Category Dominance

August 27th, 2010

Micky and MeYou cannot “un-ring” a bell. Years ago I read a book the changed my life in terms of advertising. Once I consumed the concepts of “Positioning: the battle for your mind.” by Al Ries and Jack Trout, I was never able to look at the marketing world without seeing behind the scenes of advertising and marketing.

The concept of positioning is simple. It says that human beings can only track a limited number of items in a product or service category, i.e. five brands of soft drinks, seven brands of bread, or four brands of gasoline. Each brand through its advertising and marketing efforts establish themselves on the rungs of a mental ladder. The best rung is the top one, category dominant. We all know Coca Cola, Amazon.com and Microsoft. They are much more recognizable than Verner’s, Lord and Taylor and Oracle.

Far too few retailers understand the power of positioning. They simply rely on people “knowing them.” Or sometimes worse, they accept their placement on the hierarchy of brands without attempting to influence it in any way.

Category dominance means you are the first brand to come to mind when the category is mentioned. If you cannot be dominant in the category, create a new category. 7-Up did so by creating the “Uncola” category. Avis made a category about service rather than size in the car rental industry with “We try harder.” Category dominance can be achieved by selling your unique sales proposition, that one thing where you are stronger than everyone else.

The two most memorable positions are first and last. Being in the middle is purgatory. You are not good enough to brag about, nor are you bad enough to pity. Your best option is to create a new game and category based upon your relative strength. Remember that it is easier to win the game when you create the rules.

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Logic and Rationale

August 19th, 2010

Deborah_Norville_at_CHA Do consumers typically purchase based upon on the best value or does he buy upon what he feels is the best value? Unfortunately human nature is such that we do what our emotions mandate and then justify it with our reasoning. Nothing is more essential to sales and advertising than emotion.

“The essential difference between reason and emotion is that reason leads to conclusions while emotion leads to actions,” according to Neurologist Donald Calne.

Any experienced salesperson can tell you that customers buy exactly what they want, independent of logic and even to the extent of avoiding what they desperately need. The best intentioned salesperson attempts to sell what the customer needs. The best compensated salesperson sells the customer what they want.

Since we now know that customers do not buy according to logic but according to their wants, how do find out their wants? We ask them. Far too many advertising campaigns have failed because we assume we know what motivates customers. After all, isn’t it our product? Aren’t we the experts? Shouldn’t we know why people buy? Again, we do know the reasons they should buy and can make conclusions, but we can only discover the emotions that come from inside of the customer which stimulate buying actions by asking questions and listening closely to the answers.

The more you know about your industry and your specific product the more you see it logically and intellectually. You know all of the reasons your consumer should buy. But your very expertise separates you from those aspects that pique the emotions of your prospective customers. Remember the phrase, “Sell the sizzle, not the steak?” The sizzle piques the emotions. The word “steak” describes the product and its features. The words “corn fed, grade A beef” are generally not as effective at evoking emotion as “sizzling, tantalizing and mouth-watering,” which are not product attributes but are more associated with the reflexes of the potential customer.

In a previous post I stated that bad advertising is about the advertiser and good advertising is about the customer. Good advertising speaks to or stimulates the emotions that lead to actions, bad advertising attempts to sell using reasoning. Good advertising pulls, bad advertising pushes.

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Customer Service by the numbers

July 16th, 2010

John_Boggs-new picTechnical Assistance Research Programs (TARP) of Washington DC ran some studies that are quite revealing.
• On average, twenty-six (26) customers will not complain for each customer who will.
• Yet each of the twenty-seven (27) unhappy customers WILL tell an average of sixteen (16) people about their bad experience with your company. – This means for every one complaint you hear, four hundred and thirty-two (432) negatives things are spoken about your business. By the time you hear a complaint three (3) times which is about the number of times a complaint is heard before it is perceived as a possible problem, 1,296 people have already heard about the problem.
• Ninety-one (91%) percent of your unhappy customers will never buy from you again.
• But if you make a focused effort to remedy your customers complaint, eighty two (82%) percent of them will stay with you.
• It costs about five (5) times as much to attract one new customer as it does to retain an old customer.

It is not hard to see the value of good customer service when you look at these numbers. But unfortunately, the real cost of customer service is often not seen until far too late because as you see above, you are generally one of the last to hear about your customer’s complaints. It is more than worth the effort to be proactive addressing customer concerns.

