National Clothesline

By John Graham

It’s surprising the entertainment industry doesn’t capitalize more on American business. There are so many compelling true stories that are ready-made to electrify audiences. But such efforts would fail. Audiences would shake their heads in disbelief. “How could anyone running a big business and being paid millions of dollars a year be so stupid? ” they would ask.

Take the U.S. auto industry, for example. Who would believe that Ford, GM and Chrysler could go from prominence to near perishing in a generation? There are literally dozens of examples of similar story lines.

A great TV special might feature how Ford abandoned the name of one of car history ’s most popular brands when introducing its replacement, and then seemed surprised the “Five Hundred” didn’t sell, only to quietly bring back the Taurus nameplate. Who would believe such a scenario? Here are five illustrations of sales and marketing stupidity:

We recently prepared a marketing communications proposal for an insurance organization. The linchpin of the program was a third-party customer research study, a well-accepted and useful technique for obtaining objective data. Rather than basing a marketing program on personal impressions and anecdotal evidence, the data would provide a solid platform for making specific marketing recommendations.

Several weeks after we submitted our proposal, our contact at the company called and said the CEO is diametrically opposed to surveying customers, indicating that he felt they only get people thinking about what ’s wrong. In other words, it’s better to let sleeping dogs lie, or to put it another way, ignorance is truly bliss.

While there is no evidence to support the view that surveys upset the apple cart, there is indication that just the opposite is true; customers are actually flattered that a company asks for their opinion.

It may have been a different story if Ford, General Motors and Chrysler had not ignored the data indicating that consumers were abandoning big SUVs and trucks in favor of smaller, more energy efficient vehicles. They may not have found themselves in the disastrous situation where they are today.

In effect, these three current also-rans in the U.S. auto business stuck with their business plan even as they drove over the edge. The big SUVs and trucks were their most profitable products so they were not about to stop building them — even when customers stopped buying them.

An indication that businesses are finding it difficult to grab customer attention is the extent to which some companies are willing to embrace what we like to call Desperation Marketing.

The City of Boston (like a number of other cities) has been the scene of promotions that not only backfired, but came with an unpleasant price tag.

The first one involved strange looking lighted displays placed in strategic spots around the city (including under a bridge) that blinked away and were mistaken for bombs.

This was a public relations effort by Turner Broadcasting’s Cartoon Network. It snarled traffic, which is easy to do on a good day, brought out thousands of police officers, firefighters and emergency personnel and embarrassed public officials, who pulled out their calculators and sent the Cartoon Network an instant invoice for $2 million. The bill was paid just as quickly.

Then, the Dr. Pepper people hid coins worth $10,000. These artful but clearly ignorant “marketers” made the mistake of hiding one of the coins in a 200-year-old crypt in one of the city ’s most revered historic sites, the famed Old Granary Burial Ground, which happens to be populated with the remains of Revolutionary War heroes. Clearly, this was not a smart move.

While so-called “guerrilla marketing” is tempting and intriguing, it also points out the difficulties marketers are having in attracting the public ’s attention. While desperation may breed innovation, it’s more likely to reveal stupidity.

More often than not, such attempts are poorly conceived and inadequately researched. For the most part, they represent a lack of serious commitment to a carefully crafted marketing strategy. They are also equally ineffective. The public may remember the “stunt,” but not recall the sponsor.

Heroes must be in short supply if The Donald is one of them. Why is this in-your-face, painfully pugnacious and super-egotistical guy popular?

It may be that he does what we would like to do if we dared. The Donald is the anti-wimp. Interestingly, he took on Rosie O ’Donnell, an unappealing person to millions of Americans. She was the perfect punching bag for a guy like The Donald. Who ’s next, Donald, to get our adrenaline going?

Everything he does is another way to scream, “You’re fired.” Are we so sadistic that we enjoy seeing others suffer?

How many of us would like to shout, “You’re fired!” at a co-worker, a boss, a mother-in-law, a customer or even a spouse? Instead, we let The Donald do it for us. Then, when The Donald disappears, we can buy a Hummer or a vehicle equally confrontational and play Intimidator.

Pushing for sales is equally obnoxious — and ineffective.

Diabetes is a devastating disease, one without a cure. This is why an American Diabetes Association fund-raising letter with a real nickel peeking through the envelope was surprising.

The caption read, “Even though diabetes is one of the leading causes of death in the United States, each American receives only a nickel ’s worth of research funding every week to find a cure.”

The final paragraph concluded, “Every nickel you give will provide funds desperately needed to eliminate diabetes once and for all! ”

Evidently, there was some uncertainty about sending out tens of thousands of nickels, since a P.S. suggested sending the nickel back!

There was also a sheet of 51 address labels adorned with ducks, dogs and fish and the name, “Mr. Graham Communications.”

Whether or not the mailing raised money is irrelevant. Whether it was the correct strategy is something else.

If every nickel counts, why would a non-profit organization give them away and then throw in a few mailing labels? It comes off as gimmicky, confusing and even reckless.

