Fairchild on marketing in practice

Copyright © Fairchild

Marketing the real deal:What they don’t teach you

Maastricht, September 23rd, 2010

100923-mar-mu-guestlecture

2222 Copyright © Fairchild

Content

1.Real marketing

2.How it works

3.How we do it



Who am I?

Rutger Teunissen

Brilliant but useless

UM Graduate 2006

ThesisThe influence of regulatory focus

on ad effectiveness



Who am I?

Unilever

Why? Cause I needed it

Consultant @ Fairchild

Owner of www.klusopedia.nl



How to find me?

[email protected]

www.twitter.com/rutgerteunissen



My first lesson

LESSON 1: Most companies don’t really execute their strategies. Most of them hardly form strategies.By September, most managers rush to write their annual plans to get the budgets they need for things they can’treally foresee now. Is that strategy by the book?

What could I, a young kid that just graduated, teach all of these professional companies, these big brands, with big buildings, and guys with expensive suits?



My second lesson

LESSON 2: You guys are smart, critical, some even creative. Wow! As soon as you enter the business world you’re going to rock and change the world. Lesson: Marketers aren’t worth anything without finance, process owners, IT, R&D etc. All those people that eat pizzas and like programming difficult formulas.

I invented Youtube and Facebook… Sadly, there were 10,000 people just like me. Only two actually launched Youtube and Facebook. I wasn’t one of them.



Let’s get started!

LESSON 3: It’s not about performing your task the best, but it’s about being attentive, and being able to quickly respond to changes in the environment. That’s marketing in practice.



1. Real marketing



What the textbooks say…

Operational Excellence

‘best total cost’

Product Leadership

‘best product’

CustomerIntimacy

‘best total solution’

ProductDifferentiation

CustomerResponsive

OperationalCompetence

© Treacy & Wiersema




Marketpenetration

Marketdevelopment

Diversification

Productdevelopment

Existing products New products

Newmarkets

Existingmarkets

© Ansoff




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40%40%40%40%

20%20%20%20%

0%0%0%0%

2000200020002000

19 jaar en jonger19 jaar en jonger19 jaar en jonger19 jaar en jonger 20 20 20 20 ---- 39 jaar39 jaar39 jaar39 jaar 40 40 40 40 ---- 64 jaar64 jaar64 jaar64 jaar 65 jaar en ouder65 jaar en ouder65 jaar en ouder65 jaar en ouder

2006200620062006 2010201020102010 2020202020202020

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< 50K< 50K< 50K< 50K 50K 50K 50K 50K ---- 75K75K75K75K

75K 75K 75K 75K ---- 100K100K100K100K > 100 K> 100 K> 100 K> 100 K



What practice tells us



So real marketing is…

Hard work!



Return On Customer Interaction

Real marketing is…




The way you pick up the phone



Real marketing is… The box your product comes in




The tone of voice of your website




Parking space at your company




Selecting the right customers



LESSON 4: Marketing is about focusing on creating best value for your (potential) customers. Sometimes marketing is picking up the phone just a bit sooner, sometimes it’s designing a box that is so cool, everybody keeps it. It’s about delivering on all aspects of business, how small they might be by themselves.


Marketing is not all about theory. It’s not about Ansoff, or Porter or putting segments into a tiny box.



It’s not the best strategy that winsbut the best execution



2. How it works



Knowing your customerDefining strategyCreating a unique propositionDelivering the frontDelivering the back

2. How it works



Knowing your customer



Knowing your customer

LESSON 5: Research is paper, make sure you really know your customer. So don’t become the marketing manager who hasn’t seen his customers in twenty years.



Defining strategyA well-formed strategy results in healthy growth.



Defining strategyAbility to differentiate? Choose your own spot.



A good strategy = your one message

to the world



NOT



NOT



NOT



Defining Strategy

What about ?



Creating a unique proposition



What is a proposition?

Your key promise based on these questionsWho is your customer?What are his deeper needs?What do we promise/what is our solution?What are the advantages for the customer How is it unique?What proof do we have?

ProofPromiseNeedsInsight



Wake up!



InsightWith a regular alarm, people wake up disruptively

NeedsWaking up on time, stress less and full of energy

PromiseWaking up naturally

ProofLights slowly go brighter, relaxing nature sounds Academic research

Why are cu

stomers

happy to pay 7

-8 times a

s much?

Proposition Wake-up light



Nespresso voorbeeld erin zetten in zelfde format als v wakeuplight



Nespresso voorbeeld erin zetten in zelfde format als v wakeuplight

InsightPeople enjoy the luxury of barista coffee and complain about their home coffee

NeedsPeople want to enjoy special coffee experiences at home

PromiseEasily the best coffee experience at home. What else?

ProofTaste and luxury flavors, usability, design, George Clooney, price, distribution

Why are cu

stomers

happy to pay 7

-8 times a

s much?

Proposition Nespresso



Delivering the front

So we have this nice marketing strategy and proposition. How do we realize it?



LESSON 6: Promotion is only the tip of the Iceberg.



Brand

What tastes better?

Brown drink with• Carbonated water• Sugar• Color• Food acid• Plant extracts• Flavor• Caffeine



Brand

Use every chance to spread the word



Product

Be remarkable!





Price

If you become a customer now you will get a discount of 200% and you will get a free laptop

As soon as you are our customer we will ignore you and let you overpay on our products and services and make the terms so impossible you won’t be able to get out.

Question: Existing customers pay more than new customers. Is this way of doing viable business on the long term?

?

ULTIMATE DEAL



Customer contact

I’m becoming a client

I’m a client

I’m leaving



Customer contact

Every interaction is a business opportunity

€ €€

€€

€

Client complains

Client has suboptimal

productClient is

‘single fuel’

Client does not log in

Client asks a question about moving

Client ends contract

Energy Company Customer Lifecycle



Customer contact

SaleRetentionService requestCross- & up-sellPaymentInformation requestComplaint

€

€

Every interaction is a business opportunity

LESSON 7: Companies need a holistic approach to customer contact where sales and service unite.



Customers

All customers are differentAll people want to be treated differently



Not all customers are desirable customers



Delivering the back



Delivering the backShould marketing be a department or a method?

Department Central in organizationManages and delivers to other departments

MethodEveryone is a marketerEvery department has a marketer that guards customer’s wishes



Delivering the backPeople are crucial

From IT to the receptionistFrom the CEO to the call agent

EVERYONE should work with the customer in mind and according to the proposition they made!



3. How we do it

1. Making decisions

Marketing strategy & tactics

2. Making it work

Operations/Project management



Return On Customer Interaction



Our Job - Clients

Nederland



Frequently Asked Questions

How can we introduce our product to the

premium segments?

How do we develop a loyalty program?

How can our business become profitable?

Our market is declining.How do we create growth?

We have a promising concept. How do we enter the market

successfully?

How can we make our customer contact

profitable?

How can we segment our market and differentiate our

offering?



We are strategic marketing consultants

Just like you we are academics

The point



We love strategy, new theories and complex decisions

However…



Results are achieved on the work floor,

in practice.

Marketers need to combine strategic insight

with entrepreneurial pragmatism.





Energize Your BusinessEnergize Your BusinessEnergize Your BusinessEnergize Your Business

Hooghiemstraplein 142 3514 AZ UtrechtThe Netherlands

P.O. Box 13321 3507 LH Utrecht www.fairchild.nl

T +31 (0)30 254 5680 F +31 (0)30 254 5736E [email protected]

Rutger Teunissen [email protected] Schoemaker [email protected]