Interpersonal Business

Dear Manager,
In last month’s issue we discussed developing a marketing advantage. An essential step in the development and introduction of any product is in the advantage of a competent marketing individual to insure your products have established their market. It is my belief that the most difficult position to hire in any organization is the individual asked to be your marketing guru.

Do not confuse these dramatically contrasting forms of marketing. Gut approaches business with a sense of awareness, feeling and passion that only a few around him will understand. It’s as if Gut has a sixth sense relating to the objective; they hear a voice that no one else can hear. By contrast, Pants hears no voice. In fact, this individual is convinced there is no voice, and has concluded that good fortune and timing are the makings of successful marketing.

At a recent trade show I had the opportunity to meet with two individuals who best illustrate this marketing dynamic. In my conversation with Pants, he suggested that there was no possible way to figure out the needs and wants of the consumer, let alone the whims of his retailers. “My only success has been to throw it on the wall and hope something sticks. Good fortune is the name of the game with relationship to new product.” As I suggested to him on that day, this is a cop out.

I have had the opportunity to work with a number of organizations who are certainly aware of the role fate can play, yet would never consider relying upon it! These organizations consistently hit the mark relating to what the market is asking for, creating their own success through innovation. These are the organizations where an annual sales growth of 30% to 50% is not uncommon. I have seen this reality occur time and time again, how can anyone suggest it doesn’t exist?

In my conversation with Gut, he told me he had just survived a difficult year in which the market had changed and, in hindsight, some bad decisions were made. He immediately went back into the field, working many shows to regain an accurate pulse on the market. I have to ask, how often do marketing people come to a trade show or work in the field to gain feel for the market? I rarely see them.

Gut has aligned himself with individuals who understand the nuances of product development. He is constantly thinking past the obvious and creating first and second generation ideas relating to his product. With every brainstorm he not only asks but listens. He relies upon his peers to provide him with current information and additional perspective. Once the analysis is complete, and the thought has stuck in his head, rather than on the wall, he goes with it. After a difficult year, Gut is not only back on track, he’s near the top.

Allow me to clarify. Who am I to suggest that Pants has no gut? My only criticism is that Pants denies the existence of a gut. Once again, we cannot fully understand what we have not personally experienced.

THROW OPEN THE GATES
I recently saw a televised interview with Bill Gates who, along with Paul Allen, founded Microsoft. Is there any question that Bill Gates has a great gut? He not only hears a voice, but hears one that is decades and generations ahead of its time. Who has accomplished more in business and industry over the past twenty-five years?

In this interview, Gates referenced the need for business to constantly re-invent itself. He went on to suggest that every business needs to “obsolete itself as quickly as possible!” Obviously, he was suggesting that business not only stay with the times, but to reach ahead of them, re-inventing itself along the way. While the electronics industry is extremely fast paced, particularly in today’s market, has Bill Gates offered up new principals that would only apply to his industry and not to our own? Absolutely not.

If this is true, why are companies reluctant to re-invent themselves? Why do I see companies become more conservative, losing their entrepreneurial spirit and allowing their presentations to become dated? Are they simply waiting around to catch the next wave of good fortune?

It always has, and always will, come down to creativity, design and innovation. If you no longer have it, then find it. I often hear reference to a product as having reached a mature market. I genuinely believe this is a very kind way of suggesting that a product is stale or, in fact, the market would not be mature. The time to re-invent yourself is at the top of the curve rather than waiting for more desperate times. At the top of the curve, excitement is high, cash reserves are strong and you hold a significant role in the marketplace. New introductions will be looked upon with a level of enthusiasm similar to that for your current offering.

At the bottom of the curve, when your product has been perceived as being dated, excitement will be low and cash reserves will have dwindled. Once again, your new introduction will be looked upon with a level of enthusiasm similar to that for your current offering: dated and of little relevance.

With bottoming-out comes a very clear resolution relating to your options: get your eye back on the ball, or kiss your ass good by. It is now time for a transfusion of new ideas providing energy and a spark to the organization. The need to find that marketing guru may become a bit more obvious, and accepted with a greater awareness and understanding than in the past.

Managers may have sold themselves on the conclusion that there are historic factors that inhibit sustained growth. They might even reason that for there to be a bottom, there must also be a top!

With time, challenges mount, expectations grow, and the price for success only multiplies. There may be a time when the price becomes too high. This is certainly acceptable, as long as in the same breath we have not placed responsibility and blame on the influence of outside factors.

There are no true limitations, only those that are self-imposed. Do not confuse limitations in ones own capacity with any inherent limitations of the marketplace or in that of your organization.

