30 November 2008
· Filed under Marketing · Tagged unique selling proposition, usp
Marketing 101 teaches us the all important USP – what is the key distinguishing factor that will differentiate one product from another? How does your product stand out from your competitors? Sometimes differentiation presents an interesting dilemma: Do you offer what you know the market wants, or do you offer what the market knows it wants?
GraphJam’s satiric representation of the content found on women’s magazines highlights the situation for us. Whilst a woman may, quite likely, be interested in a wider range of topics, the magazines have adopted the approach of running with content that sells the mags. Women choose to buy their mags to improve sex, lose weight, and catch up on gossip – but there are so many more intellectually stimulating topics that could enrich the readers life substantially more.
Take asset management companies – a few have realised that many investors want short term gains & don’t invest with a long term view. These companies promote their short term asset performance data & win customers on this basis. Other, traditional asset management companies (such as Allan Gray) follow a long term approach & consistently provide better investments over a period of 10 years than their competitors. However, the long term asset managers have historically struggled to grow their investor base as agressively as what their short term counterparts have achieved. So – which approach was right? Giving the market what it wanted or giving the market what they knew it needed?
Apple has made a breakthrough recently in its move to Intel-based platforms for all its computers. This allows windows to be operated either as the primary or dual operating system on the computer, along with the Apple OS. This change in approach has meant that Apple is not too different from PC. The difference was always liked, but created uncertainty when it came down to make the purchase. Migrating from PC to Apple nowadays presents a far less unsettling experience. The USP is there, but historically Apple was viewed as ‘Opposite to Windows, and more complicated’ it is now viewed as ‘Different to Windows, but simpler’.
Buy the Art of Negotiation Book Now
The Art of Negotiation book pushes the concept of entering a negotiation as moderately as possible. The book goes on to explain how taking an extreme position often antagonises the opposing party. By negotiating your viewpoint as moderately as possible, you are more likely to achieve the desired outcome.
Selling a product to a customer is a negotiation. Perhaps a more moderate USP is the way to go rather than positioning your offering as entirely opposite to the rest of the market?
Ultimately, a USP is in place to differentiate your product, but more importantly, to sell your product. Commercial pragmatism needs to drive marketing approaches and if customers demand a particular type of product and are not ready for something different – don’t try to sell it to them. It is a business – not a religion. You can convert customers to your way of thinking as you build trust, which may be more possible by providing an undistinguishable product and then slowly changing it until your vision is met. Convert existing customers to your view of how a product should work rather than starting out by trying to win new customers with something so revolutionary that it may just scare them off!
by Sean Riley
24 November 2008
· Filed under Uncategorized · Tagged event marketing, Springboks
Scheduling ad campaigns with key relevance to a big event can produce a big pay off for advertisers. It can also backfire terribly, as Nike discovered this past weekend in England.
For the non-rugby supporters, South Africa beat England 42-6 at Twickenham this weekend – the biggest margin England has ever suffered defeat by at Twickenham by any team. Nike took advantage of the marketing opportunity and displayed ‘Bok Ready’ advertisements across London in the lead up to the game – a game experts predicted was Englands for the taking. Also, the Springboks pulled through & embarrassed the Brits once again. Go Bokke! by Sean Riley
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Event-based marketing gone wrong
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20 November 2008
· Filed under Search Engine Marketing · Tagged google, google agencies
Many customers in South Africa are confused about who should manage their online marketing campaigns. With Google South Africa disintermediating the industry in many cases, by directly pitching against their own certified professionals, customers are confused. When Google says ‘we can manage your Google ads better’ it’s pretty obvious that most customers out there will automatically accept that as fact. Agencies such as ourselves have to win the business based on good old fashioned delivery, metrics, and hard fact. It’s hard to compete in an environment like this, but here’re 5 reasons why any company should think twice before they let Google manage their budget directly.
- Independence
How can a single entity manage ad campaigns for 10 competitors? As a customer, you need to partner with an agency that has your interests at heart. Most agencies (as do traditional ad agencies) ensure that there are never conflicts of interest – you can’t sell home loans online for 10 competitors – when that happens everyone loses. For this reason, Google has internationally embraced agencies – but alas, South Africa is different. Every customer deserves the attention of an independent agency that has their interests at heart. Conflicts of interest mean the customer always loses.
- Google is one part of much bigger picture
Customers need to work with agencies that understand that Google is part of a whole bigger picture. As customers flock to Google to sell their wares, the auction pricing model means that economic viability begins to be challenged as competition grows. Customers need a comprehensive online marketing strategy, of which Google is an important part – but not the only part.
- What are Google’s objectives?
Does Google understand each customers unique objectives? Our experience has seen Google South Africa setting ‘expenditure targets’ for customers rather than identifying with the customers goals. Is the goal conversion (sales/leads), traffic only, or brand development? Google receives the ad spend so they are always better off when a customer spends more. Many agencies do not charge a % of ad budget managed and rather rely on flat rates – this highlights the objectivity that an agency can introduce. Most customers would by happy with lower spend and increased results – this is in direct contrast to what is Good for Google.
