The holistic approach to marketing encourages employees within the whole organisation to focus on satisfying the customer in everything they do. Sales people are in the front line of involvement and influence over the customer. They should be strategically placed to achieve the best results for the company. This often calls for structuring customers into territories and appointing major account managers to increase key business and develop market intelligence.
Successful sales reps have been trained to know their product very well, can manage their own time wisely, and are results driven. Monetary incentives are the major driver in motivating them to achieve set targets. Top sales people are often the highest paid employees because of the value they bring to the business.
However, modern companies are beginning to recognise the benefits of teamwork throughout the entire organisation and introduce company-wide rewards that highlight the contribution of all parties to the overall performance of the business. This adds a sense of belonging (Maslow) and reduces the traditionally selfish behaviour of sales people which emphasizes "getting the sale over building the relationship." (Kotler Keller, 2012) Ihis strategy also aligns its employees with the company's long term objectives.
Unfortunately, sales force turnover reduces profit through lost sales, impact on other sales reps, and increased overheads through additional staff sourcing and training. Recruiting agencies often advertise for sales people with a "proven track record". Direct marketing is a highly personal activity and so often customers will remain loyal to a person, rather than a product or brand. In effect, customers may bond with and trust an individual sales person and prefer to continue to receive their service offering which they perceive as being superior. So when sales people leave, the customers often go with them.
Sales people can be attracted to opportunism when they are not connected to the rest of the organisation and there are inadequate internal guidelines. This can lead to bigger discounts, over generous payment options, unrealistic delivery and short-term benefits at the cost of long term resources.
Retaining sales talent involves more than financial incentive. Other factors like encouragement, recognition from peers and mentoring play a role in their success. When competing companies offer the same compensation, it is the underlying factors that determine the retention and effectiveness of sales people. Trust within the organisation is important, as this also saves time wasted on 'shadow-accounting' that sales people often do to check their commissions. We can see opportunity here for improved productivity. Technology is constantly improving the tools of the trade but companies should beware of cognitive overload and resistance to change. The outside sales force can be further supported inside the company by technical support people, sales assistants and telemarketers. All these things can facilitate effort, ability and strategy to improve sales performance.
Besides having the best sales team in the whole wide world, there are still some external factors which may affect a company's success. Good luck is defined as success apparently brought by chance rather than through one's own actions. I like to think of luck as a 'blessing'. We cannot control it but we may be able to invite it, like being in the right place at the right time. We can be in the right place but the 'timing' issue is not up to us.
Saturday 4 August 2012
Tuesday 24 July 2012
Vertical Marketing Systems - forget Franchises
When distribution channels unite for the better good, the aggregate sum is supposed to be greater. Vertifical Marketing Systems encourage one channel to dominate control to ensure brand consistency. The obvious example of this is Franchising.
One brand, one image, one system, one service philosophy...
Don't be fooled. One controller means one man calls the shots!
I believe that Franchises are a legalized form of slavery in the developed world. Masters, as they are aptly called, order its subordinates around like a genie in a bottle. "Your wish is my command" is the motto of many franchisees as they are forced to comply with constant demands - whatever, whenever, and for whatever reason - with little consideration for their costs. These legitimate schemes use the sales concept of marketing because a holistic approach would mean that they would need to consider the needs of parties beyond themselves. They setup supply chain silos and integrative marketing systems that facilitate purchases from exclusive 'authorized' suppliers which the franchisor just so happens to have a vested interest in. So they reap the rewards of derived demand, at the expense of the little man.
Let's take a look at the four P's of marketing now:
PRICE
Ironically, Masters impose a system of 'loyalty' payments that does not guarantee a profit for its franchisees. Any submission to increase prices is severely criticized and scrutinized as the franchisor has little to gain by inflating the price point - he's already made his money, so forget about anyone else. Too bad about your overheads and lack of profit, cut the staff and you need to work more hours. It also makes you wonder how the competition is surviving when there are so many points of parity. Inevitably, there will be a break point between price and loyalty.
