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Luke 11:17b

"Any kingdom divided against itself is laid waste; and a house divided against itself falls".

Just for the sake of argument, let's say you are in charge of the marketing department for your company. Further, let's say you always put the company's interests first, even before the personal interests of yourself or your employees.

In short, you are the ideal team player. After some extensive market research, you and your staff come up with a plan to better respond to the market.

Your Plan

Your plan shows that your customers identified some specific product improvements that need to be made. You also found that the market is more elastic than previously thought, and will tolerate a 5% price increase with only a 1.5% decrease in unit sales. The net effect will be a 20% increase in the company's profits, badly needed to fund new product development.

You also suggest that sales people might quit urging the company to cut its prices if they were paid on the profits they produce instead of gross sales. Instead of being the hero, you discover that every other department head wants your head ….on a platter! As a result of their lobbying, the company president calls you aside and gives you "The Lecture".

"The Lecture"

"Listen to me, your job is marketing ….. we don't pay you to design new products or redesign old ones; how the sales people are commissioned is really none of your business; and you aren't responsible for the production efficiency of our manufacturing operations …. everybody has their job, your job is to make people want what we decide to produce!"

Perhaps you have never been told to mind your business in exactly those words, but whether spoken or unspoken, the job description for too many marketing departments really is "…..everybody has their job, and your job is to make people want to buy what we decide to produce!"

Fundamentally Flawed

There are some fundamental problems with this approach. It encourages each department to 1) pursue its own self interest, 2) form different views of what is best for the company, and 3) operate according to both hidden and candid agendas that may or may not be in the best interest of the rest of the company.

Another problem, probably the most serious, is that it reflects an arrogant assumption that marketing should force customers to buy what the company produces rather than have the company respond with the goods and services that best meet the market's needs.

This does not constitute a picture of a company that is posturing itself to win.

Competing Priorities

Too many well meaning managers have received some version of "The Lecture" when they have tried to do what they really believed was best for the company. Who knows, maybe the other managers were also doing what they felt was in the company's best interest.

What is more important, market share or profits? Should Production manufacture the highest quality product that is technically feasible or should quality improvement be weighed against production costs and market preferences?

The simple fact is, the "right" corporate strategy is the one that best furthers the company's interests. The problem is, in most companies, no one really knows exactly what the company's interests are. For some reason, in many companies senior management seems hesitant to clearly lay out the company's priorities. Perhaps they mistakenly believe that they can have it all.

Unfortunately, in the real world, what makes decisions difficult is the fact that you can't have it all, you have to choose between competing priorities. That's why the Corporate Mission Statement is the most important part of your corporate plan.

Mission Statements That Work

The Corporate Mission Statement must clarify that the company's first priority is to attract and retain customers. It must then go on to specify the sequence of subordinate priorities so that individuals and departments can evaluate which choices best accomplish the mission statement's goals.

Finally, it needs to be dynamic, so the priorities reflect changing competitive, regulatory, staffing, and other conditions that affect the company. The result will be a statement that everyone in the company will know well, because it will be the standard used to determine which proposals, projects, and ideas are "good" and which are "bad." 

The best idea is the one that brings the company closest to accomplishing its mission statement.

Customers Count

Customers are the only source of income for the company. Attracting and retaining customers is the business of everyone in the company. In fact, if anyone's job description doesn't somehow contribute to either attracting or retaining customers, someone needs to figure out why that person is still being paid!

An important issue many companies seem to forget is that satisfying customers is not the job of the marketing department, it is the only reason the company exists ….this makes it everyone's job.

The marketing department is the clearinghouse for customer satisfaction, charged with keeping the company in tune with the market's needs and then efficiently informing the market where its needs can be best met …. your company.

Marketing - A Corporate Responsibility

If the marketing department is doing its job, it is in touch with the market, and knows what changes in the product will give the company the greatest competitive edge. In order to stay in touch with the market, the marketing department must conduct formal research, but it must also obtain the cooperation of everyone in the company.

The corporate plan needs to reflect that marketing is not a department, it is a company wide responsibility.

Meet The "New Kids"

Perhaps one of the aggressive new companies eating into your market share is beating you at your own game (where you should have the "home field advantage" but for some reason seem to be losing anyway).  Why?  How?  Because they are totally customer driven, just like your company was when it first started.

Their delivery drivers actually look around to see what else the customers are buying, and feed that market intelligence back.

