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		<title>Of course the campaign is integrated… 3rd pitfall</title>
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		<dc:creator><![CDATA[Paul]]></dc:creator>
		<pubDate>Sun, 20 May 2012 20:08:43 +0000</pubDate>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Achievements]]></category>
		<category><![CDATA[awareness]]></category>
		<category><![CDATA[branding]]></category>
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		<category><![CDATA[integrated campaign]]></category>
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		<guid isPermaLink="false">http://blog.renaud-investments.ro/?p=252</guid>

					<description><![CDATA[<p>Marketing that generates Top Line Revenues implies Marketing initiatives that produce a significant return on the Marketing dollars spent. On the topic of integration, budgets and measuring results I have... </p>
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<p>The post <a href="https://www.paul-renaud.com/of-course-the-campaign-is-integrated%e2%80%a6-3rd-pitfall/">Of course the campaign is integrated… 3rd pitfall</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Marketing that generates Top Line Revenues implies Marketing initiatives that produce a significant return on the Marketing dollars spent.</p>
<p>On the topic of integration, budgets and measuring results I have found that the following pitfalls are common when we think that the campaign is integrated. </p>
<p><u>Common integrated campaign pitfalls.</u><br />
Pitfall #1: Media that don’t reinforce each other </p>
<p>Pitfall #2: Create a budget first, metrics second.<br />
Pitfall #3: Awareness vs. sales<br />
Pitfall #4: Delegate and forget</p>
<p>As a continuation of my last post on the topic of campaign integration here’s pitfall number 3 </p>
<p><strong>Pitfall #3: Awareness vs. sales</strong><br />
Marketing agencies that are ineffective i.e. that struggle to turn advertising, public relations, direct mail, and other initiatives into sales probably will never admit to being ineffective, otherwise they are risking their credibility as ‘creatives’. Think about it. Awards are given out based on an agency’s ‘creative’ talent. Other awards – ‘Effies’ are awards that have proven that a particular campaign had a positive effect in revenues.<br />
Rather agencies like to talk in terms of “image or awareness Marketing”. They will insist that although you can’t measure the performance of what they do, <em>you should rest assured that image is improving, the strategy is catering to your target audience, reach is attained, the awareness of the brand is improving</em> because you selected them<br />
Horse feathers! If you hear such baloney from an agency pitching for your business, instruct them to go pitch for your competitor.<br />
It is possible to design Marketing so that the initiatives and tools you create can generate customer revenues.<br />
What you are looking for in a good agency or in a candidate to run your Marketing department-is that they understand the importance of integrating <strong>all</strong> of your Marketing initiatives.<br />
It’s normal for an agency to spend a lot of time on the creative, either to seize the newly found customer insight and to become unique in the way it intends to address that market or audience or its innovative way to communicate the message.  After all, the client’s brief did say ‘we have to be different’.<br />
By the time they have done the creative there is little time for execution or better still integration. So they go based on what they remember-what they did in the past, as a benchmark. In most cases, the benchmark or what they did in the past carries no tangible metric or measure that is, ‘when we used TV+ Social media we saw a sales report from the client that sales increased by 20%.’ </p>
<p>Rather, they use what they remember, and this seems to be a comfortable fit for what they consider as an <em>integrated campaign</em>. As a result the integration part gets 10% attention of the planning time. No wonder since you too were swayed by the really cool creative that you may have completely forgotten to ask the obvious…how is this integrated?<br />
It’s happened to me on many occasions. I too, got caught up in the ‘sizzle’ of the creative and forgot to ask about integration. Don’t get caught like I did!</p>
<p>The post <a href="https://www.paul-renaud.com/of-course-the-campaign-is-integrated%e2%80%a6-3rd-pitfall/">Of course the campaign is integrated… 3rd pitfall</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
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		<title>Of course the campaign is integrated… next pitfall</title>
		<link>https://www.paul-renaud.com/of-course-the-campaign-is-integrated%e2%80%a6-next-pitfall/</link>
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		<dc:creator><![CDATA[Paul]]></dc:creator>
		<pubDate>Sun, 29 Apr 2012 21:42:25 +0000</pubDate>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Achievements]]></category>
		<category><![CDATA[awareness]]></category>
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		<guid isPermaLink="false">http://blog.renaud-investments.ro/?p=246</guid>

					<description><![CDATA[<p>As a continuation of my last post on the topic of campaign integration, I have found that the following pitfalls are common when we think that the campaign is integrated.... </p>
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<p>The post <a href="https://www.paul-renaud.com/of-course-the-campaign-is-integrated%e2%80%a6-next-pitfall/">Of course the campaign is integrated… next pitfall</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>As a continuation of my last post on the topic of campaign integration, I have found that the following pitfalls are common when we think that the campaign is integrated. </p>
