Peter Sealey, professor at The Peter F. Drucker Graduate School of Management at the Claremont Graduate University, and former Chief Marketing Officer of Coca-Cola, thinks that success lies in marketers’ abilities to simplify their customers’ lives.
B&S: Why so much fragmentation?
Peter Sealey: One reason is the internal marketing organization. There’s a built-in bias at the marketing department level to fragment, line-extend, and introduce new products. It gives them something to do. It means they have brand managers, assistant brand managers, and advertisers.
I use Crest as an example in my lectures. Crest toothpaste offers 27 different flavor, additive, and packaging variations. When Crest came out, it had one flavor, two package sizes.
The new positioning for Crest is that it’s not just a toothpaste. It’s a healthy, beautiful smile for life, whether it’s from dental floss, whitening strips, a battery-powered toothbrush, or toothpaste. The smart marketers are positioning their brand in a more complete, wider context.
How can smaller organizations, who don’t have the deep pockets of Procter & Gamble, respond quickly to trends in the marketplace?
Most importantly, observe consumers in the act of actually using your product. Then hold a focus group with your product and customers. How do they interface with the product? Are they happy? You can do that for almost nothing. There’s not a marketer in this country who can’t afford a couple of group sessions. Finally, study people who are not your customers. Why are they not users of your product or service?
Can your concepts of simplicity marketing be adapted to nonprofits and service organizations?
The nonprofit sector has the same challenges as the profit sector. The old thought was these people live in a hazy, “touchy feely” world, and don’t have the discipline of budgets and balance sheets. In reality, they need as much discipline as the profit sector.
Volunteer work and charitable giving is huge in this country—competition exists within nonprofits. You need to position your brand. What motivates people to volunteer? And why would they choose you out of the myriad of options?
Given the speed of change today, how can a small organization plan in the way you suggest in your book?
Micro-trends—movements that are low key but important—pop up everywhere. Right now, there’s a micro-trend that shuns bottled water. It has been the star of the beverage category for the past 10 years, but people now say that bottled water is no better, maybe worse than most tap water in the United States.
I doubt that the major bottled water companies have spotted this micro-trend yet. It’s key for small companies to see these trends and to adapt. Your antennae need to be up and you need to be very sensitive. Hands-on marketing, viral marketing, is the way to go.
So small, speedy, and agile are the key traits of success today?
Absolutely. In the old days, you could simply pound consumers over the head with television advertising. The guy with the biggest budget and a decent brain won. That’s not the case anymore.
The big companies are having trouble adapting. Being small is a real advantage today; the world is going in their direction.