PLACE
The carefully worded and completely biased contract between Franchisor and (Sub)Franchisee defines the location as 'Territory'. So you'd think you were safe, until the Franchisor opens another store right next to yours with no consideration to the effect on your sales, as his sales are relatively inelastic.
PROMOTION
Whow, now here's where they let the cat loose! Masters get franchisees to spend mega dollars on upgrading stores because they need a different colour of paint, a curve instead of a straight line, a special glowing light in the window that can only be supplied by XYZ company - who happens to offer the Master attractive rebates. And this is all in the name of market positioning. Or how about Advertising funds that disappear, are unaudited and may be linked to photos of the Master taking a ride on the latest yacht?
PRODUCT (Including SERVICE)
This is the Franchise's saving grace. And this is what ordinary people are willing to pay for - superior quality and a value proposition like no other in the marketplace. It is this belief that leads to the misconception that Franchises are a good idea. Just being a retail customer is the best option.
Sooner or later the penny drops and decent, hardworking citizens will wake up to the fact that there is no ethical value in the Franchise system. It is all about making the one at the top richer, with no regard for plebs. And if franchisees kick up a fuss with government authorities and control boards (toothless wonders anyway) the Master will just get rid of them by not renewing their agreement to continue operations, not allowing them to sell or finding ways to issue breaches to commandeer their business. The carnage is enormous, including suicide, huge legal bills, neverending debt and devastating financial loss of hard-earned nest eggs and payouts from previous employments.
If you are thinking of buying a franchise - BUYER BEWARE !!!!!!!!!!
One brand, one image, one system, one service philosophy...
Don't be fooled. One controller means one man calls the shots!
I believe that Franchises are a legalized form of slavery in the developed world. Masters, as they are aptly called, order its subordinates around like a genie in a bottle. "Your wish is my command" is the motto of many franchisees as they are forced to comply with constant demands - whatever, whenever, and for whatever reason - with little consideration for their costs. These legitimate schemes use the sales concept of marketing because a holistic approach would mean that they would need to consider the needs of parties beyond themselves. They setup supply chain silos and integrative marketing systems that facilitate purchases from exclusive 'authorized' suppliers which the franchisor just so happens to have a vested interest in. So they reap the rewards of derived demand, at the expense of the little man.
Let's take a look at the four P's of marketing now:
PRICE
Ironically, Masters impose a system of 'loyalty' payments that does not guarantee a profit for its franchisees. Any submission to increase prices is severely criticized and scrutinized as the franchisor has little to gain by inflating the price point - he's already made his money, so forget about anyone else. Too bad about your overheads and lack of profit, cut the staff and you need to work more hours. It also makes you wonder how the competition is surviving when there are so many points of parity. Inevitably, there will be a break point between price and loyalty.
PLACE
The carefully worded and completely biased contract between Franchisor and (Sub)Franchisee defines the location as 'Territory'. So you'd think you were safe, until the Franchisor opens another store right next to yours with no consideration to the effect on your sales, as his sales are relatively inelastic.
PROMOTION
Whow, now here's where they let the cat loose! Masters get franchisees to spend mega dollars on upgrading stores because they need a different colour of paint, a curve instead of a straight line, a special glowing light in the window that can only be supplied by XYZ company - who happens to offer the Master attractive rebates. And this is all in the name of market positioning. Or how about Advertising funds that disappear, are unaudited and may be linked to photos of the Master taking a ride on the latest yacht?
PRODUCT (Including SERVICE)
This is the Franchise's saving grace. And this is what ordinary people are willing to pay for - superior quality and a value proposition like no other in the marketplace. It is this belief that leads to the misconception that Franchises are a good idea. Just being a retail customer is the best option.
