marketing lessons from outside the a/e industry

© Market Strategy Group, 2014

ZweigWhite Hot Firm + A/E Industry Conference Los Angeles September 26, 2014 Michael C. KraussPresident, Market Strategy Group

Marketing Lessons from Outside the A/E Industry

Imagine Today’s Conversation As A Workshop…

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Interactive. Informal. Like An Hour With Norm.

Except I’m Shorter And Grew Up In A Hollow Tree

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Migrated From Chocolate Chips To Computer Chips

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Packaged Goods Professional Services Thought Leadership

Along the Way I Met These Characters…

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Jock Holliman

Mark Zweig

Rick Lincicome

Carol Sakoian

Jon Buggy

Bill Crockett

Greg Anderson

Today, I Want To Tell You About These Characters….

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Jim StengelBarry Krause Dan PinkBob Mariano Marissa Mayer

Tom Nagle Jeanne Harris Phil KotlerSam Yagan Gary Vaynerchuk

They’ve Taught Me Ten Tips, I Want To Share

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1. Be Authentic

2. Profit Thru Purpose

3. Service is Key

4. Sales is Everyone’s Responsibility

5. Be Innovative

6. Revenue or Profit????

7. Engage with Analytics

8. Better, Cheaper, More Fun (Expensive Isn’t Always Effective)

9. Context Matters

10. Keep Listening & Learning

▪ Marketing BS, Bradley ▪ Can’t Decide Copy Writing Or Account Work ▪ Ran Leo Burnett’s McDonald’s Account During

The “Burger Wars” ▪ President Hal Riney ▪ Architect Of Subway “Jared” Campaign ▪ Launched LiveLab: Enable Marketers To Provide

“Authentic” Content

Barry Krause, Founder and CEO, LiveLab

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▪ Reading Men’s Health ▪ College Student Lost Weight On Subs ▪ Send’s Assistant To Find Jared ▪ Corporate Won’t Bite ▪ “It’s The Real Deal,” Krause ▪ Goes Around Corporate; Pays for Ad

Production Himself ▪ Launches In One Market ▪ Rest Is History…

“A Diet Story Won’t Sell Fast Food…” Subway, CMO

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▪ Four Frames Guide Him With Customers

▪ It’s Not About Monologue From A Brand. It’s About Dialogue And Engagement

▪ Present Yourself in A Manner That’s Useful, Loveable And Real

▪ Trailblazer Helping Clients Determine ROI For A Single Facebook like

1. Be Authentic

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The Key To Marketing In The Digital Age Is To Be Authentic With The Customer.

Communication – Nordstrom Happy – Disney

User Experience – Jobs

“X” Factor – Zuckerberg

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Jim Stengel, ex-CMO P&G

▪ Raised In Lancaster, PA ▪ Grew Jif’s sales 143%; “Choosy

Moms Choose Jif” campaign ▪ Fought The “Cookie Wars” ▪ Became CMO With A.G. Lafley ▪ Studied (With Millward Brown)

Performance Of 50 Companies ▪ Consultant/Professor Anderson

School ▪ Author “Grow”

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1. Discover A Brand Ideal 2. Build Business Culture Around The

Ideal 3. Communicate The Ideal To

Employees And Customers 4. Deliver A Near-Ideal Customer

Experience 5. Evaluate The Business’ Progress

Against The Ideal

Mercenaries Don’t Win.

▪ Started Behind Deli Counter At Dominick’s In 1968

▪ BS UIC Pre-Med; Booth MBA ▪ Back To Dominick’s As Assistant

Manager In 1973 To President & CEO In 1998

▪ Transformed Dominick’s From Hierarchical To Matrix Structure

▪ Left Dominick’s Over Product Quality Fight With Safeway

▪ Today, Mariano’s Replaces Dominick’s in Chicago

Bob Mariano, CEO, Roundy’s Supermarkets

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▪ Listen To Customers ▪ Customers Told Us They Wanted

To Make Fewer Trips To The Store. ▪ Costco = Bulk Items ▪ Whole Foods = Premium Items ▪ Grocery = Staples ▪ Give The Customer What They

