Primer On Life-Style Marketing
Objectives of this Primer
• Show how branding simplifies the decision
process, profitability and drives marketing agility.
• Heighten the understanding of effective marketing
practices in a market full of clutter.
• Increase client conversion success rate by targeting
where it matters, their values.
3/22/2016
Vision & Talent
2
About Vision & Talent
•
•
•
•
•
We are in the happiness business
We make people happy
When our friends succeed, they are happy
That also makes us happy
We’ll do everything we can to make our
friends happy
3/22/2016
Vision & Talent
3
Uniqueness of Prospects
•
•
•
•
Fear
Time pressed
Irrational
Age
3/22/2016
Vision & Talent
4
Two Things Service Buyers Have
• Drives
• Needs
3/22/2016
Vision & Talent
5
Things That Customers Buy
Customers will exchange their hard–earned money
for only two things:
1. Solutions to Problems
2. Good Feelings
Michael LeBoeuf
3/22/2016
Vision & Talent
6
Good Feelings That People Buy
1.
2.
3.
4.
5.
6.
7.
Experience
Prestige
Class
Excitement
Comfort
Peace of mind
Convenience
3/22/2016
Vision & Talent
7
Solutions Customers Look For
1.
2.
3.
4.
5.
6.
Increased productivity
Reduced Cost
Yield
Simplicity
Speed
Responsiveness
3/22/2016
Vision & Talent
8
What Brands Do
• Simplify the decision process
3/22/2016
Vision & Talent
9
So In What Business Are You In?
In effect you are in the business of providing
people with excitement and class; you are not
in the business of --- at all!
3/22/2016
Vision & Talent
10
Four Rules For Growth
•
•
•
•
Look from the outside in
Look beyond your industry boundary
Find or create market segments that are growing
Build new core competencies to capitalize on
your new opportunities.
Every Business is a Growth Business
3/22/2016
Vision & Talent
11
The Questions to Ask
• How can I identify or create needs?
• How can I meet them?
• How fast can I meet them?
3/22/2016
Vision & Talent
12
The Customer Needs Framework
New D
C
A
B
Needs
Existing
Existing
New
Customers
3/22/2016
Vision & Talent
13
A: Existing Customers With Existing Needs
• Characteristics
• Inward looking companies abound here
• Mindset of mature industry
• Focus is on core competence, competitor analysis,
cost cutting, reengineering, redesign of org. structure
• Prison for companies that have given up on growth
3/22/2016
Vision & Talent
14
B: New Customers With Existing Needs
• Repositioning Products e.g. Dell Computers
• Geographical Expansion
3/22/2016
Vision & Talent
15
C: New Customer With Existing Needs
Zone of Endless Innovation Usually Brought about by Disruptive
Technology
•
•
•
•
•
•
•
HP
GE Capital
EDS – Computer Integration
Citigroup
Motorola – Cellular Phone
3M – Post-it Notes
Microsoft
3/22/2016
Vision & Talent
16
D: Existing Customers With New Needs
Examples will help bring this segment alive
•
•
•
•
•
Polaroid
Sony Walkman
Nike Athletic Shoes
Equipment Leasing
Courier
3/22/2016
Vision & Talent
17
How Three Organisation Redefined Their
Market
• GE Power System
• Citibank’s Corporate Banking
• Focus : HOPE
3/22/2016
Vision & Talent
18
GE Power Systems
New
Needs
$700bn
Existing
Existing
New
Customers
3/22/2016
Vision & Talent
19
Citibank’s Corporate Banking
New
D
C
$100bn
Needs
Existing
A
B
$4bn
Existing
New
Customers
3/22/2016
Vision & Talent
20
Focus: HOPE
New D
C
4
3
Needs
A
B
1
2
Existing
Existing
New
Customers
3/22/2016
Vision & Talent
21
What You Have To Do
• Define your market
• Remember The Coca-Cola Story
3/22/2016
Vision & Talent
22
The one Question You Must Answer
• In what business are we in?
