Question

Topic: Strategy

Switching From Sales-oriented Strats To Marketing

Posted by Anonymous on 8/21/2008 at 10:11 PM ET 125 Points
Hi, I'm recently recruited into a new company to replace the current Marketing manager. The company does some manufacturing and distribution of health products and foods. However, like most smaller SMEs, this company is very sales-oriented.

Studying the sales figures and PNL, I've found out that our flagship product has been on a decline, and other product lines are not performing well enough to sustain profitability. Furthermore, after I analysed the marketing activities of the company, I realised that altho they are employing all the marketing tools with some effort at integrating them, but I felt that they're not doing marketing. As in, they are plainly using the tools as an effort to create awareness and gain market share (mainly A&P) but there is no overall marketing strategy and direction.

The GM (was previously a regional marketing manager for a MNC) is appointed a year ago and he has so much work on his hands to really look into such matters. Tho he's capable, I feel that everyone in the company is fire-fighting. Meaning, they prioritise and jump from a problem to another but never really discover or resolve the root of such issues.

I wish to help the company, and my goal is changing its focus and overall direction. On top of that, I'd like to convince them to launch a campaign to educate the public on benefits of healthier foods, change the perception of consumers (that health foods aren't tasty) and ultimately, associate our product brand to a certain product type (e.g. brown rice). May I know your opinion and advice on achieving these goals?
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RESPONSES

  • Posted by wnelson on 8/21/2008 at 11:03 PM Accepted
    Samuel,

    I would advise you to carefully look at the set of fires the GM and staff are fighting right now and prioritize your approach to address those issues in concert with the GM and staff. They may be addressing very tactical short term problems - sales type stuff - and ignoring the long term issues - the marketing stuff. But think of it this way: If you were a doctor and were working on physical fitness of the patient - a great long term goal that ensures a long, healthy life - while the patient's carotid artery is punctured, chances are it's the wrong strategy. The patient will die before he's fit. Also, if everyone is applying pressure to the carotid artery to stop the bleeding while you are working on the patient's endurance, chances are the others will see you as out of touch with reality. All of this despite you are working on valuable issues and ultimately the right issues.

    So instead, what you can do is look at the problems on which they are working and identify the actions to take to make sure that the issues are mitigated short term (the staff's activities), but also are permanently eliminated. Develop the marketing actions necessary so the fires don't re-emerge.

    With this approach, you are implementing the missing marketing activities that you see needed but in an order that is in coordination with the rest of the company's main concerns. Ultimately, you end up the same place, but you are "fitting in" better. Everyone wins.

    As far as "educating the public" goes - if this fits into the scheme outlined above, great. I would say that many companies and the government are spending money on educating the public on the value of healthy food. I doubt you will find many people today who can't recite these. You may consider letting everyone else "educate the public" and all you do is differentiate your products from the rest of the healthy products out there. What is it that you guys do better than anyone else in the crowded and growing more crowded healthy food market? Educating the market, if you really have to do this, is a long, long process. Companies have to have deep pockets to take on this strategy. Unless you are in a very unique area of the market - like healthy saturated fat products or cane sugar and flour products that melt off pounds and build muscles - things that are contradictory to very common knowledge - then I'd say you are in an industry that is approaching a commodity and the value of education is getting into the diminishing returns phase of investment. And certainly, this strategy would be very out of phase with what I believe your company is in, given what you have said. Practice your craft, certainly. But, stay in sync with the company and don't get too far out in front.

    I hope this helps.

    Wayde
  • Posted by Susan Oakes on 8/21/2008 at 11:33 PM Member
    As Wayde mentioned you need to work with the team solving the short term issues. At the same time you also need to work on the longer term. I would suggest you conduct market research amongst your current and lapsed customers, including those of your competitors to actually find out where you stand, what differentiates you from your competitors, whether your current positioning is correct etc. This will highlight what is important to them which may not be the issues you believe eg. changing their perception. It will also help you to understand what are the reasons why the key product is in decline.

    From this research you will actually have real insights which you can develop a marketing plan and campaign for both short and long term gain.