Sooner or later the penny drops and decent, hardworking citizens will wake up to the fact that there is no ethical value in the Franchise system. It is all about making the one at the top richer, with no regard for plebs. And if franchisees kick up a fuss with government authorities and control boards (toothless wonders anyway) the Master will just get rid of them by not renewing their agreement to continue operations, not allowing them to sell or finding ways to issue breaches to commandeer their business. The carnage is enormous, including suicide, huge legal bills, neverending debt and devastating financial loss of hard-earned nest eggs and payouts from previous employments.
If you are thinking of buying a franchise - BUYER BEWARE !!!!!!!!!!
Sunday 8 July 2012
Current example of differentiation in the marketplace
Competition is fighting back the Supermarket Warlords - questioning who we can trust. SME's supporting each other. Everyone likes the benefit of low cost, but can consumers be convinced to pay more for 'permeate free'?
Pura is educating consumers of the benefits of this 'new' attribute using the Marketing-Mix of social media, internet and TV. Their website has a section dedicated to it. They are using endorsement by Australian Champion Barista, David Maikin, to help build the brand. He suggests that coffee is better with permeate free milk.
The jury is out...
Source: First Froots E-newsletter 8th July 2012
Pura is educating consumers of the benefits of this 'new' attribute using the Marketing-Mix of social media, internet and TV. Their website has a section dedicated to it. They are using endorsement by Australian Champion Barista, David Maikin, to help build the brand. He suggests that coffee is better with permeate free milk.
The jury is out...
Source: First Froots E-newsletter 8th July 2012
________________________________________________________________________
When is Milk Really Milk?
Pura Milk have got on to the front foot in the milk price war and have launched an advertising campaign highlighting the fact that their range of white milk is free of permeates, which is a watery waste product from the manufacture of cheese and butter. One does not have to be too smart to allege that the supermarket home brands may well contain permeates.
The addition of permeates in milk does not have to be included on the labeling which is bad news for consumers. Although permeate has no known health issues, it is added back into milk to reduce costs. Surely the consumer has a right to know what is in the food they buy?
We applaud Pura for making this stand.
May we also highlight that no milk sold by First Froots has permeates added.
Other brands available besides Pura are:-
Fleurieu
Paris Creek
Moo View Raw Milk
Monday 25 June 2012
B2B - the meat in the sandwich
This week we take a look at the point of difference in marketing to business compared to marketing to consumers (end-users).
Additional players involved in the decision-making process include approvers and gatekeepers. Approvers can override the deciders and buyers. Gatekeepers can stop suppliers from getting their foot inside the door. Some people take on several roles at the same time. Purchasing Managers can be gatekeepers, influencers and buyers. Users are often the same as initiators because they raise attention to a recognised need. Suppliers should identify all the participants in the buying center and assess their level of influence and evaluation criteria. Knowing the most appropriate and preferred way to communicate to the buyer is also a key to success. There may be hidden buying influences that need to be discovered.
I like the way that Frederick E. Webster Jnr says that ultimately it is an individual who makes the purchasing decision. So we see that there is another agenda, a personal one, that co-exists besides consideration for the overall business strategy and satisfying the end-user's needs. There may be a window open for corruption and opportunism, especially in some cultures. However, people also like doing business with people they like!
B2B relationships become the meat in the sandwich that, if working collaboratively, can satisfy the consumer's need for their mutal benefit.
It would be interesting to analyse the different model approaches offered up by the Marketing faculty and compare them with views from psychologists and philosphers about human nature and building long-term relationships in general. The word 'trust' comes up a lot... and, just like we see mixed opinions about the meaning of 'loyalty', perhaps there are quite a few interpretations of what this means and how important it is to the Marketing Manager.
Additional players involved in the decision-making process include approvers and gatekeepers. Approvers can override the deciders and buyers. Gatekeepers can stop suppliers from getting their foot inside the door. Some people take on several roles at the same time. Purchasing Managers can be gatekeepers, influencers and buyers. Users are often the same as initiators because they raise attention to a recognised need. Suppliers should identify all the participants in the buying center and assess their level of influence and evaluation criteria. Knowing the most appropriate and preferred way to communicate to the buyer is also a key to success. There may be hidden buying influences that need to be discovered.
