Saturday, February 9, 2008

Core Values in Marketing

If you'd rather listen than read, click here.

In the early 1990’s I had an epiphany. I realized it is possible to have, or at least feel like you have a relationship with someone you have never met in person. They may not have one with you, but you can most assuredly have one with them.

I worked in a warehouse everyday and as long as I got my work done, I could listen to the radio or cassette tapes on my Sony Walkman. Do you remember cassette tapes? Every day I would listen to John Maxwell leadership tapes in the morning and after lunch I listened to the Rush Limbaugh talk radio show. It was a Friday afternoon, early in 1991. My wife, I and our friends Robert and Beth Tippett drove to Kansas City from Joplin, Missouri to see Rush Limbaugh in person at what was called “The Rush to Excellence Tour”. At the event, I purchased a black baseball cap that had Rush’s signature embroidered across the front of the hat. In those days I was even more naïve than I am today and had no idea Rush Limbaugh might be an irritation to some people. We got back to Joplin very late Friday night.

The next morning I had a mid-morning board meeting at church. Did I mention I was also on staff as the children’s minister at Fir Road Christian Church? I proudly wore my new head-gear to this meeting of elders, deacons and various church leaders. A lady named older, I’ll call Jane, whom I had known since kindergarten blind-sided me, berating and vilifying Mr. Limbaugh. She told me all kinds of evil things he stood for and how he is a hater of this and that. She went on and on. I immediately dug in my heals and began to defend Rush as though he were my own brother. I was visualizing myself physically hurting this woman for attacking my dear friend. The friend I had never met. The friend I had only seen in person one time from the nose-bleed section of a theater in Kansas City.

I got home later from the church meeting still wounded from the attack on my “friend”. I had to have a serious talk with myself. “Randy, you have known Jane for about 20 years personally and she is a good friend of your parents. You have listened to Rush on the radio for about a year. Why on earth did you take up such an offense today, for a man you have never met, nor will ever?”

My relationship with Jane was never the same and I never understood why until I spent some time a decade later with BJ Bueno. He is a marketing guy who specializes in the area of “Cult Brands”. His first book, (which I recommend) is called The Power of Cult Branding. I’m not talking about some kind of weird satan worship. There are brands in the marketplace considered to have a “cult” following of people. They may not be the biggest companies; they just have the most loyal, die-hard customers. Through meticulous research and scores of interviews, BJ and his buddy Matt Ragas uncovered the remarkable, untold stories behind nine very successful Cult Brands. The brands studied were Apple, Jimmy Buffett, Harley Davidson, Linux computer operating systems, Oprah Winfrey, Star Trek, Vans skateboarding shoes, VW beetle and (at the time) the World Wresting Federation.

Here’s basically what Mr. Bueno taught me. It’s not the product or service that pulls together this “cult” following of customer evangelists. It is their shared core values.

Your core values are as much a part of your being as your arm or your leg. As a matter of fact some people are willing to give up an arm or a leg for their values. We call these people the U.S. Military. These are people willing to give their lives for what they believe in, for their values.

In the same way, Harley riders around the country are a family. When they see each other on the road, they feel a kinship. They are seeing a member of their “tribe”.

I use a PC, but my daughter Ashley is a member of the Apple/Mac community. Mac users feel like they are part of a special computer movement. Most are even a bit smug about their Macishness. Even though Mac computer sales are a fraction of PC’s, they know they are in a special club. It’s like they have a secret, an inward confidence in their machine. The people at Apple have tapped into a special set of values Mac users have in common and they refuse sell out or violate the values.

Ok, back to my Jane and Rush story. My sticking up for Rush had nothing to do with real friendship, again, I have never met the man. When Jane attacked Rush, she attacked my core values. I have many of the same conservative social and fiscal political beliefs and values. She wasn’t just attacking Rush, she was attacking me, my father, my friend Robert, my wife and my version of “The Stars and Stripes”! “Randy-World” was under attack and I had to defend the borders.

In the same way Harley-Davidson riders aren’t standing up for a motorcycle, they are standing up for a lifestyle that represents a certain set of values.

Soooo… What does this have to do with Owner Branding and your business?

Allow me to give you an illustration in order to bring this closer to home.

You have recently moved to a new community. You are in need of a new family dentist. You are a card carrying member of Boxer Dog Rescue Society, which means you volunteer your time to help lost or abandoned Boxer dogs find good safe homes. You have been the foster home for a young male named “Dozer” for the past two weeks. Today you are delivering Dozer to his new home. You arrive at a beautiful home; a lovely, sweet lady answers the door with her two very well behaved elementary aged children who are very excited to have a playmate for their other Boxer. Her name is “Lady”. Within minutes, the dad comes in to visit with you and ask a few questions about Dozer. During the conversation you find out he and his wife have been a part of Boxer Rescue in the past. As you are leaving, you exchange contact information and discover he is a local family dentist.

When the time comes to set that first dental appointment, whose name will you Google first?

Why him? You have no idea if he is any good as a dentist.