- Relationship
Customers need to build a relationship with someone that has the time to meet regularly, understand their requirements, their competitive landscape, and their unique challenges. Agencies offer this.
- Competence
The assumption is there that Google will always create better ads on Google than what agencies can. Our experience has shown that this is not necessarily the case. Most agencies in South Africa have been doing what they do for longer than what Google South Africa’s staff have been doing it. The agencies understand the local market place and have developed rich skillsets around Google’s product set and other advertising channels.
Ultimately, the beauty of search engine marketing is that it can be measured. If any customer isn’t sure whether or not they should allow Google SA to directly manage their account, I suggest splitting the budget between an agency and Google and measuring performance. If Google manages the budget better – by all means use them – I just can’t see that happening.
by Sean Riley
18 November 2008
· Filed under Uncategorized
Heatmaps offer a means to quantatively assess user attention span on your website content? Not converting traffic into customers? Perhaps your content is incorrectly laid out & not catching the attention of your audience.
Website heatmaps track attension span of your content
Heatmaps help you to assess what content is catching the eye of the end user. Whilst some content is obvious to the website owner, a first time user sees things differently. We can hypothethise all day long about how content should be displayed, but heatmaps offer a scientific methodology for optimizing content architecture so that traffics turns into sales.
Entelligence offers specialized heatmap analsysis. Using enhanced imaging and website attention span tracking, we are able to help identify content that is wasting valuable ‘real estate’ on your web page and content that is working.
Website ‘Real Estate’ refers to the space available on your website, generally everything ‘above the fold’ (on screen without any scrolling) is what counts. Western Users read content left to right, top down, so use this as a guide to where important content should be placed.
Further evidence exists that stock photography has become so over used that many users don’t respond positively to this & subconsciously classify the entire website as ‘junk’. Original artwork & photography is something worth considering to gain the users attention & turn that visitor into a customer!
by Sean Riley
17 November 2008
· Filed under Search Engine Marketing · Tagged stafford masie
According to a recent article on Biz Community, Mr. Stafford Masie recently accused South African agencies of fraud on Google advertising accounts managed for customers. He also went on to say that he will select 5 agencies in South Africa & work exclusively with them. Not surprisingly, his wreckless (unsubstantiated) statements led to an outrage in the online advertising community.
Fraud on Google Accounts
Stafford Masie paints a picture that fraud on Google accounts is prevalent. Why not substantiate this with hard fact & name the culprits? Instead, he has collectively accused the entire group of agencies in South Africa (and effectively only the 5 he selects will be above suspicion).
Going Direct to Customers
Entelligence has seen Google SA attempt to solicit customers to go directly to them. They competed ’secretly’ with us at first, and when it all came out in the wash they tried to bully us off our Yellow Pages account, threatening to deactivate accounts used to service our customer and prevent us from creating new accounts. Given some of the posts on Biz Community, it is evident that Google South Africa have been going direct to customers in many cases – this is immoral and unethical. And if they somehow justified their actions, why not disclose their intent upfront rather than let the agencies find out for themselves. Interestling, Google’s actions of directly poaching customers in South Africa is the one issue on Biz Community’s comments around this article that Mr. Masie has not addressed.
by Sean Riley
10 November 2008
· Filed under Uncategorized
My recent visit to New York was an eye opening experience. It is evident how small some markets are (such as South Africa) when you see the activity in the digital space in a city such as NYC. If South African businesses plan to really make it big, they need to start thinking internationally – fast. Our products & know-how compare, we just need to access these markets with the self belief that we can compete & deliver a competitive product from South Africa.
What’s happening in New York?
My wife, Tarryn, & I were in NY during the elections. When you’re in NYC you really are part of a connected society that touches the world in so many ways. In just a week, we saw Kevin Bacon, Katie Holmes, Taylor Swift, David Letterman, Artie Lange, and Gary Gulman. Sitting drinking coffee this morning we overheard two movie producers discussing a new show that they were going to run with. Everything happens in New York. The city is vibrant and offers everyone something.
Times Square
Times Square actually has a city ordnance that makes it a legal requirement for every business to display electronic billboards. Even the NYPD is lit up in garish turquoise & pink! This is a great example of a region within NYC getting together & differentiating themselves in a simple manner – making Times Square probably the most recognisable intersection in the world. Now that’s marketing!
Ticketing & Telesales
Buying tickets for shows is easy – phone Ticket Line & peform the entire transaction with a voice recognition system or book online. Despite the economic slump in the US, very few shows are empty – and there are even companies that specialize in giving away tickets for free at the last minute in order to ensure the show is packed. TCKTS is somewhere in between & sells last minute tickets at huge discounts – we saw All My Sons at 50% of the regular price.
iPhones & Google Maps
iPhones rule NYC. When I Googled a pub that was showing rugby in NY, the results were automatically delivered from Google Maps as the default. Each result listed the distance from my current location & clicking the result loaded a placemarked Google Map.
In Cab Marketing
Taxis all have a Windows based touch screen interactive video system which promotes events in NYC & allows passengers to navigate through New York’s information guide.
New York is a bustling, thriving city. I’d love to see Cape Town become something similar but with its own unique identity.
by Sean Riley