I like the way that Frederick E. Webster Jnr says that ultimately it is an individual who makes the purchasing decision. So we see that there is another agenda, a personal one, that co-exists besides consideration for the overall business strategy and satisfying the end-user's needs. There may be a window open for corruption and opportunism, especially in some cultures. However, people also like doing business with people they like!
B2B relationships become the meat in the sandwich that, if working collaboratively, can satisfy the consumer's need for their mutal benefit.
It would be interesting to analyse the different model approaches offered up by the Marketing faculty and compare them with views from psychologists and philosphers about human nature and building long-term relationships in general. The word 'trust' comes up a lot... and, just like we see mixed opinions about the meaning of 'loyalty', perhaps there are quite a few interpretations of what this means and how important it is to the Marketing Manager.
Saturday 16 June 2012
Session 4: Long-term Relationships
I have adapted the text from Chapter 7 (Kotler Keller, 2012) into my own words for Session 4 as follows:
Companies can increase customer perceived value (CPV) by increasing total customer benefit and decreasing total customer cost. An increase in total customer benefit can be achieved by improving functionality, efficiency or the customer's opinion of the company's promise. A decrease in total customer cost can be done two ways, by reducing the buyer's non-monetary costs like time and energy, or by reducing the products money cost, for example saving on running costs and repairs. The value proposition is a promise that doesn't necessarily affect the company's profits.
Satisfaction is linked to loyalty. Therefore marketing encourages the 80-20 rule of ditching unprofitable customers with low Customer Lifetime Value (CLV) and building long-term profitable customers. Focus should be switched to attract and keep loyal customers. This is enhanced by effective customer profitability analysis using the ABC accounting technique to avoid misallocation of marketing effort - putting money where the best returns are. The marketing funnel identifies blockages in building loyalty within the potential target market and facilitates reduction in defection by using strategies such as up-selling, cross-selling, special treatment and subsidizing direct and indirect network advantages from "free" customers. Behavioural segmentation uses the marketing funnel to develop campaigns to convert buyer-readiness stage to the next level. Companies also try to get customers hooked by locking them into rewards programs and software advantages that would be costly to exit. Marketers can learn from the four loyalty statuses (hard-core loyals, split loyals, shifting loyals and switchers) to study strengths and weaknesses.
Customer Relationship Management (CRM) and data mining provides great information about individual needs, trends and segments. However, privacy issues relating to observing online behaviour are prompting government regulators to question the need for legislation in this area.
To identify which customers to attract and retain, companies look at market segments to recognize customer differences. In addition to the usual variables of geographic, demographic, psychographic and behavioural segmentation, business markets also address operating variables, purchasing approaches, situational factors and personal characteristics of the buyer. Roger Best has devised a 7-step approach to needs-based market segmentation. Segments must be measurable, substantial, accessible, differentiable and actionable. Michael Porter's 5 Forces analyses the long-run attractiveness of a market segment.
I also enjoyed the 'cut loose' style review of our lecture with Dr Cullen Habel last week which debated the relevance of the 80-20 rule in business. Arguing its existence is beside the point; companies should build on their success by redirecting their ongoing marketing efforts to the most attractive market segments where the results speak for themselves, while taking care not to miss new opportunities (Question Marks). Guess it's another way of looking at the BCG matrix - getting rid of the dogs. Progressive organisations learn to identify the 'weak link' and take action. I'm not so sure that 'bad' customers should be given to our competitors though as some people would suggest...
In researching the definition of customer loyalty on-line, a good read was found in the 2009 blog trails by Don Peppers and Esteban Kolsky's experiment.