Want… ▪ Deliver It “All in One”

What Happened? A Great Strategic Concept…

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“We painted a 3-D picture of the Whole Foods, Costco and local grocery customer

as the target…”

▪ CEO Works In Stores 2 Days/Wk ▪ In Store Service Differentiates ▪ Managers = Servant/Leaders ▪ Treat Employees As Well As

Customers ▪ Motivate Clerks To Engage With

People ▪ Structure The Organization To

Serve The Customer

3. Service is Key

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Everyone From Top To Bottom Of A Business Should Strive To Take The Retail Experience Truly Customer Centric.

“Our managers have to be deeply invested in

their teams…”

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Dan Pink, Best-Selling Author & Former Speechwriter

▪ Truman Scholar At Northwestern ▪ Yale Law School ▪ Speechwriter For Al Gore ▪ Author of 5 NY Times Best-Selling

Books ▪ Named One of The top 50 most-

Influential Management Thinkers ▪ Proponent Of Servant Selling

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4. Sales Is Everyone’s Responsibility

▪ No longer ABC: “Always Be Closing” ▪ In Information Age, Honesty In Selling

Key To Success ▪ Today’s Most Successful Salespeople

Are Service Oriented ▪ Service More Than Just Smiling: It’s

About Improving Others’ Lives ▪ Serve Customers Through Problem

Solving And Problem Finding ▪ “If You Have A Problem,

Call Me On My Cell…”

Servant Selling Is Key To Winning Business In The Information Age.

Giuseppe Farruggio, Owner of Il Canale

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Marissa Mayer, CEO, Yahoo

▪ CEO At Yahoo ▪ Top Executive At Google ▪ Owned The Google Homepage ▪ Thought Leader On Innovation ▪ BA, MS Stanford In AI ▪ Grew Up In Wausau, WI ▪ Willing To “Think Differently” (e.g.

Work From Home)

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5. Be Innovative

▪ Ideas Come From Everywhere ▪ Share Everything You Can ▪ You’re Brilliant, We’re Hiring ▪ A License To Pursue Dreams ▪ Innovation, Not Instant Perfection ▪ Data Is Apolitical ▪ Creativity Loves Constraint ▪ Focus On Users, Not Money ▪ Don’t Kill Projects, Morph Them

Fostering Innovation And Creativity Is Key To Success.

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Tom Nagle, Senior Advisor, Monitor Group

▪ Author “Strategy & Tactics of Pricing”

▪ Professor BU ▪ Founder, Strategic Pricing Group ▪ Former Monitor Group Senior

Partner ▪ Foremost Academic Thought

Leader On Pricing Strategy ▪ Loves to Talk About “Harry” ▪ Was Henry Ford Right?

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The Idea Behind Quad Graphics

▪ Limited Color/Paper Assortment ▪ One Kind of Printing Press ▪ No Special/Custom Deliveries ▪ Solid Value Based Pricing ▪ Required Customers To Work

With Him/Attend Annual Retreat ▪ Continuous/Collaborative

Improvement ▪ Customers Loved Harry

“Accept our limited paper assortments and delivery

schedules and we’ll share the value…”

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▪ Are You Chasing Revenue? Profit? ▪ Marketers Too Often Target Revenue ▪ Disconnect Between Marketers And

Internal Operations ▪ Choose Markets Where Operational

Advantages Exist ▪ Quad/Graphics, Southwest, Walmart ▪ Find Synergy Between Customer

Needs And Ability To Deliver ▪ Focus On Profits

Marketers Should Selectively Target Segments To Exploit Advantages.

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Jeanne Harris, Author & Research FellowAccenture Institute for High Performance

▪ Math Geek, Started As Administrative Assistant

▪ Leading Researcher: Accenture Institute for High Performance

▪ Author “Competing on Analytics” – CIO Insight Magazine, One Of “The

Most Provocative, Engaging Business Books Of All-Time”

▪ Author “Analytics at Work: Smarter Decisions, Better Results”

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7. Engage With Analytics

▪ Analytics Is The Differentiating Factor ▪ “Don’t Cluster Your Geeks In The

Same Place” ▪ Need Entire Organization On Board

With Analytics (Led By CEO) ▪ Successful E-Commerce

Organizations Are Analytical (Google, Yahoo!, Amazon)

▪ Netflix, Proprietary Algorithm That Recommends Movies To Customers

Fusing The Left And Right Brain Is The Ingredient For Success.

