Beyond the Buzz with David Stanley Marketing and Management Essentials To Grow Your Business

Nobody watches TV these days. Nobody listens to radio. Advertising doesn’t work any more. It’s all about social media and online connections.

If you spend any amount of time online today, you’ll run across these declarations over and over. But while the pundits have been prophesying, they’ve missed the reality of what people are actually doing.

The November 9, 2009 Research Brief from The Center for Media Research reports a Nielsen analysis of a media study conducted by the Council for Research Excellence. The study found that radio is the dominant audio device. Yes, the almost extinct radio is the most listened to audio device – even over the ever-popular iPod.

Here are some of the key findings reported in the blog post:

• 77% of adults are reached by broadcast radio on a daily basis, second only to television at 95%
• Web/Internet (excluding email) reached 64%, newspaper 35%, and magazines 27%

In deeper analysis of audio media titled “How U.S. Adults Use Radio and Other Forms of Audio” Nielsen found that:

• 90% of consumers listen to some form of audio media per day
• The 77% who listen to broadcast radio surpass the 37% who listen to CDs and tapes and the 12% who listen to portable audio devices.
• Almost 80% of those age 18 to 34 listening to broadcast radio in an average day
• Broadcast radio is the dominant form of audio media at home, work, and in the car (79.1% daily reach; 122 minutes daily among users)
• Audio media exposure has the highest reach among those with higher levels of education and income
• Broadcast radio reaches those aged 18-34 at rates equivalent to the general adult population

The emergence of portable audio devices like the iPod and other MP3 players has been considered a threat to traditional forms of audio. This study indicates that the new technology has had a positive effect on radio consumption. “Radio was found to have a higher reach (82%) among those who listen to portable audio devices, compared to the average reach for all audio consumers.”

Here are findings from the study for key “advertising-based” media platforms:

• Live television had the highest reach and daily usage among users (95.3%, 331 minutes)
• Broadcast radio (77.3% reach, 109 minutes)
• Web/Internet [excluding use of email] (63.7%, 77 minutes)
• Newspapers (34.6%, 41 minutes)
• Magazines (26.5%, 22 minutes)

Key takeaway: Turn on your buzz filter – pay attention to what people actually do, not what they say.

A web presence is important for almost every business. Social media is growing and will increasingly have a place in the marketing mix. For now though, social media has a lower ROI for most businesses due to the time constraints it takes to implement and maintain as well as limited audiences.

“Old media” is still a powerful medium to connect with customers. The key is making sure you’re brand message is relevant. Have the pundits distracted you, or have you been watching what people actually do?

It’s a rare occasion when visiting with a prospective client if they don’t bring up concerns about competing with the big boy companies. This is true in retail and service categories. Of course, the main issue always revolves around price. So is it possible for smaller companies to compete with the big boys? Short answer: YES!

Here are 3 keys for competing with the big boys:

1. Don’t Focus on Price

Competing on price makes the product or service a commodity game. Price will win if there are no other differentiators. Value is an over used word, but it simply means a customer perceiving a better solution. Changing your focus to product selection, expertise, and/or service provides big points of distinction and can represent true value. (You don’t have to have all three to compete.)

I have a client in the home improvement business. The company has to compete against big box stores like Lowe’s and Home Depot. Third-party surveys conducted at the end of each project often indicate that my client had the highest bid, yet they still got the business. Why? Because they gave the homeowners confidence with the premium product and service they provide.

Another client is a specialty shoe retailer licensee. Unfortunately for my client, the shoe manufacturer sells under the same brand name to retailers of all sizes. But, my client is winning because he offer’s a deeper selection of styles, sizes, and widths. He also has fit experts in the store. We have never advertised a sale in the 7 years he’s been open. (What retailer do you know that can say that?) The results? He has had consistent sales increases each year and has one of the highest profit margins among his peer group.

2. Recognize That Little Things Can Win The Battle

Recently, a screw came out of an expensive pair of sunglasses I own. Consequently, the lens fell out. I looked in the Yellow Pages for optical companies that mentioned frame repair. None of the chain names mentioned the service, but a local company did. I went to the local company. They fixed the glasses while I waited and didn’t charge me a dime. Guess where I’m going when I need glasses? Guess where I’m telling people to go when I hear them talking about needing eyewear or contacts?

I wrote in an earlier blog post of how a hotel employee went the extra mile and purchased a Diet Coke for my client when the catering division ran out. That simple action along with an overall customer-focused experience we had during our meeting have put them at the top of the list to host the next meeting.

3. Be A Better You

I was fortunate a few years ago to work on a consulting project with Randy Curtis, a former VP of Creative and Media at Wal-Mart. Randy’s advice to businesses that had to compete against Wal-Mart, or any big chain, was to “be a better you.”

It sounds simplistic, but the advice is right on. There are plenty of opportunities for smaller business to compete with big boys. The key is to focus on what you’re good at, find points of differentiation, and build relationships. Product depth, personalized service, and expertise are great places to start. Again, you don’t have to have all three stand out in the marketplace to compete with the big boys and grow your business.

The question becomes do you know who you are? Answer that question, stay focused on what you can control, and don’t worry about the big boys. You’ll sleep better and make more money.

Marty Neumeier, author of The Brand Gap, shares some great insights with a presentation on Slideshare. One slide that really caught my eye was the “focus test” slide. I discussed the importance of focus here. These three questions provide the foundation of focus to that will allow you to establish and grow your brand.

The Focus Test

1. Who are you?

2. What do you do?

3. Why does it matter?

Three simple questions: simple, but certainly not simplistic. If you want to grow your brand, you’ve got to have unambiguous answers to these three questions.

Who are you? What are you passionate about? Why are you in business? Passion is the fuel needed to drive success. If you’re in business just to be in business, you will not build a strong brand. Without passion and the focus that comes from it, you’re not going to withstand the competitive winds of the marketplace. You stand a real chance of being blown away. Do you want to build a sustainable business? Start by asking what gets you up in the morning?

What do you do? You need to clarify your reason for being: your core purpose. In their best selling book, Built to Last, Jim Collins and Jerry Porras define “core purpose” as the fundamental reason your company exists beyond making money. What is the one thing that’s not going to change about your company? Without a core purpose, a customer has very little reason to do business with you. Think of the dot-com bust. So many businesses were created that had intriguing “fronts” but no real substance behind them. They were in business for stock options, but had no real passion behind them.

Why does it matter? This is where most businesses get tripped up, which stifles the growth of their brand. Why should a customer do business with you? “We make a great product? Yeah? That’s what every business says. “We really care about service? Prove it. You’ve got to have a compelling answer to this question to maximize your brand’s potential. Again, it’s a simple concept, but one I find most businesses struggling to answer. It’s easier to turn inward and think your brand is important. A brand is not what you say it is, a brand is what a customer says it is. You don’t own your brand, the customer does.

Are You Passing Focus Test?

If you want to maximize your brand’s potential, you’ve got to have concise answers to these three questions. Make answering these questions your top priority. If you’re struggling, ask someone you trust to help. This exercise is one of the most important steps you can take to create a lasting brand.