Telomeres, computers, customization, and commoditization

You may never have heard of Telomeres, but they are the true Fountain of Youth. In your DNA, they are the section at the very end of every chromosone. They create an enzyme that allows cells to duplicate, to grow – they allow life itself. Over time, they wear down, and when they no longer exist, cells no longer exist and death occurs. Extend the length of telomeres and you can stay healthy and live for at least for 100-150 years.

But in life as in business, for every credit there is a balancing debit. Telomeres cause cells to grow and duplicate, so they not only create life, but they create cancer, and death. In fact, some scientists now believe that the reason telomeres eventually wear down is so that the body can avoid cancer. It is a natural defense. They wear down to allow us to live as long as we do.

If we can learn to control telomeres, we can end cancer and drastically extend our lives. You don’t believe me? Just Google it – go onto Wikipedia and check telomeres out for yourself.

Ah, Google and Wikipedia. These bring us to the subjects of computers and business. The computer age has brought electronic miracles to business – and devastation to human interaction and art. Because it has stored us as electronic blips, it has turned each of us and every business into a number. It has commoditized craftsmanship and originality. Today, most custom projects are put out to bid over the Internet. An easy way to find craftsmen is to look in unemployment lines. And they can’t get new jobs because they are skilled workers, and HR departments have used computers and the Internet to commoditize their personal abilities.

Did you know that when you met with your CPA prior to April 15, chances are good that he or she took all your tax information, copied it into his or her computer, and then e-mailed it to India before leaving for the night? Nighttime here is daytime in India. A cheap technician in India entered your data into the correct tax forms, and e-mailed all this back to your CPA, who then downloaded it, asked you to sign it, sent it to the IRS and billed you at his or her full rate. That’s personal service, circa 2011.

But modern communication is lightning fast, incredibly cheap, and impeccably accurate. What did we Americans do before computers? Well, we won several World Wars, amassed the greatest economy the world had ever known, built great cities with magnificent architecture, created masterpieces of art and literature, and developed a religious culture based on loving our fellow man. There were problems, of course – after all, we are simply animals with big brains, so we have animal instincts. As my father used to say, “People are the craziest monkeys.”

Even so, we didn’t do so badly.

Am I saying things were better before computers than they are now? No, I am not suggesting that we go back. I am suggesting that we move forward. But to move forward as a nation, we need to do several things.

First, each of us needs to realize that computers have allowed us to create more and better original ideas. We cannot continue taking these inventors and their ingenious custom work, and put no value in them. This is exactly what we do when we constantly seek a cheaper price. The epitome of this is electronic bidding. Companies post project specifications on line and accept bids from all approved vendors. Quality, imagination, craftsmanship, and an excellent final product – none are considered. The lowest bidder wins. Blip, blip, blip.

People do not need to interact with other people anymore. Families can sit in front of cable TV screens hour after hour, year after year, and be passively entertained. Kids don’t need to toss around a baseball when they can sit alone in dark rooms and play video games hour after hour, year after year. Blip, blip, blip.

So, how do we move forward? By controlling the telomeres in our lives and finding ways to make them work for us, not against us – namely, our computers, cable TVs, cell phones, I-Pads, I-Pods, Nooks, and more. We need to rediscover our humanity. We need to respect custom work and originality.

We need to love the brilliance of computer chips and reject commodity thinking. We need to buy our canned goods at Costco and our dress shirts at the local custom shop. We need to start with a room of experienced professional marketing people, creative thinkers all, and then use our computers to implement their ideas – not start with a computer and a techno-whiz who knows nothing about humanity, history, or the arts. We need to put value on a piece of fine wood furniture designed by an artist and hand-sculpted by a craftsman. In the end, will historians write that the American system unleashed human potential, made us the envy of the world, allowed us to overcome every challenger, and helped us live better, more productive, happier lives?

Or will they just say, “Blip, blip, blip.”

THE CHICKEN OR THE EGG?

In the past two months, I have personally encountered several situations that defy logic. Yet I feel that they are pretty common.

In one case, the president of a large kitchen cabinet manufacturer, and in another, the CFO of a local kitchen company, both refused to budget money for marketing UNTIL revenues (sales) justified the expenditures.