Another story about customer service comes from the story of Jan Carlzon of Swedish Airlines. In the late 1970’s he became president of the airline with a large initiative on customer service and discovered some basic human traits. Customers do understand that there are some problems that cannot be solved. Customers wish to be treated with respect and have a company representative advocate on their behalf regardless of the outcome. Even when the source of the customer’s complaint could not be changed, the customer was generally satisfied when the person from the company who they talked to became their advocate, listened to the problem and made an effort to resolve it. Carlzon empowered every employee for Swedish Airlines to address customer complaints. No matter if it is was a baggage handler or a customer service rep, whoever had contact with the customer was empowered to solve the customers problem. The customer satisfaction ratings and bottom line for Swedish Airlines skyrocketed.

Today, the difference between company “A” and company “B” is seldom in their products as the majority of products today work and are getting better all of the time. The difference between companies and hence the opportunity is in the way they interact with the customer. Consumers are not looking for unreasonable attention or spectacular results. As Jan Carlzon discovered, they just want to be treated fairly by the employee that is their connection to the company. Empowering your employees to use a common sense approach to serving the customers concerns may be the best investment you can make. It is one of those strategies that will not immediately show its value. It is doing the right thing because it is the right thing to do. And when you do it. The TARP numbers above will not come back to haunt you.

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Coaching

June 28th, 2010

John Boggs - 09During the Olympics a couple of years ago many of us witnessed extraordinary individual and team performances. Each one that captivated and inspired us was made possible by exceptional coaching. The best athletes in the world submitted themselves to the oversight of coaches, who in most cases are not and never were as gifted or skilled on the field of competition. The athletes found great coaches so they could win. And they know that great coaches are committed as much, or more, to achieving victory as are most athletes.

World and Olympic records are important, as they measure the development of mankind in a physical sense. But the discipline of business affects the lives of so many more. There is an almost universal obsession to play the “Lone Ranger” in the business world. Businesspeople feel they must “do it themselves.” Other than mentoring, a loose form of coaching, the bulk of businesspeople are left to perform without the benefit of coaching.

What would be possible if you and others in the business community not only accepted coaching, but embraced great coaching? What would you be capable of if someone held your performance to the standards you set for yourself? How good would you be if there was a coach who would not let you sell out on yourself when things get a little tough? How good could you be if someone pushed you at the very time you decided to rest, or when you felt you had given enough?

To get glimpse of what that might look like, you need to know what prevents effective coaching.

The first obstacle to effective coaching is when the performers believe they already know how to achieve the increased performance that both the coach and player are committed to. (Note: If they did know how, they would not have asked for or need the help of a coach). Coaching is almost exclusively action-results driven. Although many coaches may be knowledgeable, their knowledge is always in the background of their relationship with the performers and of whatever is the apparent moment of play or performance. In the foreground, the performer’s actions generate results. Actions, not knowledge, create results.

Coaching is not about knowledge. Coaching is about results. Knowledge without results is pretty much useless. Knowledge allows you to believe you could create the result if you tried. However, in business, without results not many care what you know.

The next impediment to effective coaching is circumstances, reasons and excuses that are used to explain away undesired results. Circumstances, reasons and excuses are the panacea that makes mediocrity acceptable for the masses.

Too often performers believe that missing the desired result is okay, if you have a good enough reason. To the effective coach, circumstances, reasons and excuses are just part of the conditions the performer is responsible for, and the best result is not negotiable in light of these conditions. When performers accept responsibility for everything, progress comes quickly. Results need not be dependent upon circumstances, reasons or excuses. True performers generate great results in spite of them.

No effective coaching can occur if the performer focuses more on scoring points with the coach instead of producing a result on the field. Coaches take on performers that want to improve. Mistakes only happen when pushing limits. If the player is not pushing limits, he’s playing on familiar ground and is more concerned with not making mistakes than with improving. Growth only exists on the other side of failure.

Effective coaching understands that failure fuels growth. Improvement comes through taking risks and making mistakes. Risk must be embraced, and failure never criticized; rather, it must be examined and overcome. For with failure comes growth and expertise, which is more valuable in the long term than the temporary set-back of a failed effort.

A final thing that prevents effective coaching is failure to surrender to coaching. Often coaches require a reorientation of actions that have become comfortable. Many times performers resist, wanting to remain with the usual or comfortable way they have done things in the past. This comes from what players know from personal experience, which may be limited; their fear of change is fear of the unknown. The coach’s job is to empower the performer to play beyond his personal limits. This is only possible by surrendering to the coach’s direction. Players must have blind trust in the coach’s commitment to the result, and the performer must be able to push through being uncomfortable to get there.

Add to this list a universal need for individuals to “look good” in a business setting. The understanding that true growth occurs only through “failure” is not embraced in the business arena. Because of this many businesspeople limit themselves to attempt only what they “know” in order to avoid the ramifications and consequences of the cost of genuine growth.

