Conducting a Marketing Physical To Ensure Brand Health

Slide 1: Conducting a Marketing Physical John Moore

Slide 2: This presentation was delivered on Monday, Sept. 10, 2007

Slide 3: Conducting a Marketing Physical John Moore

Slide 7: Ah

Slide 8: Ah Ah-Ha

Slide 9: Healthy brands grow. Unhealthy brands wither.

Slide 10: Brands are more than marketing strategies. They are living organisms.

Slide 11: Conducting a Marketing Physical È Business Anatomy 101 È Basic Vital Signs È Leading Causes of Brand Demise È The Marketing Physical È One Final Thought È Q&A

Slide 12: Hippocratic Oath

Slide 13: Marketing Hippocratic Oath As marketing professionals, we do not treat a tactical marketing disease, nor a strategic marketing disease …

Slide 14: Marketing Hippocratic Oath … but rather a sick brand, whose illness may affect the business’s customers and economic stability.

Slide 15: Marketing Hippocratic Oath Our responsibility includes these related problems, if we are to care adequately for the sick brand.

Slide 16: Marketing Hippocratic Oath We pledge to prevent marketing diseases whenever we can, for prevention is preferable to demise.

Slide 17: Business Anatomy 101

Slide 18: Human Anatomy

Slide 19: Skeleton System Human Anatomy

Slide 20: Lungs innovation creativity Human Anatomy

Slide 21: Heart NO HEART no passion = poor work BIG HEART Human passion = Anatomy quality work

Slide 22: Eyes/Ears Near-sighted • see close-up • tactical Human • reactionary Anatomy

Slide 23: Near-sighted • see close-up • tactical • reactionary

Slide 24: Eyes/Ears Far-sighted • see far-away • futuristic Human Anatomy

Slide 25: Far-sighted • solutions in search of problems

Slide 26: Brain think act learn create ideate dream

Slide 27: Brain Eyes/Ears Heart Lungs Skeleton System Human Anatomy

Slide 28: Vital Signs

Slide 29: Vital Signs Show a person Vitals include: is alive. • heart rate • breathing rate • body temperature Signs change with • blood pressure age, sex, weight, and exercise tolerance

Slide 30: Vital Signs Show how alive Vitals include: a business is. • comp sales • comp transactions • average ticket Signs change with age, category, • mktg budget size customer base, and • brand age advertising tolerance

Slide 31: Vital Signs Comp Sales Must surpass the rate of inflation. If not, the brand is dying, not growing.

Slide 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.

Slide 33: Vital Signs Average Ticket Year-over-year increases in Average Ticket per customer signals a healthy brand.

Slide 34: Vital Signs Budgets Marketing budget as % of sales. (7%+ is unhealthy) Advertising budget as % of marketing budget. (50%+ means“Advertising Obesity”)

Slide 35: Vital Signs Brand Age Vital signs will differ between embryonic brands, adolescent brands, middle-aged brands, and geriatric brands.

Slide 36: Leading Causes of Brand Demise

Slide 37: Leading Causes of Brand Demise HEART DISEASE Typified by brands that lack a clear and compelling reason for existing Case Studies Symptoms include: • declining sales • declining transactions • inability to attract and keep devoted customers • inability to attract and keep quality employees

Slide 38: Leading Causes of Brand Demise STROKE Typified by failed business strategies Case Studies Symptoms include: • ill-advised acquisitions • far-flung brand extensions • poorly defined brand portfolios Cologne

Slide 39: Leading Causes of Brand Demise SCHIZOPHRENIA Typified by businesses being unfocused and having multiple personalities Case Studies Symptoms include: • trying to be all things to all people • multiple brand personalities Grand Hyatt Park Hyatt Hyatt Regency Hyatt Place Hyatt Summerfield Suites Hyatt at Home

Slide 40: Leading Causes of Brand Demise ALZHEIMER’S Typified by businesses suffering from short-term memory loss Case Studies Symptoms include: • failure to maintain recaps and records of past promotions • repeating the same mistakes

Slide 41: Leading Causes of Brand Demise DISCOUNT ADDICTION Typified by businesses relying on gimmicky discounts to drives sales Case Studies Symptoms include: • Constant couponing • Employee Discounts • 0% Financing • Buy 9, Get 1 Free • The “Half-Yearly Sale” that happens every month

Slide 43: Conducting a Marketing Physical

Slide 44: Marketing Physical The HOPE Method H istorical facts O pinions P erceptions E xpectations

Slide 45: Marketing Physical Historical Facts HOPE 1 Take Vital Signs  Comp Sales  Comp Transactions  Average Ticket  “Custom Measures”

Slide 46: Marketing Physical Historical Facts HOPE 1 Create a Marketing Dashboard Take Vital Signs  comp sales  comp transactions average ticket  custom measures

Slide 47: Marketing Physical Historical Facts HOPE 2 List all “Serious”Business Issues Affecting the Brand Competition  Macroeconomic Stuff  Operational Issues  Etc…

Slide 48: Marketing Physical Historical Facts HOPE 3 Topline Current and Planned Marketing Activities/Promotions

Slide 49: Marketing Physical Opinions HOPE Review past recaps You do have recaps, right? You are conducting post mortems on promotions, right? (If not, you must.)

Slide 50: Marketing Physical Perceptions HOPE 1 Measure Customer Referrals NET PROMOTER SCORE How likely are you to recommend our brand to a friend? The more promoters, the greater a brand grows.

Slide 51: Marketing Physical Perceptions HOPE 2 Measure Employee Referrals “NET PROMOTER SCORE” How likely are you to recommend our company to a friend who needs a job?

Slide 53: Marketing Physical Perceptions HOPE 3 The Dinner Party Test

Slide 55: How do your friends talk about your company? Do they talk about the things your company did or the things it does?

Slide 56: Marketing Physical Expectations HOPE Determine where you’d like the brand to be in … 6 months 12 months 3 years

Slide 57: Marketing Physical Expectations HOPE Compile a STOP, START, STOP START CONTINUE List

Slide 58: One Final Thought

Slide 59: 11,000,000 (plastic surgery procedures in 2006) 7% ² (from 2005)

Slide 61: Spend marketing dollars to design your products and services better … Not to make your advertising better.

Slide 62: PLEASE AVOID Plastic Surgery Marketing!

Slide 63: Questions?

Slide 64: www.brandautopsy.com john@brandautopsy.com