Posts Tagged ‘radical shift’
I recently read an article in BusinessWeek entitled, “Tech: The Return of Risk Taking”, it’s one of the most positive technology outlooks I’ve seen in a very long time. Basically Spencer E. Ante says, the worst of the recession is over, and it’s time to prepare for better times. Mark M. Zandi chief economist of Moody’s Economy.com predicts 4% growth for 2010 and 10% in 2011 for IT spending. Although I love the optimism, I’m not sure these outlooks are fully in tune with the entire market, especially the mid and small segments.
So, the good news is that something is finally happening. Dell’s deal for Perot Systems, eBay’s sale of Skype and Adobe’s purchase of Omniture are certainly big events for the technology sector. When the big brands start to excite the market with M&A activity, the middle market and smaller entrepreneurs will follow, but that’s going to take a while. Mid and small markets were hit the hardest and are still in operational reduction mode or stabilization mode to say the least.
But if history is any indication, America’s “Challenger Brand” mentality will prevail, especially in the technology market. I personally believe America’s brand reputation is tied not only to our technological competitive advantage but also to new and ever changing communication technology. American brands must continue to reinvent themselves to remain competitive. Lets face it, the days of leading the global economy with automobiles, electronics and commodity products are over. New rules have taken over old business models. Now, it will take courageous companies that are willing to create new categories, competitive advantages, and most importantly to take “Risk”. Yes, Risk.
This brings me to a discussion that’s happening in most every board room these days. When should we begin to reinvest in gaining market share and presence? Whether you drive your organization from an intuition based philosophy or calculated strategic risk mentality, one thing history can prove is that companies that get out into the market first reap the rewards. You’ve heard all the case studies, but do you really buy into the concept and are you willing to bet your reputation on it?
Bottom line, executives and marketers must be ready for recovery and smart ones will take risks to get ahead quicker. Nothing like a recent history lesson to validate a concept; As the 2001 recession began to rebound, the tech marketing investment (around 6%) outpaced the growth which ended up close to 5%.
That said, I have put together a quick check list of things for you to consider in your 2010 planning.
1. Create multi-tiered strategies with quarterly triggers:
Face it, the days of creating three to five year plans are a thing of the past. New rules dictate visibility of 24 months with a clear picture of Risk/Rewards scenarios on a quarterly basis. Build strategies that err on the aggressive side but are sound enough to back off slightly (no, not stop) if your budget gets squeezed.
2. Stay away from the “start and stop” syndrome.
Don’t put your company in jeopardy by starting and stopping your programs. You send mixed messages to the market and employees. It’s critical to maintain confidence in the leadership team during these uncertain times. Changing your mind frequently is not a strategy.
3. Get the story right. Bring it to life.
Remember, somebody has hit the restart button. Most markets have changed. Be realistic. You must have a clear picture of your current value proposition and competitive advantage. Don’t put your company in jeopardy by investing in a tired or irrelevant message. Stop, reset and validate your brand strategy. Maybe it’s time to rebrand?
4. Try something new. Nothing risked is nothing gained.
If there was ever a time to try something new, it’s now. Consider the change in customer behavior. The social media explosion has brought the customer smack dab into the middle of the conversation and influence. Traditional media ideas have left the building. Every statistic you read says digital media budgets are replacing traditional spending. If you have not built a new customer acquisition strategy/plan with digital media as a primary consideration, now is the time. The risk of not trying is greater than the risk of getting out there.
5. Re-Energize your staff.
It goes without saying, these are tough times for the American workforce. Your employees are under incredible pressure to deliver. Most organizations look radically different than they did a year ago. Take time to fully engage employees in your strategy and align them with the key initiatives. (Alan’s engaging employees slide deck). You can’t afford the risk of having employees standing on the side lines. Celebrate every positive win possible and remember when business was fun.
So, as 2010 approaches, what’s your risk strategy? What will you be doing differently? I’d love to hear?
In the B2B technology world the question of “who is control of the company brand” would be answered traditionally in the following ways: Some experts argue the brand should be “owned” and controlled by the CEO and supported by marketing. Others believe it is the role of marketing to control the brand strategy and delivery of communications. And others might say the entire organization controls the brand. Bottom line, it really depends on the philosophy of the CEO or executive team. But I’d like offer a different point of view.
There has been a radical shift over the last several years as to who is really controlling brands. And if you guessed the customer and market, you are well ahead of the game. Think about it, the days of push marketing and market acceptance have been replaced with customers’ ability to socialize experiences, thoughts, interactions, perceptions and ultimately recommendations. You’ve seen all the facts: advertising is down, newspapers are going out of business, commercials are being passed by with digital recorders and trust with brands is at an all time low. I read an outstanding article in Strategy+Business entitled The Trouble with Brands. Its findings are sobering to say the least.
Bottom line, customers and consumers don’t trust most brands. Chalk it up to years of companies, brands and people not being honest, not delivering on their promises and the media sensationalizing every negative opportunity possible. B2B customers and consumers have now become a driving force as it relates to real time brand communication and interaction. One wrong slip up and your company or brand is spot and center. On the other hand, it also presents wonderful opportunities for brands to answer the new needs of communication and brand affection. Corporations and brands must face the fact that the ability to control their brands’ destiny must be managed a different way. So, how can B2B companies take advantage of this new era and reap the benefits of these new opportunities? Here’s a few things to think about:
1. Establish your philosophy. Let it be known.
First of all, CEO’s and executive teams need to get together to discuss this radical shift and determine a point of view and philosophy that can help drive the actions of the entire organization. Keeping your head in the sand is not a strategy. Understand the evolved Eco-System. If you haven’t mapped out the entire eco-system and how it has changed and is being influenced, you may want to step back and take a fresh look. You’ll be amazed at how customers navigate through the sea of choices and information. How you engage and respond is critical.
2. Start stretching. You’ve got to be flexible.
Just like any well conceived plan, you’ve got to have a fresh strategy that addresses these new rules. You can’t rely on traditional approaches alone. Remember, things change incredibly fast in this new world. You must develop a strategy that’s flexible and adaptable.
3. Take advantage of change. Rethink your structure and resources.
Step back and consider how you are structured to address the market. Now is the time to rethink the most effective and efficient ways to meet these new needs. Look for talent that understands this world or get your people educated. Your beliefs will set the tone for change.
4. Content is King. How interesting can you be?
No matter what anyone tells you, no program will be successful unless the content is relevant, fresh and impressive in the eyes of the audience. This is your point of differentiation. Your voice. Choose your content wisely. Pushing bad content or boring communication works in reverse. It will damage your brand.
It’s not often we experience such radical shifts in business (especially in communications). Use this opportunity to create something wonderful. It’s your role to inspire people to think about the possibilities. Put your toes in the water, create amazing things. Amaze yourself.