Tuesday, July 27, 2010

Market Research

Several times a day we are invited to participate in consumer market research, but few b-2-b companies think market research is important.

The results of research and trials are taken far more seriously in consumer markets than in business to business where many companies believe they know their market already and hardly any seem to budget for any serious in-depth research. Despite this they readily invest significantly in display advertising for example based on belief rather than evidence from research. It is true market research can be a significant investment but not compared with R&D expenditure in developing a product unsuited to user needs or a big launch campaign that has the wrong message or aimed at the wrong audience.

But just because funds are not available to conduct formal market research by experienced professionals is no reason to do nothing. An appraisal of a small group while not statistically valid can often quickly show up important issues. For example are they the right people, do they understand what you are talking about? What are their views of your client, their competitors - in fact have they even heard of them? While conducting such small scale research prior to a campaign to launch a new product for a client we quickly became aware that because they had a serious supply problem, distributors simply would not order any new product from them until the delivery issues were resolved. Another company had moved to a new location and not thought to tell anyone, so we discovered a perception that they had closed down. But usually this type of appraisal helps validate the market rather than uncover serious issues, identify the important issues and provide input that is useful for developing the marketing communications campaign.

 But it is not just for new product development and launch campaigns, but also checking how the market and attitudes are changing. Online surveys can be useful for this, even very simple single question polls can yield useful knowledge.

Does your logo size up?

For years, SME company logos evolved from the artistic doodles of the company's founder, only to be left unchanged for fear of losing 'brand awareness'. Even professionally-created graphic logo-types are often maintained past their technological sell-by date. In years gone by, the graphic specs were defined by the business - sizes, colours and detail - were measured against the company's need to advertise. readability and understanding from glancing at billboards, page advertising, delivery van graphics, letterheads, calling cards. The scaling factor was important then, but it is even more important now. 

True, we no longer have to worry about a black and white rendition for the purpose of faxing a letterhead, although a prudent designer will still check all is well in that department. A recent experience of ours, marketing an international conference with over 30 companies providing sponsorship, highlighted a problem in stark sihouette. Promoting the support of the sponsors by using their logo initially seemed a simple task. Yes, the larger corporations sent the logo in different scalable forms of graphic, and some even appended the relevant section of their Corporate Identity Manual which left us in no doubt about how and where the logo may be used. 

The majority failed the first hurdle of supplying anything at all. When chased, they provided an image from their website (much too low resolution for posters, banners, flags or even for use in the printed brochure). After much cajoling, it was only when the logos were collated onto one large banner, did the real issue present itself. When scaling logos to the same 'equivalent area', some logos hit the viewer between the eyes, whereas others were lost completely. Spidery text logos look great running down the side of a letterhead in a subtle shade of colour, but what about when viewed on a website? And what about the favicon? 

We all know favicons, but probably not by the name. It's that little tiny icon that appears on the extreme left of the URL address of the company website, as displayed in the navigation bar of a browser. When considering the adaptability of your company logo, this is the far end of the size universe. With an area of just 16 x 16 pixels, you need a style that works here too. So when considering a new or updated logo, take into account all aspects of marketing, and start with just 16x16 pixels and doodle upwards from that.

Losing sight of your customer


We all know that the term 'marketing' is synonymous with 'communication'. If the communication channels are inappropriate or misdirected, the central purpose of marketing any product or service is lost. Communication is delivered in many forms. Obvious 'front door' tactics of advertising, direct mail and bulk emailing are often combined with a more subtle approach of promotion on the website, widely distributed press releases, knowledgeable staff, personal contacts, and the 'moral high ground' support communication materials such as 'white papers', complimentary training courses, information booklets and advice guides. 

But who is the 'customer' to whom these various elements of a marketing mix are directed? In the 1980s, it was fashionable to consider everyone as your customer. The NHS ceased to treat 'patients', and replaced them with 'clients'. The public could no longer consider themselves 'passengers' on a train; they were promoted to 'customers'. Everyone in a communication chain became a 'customer'. 

When a company develops from the home-spun specialist enterprise selling directly to end users into a mainstream commercial business with a corporate structure, there has to be a change in working practice. The size of the client base expands and becomes too large to manage from head office. Markets may expand globally, and for a manufacturer, national distributors eliminate the problems of dealing with multiple languages, local fiscal and legal practices, maintenance and servicing. But companies can risk focusing their commercial interest on the nearest link in the commercial chain - national distributors - who consider their customers to be their network of competing dealers who may or may not sell to an end user. 

But what becomes of the communication channel between the prime manufacturer and the end user? Deciding on a marketing mix of appropriate marketing initiatives is the specialism of marketing consultancies who can help with detailed planning and implementation to ensure a coordinated approach to all stations on the 'route to market'.

Monday, July 05, 2010

Don't let software tools drive marketing activity


The availability of software tools tends to encourage some people to think they now possess the knowledge, capability and skills to successfully accomplish work they have no training in. Although paints, brushes and easels were readily available to anyone, few believed that the mere act of buying these tools transformed them into artists. But by a software package and suddenly they are graphic designers, web designers and accountants. The other side of the "technology" sale to non-experts is the leveraging of gullibility to sell supposed benefits  of a wonder product that somehow compensates for the purchasers lack of expertise. Taking the sale in isolation from its use as a tool for experienced users.

Some years ago chip makers Intel ran a powerful campaign aimed not at b-2-b customers who would actually buy their product, but at the general public who were invited to look for an "Intel Inside" label on the product. For buyers the business of comparing a whole range of specification points the task was now simple - they just had to look for a single label to know the product was "good". We even started to get feed back from sales people that this single parameter was being requested by b-2-b customers of electronic control systems. Forget that an R&D team had carefully researched the best electronic devices to meet the product specification and they actually knew what these things were. More recently we have encountered clients mesmerised with web technologies more interested in which CMS system (remind me, what does CMS stand for?) than the site content and navigation, or indeed the purpose.  

I was reminded of this selling "technology" to the non-technical when a client called excited about a new software product for marketing that had been demonstrated to him, something to do with e-mail he thought and just for a few tens of thousands of dollars it seemed like a bargain. Could I look into it? The web site he referred me to had no reference to the wonder software, just a series of hysterical messages inviting a call back - itself apparently worth $350 but offered free - and then a series of dead links.

Buying e-mailing software for its own sake is a bit like buying a car when you can't drive. Questions like do you have the e-mails of people you want to communicate with, indeed what is the message you want to send, do you comply with legislation, analysis, campaign tracking, your ISP etc. etc.? It is simply starting at the wrong end - learn to drive first, then once you have passed your test think about what car you need. There is a lot of knowledge and experience involved in using programs that goes on behind the scenes that a client does not have to get involved in. After all clients should be most interested in selling their own product, not managing software.  

Our philosophy at Technical Marketing Ltd has always been to start the marketing process from an analysis of business objectives, then to set goals and strategies that work to deliver those objectives. We develop marketing plans to describe the method, introduce a budgetary discipline for financial control  then work closely with our clients in implementing plans, measuring results and where relevant modifying activities.Technology in marketing is not an end in itself, but used by people with marketing knowledge can be a powerful tool. Driving a marketing plan to use one particular technology tool is not the most effective way to go.