Subscribe

Stay tuned to the latest posts by having them delivered to you for free via RSS or Email. Simply Enter your email address or click on the "Subscribe to RSS" button.



OR

Subscribe via RSS

The Marketing Mix 4Ps

4 Ps smallThis article is based on a speech given to the Marketing Indaba in Johannesburg, Cape Town and Durban in 2015

 

How relevant are they today?

 

 

In the 1950’s the American Marketing Association suggested that marketing could be formalised with a focus on the disciplines of pricing and channel management and product management to add to the higher profile marketing promotions responsibility. This was phrased as the marketing mix or the 4Ps – Product Price, Promotion and Place (or channel) by the AMA President Neil Borden. When the 4Ps were incorporated into Phillip Kotler’s Principles of Marketing in the 1960s they became a cornerstone of marketing and have remained so to this day. The question is: Should we still base our marketing on this construct or should we move on?

There have been several attempts to modernise or overhaul the Marketing Mix including an attempt by Kotler to change them to a different 4 Ps. People, Processes and Physical Evidence were added in 1981 by Boon and Bitner to cater for the service industry. However the venerable 4Ps have proved amazingly durable. The most interesting attack on the 4ps was in a paper by Skibstead and Hansen[1] “Why do the Business School’s still teach the famed 4Ps of marketing when three of them are dead?” Continue reading

Are you driving your business or is it driving you?

2016 FebruaryThis article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in February 2016 and is posted here by their kind permission

 

 

Why so many strategies fail to deliver and what can be done about it

 

 

It is almost a caricature. The executives go away on a strategy planning weekend. They have a successful think tank and come back fired up with great strategies and enormous enthusiasm. Then the day-to-day tasks demand attention and three months later nothing has changed. The idea may still be discussed in management meetings but this is becoming embarrassing. Why did it all go wrong?

It is a lot easier to think about how to grasp opportunities and solve problems than it is to implement the plans. A central problem of implementing new strategy is that it usually relies on people who already have busy jobs with little time or energy to execute additional demanding tasks. The planning session seldom takes this factor into account so strategy implementation remains project-based and dependant on spare time availability within the busy management team. Nothing changes and the company drifts on as it always has.

Entrepreneur style

The style of many entrepreneurs may also be the root cause behind failure to implement strategy. The phrase ‘working in your business instead of on your business’ is almost universal. Entrepreneurs naturally fix problems, manage people on a daily basis, sell, manage the finances, pacify irate customers and liaise with suppliers because they have always done so, and are now very good at these tasks. They work long hours doing things that others would be less effective at doing. Working in the business becomes a comfort zone, and the area they gravitate to when the business faces problems. Continue reading

Customer base or new business?

2015 NovemberThis article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in November 2015 and is posted here by their kind permission

 

 

How should you deploy limited resources for best returns?

 

 

 

Entrepreneurs know that they do not have unlimited sales and marketing resources. You face the question of how to get the maximum output from what you have. Should your energies be directed at more sales to customers, or more customers? Is it wise to split your resources between these?

A partial answer can be found in the nature of the business. If you sell things that customers buy very seldom like flooring or wedding facilities, your effort should go towards positioning your brand as one to consider and delivering beyond expectations to grow word-of-mouth and referral business. Similarly if your product set is applicable only to a small total market and you are the major supplier you want to ensure that all customers use as much as possible of your product range. Continue reading

Working from home

photodune-596958-home-office-sSeven reasons why working from home may or may not suit you

Some time ago I the guest of Redi Tlhabi on Radio 702 and Cape Talk discussing working from home. I have worked from an office at my home for twenty five years and I gave advice and tips about working in your personal space. This article summarises the key points to have emerged from the programme.