When you think about it, not only are the points of view of these executives understandable, but they defy all logic. One does not make sales to justify the cost of marketing his or her products. One markets these products to drive the traffic and leads that CREATE the sales. THE MARKETING COMES FIRST, THEN THE SALES.

Business does not increase by itself.

Dear Readers, this CFO point of view is held by virtually every financial manager in every industry. It will never go away. And it is the primary reason why top management should be – but rarely is – marketing driven. Marketing builds companies. Accounting cuts costs. But accounting cannot increase sales and revenues.

Right now, with the Great Recession just beginning to end, the financial managers are in charge. Let’s hope that better times leads to more marketing executives being promoted to the top. Only they will support the marketing effort against its many left brained critics.

NOTE: I HAVE BEEN SO OVERWHELMED BY SPAM THAT I WILL NOT BE POSTING OR ANSWERING ANY OF YOUR RESPONSES. IF YOU NEED TO CONTACT ME, PLEASE DO IT VIA MY WEB SITE, WWW.EDSUCHERMAN.COM.

THE MARKETING MACHINE

Ed Sucherman

edsucherman@gmail.com

www.edsucherman.com

The American Consumer Market in 2011

The official numbers came from Illinois Representative Jan Schakowski yesterday: the 10% richest Americans own 71% of the nation’s wealth; the lower 90% own 29%. The top 1% owns 34% of the nation’s wealth.

As an American, this is extremely disturbing. However, this is a marketing blog, so let’s not judge right or wrong, good or bad. Let’s talk about what this means when defining and marketing to US Consumers.

If you are selling to the top 1%, money is no object. Your market never had so much money or power. This market absolutely hates to be lumped in with everyone else. They demand to be treated differently, individually, personally. There is no luxury that money can buy that they cannot. Their goals are completely different than the rest: they are not focused on making more money. They already have enough money. They are interested in protecting their money and their assets from everyone else. They are especially concerned with taxes and lawsuits.

If you are selling to the top 10%, you are pretty close to the same values as the top 1%. The difference is that these are savvy consumers. They want and demand smart and unique products, again very personalized, but they also want good values. Top quality is a prerequisite. Given the quality and design, they want to make financially brilliant purchases. They are also preoccupied with protecting their wealth. They can’t buy anything they want, but they can buy almost anything they want.

The lower 90% can be broken out into the 70% working poor and the 20% desperate. (Notice, there is no middle class. If you think you can sell a solid product at a fair price to a hard working family of four — one boy and one girl –, the quintessential American family circa 1950, think again.)

The working poor are totally frustrated and trust no one. If you are selling to this great mass market, it’s time to re-establish your brand (emotional bonds), re-establish trust by proving your company and your products trustworthy, and move aggressively to gain market share. The companies and products that have owned this market since World War II have lost it. This huge market is up for grabs. Gain market share right now, in 2011, before the Chinese do, through Wal-Mart and nearly every other retail outlet.

Finally, the lower 20% or so are the desperate. Please don’t sell them any guns, because they have been abused and have become mentally unstable and violent. You can see it in every city and in foreclosed properties across suburban and rural America. Sell them severely discounted products. Quality means nothing to them – they are just trying not to starve or freeze to death overnight in their unheated apartments or cars.

So, why wouldn’t everyone just sell to the top 10%? Because of the competition. If you are not the best of the best, this market will quickly reject you.

THE MARKETING MACHINE

Ed Sucherman

www.edsucherman.com

How Marketing Can Help America in 2011

As I have stated over and over in blog after blog, I believe that America’s biggest problem is that the upper 5% owns some 90% of the nation’s wealth. The American way of life is based upon our great middle class. Today, the middle class is all but gone, a nostalgic figment of our imaginations. Bill Maher refers to America’s middle class as “the working poor.” Those who are still working are afraid for their jobs, earning less money that they did 10 years ago, and doing much more work — many of their co-workers have been laid off, so they have been forced to pick up the slack. In the name of efficiency, not humanity, the larger job has now become their regular job. They are happy to have it, given the economy.

That is not to say they don’t do good work. American employees do great work. They compare favorably against any workforce in the world. And it is not to say they don’t love their work – most do. It’s just that they have been abused by their employers who, of course, are trying to get the most for the least (as we all are).

Also, the basic real estate business model of making money using other people’s money does not work in this economy. You have to put in your own work and effort.

