Part 2: Forecasting “Needs” and creating “Solutions”

In Part 1, I talked about the “evil” marketers who create frivolous problems in order to sell unnecessary solutions, as highlighted by a Forbes article focused on the fitness industry. However, there is a difference between “creating” a problem and “forecasting” a need. Marketers should be able to identify needs that people don’t know they have YET, thus informing people of the need and the solution before people identify the need on their own. As long as the product or service adds value to a person’s life, I wouldn’t consider this to be “evil” marketing, as discussed in Part 1.

I think fire is a great example of forecasting a need. The ancient man who discovered fire probably stumbled upon this need accidentally, but he helped his fellow cave-dwellers solve problems that they didn’t even know existed. For example, the heat from fire can be used to cook food, which kills harmful bacteria, which decreases the likelihood of food-borne illness and the undesirable effects of food-borne illness. Early humans did not know they needed to cook their food to achieve more desirable results when eating, but the person who showed them the benefits of fire helped illuminate a need, and solve a real problem. He wasn’t trying to dupe his peers into giving him something in exchange for fire they didn’t need, he was trying to give them a “product” that would provide benefits like warmth, sterilization, power, etc. At the time, humans knew they needed some of these benefits, like warmth, but they didn’t know about the “product” of fire to provide these benefits. Before “forecasting” became popular, I think a lot of these product benefits were discovered by accident, but then disseminated with purpose. Now, marketers make a habit of trying to forecast the next big need, and then create a solution to meet this need before the market realizes the need themselves. Today, this is usually called “innovating”, and falls under the “research and development” category after the initial discovery.

The problem is that now that our society has evolved beyond meeting the basic needs of survival, forecasting the next big need becomes much more complex. Instead of finding solutions to feed people to make their bodies function, we must now find a way to make them enjoy the feeding process. But, it’s not just about the taste of the food anymore, it’s about the other sensory experiences, and the emotions that those sensory experiences invoke. Thus, marketers are trying to find the next emotional need that is related to food. This is where it gets dicey, because it’s hard to define valuable needs at an emotional level. Part 1 of these posts suggests that solutions are not valuable if they don’t meet a need, but in our current world, “needs” are subjective. People “need” to have a high self-esteem, which is often tied to how the world views their appearance. Thus, the fitness industry has come up with “solutions” to meet the “needs” associated with high self-esteem as defined by the world’s view of a person’s appearance. The lines start to blur between offering knowledge of valuable solutions and “selling” through shady “marketing” activities.

These types of discussions provide a glimpse into why the cynics think marketing is “evil” or “hype”. It’s become extremely difficult to decipher and define true needs and problems for which actual solutions are needed. While the Forbes article focuses on the fitness industry and its’ shortcomings, these issues can be seen across all industries and marketing activities. While these issues are difficult to navigate, I feel that we as marketers must do our best to forecast needs and provide solutions to our customers, rather than creating problems and selling “solutions” that exist solely to make money. I believe we’ll improve our bottom line and our world by adhering to the more noble ideals of marketing.

Part 1: Creating “Problems” to Sell “Solutions”

This is also known as “Evil Marketing Hype” by the cynical types, who think that marketers are just trying to dupe them into buying things they don’t need. As mentioned in my “About” paragraph on this site, I don’t believe that it’s a marketer’s job to “sell” things to people, but rather to make them aware of the best solutions to problems they actually have. This article on Forbes struck me as a perfect example of the “evil” marketing: creating “problems” to sell “solutions”. The article discusses how words like “diet”, “firming”, “optimal”, “healthy”, etc. are used to convince people to adhere to certain fads that include high-end food, supplements, gym memberships, and other generally unnecessary products and services you must pay for.

First, “problems” are created when industries use words in a way other than their intending meaning. For example, the Forbes article talks about the words “health”, “diet”, and “optimal”. Essentially, each of these words should mean the actions people take to make their body function at its’ highest potential. However, the fitness industry has turned these words into verbs with very little substance. For example, “diet” should mean the food you put into your body, but the fitness industry tells us that a “diet” is something you do to lose weight. When you start using words without respect to their original definition, you start to plant the idea that there is something inherently wrong with a person who is following a regiment based on the original definition of the word. This progresses into a “problem” that must be “solved”… therefore, the problem of “diet” becomes solved by adding unnecessary supplements or expensive food programs to create “optimal” results. But what is “optimal”? Well, I want to improve my “health”. But what is “health”? A person needs a measurable goal of “health” in order to reach “optimal” results. For example, one could define health as running faster or decreasing body fat by a certain percentage, and then take the necessary actions to achieve this goal.