<p><u>Common integrated campaign pitfalls.</u><br />
Pitfall #1: Media that don’t reinforce each other<br />
Pitfall #2: Create a budget first, metrics second.<br />
Pitfall #3: Awareness vs. sales<br />
Pitfall #4: Delegate and forget</p>
<p><strong>Pitfall #1: Media that don’t reinforce each other</strong><br />
TV commercials are not always a success story, i.e. poor creative or a TV ad which was not sales actionable. At times if we are not careful, we can make the same mistake or worse, the TVC does not support other media used (ex. Radio and online). The messages have to be consistent and the choice of media needs to build a 1-2 punch and they must complement each other.<br />
Now we can’t cover every potential combination of one medium plus another but I feel compelled to remind you that when an agency proposes 2, 3 or 4 types of media it begs the obvious question of:<br />
Why combine these?<br />
What proof do we have that the combination of these 4 media will give us maximum impact? </p>
<p>Hearing things such as:<br />
‘In our opinion we felt that these were a good combination’ or<br />
‘This combination always worked well for us in the past’ or<br />
‘We tested this on another client and the results were great’.<br />
These are not justifiable reasons and they are a sure sign that this combination was made in haste or random.</p>
<p>If you are still not convinced, ask the agency or the team making the proposal:<br />
‘The TVC will complement online how?’ or<br />
‘Prove to me that some customers will see the same message in 2-3 different media and therefore creates a call to action?’<br />
‘Explain to me the link between Outdoor and the web banners?’<br />
Here is an example of how various media work together as parts of a sum and feed into each other.<br />
Let’s use a campaign example of a local real estate developer called <em>PrimeProperties.com</em><br />
In addition to print advertising, the agency convinced the company to place banner ads on real estate websites. Additionally, they prompted the company to test TV and radio advertising designed to serve as a lead generator for all segments (residential, commercial) as well as office space prospects, notaries, real-estate agents, bankers, and inspectors.<br />
This broadcast approach served as a “Go-to-the-Web” driver (“Go to PrimeProperties.com now and receive…”) and helped to build a database of leads that could be pursued through telemarketing and mailings.<br />
Instead of sending the prospects a single piece of communication, which is rarely enough to initiate relationships, the agency suggested a multifaceted campaign that called for prospects to receive a personalized introduction letter offering a “Prime customer” gift, a follow-up postcard focused on the property’s key benefits, a direct-response brochure and Go-to-Web card, and a telemarketing call.<br />
Adding any combination of media is easy; getting them to work ‘in synch’ (and therefore generate revenues) is not.<br />
There is still room for taking risks here and testing combinations but there has to be a rationale; assumptions need to be noted and written down as to why you are combining this medium to another at the outset and the corresponding objectives as to why you combined them in such a manner.<br />
By documenting the rationale (memo, assumption or stated objective) you can always go back and validate if the combination of media was successful – this is part of the monitoring function.<br />
If on the other hand the combination was haphazard, not documented and no post  mortem was done, you are simply wasting valuable Marketing funds since you have no way or tool to consider the cause/effect of your media combination.</p>
<p>The post <a href="https://www.paul-renaud.com/of-course-the-campaign-is-integrated%e2%80%a6-next-pitfall/">Of course the campaign is integrated… next pitfall</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
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		<title>Of course the campaign is integrated…</title>
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		<dc:creator><![CDATA[Paul]]></dc:creator>
		<pubDate>Mon, 02 Apr 2012 19:08:45 +0000</pubDate>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Achievements]]></category>
		<category><![CDATA[awareness]]></category>
		<category><![CDATA[branding]]></category>
		<category><![CDATA[budgeting]]></category>
		<category><![CDATA[Direct marketing]]></category>
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		<guid isPermaLink="false">http://blog.renaud-investments.ro/?p=231</guid>

					<description><![CDATA[<p>It’s a common question when the Marketing leader gets ready to listen to a campaign organized by the agency. Is the campaign integrated? To which the agency responds: Of course... </p>
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<p>The post <a href="https://www.paul-renaud.com/of-course-the-campaign-is-integrated%e2%80%a6/">Of course the campaign is integrated…</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>It’s a common question when the Marketing leader gets ready to listen to a campaign organized by the agency. Is the campaign integrated? To which the agency responds: Of course the campaign is integrated…</p>
<p>An integrated campaign as a reminder means that the campaign does not use any one single component of marketing-be it advertising, public relations, sales promotion, or social media but rather a combination of these to make sure that most audiences will be addressed via one media or another.</p>