Companies can increase customer perceived value (CPV) by increasing total customer benefit and decreasing total customer cost. An increase in total customer benefit can be achieved by improving functionality, efficiency or the customer's opinion of the company's promise. A decrease in total customer cost can be done two ways, by reducing the buyer's non-monetary costs like time and energy, or by reducing the products money cost, for example saving on running costs and repairs. The value proposition is a promise that doesn't necessarily affect the company's profits.
Satisfaction is linked to loyalty. Therefore marketing encourages the 80-20 rule of ditching unprofitable customers with low Customer Lifetime Value (CLV) and building long-term profitable customers. Focus should be switched to attract and keep loyal customers. This is enhanced by effective customer profitability analysis using the ABC accounting technique to avoid misallocation of marketing effort - putting money where the best returns are. The marketing funnel identifies blockages in building loyalty within the potential target market and facilitates reduction in defection by using strategies such as up-selling, cross-selling, special treatment and subsidizing direct and indirect network advantages from "free" customers. Behavioural segmentation uses the marketing funnel to develop campaigns to convert buyer-readiness stage to the next level. Companies also try to get customers hooked by locking them into rewards programs and software advantages that would be costly to exit. Marketers can learn from the four loyalty statuses (hard-core loyals, split loyals, shifting loyals and switchers) to study strengths and weaknesses.
Customer Relationship Management (CRM) and data mining provides great information about individual needs, trends and segments. However, privacy issues relating to observing online behaviour are prompting government regulators to question the need for legislation in this area.
To identify which customers to attract and retain, companies look at market segments to recognize customer differences. In addition to the usual variables of geographic, demographic, psychographic and behavioural segmentation, business markets also address operating variables, purchasing approaches, situational factors and personal characteristics of the buyer. Roger Best has devised a 7-step approach to needs-based market segmentation. Segments must be measurable, substantial, accessible, differentiable and actionable. Michael Porter's 5 Forces analyses the long-run attractiveness of a market segment.
I also enjoyed the 'cut loose' style review of our lecture with Dr Cullen Habel last week which debated the relevance of the 80-20 rule in business. Arguing its existence is beside the point; companies should build on their success by redirecting their ongoing marketing efforts to the most attractive market segments where the results speak for themselves, while taking care not to miss new opportunities (Question Marks). Guess it's another way of looking at the BCG matrix - getting rid of the dogs. Progressive organisations learn to identify the 'weak link' and take action. I'm not so sure that 'bad' customers should be given to our competitors though as some people would suggest...
In researching the definition of customer loyalty on-line, a good read was found in the 2009 blog trails by Don Peppers and Esteban Kolsky's experiment.
Friday 8 June 2012
Session 3: Market Research targets the young online
My 10 year-old son is an avid follower of online product reviews so he could relate quite a lot to my latest readings about P&G online Market Research. It was a bedtime story with a difference and I was amazed at what he had to say. Maybe my son is developing the mind of a good Marketing Manager?
He thinks that people could make a lot of money by selling products that 'have special parts in it'. In saying that, he explained to me that viewers votes can help improve products to make them more saleable and appealing to customers. He admitted to me that he has voted on many, many toy unboxing reviews. "When new toys come out and you are the first one to put it on the internet, you will get lots of hits. People comment about how good and bad it is and also ask you questions like: 'Is it breakable?' 'How good does it work?'" or the best question in my son's opinion is: "What's it's best feature?" He also said, "Sometimes viewers say something is 'really cool' and 'awesome' because that will encourage customers to buy it. Maybe if you are a YOUTUBE partner then you will get paid for it?" Now where did he get that idea from?
