Published on September 11, 2007
Conducting a Marketing Physical John Moore
This presentation was delivered on Monday, Sept. 10, 2007
Conducting a Marketing Physical John Moore
Healthy brands grow. Unhealthy brands wither.
Brands are more than marketing strategies. They are living organisms.
Conducting a Marketing Physical Business Anatomy 101 Basic Vital Signs Leading Causes of Brand Demise The Marketing Physical One Final Thought Q&A
Marketing Hippocratic Oath As marketing professionals, we do not treat a tactical marketing disease, nor a strategic marketing disease …
… but rather a sick brand, whose illness may affect the business’s customers and economic stability. Marketing Hippocratic Oath
Our responsibility includes these related problems, if we are to care adequately for the sick brand. Marketing Hippocratic Oath
We pledge to prevent marketing diseases whenever we can, for prevention is preferable to demise. Marketing Hippocratic Oath
Business Anatomy 101
Human Anatomy Skeleton System
Human Anatomy Lungs innovation creativity
Human Anatomy Heart NO HEART no passion = poor work BIG HEART passion = quality work
Human Anatomy Eyes/Ears Near-sighted see close-up tactical reactionary
Near-sighted see close-up tactical reactionary
Human Anatomy Eyes/Ears Far-sighted see far-away futuristic
Far-sighted solutions in search of problems
solutions in search of problems
Brain think act learn create ideate dream
Human Anatomy Heart Eyes/Ears Brain Lungs Skeleton System
Vital Signs Show a person is alive. Signs change with age, sex, weight, and exercise tolerance Vitals include: heart rate breathing rate body temperature blood pressure
Vital Signs Show how alive a business is. Signs change with age, category, customer base, and advertising tolerance Vitals include: comp sales comp transactions average ticket mktg budget size brand age
mktg budget size
Vital Signs Comp Sales Must surpass the rate of inflation. If not, the brand is dying, not growing.
Vital Signs Comp Transactions If a business has more customers, then it is likely to be healthier. Marketing does its job when it drives MORE customers to buy.
Vital Signs Average Ticket Year-over-year increases in Average Ticket per customer signals a healthy brand.
Vital Signs Budgets Marketing budget as % of sales. (7%+ is unhealthy) Advertising budget as % of marketing budget. (50%+ means“Advertising Obesity”)
Vital Signs Brand Age Vital signs will differ between embryonic brands, adolescent brands, middle-aged brands, and geriatric brands.
Leading Causes of Brand Demise
Leading Causes of Brand Demise HEART DISEASE Typified by brands that lack a clear and compelling reason for existing Symptoms include: declining sales declining transactions inability to attract and keep devoted customers inability to attract and keep quality employees Case Studies
inability to attract and keep devoted customers
inability to attract and keep quality employees
Leading Causes of Brand Demise STROKE Typified by failed business strategies Symptoms include: ill-advised acquisitions far-flung brand extensions poorly defined brand portfolios Case Studies Cologne
far-flung brand extensions
poorly defined brand portfolios
Leading Causes of Brand Demise SCHIZOPHRENIA Typified by businesses being unfocused and having multiple personalities Symptoms include: trying to be all things to all people multiple brand personalities Case Studies Grand Hyatt Park Hyatt Hyatt Regency Hyatt Place Hyatt Summerfield Suites Hyatt at Home
trying to be all things to all people
multiple brand personalities
Leading Causes of Brand Demise ALZHEIMER’S Typified by businesses suffering from short-term memory loss Symptoms include: failure to maintain recaps and records of past promotions repeating the same mistakes Case Studies
failure to maintain recaps and records of past promotions
repeating the same mistakes
Leading Causes of Brand Demise DISCOUNT ADDICTION Typified by businesses relying on gimmicky discounts to drives sales Symptoms include: Constant couponing Employee Discounts 0% Financing Buy 9, Get 1 Free The “Half-Yearly Sale” that happens every month Case Studies
Buy 9, Get 1 Free
The “Half-Yearly Sale” that happens every month
Conducting a Marketing Physical
Marketing Physical The HOPE Method H O P E istorical facts pinions erceptions xpectations
Marketing Physical Historical Facts H OPE Take Vital Signs Comp Sales Comp Transactions Average Ticket “ Custom Measures” 1
Take Vital Signs
“ Custom Measures”
Marketing Physical Historical Facts Take Vital Signs comp sales comp transactions average ticket custom measures 1 H OPE Create a Marketing Dashboard
Take Vital Signs
Marketing Physical Historical Facts List all “Serious”Business Issues Affecting the Brand Competition Macroeconomic Stuff Operational Issues Etc… 2 H OPE
List all “Serious”Business
Issues Affecting the Brand
Marketing Physical Historical Facts Topline Current and Planned Marketing Activities/Promotions 3 H OPE
Marketing Physical Opinions H O PE Review past recaps You do have recaps, right? You are conducting post mortems on promotions, right? (If not, you must.)
Marketing Physical Perceptions The more promoters, the greater a brand grows. HO P E 1 Measure Customer Referrals NET PROMOTER SCORE How likely are you to recommend our brand to a friend?
Marketing Physical Perceptions 2 Measure Employee Referrals HO P E “ NET PROMOTER SCORE” How likely are you to recommend our company to a friend who needs a job?
The Dinner Party Test Marketing Physical Perceptions 3 HO P E
How do your friends talk about your company? Do they talk about the things your company did or the things it does?
Marketing Physical Expectations Determine where you’d like the brand to be in … 6 months 12 months 3 years HOP E
Marketing Physical Expectations Compile a STOP , START , CONTINUE List HOP E
One Final Thought
11,000,000 (plastic surgery procedures in 2006) (from 2005) 7%
Spend marketing dollars to design your products and services better … Not to make your advertising better.
PLEASE AVOID Plastic Surgery Marketing!
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