Accepting coaching in the business world is seen as a weakness. Businesspeople universally want to be seen as strong and knowledgeable. The fiction we know as the “Lone Ranger,” should be dressed in a business suit rather than wearing a mask and riding a white horse, for even in the Western version there is the trusty sidekick Tonto to make sure our Ranger is truly not alone.

Every four years I witness excellence in the summer Olympic Games – that excellence is result of extraordinary talent being guided by superb coaching in a variety of sports. I’m always awed by several performances, even though I expect to see the best. Unfortunately, during the intervening time, I cannot remember witnessing any businesses whose performances inspired me in any similar fashion.

My advice is to commit to setting your own world record with your business. Find a coach who will totally commit to the highest standard of results, and who will ruthlessly hold you to achieving the goals you set for yourself and your business. When all is said and done, you will be happy, no matter where you end up. For I can promise that your talent, plus great coaching, will make you achieve more than you could ever achieve by yourself.

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Keys to making ads work

June 11th, 2010

P0000311There are three basics to making your advertising work. They are: consistency; frequency; and anchoring. If you remember your psychology 101 you know about Pavlov and his dogs. Pavlov put dogs into a cage and rang a bell. When he rang the bell, he gave the dogs a piece of meat. After consistently doing ringing the bell over a period of time with a great amount of frequency, whenever Pavlov rang the bell, the dog immediately began to salivate, even before seeing the meat to which the action was anchored. Pavlov anchored this experiment with something the dogs enjoyed and even wanted; the meat.

Many advertisers understand consistency and frequency. Sending the same message over and over with frequency instills the singular message you want your target to receive. But often anchoring is mishandled. Far, far too often advertisers believe “saving money” (low prices) is the correct anchor. It is almost universally not the correct anchor! Remember “not buying your product,” is so much more inexpensive than any low price you can offer. Never pose that price is any form of barrier to owning your product or you are countering your own sales potential.

If he was inconsistent in his approach, Pavlov would have just frustrated the dog and confused it as to what the bell meant. Lacking frequency by only offering the bell every once in a great while would have allowed the dog the luxury of forgetting the meaning and made the learning cycle incredibly long and nearly impossible.

But giving adequate frequency, a single message (consistency) and a perfect anchor, something for which the dog already had a strong desire, Pavlov created a perfect advertising message, made strong enough in a short time to elicit a physical response to just the sound of a bell.

Earlier I mentioned that advertisers understand consistency and frequency. Yet far too many advertisers have the courage to correctly practice those in their advertising. Instead they feel compelled to go for short-term results (as in very little frequency), or far worse they change tactics over and over trying to find the right formula and in doing so establish no consistency at all. Knowing how to do something does not insure we will do it. After all we know that the only way to lose weight is to burn more calories than we take in each day, yet as a nation over 70% of us (including me) are overweight.

Good advertising practices take some discipline to get started and to maintain. It is not really hard, we just need to determine a strategy and stick with it. But the strategy must employ the three basics.

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It’s Not What You Say

May 27th, 2010

As a sales manager, I continually teach my salespeople that talking is not selling. Selling involves a very specific sequence of steps that are necessary in order to persuade someone to adapt the stance you wish them to take. In short I not too gently let them know that “talking ain’t selling.” No story I know explains the difference any better than the one below.

There once was a devout young man who entered the monastery to face the challenge of dedicated life of a monk. He was always anxious to please and followed the rules to the letter. Late one day during evening vespers in the garden he observed an older monk smoking his pipe during the period of quiet prayer. The young monk thought that such actions were frowned upon so he made mental note of the occurrence, yet said nothing to anyone.

As time passed the young monk routinely observed the older monk smoking his pipe during the evening prayer period. He noticed that the older monk was not an outcast but quite the opposite in the eyes of the monsignor. The younger monk had thought smoking during prayer would bring displeasure and it had in effect caused none whatsoever.

One day the younger monk accorded himself especially well in his studies and was congratulated privately after class by the monsignor himself. Gathering his courage he inquired as to whether he too might be able to smoke his pipe during his evening prayers. The response from the monsignor was instant, his mood changed immediately to very formal as he admonished the young monk for his insensitive request. Obviously embarrassed and feeling as if he totally reversed his favor with the monsignor the young monk apologized and went back to his studies.

That very evening the younger monk again observed the older monk smoking his pipe during evening prayer. After his humiliating experience earlier in the day he could not contain himself and confronted the older monk after the period of reflection. He asked the older monk just how he could get away with such an affront to the lord. He told the older monk about his conversation with the monsignor and the monsignor’s response. The older monk nodded his head, smiled broadly and then he said, “It’s all about how you said what you did. You see, you asked the Monsignor if the lord would mind if you smoked while you prayed. I too, made the request of the Monsignor many years ago, when I asked the monsignor if the lord would mind if I prayed while I smoked. How you say it makes all of the difference.”