Second, solving “problems” doesn’t actually add any value. In the article, the author mentions the immeasurable goals of “firming” or “toning”. In fact, muscles can only get larger or smaller, so there’s no value in saying that you want to “tone” a muscle. Are you looking to increase or decrease the size of the muscle? That’s the valuable question. For a solution to truly be a solution, it must add value. To use an example related to the Forbes article, let’s look at the Zone food program. This program aims to deliver “healthy” meals to your home to help you lose weight. In reality, a person can go to the super market and pick up these items and make the food themselves. Thus, the true value of this program is not that the healthy food will help you lose weight, it’s that the home delivery will help you save time and stress. If your goal is to save time and stress when making meal choices, the Zone program adds value. If your goal is to lose weight by changing your diet, the Zone program does not add value to your goal. I also touch on this theme in The Underlying Need post.

The Forbes article and my blog post are not to suggest that people don’t need help obtaining their fitness goals, but rather to highlight the practices of some marketers in the fitness industry. Instead of focusing on real problems with measurable progress toward a specific goal, many marketers create “problems”. These “problems” are followed by “solutions” that add no value to customers’ lives, but exist solely to make money for the company. There is, however, a difference between “creating” problems and “forecasting” needs, as discussed in Part 2.

The 4-Color Process Charge

I came across an interesting blurb in one magazine’s rate sheet for advertisers: computer printing makes the 4-color process only slightly more expensive than a black and white print-job. And, if the rest of the magazine is printed using a 4-color process, there’s really no reason to charge for the “labor” portion of the 4-color fee. Sure, it takes a little more ink to create a 4-color ad, but the huge “labor” fee that used to be charged is irrelevant in the digital age. What’s more, this particular magazine is using this as a cost-advantage in their value proposition! They will let you run a 4-color ad for the same price as a black and white ad.

This is pretty much non-existent in the other magazine rates I’ve viewed, so it definitely piqued my interest. It further piqued my interest regarding negotiations for rates with other magazines… if there’s really very little cost for them to create a 4-color ad for my company, they should be able to negotiate the price with more freedom. I know it’s probably one of those industry secrets that you’re not supposed to know, but one magazine chose to out the truth, giving them a leg up on pricing and trustworthiness. I think it’s a pretty smart play on their part, and I will certainly take a closer look at their stats when creating my budget for next year.

NBAA Annual Meeting and Convention 2010

I arrived back at the office with my brain bursting with ideas after attending NBAA 2010 in Atlanta, GA. The National Business Aviation Association hosted over 900 exhibitors at this year’s annual convention, and I picked up some great marketing ideas for next year!

I saw some brilliant freebies at many of the booths, perfect for the trade show atmosphere. First, one company handed out pedometers with their logos. This is genius, as everyone is trekking around the exhibit hall all day, mentioning how they’ve walked “a ton” during the show. Now, they can prove just how many steps they walked! Second, stain remover pens. PERFECT at a place where people are running around without access to a quick change of clothes, scarfing down food as they walk, and generally being in a situation where they might spill something on themselves. Lastly, I didn’t actually see this one, but it’s been brought up: hand sanitizer with the logo. Again, it makes perfect sense when you’ve got thousands of people shaking hands, grabbing escalator handrails, and handing out marketing pieces. I’m not one to pick up tons of freebies that I can’t use, but these three stood out as useful and intelligent for a trade show.

I was once again struck by how well products display vs. services. Many of the interior manufacturers, engine manufacturers, and airframe manufacturers had full-size plane fuselage, mini-bars, seating, functioning engine models, and parts displayed for attendees to tour and touch. It’s hard to put a tangible item with a service, but I think the ability to engage the sense of touch is key in a trade show situation. These tangible items allow customers to really understand what your company produces, and engages one more sense to make your message stick in their memories. I’m working on ways to improve our ability to engage the sense of touch for our services.

