Ic3-blue Train Manifesto

“Marketing For The Rest Of Us” Series The Blue Train Manifesto

July 2004

The Blue Train Manifesto

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Welcome to a journey across the world of marketing. In this short document we examine why many companies, especially small- and medium-sized enterprises (SMEs), have weak to abysmal market positions. In the 1920s, the Blue Train (le Train Bleu) crossed France from Calais to the Italian border with more comfort and in barely more time than the combination of Eurostar and TGV achieve today (to cross Paris, the Train Bleu’s passengers stayed in the same carriage while, today, you have to schlep your luggage by taxi or metro from Gare du Nord to Gare de Lyon). - - - My point here is simply that today’s top speed is not necessarily a panacea.

Our “Marketing for the rest of us” series of publications is aimed at simplifying the marketing theories and concepts to a form that enables anybody with common sense to get started. However, while I consider simplicity as an important virtue, I am also adopting Albert Einstein’s position: “Things should be made as simple as possible, but not any simpler”.

Since I started IC3 Marketing in 1997, I have met with managing directors (MDs) and chief executive officers (CEOs) of dozens of companies, large and small, in many industry sectors. During this journey that took me from France to the UK and the USA I took some notes on the marketing ‘health’ of businesses in many different situations. Here are a few observations that I gathered throughout all these years and that I would like to share with you.

The Blue Train Manifesto [Manifesto: a written statement declaring publicly the views of its issuer]

MDs and CEOs of SMEs, oyez … It is not possible to step in the same river twice

1.

Every business is distinct from all the others. So, every marketing challenge has very specific elements. That’s why all the books in the world have limited value in helping companies’ owners and managers to solve the problems they meet on a day-to-day basis. Most marketing books have a consumer product slant and their theories and tips are an overkill in most actual situations. Many businesses and most SMEs require only the implementation of a few focused, well thought out programmes to be successful. In such cases, sophisticated marketing theories are a waste of time.

2.

Marketing is rather simple. The objective of marketing is to attract new customers and to keep them. I define marketing as the art of communicating with people to generate business. I think it’s as simple as that.

3.

Marketing is about growth. In periods of slowdown, many managers reduce marketing expenses first. But if you cut too much, you stop reaching your customers and you shouldn’t be surprised if they forget you. Marketing is an investment in future sales. The challenge is to make this investment smarter and not necessarily smaller.

4.

It takes at least two different people to ‘do’ good marketing. At the helm of your business, you are ‘in the box’ with an insider view of your company’s challenges. To see the whole picture, you need the external point of view of a business partner who is ‘out of the box’. Collaborating with a professional who looks at your business from outside, with a customer perspective, brings the necessary balance and another combination of realism, experience and cynicism (OK, I’m aware I’m preaching for my cause but this is the only dogma I’m asking you to accept).

Heraclitus

Marketing is the art of communicating with people to generate business

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The Blue Train Manifesto

5.

Beware of specialist agencies and consultancies. This seems contradictory with the previous point, but I have observed that many consultants, agencies and suppliers of marketing tools are victims of what I call the hammer syndrome: “for anybody with a hammer, anything looks like a nail.” Such individuals or firms tend to see your challenges from inside their own box and to solve all problems with their speciality tools/skills They also tend to overcomplicate issues, confuse you with inappropriate concepts and to become the source of a lot of nonsense. A good consultant has to search for what is right in the context of your business.

6.

Most SMEs don’t need a permanent marketing director. Many marketing tasks are ‘one-offs’ that you need to perform once or very occasionally. Examples include: stationary design, website design, product brief template and so on. Many tasks should also be outsourced to specialists, keeping the previous point in mind, after you have developed a plan and defined your priorities. Examples of tasks to outsource: visual design (logo, business card layout, website banner), public relations programmes, direct marketing campaigns, etc. You can delegate some marketing tasks to your key managers (e.g. make the sales director responsible for telemarketing) but, overall, as MD/CEO of an SME, you are the marketing boss because that’s the heart of your business.

