Revisiting the Business/Marketing Engineering "Thing"

The American Engineers' Council for Professional Development defines engineering as the creative application of scientific principles to design or develop structures, machines, apparatus, or manufacturing processes, or works utilizing them singly or in combination; or to construct or operate the same with full cognizance of their design; or to forecast their behavior under specific operating conditions; all as respects an intended function, economics of operation and safety to life and property.

Based on that definition, here's what I believe my concept of business or marketing engineering is all about. It is a creative application of a variety of traditional business principles in concert with several other disciplines ranging from psychology and sociology to anthropology, history and more. It's purpose is the design (a keyword) or development of very specific (another keyword) solutions to identified business issues.

Therein is the meat of the matter - identified and another keyword. This is the step that's usually skipped. This is where the engineering comes in. Most business problems are misidentified or misdiagnosed and worse, the solution is either ineffective or it just makes matters worse. Case in point? When the Ford Motor Company was suffering through their Edsel marketing debacle fifty years ago, they made matters worse when they thought their low sales could be fixed by offering buyers, who were sitting on the fence, an incentive. The brilliant solution was: Buy an Edsel get a free pony! A farm animal for an automobile that was DOA (Dead on Arrival) from day one. Sales were low because well, the car didn't match the year-long hype of a brand new concept prior to the roll out.

So, yeah! Ponies are a very logical solution to a problem that just won't be embraced by management. No! The new problem the misguided solution caused was, "now, what do we do with the ponies?" They didn't need another problem. So, just like engineering, business or marketing engineering, is employed at the initial design or development phase. It is also used to make mid-stream corrections. And just as important, it's used to forecast product and business, market or consumer behavior under specific operating conditions with specific regard to the organization's intended function, operation and profitability.

What procedures does a marketing engineer employ to best diagnose what the cause is versus focusing on the effect? The good old, tried and true marketing mix. In my case the expanded version that includes People, Process and Proof of Evidence.

Product? It's amazing how many businesses there are out there that don't really understand what they're selling. McDonald's doesn't sell hamburgers. McDonald's is successful because they know that. They fully understand that they are not in the fast food business. They are in the real estate business. One of the unexpected perks of their enterprise. McDonald's locations are worth billions. McDonald's product isn't their line of fast food items. It's quick convenience. Unfortunately this, in my mind has become a bad thing. They are, not counting the kids, for the most part, no longer an experience destination. You go to the drive up, order and drive away. That's what they do and that's what you go there for. It's not all as simple as I've made it out here but it's the gist of it. In other words know your product and what it represents through the eyes of your customers.

Price? Forget about it! Think value instead. Value is emotion based. Price is logic based. Value is a perception. Price is a reality. Nobody wins on price alone.

Place? Where you do business dictates, for the most part, how you do business. The consumer's online experience is not the same as it is in your store! The keyword here is experience. Whether online or in-store, it's your point of distribution. The point of purchase is the tip of the funnel. Paying attention to where "stuff" comes from and when/where/how it enters the top of the funnel is also very important.

Promotion? It's not only restricted to advertising! Time to wrap your head around the fact that every communication with your business is promoting either good will or keeping business away. Dirty restrooms are detrimental to any advertising and PR efforts and expense. Promotion has to create attention and keep buyers interested. It has to increase a consumer's desire to purchase. Brand building? Sure. But make sure the experience is greater than the hype.

People? The fifth addition to the traditional marketing mix foursome is the glue that holds it all together. Remember to er is human.

Process? The system is the track that keeps the ball-bearings (people) inline and everything operating smoothly.

Physical Evidence? Simply put - if it walks like a duck, quacks like a duck, well... It is what it is. And if a customer says it is so. That's what it is.

Business and/or marketing engineering? It's not a gimmick. It's a way of delivering far better value to clients. No pie in the sky. No yes man routine. No let's throw it out there and see who wants a pony. To borrow from engineering, here's the bending moment principle.

It's the moment when, using Archimedes principle of the lever, when tightening a bolt, you have a choice. Hold the wrench closer to the bolt or grab it at the end. Holding it at the end, away from the bolt, offers the best advantage and the greater force employed influences the intended outcome of tightening or loosening the bolt. Simple enough? But there are other factors to be considered. A longer wrench may in fact bend. It's not the wrench or the bolt but the combination of force and distance. Sometimes the obvious isn't. Business engineering tries to reveal the obvious hidden in plain sight!

As for whether I should stick to Business Engineering or Marketing Engineering? It's like this, so far I'm good with being a Marketing Engineer who does Business Engineering or, maybe I should be a Business Engineer who does Business Engineering. I've got to find a lever!