There’s a better way. Why not challenge prospective donors with a larger-than-life message instead of trying to buy support with nickels (which the letter acknowledges aren ’t worth much today) and junky address labels?

Our perceptions of products, services and companies influence our buying behavior. The task is shaping perceptions in ways that deliver positive results.

If there’s one issue that takes top honors, it’s the arrogant and erroneous belief that presentation preparation is unnecessary. Having recently attended a conference where there were a number of presentations, it became obvious that it was the salespeople who were unprepared. Unfortunately, they fell into the trap of believing that because they were experienced salespeople they could get away with “winging it.”

They may be the only ones who think that an expensive dress or suit is all that’s necessary. They seem to confuse successful and competent.

More than once at a meeting did someone say, “What was he talking about?” And these were peers!

Much of the problem is the way many salespeople view themselves. They seem to think that being friendly, likeable and sociable — the ability to get along with people — are the core ingredients for making sales. Yet, they wonder why their closing rate is so low.

For all salespeople, a lesson from Ronald Reagan is in order. Behind his rather folksy fa çade there was an enormously disciplined mind with well-honed ideas. But more importantly, he was practiced in communicating benefits, not features.

We can learn an valuable lesson from Mr. Reagan. No matter what they think they’re doing, most salespeople brim full and overflowing with features and then wonder why they never connect with customers.

For decades, Ernest and Julio Gallo turned grapes into gold by selling low-end wines, including their infamous Thunderbird brand. Julio operated the wineries and Ernest, the chief salesperson, made the money. Over the last couple of decades, they earned respect from their more upscale lines.

According to The Wall Street Journal story, Julio was dogged in his marketing. He constantly visited stores, always making sure Gallo had the most advantageous shelf space.

While the quality of Gallo wines may have been somewhat average, Ernest’s genius was off the charts. The WSJ article expressed it well:

…in an early 1970s exchange with Michael Mondavi, son of the famous vintner Robert Mondavi, Mr. Gallo [Ernest] suggested size was not his biggest priority.

“Do you know what I do?” Mr. Mondavi recalls Mr. Gallo asking him when they first met.

“Yes, you run the largest winery in the country,” replied Mr. Mondavi, then in his mid-20s.

“No,” Ernest corrected him. “I go out and visit customers in stores.”

It’s a good lesson for CEOs, The Donald, marketers, salespeople and just about everyone else.





