The most important first question is: “What is your business objective?” Only after you have answered this do you have a sufficient foundation to develop, execute, and invest in a successful marketing program. Use this simple, but effective thought process to guide your marketing decision-making “Objective, Strategy, Tactics.” Here’s how it works:

Step 1: Clarify your Objective

“What is your business objective?” The clearer and more precise this is, the more productive and cost-effective your marketing will be.

This is the level of clarity you should have for your annual business goals:
– WHAT: Increase a specific business measure (typically sales or market share) from X to Y
– WHO: Among specific target customers (e.g. new customers? existing customers? new channels?)
– WHEN: By what date will you accomplish and measure the business goals?
Now that you have a specific goal, you can develop marketing strategies and programs that link directly to your objective. Your business objective must link directly to your long term goals (typically a five year horizon) as documented in your Strategic Plan.

Step 2: Select Marketing Strategies to Achieve the Objective

Develop appropriate marketing strategies – which are ways you will accomplish the goal. Marketing strategies are not individual marketing programs.  They are the ‘hows’ not the ‘whats.’ The most successful companies and brands stay focused on three to five marketing strategies. This forces discipline and focus on doing fewer important things exceptionally well. Examples of specific marketing objectives are:
– Secure three new “A” accounts
– Increase retail distribution by 10 percent
– Increase awareness among target consumers by 8 percentage points
– Increase sales per transaction by 9 percent
Marketing strategies are the paths you choose to reach your goal. Setting and adhering to marketing strategies is a powerful tool to narrow your focus to only pursue “on strategy” ideas. Most companies have more than 15 percent of their marketing budget invested in programs that are not tied to one of their marketing strategies.  Does yours?

Step 3: Develop Marketing Tactics with Laser Precision

With your business objective and marketing strategies in place, you are now ready to build the marketing plan and evaluate marketing tactics.  Choose your tactics wisely. Make sure they achieve the marketing objective and are a sound choice, based on projected return-on-investment. Even though projecting sales is an imperfect science, marketing budgets must be critically evaluated, just like any other potential business investment.

When you choose among potential marketing tactics, 1) select the right marketing tool to accomplish your desired outcome (e.g. building consumer awareness and increasing customer loyalty are very different marketing challenges that require different marketing tools) and 2) choose the most productive, appropriate, and efficient option (i.e. compare alternative media or programs), different levels of investment in the program, and different creative resources to do the job.  Don’t make a sizable marketing investment in any program until you have evaluated its impact per dollar spent versus alternatives.  This does not recommend ‘analysis paralysis.’ Rather, it’s a plea for you to get the best possible marketing program you deserve

Step 4: Measure and Monitor Performance

Effective marketing, contrary to popular belief, yields measurable results.  Before you start a program, commit to measure the actual performance of the program versus the projected results. Evaluate performance at specific program intervals, typically incremental sales for the duration of the program, and at three- and six- month intervals after its completion, to measure sustained impact.  This keeps you and your organization focused on desired results, rather than activity.

Measuring program impact also gives you quantifiable return-on-investment information to determine whether you should repeat or expand the program in the future. The marketplace is littered with victims of doing marketing tactics without setting business goals. You are bombarded with these potential marketing tragedies every day. Avoid this common plight by applying the same amount of rigor that you use on your other strategic investments. Get more out of every precious marketing program – and dollar!-by using this simple but effective formula: “Objective, Strategy and Tactics.”