Finally, it was once again impressed upon me that nothing beats being there, face-to-face. You can Skype, Tweet, connect on LinkedIn, FedEx overnight, and have conference calls until you’re blue in the face, but nothing beats a good ‘ole handshake while looking someone directly in the eye. While technology significantly enhances our ability to do business, there’s something to be said for meeting in person, at least once. I know our company was able to make some deals happen in a more timely manner, and we were able to make some connections that we haven’t been able to attain via email.

I’m still processing everything that I saw, heard, and touched at the show, but these three broad ideas really stood out. I’m excited to distill all of my NBAA experiences into a comprehensive strategy to improve our display at next year’s NBAA!

The Cowboys Experience

I was privileged to attend a pre-season Cowboys game in the new stadium last night… AND watch from an event-level suite with reserved parking. It was a treat to say the least, but as a non-football fan, I spent most of my time watching the people behind the scenes and pondering the many facets of marketing and business at the game. Football fan or not, you can’t help but enjoy the experience.  So let’s recap some of the most prominent features of the evening!

First, private suite and reserved parking are a HUGE revenue stream for the stadium, as patrons sign 10 year deals to the tune of several hundred-thousand dollars per year, yielding a couple million bucks for the life the deal. Not too shabby straight out of the gates. Event-level suites come equipped with a personal attendant, theater viewing seats about 30 ft. from the end zone, 3 flat-screen TVs, and a fridge stocked with your choice of beverages and food. The entire suite boasts expensive, high-end items, from logo-bearing bathroom “paper towels” that are more like cloth than paper, to granite counter tops and mahogany cabinets in the mini-kitchen. This particular suite also ranked important enough to warrant having at least 3 account executives or PR people drop by to make sure everything was perfect. It also warranted a visit from several of the Dallas Cowboys cheerleaders for an impromptu photo op, with a free online viewing and printing gallery for the suite attendees. I was also intrigued and dismayed to realize that Pepsi landed the stadium beverage contract, not Coke. I’m a Coke fan all the way, so I was a little frustrated that my favorite soft drink was not available in the suite.

All of these aspects are put together by people in different marketing, sales, customer service, and business disciplines to create a seamless, fun-filled experience. But digging further reveals a pretty complex web of business savvy and creativity. Everything is perfectly choreographed and scheduled, with subtly that most would not notice. When you join the Cowboys team, your life is no longer your own, which leads me to also ponder the corporate culture.  I would love to get a look at the inner-workings of the Dallas Cowboys experience. Here’s a few areas where these business people excelled:

Knowing the customer: The account executive are assigned a small number of suites, so they know the owners by name. We were guests of the owner last night, and the account executive recognized that the person in charge last night was not actually the owner of the suite. She did, however, recognize that person as the person who normally sends her the check for the suite bill. This woman knows all the key players in the organization of the suite owner, and makes sure that every person feels important. She’s on a first-name basis with some of the wealthiest people in the US, and knowing your name is just the beginning of the level of care these people take to find out and meet your needs.

Providing a quality product: Everything in the suite was the best of the best, ensuring that clients feel like they’re getting what they paid for. But it’s not just about the quality of the tangible items, it’s about the overall quality of the experience. If you pay to feel like a VIP, the Cowboys team will treat you like a VIP from the moment you arrive at the parking gate. Private elevators and security personal outside the entrance of the suite help owners feel that their exclusive tickets really ARE exclusive. They want to feel like they’re sitting directly in the action, and with seats right on the field, you can’t get much closer without putting on a helmet. The consistently high-quality product keeps clients coming back for more, by purchasing additional suites and services for future seasons.

Strong branding. As soon as you exit the highway, you start to see signs in Dallas colors with directions to the stadium. The stadium parking signs are numbered in Dallas-blue and adorned with the signature Cowboys star. The suites have logos on everything, and the color schemes match the uniform colors of the players and cheerleaders. The Dallas Cowboys infuse branding to touch every one of your senses; everything you touch, everything you hear, everything you see, reminds you that your experience is being provided by the Dallas Cowboys. You walk away feeling like you’ve made a strong connection with the brand.

I could go on about the cool experience and the complex business savvy of the people who made it all happen, but I think it’s best to encourage you to check out the new stadium if you get the chance. I hear they’re hosting the Super Bowl this year… what a “suite” experience that would be!