Dear Ol' Dad - You've Got to Have a System

At the time, working with, or should I say, for my dad both horrified and aggravated me. Dad ran a one of the larger janitorial contracting services in the area for quite a few years. He did homes, offices and businesses of every size and description. I still can't drive around town without thinking; yep, we did that place and that one and, that one too.

Dad gave me my first marketing job. I came up with the name of his company and designed his business cards. Dad's business, Roland's Clean Sweep Janitorial Service was also a great place to learn a few things about marketing. When you clean bathrooms, bedrooms and boardrooms, you get to know a lot about people, their lives and their businesses.

I learned about WOM (Word of Mouth) because my dad's business grew solely based on his reputation. One customer told a friend and they became a customer and they told a friend and they had him do their office and then their summer home. And, that's the way it grew. Now, you'd think getting things clean was the most important thing in the janitorial business. If so, you'd be wrong! Memorizing where everything was in a room, removing it and after you were finished cleaning it; putting everything back exactly where it was was the real secret to the business.

The one thing that I will never forget - how could I - it was my dad's mantra, was "you have to have a system. If you don't have a system, we'll be working against each other instead of together. There's a system for everything!" In marketing, it's Process, one of the expanded items in the old Marketing Mix. In the seven item Marketing Mix, there's the original fab four; Product, Price, Place and Promotion. I've always added People. But there's also Process and Physical Evidence.

Process, or as my dad called it, is a system of doing things. The old SOP (Standard Operating Procedure) that dictates everything from customer relations, to management to making bank deposits and beyond. Without a system there would be chaos. With a system there's a level of known expectations. Systems are great until you become a slave to it. And, yeah, the old man knew how to evolve as and when necessary. To his credit, his customers forced him to keep working for them long after his intended retirement goal.

I also learned about going the extra mile from him and to deliver not only as expected but to go beyond! On customer, who lived in New York, was on her way to her summer home in South Dartmouth. It was a ritual of over fifteen years. She called to let him know she was just up the road buying groceries and would be at the house shortly. She couldn't wait to get there and make herself a cup of tea. When she arrived, there was a pot of tea ready for her. All she had to do was unpack her bags after she enjoyed her tea. We put away the groceries.

At one point, there were a lot of people working for Dad. Many of them were very competent. But some of the older customers, those whom he had served for decades, still refused to let anyone, including me, do specific things because only Roland did it best.

If there was one thing he never considered, it was selling the business. Someone told him he could sell the business for a good price. I spoke to several of his customers and the answer was the same. No one could replace him and they'd just as soon not bother with the new owner. His secret to success was developing, improving and sticking with his system. He represented a value far higher than the services he charged for and, he wasn't the cheapest guy in town. He was proud of what he accomplished considering his learning disability. He was dyslectic and for a child growing up in the 30's and 40's, it was not very pleasant being considered, as he said he was called, stupid.

I asked him why he went into this business when he had a great job as a trainee instructor at the Berkshire-Hathaway Mills. He said that it gave him freedom and that he liked being his own boss. I asked why janitorial services? He said, as unpleasant a job as it may be to many, people need people to either help with or clean up for them and that is was a business anyone could do. I then asked him why so many of his competitors had closed. He responded, "Because they don't care about the customer. To them it's just a money-making thing. Yeah, any dummy can clean a rug but there's a lot more to it than that. - there's a system to it."

Of course! There was a lot more to the system than met the eye. It wasn't just about how you do things. It was about why you do things. I wonder what he would have said about Thomas Edison who said, "Being busy does not always mean real work. The object of all work is production or accomplishment and to either of these ends there must be forethought, system, planning, intelligence, and honest purpose, as well as perspiration. Seeming to do is not doing."

I think they would have liked each other. I'm so glad I wrote this because in doing so, I just realized the old man taught me more than I actually thought he did...

Feeding the Dragon - Paying the Mortgage

Okay, so I teach the subject but, I also practice marketing. How can I relate to my students what is waiting for them outside the gray corduroy halls of UMass Dartmouth? How can I tell them that, yes, there is a right way, a wrong way and the client's way, without sometimes feeling cynical?

For sure, sometimes you have to feed the dragon (AKA client) in order to pay the mortgage or somebody else will. Then again, why do clients spend so much time looking for, finding and interviewing you just to hire you to have you do what they think they want rather than letting you do what you know they need?

I won't ever argue that I know the customer's business better than they do. But I think it's also the problem. They know their business better than anyone else and, if familiarity breeds contempt, here's a perfect example Who knows their child better than a parent? But sometimes it takes a neighbor or a stranger to point out that your little darling isn't what or who you think they are. Perspective is key. You have to be still and listen to the unbiased opinion of others.