In the lifetime of ones business career there is only abundance.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Dear Manager,
As managers, we have observed, asked to be involved with, and participated in an abundance of products and services. As students of the marketplace, we have witnessed quality products that failed under their own weight, while other less promising products flourished and succeeded. How can this happen? This scenario is much more common than we are likely to acknowledge. While some individuals rely on timing and blind luck, there is no question that management can take control and react to these factors with effective marketing.

With this issue, and continuing with the next issue, I will discuss those aspects that ultimately determine a product’s success … or something less. No more excuses! If you are unwilling to properly market your product or service, send the investment to charity and leave your product on the drawing board.

I was at a recent trade show and, with some wonder, found myself uninspired by the majority of the exhibits and the products on display. If one of my objectives was to develop contacts with new manufacturers, why would I be interested in taking their products seriously if they obviously had not? Finding a product and an individual with a creative flair and sense of awareness of presentation was like finding an oasis in the desert.

One of the first tenants of marketing is exceeding your customers’ initial expectations. We all know the value of a first impression; nine times out of ten it will be your last. Without loosing touch with fiscal responsibility, I have always believed in establishing a perception that my product or service was bigger than life, or at least much larger than my competitor’s accountant or banker would be willing to testify.

I do not believe in putting the cart ahead of the horse, or in risking the financial future of your company. I do believe there are ways to direct resources where they will make the greatest impact. You must, first of all, give yourself a realistic opportunity to put your right foot forward or, like many others, you will be left at the gate. Let’s take a brief look at the five P’s that we, as students of marketing, will need to embrace.

PERCEPTION plays a much greater role than we can possibly realize. The perception of your product in the chain of players to the marketplace will need consistent review. Of the five P’s, this is the most difficult aspect to control. It requires some of the greatest input, and is, at some level, impacted by timing and pure dumb luck. Your only hope is to never underestimate its role! Since we will never fully understand its reality, for this reason alone we must always, always, (did I mention always) exceed what we believe to be another’s expectation. Bigger, better, faster, and aesthetics of design will need to play a major part in your initial planning. Anything less, and you are assured to fall short of your potential.

PRODUCT, unlike perception, is totally within your control. Pay close attention to your competition. Gain as much surface and inside knowledge as possible. Determine your competition’s strengths and weaknesses, their victories and their failures. Next, not only determine the features and benefits of your product, but relentlessly improve upon them prior to its launch. No one needs another me too product. The elements of creativity and innovation will drive your product and insure its profitability. Price takes a secondary role to these factors, margins of profit will soar, and competitors will be eating leftovers.

PRESENTATION of your product is critical. Have you analyzed the physical dimensions, colorations and packaging of your product? Are they eye-catching? Will they bring a smile and set you apart not only in some ways, but in as many ways as possible, from your competition? There can be a tendency to sell yourself on the obvious features of your product without fully understanding and appreciating the benefits of another.

Remember, your product will need to be clearly superior to supplant the relationships established by your competitor. Does the product inspire enthusiasm and excitement, not only in your customer, but (and this is equally important) in the individuals being asked to sell them? Can you provide merchandising techniques that will insure multiple unit sales to the consumer or to those retailing your product? If the unit sale is $10.00, why not provide an innovative self-merchandiser containing twelve, providing a single decision for $120.00! Multiply this by variations in size, color and seasonality, and you have begun to create a complete concept.

Do you have a larger and more expensive version to establish as a cadillac or centerpiece, to give a focus to your over all presentation? A number of years ago, I represented a factory who had developed some of the first generation, highly authentic latex Halloween masks. This was at a time when the adult Halloween market was just beginning to expand.

The average retail price for these masks was in the $30.00 to $50.00 range, a substantial commitment in the early 70’s. I would always encourage my retailers to purchase at least one mask that would retail at $100.00 or more. The mask would not only draw attention to the more moderately priced masks, it would create the perception of a ridiculous extravagance for use on a single occasion. Many customers would scoff at $100.00 and feel they had been much more prudent and conservative having spent only $50.00. Bingo! Without the $100.00 mask, the $50.00 mask would have become the cadillac. Invariably, Mr. or Ms. Moneybags would come in and purchase that $100.00 mask.

PROMOTION of your product must make a statement for it to have any chance of success in the marketplace. To accomplish this, develop a package assortment to encourage and reward full participation. Once again, if you are not willing to take your product seriously, then why should anyone else? Consider free displays, freight allowance or extended terms to encourage a full commitment. This is also a great time to promote multiple levels of participation.