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Where do discounts come from?

May 7th, 2010

johnboggs-082502-01largeRelying on price to make your media buying decision is as dangerous as relying on price to decide which surgery you need to fix a failing heart. A tonsillectomy is much cheaper than triple bypass heart surgery, but when your life is at stake, you are not buying solely on price, you are paying for the perfect result. As a matter of fact, I am willing to bet that if the price of heart surgery is not as high as you expect, you will be looking for a second opinion. You see, your life is very important and you want the make sure you pay enough to get well. You will even be willing to pay a little too much in order to make sure you get well. Yet too many advertisers are only willing to pay what they want to pay, but rarely willing to pay what is needed to pay, in order to grow their businesses.

Many never consider the content of their message or how targeted is their media buy. What you say and how you say it is as important as to whom you say it. I often tell the story of the $15 Cadillac. A very rich man bought a new Cadillac and in the first week decided he didn’t like it. The dealership would not refund his money. They would only give him a “trade-in” value for a car less than a week old. In frustration he vowed to sell this new Cadillac in the local newspaper for just $15. The newspaper had a lot of readers. Yet nobody responded to the advertisement. The reason was that the offer was too good to be true. And because it seemed so unrealistic, nobody who read the ad bothered calling even though many of them were interested in buying a car. Your message must convey value for your product in balance with the price of your product. Our consuming public is far too wise to fall for bait and switch ads or other con jobs designed to fool them into acting. Again, a dollar is worth a dollar, as is the perception of a dollar.

When someone offers you a discount, you should ask yourself why. Nobody offers to cut their price without a solid reason. The only time I offer price concessions is for my convenience. When I want to increase the amount of booked revenue well in advance, when I want to increase my dominance in certain business categories, and sometimes when I am training sales people, I am likely to offer price breaks. I trade profitability in some cases for other strategic advantages. Want a discount from me? Offer me a strategic marketplace advantage and you will win my heart. I never discount for someone else’s convenience. Neither do my competitors. Be very wary of anyone who gives discounts because “they like you.” Either you are not getting a true discount, or you were paying too much in the first place.

Remember, too, that by increasing the response to your current advertising, you will reap big sales rewards without any additional investment. Spending time improving and perfecting your sales message will give you bigger payoffs than shopping advertising rates. Minor improvements in your offering can literally double your sales results. And I doubt if shopping advertising rates can ever impact your sales results in a positive way. Find an advertising representative who will invest their time and knowledge to help you create an ad that will work and you’ve spent your time very well. When the ad works well, differences in ad rates don’t seem to matter because advertising then becomes an investment and not an expense.

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Playing not to lose

April 23rd, 2010

John & Debbie Boggs leaving Las Vegas 2-25-01I love sports of all kinds. My sometimes less than understanding wife believes I would be happy sitting in front of the television watching “Collegiate Competitive Paint Drying,” if I could convince some obscure network to carry it during other sport’s off season. There is just something about competition that captures my attention. The drama of two or more opponents giving their all to overcome all obstacles and win the objective keeps me totally engrossed. The bigger the odds against the competitor, the more I am lured to become their fan. This seems to be human nature, to root for the underdog as long as they are not playing your hometown or favorite team. I am told by my lovely wife that my obsession with sports is not one of my more endearing traits as a husband. But it is part of my make-up.

The single facet of competitive sports that I do not enjoy is when a team through its daring, game strategy, and risk taking takes a commanding lead and looks to be the obvious winner, tries to run out the clock and maintain a victorious lead by forsaking the very daring, game strategy, and risk taking that got them the lead in the first place. They go from, a devil may care, leave it all on the field total commitment to “we WILL win because we absolutely know we will be victorious” attitude to “let’s just keep them scoring enough to take the lead in final moments.” When this happens, not only does the excitement go out of the game, but the commitment to winning changes to a commitment to not losing. And far too often, what we fear or try to avoid is exactly what we get. The game is lost because there is only one side remaining that is still committed to winning.

Playing not to lose, eliminates the opportunity for all of those nuances to appear in the heat of risking it all; the impossible catch, the improbably hit, the once in a lifetime effort that makes the evening news or the play of the week. Never do the highlight reels chronicle a “prevent defense,” because trying not to lose is not where the remarkable performance lives.

