Reputation to Revenue

Words and meaning: The power of alignment

Suzanne Lowe from Expertise Marketing has a great piece in her June newsletter on the importance of developing a common lexicon for marketing and business development in professional service firms. 

Pointing to common misunderstandings between business leaders and partners, on the one hand, and marketers and business developers on the other, about such basic terms as "return on investment," Lowe suggests that PS firms would be well served by investing some time in building common understanding. 

Most important, she says, is defining marketing and business development "up" to a more expansive and strategic view: 

For example, why should the term "marketing only connote the limited activities of, let's say, "building awareness," or "sales support?" Shouldn't the term "marketing be understood to also include targeting and segmentation? Pricing? Client loyalty? In many professional firms, marketing does not mean these latter terms, only the former.

To which I can only say, Amen.

It's not just professional service firms, of course. Many of the technology firms I work with suffer from the same problems: confusion over key terms and meanings, and a general defining "down" of what marketing is all about. And now that we're all trying to sort out the tangled terms of Web 2.0/social media/social networking/social web/marketing 2.0, the language problem is only getting worse.

But all is not lost, and Lowe is right to suggest that lexiconical alignment (if there is such a phrase!) can be a powerful force. 

Just consider the confusion around the word "solutions." If marketing is often misunderstood, the "S" word is subject to near-universal confusion. For companies that have taken the time to work through a solutions lexicon and taxonomy, however, the benefits have been substantial. 

My old company ITSMA has been in the forefront of this work in the IT sector, and my colleagues and I at Solutions Insights have continued to work with clients in similar fashion. In a great many cases, progress on the real work of bringing new offerings to market, sharpening marketing messaging to emphasize strategic business problems rather than product features and functions, and reorienting sales forces to sell integrated business "solutions" could only happen after all the relevant stakeholders agreed on a common language.

As it has been with solutions, so it can be with "marketing." In Lowe's own words, "New understandings of terms will foster practitioners' ability to grow the 'right' revenues, gain meaningful market share, and optimally serve clients."

What do you think?

Photo credit: greebile

Cisco's big think approach to emerging markets

For years, technology companies have tried to move up the value chain by promoting big ideas that would drive sales of premium business solutions rather than commodity products and services. It certainly makes sense, and some firms do it pretty well, but it's easier said than done.

Cisco, according to BusinessWeek, is now trying to move WAY up the value chain, looking to design whole cities, among other "projects" in emerging markets such as Saudi Arabia, Brazil, and Chile.

"Cisco isn't just selling technology. [SVP Paul] Mountford's pitch is that Cisco, more than any other company, can help countries such as Saudi Arabia modernize their economies and become leaders in the Internet Age. The company argues that, by investing in the Internet infrastructure Cisco sells, these governments can better educate their citizens, improve health care, and boost national productivity. They may even be able to create their own tech sectors, giving citizens the opportunity to become  well-paid 'knowledge workers like those in Bangalore or Guangdong, China."

The effort, as tech marketing guru Geoffrey Moore explains, "is getting itself designed into the fabric of these countries' economic plans, because Cisco is helping their leaders imagine the future." 

Pretty ambitious, to say the least. And extremely challenging, as BusinessWeek also notes, given the economic slowdown, intense competition from Cisco rivals, and the tremendous internal demands it places on Cisco's own experts to actually live up to the hype and deliver the goods.

But I think the time is right. For one thing, industry leaders like Cisco need to be bold in finding new markets to maintain their momentum. For another, as I wrote recently about IBM's Smarter Planet initiative, attaching ourselves in an authentic way to causes larger than ourselves (or companies) may well be the most effective way to go to market in this time of great change.

What do you think?

IBM, Obama, and marketing with a mission

Sam Palmisano, IBM's CEO, went to the Council on Foreign Relations this morning to lay out an ambitious program of technology-driven social change and economic recovery. IBM's "Smarter Planet" initiative is a seriously big idea; in Palmisano's words, it's about "infusing intelligence into the way the world literally works—the systems and processes that enable physical goods to be developed, manufactured, bought and sold… services to be delivered… everything from people and money to oil, water and electrons to move… and billions of people to work and live."

Practically speaking, this means investing heavily in technology-based systems and processes to address fundamental global challenges such as energy waste, transportation gridlock, supply chain inefficiency, water shortages, antiquated health care systems, and, perhaps most urgent right now, unmonitored and out of control financial markets.

