Marketers such as Philip Kotler consider that their role is to satisfy customer needs profitably. This is certainly not what the majority of people who work in business consider as marketing. When we think of the marketing team we think of the guys who commission the advertising and brochureware, and typically they don’t actually create these themselves. If anything, the way marketers describe themselves is the end-to-end of what any business does and is the remit of everyone in the organisation. So why do we need marketing people?
It is of course the products and services that we develop that satisfy our customers’ needs, and the efficiency with which we do this that determines whether we are profitable or not. This marketing agenda is everyone’s, but in particular is the remit of the business owner or CEO.
The CEO delegates certain of his responsibilities to different functions within his business… and this is where the rot starts for marketers. The marketing guys are given the remit to do the market research, feeding the results back to the other parts of the business. What do our customers think of us, how is our brand perceived, how do we fare in relation to our competitors? They also have responsiblity for communicating the product benefits and brand messages back out to customers.
But there’s something missing here. That is, everything that happens between the data coming in from customers and the messages going back out to them – none of this is the remit of the marketing people. They have influence on what happens but no control. The other functions in an organisation see the marketing guys as the pink and fluffy guys who “do the ads” so their suggestions about product or service improvement are not taken particularly seriously.
Impotent marketers meanwhile are left frustrated since they can’t deliver on the things they know their customers need. So they spend time creating messages that seek to differentiate their products or services in ways that often have nothing to do with their products or services. They create whole new worlds of attachment to brands that have nothing to do with the products or services they sell. Nike’s “Just Do It” message is ridiculously detached from the clothing they sell which was stitched together in cheap-labour factories throughout Asia.
Marketing has already fallen on its own sword when we judge a company by its clever ads rather than the clever products it makes.
Marketers have a choice today. Stick to the knitting and re-brand yourselves as the Research and Advertising Team, so that everyone is clear on your role within the organisation. Or, shift your remit to include ownership for the entire customer relationship. Now this might sound great, but be warned that it involves spending lots of time understanding the more gritty parts of how your business works, including service, process, product, technology, capabilities, resourcing, costs and profitability,.
Either way, it is time to lay Marketing to rest.
Today sees the launch of Your Country Your Call – a global initiative that seeks to make a tangible impact on Ireland’s economic future.
Your Country Your Call, the brainchild of Martin McAleese the president’s husband, is essentially a competition to come up with the next big thing that will positively impact on our country’s future. A website has been established to allow people from anywhere in the world to submit short proposals for things they believe could “game changing” for Ireland.
The proposals are not for new business initiatives, but for new country initiatives. When I think about the kinds of things that we could compare this with I’m thinking of the IFSC in Dublin, Airport Duty Free first implemented in Shannon, or indeed the proposed Global Cultural University which Dermot Desmond is currently exploring.
The carrot here for people to submit proposals is to be part of the story of Ireland – to be able to tell your grandchildren that you were a major part of what Ireland became in the early part of the new millenium. There is also a prize of €100,000 – no strings attached.
The two winning proposals will each receive funding of €500,000 and be supported by a range of experts from across relevant industries, coupled with assured legislative changes as required. The proposal winners are welcome to participate in the implementation of the proposal but they will not receive any other remuneration other than the first €100,000.
So that’s €100,000 to write a few words down on a piece of paper with some great ideas for Ireland. Not bad.
An exciting potential of this initiative is the possibilities of creating new synergies of innovative and thoughtful people collaborating to achieve something truly worthwhile for Ireland. We had talked here on this blog about the need for an innovation network in Ireland. This is what you were looking for. Sure there is a defined time-limit on this, but I am hopeful that something more permanent may emerge.
President Mary McAleese is the patron of this iniative:
This is going to be big so do join in to be part of something historic. Visit the Your Country Your Call website to find out more.
Forrester released some research findings recently (which I received through a Tealeaf webinar this week) that highlighted how improved customer experience delivers on the bottom line. 67% of large US corporations use customer experience to differentiate themselves from their competitors. Customers who have a better customer experience with a particular company are more willing to buy more products from them, less likely to switch and more likely to recommend the company to others. Forrester estimate that for a $10 billion company, improvements in customer experience could result in an additional $284 million in revenue. Work out what that means for your business.
Caelen King of RevaHealth published an excellent case study on Tuesday outlining how they reduced the bounce rate on key landing pages by 6% by tweaking the layout of the content. RevaHealth is a business directory specialising in businesses in the medical sector. Customers come to their website in order to find information about medical services in their area. By understanding the different expectations of customers coming from Google versus other pages on their own website, RevaHealth learned that they needed to offer a different customer experience in each scenario. The pages are now tweaked dynamically based on where the customer has come from. As a result, not only did the bouce rate decrease by 6%, but the conversion rate increased by 14%. Nice work.
In what was a good week for discussion about improving conversions, Barry Hand brought to our attention how the official Vancouver Olympics store increased revenue by using “split” or “A/B” testing. This type of testing sees you offering two different versions of a page or website to different cohorts of customers. Analysis of any differences in behaviours then clearly shows what elements of the design of each page works better. One version of the site, the one they went with in the end, had 12% less bounces; a conversion rate that was 0.6% better; and an overall order value that was 5% better.
Critical in both of these examples is the understanding that improving page design to provide better customer experience can have a real and immediate impact on your bottom line, AND the need to have appropriate metrics and measurement tools in place.
An Irish government report was issued today that made for pretty depressing reading when it comes to progress in broadband rollout in Ireland. Why is this important to us here? Increasingly, all of our businesses are depending on having access to low-cost high-speed internet access and more importantly that our customers have this access. When people have access to decent broadband they do more online and stay online longer.
