www.viewpoint.net.nz - NZ Transport, Aviation, Logistics & Supply Chain Blog

Does advertising really work?

'Old marketing is dead
10 years ago we were able to advertise a position in a paper and know that people looking for a job would see it. Nowadays you need to advertise in many papers and on multiple websites and you are still not guaranteed a good response.

It used to be that you could build a product and market it really well and people would naturally use your service. Nowadays we are all bombarded with advertising and media and information. We as consumers often ignore these messages. When was the last time you made that call after hearing an ad? It is almost impossible to make an impression and a thousand fold more difficult to actually get them to pick-up the phone.

New marketing is everything we do
Brand is no longer about just having a great logo and good advertising. Brand is now driven by everything the company does. Every time we answer the phone or deliver a sales proposal or email a client or they use online, we build our brand. The aim of new marketing is to get talked about, in a positive way of course, because of how ingenious we are!

To have a strong brand you now have to have a service that is so ingenious, so smart and edgy and stunning that it gets talked about.  Think about Google. How many of you started using Google because you saw their ad. None, they didn't advertise. You heard about it, tried it, liked it, kept using it and if you're an early adopter like me, probably told others about it.' - quote from my eBook called 'Being INGENIOUS @ agoge'

All this means that the old way of attracting candidates or getting customers works less and less. It will get harder and harder get peoples attention. Your only chance is to focus on providing a stunning service or being an incredible employer, so that you get talked about.

Finally, fyi, we measure most of our advertsing, we change ads and try new and creative things. When you measure advertising, the results generally dont make good reading, it forces you to think outside the square. You should try it!

Wasting your advertising dollars

A couple of years ago, Amazon.com announced that they were going to stop their advertising all  together. No more magazine adverts or TV. Instead they decided to invest all of their advertising dollars into providing free shipping of books.

From what I have read the marketing industry thought it was a foolish decision and predicted that it would spell the downfall of Amazon. How could they possibly think that investing money earmarked for advertising into making the customer experience more positive would increase sales.

The results: 1 year after the decision total sales were up 37% and international sales were up 81%.

The implication of applying the same thinking to our industry is huge. What areas do we spend money on, that if deployed into making our customers experience more positive, would actually increase sales.

Is it technology or marketing or advertising or capital equipment or research & development. How could we redeploy this money, improve the customer experience and increase our business along the way.

Delegation meets the Monkey

The One Minute Manager meets the Monkey is, as the title suggests, another in the One Minute Manager series. Like the rest of the books, it is written in a narrative style with lessons along the way. This makes it easy to read but because the people are fictional you often wonder if a real person can implement everything taught the in book.

The storyline, for want of a better description, is about a manager who is over worked, doing long hours, stressed and as a result is a poor leader. He discovers that the reason for this is actually monkeys. Monkeys are tasks or problems that people below him should be handling and resolving, except he continues to say "I will sort that out for you".

The man in the story, learns to leave the problems and tasks on his people's back and helps them with direction. Effectively it is a story of delegation and coaching, so here are the 4 lessons of the monkey:

Rule 1: Describe the Monkey: the dialogue must not end until the appropriate "next moves" have been identifies and specified.

Rule 2: Assign the Monkey: All monkeys shall be owned and handled at the lowest organizational level consistent with their welfare.

Rule 3: Insure the Monkey: Every monkey leaving your presence on the back of one of your people must be covered by one of two insurance policies:

1. Recommend, the Act
2. Act, then Advise

Rule 4: Check on the Monkey: Proper follow-up means healthier monkeys. Every monkeys should have a checkup appointment.

In summary, it was an easy read with some timely reminders about getting your people to solve their own problems.

Book Summary

The One Minutes Manager meets the Monkey
Ken Blanchard

Genres          Management, Coaching, Delegation
Pages           130
Readability     2 (1 = Easy, 5 = Hard)
Enjoyment     4 (1 = Never Read, 5 = Remarkable)

Bracewell - MD of Freightways talks Technology

A few weeks ago I posted on Technology in the Courier industry. It is fair to say, from the verbal feedback I received, that it was one of the more provocative posts I have written.

Shortly after wards I saw that the NZ Herald was interviewing Dean Bracewell, MD of Freightways, so I thought I would post a question. Below is my question and his response:

A question from a Herald reader. They are interested to know how technology fits into the future of Freightways. They say that Freightways seems to have lagged behind their largest competitor - CourierPost - in this area, but they have maintained market share and profitability. Do you see any major disadvantages in not having had the technology?

Not at all, but that question's probably got three or four parts to it.