The old mindset on this side of the business fence is that the client can have two out of three - good, fast or cheap but not all three. What I've found is, that after awhile, if they trust you, they begin to relinquish their control over you. In fact, they begin to depend on you to lead them, remind them and even prod them into action or towards a different direction. It will even get to the point that, if you don't notice the transition, they will become aggravated that they're doing most, or all, of the thinking and the leading.

Marketing is like any other business. It's populated by all kinds of people. People have personalities, traits and quirks. The trick is to know when to feed the dragon, when to step away because it's a personality based power struggle and when to know when you've become indispensable.

The key to this dilemma is to kind of look at it this way. The more you do something, like interact with all kinds of clients, the more experience you gain. Someone said that, "experience enables you to recognize a mistake when you make it a second time." The secret to knowing whether to, or when to, feed the dragon, based on my experience, is contained in one word - value.

If they've come to value you, your opinion and your consistent follow-through; that's the best you could ever hope for. Cherish that client and clearly demonstrate how valuable they are to you. If they never come to value you, through no fault of your own, it's time to stop spoon feeding their egos or whatever drives them and make a clean break of it. In closing, here's a bit of borrowed (and slightly tweaked) wisdom from the fabled Men's Book of Relationship Rules - Come to us with a problem only if you want help solving it. That's what marketers do. Sympathy is what your employees are for.

The Duck Joins the Gorilla, Pig & Corpse

Duck duck goose. Or, birds of a feather flock together. Another is, if it walks like a duck and quacks like a duck - more than likely it's a duck. Not a goose. A duck! Maybe worse than trying to perfume the pig is ignoring the duck. So, please keep this in mind when you're developing a strategy and a creative message.

Your market and audience are what they are. And, as such, they want to hear what they want to hear. They don't care what you have to say or offer. They only want to hear what it has to do with or for them. Other wise (you knew this would happen), it's like water off of a duck's back.

As a marketer, all you have to offer is a solution. So, do it. Offer a solution that will solve the consumer's FUD factor - Fear, Anxiety and Doubt - quickly, simply and affordably. Well, more on this later when I return from the pond - it's duck season and time to make some money!

I'm back from the pond and got a chance to (here it comes) a few ducks in a row. Pun aside, it was a good venture. Any potential customers you may have a chance to persuade about your product or services only want to hear about the benefits, advantages and, perhaps, some really great features.

In other words - what's in it for them? If you have existing customers communicating with them what's new or beneficial is what they want to hear because they want to know what you've done for them lately? If you understand the concept I wrote about earlier about the Gorilla, Pig and Corpse, you'll understand this: The duck is easy to see if you really look at it and listen to it. The gorilla is not something to ignore.

Get it out of your organization as soon as you can because all it will do is distract you from doing what needs to be done. And, regardless of how much makeup you put on the corpse, like a dead or dying business, it's not going to get up and dance. Give it the burial it deserves and move on. The road to recovery begins, to paraphrase AA's Bill Wilson, when you admit you have a problem. Working off this and his brilliant principles and applying them for business isn't too far fetched.

Understand that you can control most of what goes on or happens to your business. Examine your record of errors, as well as, your successes. Resolve to amend those errors or, promise yourself to not consciously repeat them. Learn to operate and manage your business with a new and improved code of management - your SOP (Standard Operating Procedure) should not be S.O.S.O. (Same Old Same Old). Identify those within your organization who suffer from the similar behaviors and ways of thinking.

On a lighter note, perhaps the legendary king of the one liners, Henny Youngman, said it best, "The patient says, "Doctor, it hurts when I do this." "Then don't do that!"

So, when you're developing a marketing or promotional strategy, or a creative message, remember who you're talking to and remember this age old advice - If you're wondering which side of the Duck has the most feathers - it's the outside!

Customer Service – Really?!?

Ah, the Golden Rule – do unto others as you would have them do unto you. When did that go out of fashion? Unfortunately, I don’t have to go too far afield to find examples of poor customer service. All I have to do is step onto this campus. The back-to-back Tuesday/Wednesday and Saturday/Sunday snowstorms (Spring Semester 2011) that most all here have endured and, according to reliable sources, will continue to endure, have really highlighted the worst the University has to offer to all of its customers when it comes to caring.