Internet speeds in Ireland, while they have increased slightly, are still “substantially below the fasts speeds available to customers in other OECD countries” according to the report. Furthermore, “businesses in many other countries can also procure significantly faster services for the prices charged in Ireland”.
The fastest home broadband in the country of just 20 mb/s will only become available to 35% this year with the rollout of UPC cable services. However the cost of this service is the same as the average cost of a 50 mb/s service across the OECD countries.
We are “3-5 years behind our competitor countries” in terms of the rollout of infrastructure that is capable of supporting our needs into the futures.
The criticism is very clear. We have a poor service at rip-off prices.
So what’s to be done?
The report suggests that regulation governing Eircom should be relaxed to incentivise them to invest further in infrastructure. Currently they are limited to earning a mere 10% return on investment. Would it not be reasonable to increase this to 12-13% on the basis of a more extensive rollout of a high bandwidth network?
The report also recommends that regulation which limits co-investment by a number of operators in infrastructure be “lightened or removed”. So currently, if BT and Vodafone seek to come together to jointly build a single infrastructure which both can use in the future, the regulation currently in place is not conducive. There are obvious economies of scale in allowing competitors work together to invest in better service.
Since more and more broadband is being accessed via mobile and wireless spectrum there is a clear call that with the switch-off on analogue TV planned for 2012, that the released spectrum be made available to broadband services as a priority. Worryingly, there is a clear indication in the report that the government doesn’t actually believe the 2012 deadline will be met.
A final recommendation made in the report is that the State should take an even greater role in infrastructure development. It cites the success of the rollout of MAN’s in certain regional towns where the speed of access provided by the new competitors exceeds that of Eircom. Ironically the government which sold its broadband infrastructure with Eircom six years ago is now seeking to build a brand new infrastructure based on other State assets such as the electricity network.
Perhaps it is time for the government to step in and relieve the ineffective incumbent of their responsibilities and take back control of such a critical national asset.
David Putnam, former film producer, turned politician and now chairman of FutureLab was in Dublin today talking about Ireland’s education needs to succeed in the Digital Age. His entire speech is available on the IIEA website, but the following is worthwhile reproducing in print (highlights are mine):
As I’ve already said more than once, we in the developed world find ourselves in an environment literally saturated with moving and interactive images.
They’re the dominant means by which we increasingly learn about, understand, and hopefully begin to make sense of the world.
In this new learning environment, mass participation in creating, sharing and reusing images has taken hold on a quite extraordinary scale.
Our task is surely to harness these opportunities in addressing the many longer-term challenges we as a global and Digital Society now face.
And with these ‘long-term’ objectives in mind, allow me finish with a bit of ‘tough love’, by re-stating what I see as the crucial the lessons we, living here in Ireland, ought to have absorbed during these past thirty years in considering what makes for a successful society, in an ever-more difficult world.
Firstly, like it or not, getting education right is the whole ball of wax.
Secondly, and at risk of repeating myself, no education system can be better than the teachers it employs, and the standards it demands of them.
Thirdly, teacher training in a digital age has to be viewed as an entirely non-negotiable and continuing process.
The commitment of Governments and individual head teachers to the best possible quality of teacher training, along with regular, preferably annual, time out for professional development, must be absolute.
Fourthly, there needs to be an undisputed global acceptance of the importance of the education of women.
Educated women are the fulcrum around which can be built educated and healthy families – and those families will invariably be smaller, and better cared for.
There is no magic in any of this.
Fifth: this country enjoyed an early and inspired start due to the courage and foresight of Donogh O’Malley who, in the mid-sixties, when it was thoroughly unfashionable, laid the foundations for a strong public focus on education.
His tragic early death was another in Ireland’s history of all too often losing the best of its leaders before they’re able to complete the goals they’ve set themselves.
But it was largely thanks to his imagination that this country was able to take an early lead in encouraging its young people to embrace what was at the time not just new, but largely untried technology.
The gamble paid off, and a well educated returning diaspora had a lot to do with promoting twenty years of unparalleled growth.
But I’d argue that those early successes were insufficiently built upon; to the point at which public expenditure on education, as a percentage of GDP – was allowed to drift downwards – at the very moment it should have been going up – exponentially!
A minimum of seven percent of total GDP is the figure the Government should set and hold to – all other areas of Public Expenditure, including health, must be allocated by the Cabinet in such a way as to make that figure as quickly achievable as possible.
A world class education system will, over time, deliver a world class health service – the reverse can never be possible.
Sixth, and last – although I could go on – young people learn and teachers teach best in environments that they respect, and which accord with what they see and admire in the best of what they see around them.
The physical infrastructure of many of the primary and secondary schools in Ireland should be a cause for national shame.
And when I speak of infrastructure I most specifically include every aspect of connectivity, and its complementary hardware and software.
Choices were made to spend billions of euros on buildings in the private and public sector that now lie either empty, under used or simply not needed.
It’s my personal view that had some fraction of that sum been committed to refurbishing the quality of the schools and classrooms in this country the nation would be far better placed to dig itself out of the hole that all that accumulated debt and waste has helped create.
The good news is that there are really excellent people in this country who understand that education at every level is both the cause and the consequence of any possibility of national renewal.
For too long Ireland relied on the good offices of the Church and the largesse of Europe to address and solve many of these problems.
I came here this morning to argue that, for good or ill, those days are over, and it’s now down to a simple test of national will to invest in the future; to rediscover those things for which this country has rightly been celebrated.
Learning, Culture, and a unique sense of community and place that the world has in the past, and please God will once again, come to admire – and possibly even envy.