by Tammy Katz

1. Consumers LOVE, not like, the brand – Chipotle has extremely high levels of brand awareness and brand esteem, well beyond their peers, which yields very high levels of brand equity, from which a setback can borrow.  Brand equity is like a bank account: continued positive experiences build brand equity; issues will erode.  Consumers have a very strong personal affinity, love and respect for the brand; it’s well beyond a fast-food choice they visit.  In fact, Chipotle scores 83 (out of 100) on the American Consumer Satisfaction Index (ACSI), nearly at the top of all fast food brands, which average 77, well beyond Wendy’s (73) and McDonald’s (67).
2. Chipotle has been transparent in its communication and rigorously improved product safety – Once the second E coli incident occurred, Chipotle’s leadership has aggressively communicated taking responsibility for the problem, sought best-in-class system-wide food safety counsel and implementation, and has invested in redundant measures to ensure food safety.   In their most recent quarterly report, Steve Ells, founder, chairman and co-CEO of Chipotle said “We are pleased to have this behind us and can place our full energies to implementing our enhanced food safety plan that will establish Chipotle as an industry leader in food safety. We are extremely focused on executing this program, which designs layers of redundancy and enhanced safety measures to reduce the food safety risk to a level as near to zero as is possible. By adding these programs to an already strong and proven food culture, we strongly believe that we can establish Chipotle as a leader in food safety just as we have become a leader in our quest for the very best ingredients we can find.”  This contrasts with several food companies who either hid or understated their food safety or recall issues and were quick to try to claim it was solved with a reactionary nominal manufacturing change.
3. Favorable food safety and public relations are reassuring and reminding consumers to return – Yesterday, both the CDC (Center for Disease Control) and FDA (Food & Drug Administration) called Chipotle’s E. coli outbreaks over.  Chipotle will close its stores for several hours on February 8th to have a company-wide meeting reviewing new food safety measures.  Internal communication and execution of these improved processes are already in effect in their stores.  We also expect Chipotle to resume and increase its compelling advertising, in-store promotion, and couponing programs to welcome concerned consumers back to their stores and resume their unusually high frequency and loyalty of coming back to the stores.
4. Chipotle will refine, but stay true to its compelling promise of Food With Integrity –
   Chipotle loyalists are drawn to their unique positioning as a higher quality fast food option, strong price/value, and great taste.  While their will be refinements in product sourcing and distribution, the product promise of Food With Integrity will remain intact, and strengthened. Consumers will continue to see the Chipotle brand as a superior fast food choice meriting their continued loyalty.
   
5. Same-store-sales will rebound faster than industry averages – Since Chipotle has a stronger and more loyal customer base, traffic will improve more quickly than the industry’s typical 12-18 months to recover same-store-sales performance, as per Credit Suisse estimates. In addition, their marketing and promotional effectivenessand sophistication will also accelerate the pace of same-store-sales rebound.  We expect a recovery in 3-4 quarters, propelled by an even stronger in-store experience, product quality, favorable public relations, and consumer word-of-mouth.

Lessons learned:
1.  Give consumers a superior, differentiated product and a reason to love, not like, your brand.
2.  Beloved brands can, and do, recover from quality and public relations issues, if they are quick, contrite, and responsible.
3.  Be proactive and vigilant in your product quality processes, pre-prepare how you would mobilize to address a product quality issue.
4.  Incent post-crisis consumers to resume confidence in your brand and incent/reward them for their loyalty.

by Tammy Katz

Beyond patents

Design Patents.

2022 Annual Plan Checklist

1. Develop a Written, Market Based Growth Plan Carefully

• Analyze and segment your customer and consumer base, prioritize by growth potential
• Understand what your customers’ unmet needs and why they will choose your superior product or service
• Build a strategy that leverages your business model: market opportunities, your core competencies and where you are most profitable

2. Widely Communicate Your Growth Strategy

• Summarize your 3-5 Key Growth Strategies, based on factual analysis (e.g. channels, products/services)
• Growth Priorities should be quantified and clearly communicated throughout your company and key constituents (e.g. suppliers) so everyone understands them and is aligned
• Innovation should be among your top priorities; have clear parameters (fertile areas in which to innovate) to provide direction

3. Have, or Get, the Right Accountable Team

• Have accountable talent who can lead and drive respective pieces of the growth strategy
• Have strong and clear inter-department communication and processes
• Have the right talent who can produce; commit to coach up, outsource for, or dismiss those who can’t

4. Execute with Cross-Functional Precision

• Have clear leadership, accountability and measurement of top initiatives
• Maintain ongoing cross-functional leadership and communication to keep key initiatives on track
• Track key programs quantitatively and refine them based on in-market learnings

5. Deploy Effective and Efficient Marketing

• Marketing should identify and drive consumer and marketing growth opportunities
• Marketing should develop and lead a clear marketing strategy that directly ties to growth strategy Your brand positioning(s) should be clear, consistently communicated.
• Your marketing communication and R&D efforts should consistently strengthen your superiority
• All major programs should be on strategy, measurable, optimized across multiple media, and provide measurable return-on-investment

