Three strategic models to bring objectivity to marketing plans

I would not be surprised if in Curacao "strategy" will continue to be the marketing buzzword of 2008. Good for me, that was my specialization in business school.

A strategy determines how a company is going to compete. Some strategic models also provide objective tools to evaluate the quality of marketing plans. In other words, whether the right mix of resources is dedicated to each element in the marketing mix: line extensions (new products), advertising, pricing, service, direct sales, or consumer and trade promotions (campaigns). This for each product in your portfolio.

Last year I had the pleasure of applying some models which I had long "forgotten" to a client's portfolio.

1. Product Life Cycle. Uses the life cycle stage each product is in (development, introduction, growth, maturity or decline) to help you determine for each product in your portfolio the right mix of resources and the level of profitability you should aspire to achieve. The PLC model has been around long and is quite readily applicable.
2. Boston Consulting Group Matrix. Uses your market share and overall market potential to determine marketing objectives and resources to dedicate to each element of the marketing mix.
3. Trout's Strategic Square. Uses your market share relative to that of competitors to determine marketing objectives: defend market share, attack the market leader, avoid the him or be a guerrilla.

For all some data, market intelligence and forecasting ability is needed. How to get the data?

Porter's Competitive Strategy. Uses SWOT analyses of yourself and your competitors to determine how to compete. It's a great model, which I studied at length when in school and which continues to be used extensively today. Unfortunately, there are few objective measures to determine your or your competitors' strengths or weaknesses, or which of these are relevant. Even the opportunities and threats facing the organization are not obvious. Hence, SWOT analyses often turn out to be an exercise in bias and subjectivity. A consultant should be able to be more objective. But, the first time I did so honestly (in 1995), I was fired on the spot.

Six tips to decrease marketing waste and increase your ROI.

With oil at 100 dollars a barrel, we can barely afford to produce waste, including marketing waste. What can you do?

1. Find out who your true target customer is, so you can focus on her in all your marketing efforts. Be detailed, specific. Try to describe her in terms of demographics, lifestyle, friends, family. Then think of someone that you know who fits that description and finish the picture.
2. Think of what will really help her and how much she can or is willing to pay for that benefit. Again, be specific. Everyone has insurance. How does your insurance product help her better than the commodity insurance product?
3. Think of how you might influence that person best. Best bet: ask her what she really reads and watches and who or what she really listens to. Read, watch and listen. Not just skim, see or hear.
4. Find out how many people there are in that target segment. Then you know, for instance, if it's worth your while to place an advertisement in the national newspaper or to approach her via her club or gym. The latter is produces less waste and gives your more opportunity to interact with and influence her directly. It is more effective. It may even be less expensive and more fun.
5. Find out and decide if, realistically, you can grow your brand and how. If you have a very large market share it may not be easy. But, if you find alternative uses for your product, that can produce growth. If you can't, focus on another product.
6. Then calculate, calculate, calculate. Calculate your target sales and the resulting ROI. Is your planned effort worth it? Or is to bound to be just "marketing waste"?

The greening of marketing: the 60-30-10 rule

When I started MarkStra in 1995, the Guerrilla Marketing Handbook by Jay Levinson and Seth Godin provided ingenious, effective, practical and low-cost marketing thoughts and tips for my own company and our clients. Here is one:

"When planning a direct mail campaign, remember to follow the commonly known 60-30-10 rule.

• Sixty percent direct mail success lies in using the right mailing list;


• Thirty percent depends on your making the right offer (that is, an offer that satisfies the customer's needs better than the competitor and provides value to him or her);


• Ten percent depends upon your creative package"

Between 1995 and 2007, the price of oil (and consequently also of our marketing material) has risen from just over US$20 per barrel to US$100 and the environment is under pressure.

Have you stopped to evaluate if its worth it, both for your bottom line and for the environment, to produce some of the super-creative marketing material we marketeers strive for? Especially when you know that super-creative material is not exceedingly effective in attracting customers?

Garbage as fashion

Getting back in touch with my friend Roy Tan was one of the most pleasant moments provided to me by technology this year. This for several reasons.

First because Roy, an ex-Citibanker who now lives in Indonesia, and his colleagues at Brandt International have developed a very effective sales performance management tool, which we are about to start marketing in the Caribbean. The premise: Just because someone is a good salesperson doesn't mean s/he can become a good sales manager. One needs different skills.

Second because Roy is involved in a project called XS Project Europe. They make artsy fashionable laptop and other tote bags from plastic garbage collected by poor trash pickers on Jakarta's streets. Each is one of a kind and artistically designed. Sometimes you can even recognize which brand the tube of toothpaste was from. It's well worth a visit.