The initiative is of course self-serving. The more governments invest in technology-based solutions, the more industry leaders like IBM stand to gain. But self-serving doesn't mean it's wrong. In fact, I'd like to suggest that this is actually the best kind of marketing, and the kind that we need to be emphasizing right now:

• It's mission-driven, focused on applying business know-how to clearly felt social problems
• It's inspirational, inviting people to think big
• It's provocative, challenging people to debate the premise, the approach, and potential alternatives
• It's solution-oriented, looking more toward designing sophisticated solutions than pitching specific products or services
• It's believable, because IBM has done the research, is already investing heavily in green technology and services, and has credible offers and capabilities to address at least some of the problems.

My main point here is not to praise IBM, although obviously I do think the effort is praiseworthy. IBM is far from a perfect company and other firms are doing similarly valuable work in these areas. Rather, it's to raise the question about how we go to market in this difficult time.

Most of the marketers I talk to these days are shortening their time horizons, shifting resources (to the extent they still have them) toward lead generation, and doing whatever possible to accelerate immediate sales. This is understandable, and yet...

We've just completed a remarkable election in the US in which a majority of Americans chose a candidate who stared calmly at enormous problems facing our country and the world and said now is the time to think big, to set our sights high, and to be the change. Self-serving? Of course. But it also excited and inspired and mobilized millions of people previously too cynical or disengaged to actually believe that getting involved could make a difference.

Marketing candidates is clearly different than marketing business services and solutions. But exciting and inspiring cynical and disengaged people is actually a pretty good description of the challenge we business marketers are facing right now too.

Palmisano summed it up nicely this morning: "Over the next couple of years, there will be winners, and there will be losers. And though it may not be easy to see now, I believe we will see new leaders emerge who win not by surviving the storm, but by changing the game."

Doing the right thing: Three quick thoughts

Not to be all doom and gloom or anything, but it's hard to talk to folks these days and not get caught up in the economic anxiety and client pullbacks that everyone is dealing with. In that context, three quick thoughts on doing the right thing:

• For clients: It's even more important now to go the extra mile to help out, even if this means advising them to cut back with you or look elsewhere for help. Seth Godin's blog today uses a shoe store story to illustrate the point: If you don't have the right size for a customer, help him find a store that does even if it is a competitor. Pushing him toward the wrong size will only backfire, and helping him out will generate the good will, stories, and referrals that we all need to succeed.
• For prospects: Run fast from any marketing tactic that suggests the barest hint of deception. Buyers in a bad mood jump even faster on attempts to fool them, and have more energy to spread the bad word -- which is then amplified by the online watchdogs. A recent MarketingProfs newsletter tells the tale of how Stokefire, a naming company, sniffed out deceptive blogging practices from a new competitor, blew the whistle, and watched the ensuing storm. As Tate Linden of Stokefire notes, "your brand is who you are when you think no one is looking." If you wouldn't be proud to have the tactic highlighted publicly to prospects and clients alike, don't do it!
• For employees: Communicate openly and aggressively about what's happening with the business, including possible layoffs or other cutbacks. Everyone is talking about it anyway, so being especially transparent lessens the rumor mill and inspires a bit more trust in company leadership. Communications coach Carmine Gallo recalls his own bad experience after 9/11 as a useful intro to some helpful tips in BusinessWeek. To which I would only add that how you deal with any required layoffs is equally critical. Your former colleagues will tell their stories far and wide as soon as they are laid off; stories of honesty, integrity, and fairness are obviously more helpful, or at least less destructive.

It's easy to let the daily struggle overwhelm our knowledge of what's really right. But much as we'll personally regret any "wrong thing" shortcuts in the days and months to come, we're all too likely to suffer the direct business consequences as well.

Marketing after the meltdown

Seven years ago, I published an essay on "marketing priorities after September 11." The financial meltdown is obviously different than the terrorist attacks, but both have created a powerful combination of real economic downturn with deep social and psychological anxiety. Now, as then, the ways that companies respond will matter greatly to their chances for weathering the storm.

Looking ahead, it strikes me that the four guideposts I outlined back in September 2001 are just as relevant today.

Business Value. Clients and prospects facing an even tougher economy will only consider solutions that clearly deliver value. We need to review value propositions and emphasize measurable business value to specific clients in specific industries facing specific economic conditions....

Relationships. A more cautious psychological as well as economic climate will likely put an even greater premium on trusted relationships. We should shift more marketing resources toward existing clients and partners. Many will want to circle the wagons with existing providers, thereby creating good opportunities for deeper client engagements.... By the same token, failures to go the extra mile for existing clients will be even more noticeable than usual. Prospects, meanwhile, are less likely to cast a wide net for new providers. Short lists will get shorter and more difficult for newcomers to penetrate.