 

Working at home can be very lonely if you work alone, with nobody about to discuss things with; if you have staff it can be invasive and affect your privacy. The plus is that modern communication aids means that there is less need to be in the same office. Electronic conferencing, e-mail, social media, VOIP and other aids means we can communicate experiences and thoughts in real time while being physically apart. The seven key issues which emerged during the discussion are:

  1. Your personality type

You need to be self-disciplined. If you need a manager to motivate you this may not be for you. Extroverts and introverts work well at home, depending on the level of external interactions required by their work, but people who need a high degree of interpersonal contact should be careful of one-person home offices, it is too easy to seek out company and ignore work. You should match your practices with your personality. Continue reading

The power of focus

2015 November  This article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in October 2015 and is posted here by their kind permission

 

 

 

Concentrate your resources on the target to improve performance

 

 

 

It seems logical to spread your net as wide as possible, to develop all available sales opportunities and markets if you want to grow. This makes sense if you are the dominant player in the market with an abundance of resources, one who can afford to waste resources on loss making sales simply to deny them to competitors. For everyone else it is a bad idea. Military strategist von Clausewitz wrote “Where absolute superiority is not obtainable, you must produce a relative one at the decisive point by making skilful use of what you have”, echoing the much earlier Sun Tzu maxim of concentrating your forces where the enemy is weak.

This military strategy applies equally to business. Continue reading

Hitting the target

 2015 September

 

This article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in September 2015 and is posted here by their kind permission

 

How often do you make your sales forecast?

 

 

 

Your company consistently makes sales target, but only with real effort and ingenuity. You set targets which continually stretch you and your people to greater heights and these targets are almost always met or just exceeded. Congratulations, you are running a near ideal company.

If your business does not achieve these lofty heights then spend some time focussing on the consequences of missing target. Entrepreneurs are naturally optimistic and sometimes set wildly optimistic sales targets, with unexpected consequences. Where targets are not reached an aura of negativity will usually permeate the company. There is typically a lot of finger pointing with salespeople and marketers coming under fire. In turn they blame product performance, pricing, customer service and management. Continue reading

Your sales machine

 2015 AugustThis article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in August 2015 and is posted here by their kind permission

 

 

 

Turn your whole company into an enthusiastic unit that aids and promotes your sales

 

 

 

It is in the interests of any employee to do anything they can to ensure the business makes sales, or at least not put sales at risk. Aside from loyalty to their employer, a healthy and growing business means everyone is better off and has improved prospects for promotion. Strangely there are employees, and some managers too, who damage the company through carelessness, incompetence or deliberate obstruction. They are hurting themselves as much as their employer.

Contrast that situation with companies where everyone is customer centric, and frequently attract praise from customers they have been in contact with. There are typically no unresolved complaints on consumer forums, and every employee seems to know why customers should buy.

Review yourself

To build a company like them, some introspection may be a good idea. Do you really deliver goods and services that meet customer expectations, or have customers had to lower their expectations to your standards? Think of the grudge purchases you make, or the times you have been distressed but did not change supplier after a bad experience. You cannot expect your employees to be champions if your company supplies shoddy products, uses untrained technicians and seldom delivers on its promises. Fix the real problems and you will be pleasantly surprised by the change in your staff.

Once you are sure you have something to be proud of, start developing a true selling organisation by communicating with everybody and listening to what they think. You will often be appalled by the level of ignorance of the company’s products, values, selling points and competitive position. If this is the case the fault is most likely of your making; people are seldom ignorant by choice. Continue reading

When you fight with customers

2015 July

 

This article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in July 2015 and is posted here by their kind permission

 

 

Sensible outcomes from disputes

 

 

“The customer is always right” was originally coined in 1909 as a way of differentiating Selfridges Department Store from competitors. It was revolutionary at the time, when misrepresentation by retailers was common and “caveat emptor’ (let the buyer beware) was the usual response to customer complaints.

Customer disputes happen in any business. Unresolved disputes may result in loss of customers or groups of customers, refusal to pay, widespread and often biased bad publicity, loss of repute, legal action, and even damage to property and public protest. Minor disputes can quickly escalate into anger, recriminations, threats and violence. Staff complaints about abusive and unreasonable customers is another source of dispute.

Where does it start?

Customer perceptions of broken promises or products not living up to expectations are at the heart of many disputes. Rude, uncaring or incompetent service from employees is another frequent cause. You may initiate a dispute relating to slow or non-payment, unreasonable or bullying customers or continual changes to requirements but unwillingness to pay for changes.

Arguments will escalate quickly if either party feels they are not being listened to by the other. A simple request can grow to a blazing row when either party ignores the other or scorns their view. Many serious disputes could have been resolved easily if they were attended to sensibly, courteously and early. Continue reading

The unique product or service

2015 June cover

This article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in June 2015 and is posted here by their kind permission

 

Does unique mean it will make millions for you?