And luxury for the sake of luxury is almost offensive, with so many of our fellow Americans out of work and foreclosed upon.

So amid this economic morass, what can marketing do to help rebuild the American middle class and the American standard of living? What can you do?

1. Make sales and add jobs.

2. Whenever possible, buy and sell American.

3. Stay energy efficient and try to use as little oil/gas as possible. OPEC has tied the price of a barrel of oil directly to our stock market indexes, so as soon as our economy improves, they siphon off our earnings.

4. Champion education wherever you can. Make scholastic achievement an attitude and a way of life.

5. Innovate in your business and your life. Be one step ahead and be better.

6. Stay true to your focus. Market great American design, quality, and craftsmanship.

7. Make American dignity, character and values a big part of your marketing message. Help Americans feel proud of themselves again.

Advertising is repetition. If these simple items are repeated enough, by every one of us, they will begin to make a difference.

IMPORTANT: I HAVE BEEN OVERWHELMED WITH SPAM COMMENTS — 2001 THIS MORNING, AT THIS MOMENT. AS YOU CAN IMAGINE, I CANNOT ANSWER THESE AND STILL HAVE THE TIME TO CREATE NEW BLOG ENTRIES.  SO PLEASE FORGIVE ME, BUT I WILL NO LONGER BE POSTING YOUR COMMENTS OR ANSWERING THEM.  CONTACT ME THROUGH MY WEB SITE, AT WWW.EDSUCHERMAN.COM.

Ed Sucherman

THE MARKETING MACHINE

edsucherman@gmail.com

www.edsucherman.com

MARKETING IN 2011, PART III: THE MESSAGE

There can only be one marketing message in 2011: Value. The problem is, “value” is a term that has been overused, abused, and bastardized in the past few years. Today, it means nothing without an explanation. So, let me explain.

Many companies with expensive products have used the term “value” to disguise their high prices. They have twisted words and phrases to explain that they were selling a lot more than high priced items, and that their items were worth it.

After several years of a terribly damaging recession, Americans don’t trust anyone, any product, or any company. They are smart and extremely sensitive to marketing lies. Clever phrases don’t cut it anymore. If you try to explain away your high prices, the majority of American consumers will almost immediately shrug their shoulders and think, or even say out loud, “Bullshit.”

Part of value absolutely is price. To deny it is to insult the intelligence of the American consumer. And you don’t want to do that. Not now. Not ever.

What else does value mean? Does it mean quality? Of course. But today, quality is assumed. It is a prerequisite for doing business. If you don’t have a quality product, kiss your company goodbye. Without quality products, you are competing with China, India, and many countries in Southeast Asia. Since they pay their employees pennies when compared to the dollars we pay our people, you cannot compete. So, you had better offer quality products to the American public, or you had best not open your doors for business.

So, quality is assumed. Mention it, but don’t emphasize it.

Does value include good design and craftsmanship? Yes. Particularly among college educated Americans, purchasing well-designed, well-crafted products is extremely important. They may no longer have as much money, but they still have good taste.

Differentiation is also important to wealthy Americans. Originality counts even more. Today’s consumer wants to feel smarter than most everyone else. Finding something that no one else has, and that Americans feel is superior to any other product in the marketplace, makes the item almost irresistible…if you’ve got the money!

Does it include being “green,” or environmentally friendly? This is tricky. Everyone wants to support “green” products…but not if they need to pay extra for it. Not in this economy. I hate to say it, but “green” – again, a ridiculously overused and abused word – is assumed. Like “quality,” it’s nice to mention, but it will not seriously draw traffic in 2011. Unfortunate, but true.

A big part of value in 2011 means trust. All emotional bonds between customers and companies, between consumers and products, between citizens and government, between borrowers and lenders, between investors and investment houses, have been broken, in fact, pulverized, over the past few years. I’m not telling you anything you don’t already know. Your brand – the emotional bonds between you and your customers – needs to be completely rebuilt. A trusted company or product means a highly valued company or product.

Character is a huge part of American value in 2011. Since 9/11, our world has been shaken. We remain in a guerilla war against murders and barbarians. They ride in donkeys, we fly in supersonic jets. But we have not won yet. We have handed our wealth to oil-rich nations. We have rebuilt Bagdad, but not Detroit. We have watched our standard of living fade in the face of a real estate market in free-fall, impossibly greedy bankers, stockbrokers and con-artists, and the worst recession since the Great Depression (the 1930’s). As a nation, we have been shaken to our core. Suddenly, character in the face of adversity has become vital. Core values are a big part of product value.

