Question

Topic: Strategy

Owner Support For Marketing

Posted by Anonymous on 500 Points
I've run out of ideas. I am responsible for marketing in our small company that sells through national distributors. I can't find a way for the owner to value marketing efforts, so we struggle for budget and staff and retard the growth of the business. He sees only the expense, not the contribution.

Because we sell through non-exclusive national distributors, we can't track sales back to specific promotional campaigns. So I have done trend analysis that shows that when we promote certain products, we sell more. ("But there must be other factors," he says.) I have run trade show promotions that quadruple traffic with no loss of lead quality. ("Our in-house reps don't follow up, so what's the point?") I've developed a large (30,000+) database of customers and prospects, and he's not convinced that we need to know who our customers are because we sell through distributors (all of whom carry and promote competing and private label lines). I've developed an advertising icon that is building our brand. ("We don't sell icons.") Does anyone have the magic words (or deeds) to convince this fellow that that we could be so much more?
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RESPONSES

  • Posted by michael on Member
    Peter,
    Are "magic" and "kind" synonymous?

    That's a huge database to develop on your own. I would say that you work your database like it's your own business and let him ask why you're so successful. Pick one or two sales people who are willing to work hard, if you can't, and direct ALL your leads to them. Then when the others are complaining you're in a position to say "you mean all this database and marketing really works? That's odd!"

    A good marketing program will allow tracking, even with distributors. Might be a good idea to take a look at that again.

    I've been in that exact situation before. Not fun. Difference was that I was able to sell as well instead of depending on others.

    Michael

  • Posted on Accepted
    No. There is no one so blind as the person who doesn't want to see.

    I've been involved with clients who are in the same situation you're in. It's frustrating, no doubt. But there are businesspeople who have decided in their own minds that marketing is a waste of money, and there just isn't any way to really get them to change their opinion. Even if they soften for a few weeks/months, they eventually go back to their comfort zone and reject the value of marketing.

    The initial success we had with one large client (where there was one "believer" in management) led to a total change in the corporate culture and a genuine turn-around for the entire company (a global company in the Fortune top 25). Other than that, I can't think of a single case where an "anti-marketing" executive changed his/her position. And I can think of dozens that remain convinced to this day that marketing is flim-flam stuff that doesn't really build the bottom line.

    I hate to be so discouraging, but trying to change the mind of an individual who feels like he's been successful without much value for marketing is all but impossible. You'd be better served either giving him what he wants or finding another employer who understands the value of what you do.

    There aren't enough quantitiative analyses in the world to change the mind of someone who already knows what works and what doesn't. Save your energy for something more meaningful.
  • Posted by wnelson on Accepted
    Peter,

    The owner sees no value in marketing, yet he keeps you on the payroll. I have some questions for you:
    • What does he expect from you? What are measurements he holds you accountable for?

    • What are your measurements?

    • What are the owners expectations for growth? Does he have any?

    • Who Does he hold accountable and responsible for growth?

    • Do you have "internal customers" (sales? reps? Distributors?) who rely on you for your efforts? What do they expect from you?

    • Are there other reasons why he doesn't seem to trust you and your judgments? Like you don't have the same last name as he does or you are a "college boy" and he pulled the company together solely on sweat and his common sense?

    I would recommend you take a look at these questions. Concentrate on meeting his expectations and build the trust. Toot your own horn a little. This may help. It may come down to the "ultimately" that Mr. Goodman alluded to: Could be that this guy will never be won over on marketing and you are always going to be under-appreciated. If you can live with that, great. If not, at some time maybe it's time to seek employment where you can be appreciated.

    I hope this helps.

    Wayde
  • Posted by steven.alker on Accepted
    Peter

    Been there, done that, won the argument, got the sack!

    Realistically, it depends on what the guy’s value is to you, what your value is to him and how much the entire thing is doing your head in.

    Mgoodman’s hit the real show stopper of a nail right on the head. Owner managers and even big-chiefs of public companies don’t often experience conversions on the road to Damascus. Not that most of them would know where Damascus is or what the relevance of the comparison was.

    I once had a client whom I commiserated with, that his American boss didn’t really appreciate the purpose of consistency in his marketing plans, as he forced him to change them every 5 months. He told me that as far as he was concerned that as long as the boss continued to pay him £500,000 a year to run the UK operation, he could change his views on marketing every 5 days if he wanted to.

    So what does this guy and his company mean to you? If it’s just a job and a well paid one, is the mental anguish worth the reward. If it’s not, is it a suitable staging post for your next position?

    And what are you worth to him – there are some very good ideas about benchmarking your value in the above postings and it’s tempting to try to test your value. Consider the hypothetical exercise of relieving him of the sole ownership of his database and letting you utilise it in return for some personal fee income for a few other companies. I think that I could predict his reaction or predict the resultant law suit if you did it clandestinely and got caught. Tends to clarify the idea of value though!

    Another approach is to offer to stop what you are doing and to do something else and see if he is happy with the idea. It’s best to have a plan B here in the form of another Job.

    If you have a clear idea of the value you bring to the table and he doesn’t, armed with an alternative role as a backstop, it’s probably best to get round the table for some face to face negotiations. You sound like a highly numerate marketing manager, so have a read about John F Nash and his Equilibrium Theory which has characterised so much high-level, complex and numerate negotiations over the last few years.

    You have an advantage in that you know where you want to go and you know the value of what you bring and the loss your withdrawal would precipitate. He only knows what he doesn’t want to acknowledge and has only a vague view (Because he does not agree with you) on the losses he might incur if you go away.

    You could be in a very strong position as plan B is another job. There could also be a surprise outcome. Strong leaders are sometimes, just sometimes, looking for someone who is strong, brave and persuasive enough to force them to change their minds. When such a situation occurs, the rewards can be high – but don’t count on it. So can the risks!

    Steve Alker
    Unimax Solutions



  • Posted by wnelson on Member
    Peter,

    No, you are not missing anything. You are in a position with your distributors where you have little leverage so a "push" strategy won't net you anything. Your distributors will react only to the pull of your customers.

    That said, if you have no value proposition or key selling points which give you an advantage over your competitors, then marketing "nothing new" to your end customers will net nothing also. Perhaps it's time to get back to the basics and first do the marketing research to identify your customer's needs, how well the competitors statisfy them, and based on your company's core competencies, what you can offer that satisfies the customers' needs better. As SageHill suggests, develop that Core Value Proposition or all the marketing dollars will just make the "going out of business" more prolonged and agonizing. You say the owner respects your opinions and listens. Perhaps if you do the marketing work to find the core value proposition - this probably won't take a huge marketing investment. Maybe you could propose to him the changes to your product/service offering to achieve more success. It would seem to me that this is the critical need for your business.

    I hope this helps.

    Wayde

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