How to Sell to Americans

I’ve been travelling a lot over the past few weeks, and I recently returned from a trip to the Dominican Republic. I’m always struck by the different selling tactics utilized in other countries, and I’ve found some common techniques among those selling in the Caribbean. My experience showed me that young men follow you around, constantly ask if you want to buy this or that, and if you touch anything, they’ll pressure you even more than before. They’ve created these “relationships”, where one person will go to the beach and convince you to go down to the shopping center, where he’ll then proceed to lead you to all the shops where he receives commission. It’s so frustrating to be hounded on the beach, on the way to the market, in the market, and on the way out of the market. It makes me, my mom, my sister, and my travelling female companions lose our desire to shop! And, our male companions are annoyed with the need to be over-protective when these “salesmen” come around.

My mom finally gave one guy an extra dollar because he DIDN’T pressure her while she was shopping! And, she told him the reason for the extra money was because he wasn’t constatly bothering her. She gave the guy a free lesson on how to sell to Americans, and it may seem counter-intuitive… leave them alone and let them shop! You would think that after seeing similar behavior every day, the local vendors would learn that in-your-face techniques backfire. It makes a buyer feel like they’re being suckered into something they don’t want or need, which increases the likelihood of post-purchase dissonance. While this may seem high-level, it makes a difference when a group of shoppers returns and tells all the other potential shoppers not to frequent the local market because of the uncomfortable conditions. The vendors would sell more if they backed off a little!

However, I must admit, they have perfected one portion of the selling cycle. They’re good closers, and they know how to ask for the sale, which is a failure of many amateur sales people. When I was a leasing agent, it was imperative to offer a lease application at the end of each tour of the property. If you fail to ask, you often fail to close the sale. While their methods were annoying, the local vendors in the Dominican were on target with their desire to close the sale. Take a lesson from each extreme: be helpful without pressuring the buyer, but have the guts to close the sale when you’ve found a suitable solution to the shopper’s problem.

The Winning Line-Up

Think what you will, but I must admit that I’m a “Grey’s Anatomy” and “Private Practice” fan. And, when a new show, “The Deep End”, premiered on ABC, I started to get hooked on that too. Then, the Marketing wheels started turning, and I thought back to my college days of investigating placement for different SKUs in stores. You want your products at eye-level for the consumer, and you want to cross-sell and up-sell different items together. It seems this is also true in television, and they’ve managed to sell me another show.

“The Deep End” definitely appeals to the same audience as the shows it preceeds in the evening line-up. I think it was an intentional and brilliant move to put it directly before “Grey’s” and “Private Practice”, and core audiences from both shows can start their evening earlier. Also, since it debuted later in the season, viewers can use this show as a “fix” while waiting for the next season of the other two shows. Viewers always complain during the lull between seasons, so giving them a snack should help quell their appetites and their frustration while awaiting the arrival of their beloved shows. It’s a win for ABC, as viewers stay hooked and in-tune with the network. More viewers, more often, equals higher ratings and more ad sales for ABC. This is a pretty obvious connection, and networks do it all the time… I’m just particularly interested because I see how Marketing and strategy worked on a personal level. I always enjoy this realization, as it gives me time to analyze why I feel that way, or why this tactic sold me. As I settle down for my new evening line-up, I have to give some credit to ABC… you pegged me right 🙂

Make ‘Em an Offer They Can’t Refuse

Have I talked about the brilliance of Michael’s? Michael’s is one of my favorite craft stores, and I usually enter with anticipation, and leave with my hands full of wonderful scrapbooking materials. And the best part… my receipt is a coupon for 40% an item, valid for the following week!

Let’s talk about why this is so brilliant. First, it’s a really good coupon, and generally catches my attention. Second, it’s in a form that I usually take anyways, so there’s no extra piece of paper for them to try to force me to take. Third, it’s valid the very next week, so there’s an instant gratification piece for me, and a returning customer each week for them. Fourth, most crafters can’t have just one, so if you can get me in the store again, I will probably buy several items. Fifth, it just makes me happy 🙂 I know those are 5 quick reasons, but such a simple idea really makes me feel good as a crafter, and thoughtful as a Marketer.