7.

Marketing has to be pervasive throughout your organisation. If you are really serious about customer focus, all of your employees have to think and act like ‘marketers’. Marketing is a state of mind. If you have a marketing department, blow it up and integrate its components (e.g. product management, market communications, channel support, customer support, etc.) with other functions such as product development, distribution and sales.

8.

You need to build on solid foundations. Before investing in marketing programmes you have to make sure that they start from a solid basis. The marketing foundations are an integral part of the business foundations and their main elements are described in the following points.

9.

Your #1 enemy is indifference. In a global cluttered market generating avalanches of information in many forms, you need to stand out to attract your customers’ attention. Your overall communication (message) needs to shine in its form (look) and in its content (meaning).

For anybody with a hammer, anything looks like a nail

Marketing Organisation

Like the Cheshire cat, marketing will disappear with a smile

Marketing Foundations

Graphic Charter

10. You need a strong visual identity. You have to clearly stand out with an attractive logo and with professional marketing materials. You have to define basic rules concerning the consistent use of colour, typefaces, banners, templates and so on in your stationary, promotional materials, website and other communication pieces.

Company Message

11. You need a consistent verbal identity. [verbal: by means of words - oral: using speech]. You have to clearly communicate who you are and what you do as a company. This can take the form of a one-page document (e.g. ‘about us’ in your website) and of one-paragraph summaries used in professional directories, at the end of press releases, at the back of business cards and in 30 … 60second speeches you deliver at networking breakfasts. 12. Your #2 enemy is confusion… and simplicity is a good weapon. There are many ways to confuse the people you address in the market. One is to use too many technical terms, three-letter abbreviations, jargon, and other smokescreen effects. Another is to compose pompous sentences using conventional industry gobbledygook, resulting into hollow statements Markets consist of human beings. Never forget about the power of simplicity.

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The Blue Train Manifesto

Differentiation

13. Your #3 enemy is imitation Ä you need to be different. If you are not different, it’s difficult to stand out in a crowd. Differentiation (in marketing speak) is a main way to be noticed in the marketplace. You have to explain clearly what sets you apart. You can (and should) be different as a company and through your products and services. Finally, your difference has to be expressed in terms that matter to your customers.

Positioning

14. Aim at occupying a unique position in the mind of your customers. A clear differentiation is the key to successful positioning. In marketing, positioning is the act and the art of imprinting a unique, credible and memorable message in the mind of the customer and to consistently work at defending and reinforcing this position. This takes time but, once you are ‘there’, it’s difficult to dislodge you. Example: Volvo occupies the ‘safety’ position in the mind of most of us and all their new models aim at reinforcing this bastion.

Message

15. Translate your positioning into a powerful message that you can use as tagline in your advertising, as core of your ‘elevator pitch’ and as main theme of your marketing communications (the elevator pitch is a 30-second summary of your overall business proposition, the pitch you will deliver to the boss of your largest potential customer to get an appointment when you share an elevator ride with him/her). 16. Humanise your message. A good story (e.g. a case study) is more powerful than a sophisticated theory. Reduce complexity to a good metaphor (e.g. black hole). Leverage the power of words (e.g. desktop publishing). Use attractive names (e.g. ’sushi’ sounds better that ’dead fish wrapped in cold rice’). And, above all, show that you understand your customers; write about them; write to them.