		Businesses that outsmart themselves


		By John Graham It’s surprising the entertainment industry doesn’t capitalize more on American business. There are so many compelling true stories that are ready-made to electrify audiences. But such efforts would fail. Audiences would shake their heads in disbelief. “How could anyone running a big business and being paid millions of dollars a year be so stupid? ” they would ask. Take the U.S. auto industry, for example. Who would believe that Ford, GM and Chrysler could go from prominence to near perishing in a generation? There are literally dozens of examples of similar story lines. A great TV special might feature how Ford abandoned the name of one of car history ’s most popular brands when introducing its replacement, and then seemed surprised the “Five Hundred” didn’t sell, only to quietly bring back the Taurus nameplate. Who would believe such a scenario? Here are five illustrations of sales and marketing stupidity: Ignorance seems to be bliss in business We recently prepared a marketing communications proposal for an insurance organization. The linchpin of the program was a third-party customer research study, a well-accepted and useful technique for obtaining objective data. Rather than basing a marketing program on personal impressions and anecdotal evidence, the data would provide a solid platform for making specific marketing recommendations. Several weeks after we submitted our proposal, our contact at the company called and said the CEO is diametrically opposed to surveying customers, indicating that he felt they only get people thinking about what ’s wrong. In other words, it’s better to let sleeping dogs lie, or to put it another way, ignorance is truly bliss. While there is no evidence to support the view that surveys upset the apple cart, there is indication that just the opposite is true; customers are actually flattered that a company asks for their opinion. It may have been a different story if Ford, General Motors and Chrysler had not ignored the data indicating that consumers were abandoning big SUVs and trucks in favor of smaller, more energy efficient vehicles. They may not have found themselves in the disastrous situation where they are today. In effect, these three current also-rans in the U.S. auto business stuck with their business plan even as they drove over the edge. The big SUVs and trucks were their most profitable products so they were not about to stop building them — even when customers stopped buying them. Trying to get the customers’ attention An indication that businesses are finding it difficult to grab customer attention is the extent to which some companies are willing to embrace what we like to call Desperation Marketing. The City of Boston (like a number of other cities) has been the scene of promotions that not only backfired, but came with an unpleasant price tag. The first one involved strange looking lighted displays placed in strategic spots around the city (including under a bridge) that blinked away and were mistaken for bombs. This was a public relations effort by Turner Broadcasting’s Cartoon Network. It snarled traffic, which is easy to do on a good day, brought out thousands of police officers, firefighters and emergency personnel and embarrassed public officials, who pulled out their calculators and sent the Cartoon Network an instant invoice for $2 million. The bill was paid just as quickly. Then, the Dr. Pepper people hid coins worth $10,000. These artful but clearly ignorant “marketers” made the mistake of hiding one of the coins in a 200-year-old crypt in one of the city ’s most revered historic sites, the famed Old Granary Burial Ground, which happens to be populated with the remains of Revolutionary War heroes. Clearly, this was not a smart move. While so-called “guerrilla marketing” is tempting and intriguing, it also points out the difficulties marketers are having in attracting the public ’s attention. While desperation may breed innovation, it’s more likely to reveal stupidity. More often than not, such attempts are poorly conceived and inadequately researched. For the most part, they represent a lack of serious commitment to a carefully crafted marketing strategy. They are also equally ineffective. The public may remember the “stunt,” but not recall the sponsor. The Donald factor Heroes must be in short supply if The Donald is one of them. Why is this in-your-face, painfully pugnacious and super-egotistical guy popular? It may be that he does what we would like to do if we dared. The Donald is the anti-wimp. Interestingly, he took on Rosie O ’Donnell, an unappealing person to millions of Americans. She was the perfect punching bag for a guy like The Donald. Who ’s next, Donald, to get our adrenaline going? Everything he does is another way to scream, “You’re fired.” Are we so sadistic that we enjoy seeing others suffer? How many of us would like to shout, “You’re fired!” at a co-worker, a boss, a mother-in-law, a customer or even a spouse? Instead, we let The Donald do it for us. Then, when The Donald disappears, we can buy a Hummer or a vehicle equally confrontational and play Intimidator. Pushing for sales is equally obnoxious — and ineffective. Being sure it’s the right message Diabetes is a devastating disease, one without a cure. This is why an American Diabetes Association fund-raising letter with a real nickel peeking through the envelope was surprising. The caption read, “Even though diabetes is one of the leading causes of death in the United States, each American receives only a nickel ’s worth of research funding every week to find a cure.” The final paragraph concluded, “Every nickel you give will provide funds desperately needed to eliminate diabetes once and for all! ” Evidently, there was some uncertainty about sending out tens of thousands of nickels, since a P.S. suggested sending the nickel back! There was also a sheet of 51 address labels adorned with ducks, dogs and fish and the name, “Mr. Graham Communications.” Whether or not the mailing raised money is irrelevant. Whether it was the correct strategy is something else. If every nickel counts, why would a non-profit organization give them away and then throw in a few mailing labels? It comes off as gimmicky, confusing and even reckless. There’s a better way. Why not challenge prospective donors with a larger-than-life message instead of trying to buy support with nickels (which the letter acknowledges aren ’t worth much today) and junky address labels? Our perceptions of products, services and companies influence our buying behavior. The task is shaping perceptions in ways that deliver positive results. Having the wrong vision — of ourselves If there’s one issue that takes top honors, it’s the arrogant and erroneous belief that presentation preparation is unnecessary. Having recently attended a conference where there were a number of presentations, it became obvious that it was the salespeople who were unprepared. Unfortunately, they fell into the trap of believing that because they were experienced salespeople they could get away with “winging it.” They may be the only ones who think that an expensive dress or suit is all that’s necessary. They seem to confuse successful and competent. More than once at a meeting did someone say, “What was he talking about?” And these were peers! Much of the problem is the way many salespeople view themselves. They seem to think that being friendly, likeable and sociable — the ability to get along with people — are the core ingredients for making sales. Yet, they wonder why their closing rate is so low. For all salespeople, a lesson from Ronald Reagan is in order. Behind his rather folksy fa çade there was an enormously disciplined mind with well-honed ideas. But more importantly, he was practiced in communicating benefits, not features. We can learn an valuable lesson from Mr. Reagan. No matter what they think they’re doing, most salespeople brim full and overflowing with features and then wonder why they never connect with customers. Getting it right For decades, Ernest and Julio Gallo turned grapes into gold by selling low-end wines, including their infamous Thunderbird brand. Julio operated the wineries and Ernest, the chief salesperson, made the money. Over the last couple of decades, they earned respect from their more upscale lines. According to The Wall Street Journal story, Julio was dogged in his marketing. He constantly visited stores, always making sure Gallo had the most advantageous shelf space. While the quality of Gallo wines may have been somewhat average, Ernest’s genius was off the charts. The WSJ article expressed it well: …in an early 1970s exchange with Michael Mondavi, son of the famous vintner Robert Mondavi, Mr. Gallo [Ernest] suggested size was not his biggest priority. “Do you know what I do?” Mr. Mondavi recalls Mr. Gallo asking him when they first met. “Yes, you run the largest winery in the country,” replied Mr. Mondavi, then in his mid-20s. “No,” Ernest corrected him. “I go out and visit customers in stores.” It’s a good lesson for CEOs, The Donald, marketers, salespeople and just about everyone else.

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John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He is an author of several books, writes for a variety of publications and speaks at association meetings. He can be contacted by phone at (617) 328-0069. The company ’s web site is www.grahamcomm.com.