Remember our cadillac mask? While you may assume it will have limited participation, always establish an upper tier of partnership. This develops the foundation and acceptability for the mid-range tier that you absolutely believe in. In selling your product always begin with your premier program. I will never forget promoting one of my manufacturer’s top-of-the-line programs to a customer I had never been able to sell. The customer leaned across his desk and said, “I’ll take two.” I nearly lost my breath! It’s a matter of believing in your product, and translating that belief to your customer.

In certain controlled circumstances, you may also wish to provide a guarantee. This will certainly test how much you believe in your product! I recently developed a guarantee program for a product that had proven itself well beyond all expectations. It became time to put its placement into warp speed.

Arming a number of my sales associates with my personal guarantee, they were each asked to open ten new accounts. As the final option in their presentation, they could give the opportunity to provide a full guarantee. In a six week period, we opened over sixty new accounts. Now, months later, I have not had to fulfill a single guarantee. I believe this to be unusual, yet even with a 10% to 20% return, I would have gained eight to nine new accounts for each program accepted in return. In this instance, ten for ten is even better!

PERFORMANCE is the final step. There is absolutely nothing more frustrating than having a product that executes all of the previous elements, only to have a factory drop the ball by not performing with fulfillment. Late or ineffective sales materials, false starts on release dates, and promoting a product months, or even a year, prior to its launch will only compromise both anticipation and enthusiasm in the marketplace.

In the release of a new product, you are effectively selling more “sizzle than steak.” Think about how long your sizzle will last, and coordinate your release based upon it. Be as sure as humanly possible that all aspects of your launch are in order. Think about NASA without enough fuel or a last minute shortage of spare parts! It’s a scrub. If need be, be more conservative with your release calendar. Commit an additional thirty days to your release to insure against contingencies. At all costs, avoid shooting yourself in the foot!

Certainly timing and luck play a role, yet a much larger factor is determined by the marketing advantage developed by the management team. For this reason alone, we see less deserving products flourish and quality products fail.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Dear Manager,
We have all experienced the failure of a personal or business relationship that, at the time, was very difficult to accept. In my years of business, I have witnessed the failure of some very strong and valuable relationships for what seemed to be all the wrong reasons. We have probably also walked away from what had, at one time, been relationships that were very valuable to us. Times change, needs change … expectations change as well!

From a purely emotional perspective, it can be much easier to walk away than to try to save a relationship that is not meeting the needs of all parties. For some, it may seem to be time to move on, regardless of the cost.

Emotion and good business judgment rarely make good bed partners. As the years go by and relationships mature, the need for stimulus and growth are ever changing. What was acceptable at an earlier time may no longer be so. What was not appreciated in the past may now be considered a significant asset. What seemed to be so very black and white now has definite shades of gray.

A number of years ago, I listened to a caller who phoned a popular talk show to discuss a concern she had in her marriage. For twenty years she had washed, ironed, and hung her husband’s dress shirts in his closet. When her husband dressed in the morning, he would determine if the shirt had been pressed to his satisfaction. For twenty years, if they had not met his standards, he promptly returned them to the laundry to be washed and pressed “correctly.” After twenty years of his insensitive behavior, this poor woman was now at the boiling point. She was looking for comfort and validation from a guest on the show.

I can certainly sympathize with her frustration. In fact, I remember wanting to shout, “Tell the guy to iron the shirts himself!” The response from the show’s guest, however, was not what the frustrated caller expected. The guest asked her how she could place sole blame on her husband for behavior that she had consistently reinforced through acceptance for twenty years?

A business associate of mine recently confided that he was prepared to leave his job. I knew that he was very well thought of by his employer and, in fact, had been consistently rewarded for his growth and success over the years. While he once enjoyed his position, he now felt trapped by circumstances that he had reinforced through participation and acceptance for a number of years. He was ready to walk.

Exactly what had taken him to this point? And what set of circumstances would recapture an environment of success for both himself and his employer? I suggested that he take the weekend, get away, and define what it would it take for him to buy back into what had once been an acceptable and fulfilling working relationship.

By creating a best-case scenario, or success formula, you have established a platform from which to proceed. The effort should objectively clarify and define your concerns. You may even find that your concerns are emotional in nature and have no conflict with strong business principals. Ultimately, you have created a document of needs to continue the relationship. It is now time to schedule a meeting with your employer.

In your meeting, discuss your appreciation for a relationship that has been mutually beneficial over a period of years. Explain that you no longer feel the same sense of benefit by continuing the relationship under current circumstances. Express your understanding, that your needs and observations are only one factor in the overall structure and decision-making process for the company. Proceed with your presentation, focusing on areas that, from your perspective, will create a workable success formula for all parties.