Your enemy #1 is indifference

Product Message

Your enemy #2 is confusion

17. Remember AIDA. In marketing, AIDA stands for Attention, Interest, Desire, Action. First, you need to catch the customers’ attention with a visible, different and memorable message or programme. Secondly you have to raise their interest with something that’s simple, meaningful and relevant to them. Then you need to create the desire to buy your product or service and to decide in your favour (feeling, emotion, impulse). Finally you have to facilitate and control the action from initial order up to final payment. 18. Simplify your product message. Most companies are weak at communicating about their products and/or services; at telling in simple terms what the product does, whom it addresses, and why the customer should buy it (benefits). They tend to flood us with endless lists mixing specifications, features, technologies, applications, advantages, benefits with the proverbial kitchen sink. They produce indiscriminate documents addressing, at the same time, technical people (recommenders), business people (decision makers), resellers, partners and opinion makers. Of course this creates confusion (#2 enemy, remember). The challenge here is to pick a maximum of three differentiating features, to express their benefits and value for the customer, and to craft an attractive and meaningful positioning message about the product. 19. Don’t market a technology in search of a problem. Your product message has to address your customer’s problem and describe the benefits of the solution you offer instead of focusing too much on the technology, features and other technical prowess. 20. Reduce the fear of the unknown in the mind of your prospects. Develop a ‘customer experience’ (as in ‘shopping experience’) document. Describe, in simple words, what happens from the moment a prospect gets in contact with your company to the time your service is completed or your product no longer used. More generally, make it easy and comfortable for your customers to deal with you and to use your products and services.

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The Blue Train Manifesto

Marketing Strategy

21. Know thy market(s). Understand who are your main potential customers; what are their main problems and challenges; what they need and what they want; their interests and values; and, therefore, what position your company and/or product can occupy in their mind. Maintain a relentless customer focus. 22. Know thy competitors. Determine who they are and analyse their relative strengths and weaknesses; their current and potential threats; and, therefore, the opportunities to do something better and different. Try to talk to some of them regularly. 23. Your #3 enemy is imitation Ä Don’t fall into the trap of me-too-ism, the shameful imitation of your competitors with little, if any, meaningful innovation and difference. Differentiate on at least one point that is meaningful to your customers and, above all, ... 24. Avoid price wars. This is the worst form of me-too-ism. This leads you to repeated price promotions, permanent sales, intricate tariffs (e.g. wireless telephony services) and knee-jerk reactions to competitive moves. This often drives to zero the profits of an entire industry sector. Price wars strangle you sooner or later. Any competitor can undercut you. Only large companies like Asda in the UK, Walmart in the US and Carrefour in France can afford competing with the lowest prices. For most companies, pricing is not the right differentiator. 25. The right price is what the customer is ready to pay. (Pricing doesn’t obey logical rules). Sell value (quality, convenience, design, … your experience). Position your product or service as high as possible on the value ladder (coffee as customer experiences - think Starbuck - has much more value than coffee as a commodity).

Marketing Plan

26. Make a plan. If you don’t have a plan for reaching and serving your customers, you have no business. Determine your priority targets in terms of ‘ideal’ customers and of means to successfully reach them to close a sale. Concentrate time and money on a few well crafted marketing programmes. 27. Beware of planning fallacies. The value of planning is in the thinking, not in the numbers. Beware of experts: ask stupid questions. Beware of focus groups: they focus on today and don’t reflect individual behaviour. Beware of what you think you remember. 28. Plan for several possible futures. Develop scenarios. Use forecasting only for PR purposes.

Execution

29.

The devil is in the details --- The next few points address a few of the execution details - just a few - as very general remarks. Addressing all of them would produce yet another difficult to digest marketing book where 80% of the content wouldn’t be relevant to your business!

30. Fine-tune your distribution channels. Before gaining loyalty from your customers, you need to provide tip-top satisfaction. 31. Make sure you keep your best customers. Meet your promises (and the promises of your brand). Advertise your successes (few customers can tell when a product/service is good but all can tell when it’s bad). Satisfaction = delivery - expectation. Satisfaction vanishes quickly: keep communicating. 32. Synchronise your communication channels. Markets are conversations. A good customer relationship requires as much listening as ‘broadcasting’ or oneto-one direct marketing. 33. Polish your website. It has enormous implications for your business. Neglecting your website is committing commercial suicide. It is the gateway to your brand, products and services —even if you don’t sell online. A useless website suggests a useless company, and a rival is only a mouse-click away.