3/22/2016
Vision & Talent
23
Market Segmentation Methods
• Socio-Economic Grouping (A,B,C1,C2,D and E)
• Level of Affluence (R, VR; MNWI, HNWI)
• Life Cycles (S, M, MWK, R)
• Life Style (YUPPIES, DINKIES, GLAMS)
3/22/2016
Vision & Talent
24
Life Style Groups By Use Of Financial Services
• GIVERS
• TAKERS
• ROLLERS
• MARGINAL PLAYERS
• CLUTTER
3/22/2016
Vision & Talent
25
The Rule of Service Marketing
• The first step in service marketing is your service
• Positioning
• Focus
3/22/2016
Vision & Talent
26
Rule of Marketing Planning
Start with a clean sheet
3/22/2016
Vision & Talent
27
The Traditional Value Chain
Assets/
Core
Competences
Inputs,
Raw Material
Product/
Service Offering
Channels
The
Customer
Adrian J. Slywotzky and David J. Morrison
3/22/2016
Vision & Talent
28
The Modern Value Chain
Customer
Priorities
Channels
Offering
Inputs,
Raw
Material
Assets/
Core
Competences
Adrian J. Slywotzky and David J. Morrison
3/22/2016
Vision & Talent
29
Spend All Your Time With The Customer
• Schedule A
09.00 Internal Meeting
10.00 Internal Meeting
11.00 Internal Meeting
12.00 Lunch
14.00 Internal Meeting
•
•
•
•
•
•
Schedule B
09.00 Customer Meeting
10.00 Customer Meeting
11.00 Customer Meeting
12.00 Lunch (With Customer)
14.00 Customer Meeting
Adrian J. Slywotzky and David J. Morrison
3/22/2016
Vision & Talent
30
Elements of Customer Priorities
• Truly Understanding the Customer
Purchase Criteria
Customer Anger
Preferences
Power
Decision-Making Process
Purchase Occasion
Buyer Behaviour
Functional Needs
Systems Economics
Customer
Priorities
Adrian J. Slywotzky and David J. Morrison
3/22/2016
Vision & Talent
31
How Do You Market Service - I ?
•
•
•
•
•
•
•
•
You are selling a relationship
Go where others aren’t
You don’t have a client, you have a person
Tiny thing, huge result
Ignore industry benchmarks
To err is allowed
Every act is a marketing act
Your Brand Speaks and Breaths
3/22/2016
Vision & Talent
32
How do You Market Service - II?
• Learn from the masters – McDonalds, Disney, Ikea, etc.
• The person you’re competing with is sitting across the
table
• Stand for something greater than yourself
• Focus
3/22/2016
Vision & Talent
33
Great Shared Purpose
• IKEA: ‘’will create a better everyday life for the
majority of people’’
• Disneyland: ‘’makes people happy’’
• Wal-Mart: ‘’business where ordinary folks could
buy the same things as rich people’’
• Charles Schwab: ‘’to be the world’s most ethical
and useful financial services firm’’
• Apple: ‘’Computers for the rest of us’’
• Ford: Democratise the automobile
Read: The Fifth Discipline (Peter M. Senge)
3/22/2016
Vision & Talent
34
What They Said About Ford in 1914
When Ford decided to double the pay of his workers
• Other Industrialists: ‘’The most foolish thing ever
attempted.’’
• New York Times: ‘’He’s crazy, isn’t he?’’
• Wall Street Journal: ‘’The application of spiritual
principles where they don’t belong.’’
3/22/2016
Vision & Talent
35
Ford Ignored Them All And Went On to Become The
Richest Man in The World
3/22/2016
Vision & Talent
Techniques For Influencing People
•
•
•
•
•
•
Reciprocation
Commitment and Consistency
Social Proof
Liking
Authority
Scarcity
Dr Robert B. Cialdini
3/22/2016
Vision & Talent
37
Dale Carnegie on People
‘’When dealing with people, let us remember
we are not dealing with creatures of logic. We
are dealing with creatures of emotion,
creatures bristling with prejudices and
motivated by pride and vanity.’’
