Marketing Trumps Advertising

Of all the isms in the world, the worst is credentialism.  Credentials are ubiquitous.  Everyone has at least one or two.  Whether in economics, or in engineering, or in management, or in just experts in general, everyone has credentials.

As Glinda said to Dorothy in The Wizard of Oz, “Are you a good consultant or a bad consultant?”

To which Dorothy replied, “I’m not a consultant at all….”

Here is the metaphor:

You have two experts. One works for a store that sells red paint. One works for a store that sells blue paint.

The red paint expert says, “Paint the walls of your company red. Your employers will get all gingered up and make more widgets.”

The blue paint expert says, “Paint the walls of your company blue. Your employees will be more relaxed and make better widgets.” 

Ostensibly true…or half true.  However, half the truth is a whole lie.

What the red paint experts don’t tell you is that the red paint employees will make more widgets, but more mistakes.  What the blue paint experts don’t tell you is that the blue paint employees will make better widgets, but fewer widgets.  But wait. There’s more! 

To stay in business, Mr. Widget must make a choice:  produce more widgets for the discount widget market, or make better widgets for the upscale widget market. 

While that sounds simple enough, there is a lot more to it.

If he goes with discount widgets, he will need to adjust his "supply chain": cheaper steel, cheaper nuts and bolts, cheaper paint or powder coat.  Also, he must adjust his distribution: more trucks or bigger trucks?  He must also change his marketing, advertising, and warehousing allocations.  If he signs a deal with Mr. Wal-Mart, he’s reached the discount widget market—almost.  He will still have competition from those with more experience and facility with selling discount widgets.

If Mr. Widget goes upscale, he will dial back the quantity of steel, but must ramp up the quality of the steel, the nuts and bolts, and the powder coat.  He must also change his marketing, sales, and advertising strategies.  How will he sell widgets, where, and to whom? Coach? Macy’s? Neiman Marcus?

Each market strategy has its own challenges.

Ron Johnson did a bang up job at Apple Stores.  At JCP?  Not so much. 

Ron Johnson wanted to sell, “Every Day Low Pricing.”  The Customers wanted to buy, “Discounts and Coupons.”  Ron Johnson tried to convince the customers to buy what he wanted to sell instead of selling what the customers wanted to buy.

MARKETING TRUMPS ADVERTISING

Forty years ago, my marketing professor scolded me on (at the very least) one occasion, “That’s advertising. That’s not marketing.”

Advertising: Convince the customer to buy what you want to sell.

Marketing:  Find a need and fill it.

Now the hard part.  In addition to the above, in order to protect himself from being T-Boned at the intersection of Marketing and Madison, he must consider the following:

Technology:  Will his competitor buy the new Widgetmaster 5000?  Should he?  What are the opportunity costs?

Innovation: Will his competitors make aluminum widgets, or titanium widgets, to either cut costs or improve quality?

R&D:  Will small entrepreneurs nibble away at his profits?  Two kids with a 3-D printer may begin making plastic widgets.  However, 2 kids with a 3-D printer + Crowdfunding = 2 kids with 20 3-D printers producing plastic widgets.

Before you spend your money on paint (and consultants) remember:

“There are no unintended consequences, only unwanted consequences.” ~ Slim Fairview. From The Quotations of Slim Fairview © 2010 – 2013

If you find anything here to be helpful, please don't hesitate to send me a really tricked out Mac Book and to tuck a few dollars into the envelope along with the thank you note. 
Thank you Slim.

Bob Asken
Box 33 
Pen Argyl, PA 18072

Warmest regards,

Slim

slimfairview@yahoo.com

Copyright © 2013 Slim Fairview

All rights reserved.