Their sales force does more than just promote their product - it is gathering market intelligence about your product (what features are your competitors emphasizing, do the customers care about those points, what product innovations are your competitors hinting at for next year?) and suggesting ways to "head you off at the pass".

Their accounting department is always looking for ways to offset the need to balance the company's bad debt control with marketable terms. They know what the competition offers and look for ways to make it easier for customers to buy and pay for the product.

Their production department is always pestering the sales and marketing department for product feedback, trying to balance quality, price, and value so that the customer's purchase decision can be a "no-brainer".

Build In Customer Satisfaction

It's a funny thing - while virtually every company has an organizational chart that clearly shows who reports to whom, virtually no one has a market intelligence chart to show people to whom they should report their ideas and observations.

How many personnel evaluation forms have a space for "customer satisfaction" for anyone other than the sales force? The simple fact is that people (and departments) do what is rewarded. Here's how it works. People do what is rewarded. Companies reward people for what they measure. Companies measure what is easily quantified. Therefore, people do what is easily quantified.

Unfortunately, Customer Satisfaction can be difficult to quantify. That's why few companies do more than talk about it. That's why the mission statement has to place customers first, and that's why management has to weigh everything against its impact on the customer.

Corporate mission -

Market Dominance!

Customer driven companies don't try to make everyone happy. They identify which portion of the population they want to please and do what it takes to accomplish that objective.

As a result the company won't offer some of the products their competition offers, because too much product diversity makes the cost of development, production, distribution, and stocking parts too high. That would not be good for the customers the company wants to please.

The customer driven company probably doesn't have the most lenient credit terms, because bad debt drives up prices, and that isn't good for the customers.

The customer driven company doesn't have the highest quality in the industry because it sets its quality standard by asking customers what they want instead of relying on a TQM consultant's opinion.

The bottom line is simple ….every decision is made for the good of the customer. The company driven by a Corporate Mission Statement that places customers first has taken the single most important step toward market dominance.

Best Picks...

....If you are in a hurry and can only read a few articles, the following five are the ones we hear the most about...

They are a bit longer than most of the others, but they will give you something to think about....

Could You Run A Winning Football Team Like You Run Your Company?

Teamwork - Coaches and players speak to business professionals, encouraging them to build teams that can win.  Let's compare your company to a professional football team....

Eating The Heart Of The Watermelon

The heart of the watermelon is the sweetest and lowest hassle part - so why bother with the rest?  You may not want to follow this thinking at your next picnic, but it sure works when making customer and product decisions!

Quit Your Company - An Exercise

This exercise will force you to see your company and the competitive landscape differently than ever before.  It will help you decide what needs to be done in order to stop the competition you don't even have yet...

Dealers And Distributors (Short Version)

You may need dealers and distributors- or not.  The real issue is whether your end users feel that they need your dealers and distributors!  Companies win when they offer end users what they want....

Dealers And Distributors - And "Going Direct"

If you have a dealer and distributor network, should you consider "going direct"?  Let me ask you this - if a major competitor did, what would happen to you?  That's your answer - this will help you see how to do it....

Management Theories

Not all management theories work - and this section discusses some theories that have problems

Reality Instead Of Theory

You can't believe everything you have been taught about business.  Most of it is true, good information - the trick lies in knowing which parts to believe, and which parts to reject.

Positive Reinforcement Myths

Positive reinforcement can result in training and motivational miracles - but there is one little catch...everyone in the "real world" seems too well fed for it to work!

Truth About Advertising - What Advertising Awards Mean To You

Advertising awards are something ad agencies love to display - perhaps it gives them a feeling of credibility.  It's a shame those awards don't reduce their client's advertising costs or increase their client's sales...

"One Size Fits All" Management Fads

Management fads do a lot of damage - they send companies off in wrong directions, and they erode the confidence of managers.  How?  Managers try the latest fad, and when it doesn't work, they assume it is because they were not good enough - it's a shame, because their instincts are almost always more effective than the fads...

TQM - The Quality Myth

TQM has been a major force for a number of years.  Although it has lost some of its luster in many circles, its proponents (consultants getting wealthy, perhaps) continue to re-invent it under a constant flow of new names....

Your Departments

The last group of articles in this section apply to sales and marketing.  The reason this area is receiving so much attention here is that there seems to be more confusion in that area.  Let's just take a quick look at some of your key departments...

Accounting Excitement

If business was a sport, the accounting department would be keeping score.  Unfortunately, the accounting department seldom provides the kind of information managers need in order to make good decisions....