6. Drive Productivity… Everywhere

• Set ambitious, achievable productivity goals (cost reduction/efficiency). $1 in productivity > $10 in new sales
• Challenge each function to develop specific, measurable, cash-saving (not conceptual) programs; drive wide participation
• Celebrate, publicize, and reward best programs. This creates a ripple effect for more productivity

1.   Awareness Trumps –  The ascension of the Trump brand has been astronomical, largely due to awareness.   You had heard of him before, and you’ve certainly heard of him now. Millions of Americans were exposed to the Trump brand through his television series, real estate and entertainment holdings, media-inducing polarizing comments, and the unique, visual persona.  He’s said more soundbite friendly and contentious comments since, further gaining publicity.   The political pundits were quick to downplay his legitimacy, yet he dominated media mentions.   If you’ve heard of something and it registers in your mind, it has successfully penetrated the critical consideration set – the short list of things you might choose.

Latest NBC/WSJ Poll

2.   Differentiate –  Ben Carson, Carly Fiorina, and Bernie Sanders are succeeding, largely on their ability to  differentiate themselves.   Ben Carson expertly plays the ‘I’m from outside of politics, plain-speaking neurosurgeon’ game, Carly is the ‘seasoned ex-HP CEO, non-Hilary female leader,’ who deftly leveraged the “look at that face” Trump gaffe into a gift, and Bernie Sanders is the self-described democratic socialist focused on improving middle class inequality.   He also is the sole non-Hilary Democratic option.   Conversely, Scott Walker, an early front-runner dropped to oblivion and out as one of the many ‘successful governor with relevant experience’ options. You must be different, and relevantly different, to be selected from your competition.

3.   Be Authentic – Consumers demand authenticity in their brands and selections.   Consumers have a strong “bs meter”  and have 24/7 access to social media that can uncover and amplify lies, inconsistencies, and skeletons.   On the (at least perceived) authenticity meter (net score on honest and trustworthy, latest Quinnipiac poll) Carson (+51),  Biden (+45), Sanders (+23), and Bush (+19) lead, while Clinton (-31) and Trump (-22) take a beating.   A brand is a promise to consumers – what you are, what you stand for, and what you consistently do – and consumers value and crave credibility and authenticity.

4.   Resonate – Your offer must resonate with your target audience; know what their key issues are, articulate how you solve their most important issues, and speak their language.    Despite his polarizing personality and image (top 4 Quinnipiac poll descriptors: arrogant, blowhard, idiot, businessman), his surge is largely explained because his messages of ‘make America great again’ and ‘sick of insider incompetence’ resonate deeply with a vast population.   He may ultimately have a product and personal credibility gap (29% of GOP voters would definitely not support Trump), but his message unquestionably resonates.

5.    Cut Through the Clutter – You must sharply define and articulate your unique brand positioning.  At the moment, Trump, Carson, Fiorina, and Sanders’ brands are memorable and clear.   Although still early in the campaign where Trump’s style over substance noise is captivating consumers and the media, several extremely solid, admirable and, arguably, superior talent – like  Kasich and Pataki are going relatively unnoticed so far, as 57% and 58% “haven’t heard enough” about them, respectively.

As the campaigning and jockeying for position continues, we continue to enjoy the show and its rich brand and marketing lessons.   The marketing communication is riveting, but great brands perform on measurable criteria over time.

by Tammy Katz

Rather, they do tell you that the people who already are aware of them and know what they do (presumably anyone but the audience) are knowledgeable.     So they are talking only to people who already understand and use their services.     This is a great example of everything you don’t want to do in your advertising.

Sadly, they repeat the strategic vagueness on their website as well (At least the campaign is consistent).

