The power of WHY to consumers

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Will they BUY? 

In the old days people used to buy what companies did, what they made, where they sold it and bought what they promoted. That was the age of big marketing and sales budgets, when big adverts worked, by driving demand through pushing products down channels, offering promotion and celebrity endorsement to generate business.

The age of the Unique Selling Proposition ‘we are special because….. so you will buy’! It was the 1980 and 1990’s so the world did as it was told: “we make what you want because we tell you want you want because we know about your needs”. This relied upon trust in a brand by the public, which in a pre-internet world gave the control of information to the brands.

Trust, the intangible combination of character and competence which all successful brands must develop and sustain is mad cup of a whole series of elements itemised below. Theses components are essential characteristics which purchasers expect their brand to portray in all their activities.

 

Honest is essential

Then ethics came into play, as the age of information came into play in the early years of the new millennium. As the internet began its infancy, the power of globalisation was laid bare by the internet. People asked more about how companies did things? Where were products sourced and how became important. Why were the premium footballs, such as those which David Beckham kicked, being made by blind children in India for a few rupees. Why were the clothes models wore being made in sweat shops where workers earned less than for a dollar a day?

The internet changed how the media could communicate, explaining how household names operated and could afford those huge marketing budgets. This forced companies to change their practises (and their internal policies) by educating and fighting back against the likes of Naomi Wolfs’ No Logo expose for example.  The brands who recognised that they could no longer hide their activities became more open and honest and developed trust, while those which did not, suffered public shaming and demise.

How business operated mattered, and so in response companies upped their awareness of their social impact and visibility through corporate social responsibility. How people did things mattered not just when the likes of Bhopal and Exxon Valdez disasters struck, but in everyday life.

Fair-trade has become a household name in consumer goods, with high street stores vying for credibility of having an ethical policy, supporting local goods and having transparent policies of how they operate. This gives more confidence but leaves companies open to further scrutiny and often to unsatisfactory answers to vital key questions, not at least within developing countries, who are now the fastest growing emerging markets for many brands.

Why; should I buy from you?

The biggest question which consumers and business now asks people is why businesses are doing these things.  Everyone has become so empowered with information sources that people want to buy the WHY, not the what. Buyers want to understand the ethics of the company and importantly the people behind the decisions it takes. Customers want to know that these decisions accurately reflect the real cultural and values that company has, not just the marketing hype, which the brand portrays. Today this is the real power of the internet.

What’s the real purpose of the company, who and what is driving it and what does it really believe in and stand for. No longer is a small donation to a local charity enough to say it supports the community, customers want to know how much, who gets involved, is it company wide and deep or just a year-end tax saving.

What do the decision makers really value, their life story, their values really matter, and how they treat all their people now determines as much if not more in buyers minds than the value the products communicate.

In fact the world has changed completely, confidence comes not from what you say but why you are saying it. The educated and informed world means that it’s not just politicians who have seen their reputation tarnished but any business in any sector who does not explain it why factor.

No matter what sector you are in, understanding the still emerging power of the internet in sustaining your reputation is essential and never more so than in explaining why you are in business and why you matter.

Like to learn more, then contact us at Cowden Consulting or see our website or social media channels for more about Cowden Consulting:-

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Our services: business planning, strategic planning, business development, strategic marketing, Return on Investment, director development, director mentoring.

Cowden Consulting works with business leaders throughout the UK.

Successful Leaders Plan Their Business

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Business planning often gets a bad press, yet those who do sit down and plan their business are so much more focused, confident, and successful than those who float along with the economic tide.

Over the past ten years as a strategic planner we’ve worked with hundreds of business owners and seen how those that create a plan and implement it, do so much better then those owners who try aimlessly lead their business on a wing, a prayer or a dream.

Business planning in business is an important part defining success

According the latest BERR report, Small and Medium-sized Enterprises (SME’s) together accounted for 99.9 per cent of all enterprises, 59.8 per cent of private sector employment and 49.0 per cent of private sector turnover. SME’s really do matter to the British economy, and yet they receive little effective support from Government agencies despite being the backbone of the economy, employment, and innovation.

Why Businesses Don’t Plan

“If you don’t make things happen, things will happen to you” Lanes Company

Having questioned business owners over the last decade the reasons why owners have not put a plan in place and executed it, the excuses range from not having the skills, make the time, or have the conviction of their thoughts. The number of owners  who know they should have a plan ‘we had one when we first started, but have not looked at it since’ is a common theme, as is being too busy fire fighting to realise that preventing fires starting is the best way to not have to fight them.

Do business owners not see the value in developing a plan for their business? On the other hand, is the classic perception for business owners that frenetically staying alive is seen as being successful? For many not knowing how to plan is one major reason why people haven’t and don’t plan their business. Where to start and how to know what they are trying to achieve immediately puts people off planning. Business planning is also often at fault, the most common reason people have a plan is to secure funding from banks, that’s when banks did fund business start-ups (now they just offer a high interest mortgage backed by the Government). Therefore, once people have received funding they no longer see the main advantages of planning (and the real advantages are not around money).

business planning for leaders to ensure success by Richard Gourlay
Business planning does not happen by accident

Business Planning Skills – Have some GOALS

“The discipline of writing something down is the first step toward making it happen.” – Lee Iacocca

Planning takes time, resources, (grey stuff) not the executive trip to some exotic away weekend planning, but some time allocated to review where you are as a business, how your sector and industry are performing and what you want to achieve in the future. Whether it is looking at the next year or planning the next five years, everyone who owns or directs a business is responsible for setting its direction. However, just having a plan in your head, with the classic defence of ‘its flexible at the moment’ is either ducking the responsibility or deluding themselves.