    It is also important if you do the research that you involve all the key stakeholders so they work with you to improving the sales and profitability.
  • Posted on 8/22/2008 at 1:58 AM Member
    Completely agree with Wayde and Susan. Suggest your marketing programs complement the sales programs, at least at first, so you gain the credibility of the team. You do not have to do consumer marketing to do marketing, and as Wayde pointed out, educating the public, unless you are operating in a very small niche with very clear benefits, will not work.
  • Posted by CarolBlaha on 8/22/2008 at 9:57 AM Member
    Aligning sales and marketing so they are saying the same consistant message is a good tactic. But you are going to continue fighting fires-- as it appears you need sales now.

    I do not believe that consumers believe that healthy food tastes bad. Even Walmart is promoting organics. There is a perception that healthy foods are expensive. I'm also a rep who has been promoting "green" healthy buildings. The first words out of their mouth is "it costs too much". You have the same issues-- you have the dollar menu guys out there. And despite the popularity of the Food Network-- the average consumer has no idea how to cook healthy. I overheard a woman translate a sign of no trans fat as "fat free". I always see people gorging at Whole Foods hot bars and commenting "oh well its healthy". Think education. Be a resource. Give them a reason to come in rather than price.
  • Posted on 8/22/2008 at 11:02 AM Member
    I agree with Susan's idea to conduct some market research. In addition to the benefits which she has identified, I think this research could also help you move away from a sales-oriented strategy to one that is more marketing-oriented.

    This research should help you to identify your key positioning strategy which should then get integrated into all of the marketing communications pieces and all customer communications. The sales strategy can then be in sync with the overall positioning statement.
  • Posted by J Geibel on 8/22/2008 at 9:40 PM Member
    Let me ask the obvious question - do you think you made a mistake in joining this company?

    It sounds like your background is from a large company that has lots of time to analyze things - but in a small company - they haven't got the luxury of the overhead to do that. If they don't get the revenue - they die. You may view this as fire-fighting,, but often that's just the way it is done.

    You may also be experiencing the shift from a corporate culture to an entrepreneurial, interrupt-driven culture when planning isn't given much thought. Not saying they wouldn't benefit from it - but I've dealt with a lot of them and they just don't do things that way. Action has a priority over planning for that action.

    Did you talk to the prior marketing manager and find out why they left? May be an eye-opener.

    One of the toughest career decisions to make is to determine if the issues you are facing are structural, or something that can be changed. Many times they are structural - and if that's the case - it may be a good idea to move on before you get too frustrated - especially if most of the decisions to change things are made above your pay grade.

    This may not be what you want to hear - but I've known a few people over the years who were in that position - and if the decision is to move on - the sooner, the better.
  • Posted on 8/24/2008 at 8:40 AM Author
    Thank you. I've thought about it and most of what was stated is true...I need to fit into the company before they can accept my suggestions. It may be a long process but well worth the effort!
  • Posted by nimesh_nr on 8/31/2008 at 3:13 AM Member
    Hi there!
    Everyone has touched upon the issue very well. Just one point to add. I really like the fresh approach you are trying to bring in to the company. Do not feel disheartened by initial setbacks that you are very likely to face.
    1) take care of the current fire fighting (work along with them, tell them you are there with them on this)
    2) put in extra hours parallel-y to develop a step by step marketing strategy (as a PowerPoint PSTN may be)
    3) In the strategic presentation please address all the current small issues and how having a long term strategy will foolproof their future occurrence (thereby saving firefighting again)
    4) as someone suggested please include the market research proposal as well to understand the market dynamics in detail
    5) you will have to put in a special request with GM / and others for a ppt on a sunday or saturday in a very informal setting
    6) brainstorm (you will learn a lot of them because they know the product very well)

    PS - even in your positioning approach it is important that you avoid being hung up on the rational platform of healthiness (this will not bring in any differentiation as you would know) but extent it to the benefit of "healthy food for the family while making ; same taste but healthier, leading to happy, healthy and fun-filled family" for instance.

    Hope this made sense.

    Nimesh
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