Communication. Marketers wisely made immediate and extensive communication, internally and externally, a top priority on September 11 and after. It was critical to touch base, offer condolences and assistance, and reassure friends, colleagues, and partners wherever possible. We should continue with a heightened level of communications to help assuage all the obvious concerns in the days and months ahead.... And we would be well served to keep as much of our real, human voices in this effort as possible. One of the most heartening aspects of any disaster is the way in which pretense is dropped. If we can now move forward with less marketing-speak and more human-speak we'll all be better served.

Community. Crises are moments of truth. With little time and much pressure, corporate reactions generally reflect the organization's core values. The wonderful response to September 11 from our industry was a reminder that the community impulse was not just a passing fancy of the late 90s boom. That impulse is likely to gain more importance in the months and years ahead as employees, clients, and other stakeholders seek trusted partners in an increasingly challenging economic and political environment. Building on current relief efforts with a stronger commitment to corporate ethics, social responsibility, and community engagement - and honestly communicating the implementation of that commitment—should therefore yield substantial dividends in terms of loyalty and professional credibility.

One of the first impulses many companies have in the face of economic crisis is simply to cut back on marketing as an "easy" way to reduce costs. In some cases this may be necessary, although I certainly believe it should be a last resort given the marketing's central role in reassuring customers and finding new sources of revenue.

More important, though, is what marketing actually does in times like these, at whatever level of funding. As I wrote back in 2001: "The old rules of marketing are certainly not irrelevant, and the guideposts noted above would be useful anytime. Now, however, the social and psychological impacts of the attacks in the U.S. suggest that a more personal, human-scale, and community-minded approach to marketing will become critical to success." If the meltdown pushes marketing further in this direction, we can at least consider that the storm cloud of the current crisis may have a silver lining.

How big ideas move the market: New research study

A few weeks back, I mentioned that I was joining with The Bloom Group to launch a major study on how to improve the impact of thought leadership marketing in the IT market. I'm please to announce that we have now officially begun to recruit sponsors for the study -- you can see the details and download the prospectus here.

The impetus for the study comes from our concern that marketing in the B2B technology sector too often gets in the way of buyers actually finding what they need to know about new services and solutions. Rather than helping buyers understand the potential value of their offerings, too many technology and IT services companies get caught up in over-hyping their products, talking past the audience, and failing to connect with buyers who are legitimately interested in new approaches to urgent business challenges.

Given the strong possibility of a major slowdown in tech in the coming months, it seems more important than ever that marketers put their energies into programs that connect with recession-wary buyers on the issues that matter most. Simply put, this means programs that make a credible case for technology solutions that helps companies cut costs and generate new revenue.

Our new study will look ahead in part by looking back. We will explore how some of the biggest management concepts of the last 20 years, such as reengineering and customer loyalty management, were developed and marketed in ways that massively fueled the market for new technology, IT services, and management consulting. In fact, corporate investments in technology to support reengineering initiatives played an important role in helping tech companies get out of the recession in the early 1990s.

As important, we will look at what's working and not working right now in marketing some of today's hot button business technology issues, such as unified communications, green IT, service-oriented architecture, and the extended enterprise. If technology companies are to escape the worst of the coming recession, they will need to do a better job showing customers that investments in these types of initiatives are urgently needed as ways to control spending and/or build near-term growth.

Overall, the study is designed to answer some urgent questions facing technology and consulting marketers as they look at a very difficult market in 2009:

• How are big ideas that drive technology markets created, and how do they gain prominence and credibility in ways that drive sales?
• How can technology and IT services companies collaborate more effectively with outside experts to develop, adapt, and promote new ideas that move the market?
• How can technology and IT services companies organize themselves more effectively for thought leadership research and promotion?
• How can marketers work more effectively across their own organizations to maximize sales related to new business ideas?

If you're interested in finding out more, check out the prospectus or let me know

The training imperative for B2B marketing

AdWeek has a nice article today on how some of the large agencies are revamping their training programs to help attract, develop, and retain talent. A survey of agencies include DDB, Deutsch, Grey, McCann Erickson, and Saatchi & Saatchi highlights a number of new initiatives in such hot areas as mobile marketing, social media, and data analytics. "The overall consensus among the sample," according to AdWeek, "is that general 101-level classes aren't nearly enough in an industry that is defined today mainly by change."

It's a welcome recognition of the importance of continuing professional development, and one can only hope it is paralleled by a similar recognition within B2B marketing departments as well. Even if the agencies do catch up with the most needed skills and approaches, they are still only as good as the companies that hire them.

The problem on the corporate side, of course, is that training and professional development is the first thing to be cut when budgets tighten up.

