1. Failure to direct the correct message to the correct audience
For at least two decades, the IBM message rang throughout American business with undisputed clarity: You can't go wrong buying IBM. While IBM was praising itself, along came a kid from Texas with his own message: “Just take it out of the box, plug it in and go to work. If you need help, give us a call.” The Dell Computer message spoke to the customer. The IBM story spoke to its sales force and corporate staff.
IBM's self-serving marketing message — like those of so many other companies — was a primary reason for its marketing failure.
Years later, the effects of that misstep continue to be felt. Although IBM roared back as a computer services company, Dell has never lost the lead in PCs.
2. Failure to match the budget to the goals
Builders of Indy 500 racecars make their point: “Speed costs money.” This applies to marketing, too. If a company is introducing a new product or decides that it wants to be the leader in its field, this goal comes with a substantial price tag.
If the task is simply to maintain a marketplace presence, then the budget will be much lower. Lofty goals and a low budget are a deadly combination that almost always leads to the inevitable conclusion that the marketing was a failure.
3. Failure to make a significant impact
Brylcreme's advertising slogan branded this men's hair care product forever: “Brylcreme...a little dab will do you.” That might've worked for Brylcreme customers, but not in marketing.
Unless results deliver higher sales, greater market penetration, or a solid flow of inquiries or customers, the program probably lacks impact. Too little marketing might be worse than none at all.
4. Failure to use the correct techniques
A community bank committed its entire marketing budget to buying billboard space to advertise its credit card. In three months, the budget was gone and so were the billboards.
The money was wasted because the wrong tactic was selected. A more appropriate approach might've been to identify prospective customers and initiate a repetitive direct mail campaign to enroll users. The bank could've added print and radio advertising to support the direct mail by increasing awareness of the bank and its credit card.
5. Failure to be consistent
A long-distance telephone service reseller contracted with a large business association to provide members with discounted rates. More than six months later, the sales manager reported that only 100 members had signed on.
After one mailing and a little telemarketing, the recruitment effort was all but abandoned. If an association member happened to call, a sale was made. If location, location, and location are the keys to making a successful real estate purchase, repetition, repetition, and repetition are the three keys to successful marketing. It takes time to impact the customer and this requires a consistent program.
6. Failure to grab attention
Much of the dissatisfaction with marketing initiatives results from a failure to make a significant audience impact. Fundamentally, the issue is commitment or, more likely, a lack of it.
The dairy industry's “Got milk?” campaign not only received initial attention, but continues to attract consumer interest with its Milk Club, Shake Stuff Up tours, and college scholarship programs.
“Got milk?” grabbed attention initially — and won't let go.
How different are the marketing efforts by most companies that come and go so quickly that they don't have time to register with their audiences?
7. Failure to understand the customer
Most marketing activities lack a proper customer focus. An association was ready to print a brochure to help recruit members. A marketing consultant was asked to review the materials at the last moment. He was immediately struck by what was missing: No mention as to why someone would want to join the organization (an all-too-common error).
A computer firm was also ready to print a marketing brochure when it found that there was no mention of why someone should buy its products. The brochure focused on what the company sold, while the reasons for buying were missing.
If you think that this couldn't happen to you, check your brochures, ads, or direct mail pieces for the focus: Is it the company, the product, or the customer?
Marketing that fails to speak clearly and accurately to the customer will not be successful.
8. Failure to stay on the cutting edge
There was a time when stability, strength, and vast resources were the major factors influencing buying decisions. Although they still play a role in decision-making, technology has changed buying patterns.
Today, companies want to make certain that what they're buying is on the leading edge. No business wants a Pentium IV chip when there's something faster. The technological bells and whistles often drive today's buying decisions. “State-of-the-art” disappeared because it describes what can be mistaken for a static situation, while “cutting-edge” conjures up an image of action, progress, and excitement. Cutting edge gets the purchase order.
9. Failure to do the research
When Daimler Chrysler's PT Cruiser hit the showrooms in 2000, the funky little vehicle sold at above the sticker price. Why has it been such a niche marketing success? Luck? Not a chance. The company's market research people drew upon Dr. G. Clotaire Rapaille's psychoanalytic research on archetypes. Using hundreds of “childhood stories” written by participants while viewing a prototype of the vehicle, Chrysler implemented exterior design changes that made the car look even more “outlandish.” Sustained sales have followed.
If Buick had attempted to understand its customers' “inner child,” could its SUV, the Rendezvous, have been more appealing?
By understanding the customer, a product or service can be successful.
10. Failure to recognize results
Far too often, those who lack an understanding of marketing determine the definition of results.
Effective marketing has a cumulative impact. It's often difficult to identify results: Where did a particular sale come from? What prompted the telephone inquiries? Why did the prospect you've been pursuing for a year suddenly sign the order? Why is it easier to make sales than it was in the past? Why are prospects more receptive?
Within three weeks of mailing its first newsletter, an industrial security firm saw a surge of new business from both prospects and previous customers. “It was like being hit over the head with a hammer,” reported the marketing director. At the same time, other firms receive leads, but fail to follow up, and then complain that marketing doesn't work.
The task is to create the proper environment that attracts customers to do business with your company. “We had been trying to get through the door of a high-tech firm for more than a year,” reported the vice president of Commercial insurance sales at a regional insurance brokerage firm. “We just couldn't make it happen — until the telephone rang one day and the CFO asked us to meet with him as soon as possible.” What made the difference? Why the abrupt change? “The CFO read an article in our newsletter that addressed the problem on his plate,” the vice president noted. “He felt confident that we knew how to handle it.”