Posts Tagged ‘Marketing’

The CMO’s Four Envelopes

May 18th, 2011

There is an old joke about CEOs, this is the CMO version…

A newly hired CMO arrives on the first day to find four numbered envelopes on the desk with a note that says “open in case of emergency” left by the last position holder. Bizarre, but soon forgotten in the hum of the first day and subsequently buried in the piles of stuff over the following months. Those months are a blur of activity, getting up to speed, assessing the team, evaluating the activities, working with the executive team, etc.

After a few more months, the honeymoon period wanes as things start to solidify and the CMO begins to feel the pressure to produce immediate results. Sales have been flagging, sales is complaining, the board is restless, and the CEO is less patient. The CMO remembers the envelopes and finds them buried under stacks of papers on the shelf.  Now, unsure that this point constitutes an emergency, but the CMO remembers the grilling in the last senior management meeting and thinks “now or never”. Upon opening, there is a single line, “Fire the Agency and Rebrand”.

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Marketing is Like Commercial Fishing

May 18th, 2011

We are facing a major challenge in marketing with the over-automation of market communications. Let me explain with an analogy about Commercial Fishing .

 Most marketing organizations don’t feel comfortable deep sea fishing. Too expensive, too resource intensive, and too much risk. They tend to stick closer to shore and troll the bay. It is a lot easier to crisscross the bay with nets and pluck out the fish.  Doesn’t require a real understanding of how fish think or even what bait would be used to lure them. We just pluck out our net and they pop into the net.

 The challenge is that their competitors do the same. When markets are new, there is plenty of fish for everyone. We all go out together in fishing fleets (trade-shows) and there is a collegial atmosphere. Plenty for everyone, why get testy? Except as markets mature, the amount of fish in the bay is reduced and all of a sudden tempers flare, competition becomes more intense, the activity becomes more intense, and the fear creeps in around making sure we can reach out limit. What if we don’t hit our numbers? What if our hold is half-full?
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Social Marketing Economics: Cost of Attention versus Cost of Rejection

February 22nd, 2011

What would a world look like where an organization didn’t need marketing? All new sales came via referrals, the sales organization were just focused on order taking, and most of the customer costs were in retention and producing the best experience.

Yes, there are many businesses that look like that, but for most of us; we can never have enough new customers and we have to work for them

The challenge with the traditional marketing approach is that we focus too much on generating attention and interest, but we get lost in the costs. Point in case, email marketing is focused on the conversion rates from a campaign. So, we get a 10% open rate and a 2% conversion from the email campaign. But, if you think about it, 90% didn’t open and 8% rejected the offer. Continue reading “Social Marketing Economics: Cost of Attention versus Cost of Rejection” »

Three Stages of Social Maturity

November 16th, 2010

We have had a series of meetings that highlight the need for those of us in the industry to provide context as to where companies are in the social maturity curve. For companies that are on the cutting edge, this is an easy conversation as they are comfortable with ambiguity and the speed of change.  For others, the experience is different.  Through our conversations,  we’ve  identified the Three Stages of Social Maturity:

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