Driving SMEs growth through marketing analytics:An illustration

The advent of technology and its application to make industries more efficient and profitable is an integral strategic component of the overall industrial growth plan globally. Technology has helped organizations leverage their strengths and achieve scale and growth. The poultry industry has transformed itself through the infusion of technology that has resulted in new products, processes and more significantly, it’s ability to explore new frontiers of business such as putting eggs and chicken into superfood category. Undoubtedly, the poultry industry is on the cusp of a big change and therefore, the firms need to assess their readiness to embrace new realities that would drive the business. One such reality is that we are ushering in a digital era. The digital revolution is not merely about doing things on a digital platform, it is more about consumption, communication, advocacy and our ability to understand our customers better. Firms have access to more information that is organized, updated and stored for current and future usage. This provides the poultry industry a great opportunity to make a strategic shift; technology in its traditional avatar was more inward-looking and now in its digital form enables firms to have an outside-in approach to business. This approach that essentially puts marketing at the forefront and customers at the core of the business, is about using the information to answer key questions such as:

  • What are the new opportunities to serve our existing customers?
  • How do we reach out to new customer segments?
  • What type of product variants would find more preference in our chosen customer segments?
  • How do we optimize our reach to the customer segments?
  • Which form of communication works best for my customers?

A firm that markets to other firms in the poultry industry(B2B) or a firm that markets to consumers(B2C), the key business imperative is to ask the right question and find answers by deploying data analytics. Insights emerging from such investigations could then serve as a beacon for thinking innovative ways to build cutting-edge marketing capabilities. For example, many hatcheries in Delhi-NCR region has started marketing eggs through an established channel of grocery stores, online as well offline. A careful analysis of product offering would reveal that the variants of eggs are just two ; white and brown. As a marketer, these firms would benefit a lot if they were to consider choice analytics to understand consumer preferences. Consumers might be looking at different benefits which might include low-calorie eggs, low cholesterol eggs or high protein content eggs. Clearly, their willingness to pay different and higher price for their preference would mean more margins for the marketer. The consumers might also be looking at eggs with longer storage life that would increase convenience and minimise wastage. Therefore, this could be a great idea to deploy choice analytics ( Conjoint tools such as choice based conjoint ) and develop understanding on the combination of benefits that different types of consumers are looking for and are willing to pay for the value.

Yes, different types of customers! This is all about looking at the market with a dissection tool that slices the market into few homogeneous groups of consumers which are termed as market segments. Segmenting the market is a base level strategic decision but it is one of the most crucial call a firm needs to take. Therefore, three questions must be asked:

  • What constitutes the market?
  • In what meaningful ways the market can be partitioned into segments?
  • Which segment(s) do we want to target?

In absence of such a strategic direction, a poultry marketer would continue to market similar eggs to all customers(continuing with the same example) and make profits. However, it would certainly miss the bigger picture that contains the seeds of new market opportunities and presents opportunities for maximising value by making segment specific offerings. This also enables the marketer to define his business. In this example, is the firm in the business of eggs, business of food, or, it is in the business of providing superior nutrition. Firms can answer and address such strategic imperatives by examining their markets at a broad level and then can deploy customer analytics to partition the market and define customer segments in a more meaningful and profitable way.

In the context of firms that are engaged in marketing products to other firms in poultry industry(B2B), application of marketing analytics can yield huge dividends. Consider a firm in the business of producing and marketing feed to other poultry firms. Considering the challenges of storing feed is complex and daunting, the best possible scenario would be to minimize the warehousing and inventory cost. Demand forecasting tools such as predictive models based on industry consumption pattern and individual firm’s market share can accrue huge cost savings and better customer service. Such models can guide the firms into building efficient supply chain capabilities and turn in better profits.

