Marketing Lessons From Outside The A/E Industry presented by Michael Krauss at the 2014 Hot Firm & A/E Industry Awards Conference in Beverly Hills, CA

1. © Market Strategy Group, 2014
ZweigWhite Hot Firm + A/E Industry Conference
Los Angeles
September 26, 2014
Michael C. Krauss
President, Market Strategy Group
Marketing Lessons
from Outside the A/E
Industry

2. Imagine Today’s Conversation As A Workshop…
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Interactive. Informal. Like An Hour With Norm.

3. Except I’m Shorter And Grew Up In A Hollow Tree
4

4. Migrated From Chocolate Chips To Computer Chips
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Packaged Goods Professional Services Thought Leadership

5. Along the Way I Met These Characters…
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Jock Holliman
Mark Zweig
Rick Lincicome
Carol Sakoian
Jon Buggy
Bill Crockett
Greg Anderson

6. Today, I Want To Tell You About These Characters….
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Jim StengelBarry Krause Dan PinkBob Mariano Marissa Mayer
Tom Nagle Jeanne Harris Phil KotlerSam Yagan Gary Vaynerchuk

7. They’ve Taught Me Ten Tips, I Want To Share
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1. Be Authentic
2. Profit Thru Purpose
3. Service is Key
4. Sales is Everyone’s
Responsibility
5. Be Innovative
6. Revenue or Profit????
7. Engage with Analytics
8. Better, Cheaper, More
Fun (Expensive Isn’t
Always Effective)
9. Context Matters
10. Keep Listening &
Learning

8. ▪ Marketing BS, Bradley
▪ Can’t Decide Copy Writing Or Account Work
▪ Ran Leo Burnett’s McDonald’s Account During
The “Burger Wars”
▪ President Hal Riney
▪ Architect Of Subway “Jared” Campaign
▪ Launched LiveLab: Enable Marketers To Provide
“Authentic” Content
Barry Krause, Founder and CEO, LiveLab
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9. ▪ Reading Men’s Health
▪ College Student Lost Weight On Subs
▪ Send’s Assistant To Find Jared
▪ Corporate Won’t Bite
▪ “It’s The Real Deal,” Krause
▪ Goes Around Corporate; Pays for Ad
Production Himself
▪ Launches In One Market
▪ Rest Is History…
“A Diet Story Won’t Sell Fast Food…” Subway, CMO
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10. ▪ Four Frames Guide Him With
Customers
▪ It’s Not About Monologue From A
Brand. It’s About Dialogue And
Engagement
▪ Present Yourself in A Manner
That’s Useful, Loveable And Real
▪ Trailblazer Helping Clients
Determine ROI For A Single
Facebook like
1. Be Authentic
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The Key To Marketing In The Digital Age Is To
Be Authentic With The Customer.
Communication – Nordstrom Happy – Disney
User Experience – Jobs “X” Factor – Zuckerberg

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Jim Stengel, ex-CMO P&G
▪ Raised In Lancaster, PA
▪ Grew Jif’s sales 143%; “Choosy
Moms Choose Jif” campaign
▪ Fought The “Cookie Wars”
▪ Became CMO With A.G. Lafley
▪ Studied (With Millward Brown)
Performance Of 50 Companies
▪ Consultant/Professor Anderson
School
▪ Author “Grow”

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2. Profit Thru Purpose
1. Discover A Brand Ideal
2. Build Business Culture Around The
Ideal
3. Communicate The Ideal To
Employees And Customers
4. Deliver A Near-Ideal Customer
Experience
5. Evaluate The Business’ Progress
Against The Ideal
Mercenaries Don’t Win.

13. ▪ Started Behind Deli Counter At
Dominick’s In 1968
▪ BS UIC Pre-Med; Booth MBA
▪ Back To Dominick’s As Assistant
Manager In 1973 To President &
CEO In 1998
▪ Transformed Dominick’s From
Hierarchical To Matrix Structure
▪ Left Dominick’s Over Product
Quality Fight With Safeway
▪ Today, Mariano’s Replaces
Dominick’s in Chicago
Bob Mariano, CEO, Roundy’s Supermarkets
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14. ▪ Listen To Customers
▪ Customers Told Us They Wanted
To Make Fewer Trips To The Store.
▪ Costco = Bulk Items
▪ Whole Foods = Premium Items
▪ Grocery = Staples
▪ Give The Customer What They
Want…
▪ Deliver It “All in One”
What Happened? A Great Strategic Concept…
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“We painted a 3-D picture
of the Whole Foods, Costco
and local grocery customer
as the target…”