To avoid this, take these simple steps:

1.   Clarify your brand proposition – Who are you, what problem(s) do you solve, who is your target audience, and why are you superior and unique.
2.   Determine your advertising goal – Are you trying to attract new users?  (like BDO is attempting, but failing to do)  Convince current customers to buy/select/consume your brand more frequently?   Are you trying to improve your brand image?    If you are not clear about the purpose of your advertising (or any marketing investment), you can count on meandering advertising, unless your marketing partners are clairvoyant.
3.   Assess your advertising from the consumer’s perspective – What do they know about you now?  What do you want them to know about you after they have been exposed to your message?    Make sure you are giving them a persuasive message, in their language, based on what you know from your consumer research.     Again, BDO makes a common error of crafting advertising based on their internally focused, prideful self-assessment.     It’s a missed opportunity to tell potential customers of who they are, why they’re a superior service, and how they will solve the customer’s problems.
4.  Pre-test your advertising – There are several great advertising effectiveness evaluation methods, including MSW ARS and IPSOS ASI, that will give you unbiased, quantitative and credible feedback on if your advertising campaign is persuasive and has achieved your marketing goals.    These are small investments that can be done while the campaign is in the idea phase, prior to wasting money on producing or airing ads that do little to grow your business, or even may do harm.

by Tammy Katz

2.  Resize to meet changing consumer preferences –   As consumers are trying to reduce their consumption of soft drinks and/or improve their portion control, Coke has come to their rescue with their new, appealing 7 1/2 ounce cans, ostensibly for consumers to choose versus 12 ounce cans.    And consumers are delighted; sales volume is up 9% according to the Wall Street Journal, while paying nearly double – yes double – the price per ounce for these cute cans.     Yes, this is an exaggerated, albeit successful example, but the bigger point is that Coke is re-evaluating serving sizes from a consumer perspective and looking at pricing on a price per ounce vs. price per unit basis.
3.   Innovate for new usage occasions –  Similarly, Crystal Light did this brilliantly by adding smaller On-The-Go packages, specifically designed to enhance the staple 8 oz. water bottle, again at a +100% price premium versus their traditional make a gallon at home package.    Lest you forget to buy these in the supermarket, they are brilliantly merchandised in convenience stores and gyms, right at your (now enhanced) water bottle point of purchase.

4.  Adjust product mix and package sizes –  Cereal and snack companies master the ability to change their product size mix and selectively reduce the amount of product in certain packages.     This can often mask direct comparisons versus the previous product line up and  pricing.    Further, you can strategically promote your more profitable package sizes more frequently, again, driving an effective price increase that is often invisible, and/or preferred by the consumer.

Lessons Learned:
1.   Think of pricing in broader terms than price per unit.     Price per ounce, price per pound, price per consumer usage occasion give you far more latitude for consumer-accepted price increases.
2.   Solve consumers’ most nagging problems in a product improvement or innovation and they’ll pay for that privilege.   Increasing convenience or reducing waste are among two widespread benefits that consumers will pay for.
3.   Build an expectation of gross margin enhancement into your innovation program and project selection criteria.

Old:                                                         New:

The logo change was intended to be an investment in the athletic program’s future, with ” a stronger, more iconic representation of our program and our sports teams – one that will set the direction for the next generation of Dayton Flyers. This is more than just a logo; it’s an affirmation of our commitment to meet the challenges of today’s intercollegiate athletics environment.”      Sure, these changes are always controversial, but the omission of the classic “U,” as well as the inadvertent misread as “V.D.” is almost unthinkable.   And if that isn’t enough, there are also criticisms of getting insufficient market feedback, using an out-of-state branding firm, and alleged nepotism…. aka a nightmare.

In fairness, the logo was announced concurrent with the new basketball uniforms, which are fabulous.

Bombarded by negative response, as of today, the university’s social media response is:  “The passion of the Flyer Faithful is truly overwhelming. We have heard and read all of your comments and emails about the new athletics logo. Today, athletics is continuing to answer phone calls and emails, and hopes to respond as quickly as possible. “

