Have you noticed the orange and black tee shirts and jerseys lately? Baseball season is over for us in Charm City, but the spirit seems to be living on. If you had to pick now and award a prize for the best marketing effort of 2012, you’d have to give it the O’s. But it wasn’t because they were so masterful at communications – you actually have to applaud them for their effort in previous years when the franchise suffered losing seasons. No, they get the award because they put a “better product out on the field”. This, once again, reinforces the importance of a strong product proposition as the impetus for all your marketing efforts.
Sizzle can only sell for so long. At some point the quality of the steak makes a huge difference in customer satisfaction and re-purchase behavior. This does not imply that anybody ever walks into work and tries to develop an inferior product, but what happens over time is that products lose their functional value because change is constant. And today, more than yesterday, much more rapid. Products and services lose their relevance far quicker today, because of technology, shifting demographics and complicated interlinking marketplaces. And, we know, change at the product level is hard and expensive. But, keeping a competitive advantage is mandatory for any organization to move forward. Regrettably, there is no way to future proof your product and services, you have to look for insights to the market and be nimble in adapting.
We are seeing symptoms of this in education. Younger consumers are questioning the value of a quality education, because they don’t see the benefits. Parents, who usually foot the bill, are questioning the return on investment. And, on the other side of the ledger, schools are trying desperately to find a lower cost delivery mechanism. Much of what we see in education is a ramp up of strategic planning and an upgrade in communication planning and execution. But at the heart of it, is the realization that in 5 to 10 years, the product – “education” – is going to have to be “better” than it is now.
We see it in health care. The rise of “minute clinics” shows that the pent-up demand for “just in time” health care by consumers is an appealing proposition. We see it in financial services with the increase in people managing their investments without the help of professionals. Just about every category is seeing a dramatic shift in how consumers want to interact with them and how they want services and products delivered.
It’s up to the marketing department to be vigilant and make sure that the products and services are meeting current and future customer needs. At Procter & Gamble, one of their goals is to have “another horse in the barn” well before the current brand (or “horse”) sees any decline in sales and appeal. I won’t get on a soapbox and tell you how much technology has affected all of us. You know that by now. The issue is making sure that you don’t get so lost worrying about the sizzle that you forget about the steak.




