The Voice of Demand

Archive for March, 2009

Studeo

What’s a Google Worth?

March 23rd, 2009 - By LJ Jones

What is Google telling your customers about you?

When someone wants to know more about a product or service, especially high consideration products, they often go straight to Google to see what the web has to say about it. That’s because, while your website may have a lot of great things to say, people expect marketing speak on a corporate site and therefore don’t really value it as a trusted source of information.  They do however trust Google to give a more broad, somewhat unbiased, view of whatever they are searching for.

As a marketer and understanding how people turn to Google, I am often amazed at how few companies take the time to Google the name of their own company and see what pops up on the first page of results.

CashforGold made this mistake a few months ago when they ran their high priced Super Bowl ads.  They have since started cleaning up their online reputation, but at the time, the first page Google results had some pretty negative things to say about the company.  That’s a lot of money to spend on an ad, only to have it shot down on the Google results page.

With the huge growth of social media, people will have access to even more information and opinions about a products and company then ever before.  And Google never forgets.  Its important more than ever that companies are aware of what is being said about them and their products on the internet.  It takes a proactive approach to keep up.

Companies should also understand that marketing programs, both online and offline, need to work together.  They need to function as a whole to accomplish the overall objectives.  Work to find a balance, because focusing one and forgetting others, may prove disastrous.

And if you haven’t Google your company lately, do it now.

Studeo

As B2B technology companies leave the early stage of incubation and product development they often struggle with identifying the best market for their offering.   Misalignment between a company’s solution and the needs of the market is the number one reason for failure.   In Tim Draper’s recent post on why startups fail many of the reasons had to do with understanding the market.

  • They aim too high.  A successful start up identifies a narrow niche and expands.
  • They go after too small a market
  • They don’t charge enough, i.e. the benefit isn’t compelling
  • They get broadsided by incumbents, i.e. the point of differentiation isn’t clear

To succeed companies need to simultaneously answer three critical questions:

  1. Who is our customer?
  2. What do they need that we offer?
  3. Why is our answer distinct and better than other options?

In a nutshell it comes down to positioning and branding - the art and science of defining the best opportunity for success.   This is what we as marketers do.

Studeo

Are people actually hardwired to buy guns in times of hardship? Is there some genetic predisposition that makes one person feel the distinct urge to own a gun? Are we talking some survival of the fittest, life-or-death, we need to “bunker down” and protect the fort logic? I hope not.

Since 4thquarter 2008, guns and ammunition sales are through the roof. All major US companies are seeing an increase in sales during this economic downturn. So this year, what plans do you have for your tax refund? 44-Magnum? Or, is the 45 Ruger more your flavor?

Equally alarming, is the increase in sleep-aids, antidepressant medications, fast-foods, diabetes, and bad movies. You like how we slipped in diabetes, huh?

So, as the economy helps a select few, what products are wasting their time advertising? Not one. But there are plenty of brands wasting marketing dollars in places that are far from recession-proof. What marketers must find is an emphasis on their true customers with local media—back to the basics of finding the target audience and earning their respect with sincerity and great deals. No more of this nickel-and-dime attitude! (hint, hint, wink, wink airline industry.) Need a cheap athlete or celebrity for an online campaign that’s recognizable to just the Midwest? Check out Brand Affinity’s platform! Need a localized approach to TV, Print, and Social Media? Turn to companies like Studeo Interactive or Recipe31!

Wal-Mart, an economic barometer in its own right, has the perfect business model during any recession. Beyond the cheap goods, they have a smiling face for a logo; typically become a small town center; have a great pharmacy program and sell guns and ammo to boot!

Great, just what we need—a bunch of Ambien and McDonalds loaded people buying guns and the latest DVD release, Beverly Hills Chihuahua.

Studeo

One of our favorite types of clients is B2B technology for a few of reasons.

  1. There is always a differentiator of some type.  Delivering certain functionality means trade-offs were made in development.
  2. The focus is often on lead generation which is quite measurable.
  3. The decision process is made by a natural community where numerous points of interaction exist.

Our approach is to understand who would be most interested in your product’s advantage and then surround that conversation network with the appropriate proof points.

Technology is not omnipotent, there are always weaknesses to be found in the category leader.   For instance databases may optimize for transaction processing or ecommerce platforms may focus on branded sites.  These decisions allow new entrants to damn them with faint praise while they focus on analytics or supporting multiple channels.

The ultimate marketing objective with any company is to clearly understand the value proposition, positioning, and personality of the brand.  These three elements define the sweet spot and can be defined as follows.

  • Value Proposition: states in financial terms what the buyer is getting from a product.
  • Positioning: defines the market and offers the proof points as to why the product is the right choice
  • Personality: outlines the manner in which the company and product portray itself.

These are not engineering issues or ‘build it and they will come’ but rather branding concepts that underpin the most succesful companies.  They answer: “Why is this product important to me?”