Such over-aggressive, ill-conceived re-branding efforts can happen even to ‘the best of them,’ like Gap, Pepsi, Tropicana, and JC Penney.   But re-branding gaffes are almost always avoidable, if you follow these basic steps:
1.    Clarify the re-branding objectives and clearly describe them to your creative team and audience.      This spells out the goals, boundaries, and evaluation criteria for both your agency and your constituents.    For example ‘evolve the current U.D. athletic logo to be more contemporary. dynamic, and national-caliber’ provides direction.
2.    Understand and leverage the brand’s equities.    In this case, U.D., red/white/blue, and Flyers are among the brand’s historical equities.    These do not have to stay constant, but they need to be understood, adapted, and integrated appropriately, to avoid discarding ‘what’s working.’
3.    Get external feedback from your audience(s) before, during, and after the re-branding process.   The upfront work helps you understand the brand’s perception and equities (as noted above) as well as potentially build project support.    The ‘during’ work includes getting external feedback on the design options and identify any potential issues (in this case…V.D.!), and after, again soliciting audience feedback to the final design.
4.     Broadly communicate why the redesign was done and what benefits it provides.      The bigger the change, the more upfront communication is necessary – – as ‘change’ is always controversial.   But an effective redesign should be relatively self-explanatory.   (In this case, new logo advocates are still explaining how the new design incorporates the “U,” to no avail).
5.     Listen, yet filter feedback.    Listen objectively to the reaction from your audience(s).   You do have to filter out a certain level of resistance that can be expected with any change.   However, particularly the project owners have to be open to criticism and the possibility of a necessary revision.     Positive market response is critical, and there may be some great refinement opportunities from criticism.   (In this case “where’s the U?” and the “V” issue are extremely valid).

Examples of better collegiate re-branding include:
                                 

Candidly – they have a dog.    They would be wise to acknowledge, and applaud, the passionate dissension and make the necessary changes.   Then ask for feedback on options and present a new athletic logo – specifically in response to their loyal alumni, students, and fans.

by Tammy Katz

“Natural Products Expo West 2014 was an incredible show of natural, organic, and healthy food and beverage manufacturing, ingredients, and in many ways – the future of the food industry, given that healthier food has moved from trend to societal shift. The natural, organic and healthy products food industry is growing nearly three times higher than the food industry average, per Penton. I had the privilege of attending with 67,000 of my closest friends and 2,600 exhibitors. Expo West was an enlightening window to emerging food industry trends.

 1. Gluten-free continues to explode, up 20% versus last year, driven by perceived health benefits and better diagnosing of celiac disease. New brands, new food categories, and improved organoleptics were virtually everywhere. Per NPD, 30% of consumers want to reduce the amount of gluten they are eating, and gluten-free foods’ household penetration has leaped to 11%, more than doubling since 2010, per Nielsen. The tidal wave is projected to continue as the foodservice sector (restaurants and institutions) catches up with consumer demand at retail. Even Pillsbury has jumped into the space with gluten-free dough (et tu, Doughboy?) as has Columbus’ Donato’s with its gluten-free Donato’s and Sonoma Flatbreads brands. Gluten-free is projected to grow by 22% annually through 2016, per Mintel.

2.  Non-GMO (genetically modified organisms) verified food offerings have tripled since last year, in response to growing consumer demand, as well as organic manufacturers’  efforts. Regardless of where you stand on the contentious GMO discussion, consumers are responding. 93% of Americans said that foods that have been genetically modified or engineered should be identified, per a recent New York Times poll and non-GMO has recently surpassed ‘organic’ among consumers’ desired food claims. Whole Foods’ requirement of GMO labeling on all products in U.S. and Canada by 2018, will also drive non-GMO consumer awareness. Promising, except only 11% of consumers say they are willing to pay more.

Non-GMO food and beverages are projected to grow at a 13% compound annual growth rate for the next few years and account for 30% of retail sales by 2017, even without mandatory labeling, per Packaged Facts. General Mills, Smart Balance, Ben and Jerry’s, Chipotle, and Kashi have all taken proactive stances on GMOs by either eliminating them or pushing for increased labeling. To help manufacturers and consumers with product and ingredient sourcing, the verification body, the Non-GMO Project has established a centralized database. Buckeye brag: Marzetti launched Mamma Bella GMO free garlic breads, led by Fisher alum Adam Koenigsberg.

3. Proteins, Popcorn, Chia and Kale were prevalent in multiple categories. New protein-rich or enhanced products targeted to consumers who are reducing or eliminating red (or all) meat from their diets included yogurts (whey and soy proteins), snack bars (almond and pea protein isolate), and pancakes (oats, quinoa, and whey). Popcorn, with its better-for-you consumer perception, was featured by over 25 companies in every mainstream and exotic flavor. Most intriguing were Popcorn Indiana’s fit brand, positioned as a low-calorie option, and chip’ins, a popcorn-based extruded snack chip. Chia continues to be a hot omega-3 rich and filling superfood in many bars, yogurts, drinks, as well as seeds alone. And kale, which has grown four-fold since 2008, is the hot supergreen in raw snacks, chips, sauces, dressings, and disturbingly: macaroons.