 

 

 

You have created an innovation; congratulations. It may be a unique product, a brand new service, a new way of distributing things, a unique business model or a combination of these – but will it fly? Hopefully it will be a success and reward you, but just because it is unique is no guarantee of commercial success. The great innovations are generally those where potential customers immediately see the value, and perceive the value to be higher than the cost. Think of prepaid airtime which opened cell phone use to those who could not afford a contract.

Innovations which struggle to get off the ground are often those where the entrepreneur is passionate about it and believes potential customers should share his or her passion. This is a good way to learn that even great and creative products must be sold. Many wonderful innovations have never been launched or failed when they were introduced.

Preparing to launch

Ask yourself: Is this innovation is in response to a real market need, does the market recognise this need or are they not aware of it yet. If you are in the second category be prepared to spend a lot of time and money convincing people they really have this need.

There are two key requirements for a successful launch of a unique product; reasonable certainty that customers will buy at the proposed price and sufficient money to develop and market the innovation. Please do not ignore the marketing costs. Commercial failure of many innovations stemmed from entrepreneurs who spent all their money on perfecting the product and had nothing left to tell the market about it. Marketing innovations is expensive; the market must be convinced that the innovation works, is cost effective and gives advantages over old ways of doing things. Do not underestimate marketing costs. Continue reading

The right workload

2015 March

 

 

This article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in March 2015 and is posted here by their kind permission

 

 

Entrepreneurs work hard but should get the balance right

 

It is routine for entrepreneurs to work very hard for long hours. Hard work is a part of entrepreneurship, but how balanced is that workload? Do you handle customer complaints, check quality, answer e-mails, expedite deliveries, do progress chasing, and fix problems? These are all reactive. Your may also do some proactive work like designing the website, selling to customers, developing products and similar tasks. Even these may really be reactive – arising from the lack of a website, no trusted salespeople and customer gripes about product deficiencies. If this sounds like you, you are working in the business, not on it, and working at a low level as well.

You should be focused on beating competitors, innovation, customer retention, structuring finances, building the brand, managing budgets and forecasts, getting the right people in place and a host of other managerial tasks. These are working on the business not in it. At least some of your time must be devoted to strategy – have you got the right products? Are you in the right markets? Should you buy competitors or be bought? Is your buying strategy right? Your pricing? Does your structure support your strategy?

Life balance is equally important. Family, health, friendships, networking, learning, spirituality, hobbies, holidays and entertainment will often be sacrificed for long days working, but there is a cost. Continue reading

The one giant deal

2015 April cover

 

This article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in April 2015 and is posted here by their kind permission

 

 

Opportunities and risks of getting the biggest deal ever

 

 

What do you do if you get the opportunity of a huge sale, one bigger than anything you have done so far, maybe bigger than your entire business? This is a potential game changer, the opportunity to grow spectacularly. At the same time it is scary. Will you be able to continue to supply regular customers? How will you finance this deal, what will happen if you do not get paid? Can you deliver? The opportunity opens up dreams; all the wished for things you will be able to afford for the business and your family, security for you and your workers…

Best and worst

The best things that can happen are really good. If you make reasonable margins on the huge turnover increase the extra cash can be used to increase competitiveness with additional resources, creative marketing, better buying terms and the best information systems. Once you have executed a large deal successfully, you attract other large deals. Big organisations like to deal with suppliers who other big organisations use, so your business may be at the start of an incredible growth curve.

The worst things that could happen are very bad indeed. Many suppliers have gone insolvent because large customers persisted with unreasonable demands or did not pay. You may not be able to deliver to specification or on time and have penalty or cancellation clauses invoked. If you have personal guarantees to any supplier your lifestyle can be at risk too. Continue reading

Solution Selling – alive and well?

V__82F1This was the topic of Ed’s address to the recent series of Sales Summits around the country.

 

 

Most companies says they sell solutions to their customers, but they find it surprisingly difficult to explain the solution provided in recent sales; they often describe products sold instead. It is still harder to get answers about the value of the solution provided – what return in money or some other measureable did the customer enjoy as an outcome of the sale? And yet this is the very definition of a solution “A mutually agreed answer to a recognised problem, which provides a measurable improvement”. You might want to reflect on this and ask yourself – do we really sell solutions?