Marketing, advertising, public relations. What's the difference part III

Marketing and MarkStra

This is the third of a series on the difference between marketing, advertising and public relations. People often use the terms as synonyms, or are not sure what the difference is. By doing so companies like yours fail to notice and make full use of the tools available to convince the customer to buy from you.

At one point companies realize that public relations, advertising and promotion alone will not convince customers to buy or remain loyal. While many companies arrive at "marketing" at a later stage in life, it is a function that is performed before (in time and planning) "advertising and public relations". Advertising and public relations are quite explicitly just a part of marketing.

Marketing theory has it that there are more aspects that influence buyers to buy and which companies can be unique in. Conveniently, we use four (or six) p's, as follows.

• product itself (design, innovation, features, color, taste, etc.)
• price
• place. Meaning the way a product is distributed (in person, via mail, Internet, phone, etc.) and where it can be obtained. If it is a store, if the store is conducive to buying, or if products are well displayed
• promotion. Meaning public relations, advertising as well as sales promotion.

I usually add two p's. Technically, they belong under "product" and/or "promotion". But their existence and usefulness may get lost when talking about product or promotion. And how useful and relevant they are in our times!

• people. Meaning the customer care and sales potential of employees. Companies that provide a service are increasingly important. In addition, the level of service (customer care) can be an important distinguishing feature.


• partnerships. Meaning alliances your company has with others to provide a product. Think about American Airlines with Visa, several hotel chains, car rentals, etc.

At MarkStra Marketing is what we do for a living. We assist the client with determining the right product content, price, distribution channels, promotional tools, people and partnerships.

We may work with other companies to create and execute advertising campaigns, but we ourselves are not equipped to design or write copy for them. The campaigns we may create together with our partner companies are better than the average, because we have considered thoroughly ALL the other aspects that influence a buyer.

In the next post more detail about the marketing process.

Marketing, advertising, public relations. What's the difference Part I

There is still a lot of confusion among non-marketers and some "marketers" alike about what the difference is between marketing, advertising and public relations. It is the marketer's own fault because we assume everyone knows. Even as I set out to write this post, I am wondering if it is useful. This is most definitely not a post for marketing professionals. But it may be helpful for their non-marketing colleagues.

Of special concern is the fact that marketing and advertising are used as synonyms, interchangeably. By doing so clients and their providers omit to consider some important aspects that influence buyer behavior and hence their bottom line.

Next the first of a three part series which overview in what I think may be the order in which an established company that is seeking to increase its marketing performance may arrive at each stage.



Public Relations

Public Relations is "building good relationships with the company's various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events" (Armstrong,Kotler).

There was a time when "public relations" was the only tool companies used to connect with their clients. Think of issues such as cutting ribbons and making donations, followed by press releases. This, primarily because competition was much less than it is today. Just appearing in the paper was enough for people to consider your product. In addition, often every company in the category provided almost the same good (a commodity). Banks are a good example. Prior to the US deregulation of banks in the mid 1980's, all banks had the same product, same interest, same branches, etc. They were only promoting their "corporate image", but not specific products. In addition, this "image" was just "a picture". It was not a "picture-with-a-meaning", which is what a "brand" is.

The public relations functions has changed through the years. In good hands, it is now being used more explicitly and more effectively to gain customers. This year Cura-Peska held workshops and appeared on talk shows to provide information about fishing in Curacao. While these activities can be classified as "public relations", they were most definitely meant to attract customers.

Read the next post for Advertising.

Branding Curacao's International Financial Sector

Some 18 months ago, out of pure interest, I started examining what could be the unique competitive advantages of Curacao's international financial sector. The many years of expertise suggest that a unique competitive advantage must exist. Only, I believe the sector has been promoting benefits that now exist in most jurisdictions.

Recently a picture of a beautiful Curacao monument used in a some promotional material for the sector, triggered a discussion and further thought. First about the image the sector really wants to portray. Second, about what potential clients are impressed by and therefore what image (brand) the sector should portray. And then we discussed what picture would best fit with what these clients look for in a Caribbean jurisdiction and therefore what picture we should use. A classic brand essence exercise, but done informally.

I do not know. As many Curacaoans I am proud of our monuments and the fact that our city is on the UNESCO World Heritage List.

Monuments are classic and depict a proper conservatism. That image may very well be necessary. I also know that in at least some sub sectors of the industry, the people are young, risk-takers, educated at some of the premier schools of the world. Now everyone is connected 24/7, the world is fast, global. Unfortunately, in international business, we expect images to be the same wherever we are. That suggests a "seamless fit".

So, it merits further thought and discussion. Most people in the industry are accountants or lawyers, who are less inclined to truly "market". That is not their strength. Proper market research, followed by the appropriate strategy would be a good step to take.