Sunday Posts

I have been through quite a bit - big companies, small companies, failed start-ups and successful ones, big companies pretending to be start-ups and start-ups pretending to be big companies - and despite my sincere efforts, I am yet to discover how to market a start-up. One could indeed say that about Marketing itself: John Wanamaker's " Half the money I spend on advertising is wasted; the trouble is I don't know which half " has been embraced as the justification of the marketing practise. However, while this may sound playful or funny in a big company, such an approach is plain fatal. The company could easily die, and mostly die, before ever reaching the useful part of marketing. But, then, this is perhaps a starting point to talk about marketing a start-up. That there is no money to waste, and therefore, no money to spend on marketing without knowing what works. Which is basically to say that start-ups must market itself differently from the big companies...

Of all the strategies a company could conceive to win hearts and minds on social media, nothing is perhaps better than what its employees can do, if they engage socially.  Usually, the Social Media strategies that companies come up with are not very different from the traditional PR. It is top-down, canned good news stories, written by professionals. It has a very predictable, managed feel. Managed by professionals who have transitioned from traditional to social media - what an inconvenience - it can not but be that way.  But, social media is different because of the need for authenticity. Broadcast media has the reputation for editorial control (even if grossly overestimated) and this gives automatic credibility to something seen on TV. Social media has no such thing: Anything can be on Facebook, or Twitter. What such stories lack in credibility, can only be made up by authenticity. And, while one can, and indeed try to, be authentic, it is a hard thing to fake by ...

Being The First Writing in 90 s, Al Ries and Jack Trout made the Law of the First their first law in the celebrated 22 Immutable Laws of Marketing . The proposition simply was - It is better to be FIRST than to be BETTER! Citing a rage of examples from Yuri Gagarin, Charles Lindbergh, IBM and Harvard, their point was that customers always remember the first, and the second person/ brand doing the same, even if they did it better, is usually forgotten. Presented as a Law, this may not really stand up to any scrutiny. IBM was never really the first, as were not a host of brands that came to dominate the market. In fact, Ries and Trout themselves added all those qualifications in their later laws - like, it is not First in the market but first in the mind! To be fair, what they were trying to do is not create new laws based on evidence, but rather presenting the generally accepted marketing wisdom and marshaling the evidence to support it. But, it held - and we got obsessed wi...

As a trained marketer, my default position is - we must start with the customer! I have taken this as an article of faith, a common sense position that underlie all businesses, that businesses exist to solve the problems of the customers. That lasted till I started putting it into practice. The customers I met either did not care to talk to me or wanted me to give a solution. The entrepreneurs I met told me that the customers do not know what they want (quoting Steve Jobs, I figured out). And, the marketers, I realised, were all telling me that it is about telling the customer they are getting what they want, while giving them what we want to give them. I know this is cynical, but this is exactly what it feels like. True, we get to hear about companies which love their customers. But, once you have been inside the marketing box, it is hard to know what is for real. And, besides, even if some companies do and we get to hear about them, we get to hear about them simply as they are ...

Maggi Noodles was a great success story in many ways. When it arrived in 1983, the Indian concept of snacks did not necessarily include Noodles. Its timing was great - just as television and cricket were conquering Indian homes and middle classes were looking beyond government jobs - and its communication was perfect, the 2-minute food! It combined global aspiration, motherly love and emancipation of women into one, the perfect combination for India. The traditional Indian snacks, all those Puri-Subji and Dosas, gave way - none of those could be made within a few minutes and without great skill and preparation. Maggi even tasted modern, always warm and alien to any taste one has grown up with. This was, in a way, one of the first stirrings of culinary globalisation! As it falls apart in the wake of the nationwide ban on Maggi this month, this makes a cautionary tale. One regional authority first discovered unusual amounts of Lead and MSG in Maggi, and then the panic spread nation...

Recent discussions with a couple of start-up entrepreneurs brought up a topic that used to be my favourite: Obsessive Branding Disorder (OBD). This was the title of 2008 book by Lucas Conley which made it to the Best Business Books list of Strategy&Business that year, with a simple and powerful idea that you can indeed brand too much! This was a difficult idea to grasp for anyone involved in marketing, because our worldview can be summed up as, Brands eating the World! Our job, we tend to think, is to claim every piece of estate, real or virtual for the brands that we are custodians of. In the rush to better competition, we intend to leave nothing, urinals to the sky, if we can afford, to imprint our brands. We want to claim words, how cool is when someone talks about Googling something, and even emotions - feeling very Apple, anyone? The idea that we can overshoot the mark is indeed quite unsettling. But, if we look to others, it becomes quite obvious. We suddenly start...

