Conducting a Marketing Physical To Ensure Brand Health


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Conducting a Marketing Physical To Ensure Brand Health

In-HOWse Designer Conference
Austin, TX - Sept. 10, 2007

It's time to give your business a marketing physical. This may sound strange, but it's just like going to your own doctor and getting a physical for yourself. The doc takes your vital signs, asks probing questions, and conducts a few key exams. You learn what may be affecting your health, and then you adjust your day-to-day life based on the results in an effort to ward off serious illnesses. Why not do the same for your brand or business? John shows you how to conduct your marketing physical to diagnose and treat common marketing ailments like anemic sales, poor brand complexion and marketing obesity.

John Moore, marketing medic
BRAND AUTOPSY Marketing Practice

Published in: Business, News & Politics
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Conducting a Marketing Physical To Ensure Brand Health

  1. 1. Conducting a Marketing Physical John Moore
  2. 2. This presentation was delivered on Monday, Sept. 10, 2007
  3. 3. Conducting a Marketing Physical John Moore
  4. 7. Ah
  5. 8. Ah Ah-Ha
  6. 9. Healthy brands grow. Unhealthy brands wither.
  7. 10. Brands are more than marketing strategies. They are living organisms.
  8. 11. Conducting a Marketing Physical  Business Anatomy 101  Basic Vital Signs  Leading Causes of Brand Demise  The Marketing Physical  One Final Thought  Q&A
  9. 12. Hippocratic Oath
  10. 13. Marketing Hippocratic Oath As marketing professionals, we do not treat a tactical marketing disease, nor a strategic marketing disease …
  11. 14. … but rather a sick brand, whose illness may affect the business’s customers and economic stability. Marketing Hippocratic Oath
  12. 15. Our responsibility includes these related problems, if we are to care adequately for the sick brand. Marketing Hippocratic Oath
  13. 16. We pledge to prevent marketing diseases whenever we can, for prevention is preferable to demise. Marketing Hippocratic Oath
  14. 17. Business Anatomy 101
  15. 18. Human Anatomy
  16. 19. Human Anatomy Skeleton System
  17. 20. Human Anatomy Lungs innovation creativity
  18. 21. Human Anatomy Heart NO HEART no passion = poor work BIG HEART passion = quality work
  19. 22. Human Anatomy Eyes/Ears <ul><li>Near-sighted </li></ul><ul><li>see close-up </li></ul><ul><li>tactical </li></ul><ul><li>reactionary </li></ul>
  20. 23. <ul><li>Near-sighted </li></ul><ul><li>see close-up </li></ul><ul><li>tactical </li></ul><ul><li>reactionary </li></ul>
  21. 24. Human Anatomy Eyes/Ears <ul><li>Far-sighted </li></ul><ul><li>see far-away </li></ul><ul><li>futuristic </li></ul>
  22. 25. <ul><li>Far-sighted </li></ul><ul><li>solutions in search of problems </li></ul>
  23. 26. Brain think act learn create ideate dream
  24. 27. Human Anatomy Heart Eyes/Ears Brain Lungs Skeleton System
  25. 28. Vital Signs
  26. 29. Vital Signs Show a person is alive. Signs change with age, sex, weight, and exercise tolerance <ul><li>Vitals include: </li></ul><ul><li>heart rate </li></ul><ul><li>breathing rate </li></ul><ul><li>body temperature </li></ul><ul><li>blood pressure </li></ul>
  27. 30. Vital Signs Show how alive a business is. Signs change with age, category, customer base, and advertising tolerance <ul><li>Vitals include: </li></ul><ul><li>comp sales </li></ul><ul><li>comp transactions </li></ul><ul><li>average ticket </li></ul><ul><li>mktg budget size </li></ul><ul><li>brand age </li></ul>
  28. 31. Vital Signs Comp Sales Must surpass the rate of inflation. If not, the brand is dying, not growing.
  29. 32. Vital Signs Comp Transactions If a business has more customers, then it is likely to be healthier. Marketing does its job when it drives MORE customers to buy.
  30. 33. Vital Signs Average Ticket Year-over-year increases in Average Ticket per customer signals a healthy brand.
  31. 34. Vital Signs Budgets Marketing budget as % of sales. (7%+ is unhealthy) Advertising budget as % of marketing budget. (50%+ means“Advertising Obesity”)