Websites frequently visited by boys include: atamaii.com, Ebay, toywiz.com, amazon.com, youtube.com, hasbro.com, beybladebattles.com and toysrus.com. Sometimes there are links to see new games and toys. Viewers find it interesting to look at what other customers are saying and the reponses can be interactive. My son doesn't always agree with what people say about it. If a new product gets a bad review when it is launched in one country, say USA, then it can damage it's product launch in the next country even before it gets there. Similarly, customers can be so eager to get their hands on it that they are willing to pay extra money on international shipping to be one of the first to have it here. Young children are often visiting websites such as YOUTUBE to watch videos of new releases for toys and movies. For example, my son had seen nearly all the episodes of Ben10 Ultimate Alien, Beyblade Metal Fusion and Bakugan Battle Brawlers well before it came to Australia. We see here that the distance between idea and implementation is shrinking so much so that customers are becoming upset. Waiting too long can be risky as discussed by Elie Ofek and Luc Mathiew in the HBR article called, "Are you ignoring trends that could shake up your business?" Sometimes new products are sold out and superseded with a better model before the original product launch in another country. Technology can be a double edged sword if we can't work with it fast enough in the developed world.
So it is evident that the new generation of customers are using the internet to do their own market research before buying a new product or service. They are scrutinizing feedback from various sources to form calculated opinions and make decisions. With a sample of young online repondents that, according to Robosurveys, "tend to be more truthful when answering computers", the ability for organizations to collect accurate market research for their business is high. In fact, some time ago P&G's Chairman & CEO said, "Today we do the majority of our concept tests in 48 to 72 hours online at the fraction of the cost and with equal or higher reliability. That's the kind of power the Internet can bring." It may be a lot easier to capture the minds of the young but this raises serious moral concerns, especially for me as a mother.
Children are not 'qualified' customers because they don't usually have the ability to pay for the goods and services themselves. Yet children can greatly influence the decision maker who has the buying power. Are children simply being brainwashed? Are the core beliefs and values of the family unit under attack? Governments now recognise the link and are now trying to regulate the messages portrayed by smoking, drinking and fast food advertisements for example. This is probably not so much because it affects families, but because the health system is paying a high price for the unhealthy lifestyle that has been promoted.
In our course textbook, "A framework for marketing management" by Kotler Keller, we read about the sociocultural environment where marketers deliberately attract teens because they believe it will likely keep them as customers for life. Teenagers are highly impressionable. So how can I be sure that only secondary beliefs are going to being affected?
On the other hand, if the target market is middle-aged, they are unlikely to do on-line surveys, answer honestly and may be reactant people. So a good strategy to use for this type of customer is a sort of reverse psychology - double negative - using subliminal messages and implied meanings in communication as suggested by Emily Moyer-Guse and Robin L. Nabi. in HBR's Idea Watch, October 2010.
Different approaches are required for doing market research in various target markets. Not just the usual criteria of demographics, economic, sociocultural, natural, technological and politcal/legal environments are necessary but also understanding how consumers think and respond is a key factor in collecting reliable data.
He thinks that people could make a lot of money by selling products that 'have special parts in it'. In saying that, he explained to me that viewers votes can help improve products to make them more saleable and appealing to customers. He admitted to me that he has voted on many, many toy unboxing reviews. "When new toys come out and you are the first one to put it on the internet, you will get lots of hits. People comment about how good and bad it is and also ask you questions like: 'Is it breakable?' 'How good does it work?'" or the best question in my son's opinion is: "What's it's best feature?" He also said, "Sometimes viewers say something is 'really cool' and 'awesome' because that will encourage customers to buy it. Maybe if you are a YOUTUBE partner then you will get paid for it?" Now where did he get that idea from?
Websites frequently visited by boys include: atamaii.com, Ebay, toywiz.com, amazon.com, youtube.com, hasbro.com, beybladebattles.com and toysrus.com. Sometimes there are links to see new games and toys. Viewers find it interesting to look at what other customers are saying and the reponses can be interactive. My son doesn't always agree with what people say about it. If a new product gets a bad review when it is launched in one country, say USA, then it can damage it's product launch in the next country even before it gets there. Similarly, customers can be so eager to get their hands on it that they are willing to pay extra money on international shipping to be one of the first to have it here. Young children are often visiting websites such as YOUTUBE to watch videos of new releases for toys and movies. For example, my son had seen nearly all the episodes of Ben10 Ultimate Alien, Beyblade Metal Fusion and Bakugan Battle Brawlers well before it came to Australia. We see here that the distance between idea and implementation is shrinking so much so that customers are becoming upset. Waiting too long can be risky as discussed by Elie Ofek and Luc Mathiew in the HBR article called, "Are you ignoring trends that could shake up your business?" Sometimes new products are sold out and superseded with a better model before the original product launch in another country. Technology can be a double edged sword if we can't work with it fast enough in the developed world.