So, the marketing message that will impact American consumers and drive traffic and sales in 2011 is value – a fragile, sensitive mix of price, quality, uniqueness, good design, great craftsmanship, trust, and character.

Ed Sucherman

The MARKETING MACHINE

edsucherman@gmail.com

ww.edsucherman.com

UNDERSTANDING MARKETING IN 2011, PART II: INSIDE A TORNADO

If you believe – really believe – in marketing, your time has come. If you are skeptical, your time is about to run out. There is a huge growth window of opportunity for your company in 2011,but it will close quickly if you do not act.

As mentioned in 2010 blogs, the market has radically changed. Brand loyalty is gone. Trust is gone. The bond between your company/products and your customers is gone. You need to rebuild your brand and reestablish your relationships with your customers in 2011. No matter who or what you are, you are starting from scratch. And it does not matter if your company is in a fragile financial state because of the Great Recession. Every company and every person is.

You need to market. You need to advertise, to expand your web site, create a blog, send news releases to traditional media, send mail and e-mail blasts, hold events and webinars, go meet your customers in person, face to face, motivate your sales force, and on and on.

This is awful news for stagnant companies. But it is great news for energetic companies. It makes me both exhausted and enthused just to think about it. So many forces are at work that it is like operating inside a tornado.

Pent up demand has come to a head. People who can spend are spending again.

In American today, 5% of the market owns over 90% of the nation’s wealth. If you sell luxury goods, that 5% is the only segment you care about, and they can easily afford your products. As for the other 90%, most have jobs. They are being careful. But slowly, they are starting to spend again. And that means business.

A large number of people are unemployed. Of course, they are only buying food and the barest of necessities. During 2011, some of them will be able to find work (at long last!) but most will not.

People who can retire already have done so, so there is a big senior market. The baby boom starts retiring this year, and that is a whole new tornado. 8,000 baby boomers each day in 2011 will retire. (The baby boom began in 1945 and lasted 17 years. If you have the right products, you now have a great, captive market. There are 70 million baby boomers!)

And every person in every market is ready for change. If you are an aggressive and intelligent marketer, perhaps they will change to your company or products. This is your chance, and it won’t happen again for a long, long time.

As an economy, we have stopped contracting and started expanding. But we have just begun, and we don’t have as much money or security as we used to have. So every change will be painfully slow for every business and consumer in the USA. Nonetheless, for the first time in years, the window of opportunity has cracked open. Market and make the most of it, and your business will live and thrive. Be timid and cut your marketing budget, and your company will stagnate and die.

It’s frightening. It’s thrilling. It’s capitalism at its best.

Ed Sucherman

THE MARKETING MACHINE

edsucherman@gmail.com

www.edsucherman.coim

UNDERSTANDING MARKETING IN 2011, PART I

Let’s begin the year with something you would not expect from this blog: a quick discussion of an accounting misnomer. In financial statements, Marketing is considered an expense (‘MARKETING EXPENSE”), not an investment. Thus, it is always placed under the debit side of the ledger and considered a liability. It is balanced, or represented, on the asset side by sales or sales revenues. (Many other investments, like capital equipment, are considered assets. That’s because they have tangible value. Apparently, marketing does not.)

This can certainly be explained by any accountant: money that goes out is a debit (an expense or liability), and money that comes in is a credit (an asset ). Every asset has costs involved with it, and these costs are debits. Simple accounting…

…except that most accountants do not understand it themselves. When push comes to shove and they need or want to reduce expenses, they simply cut out much or all of the company’s marketing expenses. They don’t understand (or want to understand) that doing this will immediately reduce their sales. And eventually, it will harm, if not end, the company. Revenue streams are the lifeblood of any business – reduce them, and you are asking for trouble.

So, no matter what your accountants advise you, take marketing seriously in 2011. Americans are just starting to come out of a terrible recession, times are tough for everyone, cash flow is fragile, and your accountant will be fighting every expenditure, every step of the way (especially those expenditures he or she does not believe in). But your customers and prospects – your market – has suffered and feels vulnerable, too. The marketplace has been radically changed. Basic values and beliefs have been challenged and proven wrong.