3/22/2016
Vision & Talent
38
What’s Important When Customers Choose Their Vendors?
•
•
•
•
Salesperson Competence: 39%
Total Solution: 22%
Quality of Offering: 21%
Price: 18%
Howard Stevens and Theodore Kinni, 2007
3/22/2016
Vision & Talent
39
Definition of the Highly Effective Sales Professional
The Customer Rule
• You must be personally
accountable for our result
• You must understand our
business
• You must be on our side
• You must bring us applications
• You must be easily accessible
• You must solve our problems
• You must be innovative in
responding to our needs
The Sales Professional’s Role
• The Business Agent
• The CEO
• The Advocate
• The Consultant
• The Traveller
• The Troubleshooter
• The Innovator
Howard Stevens and Theodore Kinni, 2007
3/22/2016
Vision & Talent
40
Factors Predicting World Class Sales Status
1.
2.
3.
4.
5.
6.
7.
Personally manages my satisfaction - 59%
Understands our business – 24%
Is a customer advocate – 21%
Is knowledgeable of applications – 19%
Is easily accessible – 10%
Solves our problems – 9%
Is innovative in response to our needs – 6%
Howard Stevens and Theodore Kinni, 2007
3/22/2016
Vision & Talent
41
Importance - Performance Gap*
•
•
•
•
•
•
•
•
Opportunity management: 2.40
Activity management: 2.67
Sales planning and forecasting: 4.40
Territory management: 4.00
Account and contact management: 3.40
Incentive and commission management: 4.00
Contract management: 3.67
Quotation and order management: 4.00
SAP and ASUG, 2009
*Rating Scale: 5
3/22/2016
Vision & Talent
42
Sale Performance Indicator
•
•
•
•
Maintains Industry Knowledge
Achievement Skills
Interpersonal and Communication Skills
Effective Selling Skills
Howard Stevens and Theodore Kinni, 2007
3/22/2016
Vision & Talent
43
The Customer Corridor: Retail Bank
Teller
Transaction
Rate
Inquiry
Monthly
Statement
Account
Application
Statement
Problem
Resolved
Rate
Adjustment
Rate
Adjustment
Teller
Transaction
Customer
Entry
New Job
Competitor
Promotion
Marriage
Children
New
Home
Competitor
Promotion
New
Home
Competitor
Promotion
Children to
College
Retirement
Laurie Liswood
3/22/2016
Vision & Talent
44
The Balanced Score Card
Financial
‘’To succeed financially, how
should we appear to our
shareholders?’’
Customer
‘’To our vision, how
should we appear to our
customers?’’
Kaplan & Norton
3/22/2016
Vision
&
Strategy
Internal Business
Processes
‘’To satisfy our shareholders and
customers, what business
processes must we excel at?’’
Learning and Growth
‘’To achieve our vision, how
will we sustain our ability to
change and improve?’’
Vision & Talent
45
Charles Schwab’s Model
Investors
Mutual Fund
Companies
The Profit Zone
Schwab
One Source
3/22/2016
Vision & Talent
46
Exercise: What will you start doing differently?
3/22/2016
Vision & Talent
47
Choosing Your Winning Team
“Hiring great people is brutally hard and yet
nothing matters more in winning than getting
the right people on the field.”
Jack Welch
3/22/2016
Vision & Talent
48
The Winning Combination
Self
Identity
Organisation’s
Identity
Customer’s
Identity
3/22/2016
Vision & Talent
49
ONE FINAL WORD
The Challenge
• Build a culture of action
• Give everyone a cause
• Drive out fear
• Be authentic
• Reward Behaviour
3/22/2016
Vision & Talent
50
Thank you.
3/22/2016
Vision & Talent
51