On Elevating Yourself from the Low-Price Fray

Good column over at btobonline: Can low price be beat in today’s b-to-b markets?

It’s been a key question for years, but the current marketplace has made the low-price issue even more urgent.

What to do? We like columnist Kay Plantes’ suggestion that B2B companies refocus on their business model strategy.

That’s exactly what some of the midmarket manufacturers we work with have done. Price is a huge issue in this segment, and the recession has certainly made it difficult to avoid getting sucked into self-destructive pricing wars.

But our clients have been fighting back. They’ve taken a close look at what they do that customers value the most, and they’re actively adjusting their business models accordingly, by zeroing in on a niche or approaching customers with more robust offers.

So you can start there. The key then is to follow through on the new business model by linking it directly to marketing strategy and execution you need to achieve your goals. Don’t drop the ball. You’ve got to take that strategic focus, articulate it clearly and run with it, making it the backbone of all communications and interactions you have with current and prospective customers.

The result should be less emphasis on products and prices, and greater emphasis on the unique value your organization provides to customers through your refined business model strategy.

This is what’s meant by “strategic marketing communications.” It’s based on your goals, it’s well grounded and it really gets you somewhere—out of the low-price game.

Let’s Hear It for U.S. Manufacturing

It’s nice to see someone sticking up for U.S. manufacturing, for a change. Example: Rockwell Automation Inc. chairman and chief executive officer Keith Nosbusch, has been visible and vocal lately advocating for more investment in the sector.

"U.S. manufacturers absolutely must have innovative energy-efficient and productivity-enhancing technology to be competitive," he told a press briefing last week at the National Press Club in Washington, D.C.
The good news is that many manufacturers are applying these lean technologies. The not-so-good news: Too few people are aware of this success.

That’s why it’s refreshing to hear an industry leader like Nosbusch speaking out. We’ve talked a lot in this space about the need for manufacturers to market their individual companies with differentiating brands. Today, the need for more powerful communications may be equally important for the manufacturing sector as a whole.

After all, despite the tough times and fierce overseas competition, manufacturing remains a vital backbone of the U.S. economy. This sector deserves and needs support, and manufacturers should not and cannot allow themselves o be overlooked.

Kudos to Nosbusch for putting himself out there on this front. Now, are there any other manufacturing leaders ready to lend their voices?

Dear NFL: You’re Doing It Wrong

So, the National Football League is moving to restrict fans’ in-game tweets and other microblogging activity. The justification? The threat posed to the NFL’s exclusive TV contracts by fans giving play-by-play updates and posting video clips.

This attempted crackdown is so misguided we’re not even sure where to start. Maybe here: Are Roger Goodell and the gang really so worried about random, shaky handheld video on Twitter enough to risk alienating hundreds of millions of fans with these heavy-handed, paranoid/defensive tactics?

From a Forbes article on the topic: “The strong-armed tactics demonstrate how worried sports leagues are about the impact of social media on their business. But they also open the NFL up to a potentially ugly legal battle if the league cracks down on fans.”

But it’s a lot more than a litigation nightmare. The NFL has a great community of rabid fans. And even if social media was a slight drain on sports broadcast audiences, this would still be just plain bad PR. Instead of going on the defense, the NFL should play a little offense and leverage social media to channel the enthusiasm of its fan base.

Summer’s Over (Sort of), but Economy’s Heating Up (a Little Bit)

Most of us consider Labor Day to be the end of summer and all the good vibrations that go with it. Nevertheless, we’re feeling pretty upbeat around here.

And it’s not just because of the coming three-day weekend. It’s also because of the coming economic recovery. There are more positive signs every day:

-- Global economic acceleration

-- Private sector hiring

-- Productivity up

-- Private equity investments increasing

Tell us your thoughts here or over at Positive Breakthroughs, our LinkedIn group sharing economic optimism.

And then be sure to enjoy your long, still-summer weekend.

Another One of Those Incremental Improvements That Keep Google Ahead

Here’s something that shouldn’t surprise you: Google just keeps getting smarter.

Last week, the Internet frontrunner announced changes that will enhance its contextual targeting capabilities.

Contextual ads show up on pages of Google publishing partners. These AdSense ads are supposed to be relevant to various keywords on a given page. (Say you load a story about increasing new home construction. You’re likely to see an ad from a homebuilder.) When it works, it’s your typical, intuitive, don’t-even-realize-it’s-happening Google experience.

Trouble is, sometimes Google’s contextual targeting hasn’t worked quite right. Like when an ad for cheap airline tickets shows up on a page about a plane crash. Here’s an amusing slideshow of some of the most egregious examples of contextual targeting mishaps.

The changes Google announced this week should cut down on these embarrassing exceptions—once again keeping Google ahead of the pack in terms of creating an ever smoother, more customized Internet that works better for advertisers and users alike.

That’s not only good news for you if you’re an advertiser. It’s also a good example. The lesson? Never stop improving. The folks at Google never do, and that’s one of the ways they maintain a competitive edge.

Lessons from a ‘Best Buy’ That Wasn’t

Come on Best Buy, you can do better than this. Your little $10 LCD TV mistake could have been parlayed into some goodwill publicity—if you bothered to follow through.

Instead, we get what amounted, more or less, to a classic “no comment.” In fairness to Best Buy, the retailer is refunding everyone who ordered the sets at that eye-popping price on bestbuy.com. And the official word from the company was oops, sorry for the misunderstanding.

But that was followed by a gentle reassertion of the company’s right to change pricing and availability of products at any time. And beyond that, Best Buy is mum.

Why? Seems to us like the perfect opportunity to turn a mix-up into a make-up with customers. Turning an unhappy customer into a satisfied one is one of the quickest routes to positive word of mouth (and great PR). For Best Buy, it could have been as simple as sending all the aggrieved a little Best Buy gift card (or at least a decent coupon) along with their refund. Then, of course, announce loudly that you’re doing that.

Alas, that’s not happening. Meanwhile, customers are griping, news outlets are spreading the story and Best Buy is looking kind of cold and careless.

Branding is back, baby!

For many B2B companies, the whole idea of brand building has taken a back seat in today’s economy. Everybody’s cautious with their investments, limiting their spending to price promotions and the like.

It’s understandable, but it’s also ill-advised. Why? Because in a shrinking market, you have to aggressively protect and grow your share. And you can’t do that by focusing on your products and services alone. Doing so only plays into the trap of commoditization.

We think it’s time to give brand building a little love again. Good thing we have this powerful tool nowadays that can help you build your brand directly and cost-effectively with customers. Maybe you’ve heard of it. It’s called social media.

Check out this decent primer in The New York Times on managing your reputation online (or, in other words, building brand equity).

Opportunities abound to connect with customers, solve their problems, anticipate new ones and cultivate trust every step of the way—exactly the vibe customers are seeking in these uncertain times. Social media is an excellent path to reinforce your brand and build the confidence your customers need to have for you to win their business. Yes, branding is back, baby! It’s online, it’s every day, and it’s here to stay.