Purchasing

Purchasing is more than "buying what you said you wanted", it is a proactive role that investigates better products and anticipates demand.

Engineering And R & D

Engineering creates your "new and improved" products - you need to make sure they know what your company and your customers want from them.

Manufacturing

Manufacturing - Manufacturing efficiencies largely determine your costs - and costs largely determine your competitive position!  Efficiency requires great management, management willing to do what it takes to attract and retain the very best people.

Entering New Markets - Then Closing The Door Behind You

Entering new markets - you couldn't do it if the companies already in those markets were staying in touch with their customers!  Remember that after you enter a market - or you may become someone else's "new market"!

Innovate, Renovate, But Satisfy Your Customers

Things have changed faster than most companies have changed - the web, overnight delivery, long distance charges, longer lasting products, direct (to consumer) sales - there are many ways to combine these things to satisfy your customers - and gain market share.

A Winning Marketing Campaign - Lousy Sales

Heartbeat Of America.  The ad campaign won awards, but market share slipped.  Winning companies match great marketing with great products - then the competition loses while consumers win.

Strong Companies Win In Efficient Markets

Marketing is not the art of lying without getting caught.  When your product is the best choice, there is no need to lie.

Applied Market Research - Satisfied Customers

Market research can come from a consultant, but it should also come from your own employees.  Having market research means nothing, however, if you don't use it to make customer driven decisions.

Selling To People - Not Markets

Sometimes we can forget that markets don't buy anything, people do.  Market research is valuable, but make sure it tells you about real people.  Nobody wants your product - they want a way to solve a problem or meet a need - perhaps your product can help them accomplish that.

Advertising For Sales, Not Awards

Advertising - why are you doing it?  If it is for sales, you may need to make sure your agency understands your priorities - instead of pursuing "awareness" and "impressions" - if you want sales, hold them accountable for sales!

The Rest Of It...

Not everything fits into a file, box, or compartment - this is the rest of it....

StrategiesThatWork.com Homepage

Marketing should not be a lie - build a company with productive labor, efficient purchasing, great design, accurate accounting, rational distribution - and the result is a truth you are proud to tell.  Marketing becomes a simple matter of telling the truth to people who are interested!

Eating The Heart Of The Watermelon

The heart of the watermelon is the sweetest and lowest hassle part - so why bother with the rest?  You may not want to follow this thinking at your next picnic, but it sure works when making customer and product decisions!

Dealers And Distributors - And "Going Direct"

If you have a dealer and distributor network, should you consider "going direct"?  Let me ask you this - if a major competitor did, what would happen to you?  That's your answer - this will help you see how to do it....

Dealers And Distributors (Short Version)

You may need dealers and distributors- or not.  The real issue is whether your end users feel that they need your dealers and distributors!  Companies win when they offer end users what they want....

Quit Your Company - An Exercise

This exercise will force you to see your company and the competitive landscape differently than ever before.  It will help you decide what needs to be done in order to stop the competition you don't even have yet...

Three Kinds Of Employees

The right employees are one of the most important resources a company has. Most employers are quite aware of how valuable a great employee can be, but have a difficult time figuring out who the great ones are.  It helps to divide the work force into three groups.... 

Your Mission Statement - What It Means

A mission statement is not something you can carve in a plaque next to your door, because it needs to change.  Mission statements establish priorities, and if customer satisfaction is not at the top of those priorities, you may have a problem.

Could You Run A Winning Football Team Like You Run Your Company?

Teamwork - Coaches and players speak to business professionals, encouraging them to build teams that can win.  Let's compare your company to a professional football team....

Performance Reviews

Performance reviews.  Yawn.  While performance reviews are not exciting, few things can do more to shape your company.  Done right, they can make a big difference...

"Honey, We Need To Talk"

"Honey, we need to talk" are terrifying words when they come from your spouse.  You may feel that you have an "open door policy", but walking in that door feels a lot like "Honey, we..." to most employees.  You need an easy way to stay in touch - like lunch!

Partnering And Sole Sourcing

Partnering - we hear a lot about it, but if you aren't willing to be a partner in your purchasing, you are not ready to ask your customers to trust you in that role....walk in their shoes for a moment.

Customer Focus

"Customer Focus" is something we hear a lot, but seldom results in much action.  Funny, isn't it, that customers are the only people who leave money in your company - everyone else is there to take some out....

Science Of Yourco

You don't have to look further than the nearest business magazine to find a few easy steps to management success - so why bother to develop a "Science Of Yourco"?