: Insight without Action…a waste of time and money

As a leader in your business are you constantly challenging what is believed to be the truth in hopes of identifying unmet market needs and roadblocks to servicing your market? Or, are you busy brainwashing your team with inside out beliefs that are only true in the recesses of your gut and intuition?

One of my favorite scenes from the movies came from A few good Men, the famous “you can’t handle the truth scene.” In this passionate exchange Jack Nicholson states “you can’t handle the truth!” This scene resonates with me as I have found myself in a position far too often when I have been asked to help take a company and its team to the next level. The first thing I must do is help the team gain truth and market loser teams wish to debate the findings.

My first step always is get in your market, deep in your market,with customers, and non customers alike.

I am often referred to as a Heretic as my loyalty is not to the understood norms created inside your building, but to gaining true market knowledge to drive decisions that increase shareholder value. we will be asking a lot of open ended questions with the focus on understanding the truth. I highly recommend every business leader make it a point to intimately understand the market of today as we redefine “normal”. Once we gain current market knowledge, we undertake what often takes the most energy;the Detox of the leadership team from truths created in boardrooms and often in the “gut” of their leader.

Leaders must know what they know, and know what they do not know. You have an obligation to those you serve to gain market knowledge to insure the strategies you implement add the maximum value.

So how about you and your company….

Do you have a clear understanding of the market truth(s) of today?

Are you assuming the truths developed inside your boardroom are true? Or are you a fellow heretic constantly checking in on the market you serve to gain an intimate knowledge of its unresolved problems?

As a leader, are you playing it safe agreeing with the market (Loser) assumptions? Or, are you gathering the truth and sharing it with your fellow leaders? (market leader)

And now the big question…can your team handle the truth?

If you can’t handle the truth don’t ask for my help, as it’s a waste of my time and your money.

Technorati Tags: market knowledge,truth,market leadership,market loser,redefine normal,inside out,strategy
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