<p>Putting all your money in <strong>one</strong> medium is likely to falter precisely because it is not supported by a full complement of marketing initiatives that must reinforce one another, producing exponential results such as 1+1=3.</p>
<p>One may ask, “Isn’t advertising in one medium only better than doing nothing at all?” That’s question misses the point. A wiser approach is to ask what can be done to support the investment in advertising so that you achieve the objectives you established at the outset.</p>
<p>What is preferred logically and in an efficient manner is an integrated set of marketing tools and initiatives carefully planned within the framework of a multifaceted marketing campaign.<br />
To do that, you must create a media plan designed to make sure that all of your marketing tactics work together.<br />
Lastly, getting marketing to generate <em>Top Line revenues</em> implies marketing initiatives that produce a significant return on the marketing dollars spent.<br />
In order to give you some direction on ensuring that the campaign is (in fact) integrated, watch out for the following four pitfalls:</p>
<p><span style="text-decoration: underline;">Common integrated campaign pitfalls.</span><br />
<strong>Pitfall #1: Media that don’t reinforce each other<br />
Pitfall #2: Create a budget first, metrics second.<br />
Pitfall #3: Awareness vs. sales<br />
Pitfall #4: Delegate and forget</strong></p>
<p>For the purpose of brevity for today’s post let’s explore the second one:</p>
<p><strong>Pitfall #2: Create a budget first, metrics second.</strong></p>
<p>We’ll spend more time on metrics, analytics and ROI later but a common mistake is to set a budget first, then spend later on a variety of media.</p>
<p>The justification to coming up with a budget first could be:<br />
a)	Slow sales</p>
<p>b)	Competitors are not advertising as much or,</p>
<p>c)	The state of the economy.</p>
<p>In fact even if sales are slow during an economic downturn, they never stop altogether. And if everyone else is cutting back on spending during a recession, this is the worst time to cut back on marketing as is frequently the case. Studies show that businesses that continue marketing through a recession (<em>http://www.renaud-investments.ro/five-steps-on-how-to-survive-in-a-recession-3</em>) are the ones that come out ahead when the economy begins to turn (ex. Orange in Romania).</p>
<p>This could be an opportunity for you to gain market share by being aggressive.<br />
But at the same time coming up with a budget figure out of the blue or out of thin air because sales are down, orders have declined and inventories are mounting is not rational thinking either.</p>
<p>You must consider the following instead:<br />
1)	Who’s the target of the marketing campaign?</p>
<p>2)	Do these initiatives follow the marketing plan?</p>
<p>3)	What goals will this campaign seek to achieve?</p>
<p>4)	How these funds will to help sluggish sales?</p>
<p>5)	The messages used to position your product as <strong>The </strong>customer solution</p>
<p>6)	How the campaign will be measured?</p>
<p>7)	How leads will be captured?</p>
<p>8)	How are you going to monitor the results?</p>
<p>Committing to X million euros to a marketing budget in the blind implies that you will be spending big money without any clear plan for how it will generate additional revenues for the business.<br />
This is certainly not the way to generate Top Line revenues with Marketing!</p>
<p>The post <a href="https://www.paul-renaud.com/of-course-the-campaign-is-integrated%e2%80%a6/">Of course the campaign is integrated…</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
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		<title>Customer Experience &#8211; are we ‘In Synch’?</title>
		<link>https://www.paul-renaud.com/customer-experience-are-we-%e2%80%98in-synch%e2%80%99/</link>
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		<dc:creator><![CDATA[Paul]]></dc:creator>
		<pubDate>Sun, 19 Feb 2012 20:14:30 +0000</pubDate>
				<category><![CDATA[Branding & Strategy]]></category>
		<category><![CDATA[career]]></category>
		<category><![CDATA[customer experience]]></category>
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		<guid isPermaLink="false">http://blog.renaud-investments.ro/?p=202</guid>

					<description><![CDATA[<p>I am always astonished when I see a respectable, consistent integrated media campaign-be it with classical media (TV, print or radio) or online only to see the ‘wheels falling off... </p>
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<p>The post <a href="https://www.paul-renaud.com/customer-experience-are-we-%e2%80%98in-synch%e2%80%99/">Customer Experience &#8211; are we ‘In Synch’?</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>I am always astonished when I see a respectable, consistent integrated media campaign-be it with classical media (TV, print or radio) or online only to see the ‘wheels falling off the cart’ when it comes to a <strong>‘Moment of Truth ‘</strong>. It almost seems like the left hand was not talking to the right hand in the company when it comes to the whole customer experience. In other words the customer facing departments are not In Synch or synchronized.</p>
<p>A moment of truth is that one magic moment where a company is evaluated &#8211; fairly or unfairly for the way its products perform, the way it interacts with the customer, the way it delivers its service or any instant that consumers come across a product/service.</p>
<p>I will always remember a speech given by Tom Peters (Passion for Excellence) where he was emphasizing a moment of truth by using a quote from an airline executive. The executive said ‘Tom, when passengers see a coffee stain on the tray table in front of them, they automatically assume that we have engine troubles.’<br />