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Sam Yagan, CEO, Match Group

▪ Graduate of Illinois Math And Science Academy

▪ Created/Sold SparkNotes With Harvard Classmates; $30 Million

▪ “Better, Cheaper, More Fun…” ▪ Stanford MBA ▪ Co-Founder OkCupid;

$90 Million Exit ▪ CEO Of Match.com ▪ Named One Of Time’s 100 Most

Influential People

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▪ $0 Marketing Budget For SparkNotes, OkCupid

▪ Instead, Connect With Consumers Using New Technology

▪ Cliff Notes Inherently Social; Dating Trends Not Newsworthy, Blog-Worthy

▪ Match.Com: “What Would We Do If We Didn’t Have The Budget?”

▪ “Love” The Data ▪ Never Underestimate The Consumer

Use Data/Tech To Find Ways Of Offering Better Products, Delivering Greater Value, And Engaging Socially (Fun).

So, I’m About To Introduce The Keynote Speaker…

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“Is It Okay If I Swear? If I Use Profanity…”

I’m In The International Ballroom Of The Chicago Hilton And Towers With 1,000 People In The Audience.

▪ Russian Émigré ▪ Email Marketing Transforms

Family Liquor Business $3M to $45M

▪ Wine.com Blogger ▪ Author, Jab, Jab, Jab, Right

Hook: How to Tell Your Story in a Noisy Social World

▪ Founder VaynerMedia Clients:GE & PepsiCo

▪ Angel Investor: Twitter, Tumblr, Uber, Birch Box

Gary Vaynerchuk, Social Media Guru, VaynerMedia

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▪ Gaining Attention Is Today’s Challenge

▪ Relationship Selling Still Works ▪ Social Media = Powerful Tool ▪ Best Used To Build Relationships:

Not To Close ▪ Give. Give. Give. Before You Ask. ▪ Select Right Social Media Tool For

The Task

9. Context Matters

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Tailor Content To Best Fit The Context Of A Particular Social Channel And Its Distinct Audience.

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Philip Kotler, S.C. Johnson & Son Distinguished Professor of International Marketing, Kellogg School of Management

▪ Trained As An Economist Under Four Nobel laureates

▪ Economics MA at U of C; Influenced By Friedman/Stigler

▪ PhD at MIT (Samuelson and Solow on review committee)

▪ Consultant to IBM, General Electric, Sony, AT&T, Bank of America, Merck, Motorola, Ford

▪ Dean of Marketing Academics

A Dozen CMOs Are Having Dinner With Professor Kotler…

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“So Tell Me What Are You Seeing That Is Interesting To

You…”

I’m At Dinner At NoMi Expecting To Hear The Wisdom Of The Sage.

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▪ Build Processes To Gather Customer Insights

▪ Strengthen Brands ▪ Drive New Product Development

Based On Customer Needs ▪ Use New Marketing Technology ▪ Measure Marketing Effectiveness ▪ Improve Marketing’s Working

Relationships With Other Functions ▪ Keep listening

He Shared His Views, But His Desire To Learn Was Key.

A Closing Thought… Marketers Come in Three Flavors

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Strategic Marketers

Marketing Communicators

Sales Enablers

Select Your Marketers Wisely At Your A/E Organization.

I’d Love To Tell You More About These Characters….

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Jim StengelBarry Krause Dan PinkBob Mariano Marissa Mayer

Tom Nagle Jeanne Harris Phil KotlerSam Yagan Gary Vaynerchuk

[email protected]

I Hope You Can Apply Their Ideas

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1. Be Authentic


3. Service is Key

4. Sales is Everyone’s Responsibility

5. Be Innovative


7. Engage with Analytics


9. Context Matters


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