4. More Funding, Investments and Acquisitions – The health and wellness segment’s rapid growth is attracting interest and investment from multiple sources. Major food companies are penetrating the segment via acquisition and joint ventures, such as Coca-Cola (Zico and Honest Tea). Heinz (Hain Celestial), and Campbell Soup (Plum Organics), and the sector has become a darling of private equity leaders such as Sherbrooke Capital (Angie’s Popcorn) and Alliance Consumer Growth (EVOL brand). There is also an explosion of funding available for smaller companies through food incubators and crowd-funding platforms, with over 25 new food and agriculture funding sources launched last year. This foretells both continued growth among increasingly well-capitalized companies, as well as improved product quality and rate of innovation.

5.  Local Participation –  Ohio was well represented by many of our friends at 19 companies. In addition to the aforementioned Marzetti and Donato’s, Almondina, Avitae, Bunker Hill Cheese (Heini’s), Eurochoc Americas Corp., Fit Organic, Fremont Authentic Brands, Garden of Flavor, Gaslamp Popcorn (Rudolph Foods), Graeter’s, Herbal Science, Jeni’s Splendid Ice Creams, 1-2-3 Gluten Free, R.A.W. Real and Wonderful, Swurves (Mike-Sells), Trophy Nut, Unistraw, and Wyandot Snacks exhibited, all of whom we expect are gearing up for the surge in new business… and hiring talented Buckeyes.”

Meet the Expert

Tammy Katz is an Adjunct Professor of Brand Management at the Fisher College of Business, The Ohio State University, and Chief Executive Officer of Katz Marketing Solutions, a marketing and brand management consulting firm. She is particularly interested in brand management, marketing strategy, commercialization, corporate outreach, and consumer-driven innovation.

by Tammy Katz

Kudos to several highly effective campaigns that clearly communicated a persuasive sales message (oh – – remember that?) such as Radio Shack (visit our contemporary stores), T-Mobile (no contract carrier), and Volkswagen (durability).     These are the companies most likely to reap the best returns on their +$4 million per ad Super Bowl investments.

While the lovable animals remain timeless, increasingly grating are the formulaic ‘sex sells’ ads, sorely lacking in reasons to prefer their brands.    Sure, they ‘made ya look,” but we doubt H&M, Oikos, or SodaStream need to run out and up their production forecasts.

Lastly, we applaud two brands’ continued respect for diversity:  Cheerios and Coca-Cola.      While Coke’s song choice and multilingual approach pushed the edge with some consumers (a fairly low 57% positive sentiment score), it placed an enviable #5 on BrandBowl’s social media ranking with +33,000 tweets.

As for the worst:  the cringe worthy attempts to be funny, contemporary and cool.    Better luck next year Wonderful Pistachios, GoDaddy, and Beats Music.

Here are the winners (and worst) from three marketing mavens – USAToday’s AdMeter (panel popularity), Pointslocal and Boston.com’s Brand Bowl (twitter volume and sentiment), and Katz Marketing Solutions (effectiveness).

USA Today – AdMeter                              

Best:
1.   Budweiser (“Puppy Love”)

2.  Doritos (“Cowboy Kid”)
3.  Budweiser (“Hero’s Welcome”)
4.  Doritos (“Time Machine”)
5.  Radio Shack (“Phone Call”)

Worst:  BudLight “Cool Twist.”   Good reminder that great advertising requires risk taking.

Pointslocal and Boston.com’s BrandBowl

1.  Budweiser
2.  Doritos
3.  Cheerios
4.  Pepsi
5.  Coke

Worst:  Staples

Katz Marketing Solutions

1.   Budweiser (“Puppy Love”)
2.   Doritos (“Cowboy Kid”)
3.   Doritos (“Time Machine”)
4.   Cheerios (“Gracie”)
5.   Radio Shack (“Phone Call”)

Worst:  GoDaddy

by Tammy Katz