A bit extreme but if you follow the logic from the passenger’s point of view, the passenger is thinking ’ Well if they can’t at least take the time to clean the coffee stain, I hope that they are taking the time to service the engines…?’</p>
<p>Another example of moment of truth is when a fellow Romanian steps out his car to help you push your car out of the snow during our last snow storms. You certainly did not expect it but it gave you a renewed reminder on how hospitable Romanians can be when things are not going well.</p>
<p>Here’s my example. Someone very dear to me received this sms for an outstanding balance on her bank card:</p>
<p><em>Cod IDclient XX8644YY: La 06/02/2012 suma datorata este 67.41 RON. Restantele se raporteaza Biroului de Credit.</em></p>
<p>In English the translation is: Client code: XX8644YY, as of 06/02/2012 you have an outstanding amount on your bank card (owed to the bank). Unpaid sums will be reported to the credit bureau.</p>
<p>Context: Yearly fees were accumulating on the card which had not been used for quite some time principally because my friend has other cards and her main banking was done with other banks.<br />
I assume that banks know that clients have multiple cards and accounts.</p>
<p>Assessment: First of all, total lack of politeness. No ‘Dear Mrs’…or ‘we would like to raise to you attention’…<br />
Second no explanation – we go straight to the credit bureau.<br />
Third: No warnings; this came ‘out of the blue’. No emails, no attempt to call and perhaps enquire as to why this was left unpaid or inactive. Perhaps there was some confusion; who knows what can happen when we call customers to get information or feedback!</p>
<p>I sound cynical (my Canadian heritage) but I am mostly disappointed as a marketer!<br />
This bank which will remain nameless spends a tremendous amount of money on Above the line (ATL) advertising in TV, Print and outdoor with 3 Romanian sport figures.</p>
<p>I mean the visuals are nice, creative, welcoming, and frequent and judging by how long these 3 celebrities have agreed to promote the bank, I assume that the campaigns are working. In fact my friend held on to the card (albeit inactive) for that <strong>very </strong>reason…it had a celebrity on the card. Now that is powerful Marketing. </p>
<p>Result:  My friend was upset with the message and she was not aware that the card had become inactive (I mean the last time I checked, we were all too busy to check to see how ‘active‘ we have been with some of our bank cards right!?). This whole matter was unbeknownst to her. She proceeded to call the bank and cancel the cards, rather…all cards, if this is how they treat customers. Ouch!</p>
<p>The solution:<br />
All touch points and customer facing departments have to be in unison, like a classical music symphony. They need to follow the same music, the same beat and the same song book. Product Managers and Marketing communications folks busy trying to get new customers need to be attentive what the customer care staff or retention/loyalty or collections teams are sending to the customer via SMS. This is inexcusable.</p>
<p>Don’t spend money by swaying customers with nice ads with powerful icons <strong>unless you as marketer have complete control of all touch point messages.</strong> We don’t expect Marketing to actually make collection calls however any message, let me repeat ANY message to customers has to be consistent with the brand and what you are conveying to the market.</p>
<p>All customers bring value even if their revenue seemed insignificant. The value they bring is how well they will refer you or speak about how they were treated by your company even if the relationship between your company and the customer had to end. Do it gently.</p>
<p>Your homework<br />
As the marketing leader emphasize upon your peers that interact in some way or another with customers such as Sales, customer care, retention/loyalty, collection, PR and operations that all messages to customers, have to be <u>consistent</u>. Get your team to collect all messages (‘canned’ or pre preprogrammed) that were sent to customers in the past and insist that all need to be reviewed by Marketing.</p>
<p>This may be a long laborious task but well worthwhile the time – you may uncover other ‘shockers’.</p>
<p>As the lead Marketer, make it a point to continuously communicate to all your peers that Marketing <strong>owns</strong> the messages to customers. By rallying your organization with this precious yet effective direction you will be on your way to ensuring that those moments of truth are <strong>fair</strong> ones.</p>
<p>The post <a href="https://www.paul-renaud.com/customer-experience-are-we-%e2%80%98in-synch%e2%80%99/">Customer Experience &#8211; are we ‘In Synch’?</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
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		<title>Market Research can really be fun and interesting!</title>
		<link>https://www.paul-renaud.com/market-research-can-really-be-fun-and-interesting/</link>
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		<dc:creator><![CDATA[Paul]]></dc:creator>
		<pubDate>Tue, 22 Nov 2011 17:30:28 +0000</pubDate>
				<category><![CDATA[Marketing]]></category>
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		<guid isPermaLink="false">http://blog.renaud-investments.ro/?p=117</guid>

					<description><![CDATA[<p>How can I make the topic of Market Research so interesting that it compels you to read this article till the end? I mean let’s face it reading about Marketing... </p>
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]]></description>