So it is evident that the new generation of customers are using the internet to do their own market research before buying a new product or service. They are scrutinizing feedback from various sources to form calculated opinions and make decisions. With a sample of young online repondents that, according to Robosurveys, "tend to be more truthful when answering computers", the ability for organizations to collect accurate market research for their business is high. In fact, some time ago P&G's Chairman & CEO said, "Today we do the majority of our concept tests in 48 to 72 hours online at the fraction of the cost and with equal or higher reliability. That's the kind of power the Internet can bring." It may be a lot easier to capture the minds of the young but this raises serious moral concerns, especially for me as a mother.
Children are not 'qualified' customers because they don't usually have the ability to pay for the goods and services themselves. Yet children can greatly influence the decision maker who has the buying power. Are children simply being brainwashed? Are the core beliefs and values of the family unit under attack? Governments now recognise the link and are now trying to regulate the messages portrayed by smoking, drinking and fast food advertisements for example. This is probably not so much because it affects families, but because the health system is paying a high price for the unhealthy lifestyle that has been promoted.
In our course textbook, "A framework for marketing management" by Kotler Keller, we read about the sociocultural environment where marketers deliberately attract teens because they believe it will likely keep them as customers for life. Teenagers are highly impressionable. So how can I be sure that only secondary beliefs are going to being affected?
On the other hand, if the target market is middle-aged, they are unlikely to do on-line surveys, answer honestly and may be reactant people. So a good strategy to use for this type of customer is a sort of reverse psychology - double negative - using subliminal messages and implied meanings in communication as suggested by Emily Moyer-Guse and Robin L. Nabi. in HBR's Idea Watch, October 2010.
Different approaches are required for doing market research in various target markets. Not just the usual criteria of demographics, economic, sociocultural, natural, technological and politcal/legal environments are necessary but also understanding how consumers think and respond is a key factor in collecting reliable data.
Tuesday 29 May 2012
Session 2: Co-Creation and more
As I was reading the article, "Building the Co-Creative Enterprise" by Venkat Ramaswamy and Francis Gouillart I found myself being slowly persuaded to agree with the notion that everyone needs to put their 2 bobs worth in to build the best marketing approach, to succeed in business and get the ultimate win-win scenario happening.
It makes the company out to be a do-gooder, ticking all the boxes of customer satisfaction, job satisfaction, getting different levels within an organisation to engage with each other to produce a terrific result that everyone is happy with. We are told that co-creation allows outsiders to contribute perhaps the most innovative, unprejudiced ideas that are likely to lead to increasing the pie and keeping things fresh. Throwing away conventional thinking about business design and strategy takes our focus off ourselves (the company), ignoring the obvious courses of action, and to look elsewhere for differentiation that will last. So we should end up with a new business model (throw away the SWOT & Maslow hey!?) that has a competitive edge which cannot be easily duplicated. It sounds too good to be true...
Unfortunately it was the wording of the final paragraphs that brought me back to reality and stopped me from totally embracing this theory. According to this same article, the New Paradigm of co-creation requires a 'new humility' and 'a democratic approach'. So, does it all boil down to Politics? Is democracy the perfect 'one-size-fits-all'? So what's wrong with taking the communist, socialist, autocratic or capitalist approach? Who could imagine their Boss as a Dictator? Should we be ruled by minority groups - the ones who speak the loudest, and spend most of their time and energy lobbying the Government. The democratic framework still needs boundaries.
