Conducting a Marketing Physical John Moore

This presentation was delivered on Monday, Sept. 10, 2007

Conducting a Marketing Physical John Moore

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Healthy brands grow. Unhealthy brands wither.

Brands are more than marketing strategies. They are living organisms.

Conducting a Marketing Physical  Business Anatomy 101  Basic Vital Signs  Leading Causes of Brand Demise  The Marketing Physical  One Final Thought  Q&A

Hippocratic Oath

Marketing Hippocratic Oath As marketing professionals, we do not treat a tactical marketing disease, nor a strategic marketing disease …

… but rather a sick brand, whose illness may affect the business’s customers and economic stability. Marketing Hippocratic Oath

Our responsibility includes these related problems, if we are to care adequately for the sick brand. Marketing Hippocratic Oath

We pledge to prevent marketing diseases whenever we can, for prevention is preferable to demise. Marketing Hippocratic Oath

Business Anatomy 101

Human Anatomy

Human Anatomy Skeleton System

Human Anatomy Lungs innovation creativity

Human Anatomy Heart NO HEART no passion = poor work BIG HEART passion = quality work

Human Anatomy Eyes/Ears Near-sighted see close-up tactical reactionary

Near-sighted

see close-up

tactical

reactionary

Near-sighted see close-up tactical reactionary

Near-sighted

see close-up

tactical

reactionary

Human Anatomy Eyes/Ears Far-sighted see far-away futuristic

Far-sighted

see far-away

futuristic

Far-sighted solutions in search of problems

Far-sighted

solutions in search of problems

Brain think act learn create ideate dream

Human Anatomy Heart Eyes/Ears Brain Lungs Skeleton System

Vital Signs

Vital Signs Show a person is alive. Signs change with age, sex, weight, and exercise tolerance Vitals include: heart rate breathing rate body temperature blood pressure

Vitals include:

heart rate

breathing rate

body temperature

blood pressure

Vital Signs Show how alive a business is. Signs change with age, category, customer base, and advertising tolerance Vitals include: comp sales comp transactions average ticket mktg budget size brand age

Vitals include:

comp sales

comp transactions

average ticket

mktg budget size

brand age

Vital Signs Comp Sales Must surpass the rate of inflation. If not, the brand is dying, not growing.

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.

Vital Signs Average Ticket Year-over-year increases in Average Ticket per customer signals a healthy brand.

Vital Signs Budgets Marketing budget as % of sales. (7%+ is unhealthy) Advertising budget as % of marketing budget. (50%+ means“Advertising Obesity”)

Vital Signs Brand Age Vital signs will differ between embryonic brands, adolescent brands, middle-aged brands, and geriatric brands.

Leading Causes of Brand Demise

Leading Causes of Brand Demise HEART DISEASE Typified by brands that lack a clear and compelling reason for existing Symptoms include: declining sales declining transactions inability to attract and keep devoted customers inability to attract and keep quality employees Case Studies

Symptoms include:

declining sales

declining transactions

inability to attract and keep devoted customers

inability to attract and keep quality employees

Leading Causes of Brand Demise STROKE Typified by failed business strategies Symptoms include: ill-advised acquisitions far-flung brand extensions poorly defined brand portfolios Case Studies Cologne

Symptoms include:

ill-advised acquisitions

far-flung brand extensions

poorly defined brand portfolios

Leading Causes of Brand Demise SCHIZOPHRENIA Typified by businesses being unfocused and having multiple personalities Symptoms include: trying to be all things to all people multiple brand personalities Case Studies Grand Hyatt Park Hyatt Hyatt Regency Hyatt Place Hyatt Summerfield Suites Hyatt at Home

Symptoms include:

trying to be all things to all people

multiple brand personalities

Leading Causes of Brand Demise ALZHEIMER’S Typified by businesses suffering from short-term memory loss Symptoms include: failure to maintain recaps and records of past promotions repeating the same mistakes Case Studies

Symptoms include:

failure to maintain recaps and records of past promotions

repeating the same mistakes

Leading Causes of Brand Demise DISCOUNT ADDICTION Typified by businesses relying on gimmicky discounts to drives sales Symptoms include: Constant couponing Employee Discounts 0% Financing Buy 9, Get 1 Free The “Half-Yearly Sale” that happens every month Case Studies

Symptoms include:

Constant couponing

Employee Discounts

0% Financing

Buy 9, Get 1 Free

The “Half-Yearly Sale” that happens every month

Conducting a Marketing Physical

Marketing Physical The HOPE Method H O P E istorical facts pinions erceptions xpectations

Marketing Physical Historical Facts H OPE Take Vital Signs Comp Sales Comp Transactions Average Ticket “ Custom Measures” 1

Take Vital Signs

Comp Sales

Comp Transactions

Average Ticket

“ Custom Measures”

Marketing Physical Historical Facts Take Vital Signs comp sales comp transactions average ticket custom measures 1 H OPE Create a Marketing Dashboard

Take Vital Signs

comp sales

comp transactions

average ticket

custom measures

Marketing Physical Historical Facts List all “Serious”Business Issues Affecting the Brand Competition Macroeconomic Stuff Operational Issues Etc… 2 H OPE

List all “Serious”Business

Issues Affecting the Brand

Competition

Macroeconomic Stuff

Operational Issues

Etc…

Marketing Physical Historical Facts Topline Current and Planned Marketing Activities/Promotions 3 H OPE

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.)

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?

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?

The Dinner Party Test Marketing Physical Perceptions 3 HO P E

How do your friends talk about your company? Do they talk about the things your company did or the things it does?

Marketing Physical Expectations Determine where you’d like the brand to be in … 6 months 12 months 3 years HOP E

Marketing Physical Expectations Compile a STOP , START , CONTINUE List HOP E

One Final Thought

11,000,000 (plastic surgery procedures in 2006) (from 2005)  7%

Spend marketing dollars to design your products and services better … Not to make your advertising better.

PLEASE AVOID Plastic Surgery Marketing!

Questions?

[email_address] www.brandautopsy.com