										<content:encoded><![CDATA[<p>How can I make the topic of Market Research so interesting that it compels you to read this article till the end?</p>
<p>I mean let’s face it reading about Marketing Research (MR) is about as interesting as watching paint dry! And Market Research is for well… researchers right?  Not true.</p>
<p>Market research is one more weapon in the Marketing leader’s arsenal that when properly used can make a big difference.</p>
<p>In my ongoing attempt to make Marketing fun yet useable in your day-to-day activities let’s start with a few definitions:</p>
<p>First, textbook definition of Marketing Research (MR);<br />
Systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.<br />
Ok, no revelations here but I like the word systematic &#8211; more on that later.</p>
<p>Not all MR firms are created equal. You should know that there are different types of research firms to help you:</p>
<p>1) Specialty-line marketing research firms: These are the ones that conduct Field interviewing services.</p>
<p>&nbsp;<br />
2) Syndicated-service research firms: Such as Mercury Research, TNS Gallup, Business Monitor. They prepare industry wide studies (ex. Omnibus) that any players in a particular industry can buy and get a barometer of what is happening.</p>
<p>&nbsp;<br />
3) Custom marketing (or bespoke) research firm: Examples like IDC Research. With these firms you can ask to find out any information you want, for example “How many pickles per week do obese teenagers consume in Cluj (silly example to make a point). On a more serious note, I was involved in a research project where we had to determine how many large telecoms operators (Orange, Deutsche Telekom, Telefonica, etc) would use a fiber optic cable for data purposes if it was deployed across Russia (hint: that is a pretty long, expensive cable and a bit tough to install in some frozen parts of Russia).</p>
<p>&nbsp;<br />
Primary Vs. Secondary data (Marketing buzz words): That one is easy.  Primary data is when you plan to get information through a research firm; this data is paid for, confidential and remains yours. Secondary data can be found on the www and is also referred to as “Desk research” since its free available information on a particular topic (article, white papers, industry reports, etc).<br />
Marketers collect primary data in 4 main ways:<br />
1) Observation. Xerox used to film users to see how easy it was to find the “print” button on a copier machine. Ever notice why the “print “button is big and green now?</p>
<p>&nbsp;<br />
2) Focus groups (also referred as qualitative data) .This is cool and I strongly suggest that if you are NOT in Marketing that you participate as a listener behind the two way mirror. Essentially a moderator interviews 6-8 people (paid to attend and to give their opinions) to discuss their views on a products. In many case INSIGHTS  are revealed which is another  MR tool. I call these insights the A-HA! moments. The A-HA ! moment is when you hear a customer describe a situation or need from your product or service that you had not realized in the past &#8211; sort of a new way to use your product in everyday use.</p>
<p>&nbsp;<br />
3) Surveys, referred logically as quantitative data. Normally sample sizes are approximately 1200 people with an interviewer conducting a face to face interview or at times using a computer (CATI) or the web to interview people to get their opinions.</p>
<p>&nbsp;<br />
4) Behavioral data. Tesco in the UK through their card memberships and store scanning data can develop a campaign to get you back in the store and buy something based on your  past consumption behavior – that is a really cool too.<br />
OK, so I’ve described some of the basic tools and concepts.</p>
<p>&nbsp;<br />
Here is where I get the attention of both Marketers and non Marketers:<br />
There are times when Market Research cannot /will not help you:<br />
1)    “Analysis Paralysis”. You spend too much time on getting/reading/digesting the data that you cannot make a decision. You often hear ”Well I don’t  know… after all the research told us that we should not go into this business or market “. Solution: Use the research for what it is; additional information about the market and opinions of users. Remember research does not make decisions, leaders make decisions!</p>
<p>&nbsp;</p>
<p>2)    Poor framing of the problem. What was the purpose of research in the first place? Anybody who was read the story and fiasco of New Coke knows that the researchers “asked the wrong question” (see Exponential Marketing, Paul Garrison). It was not a matter of asking if people wanted to change the taste of Coca-Cola but rather asking people what Coke represented for them. Because they were asking the wrong questions this lead to a dramatic change in their strategy and almost killed Coke in the process.</p>
<p>&nbsp;<br />
My suggestion is here is that you need to really sit down and frame the problem carefully. I tell my clients (CMOs) to invest the time in preparing and getting involved in the brief. Only from there can you define a proper brief for the MR firm to get the data you need.<br />
When you invest this time at the outset, you become crystal clear as to what you want and this makes it easier for the research company to find the answers you seek. Besides a few minutes in brief preparation time can avoid damage control in hours/days of research that comes back meaningless (and costly).</p>
<p>&nbsp;<br />
3)    Poor execution. OK you found the best research method, the MR firm and you have spent time preparing the brief.  Then the results come in and your  MR team tells you with a great deal of pride…”look at all the important data” as they plop the research on your desk. You have a natural interest to read it and you think to yourself ‘Hold on here…what are the conclusions?” Once again the team tells you …”Well look at the Executive summary”!</p>