Just stepping through them, technology is a part obviously of running a transport business such as Freightways and it always has been a key part of what we're about.

We've actually three quarters of the way through a $10 million upgrade to our IT system, so there's a fair bit of money and investment attached with IT

It's played a pivotal role in the business for 20 plus years and the information systems that we have are geared around delivering scalability because our business has grown very strongly so you've got to have information systems that can cope with that significant growth.

It's a very robust system but it has also got to be flexible to meet the varying customer needs. So we've got a very powerful, core information management system.

The part about lagging a competitor and still maintaining market share, well I think we've actually done more than that. We've grown our market share and we've grown our profitability over a number of years, so it's not just about maintaining it.

I think we've done this by keeping in touch with our customer needs and developing our services to suit those needs rather than getting caught up in a side-game that technology can distract from what you're really here to do.

We think it's most important not to lag customer demand rather than try and keep up with a competitor whose strategies we might disagree with.

Are we disadvantaged by not having some of the technology? Well, we made a decision to roll out in-van data capture technology this year and that's as a result of our customer demand but a time when we've assessed the network that transmits that data as being ready for us and the scanners that will go into our courier vans as being ready for us.

So, a few things have needed to come together but we believe the time is right.

And whilst we've been lining up to make that decision about the technology in the vans we've been focussing very heavily on ensuring we deliver our core service, which is getting packages to the right place at the right time.

What we believe we now have is a very compelling customer offer - premium service, competitive price and the latest technology to over-lay it all.

You talked about the scanners - how are the trials for those going?

They're going fine. We're rolling them out into the Auckland marketplace which is the most rigorous, high volume market to test the scanners and we'll get any glitches that are involved with new technology out of the way in this market prior to rolling them out around the rest of the country.

What developments - technology or otherwise - can we expect to see from Freightways in 2007?

I think you're going to see more of the same and whilst that might sound a bit ho hum, it's kind of what our customers like.

They want consistency, they want reliability, they want innovation when they're ready to innovate and when there is demand for it.

So what you're going to see from us is really more of the same and hopefully that will continue to deliver the sort of performance to all our stakeholders - our people, our employees, our contractors, our customers and our shareholders.

The article serves as a timely reminder, well to me at least, that technology matters very little if you are not delivering your core service. In NZC's case that is providing consistency and reliability,

You can read the full Herald article [here].

74 of the toughest questions in business today

Jack Welch was chairman and CEO of the General Electric Company from 1981 to 2001.  He generally regarded as one of the top CEO's of his time and was recongised for his candid straight up view of doing business. This book follows on from his previous book "Winning" and answers just 74 of the questions that he has been asked as he has toured.

Many of the chapters serve as timely reminders, other chapters blew my mind with the scale of multinational business and a few chapters I just out right disagreed with.

Below is an excerpt taken from the last chapter:

Winning, actually, doesn't have anything to do with markets. Or we should say, it doesn't have to have anything to do with them. By our definition, winning is a personal journey. It's about you as an individual setting a goal and achieving it. That goal could be creating and supporting a happy, healthy family. It could be founding or funding a homeless shelter. It could be teaching children to read; it could be sailing around the world.

And then again, it could be building thriving company that succeeds in the global marketplace.

Winning is about reaching the destination you chose. It is not necessarily about profit, though it can be. But winning is, at its most fundamental, about making something of your life. It is about progress and meaning. It is about achievement.

If you enjoyed reading "Winning", then this book is a great follow on, and is worth reading.

Book Summary

Winning: The Answers: Confronting 74 of the Toughest Questions in Business Today
Jack and Suzy Welch

Genres         Business, Leadership, Winning
Pages           272
Readability   3 (1 = Easy, 5 = Hard)
Enjoyment    4 (1 = Never Read, 5 = Remarkable)

Winning - Leadership Development Booklet

Around 18 months ago I brought the majority of the staff in our company the book "Winning" by Jack Welch. The purpose for buying the book was to use it as a leadership development tool and to stretch their thinking, which in turn helps grow us as a business.

To assist in the learning I developed a booklet that people used to stay on track. People would read 2 -3 chapters a fortnight. We would then have a conference call with groups of 5 -7 people, discuss our obersations and learnings from the chapters.

Agoge is a small business with limited funds for training and leadership development and has staff based all over the country. I found that this process worked really well and we learned a lot as a business as a result. A key lesson for us was Candor, which has since become one of our values.

Below is a link to the PDF file. I hope you find it useful. If you would like a word copy please email Andrew Nicol (links in side bar)

Download winning_reading_plan.pdf