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Customer Manufacturing Update | ![]() |
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Dear Mitchell, Here is your January Customer Manufacturing Update. This month we're looking at people management issues to gain a competitive advantage.
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![]() Companies usually expect to get a return on their investment from consultants (all consultant jokes aside), and manage those consultants to try to maximize that return. This is especially true of consultants who charge an hourly fee. However, those same companies don't apply the same standards to their employees' performance. This month's white paper looks at how we might learn from how consultants are managed successfully to help us manage our employees to get better results. ![]()
![]() In the January 14, 2008 issue of Business Week an article entitled "The Computer Is So You" talks about how the PC world is changing and consumers want hardware that makes a "fashion statement." The article cites Apple as having proved that design really matters with its iPods, iPhones and MacBook laptops. Michael Dell states that "We are in the fashion business. The products we sell increasingly make a statement about who you are." Business Week concludes that this phenomenon is a result in a shift from companies buying the lion's share of computers to a more consumer focused buying group. They cite an increase in consumer demand of 19% in 2007 vs. 12% for commercial use. We believe that Business Week has missed what is really going on and that everyone else, with the possible exception of Steve Jobs, is just ignorant of things which drive people to buy stuff. Mitch notes that his first job out of college was as a product engineer for a consumer electronics company. Mitch went to college many years ago and even then he notes that the highest paid, non-executive in the company was the product designer. Not the electronics, but what the product looked like. Why, because design sells. Bang & Olufsen, the high-end Danish consumer electronics company, gets very premium prices because of their design, not their product performance. But wait you say, that just proves Business Week's point, that consumers care about design, but businesses don't. Limited thinking. In truth many engineers will tell you that they selected lab equipment based on external design (assuming the product met their needs) even though it may have cost more money. Smart marketers know that people buy stuff. And people care about design. That does not suggest that design trumps everything or that all people will pay extra for a design that appeals. But it is a proven fact that many people will and many companies do also. Aside from Apple (and Acer with the Ferrari computers), why is it taking everyone else in the PC business so long to figure it out? ![]()
![]() If you have a copy of our breakthrough book, Value Acceleration: Secrets To Building An Unbeatable Competitive Advantage, we have recently released a reading guide for the book. This reading guide is designed to stimulate conversation about the book and its application to your business. You can use the link below to download a pdf version of the reading guide for free. The reading guide won't help you if you don't already have the book and it is not designed to be a synopsis of the book. It's purpose is to help you use the book as a tool to improve your business. If you'd like a copy of the book, you can get it on amazon.com or amazon.co.uk. ![]()
![]() As we have done for the last several years, we will chime in with our thoughts on this year's Super Bowl ads. While the Super Bowl is arguably the most watched television show of the year and does have broad appeal across demographics and geography, we found some interesting posts from people "not planning on watching the Super Bowl." As you might expect, most of them were from outside the U.S. where football is actually another sport altogether. And that version of football may be a better venue for some advertisers looking to get to an international audience. Regarding the ads themselves, we have a mixed bag. Most of us felt that the ads themselves are continuing to be less interesting. Maybe we're jaded, but our fellow watchers had the same comments. You might argue that the super hype makes expectations difficult to meet, but as we heard at least one pundit say before the game, "the Super Bowl is probably the only television show where ratings would decrease were it not for the commercials." As we have said in prior Super Bowl revues, to rate the ads it is important to know the purpose of the ad. And, as usual, the advertisers did not invite us to their strategy meetings, so we have to draw our own conclusions. We assume that the two primary purposes are either to induce trial (get the watcher to try the product or service) or create a continued attachment to the brand/company. Budweiser fits in both categories and is always a major advertiser on the program. We feel their Bud ads are well done to create a continued emotional attachment and this year's "Rocky" themed Clydesdale ad was typical. Their Bud Light ads, which we assume are designed to induce trial, left some of us unimpressed. From the fire breathing ad at the beginning to the flying ad later, these "no longer available benefits" to drinking Bud Light, seemed lame to us. However, some of the other audience members found them entertaining. However, entertainment does not necessarily lead to action. The Audi R8 (which looks like a really cool car) had an add that we think didn't work. If you didn't see The Godfather, or didn't remember that particular scene, the ad made no sense. Why limit your audience in that way? All the guys liked the Victoria's Secret ad, but that's not a surprise. Will it induce action, hard to say. We suggest they could have taken a clue from the Go Daddy folks, who seem to get it right each year. (Their goal is to drive traffic to their site where they can try to sell you on using their services.) This year their ad was banned from the Super Bowl, so they ran an ad telling you that you could see the ad on their website. We suspect they had a LOT of hits. (And once you see the ad, you'll know why there was no way the U.S. censors were going to let that one on the air.) The other company we felt did a good job of entertaining and delivering a message was Career Builder, though their "heart" ad did gross out many women watchers. The Coke ads (especially the balloons) seemed to be a hit with some people as well. At the end of the day, at $2.6M per spot plus production costs, we hope (though we wonder) the companies involved had a set of objectives for their ads; that those objectives tied to overall business objectives; and that they have a way to determine if those objectives were met. Otherwise its just marketing spend, not marketing investment. ![]()
![]() We appreciate any feedback you can provide to help us make sure these Updates give you value each month. Feel free to respond to this e-mail with any comments or suggestions for future topics or ways we can make these Customer Manufacturing Updates more valuable to you.
Thank you for your interest, and if we can provide
any
additional assistance in sales, marketing, strategy, or
innovation to help you increase your sales,
let us know. ![]()
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