By Mike Kolbrener
There is a new marketing type in town and they are called transumers. As classified by Rainer Evers in a trend briefing on trendbriefing.com, transumers are “consumers who are more interested in the experience rather than owning.” Well, yeah . . . that’s called renting. They’re just renters, right? Not exactly. Transumers do rent, but they rent items that normally require ownership.
Here are a few examples:
FlexPetz – A pet-sharing program that works like a time-share or fractional ownership in a jet. The service targets customers who want to have a dog but cannot care for it full time.
FractionalLife.com – With the tagline “The Smarter Way To Own”, FractionalLife offers partial ownership in an array of products and services. As expected, categories include yachts, jets, luxury vehicles, but other offerings such as high-performance computing and livestock are unanticipated.
Bag, Borrow or Steal – An online luxury bag and jewelry sharing service.
Zipcar – A car sharing program that allows members to reserve and drive a car whenever they want. Should you be targeting a transumer segment among your target audiences? Your answer might be yes if: • You sell luxury items or your product or service requires a large, up-front capital investment. • You find that an audience segment for your product or service doesn’t have the time to own or the need to own, typical of many targets who live in metropolitan areas and/or travel frequently.
By Mike Kolbrener
You got chocolate in my peanut butter! You got peanut butter on my chocolate! That very successful 1970s launch for what is now a ubiquitous treat is the perfect metaphor for the way marketing and sales disciplines often view each other. To make matters worse, most marketing professional have convinced their clients that “successful” marketing will get them noticed! What about marketing and branding that actually fills the new business pipeline? Novel idea, but it shouldn’t be.
How do you really generate sales? Some companies are lucky enough to ride the wave of an emerging technology, others are just lucky, the rest have to actually work at it. We’ll assume that you have something that others really want, have identified who those people are and then differentiated your offering from competitors. We’ll also assume that you have someone to sell your offering (even if it’s just you). Next, you might consider allocating a marketing budget of 2-4% of your gross revenue. Now comes the part that will define your sales success or failure. In order to get that 2-4% of gross revenue to actually work, you’ll need to align that marketing spend with your sales process. That means documenting how your sales team sells and weave in marketing tactics that are in lock step with that process.
Don’t have a sales process? There are many good ASP (on demand) and server-based options out there, but you’ll need to choose one (Landslide.com or Salesforce.com). Next, find out how often your sales people contact a prospect? How do they do so? Letters, phone calls, direct mail, email, newsletters, etc. How are those timed with relation to a projected close date? Herein lies the secret. It’s the synchronization of sales and marketing that makes it all work. When they are synchronized, they work harder than each on their own. At the end of the day, marketing and sales need to dance together. Just like peanut butter and chocolate. After all, marketing and sales are “Two great tastes that taste great together.”
By Mike Kolbrener
Back in October of 2007, John Quelch of WPP and professor since 1979 at the Harvard Business School, shared his insight with Laura Mazur and Louella Miles regarding the power of “branding an ingredient” as a key to better marketing a larger or more complex product or service. “When is the provider of the final product or service willing to compromise its own brand-building to add the ingredient brand on the package as well as in advertising? There are four conditions:
- The ingredient is highly differentiated, usually supported by patent protection, and so adds an aura of quality to the overall product. Think Gore-Tex for water resistant rainwear.
- The ingredient is central to the functional performance of the final product. Think Shimano gear systems on performance bicycles or Monsanto’s Nutrasweet, added to Equal sweetener.
- The final products are not well-branded themselves, either because the category is relatively new, because customers buy infrequently or because there is low perceived differentiation among the options. Think about all of Dupont’s ingredient brands for clothing, from Rayon through Lycra.
- The final products are complex, assembled from components supplied by multiple firms who may sell the “ingredients” separately in an aftermarket. Think cars with Michelin tires, Dolby stereo systems and Champion spark plugs. “
By Mike Kolbrener
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By Mike Kolbrener
Identifying brand assets and building their value is crucial before, during and after mergers and acquisitions.
In almost any industry, we have seen firsthand that branding and marketing of a target company directly impacts the success of M&A deals. And that timing is essential.
Enhance Brand Value Before M&A
If you plan to sell your business, don’t underestimate the impact of brand value on the final selling price—because acquirers don’t. Your brand is among your most important assets. An Interbrand/JP Morgan study found that brands account for over one third of company book value.* Another expert asserts that, on average, a corporate brand accounts for 8.5% of a company’s market cap.2** After selecting an M&A advisor to sell your business, you typically have 60 to 90 days to get your house in order before evaluation by private equity firms and acquirers. During this period, an expert branding partner should quickly identify your key attributes, and, working seamlessly with your investment banker or M&A advisor, implement the branding and marketing improvements that will most effectively increase your company’s selling value.
Integrate Brands After M&A
Mergers and acquisitions create unique opportunities: expanded offerings, new markets, economies of scale, better competitive outlook, and more. But studies suggest that up to 70 percent of acquisitions fail to deliver long-term value for the acquirer. If not addressed promptly, post-M&A brand issues—market resistance to a brand shift, brand confusion, incompatible marketing and sales process, negative perceptions of a deal among customers or employees—can form a “black hole” for a deal’s value. You’ll need to quickly assess affected brands or brand extensions and target markets, then devise and begin implementing a value-building brand integration strategy in the critical first 60 to 90 days after a deal. Taking these steps will help you maximize long-term brand value while avoiding the marketing missteps that cause so many deals to fall short of expectations.
* Brand Valuation: The financial value of brands (April 27, 04), Interbrand
** Speaking in Numbers, the Language of Bottom Line Business, David Stewart, University of Southern California (February 7, 2006), A panel discussion presented to the IIR 9th Annual Conference on Returning Marketing Investment