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The Blue Train Manifesto

34. Beware of fads. Don’t use new marketing technologies because they are fashionable. For example, a simple spreadsheet is often better to manage your sales ‘pipeline’ than a sophisticated sales management software. You may spend more time managing the software than managing your sales. 35. Market communication - new markets: use enthusiasts and innovators as ‘prosumers’ (proactive consumers). Publish technical white papers. Attend or organise seminars and conferences. Invest into internet placed, pay-per-click ads in specific market niches. Consider very focused, time-limited PR events. 36. Market communication - growing markets: educate potential early adopters with application white papers and infomercials. Then promote your product/service with product briefs and case studies. Keep investing into placed, pay-per-click ads and other internet-based techniques in specific market niches. Invest into focused PR projects. 37. Market communication - mature markets: promote your brand with an increasing mix of ’traditional’ advertising (press, radio, TV - media selection in function of your budget and of the type of product/service you offer). Use PR more regularly. 38. Plan for the next step. Understand your product/service lifecycle and look for new ideas that you can successfully implement (i.e. innovate) as an encore. Don’t talk too much to your customers because they’ll end up getting what they want, not what they need.

39. Don’t get caught into the ‘customer focus’ trap. A quasi religious customer ‘centricity’ could let you miss significant market opportunities (for example, if Apple had listened to its customers in 1982 it would not have created the Macintosh). 40. Pay maniacal attention to human factors. Technologists and product / service designers often forget that customers are ‘normal’ human beings who are easily frustrated with bad design (hard-to-use products), unnecessary features (how much of your word processor can you use?) and technology-centric services (e.g. automated call centres). A good product or service has to be usable, useful and complete.

Final remarks

41. Be persistent. Starting or growing a business is often an experiment. Thomas Edison knew 1800 ways how not to make a light bulb. Don’t necessarily expect a home run in the first inning. But don’t be stubborn either. 42. Open your mind and beware of what you think you remember. Don’t let opinions turn into rigid convictions and freeze into dogma. Don’t have blind faith in market numbers. Beware of over-generalisation; don’t let a tree hide the forest. 43. Don’t wait for perfection. Execute as soon as possible. Move quickly. Learn from your mistakes. Start again … being aware that “man is the only animal that stumbles twice on the same stone”.

Change is inevitable, except from a vending machine

44. Be flexible. Change is inevitable. Market conditions can change very rapidly. Accept uncertainty. A good strategist is a skipper who can quickly adapt to sea change while maintaining the overall direction. 45. Don’t underestimate people’s resistance to change. Most people, customers, employees, partners hate change. Changing human behaviour always takes more time than expected. 46. Every business is distinct from all the others. As mentioned in point 1, the solution to your problem is not necessarily in a book. Trust your intuition and use common sense (or the basic laws of physics). Avoid complexity whenever you can. Don’t underestimate the power of simplicity. 47. The journey is the reward.

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The Blue Train Manifesto

Conclusion

The MD/CEO’s enemies in the marketing domain Rather than a verbose conclusion … remember who are your enemies: 1. 2. 3. 4.

Indifference - You must stand out to attract attention Confusion - Things should be made as simple as possible Imitation - To stand out, you need to be different Yourself? - Trust your intuition and use common sense

… and who are your friends: 1. 2. 3. 4.

Passion - Focus on and do what you do best Simplicity - A powerful weapon against many ailments Differentiation - To stand out, you can’t look like your competitors A business partner - With an external point of view.

Henri Aebischer Founder & CEO IC3 marketing www.ic3marketing.com

July 2004

PS

The title of this manifesto is a wink at The Cluetrain Manifesto that was first published in 2000 and that you can visit at www.cluetrain.com. My manifesto quotes its first two theses: Markets are conversations Markets consist of human beings, not demographic sectors

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