For this discussion to carry any meaning, all parties must understand that this conversation will lead to mutually acceptable solutions, or the relationship can no longer exist. Fairness in your presentation is essential. Your intent is not to point fingers or hold your employer hostage.

Neither box your manager nor employer into a corner. State your thoughts in a very positive manner and give them every opportunity to take a day or two to reflect and respond. In closing, reference your commitment to a positive resolution and your appreciation for their time and full consideration. Let them know you fully understand that this discussion may not lead to a resolution of your concerns. Sincerely state your appreciation for their desire to discuss your thoughts, and suggest your willingness to assist in their transition should your discussions not work toward a continued relationship.

So, what are your chances of a positive result? 100%! Yes, in every instance you will be pleased for having gone through the process. You may have only confirmed your concerns, and verified your desire to look further. Better yet, your concerns may be understood and accepted by the other party, and their willingness to meet your needs may become very obvious. You will never fully understand your value until this effort is made.

Certainly, you could have bailed, packing your bag with no comment. Is there any lasting satisfaction in this approach? At the very least, creating a success formula shows respect for the work you have accomplished and suggests that every effort has been made to proceed in a positive role. You will also be amazed at how often your success formula is compatible with the success formula of your organization.

What have you got to lose? If you are prepared to move on, then take this final opportunity to create a working environment that can best take advantage of your individual strengths. Why do so few ask the question? The obvious reason is their own acceptance of mutual accountability. How can they now demand change, when for years they had shown support and acceptance? If a new approach is needed for you, it’s likely true for your employer as well. Bury the past for all parties and objectively develop your success formula.

A success formula can be equally effective in many other aspects of business. A friend was recently offered employment with a new company. He was anguishing over certain perceived aspects of the position. As an alternative to simply turning down the offer, he decided to meet further with this company and address his concerns. He explained his need to participate in an environment that would be conducive to their mutual success. He explained circumstances that had been counter-productive in the past, and shared alternatives that had best suited all parties.

You absolutely cannot lose with this approach. Creating the opportunity to address your needs and concerns will only define and clarify the value of the position. My friend not only accepted the position, he also established on going criteria , created an environment for success and also reinforced greater confidence and independence relating to his position. Remember, it is much easier to negotiate in the early stages of a relationship than it will ever be at a later time!

Several months ago, I had a conversation with a customer whose behavior had been totally unacceptable in dealings with our representatives. In addition to being verbally abusive, his expectations were unreasonable and completely self-serving. I called and objectively explained my concerns, stating my desire to maintain the relationship if certain changes could be made. His total lack of understanding regarding my concerns made it obvious that there would be no relationship to save. From his perspective, there was no problem.

In this rare instance, I thanked him for his previous business and suggested that he pursue future business with one of our competitors. I could no longer be a party to the reinforcement of his negative behavior, and absolutely would not expect our representatives to call on this customer. Change for this individual may be possible. If enough vendors share their concerns, he will have no choice.

There is a price to pay in all aspects of business. How many are willing to step up, accept some responsibility, and address the need to promote and implement a success formula? How many more would prefer the easy way out and simply bail? Without conveying our perspectives, we are showing acceptance for less-than-acceptable behavior.

This effort is never guaranteed to meet all of our objectives. As compared to no effort whatsoever, is there a much greater likelihood of success? Out of simple respect, do you owe it to yourself and those with whom you have worked, to save this mutual investment before it’s too late? Without question, yes.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Dear Managers,
In a recent issue of INTERPERSONAL I discussed risk and the role of consultants in the development of new products. With this month’s issue, I would like to take this topic a bit further by addressing the dynamics and challenges faced in the birth and marketing of a new product.

This month’s issue is dedicated to those hardy souls who, against all odds and the best advice possible, are committed to taking a risk. Be it the individual who mortgages his home to follow his dream, or the seasoned entrepreneur making a “tactical product expansion,” the chances for success are a percentage point or two above slim. Often, the only difference is the depth of ones pockets! With these thoughts in mind, let’s take a run at increasing those odds.

A BLIND EYE
If you or your company are considered to be successful, you have most likely been asked by those seeking success, “What do you think of this?” or “What would you do if you were me?” When an individual asks my advice, I feel the responsibility to be realistic first and enthusiastic second (a few questions early in our conversation to determine their resolve will tell me just how enthusiastic I should be). There seems to be a common thread with these individuals: they have at least one blind eye.