I think this is a great example of an offer you can’t refuse that also benefits the bottom line. When you give customers extra reasons to come in to the store or make a purchase, they are much more likely to do just that. It sounds really simple, but you have to balance the amazing offer (aka: giving things away just to attract people) and the bottom line (aka: buy 100 and get 1 free!). I think Michael’s has done a superb job, and I will continue to enjoy this offer I can’t refuse 🙂

The Art of the Upsell

I grabbed pizza at Sbarro during a shopping trip with my sister, and at the end of the meal, I mentioned that Sbarro had started doing what Papa John’s has been doing for the last 10 years: garlic sauce. However, Sbarro is offering garlic sauce as an upsell for $0.65 per container. After finishing my pizza and barely making a dent in the container of garlic sauce, I told my sister that I was pretty disappointed with my decision to purchase the garlic sauce because I didn’t eat enough to warrant buying it. I know it’s only $0.65, but relative to the enjoyment and the total ticket price, that’s a decent upsell. Maybe it’s just me and my Marketing mind, but I had a few thoughts on how they might improve this upsell.

First, I felt they needed to offer two different size containers, one for single slices, and the other for whole pizzas. Since I don’t know their margins, I suggested a price of $0.25 for the single-serve container, and $1.00 for the larger container. I figured that a $0.25 is a no-brainer, and that every customer who likes garlic sauce would be happy to make the purchase. After their meal, they would feel satisfied and compelled to order garlic sauce each time they ate at Sbarro. The same logic applies to those purchasing an entire pizza. An additional $1.00 on a $12+ sale takes very little thought, and increases their satisfaction enough to compel them to purchase garlic sauce as well.

The art of the upsell can be tricky. You don’t want customers walking away feeling uneasy or dissatisfied about their purchase. Instead, you want them feeling that they made a great impulse decision, and due to their satisfaction with that decision, make the upsell part of their regular purchase. When you attempt to upsell, you need to consider how it benefits the customer, not just how it benefits the bottom line. If customers feel cheated or tricked by the upsell, you hurt the possibilities for future purchases. So, how have you made upsells work for you?

The Underlying Need

I’ve seen many examples of misinterpretation of the underlying need, and I just had to post about it. These two examples show a fundamental lack of understanding of the customer’s underlying need.

Recently, I went into Starbucks, and witnessed the following encounter: Starbucks was out of sleeves for hot cups, and the barista was asking the person at the register to double-cup the hot beverages. The person at the register said that she wouldn’t do that because it was wasteful, and that if customers wanted their beverage double-cupped, they could ask for it themselves. The barista replied that it was difficult for her because customers were asking for sleeves, then resorting to double-cups, and it was taking her time to have to go back and forth when 9 out of 10 customers were complaining that their drinks were too hot to hold.

I also noticed this same issue when I went out with a co-worker to pick up some donuts for the office. The donut shop only accepts cash, and he only had a debit card. He decided to go to the convenience store next door to see if they offered cash-back. He asked the attendant if they offered cash-back, and was told that they did not. However, the attendant failed to mention that they had an ATM machine in the back of the store!

So what gives? Why aren’t these people willing to help out their customers? The issue is not an unwillingness to help, but rather, missing the problem. In the first example, the person at the register incorrectly assumed that customers wanted sleeves for their cups. In fact, the customers wanted to keep their hands from burning on their hot beverages. Because heat was the underlying problem, any solution to mitigating the heat was acceptable. In the second example, the attendant failed to realize that my co-worker needed a way to get cash, and that an ATM was a perfect solution for his underlying need. The ability to recognize and meet the underlying need provides an unparalleled opportunity to Marketers.

Consider this: what if you can make your product or service become the underlying need? The “Hungry? Grab a Snickers” campaign is an excellent example of a Marketer making their product the underlying need. On the surface, they acknowledge that the person is hungry, and they are looking to satisfy their hunger. By saying, “Grab a Snickers” they are encouraging the person to associate Snickers as the only solution to hunger. Snickers hopes that the next time a person needs a snack, they will feel that they NEED a Snickers. All companies do this, from car manufacturers, to soda makers. Car makers don’t want people to think, “I need to get from point A to point B, how can I do that?” Rather, they want you thinking, “I NEED a Lexus.” Coke wants you to crave a Coke, and attain satisfaction only after you’ve enjoyed a Coke. They don’t want you to think, “I’m thirsty, I need a drink,” but rather, “I NEED a Coke”. By understanding the underlying need, you can make your product or service become the underlying need. And when your product or service is what a customer NEEDS, you’ll see your sales increase.