Upstream blog

What do “values” have to do with marketing?

by Craig Gagnon on December 1, 2011


Headlines about misbehavior and scandal are nothing new. They range from Bernie Madoff to Goldman Sachs; from Enron to BP to Penn State. And when companies or individuals step way over the line – breaking the law, violating human rights – their reputation and their brand equity suffers.

But what about the other end of the spectrum? Can a highly ethical, values-based organization effectively compete in this day and age? Can values-based leaders use those attributes to be more effective and generate superior results? What, after all, do values have to do with marketing?

The answer is easy: everything. Put simply, people prefer to buy from companies they trust. People prefer to work for leaders that they admire.

Harry Kraemer explains the importance of values-based leadership

In his new book, From Values to Action: The Four Principals of Values-Based Leadership, Harry Kraemer makes a compelling case for doing the right thing and delivering lasting results. And he should know. Harry is the former CEO and Chairman of Baxter International and he used these very principals to lead the $12 billion company during a period of significant growth.

I spoke with Harry recently and asked him to talk a bit about how a values-based organization gains a competitive advantage.

Craig Gagnon and Harry Kraemer discuss values-based leadership

Today’s parting thought:

“Management is doing things right; leadership is doing the right things.” – Peter Drucker

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Marketers: Are you hearing voices?

by Craig Gagnon on September 16, 2011


I often work with companies that face challenges brought on by change. Those changes aren’t all bad. Growth, acquisition, new product development and geographic expansion create challenges just as thorny as declining sales, aggressive competition and economic recession. But change demands taking a hard look at brand strategy, beginning with an honest appraisal of brand reputation.

VOC
The tool of choice these days is VOC – Voice of the Customer. Of course, smart marketers have always recognized the value of listening to what customers say about themselves, their needs and how they view your products and your company. It’s a key step in defining, or redefining, your brand. And yet, business trends and buzz words come and go. Lately, “Voice of the Customer” is everywhere.

But it’s one thing to listen to customer voices. It’s another thing altogether to hear what’s being said. And not said. When you’re looking for answers, it’s easy to hear what you want. Or, at least, what you expect.

I just finished a rebranding project for a multi-national corporation that proves the point. Phase 1 involved conversations with business unit leaders and feet-on-the-street salesmen. Those conversations always included a key question: “What is your reputation among customers?” I expected disagreement. In this case, tho, most everyone agreed that they were known for three things: quality, reliability and superior engineering.

Phase 2 involved a similar discussion with a small sample of customers. That was followed by a final survey phase to validate and quantify Phase 2 results. Interestingly, the answer to the question about brand reputation was strikingly similar. Customers agreed that the company made reliable, high quality products. Had we merely surveyed customers, that would have been the end of it. We’d have had the basis of a brand strategy. But that’s the difference between listening and hearing.

Listening vs Hearing
Digging deeper, I learned that customers applied those very same attributes to the entire competitive field. It was the price of entry. If a company didn’t produce high quality, reliable products backed by superior engineering, they simply wouldn’t be considered. These characteristics did nothing to differentiate one company from the rest. There was something else.

Listening carefully and asking the right questions revealed the answers: purchase decisions were based on service. And depending upon the market segment, service meant different things – from lead time to delivery time, to technical support to personal relationships. Had we merely listened, the brand strategy would have been built on product quality rather than service.

Of course, there are other benefits of a good VOC exercise. Careful listening can help reveal your brand’s personality – a valuable trait which should be reflected in communications. To say nothing of the kudos your company will get from taking the time to listen to customers. They appreciate the effort more than you realize.

Do you hear voices, too?
Have you listened to your customers lately? More importantly, have you heard what they’re saying? It’s easy to assume that you know your customers and what they think of you. The smart organization takes this a step further and asks them. You may be very surprised by what you hear.

Today’s parting thought:

“The most basic of all human needs is the need to understand and be understood. The best way to understand people is to listen to them.”
— Ralph Nichols

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Creating a LinkedIn Strategy: A conversation with Wayne Breitbarth

by Craig Gagnon

If you’re in business, chances are you have a LinkedIn profile. Currently more than 100 million of us do. And, if you’ve been following the financial news, you know that LinkedIn recently went public. The first major social media IPO. So lots of eyes were on the stock price which opened at $45 a share [...]

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Smart business or questionable ethics? Where’s the line?

by Craig Gagnon

If you do business long enough, sooner or later you’ll face an ethical issue. I’m not talking about outright lying or theft or fraud. Those are pretty black and white. If you cross those lines (and get caught), you get fired, you lose the account or you go to jail. No, I’m talking about those [...]

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Hospital marketing costs don’t need to be cause for concern

by Craig Gagnon

A recent article in HealthLeaders Media raised the issue of whether hospital marketing was worth the cost (Hospital marketing Costs Remain Cause for Concern). While this deserves a point-by-point reply, my first inclination is to highlight a recent campaign that undoubtedly will prove worth the cost and more. Sometimes a campaign works on so many [...]

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Do you really know your customers? Ethnography helps GE Medical.

by Craig Gagnon

A while back I attended a marketing symposium at Marquette University featuring some leading marketers including Steve Laughlin of Laughlin Constable, Tad Hutcheson of AirTran Airways, Robert Kraft CEO of RCI FirstPathway Partners and Ed Caroll, Chief Marketing Officer of Bon-Ton Stores. These marketing heavyweights shared a common message – the critical importance of getting close [...]

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Uncover hidden markets by monitoring social media

by Craig Gagnon

As organizations consider whether to utilize social media, market research is not often the first thing that comes to mind. However, by actively monitoring social media conversations, it’s possible to uncover market opportunities that you may never have found in any other way. Persuadable Research is a dedicated online research company based in Kansas City. [...]

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ReThink Social Media

by Craig Gagnon

#5 in a series on how to respond to a rapidly changing world and the need to ReThink key elements of marketing and planning. This may be the most over-discussed topic in the history of marketing. In just the last 2 years, it’s been the subject of innumerable webinars, seminars, blogs, articles, books, white papers [...]

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ReThink Customers

by Craig Gagnon

#4 in a series on how to respond to a rapidly changing world and the need to ReThink key elements of marketing and planning. Marketers all recognize the importance of knowing their customers. But do you know them as well as you once did? Or have they changed while you weren’t looking? And, given the [...]

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ReThink Agency Relationships

by Craig Gagnon

#3 in a series of posts on how to respond to a rapidly changing marketing landscape and the need to ReThink key elements of marketing and planning. Let me begin by saying, emphatically, that if you have a good, strong agency relationship, hang on to it. Far too many marketers are too quick to look [...]

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