The only way to have a plan rather than a dream is to have it written down, turned (if it is not already) into an action plan which is resourced and owned by someone to deliver. Only then do businesses go forward in a deliberate purposeful way. Only then do the right things happen because you made them happen and only then can everyone, employees, shareholders, customers, channel partners and even other halves, see your dream, share your dream, deliver your dream. That’s when planning works. It is a written document, which lives within your company, and it doesn’t matter if you are a one-man (woman) band or running a multi-national Plc.

What Business Planning Delivers

“In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it.” – Robert Heinlein
focus in business for leaders to focus on
Things that matter are having a business plan that works for your business as a leader

Planning provides focus in strategic direction, its provides clarity of where the business is and where it is going as well as a vehicle for getting from where you are to where you want to be. Planning time provides time to reflect on personal and corporate goals, time to share and channel new ideas while reviewing existing activities.

Planning in a structured and open format develops clarity of purpose and a clear understanding of the organisational and individual skills people have and can use to leverage advantage. Bringing in outside views widens the planning horizon, which can drive businesses forward, which is why many successful businesses use non-executive directors or outside specialists to help drive their business forward. That is one reason why so many people volunteer to get support from people like the Dragons from Dragon’s Den, they are looking for expertise and advice which gives them confidence to go forward as much as the money.

British business owners need to plan, more often to keep being successful. Good planning creates and sees opportunities as owners and directors lift their heads up from the daily grindstone. How often should you plan? Well it all depends on the speed of your market’s evolution, but even stable and stagnant businesses should review their business every year, and not just a light dusting (add ten percent and change the year) but strategically review what and how well they are doing.

It is only by looking for fresh opportunities and how to take best advantage of them, by planning your business around those opportunities that companies successfully compete in today’s business environment.

Business Planning is not a four letter word

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage” Jack Welch

The old adage, compete or get beat, is more relevant today than it has ever been. The rise of the Internet means there are no secrets, competitive advantage lies with those who can see an opportunity and adapt fastest to take advantage of it. Those owners and directors who see and go for opportunities become the stronger ones, and that is where good strategic business planning provides it real advantage.

By orientating a company to where it can retain better, win new and develop existing customers companies that plan their success out compete in their sector, and equally importantly have everyone focused on where they are going. From the smallest to the biggest every business needs to have a plan that is written down, owned and guiding your business in the direction you want it to go.

Good Luck

Richard Gourlay

 

@richardgourlay

www.cowdenconsulting.com

What Makes a Great Brand (Part 2)

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Clear Brand Strategy

Being clear and precise is also important in the company’s messages for a brand to succeed, a strong undiluted brand message must enthuse internally but must also consistently connect with customers through touch points, look at Innocent, Dorset Cereals or Apple as classic examples of touch point. They also demonstrate a clear story delivered with passion about who they are what they do and why they matter. This focused and consistent message is not just a marketing message but an ingrained set of values which consumers buy into with passion. These brands not only position themselves as premium players in their fields and earn more but they also continuously find new ways to spread their key messages to customers, they have a clear brand strategy to achieve it.

Everyone Lives the Brand

Another vital aspect of any brand success is that the people within that brand demonstrate what they preach, they live that lifestyle, support that brand and contribute to its success. It is their lifestyle, it is a part of the way they and their brand do business.
 Great brands go beyond the brand to understand its real value to existing customers but also to tomorrow’s customers.  Whether it is a family run local shop or a global supermarket chain great brands position themselves so they develop and hold a market position to develop long-term success.

Great Brands

Great brands also develop their own uniqueness, not just the product or service but the whole package is how we do it around here. There needs to be not only consistency but the brand hand writing and value on how they do it. The best brands always develop singular simple signals for customers, cutting through jargon to create clarity without patronisation.
For brands to succeed in today’s global markets these golden rules have never been more important as consumers have never had so much information, but if you follow these simple rules of brand success you can develop and maintain a great brand.

Looking for Advice 

If you want to develop your company’s brand and are looking for some advice on developing your company, its marketing, its sustainable competitive advantage then contact us at Cowden Consulting to see how we can assist you, or read more about us in this blog or at Cowden Consulting.

Where Does Tomorrows Growth Come From?

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Where does tomorrows business growth come from explains why it is important for leadership to use business planning tools to effectively plan their growth.

Being successful in business is all about seeing the bigger picture and understanding future growth. For a business to grow and develop the leadership team must invest time in stepping back from the day-to-day operations of the business and focus on working on the business, click the slide presentation below to learn why….

Leadership is all about VISION

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Leadership IS all about Vision

Successful leadership is about vision, great leadership is about planning your business using business planning tools to match their ambitions to the opportunities in their market, using tried and tested planning tools.

Successful business owners step back to work on their business not in their business. Looking at where they are going and why. What are the opportunities within your market and sector over the next few years. Business Planning is a process of assessing options using tried and tested business planning tools, which provide robust and accurate options for business owners to grow their business successful.

Leadership is all about VISION from Richard Gourlay