10 Things I Learned from Joanne: Lesson 6
Classifying Situations
This is the sixth article in a series I’m calling “10 Things I Learned from Joanne”.
Joanne O’Connell is the co-author of the book that we recently published called Intentional Marketing: A Systematic Approach to Optimizing Performance.
Past Articles
The other articles posted on the Anduro Blog are:
Lesson 1: Each Level of the Model Must be Measurable
Lesson 4: Inside vs Outside the Model
Lesson 5: The Stupidity of Ignorance
In the first lesson, I learned that each level of the marketing and sales model must be measurable. Joanne’s logic is that if you have a level in the model with no measurement, why bother with the level? I agree, wholeheartedly.
In the second lesson, I learned the difference between a measure and a metric. Read the article to discover Joanne’s genius and the magic between collecting and calculating.
In the third lesson, I learned that the basic components of marketing are simple but need to be in “alignment”. You need a product that solves a problem, a market that wants the problem solved (and is willing to pay for the problem-solving product), and a series of marketing activities that connect the market with the product.
In the fourth lesson, I learned that Joanne distinguishes between “inside the model” and “outside the model”. This simple but not-so-obvious concept helps to simplify marketing and make it less overwhelming.
In the fifth lesson, I learned that people who design and develop a model of what is happening in marketing are much better able to see what is happening. In other words, they move from a position of ignorance to a position of understanding and enlightenment. In a nutshell, Joanne says, “People can do better.”
Step 9 Comes Before Step 10
Classifying your company’s situation is Step 10 (page 137) of Phase 4 – Improving Alignment (page 105). By the time you get to Step 10, the assumption is that you have completed the following Phases and Steps:
Phase 2 – Build the Model (page 27),
Phase 3 – Optimize Performance (page 72), and
Step 9 – Look Outside the Model which is part of Phase 4 – Improve Alignment
Step 9 is a major step in the Intentional Marketing System. It is all about looking outside the model and outside the company to find out what is happening in the world. When developing a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), Step 9 is all about the O & the T.
My observation and complaint with most companies that do a SWOT analysis is that they list the first few points they can dream up. They are lazy. Rarely is sufficient research and real analysis done. Following the process and answering the questions listed in Step 9 is critical before attempting Step 10.
This is a summary from our book of Step 9 (page 108):
Step 9 – Look Outside the Model, explores the context of the product and its competitors, the market, marketing and its alternatives, and the industry or industries in which your company operates. Recall that marketing is all about people. In this step, you will explore where the product is strong and where it may be weak, where the market fits and where it may be “off,” where marketing is “on” and where it needs to be strengthened. This step involves gathering descriptive information that is not available from the numbers inside the model. The activities in Phase 4, often involving research, are critical for moving forward to improve alignment.
Evaluate Your Situation
Let’s assume that you have designed and you are using your Customer Acquisition Model. Let’s also assume that you have done a portion or a significant portion of the market research (Step 9). At the end of Step 9, you will have answers to the following questions related to your product, your market, and marketing:
Each question has either a Yes or a No as an answer. Simple.
Once you have answered each question you should understand where to focus your time and energy to improve alignment.
Classify Your Company’s Situation
Which brings us to classifying your company’s situation – Step 10.
To be honest, this step isn’t hard. If you have done Step 9, it is easy.
Here is the issue: most companies don’t bother to do the market research involved in Step 9 and as a result, they don’t do Step 10 – Classify either.
But this step is critical. If you don’t know where your company is having issues, fixes may or may not work. HOWEVER, if you know where the problem is, you can fix it.
I learned from Joanne that from a high level, there can be issues with the product, the market, or marketing – or any combination of these. Classifying your company’s situation is the next step. In short, there are only a few situations that make logical sense.
In our book we have identified 5 possible situations:
In this situation, all three components are in alignment and working together to generate solid revenues for the company. The product is strong. The market is responding and communicating well with your company, and customers are buying the product. Marketing is working well because the market is aware of the product and buying.
If the product, the market, and marketing are working well, you may have gone as far as you can with the current marketing strategy. If the financial metrics seem reasonable and are in line with expectations, then your company is in alignment.
Congratulations. You should consider developing a new product for your existing market or new markets.
This is a common situation and a good one for companies that are looking to improve the current situation. Based on the research you have done, the product appears to test well, and the market appears to be strong and healthy. If this is the case, the product and the market can be two anchors moving forward.
From another point of view, the research you did should have indicated that there are problems with marketing.
If this is the situation for your company, then a constructive solution moving forward is to focus on adjusting marketing. Start with the selection of one channel that your market uses and create messages that resonate with members of the market. Invest in this channel and measure the results.
In this situation, sales are happening but not consistently. Customers who buy the product may be happy with the purchase. The product is strong because it does well when purchased. The problem, however, is that something is wrong with the market selected and this is the key issue. The product is not being offered to the right people.
At this point, the product should be the anchor for the marketing strategy.
A constructive solution is to start by finding a market that aligns with the product. The approach at this point is to develop a new marketing strategy and plan to align the product and the market.
In this case, the product is not selling or performing well, even though it is being offered to a highly responsive market. In addition, all your research shows you that the marketing approach you are taking is appropriate to the market.
In other words, the market requires something like the product being offered and the people in the market are aware of the product your company is offering, but they are not willing to buy the specific product offered by your company. This is a serious situation that can be difficult to fix. But it is fixable.
The solution lies in accepting that the market is a strong anchor. Then you need to figure out the problem with the product. The solution could be as simple as lowering the price.
Let us face it, if you are in this situation, your company is in trouble.
The solution will depend on the specifics of your situation. The first place to start is with the product. Without a good product, the market will not respond, and any amount of marketing will be wasted.
Conclusion
If every company was in Situation 1 then you wouldn’t need Joanne and me. However, many companies, if not all, seem to have issues in one component or another.
From our experience, most that have problems with alignment, are experiencing symptoms similar to Situation 3: High-Value Product but the Market and Marketing are Problematic. The company has a good product, but they haven’t identified a market that responds well and buys.
In most cases, when it comes to the product, the market, or marketing, the company is out of alignment.
Here is a list of contributing reasons why. The leaders in the company:
Think that their product is so fantastic that the “market” will automatically find them and the product will sell like hotcakes – with minimal investment in marketing.
Never really thought about who are their customers (the market), where they are located, and how to reach them.
Invested in a marketing campaign and it failed miserably.
If you find that your company is in Situation 2, 3, 4, or 5; we can help you. Contact Jeff Nelson or Joanne O'Connell. We are looking forward to a conversation and helping you get your company into alignment.