I use this acronym in class, borrowed from a former colleague, CARE. Each letter represents several important points. C is for communication, care and concern, which to me are one and the same. Communication is at the core of every relationship. Care and concern are not just a state of mind. They are communicated by actions. A is for attention, attitude or aptitude or any or all three. Paying attention is being vigilant, which is all about wakefulness and watchfulness and demonstrates empathy.

We speak of the value our product or service represents. But, value is a form of respect. I f we value we then, therefore, respect. So then, R is for respect plain and simple. I said earlier that communication is action. The manner in which something is communicated is the manner in which it is executed. Remembering that, E is for execution or more correctly expected execution since specific actions have specific anticipated results.

Universally, customers just want to know you care. Care and concern are central and very important to every relationship. Believe it or not, the University is a community just like any other. While there are those who are labeled as administration or staff or faculty or students or visitors, we are all, within this community, neighbors. More importantly, we’re all each other’s customers. And, specifically it’s students and visitors who are the University’s main customers since they represent the University’s bread and butter. The students represent the current and hopefully repeat customer base. Visitors, represent the customer base of the future, as well as, a good representation of our neighbors.

Getting to the point - in marketing we bandy about the term CRM (Customer Resource Management) as if we really know what it means. It’s simple enough; customers are those who buy. While a resource is replenishable; as a source of material, wealth or supplies that can be accessed or drawn from when needed. Management then is an act of managing which is overseeing, supervising and handling, as well as, controlling, caring and dealing with the resource. In this case, the resource is the representative customer base.

Customers are not a bountiful, infinite or secure resource. “You may deceive all the people part of the time, and part of the people all the time, but not all the people all the time,” said Abraham Lincoln. Customers cannot be counted upon for their money or loyalty they represent from cradle to grave. From their initial purchase, to their anticipated continual and uninterrupted purchases, in order to maintain them as a resource, the seller of goods or services must constantly present and deliver value.

What is value or, what does it represent? Something that can be measured or possesses a quality that renders it desirable or represents “it” as having intrinsic, that is, innate, inherent or inseparable value from itself. It can also be represented as instrumental, or utilitarian such as achieving or possessing the ability to purchase, or be exchanged for, something else. Therefore, the value is in the experience. Good customer experiences are valued and bad or less than expected experiences are not. The old saying still holds true. Burn me once; shame on you. Burn me twice; shame on me. With that in mind, a customer’s potential lifetime value is often referred to as if it were the divine given right of businesses.

Keeping the customer happy is simple enough – make it:

• Easy for customers to get to your place of business or to communicate with you.
• Worth visiting again and again.
• Simple for the customer to find, get or do what they want or need.
• Exciting to look forward to.
• Obvious as the only choice.
• Perfect in every way.
• Beyond their expectation
• Theirs!

Customers may represent a value in potential sales dollars to a company but they in turn need the company to demonstrate a continued unfaltering loyalty to them. Customers need to feel they are in control. They also need to feel appreciated. And, perhaps most importantly, they need to know that they not only belong to the company; they are an integral part of it. They do enjoy doing business in a place similar to the fabled television show Cheers where “everybody knows your name.” So remember, “Practicing the Golden Rule is not a sacrifice; it is an investment.” Although the author of that quote is unknown, the advice remains no less valid.

Eating Peas with a Knife…

How many businesses operate this way? For sure, it’s a balancing act. More than likely, it’s a waste of time. Let’s look at how some business cultures evolved based (loosely) on the evolution of eating utensils. At one point Europeans ate with their hands and a knife they carried with them. Although forks existed, they were rather large and only used to lift large cuts of meat out of pans or the fire or to hold it down while it was being carved. When forks did show up in Venice, they were condemned by the Church who believed that their use was contradictory since God provided fingers for us.

So then, the use of forks was practically sacrilegious. By the time the Pilgrims landed at Plymouth Rock, forks were not as common as in Europe. Spoons were more so and oddly used as forks to hold meat while it was cut. The meat was held down with the spoon in the left hand while cutting the meat with the knife in the right hand. Then they would switch the knife to the left hand and eat with the spoon in their right hand. In fact because of this odd behavior, Americans today continue to hold their meat with their fork in their left hand and cut with their right and switch before taking a fork full. Whereas, in Europe diners continue to hold their meat with their fork in their left hand, cut with their right and do not switch hands.

The use of a fork was still not common in America even by the time of the Revolution. How does this fit in to how businesses are operated? Simply put, some businesses are refusing to grasp (the pun is quit intended) the new technology. Or, worse yet, trying to use the old forms in a manner in which they were not intended. Take the new and still emerging digital media that was created by the internet. Many businesses are still holding on to the traditional and very much offline print, radio and television based media.