For companies marketing to other businesses there is another problem, too. Even in today's services-dominated economy, most marketing training reflects its roots in consumer products.

A look at the recent Economist Intelligence Unit report on "10 Megatrends in B2B Marketing 2008" (PDF) suggests some critical areas for investment in training B2B marketing professionals, such as:

• Thought leadership marketing
• Executive relationship development
• Integrated marketing
• Marketing to emerging markets
• Web 2.0 and social media
• Marketing ROI

All of these areas are quite different in marketing to businesses than marketing to individual consumers -- and all are areas that the B2B marketing organizations I know, at the very least, are still early in developing.

As the pace of change continues to accelerate, B2B marketing leaders would do well to follow the lead of some of their agency partners. DDB, for example, sets aside a firm percentage of gross revenue each year for employee training, and that percentage has climbed steadily in the last few years, according to global chief communications officer Jeff Swystun -- who told AdWeek very clearly, "To us this is a huge investment in our ongoing relevance and differentiation."

Green reporting on the rise, but accountability lags

Forty of the Fortune 50 companies now showcase reports on their sustainability performance, but many focus more on promoting their green credentials than on providing real accountability to the public, according to a new study by the PR measurement firm KDPaine & Partners. You can download the full report here (PDF).

The good news is that most of the largest companies have begun to take seriously the need to report on their own environmental impact, and most of them present information on their environmental goals and policies, energy consumption, waste disposal and recycling, and air emissions. Most also highlight the environmental awards they have won. The numbers are up significantly from even a few years ago.

On the other hand, far fewer of the companies provide real context for their reporting to help readers understand how well the companies are actually doing, and only a minority involve third party stakeholders in the reporting process, which would tend to add credibility to their efforts. As the study authors noted, "environmental sustainability reporting is still being used as a public relations tool to position companies favorably on environmental issues, rather than to hold companies accountable to stakeholders for environmental performance."

For those interested in improving their own environmental reporting, the report provides a useful Environmental Reporting Transparency Scorecard which outlines a wide array of factors used in ranking the Fortune 50. (Many more useful resources are available from the Global Reporting Initiative, the leading international network for corporate sustainability reporting.)

Marketing leaders desperate for digital know-how

A new survey from Sapient shows that CMOs and other senior marketers are looking anxiously for help from their marketing and advertising agencies with almost all things digital. (Thanks to Marketing Charts for the pointer.)

The survey asked more than 200 marketing execs what they want from their agencies over the next year, and "greater knowledge of the digital space" topped the wish list. Just as important, the top ten on the wish list was rife with digital concerns, including leveraging online communities, more savvy in social media, and, interestingly, evidence that the agencies themselves are using the social media (Facebook, Flickr, etc.) that they recommend to their clients.

Here's the whole list:

1. Greater knowledge of the digital space
2. More use of "pull interactions"
3. Leverage virtual communities
4. Agency executives using the technology they are recommending
5. Chief Digital Officers make agencies more appealing
6. Web 2.0 and social media savvy
7. Agencies that understand consumer behavior
8. Demonstrate strategic thinking
9. Branding and creative capabilities
10. Ability to measure success

For now, according to Sapient, many marketers are looking to change agencies. This is great news if you're an agency with legitimate skills at the cutting edge -- although the frustration marketing leaders have with current agencies suggests this is easier said than proved.

It's not just a question of the agencies, though. Marketing leaders need to find more skilled in-house staff as well. And they need to get more up to speed themselves, if only to make sure they're choosing  the right agency and managing them effectively.

Ultimately, we all need to find even more time to keep up with the accelerating pace of change in digital tools and tactics. That's not easy when we're already stretched to the max. But I can't see another way. Can you?

New Booz CMO points the way for B2B

Booz & Company today announced that Thomas Stewart, former editor  and managing director of Harvard Business Review, is joining the management consulting firm as Chief Marketing and Knowledge Officer. It's not exactly a typical career progression for heads of marketing, but it is an important sign of the growing importance that companies are placing on winning with ideas.

Consulting firms like Booz are have always used their expertise as a core asset in marketing and selling their services. But putting a career writer, editor, and intellectual like Stewart atop marketing and into the C-suite reflects the growing understanding, especially in B2B and services companies, that marketing organizations as a whole need to think and behave more like publishers than promoters.

Developing, disseminating, and stimulating conversations about ideas and information that relevant audiences want is the future for B2B and services marketing; figuring out clever ways to get them to pay attention to your standard pitch is the past. Kudos to Booz for taking the logical but still unusual next step in marketing's evolution.