Monday, 14 May 2012
Segmentation Mania.
Marketers will try to justify almost any worldview. After all, they reason, if enough people share or can be convinced of that worldview, there'll be a profit in it. But it's a dangerous fallacy. One that fuels a segmentation mania that alienates customers and distracts business focus.
The problem is that every business will develop different ways of imagining market segments, most likely attuned to their own strengths, the egoes of senior executives or the biases of the people charged with developing them. Today, this is increasingly exacerbated by the abuse of data capture and production flexibility.
Data capture that enables the infinite slicing and dicing of customers all too often devolves into character sketches that are more caricature than clarity.
Production flexibility that facilitates customisation all too often leads to attempts to transform product offerings that simply transform featuritis into modelitis.
In this blogpost, the writer shows where that leads in the phone industry and contrasts the efforts of some phone companies to produce myriad phones to slightly different specifications with the singular focus of Apple.
From my perspective, the former leads to customer confusion, reduced product presence and diminished aspirational appeal while Apple seems to eschew that type of micro-segmentation in preference for a bipartisan worldview - people who might want their products and people who don't
and a strategy of making the former as large as they can via organic growth built on product focus.
Businesses operate in a world where so much is possible. The successful ones are those which identify what is necessary.
Wednesday, 9 May 2012
Unintended Consequences Make Better Marketing.
A number of desks will soon feature marketing pitches based on the concept of the "reluctantly wealthy". I know this because the phrase appeared in the comments in Rob's blog the other day and caused quite a stir.
The idea stemmed from the realisation that the wealth of a successful individual is sometimes only a by-product of some other attribute, be that industriousness, creativity or a passionate belief. People see the wealth, but miss what lies deeper.
If you can recognise the unintended consequences in relation to the situation you're marketing, you're likely to appeal to a much more resonant motivation that lies beneath rather than repeat the superficial notion that inhabits your competitors' lowest common denominator efforts.
The idea stemmed from the realisation that the wealth of a successful individual is sometimes only a by-product of some other attribute, be that industriousness, creativity or a passionate belief. People see the wealth, but miss what lies deeper.
If you can recognise the unintended consequences in relation to the situation you're marketing, you're likely to appeal to a much more resonant motivation that lies beneath rather than repeat the superficial notion that inhabits your competitors' lowest common denominator efforts.
Tuesday, 1 May 2012
Political Marketing 101?
Having checked that it was not from the candidate's opponents, I had to wonder if this personalised marketing was an example of subtlety or incompetence. Marketing may often engender indifference, but it always has an impact.
Saturday, 3 March 2012
Hotel Reservations.
A spokesman for the British Hospitality Association recently justified the fact that some luxury hotels charge more for wi-fi by claiming that affluent guests are less likely to complain about the cost.
“It's a commercial decision, and entirely up to the hotel,” he said. “Many owners regard wi-fi charges as a legitimate revenue source, and considering the size of some hotels, it can be a very lucrative one.”
There are two things to say to that:
The person whose tweet alerted me to the article is the founder of a very successful company who was unhappy about such charges on a trip to Australia. He noticed, he complained and then he publicised the fact.
As soon as you start thinking of customers as revenue sources, you're placing the extraction of money ahead of good value service provision. Those customers will quickly notice that your priorities are diverging from theirs and they will divert their money to those of a more customer-focussed competitor.
Everything a business does is a commercial decision. The trick is to make them good ones.
“It's a commercial decision, and entirely up to the hotel,” he said. “Many owners regard wi-fi charges as a legitimate revenue source, and considering the size of some hotels, it can be a very lucrative one.”
There are two things to say to that:
The person whose tweet alerted me to the article is the founder of a very successful company who was unhappy about such charges on a trip to Australia. He noticed, he complained and then he publicised the fact.
As soon as you start thinking of customers as revenue sources, you're placing the extraction of money ahead of good value service provision. Those customers will quickly notice that your priorities are diverging from theirs and they will divert their money to those of a more customer-focussed competitor.
Everything a business does is a commercial decision. The trick is to make them good ones.
Wednesday, 15 February 2012
Marketing Metric Myopia.

The rise of Jeremy Lin continues unabated. Six games, six wins culminating last night in his scoring of the game-winning basket with 0.5 seconds left on the clock.
Ten days ago, he didn't have a contact and had spent two years struggling to find a team. Perhaps, that was because he graduated from Harvard rather than Kentucky, or perhaps it was because he is Asian-American.
As he became an international celebrity, the story was framed as an example of the triumph of perseverance, but it's really a story of managerial myopia. He didn't fit the normal profile, so he didn't get the role.
What is worse, in the age of Moneyball, he didn't get the role even though the metrics had been positively analysed over eighteen months ago.
Knowing your market is crucial, but you need to back up those instincts with a respect for and full understanding of the numbers. If you don't, you lay yourself open to running with the crowd and acting on conventional wisdom.
Monday, 13 February 2012
The Marketing Wisdom Of Yayoi Kusama.
Amongst the weird and wonderful installations at the Yayoi Kusama retrospective at Tate Modern, I noticed the following marketing snippets from a letter she wrote to a gallery owner and one from a press-release.
I believe we should furnish good planning and material to the no-good magazines to make them more interesting, rather than simply avoiding them because they are no good.
They have the handmade look that comes from expert craftsmanship.
Both date from 1968. Both apply today.
Thursday, 26 January 2012
Popularity Doesn't Pay The Rent.
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