Wednesday, July 10, 2013

Focus, focus, focus. The essence of targeting.


Targeting should be one of the easiest concepts to understand in marketing.  Here's the deal:  Not everyone cares about everything.  Males don't care about feminine products.  Seniors don't generally get excited about video games.  People with modest means don't consider buying a Mercedes.  It goes way beyond that but you get the idea.

Once you settle on your target market, everything you do should flow from that.  Product, store decor, pricing, packaging, etc. etc.  Companies like Disney are masters at that.  Everything that has the Disney brand is all about kids and families.

When I was doing the marketing for Hawaii Pizza Hut, we were very focused on the family market (adults 25-49 with children at home).  Domino's pizza went after a mostly male target.  Little Caesar's went for young adults who wanted cheap pizza.  As a family brand, we weren't the cheapest option but we were high quality ... and we had a brand that was family friendly.  Our promotions were family oriented (the Book It reading program, cross promotions with family entertainment partners).  Our restaurants didn't have distracting video games that parents find annoying.  We didn't cater to large sports teams.  We didn't emphasize alcohol on our menu.  People got to know us ... and know who we were and what we stood for.

When branding is successfully focused on a particular target audience, a prospect will feel right at home interfacing with the company.  I don't feel comfortable walking around Nieman Marcus because it isn't geared for me, but I'm right at home in Macy's.

Papa John's pizza just launched a marketing program offering 50% savings to anyone over 50 years old (with proof of age and a savings card from Papa John's).  Pizza isn't a food that is consumed in any great quantity by seniors.  So, if Papa John's thinks they're going to build new volume with this
promotion, I think they're mistaken.  Seniors (unlike teens and young adults) don't generally say "let's get a pizza tonight."  So to the extent that they are redirecting marketing money to a target that is not well suited to their product - they're wasting their money.

Targeting is so simple.  Find a group that has an affinity for your product ... build a compelling product and value offering for them ... and stick with it. 

Wednesday, July 3, 2013

Sincerity in Communications




Companies and organizations are training front line employees to be polite – and that’s a good thing.  But sometimes the training can lead to insincere, ridiculous or even robotic communications. 
Let’s start with an example that doesn’t even involve a human.  When you insert your identification card into a First Hawaiian Bank automated teller ("Otto") the first screen that comes up says "Welcome!  It is our pleasure to serve you."  Really?  The machine is getting a kick out of the transaction?  I don’t think so.  This is a case of a ridiculous attempt to be polite.  It would be perfectly appropriate to say “Thank you for using Otto” or something similar.  But I find it ridiculous when someone programs a machine to express human emotion.  


Similarly, there are hotels that have programmed their employees to universally respond to a guest request with the phrase, “my pleasure.”  Sometimes that may be ok.  If I ask a concierge for a reservation or ask a desk clerk for extra towels that could be an appropriate response for a customer-oriented organization.  But, it shouldn’t be universal.  “Please give me a wake up call at 4 a.m.”  “My pleasure.”  Really?  You take pleasure in waking me up at 4 a.m.?  “My toilet is overflowing, please get it cleaned up.”  “My pleasure.”  Right.  Employees should be polite – but sincere, otherwise the exchange just sounds artificial. 

Here’s another case of hospitality training gone awry.  A hotel trained all of its staff (including housekeepers and groundskeepers) to make eye contact and greet the guest when they are within ten feet.  The result?  Housekeepers and groundskeepers avoided guests like the plague.  
I’m all for civility and polite exchanges.  But they have to be sincere to be believed.