Sure, they mention or place their website address in their advertising as part of the call to action but it’s as ineffective as switching from a cutting posture to an eating posture. It is no more efficient than trying to eat peas by balancing them on a knife. At this point, I’m going to substitute peas with P’s; more precisely the basic elements (Product, Price, Place and Promotion) of the tried and true marketing mix.

Yes, if you’ve read this column faithfully (thank you by the way) this is not the first time I’ve gone on about the Four P’s and it won’t be the last! And, yes, a review is necessary. And, yes, I use 5 P’s in my Marketing Engineering Assessment. The first P – the product(s) or service(s) you sell along with their benefits, advantages and features may or may not be common knowledge. Not every one of your current or potential customers knows or easily understands everything you do or offer.

The Second P – price. Are the product(s) or service(s) you offer defining you in the marketplace as low-ball, expensive or, as a great value? Price is all about dollars and cents whereas value is all about an exchange of the consumer’s time, expectation and yes, money for what you are offering. In other words, is it worth it? The Third P – place. Where you do business can be anywhere today.

You can operate a “bricks and mortar” location with or without internet sales support or, you can do all of your business on the internet. Regardless of where it is actually conducted, the value of quality, selection and speed of acquisition must still apply. The Fourth P – promotion. How you promote your business is what this month’s column is all about. It’s time to assess whether the traditional offline advertising methods are of any value to you and to carefully determine if the new and emerging digital media such as social media, web banner advertising and video will serve your needs better.

The Fifth P – people, is an important aspect of digital media. Although advertising print space and radio/TV time costs can be dramatically reduced, there is a need to increase the time devoted to maintaining and managing your social media such as Facebook and Twitter. Digital media results, however, are far more apparent and measurable. You can continue using your advertising spoon and knife or switch to something more practical.

Is You Is or Is You Ain't?

Back in the 1930's, song writers Billy Austin and Louis Jordan wrote "Is You Is or Is You Ain't My Baby?" It was performed by Louis Jordan & His Tympany 5. Here's the last line and the chorus follows: A man is a creature. That has always been strange. Just when you're sure of one. You'll find that he's gone and made a change. (chorus) Is you is or is you ain't my baby? Well, maybe my baby found somebody new. Or is my baby still my baby too?

Is you is or is you ain't ...
There's a lot to be said about this song in the context of business and customer relationships. Can you hypothetically ask your customers: Is you is or is you ain't my baby? Should you hypothetically ask yourself: Well, maybe my baby found somebody new?

But...
But. Now there's a little word with a heck of a lot of clout! Think of how that word can destroy your perceptions of, well, about anything. For instance:

• I love you, but... or,
  
• The check is in the mail, but... or,
• The warranty covers everything but...
  

So, what you think your customers might think about you, isn't as important as what your customers really think about you:

• "The meal was fine, but..."
  
• "Sure, the service is good, but..."

Salespeople, Marketing & Management - Oh, My!
Ask yourself these important questions: Are both your Salespeople and Marketing representing you the way you want to be represented or, the way you think you're being represented? Do you realize that even good Marketing can make things worse if your Salespeople don't deliver as the advertising promised? Do your Salespeople understand the needs of both current and potential (new) customers?

These questions might keep you up at night but they might not be answered as honestly as required. However, if you were to ask your customers the following questions directly, they may be more forthright with their answers. For example: Ask them how they feel about their current or past experiences with your organization. How would they rate you based on service and reliability or, price and selection? You know, their answers may pleasantly surprise you. This kind of analysis isn't always about doom and gloom! Also ask them if your Management always resolves their issues to their complete satisfaction.

Sales Ain't Off for Nothin'...
After this, I'll challenge you to continue believing that your low or lackluster sales can only be blamed on the economy. But, as you'll soon learn, if your honest about it, is that your Salespeople can make you or break you. Your Marketing, even if it's very good, can also harm you. Of course, if it's bad, it needs to be fixed. As for your Management, or perhaps lack of it, it has to be fixed, too! If the "fish" smells from the head down, it also stands to reason that a fresh fish is the result of a fresh head.

Customers Is or Customers Ain't...
In the end, there are only two types of customers - happy customers and not happy customers. Happy customers buy and keep on buying as long as they're happy. Not happy customers may buy, but they don't buy as much and as often as happy customers. I know what you're thinking. Not happy customers don't buy. Wrong! A customer is only a customer because they buy. Happy customers buy, buy more and buy more often. They also have a silly habit of bringing new customers with them to buy, too. So, is you is or is you ain't doing what you're supposed to be doing? And, are your customers happy or ain't they? You can't just sit and wonder if they found somebody new!