15. ▪ CEO Works In Stores 2 Days/Wk
▪ In Store Service Differentiates
▪ Managers = Servant/Leaders
▪ Treat Employees As Well As
Customers
▪ Motivate Clerks To Engage With
People
▪ Structure The Organization To
Serve The Customer
3. Service is Key
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Everyone From Top To Bottom Of A Business Should Strive To Take
The Retail Experience Truly Customer Centric.
“Our managers have to be
deeply invested in
their teams…”

16. 17
Dan Pink, Best-Selling Author & Former Speechwriter
▪ Truman Scholar At Northwestern
▪ Yale Law School
▪ Speechwriter For Al Gore
▪ Author of 5 NY Times Best-Selling
Books
▪ Named One of The top 50 most-
Influential Management Thinkers
▪ Proponent Of Servant Selling

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4. Sales Is Everyone’s Responsibility
▪ No longer ABC: “Always Be Closing”
▪ In Information Age, Honesty In Selling
Key To Success
▪ Today’s Most Successful Salespeople
Are Service Oriented
▪ Service More Than Just Smiling: It’s
About Improving Others’ Lives
▪ Serve Customers Through Problem
Solving And Problem Finding
▪ “If You Have A Problem,
Call Me On My Cell…”
Servant Selling Is Key To Winning Business In The Information Age.
Giuseppe Farruggio,
Owner of Il Canale

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Marissa Mayer, CEO, Yahoo
▪ CEO At Yahoo
▪ Top Executive At Google
▪ Owned The Google Homepage
▪ Thought Leader On Innovation
▪ BA, MS Stanford In AI
▪ Grew Up In Wausau, WI
▪ Willing To “Think Differently” (e.g.
Work From Home)

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5. Be Innovative
▪ Ideas Come From Everywhere
▪ Share Everything You Can
▪ You’re Brilliant, We’re Hiring
▪ A License To Pursue Dreams
▪ Innovation, Not Instant Perfection
▪ Data Is Apolitical
▪ Creativity Loves Constraint
▪ Focus On Users, Not Money
▪ Don’t Kill Projects, Morph Them
Fostering Innovation And Creativity Is Key To Success.

20. 21
Tom Nagle, Senior Advisor, Monitor Group
▪ Author “Strategy & Tactics of
Pricing”
▪ Professor BU
▪ Founder, Strategic Pricing Group
▪ Former Monitor Group Senior
Partner
▪ Foremost Academic Thought
Leader On Pricing Strategy
▪ Loves to Talk About “Harry”
▪ Was Henry Ford Right?

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The Idea Behind Quad Graphics
▪ Limited Color/Paper Assortment
▪ One Kind of Printing Press
▪ No Special/Custom Deliveries
▪ Solid Value Based Pricing
▪ Required Customers To Work
With Him/Attend Annual Retreat
▪ Continuous/Collaborative
Improvement
▪ Customers Loved Harry
“Accept our limited paper
assortments and delivery
schedules and we’ll
share the value…”

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6. Revenue or Profit????
▪ Are You Chasing Revenue? Profit?
▪ Marketers Too Often Target Revenue
▪ Disconnect Between Marketers And
Internal Operations
▪ Choose Markets Where Operational
Advantages Exist
▪ Quad/Graphics, Southwest, Walmart
▪ Find Synergy Between Customer
Needs And Ability To Deliver
▪ Focus On Profits
Marketers Should Selectively Target Segments To Exploit Advantages.

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Jeanne Harris, Author & Research Fellow
Accenture Institute for High Performance
▪ Math Geek, Started As
Administrative Assistant
▪ Leading Researcher: Accenture
Institute for High Performance
▪ Author “Competing on Analytics”
– CIO Insight Magazine, One Of “The
Most Provocative, Engaging Business
Books Of All-Time”
▪ Author “Analytics at Work:
Smarter Decisions, Better Results”

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7. Engage With Analytics
▪ Analytics Is The Differentiating Factor
▪ “Don’t Cluster Your Geeks In The
Same Place”
▪ Need Entire Organization On Board
With Analytics (Led By CEO)
▪ Successful E-Commerce
Organizations Are Analytical (Google,
Yahoo!, Amazon)
▪ Netflix, Proprietary Algorithm That
Recommends Movies To Customers
Fusing The Left And Right Brain Is The Ingredient For Success.