Another big opportunity for poultry product marketers is in the form of going ‘direct-to-customer’ model. While most of the firms are reaching out to their consumers through the various distribution channel, a clear opportunity to build a direct network is a possibility considering the fast evolution of delivery companies. Firms can market different poultry products ( processed ones included ) to their customers using technology platforms and leverage these through digital marketing. There are examples galore wherein related products such as Cow’s milk-producing firms are using smart technology to build such milk brands. Therefore, one wonders if a firm can deliver chicken to customers guaranteeing hygiene and great value for money. Expand this idea a little more and one start thinking of creating chicken brands, variants, and exotic poultry meat.

Overall, it’s a great time to be in this business if firms can develop a sharper sense of consumer behavior and understand consumer preferences clearly. Therefore, poultry firms need to build capacity for market insights mining and work on identifying opportunities that can be harnessed through technology and data analytics. A firm’s size does not matter, firm’s intention and ambition to grow bigger does matter a lot. Tune in to marketing analytics to drive growth in your firm and in the poultry industry.

 

 

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The Jingle Jangle Fallacy: Perspectives on Business Teaching

“Jinglejangle fallacies refer to the erroneous assumptions that two different things are the same because they bear the same name (jingle fallacy) or that two identical or almost identical things are different because they are labeled differently (jangle fallacy)”.  (Wikipedia)

Often, I have struggled with this fallacy when I read an article or participate in a discussion that deals with the contrast between teaching and research. I do agree about the difference in terms of skill sets needed to pursue one or the other, however, if one looks closely from an outcome point of view, in a strictly academic sense, they mean the same thing; furthering the cause of learning. The faculty whether he/she is teaching or working on a research project, it is about what can be taught to the students which is already available and what new can be added to the extant body of knowledge. Can you sense the jangle fallacy in action here?

Talking about teaching and research, a dominant thought is about making both useful to the industry. You teach what the industry needs, you research what can solve a problem in an organization. No one can disagree with that! However, the way we approach relevance issue needs a relook. In a simplistic way, let us approach this using the knowledge-skill-attitude chain. Seemingly, knowledge is the starting point and therefore transferring of knowledge that exists and the pursuit of creating new knowledge serve the same cause. Clearly, this whole ‘relevance’ debate is making us drift a bit from our purpose and various perspectives are emerging. Some to the extent that it undermines the conceptual grounding that is so important for even seeking the right knowledge. Consider an excerpt from an email that I received this morning: “Students will find this book useful because, while marketing textbooks by Philip Kotler and others introduce students to a plethora of terms and jargons leaving them wondering as to what to do with them, our book helps students develop solutions, perspectives, and convictions………True marketing wisdom can be obtained only under the tutelage of the master practitioner. Sadly, our students do not get this opportunity. The ‘Best Practices’ are substitutes for the best practitioners of the world. As a student goes through each of the ‘Best Practices’, he feels he is under the apprenticeship of the master practitioner. The ‘Best Practices’ are the most precious jewels of the book.” 

A few months ago, Prof. Nirmalya Kumar wrote about bringing practitioners in the classrooms. Indeed, I too have a bias (being an industry person myself) for getting more and more industry insights into my class and students love those sessions. However, if left at that students will receive the knowledge on things that happen in an organization. As a business faculty, we need to go further; as Prof. Kumar suggests, to bring the nuances of causation and boundary conditions of a marketing phenomenon. The complete chain of ‘what-why-how-why not’ is important for the students, not just what happened in that specific industry context. ( In case method of teaching, that’s what we do – specific to the general with boundary conditions!) In my opinion, this is the way forward to build strong industry-academia connect.

Academic research must unravel mysteries that the industry is grappling with. Absolutely! Good research is always about that. A good marketing journal is not prepared to look at your work if it does not advance the body of literature and is found lacking on a promising story for practitioners. Prof. V.Kumar, the editor of Journal of Marketing advocates the idea of marrying academic rigor and industry relevance. This clearly sets the agenda for research which converges on the basic need of business education; to serve the industry. As Prof.Nirmalya Kumar suggests; “The responsibility of faculty is to debunk widely held myths and simplistic causal inferences through research, reflection, analytical rigor, and data. And, this process helps develop a more nuanced and complex understanding of how the world works”. If that was not true then why do we need to develop multiple perspectives on, for example, customer engagement? It’s not an academic debate but a ‘real’ industry dilemma; whether pre-purchase engagement more important than the post-purchase engagement? Does customer extra role behavior accrue benefits for the firm or it has a dark side to it? Listening to a doctoral student’s seminar this week, I was thinking; if this research was going to add to the existing knowledge on customer engagement. I bet, it would and all of us will benefit; the teachers,  researchers, students and my ex-colleagues at The Times Group.

Internship to PPO conversion: Is there a winning formula?

I teach courses on B2B marketing, research methods, marketing analytics, and sales management. Most of the students walk into my office to seek advice on issues related to their course work. Sometimes, they have different questions as well, like the one I faced a week ago; What should I do to convert my internship into a PPO? I did offer some advice to the student and we closed our conversation.

That set me thinking; it was a great question and a very positive attitude! I started putting together some of my thoughts around what makes an intern a potential employee. What are the key markers of such interns that managers keep looking for? There are no straightforward answers, but, seemingly a set of values, skills, and behaviors does enhance the odds to get a PPO. Some of these are discussed below:

1.      Sincerity: Be sincere in everything that you do as an intern. Take your job very seriously as if you are going to make a big contribution. Let that be palpable to people around you.

2.      Punctuality: ‘First in last out’ is a good idea. Be there on time and extend your work hours for meaningful engagements. Do not just hand around.

3.      Enthusiasm: An intern must display excitement for learning opportunities. Complete each task with that spirit of learning and do not settle for anything less than a great output. Exceed expectations; that’s the keyword here.

4.      Stretch: Managers notice interns who are willing to do more, beyond the set assignments. Look for such opportunities to help/assist your mentor in any of his/her projects. Can I be of some assistance; that’s a great attitude to carry.

5.      Ask (intelligent) questions: Learn the basics on your own. Try and get information from published resources including company/customers websites. Ask questions to communicate that you want a deeper understanding. Take time and prepare your questions and do not expect ready answers. Offer your time if some data crunching or research is required to find answers.

6.      Research Skills: If you did your research method course with full involvement ( you understand what I mean), you are carrying few important skills with you. Use these skills to surprise your mentors. Appear resourceful, gather data and generate insights. Help your mentor to do things with data that he/she wanted to.

7.      Be Professional: Build relationships but respect the distance. Remember, the only way you can create value for yourself is by creating and delivering value for your mentor. You are competing with several other interns from different B-Schools; your winning mantra is to deliver superior value!

One more point: before you report for your internship ask this question to yourself; are you willing to craft a strategy to come back with a PPO? If your answer is yes, go ahead and work on your game plan. Those seven points would serve as guiding posts for you.

Best of Luck!Interns

Flat Sales Organization on Your Mind? Consider Self-leadership Training

Leadership for the sales team is considered to be a strong predictor of sales force effectiveness. Measured in terms of objective performance, relationship performance and customer performance, sales force effectiveness is a key indicator for firm’s long-term financial performance. And, for most of the firms, the responsibility rests with the sales managers who are mandated to lead their teams to perform better, year after year. However, as businesses move into greater complexities in an uncertain environment, there are stronger pieces of evidence emerging from various studies to suggest that salespeople who are more empowered to serve their customers are likely to be better performers.

One of the more powerful ways to empower your sales force is to train them with appropriate cognitive strategies. A set of such strategies is called self-leadership strategies or SLS. There are three dimensions through which these strategies provide enough drive and motivation to salespeople so that they achieve the desired sales outcomes. These dimensions are; (a) Thought self-leadership, (b) Behaviour focused strategies, and, (c) natural rewards strategies. These strategies in a standalone form or through an interactive mechanism heighten the sense of self-efficacy (the belief that one can engage with customers with complete knowledge and skills) in salespeople and they become more confident in dealing with complex sales situation with minimal supervision.

In a 2015 paper which was published in Journal of Business and Industrial Marketing, we presented the evidence to suggest that natural rewards strategies were the key driver of customer orientation in salespeople and they could achieve higher levels of performance by deploying selling skills and emotion regulation mechanism effectively. We followed up on our previous work and tested another model in our next paper (forthcoming in the Journal of Business and Industrial Marketing) in 2016. Here’s what we found; thought self-leadership enhanced the self-efficacy perceptions among salespeople and they could perform at higher levels (relative to salespeople with lower thought self-leadership) by effectively using their selling skills and adaptive selling behaviors. Clearly, in both the studies which used sales force as a sample, the relationship between SLS and performance was significantly positive and this linkage was mediated by skills and behaviors deployed during the planning and execution of sales calls.

One big reason that a company should invest in SLS training for its sales force is about enhanced effectiveness. The bigger and more important reason to consider SLS training is to build a sales team which delivers sustainable and purposeful growth in sales numbers, independent of supervisory influences. Another advantage is in the form of reduced supervision cost and therefore, as your sales force moves into a higher plane of self-leadership, you can have a sales organization with lesser layers.

More speed to your sales organization!

Managing the Residual Impact of Marketing

Marketing is about meeting customer needs profitably by engaging in exchange transactions. In a way, marketing can be viewed as a sales outreach by organizations to various members of the consumption community or customer segments and therefore it extends to the larger society. The exchange which occurs through the marketing process impacts the transacting parties primarily but it does leave a significant residual impact on society with  ethical ramifications. This is true for both settings; product or services; with co-creation of customer value at the core of the marketing process. Essentially, every transaction has a broader impact on economic indicators such as GDP and a narrow and focused impact on company’s revenues. However, the very nature of exchange  is social and therefore, as several marketing scholars argue, its outcome must be evaluated in terms of ‘fairness’ and rightness on all parties involved in the marketing exchange. Marketers have been accused of being not sensitive enough towards these measures of ‘fairness’ and or ‘rightness’ for evaluating the impact of marketing on the society. This lack of ‘responsibility’ virtue has been discussed, debated on platforms across the domains and various stakeholders of the business discipline, including the marketing theorists.

Clearly, responsible marketing is all about being sensitive and mindful about ethical consideration in marketing decisions. Recently, the momentum towards creating wider acceptability to this idea found a new push as compelling arguments appeared in leading marketing journals on mindful consumption, public policy implications of marketing decisions. There has been much talk on this and too little action to support the notion that the idea has gained some traction. Very recently, an important development was reported in newspapers. Reading that report, one does get a sense that responsible marketing as an idea is taking a good shape. Read on…

Two years ago, Pepsico CEO Indira Nooyi was visiting India and during her meetings with Indian government officials, a concern was raised over high sugar content in the drinks marketed by Pepsico. Though it took two years to respond to that concern, the strength of response compensates for that. Here’s an excerpt from the ET report that appeared on 18th October.

” PepsiCo will reduce sugar content in its juices and carbonated drinks in India by 2025 as part of a global pledge announced by Chief Executive Indra Nooyi on Monday amid a backlash against such products over an obesity epidemic and illnesses such as diabetes. Several countries are also considering a sugar tax to reduce consumption of sugary drinks.As part of the initiative, the company will introduce smaller sizes and bring zero-calorie drinks to India with close to two-thirds of the company’s beverages having 100 calories or less per 12-ounce serving.“We have started the sugar reduction journey across colas, flavors, and juices. We will be replacing sugar with natural and artificial sweeteners across our portfolio, and will also reduce portion sizes of beverages in bottles and cans,“ PepsiCo India Chairman D Shivakumar told ET. Pepsi began selling colas in 150-ml cans, the smallest in the domestic market, in February. “These are now being extended to other brands such as 7Up, Mountain Dew, Diet Pepsi and Mirinda. This is about portion control,“ Shivakumar said. “For the next 10 years, we will focus on products, planet, and people.“pepsi

Managing Change Through Effective Self-Leadership

SLS

While the rapid changes are the reality of all the domains of the business world, in no other function it is more palpable than in Sales. The sales force, therefore, is always charged with not only the responsibilities for current growth but also with the mapping out of future upcoming trends in business. Logically, the onus squarely lies with the sales leaders who find themselves engaged in a pitched battle at three levels; (a) external environment – customers, competitors, regulations etc, (b) internal environment- culture, team, cross functional tensions, and (c) the self. The ordering of levels are based on my own experience and as that of several sales leaders, I have worked with in my 25-year long sales career. Self comes last and is often neglected! Remember, leadership is about managing energy, first in yourself and then in others.

Therefore, if you want to provide the leadership that can effectively respond to internal and external changes, look for your own vitality quotient – VQ. Your VQ is the degree to which you tend to mobilize your vital functions (your Power to-live) in order to ensure the accomplishment of your Project-to-live. This degree is measured in terms of your intensity of Will-to-live. Leaders should be able to self-assess themselves by activating system 2 thinking which is characterised by a great deal of deployment of effort and attention. Self-leadership as a toolkit can be employed by sales leaders to help them strengthen their VQ and make them more effective and brave while dealing with change. Self-observation, Self-goal setting, Self-reward, Self-punishment, Self-cueing (positive and negative cues) are few behaviour focused strategies that can be deployed to achieve a higher level of self-awareness and control. The other set of strategies that helps leaders in sharpening their self-influencing abilities are self-talk and mental imageries. Lastly, focusing on the enjoyable/rewarding aspects of your leadership position can result in a stronger feeling of competence, self-control and a strong sense of purpose.

Leaders who are self-lead, are “Engaged” professionals  carrying leadership point of view throughout their routine and strategic functioning. They could be facing challenges at various levels: company, industry, government or society, their response to such change situations clearly reflect the leadership point of view and their answers to the following question is always a resounding YES!

Can you see what needs to be done?

Do you understand all the underlying forces at play?

Do you have the courage to initiate action?

 

Audience Engagement Score: Towards a Sustainable Metric

 

With the emergenceEngaged of technology aided decision making in marketing, information on your customers has taken the centre stage as a key input for effective customer engagement. The customers are interacting with the marketers on multiple platforms – offline as well as online and these interactions leave a trail of data that marketers are using to understand, decode and predict consumer’s buying behaviour. The customers, therefore,are also exposed to messages transmitted through different media platforms and data on these interactions are held with the customers in a collective manner and data on individual platforms with respective media entities. For example, a marketer knows that a customer is interacting with newspapers, television, social media and other digital media during the course of her daily routine, and he also has data on such interactions on digital medium. What the marketer does not know clearly is what the medium mix is in a customer’s daily life? In India, where the print and television are still the most preferred medium and digital is making a fast inroad into daily lives of consumers, this information on customer interaction with different mediums, both in terms of gross engagement and proportioned engagement, will be critical for data-based marketing decisions. The imperatives are in terms of revisiting the audience measurement traditions – readership survey for newspapers, TAM for TV audience and different web-based analytics tools to measure visits and actions. Few points are presented here with respect to newspaper audience measurement :
Shift the Focus: The medium is no longer the focal point. The customer is. Therefore, the unit of analysis has to be the customer and her consumption/behaviour as she interacts with marketers on various medium. It’s like knowing about the customer’s daily life in a way that is most useful for marketers – what, why, when and where? All in a snapshot.
New Metrics: It’s no longer enough to know which newspaper brand/TV program is read/watched by what kind of readers/viewers in demographic terms. If only we shift the focus on the consumer of the medium, we can then find out more about the consumer in depth- who is your customer and why you should be interested in her! What makes her a great customer?
Audience Engagement Score: Its time that we moved to measuring audience engagement that provides marketer the data on how a consumer is dividing its engagement across several media that he or she consumes. A robust sample design and a survey can throw up such aggregate scores for each newspaper’s readers. Higher readership bases with low engagement scores are less meaningful as compared to relatively lower readership base with significantly higher engagement scores.
Shift the Goal Post : By adopting such metrics, newspaper marketers can focus on engagement building with its readers and not focus on ramping up readership alone. Their advertisers obviously are interested in highly engaged audience only. Therefore, the goal post in marker leadership would shift from “ highest number of readers” to “ largest number of engaged readers”