Most of all, YOU LIKE HIM; you have a common bond very few people can understand or appreciate. To you and to the dentist there is something special and majestic about dogs and especially Boxers. You have a friend and the only way he will not be your dentist in the future, is if you can’t find him or if his staff offends you or he turns out to be a very, very bad dentist. I repeated “very” because dog-lover-values commonality will make you overlook many sins.

The money quote: "All things being equal, people will do business with, and refer business to, those people they know, like and trust. All things not being equal, people will do business with, and refer business to, those people they know, like and trust."
WHEN PEOPLE BELIEVE YOU HAVE THE SAME CORE VALUES, THEY FEEL THEY KNOW YOU, THEY LIKE YOU AND THEY TRUST YOU UNTIL YOU GIVE THEM A REASON NOT TO!

Monday, February 4, 2008

Jack-Rabbit UTOPIA


If you didn't read last week's memo, please give it a scan before you read on today. Click here.


Today I would like to tell you a new Turtle and Rabbit story.

The Rabbit represents 97% of advertising going on in the world today. It is made up of a series of sprints no one remembers. I'm not saying they are not effective, I am saying they are not remembered over the long haul. Rabbit advertising reaches people who are in the market right now for your products and services. (Exactly, who are they and how do you find them?)

I've learned how to write sprint ads as well as anyone. I however choose to call them "Event Ads" and I rarely write them. One of my mentors, heroes and friends is Chuck Mefford. Almost a decade ago he taught me how to write a proper event commercial. For short he called it a U.T.O.P.I.A. ad.

I want to make something clear. Just because I know how to do something, does not necessarily make it the right thing to do. I don't even think Chuck still teaches this. It was helpful to me when I first got into advertising.

Urgency---You have to give the public a time limit or an impending event that gives the them a short window in which to participate in the opportunity you are offering. If the shopper does not make a move right now, they will miss out. They will lose something they need or want, forever.
Theme---What product or service is this?
Offer---Why do I (the customer) care?
Price---How much is this going to cost me? Can I (the customer) afford the total price, the payment or the interest?
Item---Specifically what am I getting and what am I not getting?
Action---A call to ACTION. Ask the customer to take some kind of step in your direction to find out more, where to go, what to ask in order for them to take advantage of this "once in a lifetime" chance.

Car dealers are the masters of Jack-Rabbit-UTOPIA. The ads are crammed full of hype, dates, prices and impending event closing lines. The goal of most car ads is to reach people who are in the market this very second for a new set of wheels.

Jack-Rabbit UTOPIA has two major challenges:

1. Only about 2% of the public is in the market for the average product or service at any one time. This may be less and may be more depending on the product or service and the publics buying cycle of it. Buying Cycle is how often the public needs or wants your service or how often the public needs or wants to buy your product again. If you own a Bar-B-Que restaurant, this might be once a month. If you own a car dealership it could be every 2-3 years. If you own a furniture store the buying cycle can be up to every 7-9 years!

2. The other main problem is these types of ads are erased from our brains as soon as the date passes. Sleep erases your short term electric memory of all things no longer relevant. Face it, your event or big blow out sale is no longer relevant one second after it ends. NO LONGTERM BRANDING TAKES PLACE! Ok, that's not completely true. If your advertising plan is an ongoing series of sales events, the public's long-term chemical memory will remember that you have sales on a consistent basis. You will train them to keep their eyes open for your next big sales event.

Ok, Randy, why on earth did you spend this much teaching me how to write a commercial having two such huge flaws?

Good question. The answer is this there are times in the advertising world when and where you need a big fat dose of Jack-Rabbit UTOPIA. Remember, I told you this is a great way to advertise AN EVENT. When you are advertising, you are either advertising an event or you branding your business long-term.

I think UTOPIA is wonderful for upcoming concerts, parades, fairs, church events, annual festivals and "real" going out of business sales.

Nest week we'll talk about TURTLE POWER.

Here are few thoughts:

"Consistency always out-performs occasional brilliance." ---Victoria Woods

"Diligent effort, consistently applied, in a specified direction, over a long period of time, will produce results, certain." ---Joe Grimaud's Law of Certainty
"The tortoise didn't win because he was slow, nor did the hare lose because he was fast. The hare lost because he made poor choices." ---Sid Allsbury (my Dad)

Business Runs on Relationships, Relationships Take Time.



---Randy

Sunday, February 3, 2008

What is a BRAND and what is real BRANDING?

Marketing Legend Jack Trout says a BRAND is a business “Meaningful Difference“.

What is your business’ “Meaningful Difference”?

Branding Legend Roy H. Williams (a.k.a The Wizard of Ads) says:
“Real BRANDING is making people think of your business and feel best about your business when they come in need of your product or service.”

How many people think of your business first and feel best about your business when they come in need of your products or services?

I like to call "Branding" PRE-DISPOSITIONAL advertising. When a person heads for the yellow-pages, they can stop at the business white pages and look for your name. When it's Google time, they Google your name and business product catagory.

Proper branding is someone being pre-disposed to choosing you, because they think of you first and feel best about you when "the time" comes.