These conversations bring back vivid memories of my own carefree and very naive early years in business. Had I had a conversation with the wrong person, (who may have actually given me very good advice,) I might never have taken the risk of getting started. Certainly, personal drive and natural abilities will promote success in varied endeavors, yet how many times have we heard, “If I only new then what I know now…”

Regardless, I find myself proceeding with guarded optimism for all individuals willing to take the plunge. Who am I to determine if their concept or product is meant to succeed?

HOW BAD DO YOU WANT IT?
With very few exceptions, the common denominator for the success of all new products is the “do-whatever-it-takes” factor. Is this person serious and committed to the project, or is this a hobby? If this is the case, fine. Don’t invest the farm in something to which you have no intention of giving your very best effort. Keep your day job, enjoy the process, minimize your investment and allow your product to develop to its own level. Worst case, you have learned from the process with limited cost, best case it may become more apparent that a greater personal and financial investment is required. The highest priority for any new product is to first determine:

DOES ANYONE CARE?
I have often met with individuals who have rushed head-long into a product’s development prior to determining if there is actually a market or established need for their product. They present their product to me and state, “I have a garage full of these, what do I do now?” Their practical alternatives have now been lost. I believe this to be the ultimate hazard of the blind eye.

TEST ME, TEST ME, TEST ME!
Prior to ordering a garage full, (or on a larger scale a warehouse full) order a minimal run at a higher unit cost to determine a product’s feasibility. As I suggest to these individuals, there are ample resources to market test your products. Yet, I would be willing to guess that less than one in ten has taken advantage of this opportunity. Good-natured friends and family (or fellow managers) have encouraged their spirit, regardless of their market knowledge or its ultimate consumer value.

In general, business people and retailers are more than willing to help you determine the market value of your product. There is a definite energy in participating in the launch of something new, which plays very well in developing an interest and the needed support for your test.

Next, determine a retail price based on your costs of a full production run, adding a very reasonable profit and what your retail/business advisors feel the market will bear. In many cases, your unit cost for the minimum run will only cover the wholesale price. At this stage it makes absolutely no difference.

Your sole objective at this point is to determine your product’s potential in the market and to develop valued advisors and business contacts. Profits in the early stages should be of no consideration. Minimizing and control of potential loss through miscalculation is your sole objective.

Products in their first phase will need at least minor adjustments, and often major changes, prior to going into full production. These changes may include meeting a standardized size established by the market, a reduction or increase in pieces per single price point, packaging, the use of additional color or adjusting the suggested retail price, to name a few. Now is the time to determine the dynamics of your specific market.

Ask to test your products at fifteen to twenty places of business. Be willing to offer your product on a consignment or no cost basis to insure a significant test. In most cases you will want to establish these business relationships personally. Project a very professional and sincere image of yourself and your product. Your personal enthusiasm, and the fact that it is your product, will go a long way toward encouraging their support and assistance in your test.

Determine the specific placement for your product, a time frame for the test, and your plan for follow up. In a much larger test, you may also wish to experiment with two or three price points in various areas to establish the suitable and/or maximum retail pricing. The most critical aspect of your test will come from your professional follow up. If you are unwilling to establish a commitment toward your product and its future, why should anyone else?

The learning curve in this first phase will ultimately determine the success or failure of your product. In your follow up conversations, ask for a candid evaluation of your product from your various test locations. Insist upon their sincere opinions, rather than a favorable spin to feed your ego. Be sure to ask for their perception relating to your product’s rate of sale and potential as compared to similar products they are familiar with. Only when you have gained this information can you make the calculated decisions on your product’s future.

After sixty to ninety days you will have collected a substantial amount of data to review, in most cases at a very reasonable cost. You are now in a position to determine the adjustments and improvements that will need to be made, as well as your willingness and ability to bring your product to market.

MILK’S TOO CHEAP TO BUY A COW
This is one of my favorite quotes, as it seems to define so many aspects of business. All too often I see business people purchase machinery, equipment, lease a building or vehicle long before it is absolutely required. If you occasionally need a truck, rent a truck! Devote phase one resources to minimizing expenses and maximizing the investment into product knowledge. Your investment in equipment will never determine the fate of your project’s future, the investment in your product absolutely will.

With each conversation of this type, I find myself much closer to using these basics in decisions for my own company. As managers, we must determine our own resolve and implement the fundamental strategies that will increase our odds of success. The marketplace does unusual things to one’s thought process, let alone one’s memory. We have only our own experience to thank for an insightful perspective on the blind eye of the entrepreneur.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM