PREDATORY MARKETINGThe Future is Predatory MarketingTEC 12Thursday 13 October 2011

AGENDA

9:30 - 10:00 Stimulation Keynote.

10:00 - 11:20 Working session.

11:20 - 11:30 Break.

11:30 - 12:30 Stump the Strategist session. Your chewiest marketing challenge solved live in 9 minutes. 

Link to me on LinkedIn (Ashton Bishop) and you can download this presentation

THE FUTURE OF PREDATORY MARKETING

IS

Too many competitors

Too many mediums

Too many options

Too much noise

Predatory Marketing lets you focus for greatest

IMPACT and lasting EFFECT

Let’s start with bullies!

What’s the golden rule?

An easy target?

At the age of 7, I started running

At 17, I started martial arts

At 22, I was at the world debating championships in Athens

At 23, I graduated with a law degree

And by 24, I’d run away with the circus

My life was built around a fear of bullies!

My marketing life changed when I met this man...

MY ADVERTISING LIFE STARTED IN TASMANIA

I was quickly working for the big boys

What does that teach you about predatory marketing?

Let’s go back to what Dave teaches

Let’s start with thegood news...

? ???

The great news...is there’s a bunch of people out there just waiting for your product and service

?

? ???

The great news...is there’s a bunch of people out there just waiting for your product and service

?NOT!

So, the bad news is...

Somebody else has your money

There are only two ways to get it1. New people to use your product 2. Existing customers to spend more

Why should a leader and a challenger act differently?

LEADER CHALLENGER

First to market

• Owns 100% and obtains leadership positioning

• T.O.M awareness, distribution and critical mass advantages

Why a leader and a challenger should act differently

Challenger entrant establishes market share

Why a leader and a challenger should act differently

Challenger often inadvertently grows the market

•Over 50% of advertising is misattributed to brand leader

• T.O.M awareness, distribution and critical mass advantages

MARKET LEADER

GROWTH

CHALLENGER GROWTH

Why a leader and a challenger should act differently

The leader should focus on growing the market

If a challenger grows the market they often‘give away’ a disproportionate share and strengthen the leader’s position

Why a leader and a challenger should act differently

IF YOU’RE NOT BEING PREDATORY...

...YOU’RE MAKING THE BULLIES STRONGER!

It all comes back to positioning!

Effective positioning

Who remembers number 2?

BE A MARKET LEADER

IN A SMALLER MARKET

- Highest mountain in Australia?

- First solo trans-pacific air crossing?

- First man on the moon?

- Most wanted man in the world?

Let’s get predatory

Identify the weakness that arises out of your

competitor’s greatest strength

Predatory Marketing

Identify the weakness that arises out of your

competitor’s greatest strength

Avoid merely looking for parity Focus on relative strengths

Predatory Marketing

INFLICTS THE GREATEST DAMAGE AND

MAKES RESPONSE DIFFICULT

Predatory Marketing

How’s it work in practice?

VS

VS

How’s it work in practice?

You are re-positioning the competition

Reposition the competition

10 DAYS, $1 MILLION MEDIA, $50 MILLION TO BOTTOM-LINE

WEET-BIX >> ORANGE JUICE >> DONUT >> CHOCOLATE CAKE >> NUTRI-GRAIN

3.2 grams of sugar 32 grams of sugar

VS

NUTRITION IRON MAN FOOD

The four reasons Predatory Marketing is the future

Everybody’s got a bully

The World has changed

Don’t just annoy them

Markets are niching

Stand-out or die-out!

What are some brands in your world?

What are some brands in your world?

WHAT ARE SOME BRANDS IN YOUR WORLD?

The average person is exposed to:

$6.72 billion advertising spend in Aus*

Over 1,000,000 branded messages a year

3,000 branded message each day

Only notice 80

React to 10

57% are remembered negatively*BrianWave Connection, UK, 2004

*Neilsen data 2006

Obscurity is our greatest risk!

How did we apply it?

1. Needed staff

2. Big agencies had them

3. What’s the strength?

4. What’s the weakness?

5. Time to get predatory!

Results

Within 2 weeks:

40+ applicants

Over 7000 views

Global coverage on over 25 blogs and sites

Two potential clients walked in the door

Saving on recruitment fees alone: $16.5K

Estimated media value: $135K

Return-on-investment: 60x

www.StepChangeMarketing.com

© Copyright 2010 All r ights reserved by Step Change Marketing in perpetuity

ANY QUESTIONS?

Your turn!

06: VALUE STATEMENTS

WHY YOU NEED IT AND HOW TO USE IT

WHAT MAKES YOUR PRODUCT OR SERVICE VALUABLE AND UNIQUE?

Most businesses talk about the same things and forget to mention the things that make them truly different. If you’re competing with a giant in your category and talk about the same things, you’ll lose.

YOU NEED TO FOCUS ON WHAT MAKES YOU DIFFERENT.

Make features as specific as possible. Don’t just say ‘quality’; you have to mention what makes the quality so good: eg. the source of ingredients; or that each staff member has four weeks specialist training; or that each product is hand checked on the production line.

You don’t necessarily need to communicate all the features you list, but it’s great to have a full list.

FOR BENEFITS: Make sure you’ve thought about it from the customer's point-of-view.

FOR IMPLICATIONS: Think about what is now possible in your customers' lives that wasn't previously. Whilst product features are important, always remember that customers are not buying your product or service; they are buying the benefits they get from your product or service.

OUR EXAMPLE

COMMENTARYCOMPARED WITH YOUR COMPETITORS:

Where do you go ‘over-and-above’ in what you do for your customers?

What is your price-point? What payment options do you give that make you better than your competitors?

Does your business, or any individual staff, have exceptional experience, qualifications or unique knowledge of your product, service or industry?

Are there any specific product features that differentiate youeg. unique materials, operational features or processes?

Is there a guarantee that you make about your product or the way you will deliver your service?

Do you have convenient locations or easier access for picking up? Better delivery times eg: Parking, ramps, website ordering?

Is there some reason why your product has exceptional quality? This might stem from an ingredient or the way you deliver your product or service

Have you done work for a notable or special client that other customers would see as valuable? Or do you have testimonials from happy customers that are impressive in terms of what they say or overall number of satisfied customers?

Has your business been open longer or at times that competitors are not eg. late nights, weekends, public holidays?

Do you have any sponsorships that bring credibility or community connections that your customers would appreciate?

Do you have any industry awards or have you been recognised for the product or service you provide?

Are there other specific claims you can make in terms of being 'the biggest', 'the only', 'the fastest', 'the longest'?

Have you been recognised for any other achievements?

# A.R.P C I /10 FEATURE BENEFIT IMPLICATION

1 A 8½Proprietary model developed over 12 years and from hundreds of sources

The world’s most powerful marketing tool There’s nothing quite like it

2a R 8Our leaders have over 40 years worth of proven, big brand experience

It’s what is actually used. It’s what actually works

Thousands of dollars of knowledge and a competitive edge

2b A 9

Senior people work on your plan with you, including Australia's most Awarded Media Strategist, Australia's Top Marketer Under 30 and Australia’s leading predatory marketer

Forming a powerful combination of your experience and ours Best minds on your business

3 R 7Experience formed from facilitating over 170 diverse businesses Proven model, proven results

We guarantee you a result - with confidence

R 7 Facilitate groups of up to 12 people working on the same plan together

Benefit from the 'wisdom of crowds' whilst getting alignment. And alignment leads to massive savings

You’ll get better results - with confidence

4 R 8 We offer fixed cost, time and commitment Certainty; no nasty scope creep or surprises

You can plan people and financial resources - knowing we’ll deliver

R 7 Quickest, simplest and most efficientWe achieve in weeks what takes other agencies months to do

We make the best use of everybody’s time

R 7 Business focused vs creative award focused Effectiveness; you’ll see results quicklyReal world results; we saved one client $165k within 8 weeks of our engagement

5 R 9 The only agency in Australia offering a no result, no invoice policy

Removes any risks Nothing to lose, only upside for you

A 7 Ongoing Support Plan (Monthly)

We offer continuity of strategic direction, whilst helping you with the implementation

Our work is designed for action, not theory, and we make it happen

14

# A.R.P C I /10 FEATURE BENEFIT IMPLICATION

A.R

.P CI = CUSTOMER IMPORTANCE

Your customers consider various factors when deciding to purchase. How important is this feature you’ve listed in their decision?

ABSOLUTE: Only your business does this or can offer this RELATIVE: A relative advantage you have over some of your competitorsPARITY: A cost-of-entry to your category. If you didn’t offer this you probably shouldn’t be in business

# = OVERALL IMPORTANCE

The overall importance to your business and the focus it should

receive in your marketing communications

YOUR MISSION

WHERE TO STEP UP

COMPETITIVE ENVIRONMENT

CUSTOMER INTERROGATION01 02 03 04 RECOGNISING

YOUR CUSTOMERS05 06 VALUE STATEMENTS

IT PAYS TO BE ‘ON-TREND’

TUNE INTO WIIFM

TAKE A STAND

RISK = REWARD

INNOVATE OR DIE

BE TRUE TO YOURSELF

IF YOU’RE NOT WINNING, CHANGE THE GAME

!

YOU HAVE TO LET GO TO SUCCEED

PLAY BIG!

SOME PREDATORY INSPIRATION

WHO IS YOUR KEY COMPETITOR? SOMEBODY WHO YOU CAN GROW AT THE EXPENSE OF.

WHAT IS THEIR GREATEST STRENGTH?

WHAT ARE THE WEAKNESSES THAT ARISE FROM THEIR STRENGTH?

WHAT ARE YOUR RELATIVE ADVANTAGES? LOOK TO YOUR KEY MESSAGES EXERCISE

WHAT ARE SOME IDEAS & OPPORTUNITIES?

PREDATORY MARKETING WORKSHEETStop looking for parity and focus on your relative strengths. If you can do this you will inflict the greatest damage and make response most difficult.