Sales seems to be a hateful career, if you go by the daily pleadings of the desperate salesmen that we are subject to everyday. However, nothing moves other than sales, people need to be persuaded, nudged or educated to try out anything new or give up something harmful, and indeed, as Daniel Pink contends, that while the 'sales' is dead, everyone has to sell these days. I meet a lot of young unemployed graduates who want a 'desk job', which essentially means that they want a process-based job and don't want to have anything with sales. I would usually tell them that this is a mistake, as process-based jobs, a direct casualty of office automation, are somewhat in short supply. And, that, sales does not have to be the desperate, short term sales jobs that is our usual image of such a profession. Today's salesman is strategic, knowledgeable, often an expert and often an entrepreneur. The people who have to do most sales are those who believe in something, the...

India seems indecipherable. It is an exciting market, just that it never materialises. I have used one expression - borrowed somewhat from James Kynge's book on China - that while India looks like a huge multiplier effect for businesses from outside, the moment you set foot in the country, the endless game of divisions begins. Also, India is like El Dorado - everyone wants to go there, but no one knows how. After repeated failed efforts, excitements in the world markets, the sentiments are now cooling: The India play is treated with caution, often avoided in favour of more exciting regions, like Brazil, or Indonesia, and now even Burma or Mongolia. However, it is hard to ignore India. Apart from the fact that it has so many of the new consumers, it is a potential breeding ground for competition in other markets. Leave India to local companies for far too long and a competitor will certainly emerge, who will better the game in prized markets that you wanted to keep your eggs in...

Oracle has made the announcement to acquire Sun, for $7.4 billion dollars in Cash. This is a bit of news. Obviously what dominated the tech circles for last few weeks is the possibility of a Sun-IBM merger, which made sense technology-wise. Till Sun turned IBM down, it looked like a done deal, and it is now emerging why Sun was so confident in the first place. Hopefully, this deal will go through. After the two failed headline mergers, that of Microsoft and Yahoo and of Sun and IBM, one would wait to see this through before making any noises. But, the two companies seem better fit than the other pairs here. Sun and Oracle worked side by side in many projects, and I am sure they are defined the common enemy above everything else. Besides, Oracle and Larry Ellison seem particularly adept at pulling through successful mergers. Oracle has managed to pull through a particularly bitter acquisition battle with Peoplesoft , and followed this up with a successful acquisition of Siebel , both of...

Introduction : The Business of Gift Giving Business gift giving has always been common and contentious at the same time. Business gifts are usually seen as an ‘advertising, sales promotion and marketing communication medium’ (Cooper et al , 1991). Arunthanes et al (1994) points out that such gifting is practised usually for three reasons: (a) in appreciation for past client relationships, placing a new order, referrals to other clients, etc.; (b) in the hopes of creating a positive, first impression which might help to establish an initial business relationship; and (c) giving may be perceived as a quid Pro quo (i.e. returning a favour or expecting a favour in return for something). The practitioners of gift-giving generally argue that doing business is often an aggregation of personal interactions and relationships, and gift-giving should be seen as a natural way of maintaining and enhancing these relationships. ‘Business gifts, especially one given in the course of the festive s...

A very interesting discussion about stickiness of ideas is uner way. Malcolm Gladwell started this recently in his Tipping Point - he argued that some ideas stick as the people who propogate them are more socially connected than others, and they can spread an idea faster, further. This is indeed the holy grail of Word of Mouth marketing - finding influencers, who can start a trend. Indeed, Keller Edward has also written a book on them - The Influentials . However, there is a contrarian view too, and read more about this on Fast Company, in this brilliant article 'Is Tipping Point Toast' - http://www.fastcompany.com/magazine/122/is-the-tipping-point-toast.html To summarise, what Duncan Watts is stating here some ideas stick whereas others don't has less to do with people who propagate them, and more to do with society's preparedness to accept the idea. 'No army in the world can stop an idea whose time has come' - as Victor Hugo famously observed. So, we always k...