In short, whatever your business, you need to re-bond with your customers. You need to understand this, even if your accountant does not.

Ed Sucherman

THE MARKETING MACHINE

edsucherman@gmail.com

www.edsucherman.com

2011 Is a New Year

I have not added to my blog in months, as I was getting such poor responses. Now, somehow, my writing seems to have clicked in. Thank you for all your hundreds of kind comments– it was pretty depressing for a long while. By the way, I am a marketing “guru”, not a technology expert. For those of you who have questions about the technology in my site, I don’t know the answers. For those of you who want to quote my writing, go right ahead. I want you all to succeed and benefit from what I have learned in my life.

Back to reality: It is now almost 2011. The economy seems to be growing slowly. I am amazed at the resiliency of the American system, and the energy and brilliance of the American people. My grandparents came to this country from Kiev and Lithuania in 1904. They made their way across the Baltic Sea, past Denmark, Norway, Sweden, and Holland, across the North Sea and then the Atlantic Ocean. I believe at some point they stopped in England and finally headed across the Atlantic to New York and Ellis Island. In 1904, these were travels filled with danger at every step. And all for freedom.

America? I kiss the ground every day.

My Uncle Sid, my late mother’s last remaining brother, passed away last weekend. He was 93 and could remember cobblestone streets in Chicago and milk being delivered daily by horse-drawn wagons. Now, you can read this instantly, via cyberspace. Another friend’s daughter, who was 29, committed suicide last month. She had struggled with mental illness for years. Facing death shakes you to the core and makes you reshape your perspectives and priorities.

I will tell you this: things are going to get better in 2011. We must have faith in ourselves and our abilities. We must take our inventiveness, our intelligence, our work ethic, our business smarts, and our character to new levels to fight our way out of this recession. We’ve done it before. And we will do it again. In fact, we are already doing it.

Little by little, the foreclosures will stop, the unemployment will improve, and our standard of living will return. It’s basic marketing: as we seek better quality control than we now get from China, we will begin to manufacture in America again. As we seek better service than we get from India, we will learn to appreciate the service we get here. As we recognize that OPEC has tied its oil prices to our stock market – that every time we move forward, they siphon off our gains – we will begin to seriously seek energy independence. We will look outside at the terrible storms and admit that there really is such a thing as global warming, and then we will quickly move away from an oil-based economy. We will do this because we love our country and our neighbors.

We can do this as a people. We can do this together.

Ed Sucherman

THE MARKETING MACHINE

edsucherman@gmail.com

www.edsucherman.com

Print Media Myopia

In the past week or two, Reed Business Publications dropped their entire construction industry group of magazines and Newsweek, the company, is up for sale. I love to read my books on paper, not Kindles or I-Pads, so the print crisis is a disturbing trend for this old guy.

I may have an answer, or at least the seeds of an answer, to the print media (newspaper and magazine) crisis. I hope some publishers read this before more companies go out of business.

Point #1: I refer to a famous old Harvard Business School case study from the early 1980’s, named “Marketing Myopia.” The white paper studies Holywood in the 1970’s. At the time, the movie-making industry faced disastrous new trends: overwhelming competition from VCRs and cable TV, along with drastic reductions in audience preference changes — away from high priced movie theater attendance.

So, Hollywood stepped back from the trees, saw the forest, and redefined itself: it changed from the movie making business to the entertainment business. It was as simple as that – redefining itself.

Suddenly, VCRs and videotapes were not competitors, but new markets for the movies. Cable TV also represented new markets, and Hollywood opened its giant, empty studios to cable TV shows and series. Actors and studios were suddenly operating at full capacities. Huge movie screens turned into entertainment centers with 15-20 smaller screens, allowing more movies to be created and shown to different audiences with different interests, and movie attendance boomed again. Movies created gatherings of targeted consumers, to be reached by advertisers before the movies began. Many mega-movie theaters across the nation added restaurants (creating more entertainment experiences and even more attendance).

And Hollywood never looked back.

Back to the present and the future: I believe the print news media need to re-define themselves to both their readers and their advertisers. They are not in the newspaper or news magazine business. They are not even in the media business. They not only provide information and entertainment to the public, but they provide an audience to the advertiser. In other words…

They are in the marketing business.

