Year: 2008

All the media is reporting what is happening with the recession, Obama’s pending inauguration and the bailout of just about every big business in the world. Those are very important issues, don’t get me wrong, but from a marketing perspective I want to speak on what the strategy of the Big 3 automakers is missing.

Decades ago, GM was the biggest and baddest company on the planet. They had enormous assets, loads of employees (and lines of people lining up to hope to be an employee) and clout like no other at that time. Now they are on the brink of bankruptcy even with the government loans. They, along with Ford and Chrysler, have a huge hurtle in front of them and loads of issues.

The last one they are probably thinking about is their marketing and how they are reaching potential customers. Faith in these companies is nil. Worry that they still will collapse is prevalent. So, why would they keep the same marketing strategy of using mass media and standard discounting and promotion to entice customers to come purchase their cars?

Every car company uses a similar tactic: 0% interest, $2000 cash back, free upgrades and services. The Big 3 should be thinking about what is the fundamental barrier of consumers purchasing their cars? (the recession notwithstanding)

Faith. Lack of faith in those brands.

I don’t want to purchase a car or truck from a company that I am not sure will be around in the next 3 years to still provide a warranty. An automobile is an immense purchase and liability. Why not reassure consumers that they are going to do everything in their power to come out of this financial crisis as strong as ever? Restore faith in your brand and company.

Engage your potential customers in dialogue. Provide them what they want, not what you think they want. Use some of that $14 billion in loans to research your potential target market. Through that dialogue, make sure they know you truly want their business and will make the sacrifices necessary to do that. Be real. Be genuine.

The consumer doesn’t take kindly to smoke and mirrors and half-truths.

In what I think is a brilliant move, the CEO’s of Ford and GM announced they would take a $1/ year salary if the government approves the automakers’ bailout.
When I say brilliant, I am not talking about the fact they are attempting to persuade the lawmakers to approve the loan. Although that is part of the strategy. Seems to be a feeble one, however. The Senators overseeing this process aren’t stupid and may see this gesture as hollow.

I say this is brilliant in the fact that the public will see the announcement as a sincere attempt by them to get their companies and the American auto industry back on track. By making this gesture, they are showing that they aren’t immune to the recession and they, too, will be taking a hit. Being empathetic to the public creates a favorable impression that they truly want to rectify the situation, and not just make themselves a profit. Whether it is true or not, remains to be seen.

The other positive impression they are making relates to their employees. CEO’s of large corporations are not seen as the “common man” and do not relate well to their factory line workers and employees. This token could increase morale and confidence in the company and it’s leadership. Perception is reality and could really help them in the long run.

Little do people know that there are several CEO’s and upper management that take minimal salaries such as Yahoo, Google and Apple. That doesn’t mean that they people aren’t making a fortune. Most of their compensation comes in forms of bonuses, stock options and perks.
Still, it is a nice gesture even if it is meaningless.

Do your clients trust you? Would they refer  you to others? Do they take your calls every time?

Think about the best relationships you have had in your life. Those friends you grew up with. The group you shared the experience of college with. Those are the most solid relationships I have in my life. Any one of those people, I would do anything for. The camaraderie between us is solid, shared and significant.

Create that kind of relationship with everyone in your professional life. Three points to keep in mind to do that.

1. Be authentic- people aren’t stupid. Well, some are, but most people can tell if you are trying to pull a fast one on them.

2. Find shared interests- most everyone can find some common ground with anyone. Find those interests. Kids, hobbies, sports, movies, books, etc

3. Communicate often- every call doesn’t have to be a sales call. A quick email sharing a news article about your shared interests keeps your name in front of the prospect. Make sure you are keeping points 1 and 2 in mind when you are doing this. If you are off point, you could harm the relationship.

I write this blog about topics that I am knowledgeable about.  Why would I write about something I couldn’t speak intelligently about? So, I write about my experiences and from time to time, my pet peeves.
The reason I write anything is to encourage discussion and educate people who aren’t involved in marketing circles.
The topic I want to write about today is entitled, “Vendors Vs Clients”. I hope everyone treats these two different business relationships with the exact same respect, value and consideration. Unfortunately, I am positive that doesn’t happen every time.

Clients are the most important relationship a company has. They provide the sales, revenue and profit to keep your firm in the black. If treated and utilized correctly, they provide invaluable insight into your product and how to improve it to increase market share, sales and growth.
My question to you is: why would you not extend that thought process to your vendors as well?
Your vendors are an integral part of your company and provide an essential element to any business. They provide parts, service and the numerous components that keep your product on shelves or your service viable.
So, communicate with your vendors and be open and honest. They understand how business works and that circumstances change frequently. Most of us do not like confronting unpleasant subjects especially when the other party will  potentially react negatively.
However, the situation is only made worse with no contact. In cases such as these, no news is NOT good news.

Talk. Build trusting relationships. Your company will be better for it.

Let me first start by saying Linked In is a great networking resource and can really assist people expand their associations, facilitate great discussions and help small businesses in a variety of ways.

The issue that I have with some of the groups I have joined is some people are using it as a advertising channel. That is not why I joined the website or any of the groups. In fact, it really makes me think poorly of people that are placing their own advertisements in the group discussion forums. LinkedIn was created to help people “link” to other like minded business professionals. People are making the experience cheap by following this strategy.

I see this over and over in all aspects of life. People do not want to work for anything. They want to take the easy way out and hope to get results from it. All they are doing is hurting their reputation and, in some small business cases, their brand.

I do not trust a LinkedIn advertiser who is using a medium not mean for that purpose. This also goes along with other social networking etiquette such as a blog. In both instances, you must be upfront and truthful about what you are attempting to do. A blog (like LinkedIn) should not be a veiled sales pitch. Be open and start providing real and useful content to your network. This will place you and your brand as the authority on your subject and instill confidence and reliability, which will earn you a reputation as someone to count on. All that will help you get and retain clients, increase sales and boost profit. That is a good thing!