The formal methodology of Solution Selling goes way back to the 1980’s when a visionary ex Xerox sales training director Mike Bosworth launched a company to train salespeople in his methodology. He published a book in 1993 outlining his ideas, which revolutionised the basis of selling, converting technique and technology based feature / benefit selling to and more consultative customer and solution orientated approach. Arguably this was the foundation of all modern customer centric selling. Continue reading

The right workload

2015 MarchThis article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in March 2015 and is posted here by their kind permission

 

Entrepreneurs work hard but should get the balance right

 

 

It is routine for entrepreneurs to work very hard for long hours. Hard work is a part of entrepreneurship, but how balanced is that workload? Do you handle customer complaints, check quality, answer e-mails, expedite deliveries, do progress chasing, and fix problems? These are all reactive. Your may also do some proactive work like designing the website, selling to customers, developing products and similar tasks. Even these may really be reactive – arising from the lack of a website, no trusted salespeople and customer gripes about product deficiencies. If this sounds like you, you are working in the business, not on it, and working at a low level as well.

You should be focused on beating competitors, innovation, customer retention, structuring finances, building the brand, managing budgets and forecasts, getting the right people in place and a host of other managerial tasks. These are working on the business not in it. At least some of your time must be devoted to strategy – have you got the right products? Are you in the right markets? Should you buy competitors or be bought? Is your buying strategy right? Your pricing? Does your structure support your strategy?

Life balance is equally important. Family, health, friendships, networking, learning, spirituality, hobbies, holidays and entertainment will often be sacrificed for long days working, but there is a cost. Continue reading

Word of Mouth

word-of-mouth-marketingThe importance of getting people talking about your company

 

This article was published as the Sanlam Business Tips for Business Owners December 2014 edition. This publication is a great resource for entrepreneurs, well worth subscribing.

 

People telling others about their positive experiences with your company sends a far more powerful marketing message than any advertisement. Word of mouth is credible, personal and admiring. The best advertising cannot match that. Word of mouth is also free, so it is a great marketing medium and deserves more attention that it normally gets.

You cannot simply ask people to talk about your company. Larger organisations use ‘brand ambassadors’ to promote their products. The audience knows the brand ambassador is being paid to promote the products, so the message lacks credibility, it is not true word of mouth. Few of us will tell others about a reasonably good experience with a supplier, unless we are asked for a recommendation. How then can your company use this valuable marketing tool?

Good example

The best example I know comes from many years ago when I routinely bought lunch at a deli called The Shop Around the Corner in downtown Johannesburg. Their pizza slices came from large round pizzas, roughly cut into segments, and every time I bought one the counter hand would carefully select the biggest one on the tray for me. That felt great! I soon realised that every customer got the biggest available slice. When the slices ran low a fresh pizza was cut and the slices added; the process of serving the biggest slice first continued. I talked to many people about how wonderful their service was and I am sure many others did too I am still talking about it almost thirty years later. Total cost of this exercise – one pizza slice each lunchtime. The Shop Around the Corner is still there, through all the changes in central Johannesburg, under the same ownership. With that great customer service, good food and smart marketing I am not surprised. Learn from them. Continue reading

Breakout

2015 FebruaryThis article was written by Ed Hatton for Entrepreneur Magazine (South African edition), as the My Mentor column published in February 2015 and is posted here by their kind permission

 

 

 

Planning and executing real growth strategies

 

 

The year 2015 stretches ahead, and many entrepreneurs I speak to are still cautious. This is understandable, 2014 was a horror year of violent strikes, power cuts, limited postal service, slow economic growth and uncertainty. The temptation to proceed with caution into 2015 is very strong.

Beware though, caution can become a habit, business plans showing a modest growth on last year can become the norm. The company does not invest in new products, markets or channels, research, marketing and training are put on hold and the company develops a culture where innovation becomes too risky “for now”.

Breaking out from the limited growth habit can be a challenge, but a very worthwhile challenge, if only as a defensive move to stop competitors getting bigger and threatening you. Continue reading

1 2 3 6