Point # 2: Flip the Funnel. The brilliant new book by Joseph Jaffe does not just apply to e-marketing. He suggests to marketers that, instead of putting all their energy and money into the top of the traditional sales funnel (advertising, PR, sales forces, etc.), they flip the funnel and pour all their efforts into their clients. The clients become champions and spread the good word about the company via the Internet.

That is the sexy part. The non-sexy part is the hard work at the top of the funnel, making client after client into a missionary for your company. To do this, you need to constantly overwhelm them with service. In other words, you need to change your company’s entire strategy from product and sales to service.

To serve the needs of advertisers (revenue for the publications), newspapers and magazines need to stop focusing on ad page sales and start focusing on serving their client’s needs. And their clients do not need to buy ads. They need to build brands and bring in customers/business.

The media companies need to become marketing companies.

Point #3: Again, in order to create both readers and blood-loyal, missionary clients, the media companies need to become marketing companies…wheels with customers (not publications) at their hubs and newspapers/magazines/web sites/social networking/cable TV stations/PR firms/customer service training/strategic marketing firms, etc. as their spokes. Instead of publishers sending out media reps, send out marketing executives who can coordinate all aspects of the customer’s needs. Give the customer custom-made marketing strategies that are specific to him/her, and sell the strategic implementation as a single buy, a marketing plan. (This works even better when dealing with existing marketing firms — you can help them solve their clients needs, not just sell them ads.)

Suddenly, customer product sales drive your company, not newspaper or magazine sales.

Publishers – redefine your publication.  Go for it!

IMPORTANT: I HAVE BEEN OVERWHELMED WITH SPAM COMMENTS — 2000 THIS MORNING, AS OF THIS MOMENT.  I CANNOT ANSWER ALL THESE, SO PLEASE FORGIVE ME, BUT I WILL NOT BE ANSWERING YOUR COMMENTS ANYMORE.  CONTACT ME THROUGH MY WEB SITE AT WWW.EDSUCHERMAN.COM.

THE MARKETING MACHINE

Ed Sucherman

edsucherman@gmail.com

www.edsucherman.com

COMPETITIVE ADVANTAGE: FLIP THE TORNADO.

I have been mulling over the book, Flip the Funnel, by Joseph Jaffe, since January. I was thrilled and disappointed by the book. The concept thrilled me – flipping the sales funnel and spending your time and money on your existing customers, making them company missionaries, and then letting these company missionaries spread the good word about your company through heart-felt testimonials on the Internet.

But I just expressed that in one sentence. The book is several hundred pages long, talking about service, service, service, not just the marketing concept that sent chills up my spine.

And then it struck me: Jaffe is right.

Flipping the funnel is not just a marketing strategy. It is a business strategy, a company-wide philosophy, a mission.

Once your company missionaries champion your company to their Facebook, Linkedin, and Twitter friends…then what? You need more company missionaries to do it again. And again. Over and over. So, you need to keep creating new company champions. And that means, serving them.

If you want to flip a tornado, not a funnel, you need to keep building company champions and missionaries. Your customers need to be absolutely thrilled with your people, your products, your service, and your follow-up. The focus, the big effort, is at the top of the new funnel, not the bottom.

Think for a moment, just how revolutionary that is. While all trust and brand loyalty in America is gone, broken, demolished by Wall Street and politicians and Chinese products and company layoffs and unemployment and foreclosures…you can be building an ever stronger base of company missionaries by accomplishing the true function of business – truly satisfying customers and actually exceeding their expectations. Not just talking about it, but doing it.

How’s that for a competitive advantage?

IMPORTANT: I HAVE BEEN OVERWHELMED WITH SPAM COMMENTS — 1998 THIS MORNING, AS OF THIS MOMENT.  I CANNOT ANSWER ALL THESE EACH DAY AND STILL CREATE NEW BLOG ENTRIES.  SO PLEASE FORGIVE ME, BUT I WILL NOT BE ANSWERING COMMENTS ANYMORE.  CONTACT ME THROUGH MY WEB SITE AT WWW.EDSUCHERMAN.COM.

Ed Sucherman

THE MARKETING MACHINE

www.edsucherman.com

edsucherman@gmail.com