<p>&nbsp;<br />
The next logical question you need to ask the team as a leader is SO WHAT?<br />
The team has to understand that just getting the job done technically is only a part of the execution. They need to read/ understand/process and suggest to the Marketing leader what the company needs to do next. Now that is what I call value add and empowering the team.<br />
Suggestion: Tell the MR team that they have to “live” and understand this new information so much that they have to defend or confirm the direction that this new data is implying.<br />
If they cannot defend the direction then this means a) they have not been empowered to do so or b) they feel that their job as a research team has been completed. In both case this is the wrong answer.</p>
<p>&nbsp;<br />
I promised you earlier that I would come back to the word “systematic”. All that means is that you have 1) a method, 2) the MR resources, 3) your involvement, 4) uncovered insights or A-Ha moments, 5) a plan to execute.<br />
Market Research seems terribly simple to a point where you may feel to put it on Auto-pilot.</p>
<p>However the more time you invest in it, the more you get out of it. At one point when you discover that cool A-HA! moment that can seemingly kill your competitor you will look back and say to yourself…”You know Market Research was fun after all”.<br />
Did I convince you?</p>
<p>The post <a href="https://www.paul-renaud.com/market-research-can-really-be-fun-and-interesting/">Market Research can really be fun and interesting!</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
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		<title>New Product Development(NPD): Develop or die!</title>
		<link>https://www.paul-renaud.com/new-product-developmentnpd-develop-or-die/</link>
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		<dc:creator><![CDATA[Paul]]></dc:creator>
		<pubDate>Tue, 04 Oct 2011 19:35:02 +0000</pubDate>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Achievements]]></category>
		<category><![CDATA[career]]></category>
		<category><![CDATA[Direct marketing]]></category>
		<category><![CDATA[segment management]]></category>
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		<guid isPermaLink="false">http://blog.renaud-investments.ro/?p=104</guid>

					<description><![CDATA[<p>I read an interesting article where David Pogue who in his State of the art column ( International Herald Tribune, Aug 25,2011) wrote a scathing report on the Blackberry Bold... </p>
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										<content:encoded><![CDATA[<p>I read an interesting article where David Pogue who in his State of the art column ( International Herald Tribune, Aug 25,2011) wrote a scathing report on the Blackberry Bold 9900 especially stating that when it came out&#8230;<em>Will anybody care?</em></p>
<p>This guy killed the product and Blackberry. He also reminded us that Nokia once a leader in the mobile handset business has &#8220;given away their business&#8221; to Apple with the Iphone.</p>
<p>I remember a few years back I missed out on an opportunity to meet Jorma Ollila, then CEO of Nokia. This guy was God! He was invited to all the high level, prominent world conferences as a speaker and meeting him was akin to meeting the Pope if you were in telecoms (well OK… not like meeting the Pope but close). Nokia was on top of the world in the early 2000’s where they commanded at least 60% world market share. Then a little company from Canada called RIM was building steam on the market with the Blackberry and it was hailed as the next best thing and you were missing out if &#8221; you did not have a Blackberry &#8220;. Today the table has changed once again: I mean do you know anybody that does not have an IPhone?</p>
<p>Product development and a philosophy of being customer obsessed are key in the smart phone business as you can see. Apple commands now 26% of the app phone market (i.e. IPhone applications) which is the result of 75 million slaving fans and a bottomless app store.</p>
<p>In my MBA classes we talk about &#8220;Gaining momentum &#8211; the Larreche prescription&#8221;. Larreche maintains that momentum is something that can be created by companies and once achieved can be maintained by pursuing a creative marketing approach. Apple, Toyota, Nintendo and Skype have all entered the virtuous circle of continuous growth – &#8220;the momentum effect&#8221;. A company that &#8220;systematically place customers at the center of its thinking and thrives to attain ambitious goals will be able to harness the power of the momentum and deliver exceptional growth.&#8221;( J.-C. Larreche, 2008 the momentum effect: How to Ignite Exceptional Growth).</p>
<p>I could not agree more.</p>
<p><strong>Where </strong>are you sitting right now with product development for your firm and more specifically is the customer the main focus for what you are trying to create, build and sell?</p>
<p>I want to cover the importance of being competitive and aggressive about product development. In my next article I will talk about the actual phases of NPD (New Product Development) but I can’t do that until I raise (read, remind you of the) <em>importance </em>of:</p>
<p>1) Why you always have to be in the right zone of developing enough products,</p>
<p>2) Making sure the customer is at the focus of what you develop and,</p>
<p>3) Kill a product when it has reached the end of its life cycle.</p>
