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Customer Manufacturing Group
In This Issue
What is a Good Lead?
Who says automated answering systems can't be great?
Focus Matters
Lose-Lose Negotiations
Brand Extensions We Don't Get
More Information 





What Is A Good Lead?
salesfunnel

The Marketing/Sales Disconnect continues unabated. This month's white paper looks at specific issues causing the disconnect in the business-to-business world, with recommendations to close the divide.

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Customer Manufacturing Update
January, 2011
Dear Mitchell,

Happy New Year. We've updated the look of our Updates for the new year. However, we continue with the same focused, ad-free content as always. This month we are looking at the marketing/sales disconnect in the business-to-business environment; specifically as it relates to lead generation. Our new white paper, "What Is A Good Lead," is featured in the column to your left.
Who says automated answering systems can't be great? 

 

We all have experiences calling into companies and getting an "auto-answer" system that sucks. Many of us long for the "good old days" when you got a live human-being that was nice to talk with and useful. Those days are gone for most companies in exchange for the efficiency of the auto-attendant. Well who says you can't have both.

WD-40

 

If you want to experience what we think is an exceptionally well done automated answering system, check out what WD-40 has done by calling 1-619-275-1400.

Focus Matters

 chickfila

KFC (formerly Kentucky Fried Chicken) is the category leader in the fast food chicken category, and they are slipping. They have lost about 6 points of market share in the last five years. Who's coming on strong? Focused, differentiated competitors like Chick-fil-A (Mitch's favorite), as well as Popeye's and Church's. What makes these chains successful while the category leader is slipping?

 

Getting back to the basics of focusing on what makes you different. For Chick-fil-A it's keeping the product on target and providing what their CEO calls "second mile service." For a company whose stores are only open six days a week (never on Sunday) they average about $3M per store in revenue (better than the average McDonald's).

 

And Popeye's? Their Chief Marketer decided they should focus on the food, which is what their heritage of difference was all about. They have a Louisiana heritage and he decided it was time to re-leverage that. Including changing their name to Popeye's Louisiana Kitchen.

 

Meanwhile KFC is shrinking while losing its mojo. Can they fix it. Sure. Established brands have a big head start (look at the sales recovery Toyota is making despite its negative publicity). Will they fix it? Don't know.

 

Our message to you is the same as it has been. Get focused, make sure it matters to your customers, and then stick to it.

Lose-Lose NegotiationLose-lose 

 

You may have wondered why much of the political process results in outcomes nobody really likes. Perhaps it's because the process is based on compromise. What's wrong with compromise you may ask?Lose-loseLose-lose

Lose-lose 

Let's consider the definition of the word compromise: "a settlement of differences by mutual concessions." In other words, each side gives up something they want in exchange for the other side giving up something they want.Lose-lose

 

This is the definition of lose-lose. The idea of a successful negotiation, based on the work of the Harvard Negotiation Project, is win-win. As we teach in our negotiation workshops, most complex negotiations eventually need a compromise to reach a conclusion. However, that is fundamentally different from starting out with compromise as the objective.

 

If you want your business negotiations to result in more success than our politicians seem to achieve, don't start by looking for compromise.

Brand Extensions We Don't Get
Positioning The Battle For Your Mind 
Being believers in Ries and Trout's concepts from their landmark book, Positioning the Battle for Your Mind, we're not big fans of most brand extensions. That being said, some make even less sense to us than others.
In February of last year, we named Dove for Men the oxymoron ad of the Superbowl. In brand presentations Mitch gives he will often discuss another oxymoron: Non-Bleach Clorox (yes it was a real product). 

Some brand extensions appear to make sense and might work, like Gerber for baby clothes. It didn't, but the logic at least followed. And Cat shoes as a licensed brand from Caterpillar is another example Mitch uses in his talks. Earlier this year we were made aware of another brand extension that makes no sense to us: Jacuzzi toilets. Huh?
 

Yes these folks, whose name is synonymous with hot tubs and jet bath tubs, somehow decided that putting their name on a toilet made sense. Not to us. Does it to you? And it gets even sillier. A visit to jacuzzi.com will show you they have also decided to put their name on beds. Do they hope that people will somehow tie the Jacuzzi name to toilets and/or beds? Both? And if they did, then what happens to their position in hot tubs and jet baths?

 

We appreciate your feedback to help improve these Updates. If there are others you feel would benefit from this issue, use the Forward email link just below on the left.

Sincerely,

MGSig
Mitchell Gooze
Customer Manufacturing Group
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Customer Manufacturing Group | 1900 Wyatt Drive, #11 | Santa Clara | CA | 95054

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