I am also reminded of a time when I was about 21 years old. I was invited to attend an Advertising brainstorm for an unknown marketing campaign. Everyone was given $20 for their thoughts. The product was probably something like Nivea skincare, but they wouldn't say. We were all asked our opinion on fancy packaging versus recycled eco-friendly plain wraps. I couldn't believe what I was hearing as one-by-one the questions were queued to suggest that we should all go with the environmentally friendly packaging. Everyone played the game except me. I was the only one who had the guts to honestly say that I love to receive things wrapped up in fancy packaging. It was a wonderful experience that the rest of them were denying. I felt that peer pressure had definitely moulded the politically correct response to this marketing problem.
How can there be no influence in creative thinking? I also read about this type of corruption in the Case Study "Blogging the Way to Victory" by Dr Steve Goodman (2006) where we learn that enterprises such as McDonalds used fake blogs ('flogs') to position themselves in the marketplace.
Maybe the 'humility' they are talking about is the replacement of one's own individual value system - your gut feeling - with someone else's. But this might be the driving force of a non-democratic society. Maybe it is the Boss's leadership style that attracts customers. Maybe he is the vision personified. If that is the case, who can replicate that?
(By the way I was intrigued by entreprenneur Sir Richard Branson's recent comments which questioned why it still takes so long for students to qualify at University in this modern age, suggesting that it was a waste of time)
It makes the company out to be a do-gooder, ticking all the boxes of customer satisfaction, job satisfaction, getting different levels within an organisation to engage with each other to produce a terrific result that everyone is happy with. We are told that co-creation allows outsiders to contribute perhaps the most innovative, unprejudiced ideas that are likely to lead to increasing the pie and keeping things fresh. Throwing away conventional thinking about business design and strategy takes our focus off ourselves (the company), ignoring the obvious courses of action, and to look elsewhere for differentiation that will last. So we should end up with a new business model (throw away the SWOT & Maslow hey!?) that has a competitive edge which cannot be easily duplicated. It sounds too good to be true...
Unfortunately it was the wording of the final paragraphs that brought me back to reality and stopped me from totally embracing this theory. According to this same article, the New Paradigm of co-creation requires a 'new humility' and 'a democratic approach'. So, does it all boil down to Politics? Is democracy the perfect 'one-size-fits-all'? So what's wrong with taking the communist, socialist, autocratic or capitalist approach? Who could imagine their Boss as a Dictator? Should we be ruled by minority groups - the ones who speak the loudest, and spend most of their time and energy lobbying the Government. The democratic framework still needs boundaries.
I am also reminded of a time when I was about 21 years old. I was invited to attend an Advertising brainstorm for an unknown marketing campaign. Everyone was given $20 for their thoughts. The product was probably something like Nivea skincare, but they wouldn't say. We were all asked our opinion on fancy packaging versus recycled eco-friendly plain wraps. I couldn't believe what I was hearing as one-by-one the questions were queued to suggest that we should all go with the environmentally friendly packaging. Everyone played the game except me. I was the only one who had the guts to honestly say that I love to receive things wrapped up in fancy packaging. It was a wonderful experience that the rest of them were denying. I felt that peer pressure had definitely moulded the politically correct response to this marketing problem.
How can there be no influence in creative thinking? I also read about this type of corruption in the Case Study "Blogging the Way to Victory" by Dr Steve Goodman (2006) where we learn that enterprises such as McDonalds used fake blogs ('flogs') to position themselves in the marketplace.
Maybe the 'humility' they are talking about is the replacement of one's own individual value system - your gut feeling - with someone else's. But this might be the driving force of a non-democratic society. Maybe it is the Boss's leadership style that attracts customers. Maybe he is the vision personified. If that is the case, who can replicate that?
(By the way I was intrigued by entreprenneur Sir Richard Branson's recent comments which questioned why it still takes so long for students to qualify at University in this modern age, suggesting that it was a waste of time)
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