<p>I don’t care what industry you are in. Customers have become used to &#8220;new and improved&#8221; and unfortunately for you they expect it. Are customers rational when it comes to buying new products and knowing which product is best? Answer: <strong>No</strong>. Larreche also tells us that they are not always strictly rational: Their perception is their reality.</p>
<p><strong>Perception </strong>is what drives them.</p>
<p>If your products have not had a &#8220;face lift&#8221; or change and your competition offers something better or perceived better, the customer &#8220;will walk&#8221; in other words he/she will change products.</p>
<p>Lifestyles have changed and are getting faster .People are more are more time constrained and want immediate results. Does your product offer this better than the competition?</p>
<p>As well, your competitors are probably persuading even loyal customers to come over based on better prices. NPD is another reason to help you get away from the &#8220;price trap&#8221;.</p>
<p>Have I got your attention now and are you motivated to do something about NPD?</p>
<p>Here are <strong>10 ways to find great new product ideas</strong>:</p>
<p>1) Run informal sessions with customers</p>
<p>2) Make customer brainstorming a part of company/plant tours</p>
<p>3) Survey your customers</p>
<p>4) Allow time off for technical people to putter on pet projects</p>
<p>5) Undertake ‘fly on the wall’ research from customers</p>
<p>6) Use iterative rounds with customers</p>
<p>7) Set up a keyword search to scan trade publications</p>
<p>8) Treat trade shows as intelligence missions</p>
<p>9) Have employees visit supplier labs</p>
<p>10) Set up an idea workshop</p>
<p>Notice how often I mention often the word <em>customer </em>here?</p>
<p>As a benchmark Toyota employees generate 2 million ideas per year or 35 suggestions <strong>per employee </strong>(er…that is 3 idea per month!). Are you encouraging the same in your firm?</p>
<p>On a closing note, <strong>Bob Bowles </strong>one the best NPD gurus I know in telecoms came to help me with my former employer, essentially a company that could not compete.</p>
<p>We wanted to get NPD off the ground and to become a credible player in the telecoms business, but ironically we found that the team had all the right ingredients. We just needed a structure, a process and the need to ignite the obsession of being customer focused.</p>
<p>The rest is history since my former employer is now competing and generating new products with the same intensity as established industry players. It worked!</p>
<p>NPD starts by having the right mindset regardless if you are a 1 person organization or 5000 people organization. Customers want products that satisfy their needs &#8211; all the time.</p>
<p>Use the ideas above to optimize or kick start your NPD approach. In my next article I’ll go over NPD structure and process.</p>
<p>In the meantime get the Idea generating machine going!</p>
<p>The post <a href="https://www.paul-renaud.com/new-product-developmentnpd-develop-or-die/">New Product Development(NPD): Develop or die!</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
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		<title>Segmentation: Part 2: Who is the customer?</title>
		<link>https://www.paul-renaud.com/segmentation-part-2-who-is-the-customer/</link>
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		<dc:creator><![CDATA[Paul]]></dc:creator>
		<pubDate>Sun, 25 Sep 2011 06:53:49 +0000</pubDate>
				<category><![CDATA[Segmentation]]></category>
		<category><![CDATA[Direct marketing]]></category>
		<category><![CDATA[inbound marketing]]></category>
		<category><![CDATA[permission based marketing]]></category>
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		<guid isPermaLink="false">http://blog.renaud-investments.ro/?p=97</guid>

					<description><![CDATA[<p>Welcome back &#8211; see my last blog for the definition of Segmentation: Def: Identify and selectively target prime groups of customers and potential customers, to understand their preferences and to... </p>
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										<content:encoded><![CDATA[<p>Welcome back &#8211; see my last blog for the definition of Segmentation:</p>
<p>Def: Identify and selectively target prime groups of customers and potential customers, to understand their preferences and to respond with different marketing strategies that are appropriate for each chosen segment.</p>
<p><strong>Case: Market sizing and segmentation </strong><strong></strong></p>
<p>You are the new CEO of Kool Concept, a new residential real estate developer, a greenfield project in the heart of Cluj, Romania. You can basically build whatever you want however you must address potential demand and meet revenue and KPIs (Key Performance Indicators). To be successful your residential concept also needs to incorporate other elements to attract residential owners: Offices, large employers, schools, retail, professionals, fitness centres, public transport etc.</p>
<p>The research company you hired came up with an extensive research and analysis on the addressable market in Cluj:</p>
<p>&#8211;     You know that there is an annual demand in the city of Cluj to build approximately 14.000 housing units annually.</p>
<p>&#8211;     Very few people live in houses currently, but there is high demand for single-family residences. Nearly 35% of those who intend to purchase a residential property would like to purchase a house.</p>
<p><strong>Residential market segmentation</strong></p>
<p>Income is the most critical predictor of ability to pay for say, high-end housing. You assumed the target market for housing in the Kool Concept development is concentrated in the segment &gt;1.100 EUR/ month net income. In Cluj county, there are currently 7.800 households meeting this definition. Ten years from now this is expected to rise to over 20.000.</p>