And so it is with our businesses. When we first began, we played the business game on the edge. We took risks. We challenged ourselves. Our fresh approach flew in the face of those established businesses in our market. It was not game as much as a war that we were determined to win. And, many were intent on changing their little corner of the world in doing so. Life, and business is exciting in times like that. The air is crisper, the sun a little brighter and every breath is sweet. Not everything worked, but we were so intent on winning that a variety specific tactics and strategies were tried until we found the right formula. Moving ahead every day was all that mattered.

But at some point in the life of nearly every business and most businesspeople a change happens. It very much resembles going into a “prevent defense.” We no longer take risks and accept total responsibility for where we are. We begin to blame our results on conditions outside of ourselves rather continue to take responsibility for winning in spite of conditions and circumstances. And our love of the game called “business” dwindles just as my pleasure does when watching a team that goes from winning because of determination to avoiding a loss by trying to keep others from scoring too quickly. It is the determination to win because we will it so that fuels our enjoyment of playing the game.

Get your spirit back. Get back to playing your game to win. Take a chance. Recommit to overcoming all of the odds just because you say so, even in the face of no evidence that you can. Well maybe because there is no evidence you can. Amaze yourself. Amaze your customers. Most of all, devastate your competition. Don’t shy away from playing to win. After all playing to win is what made getting into business all of that fun so many years ago. Playing the game to win is the surest way to do so and an even better way to make what you do more meaningful. Playing not to lose is just the slower route to total surrender.

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Be – Do – Have

April 9th, 2010

Me on Esquire CoverWe all know how to lose weight, consume fewer calories than you burn. It is a law of physics and cannot be circumvented short of surgery to remove a body part. We even know how to run a four minute mile, run 22 feet a second, 240 continuous times. But so very few people know how to be successful.

Many human beings act as if good fortune happens, then we begin doing those things that successful people do and we ultimately end up becoming successful. So we believe in “Have – Do – Be”. Yet we know intellectually that is not the path to where we wish to go. Why is it so many of us keep repeating a process that is proven not to work with hopes that it will be different this time? I think it is has to do with our own lack of confidence. We are looking for outside evidence of who we want to be before we have the courage to declare who we are.

In order to become something we must “Be” what we want to be. That is, our minds must accept that we are the image we desire to be. Once we accept it, then our actions will naturally flow from the perception of ourselves making us “Do” what that image would naturally do. By those naturally flowing actions we will realize the consequences of them and “Have” the result of being that person. If we decide we are lean and in-shape, we will do those things that lean and in-shape people do, which is eat responsibly and be physically active. As we do those things we realize the natural consequences of those actions which is becoming leaner and more in-shape. In a very short time our inner “being” and the outer characteristics we “have” coincide becoming the same, i.e. “Be – Do – Have”.

The same steps lead us to becoming anything else we want. Success? It is easy, just “be” successful and then “do” all of those things successful people do and you will realize the consequences of your actions and cannot escape “having” success. The key here is understanding that we must model exactly those successful traits, not our interpretations of those actions.

It must be true that the egg came before the chicken. As the chicken is the natural consequence of an egg, but an egg is not the natural consequence of a chicken (gender being the variable). So it is in becoming what you want to be. There is a definite starting place. Your existential step into a new reality causes new actions to flow naturally which lead to inevitable consequences of those actions. It all starts with your being. It is a perfect equation. If you want to know what you genuinely think of yourself look at where you are in life. You are not there by mistake or chance. You are there be design, your design. The only question left is if the design that molded your place in the world was an intentional design by you or by created by default of having no direct intention on your behalf.

Does this apply to advertising? By all means yes. Simply substitute your business for you throughout this message and see how it applies.

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Show Up

March 26th, 2010

I’m one hell of a sales manager. I know it. I have the record and credentials that few can match and many would be proud to claim. I am not a playing coach. I would never want Bobby Knight playing guard on my basketball team, but I would kill to have him on my bench coaching. I am not much better player of my game than Knight was of his. But we are students of our individual games and have spent years observing, developing our motivational skills and practicing techniques designed to get the most out of the talent we’ve been able to recruit. We know the tactics, strategies and mechanics of achieving our goals and with a coach’s perspective can win much of the time through the efforts of others.

There are hundred of nuances to winning, but just a very few basics. The most important are having players willing to play and having opponents to challenge you. If a player’s heart in not in the “game,” there is virtually nothing you can do to engage him into the challenge of winning. And even if you are blessed with enthusiastic players they can only ascend to the level of competition with which they are presented. When you play against the worst, you can work hard and become the best of the worst. Or you find ways to play against the best and aspire for the obvious goal. But above all, you must “show up.”
johnboggs--04232003-01

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