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Sam Yagan, CEO, Match Group
▪ Graduate of Illinois Math And
Science Academy
▪ Created/Sold SparkNotes With
Harvard Classmates; $30 Million
▪ “Better, Cheaper, More Fun…”
▪ Stanford MBA
▪ Co-Founder OkCupid;
$90 Million Exit
▪ CEO Of Match.com
▪ Named One Of Time’s 100 Most
Influential People

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8. Better, Cheaper, More Fun (Expensive Isn’t Always
Effective)
▪ $0 Marketing Budget For SparkNotes,
OkCupid
▪ Instead, Connect With Consumers
Using New Technology
▪ Cliff Notes Inherently Social; Dating
Trends Not Newsworthy, Blog-Worthy
▪ Match.Com: “What Would We Do If
We Didn’t Have The Budget?”
▪ “Love” The Data
▪ Never Underestimate The Consumer
Use Data/Tech To Find Ways Of Offering Better Products,
Delivering Greater Value, And Engaging Socially (Fun).

27. So, I’m About To Introduce The Keynote Speaker…
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“Is It Okay If I Swear? If I Use
Profanity…”
I’m In The International Ballroom Of The Chicago Hilton And Towers
With 1,000 People In The Audience.

28. ▪ Russian Émigré
▪ Email Marketing Transforms
Family Liquor Business $3M to
$45M
▪ Wine.com Blogger
▪ Author, Jab, Jab, Jab, Right
Hook: How to Tell Your Story in
a Noisy Social World
▪ Founder VaynerMedia Clients:
GE & PepsiCo
▪ Angel Investor: Twitter, Tumblr,
Uber, Birch Box
Gary Vaynerchuk, Social Media Guru, VaynerMedia
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29. ▪ Gaining Attention Is Today’s
Challenge
▪ Relationship Selling Still Works
▪ Social Media = Powerful Tool
▪ Best Used To Build Relationships:
Not To Close
▪ Give. Give. Give. Before You Ask.
▪ Select Right Social Media Tool For
The Task
9. Context Matters
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Tailor Content To Best Fit The Context Of A Particular
Social Channel And Its Distinct Audience.

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Philip Kotler, S.C. Johnson & Son Distinguished Professor of
International Marketing, Kellogg School of Management
▪ Trained As An Economist Under
Four Nobel laureates
▪ Economics MA at U of C;
Influenced By Friedman/Stigler
▪ PhD at MIT (Samuelson and
Solow on review committee)
▪ Consultant to IBM, General
Electric, Sony, AT&T, Bank of
America, Merck, Motorola, Ford
▪ Dean of Marketing Academics

31. A Dozen CMOs Are Having Dinner With Professor Kotler…
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“So Tell Me What Are You
Seeing That Is Interesting To
You…”
I’m At Dinner At NoMi Expecting To Hear The Wisdom Of The Sage.

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10. Keep Listening & Learning
▪ Build Processes To Gather Customer
Insights
▪ Strengthen Brands
▪ Drive New Product Development
Based On Customer Needs
▪ Use New Marketing Technology
▪ Measure Marketing Effectiveness
▪ Improve Marketing’s Working
Relationships With Other Functions
▪ Keep listening
He Shared His Views, But His Desire To Learn Was Key.

33. A Closing Thought… Marketers Come in Three Flavors
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Strategic
Marketers
Marketing
Communicators
Sales
Enablers
Select Your Marketers Wisely At Your A/E Organization.

34. I’d Love To Tell You More About These Characters….
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Jim StengelBarry Krause Dan PinkBob Mariano Marissa Mayer
Tom Nagle Jeanne Harris Phil KotlerSam Yagan Gary Vaynerchuk
Michael.Krauss@Mkt-Strat.Com

35. I Hope You Can Apply Their Ideas
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1. Be Authentic
2. Profit Thru Purpose
3. Service is Key
4. Sales is Everyone’s
Responsibility
5. Be Innovative
6. Revenue or Profit????
7. Engage with Analytics
8. Better, Cheaper, More
Fun (Expensive Isn’t
Always Effective)
9. Context Matters
10. Keep Listening &
Learning

36. What Would You Like To Discuss?
Questions

37. Sector Clients
Software & Infrastructure as a Service, Cloud, Big Data
Business Services
Communication &
High Tech
Industrial &
Energy
Venture &
Private Equity
Market Strategy Group Clients
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Strategy --- Voice of the Customer --- Change --- Coaching.