<p>The research company combined income and social class with other factors to create a more complex, <strong>needs-based segmentation</strong> to help illustrate demand. This analysis delivered the following five segments:</p>
<ul>
<li><strong>“Young Rich Kids”</strong>: Both young and successful entrepreneurs or children of wealthy parents who are studying in Cluj.</li>
<li><strong>“High potential students”</strong>: Students or recent graduates who have an above average level of interest in real estate and improving their living conditions</li>
<li><strong>“First Time Home Buyers”</strong>: Young adults in their mid-20s or early 30s, they have generally started their first home with a partner. Many have young children,  socially and physically active, have cars, are online and sophisticated consumers:</li>
<li><strong>“Happy families”</strong>: Middle-aged families in their 40s, married with older children at home or who have begun to move out of the house. Significant household equity, 80% of those want to buy a house, but only half intend to get a mortgage. Less active than younger segments, fewer tendencies to go out.<strong></strong></li>
<li><strong>“Empty nesters”</strong>: Older couples in their 50s/60s whose children have moved out, accumulated wealth and want to buy a place to enjoy their twilight years. Currently own a place, typically larger, with 3 – 5 rooms. They do not go out to bars and restaurants but enjoy culture, sports matches, having friends over, etc: </li>
<li><strong>“Foreign expatriates”</strong>: Upper managers of current and future investors in Cluj will be present in the city for 2 – 4 years and will demand the highest quality housing.</li>
<li><strong>“Repatriate Romanians”:</strong> Roughly 2.5m Romanians have left the country since 1990. You estimated this could total 3.000 – 5.000 individuals over the next decade.</li>
</ul>
<p><strong>So what? </strong><strong></strong></p>
<p>Now that your research generated what is called “<strong>Primary</strong>” data – data that has been researched and paid for (whereas “<strong>secondary</strong>” data is what you find in reports or the web, usually free), you now know that there are different categories or “<em>segments</em>” of customers to address and target.</p>
<p><strong>Then what?</strong><strong></strong></p>
<p>Once you have done the research and identified the clusters, the next task is to target the right product/message with the best media – this is called  „hunting with a telescopic sight “  vs. using the shot gun approach.</p>
<p>At my last employer ( Romtelecom) once we knew our segments, we targeted them with laser precision by offering them a product which we instinctively knew they would buy.</p>
<p><strong>Results</strong>:</p>
<p>My direct mail (DM) campaign gave me a 12% success rate ( unheard of in the business) versus the usual  2-3% success rate.</p>
<p>Why were we succesful?</p>
<p>1)   We <em>shocked</em>  the segment since they had never received an offer from Romtelecom.</p>
<p>2)   They were targeted –almost a perfect fit<strong> </strong> with the new product (hint:  I could see their consumption behavior based on their current usage).</p>
<p>3)   Our media or advertising campaign was incredibly cheap. Instead of using TV, radio or print, we used envelopes, stamps/courier service and a few follow up calls from the call centre.</p>
<p>All this because we did a bit of research, grouped customers with cool descriptors called <em>segments</em>, made a few assumptions and tested a different approach.</p>
<p>Ta Dah!! There lie the benefits of Segmentation!</p>
<p>Now I also need to admit that our product was indeed what they wanted.  How did we know that?</p>
<p>Well because all that research that we had commissioned in the first phase indicated to me <strong>what</strong> they were interested in buying. All we had to do was to “action” the research with a real campaign.</p>
<p><strong>Q. Cost of Segmentation research.</strong></p>
<p>A. Approx. 60K Euros. Regardless of company size (big or small) the process is the same and so are the results.</p>
<p>If your business is small then you need to use <em>www research</em> (web). The people in your team are critical. Any good Research Analyst will understand Segmentation even if they have never really prepared one. This was the case with my team – we learned from each other.</p>
<p> This segmentation discussion was more in line with the classical approach which stands the test of time.  I would need another article to explain newer approaches to getting primary data through “<em>permission based&#8221;</em> or &#8220;<em>inbound</em>&#8221; marketing”   techniques in order to gather info about segments.</p>
<p>On a closing note, when Jim Hubley our CEO first told me “Paul…Set up segmentation for us” I said  “of course Jim “  walking away and not having a clue how to do this.</p>
<p>After a few months building the team, setting the direction, getting buy-in as well as convincing top management the merits of Segmentation we were able to deliver a 12% sales rate on our Direct mail campaign!</p>
<p>So as you can see it took time but it was an investment in people, processes and getting a better understanding of customer segments which enabled us to become more strategic in our approach.</p>
<p>It paid off…Happy hunting!</p>
<p>The post <a href="https://www.paul-renaud.com/segmentation-part-2-who-is-the-customer/">Segmentation: Part 2: Who is the customer?</a> appeared first on <a href="https://www.paul-renaud.com"></a>.</p>
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