  32. 35. Vital Signs Brand Age Vital signs will differ between embryonic brands, adolescent brands, middle-aged brands, and geriatric brands.
  33. 36. Leading Causes of Brand Demise
  34. 37. Leading Causes of Brand Demise HEART DISEASE Typified by brands that lack a clear and compelling reason for existing <ul><li>Symptoms include: </li></ul><ul><li>declining sales </li></ul><ul><li>declining transactions </li></ul><ul><li>inability to attract and keep devoted customers </li></ul><ul><li>inability to attract and keep quality employees </li></ul>Case Studies
  35. 38. Leading Causes of Brand Demise STROKE Typified by failed business strategies <ul><li>Symptoms include: </li></ul><ul><li>ill-advised acquisitions </li></ul><ul><li>far-flung brand extensions </li></ul><ul><li>poorly defined brand portfolios </li></ul>Case Studies Cologne
  36. 39. Leading Causes of Brand Demise SCHIZOPHRENIA Typified by businesses being unfocused and having multiple personalities <ul><li>Symptoms include: </li></ul><ul><li>trying to be all things to all people </li></ul><ul><li>multiple brand personalities </li></ul>Case Studies Grand Hyatt Park Hyatt Hyatt Regency Hyatt Place Hyatt Summerfield Suites Hyatt at Home
  37. 40. Leading Causes of Brand Demise ALZHEIMER’S Typified by businesses suffering from short-term memory loss <ul><li>Symptoms include: </li></ul><ul><li>failure to maintain recaps and records of past promotions </li></ul><ul><li>repeating the same mistakes </li></ul>Case Studies
  38. 41. Leading Causes of Brand Demise DISCOUNT ADDICTION Typified by businesses relying on gimmicky discounts to drives sales <ul><li>Symptoms include: </li></ul><ul><li>Constant couponing </li></ul><ul><li>Employee Discounts </li></ul><ul><li>0% Financing </li></ul><ul><li>Buy 9, Get 1 Free </li></ul><ul><li>The “Half-Yearly Sale” that happens every month </li></ul>Case Studies
  39. 43. Conducting a Marketing Physical
  40. 44. Marketing Physical The HOPE Method H O P E istorical facts pinions erceptions xpectations
  41. 45. Marketing Physical Historical Facts H OPE <ul><li>Take Vital Signs </li></ul><ul><li>Comp Sales </li></ul><ul><li>Comp Transactions </li></ul><ul><li>Average Ticket </li></ul><ul><li>“ Custom Measures” </li></ul>1
  42. 46. Marketing Physical Historical Facts <ul><li>Take Vital Signs </li></ul><ul><li>comp sales </li></ul><ul><li>comp transactions </li></ul><ul><li>average ticket </li></ul><ul><li>custom measures </li></ul>1 H OPE Create a Marketing Dashboard
  43. 47. Marketing Physical Historical Facts <ul><li>List all “Serious”Business </li></ul><ul><li>Issues Affecting the Brand </li></ul><ul><li>Competition </li></ul><ul><li>Macroeconomic Stuff </li></ul><ul><li>Operational Issues </li></ul><ul><li>Etc… </li></ul>2 H OPE
  44. 48. Marketing Physical Historical Facts Topline Current and Planned Marketing Activities/Promotions 3 H OPE
  45. 49. Marketing Physical Opinions H O PE Review past recaps You do have recaps, right? You are conducting post mortems on promotions, right? (If not, you must.)
  46. 50. Marketing Physical Perceptions The more promoters, the greater a brand grows. HO P E 1 Measure Customer Referrals NET PROMOTER SCORE How likely are you to recommend our brand to a friend?
  47. 51. Marketing Physical Perceptions 2 Measure Employee Referrals HO P E “ NET PROMOTER SCORE” How likely are you to recommend our company to a friend who needs a job?
  48. 53. The Dinner Party Test Marketing Physical Perceptions 3 HO P E
  49. 55. How do your friends talk about your company? Do they talk about the things your company did or the things it does?
  50. 56. Marketing Physical Expectations Determine where you’d like the brand to be in … 6 months 12 months 3 years HOP E
  51. 57. Marketing Physical Expectations Compile a STOP , START , CONTINUE List HOP E
  52. 58. One Final Thought
  53. 59. 11,000,000 (plastic surgery procedures in 2006) (from 2005)  7%
  54. 61. Spend marketing dollars to design your products and services better … Not to make your advertising better.
  55. 62. PLEASE AVOID Plastic Surgery Marketing!
  56. 63. Questions?
  57. 64. [email_address]