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January 15, 2007 Leave a Comment

Book Review – Treasure Hunt

I think that this is a very important business book and I recommend that my clients read it – and to take its findings to heart.  The new consumer enjoys mixing upscale with downscale products- to create their own customized lifestyle, satisfy their ever changing “value calculus,” and meet their emotional needs.

Michael Silverstein is the co-author of 2005's best-seller “Trading Up,” which showed us why consumers want new luxury goods – and find them with Callaway Golf Clubs; shopping at Victoria's Secret,;eating at Panera Bread and drinking Belvedere Vodka.  That certainly is an appealing prospect for any manufacturer or retail who has visions of higher margins and increased spending dancing in the head.

In Treasure Hunt, we learn that (most of) these same consumers “trade down” because:

“I'm a smart shopper – and highly skilled at it.”

“There's no material difference in the products”

“My Mom taught me how to be a smart shopper.”

“I can go without it.”

We have all seen these consumers (and I am becoming one of them) at Target, Costco, Lowe's and Dollar General.  The majority are female.  And it is no longer a paradox to see new BMWs or Lexus automobiles parked in from of a Wal-Mart or Target store.  People enjoy “treasure hunting” for bargains not so much because they “have to” but rather because the can and “want to.”

This is a valuable lesson to learn – the “Bifurcating Market” – where you can reach high and search low at the same time.  Just be sure to avoid the path that leads to the boring and deadly middle ground (remember Sears, Montgomery-Ward and most department stores.)

I have worked for over 30 years in the Music Products industry.  Many of my clients are in this industry.  Most bemoan the fact that retail prices are dropping and margins are shrinking.  They are quick to place blame (cheap imported products, big-box retailers, Internet retailers who don't have to charge sales tax, etc.)  But I think that they miss the point – many consumers will happily “treasure hunt” for bargains – as long as it is combined with a satisfying shopping experience – and use some of these savings to purchase the “upscale” products that they desire.

Increasingly, it is the “shopping experience” that is driving the marketplace.  “Cheap” no longer connotes “bad.”  Now, “boring and bland” are “bad.”  To succeed in today's market, it is wise to consider the words of legendary retailer Leslie Wexner:

“People are looking for emotional highs.  Winning companies invent new products that capture the consumer's imagination.”

Ignore the reality of the bifurcated market at your peril – and many companies continue to ignore it.  Instead, learn how to deliver trading-down goods at unbelievable prices or create trading-up goods with genuine differences that can – and do – command a premium price.

I like the format of this book.  It follows actual consumers to their homes and along on shopping trips to discover the reasons and motivations for their behavior.  It is fascinating.  Real people, real stories.  And, it goes a long way towards demolishing our stereotypical assumptions of the “middle-class” consumer.  Regardless of demographics or level of income, each consumer has their own story to tell.  It is unfortunate that too many retailers fail to tell their own story – and attract this new consumer.

One of the best features of this book is the website that supports it – www.bcg.com/treasurehunt.  Click on the link and you will see the real people interviewed in the book and learn more about the research that went into compiling the statistics in the book.  Increasingly, publishers and authors are creating exciting websites to support the traditional printed product.  I like this trend – it is exciting!  I hope that you can learn how to make your own store or products exciting – there is a rich pay-off when your learn how to tap into the “bifurcating” market.

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Filed Under: Business Communications, Main Page, Marketing, Reviews
January 15, 2007 Leave a Comment

Treasure Hunt.jpg

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Filed Under: Business Communications, Photos
January 15, 2007 Leave a Comment

Treasure Hunt – Inside the Mind of the New Consumer

I posted a new photo to Photos.

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January 14, 2007 Leave a Comment

Communication Overload

Well, I’ve had a FUN weekend – NOT!  I had a major computer crash (my data was all backed up) and I have had to restore all of my programs.  This gave me lots of time to catch up on some reading while waiting for the programs to load.

OK – back to the subject of this post – How do we cope with the vast amount of information that comes our way on a regular basis?

The December 2006 issue of The Motivational Manager has an interesting article on this subject.  They cite a survey of senior executives and managers conducted by NFI Research that found:

80% said that they receive too much communication from both internal and external sources

33% said that they receive significantly too much communication

As with any survey there are several caveats.  Managers and executives at mid-sized companies were the most impacted – 46% – by over-communication.  Which, I suppose makes sense.  If you are a large corporation, supposedly you have “gate-keepers” to filter most of the communication directed to you.

The most telling point of the survey was a comment from one respondent:

“It’s not a question of how many e-mails, voice mails, memos, and such, or even the frequency – it’s the inability of the communicator to get to the point.  Over-communication is the difference between what I need to know and what I have to filter.”

Amen to that!  Bring back the “good old days” of the Television series Dragnet when Sgt. Friday said, “Just the facts, Ma’am.”

Here are some salient points to consider when writing your next email (I found this in the same issue of The Motivational Manager  – actually there are adapted from an article that is on the Microsoft Small Business Center website – click here for the article)

1) In your e-mail, get quickly to the point – this starts with a meaningful Subject Line.

2) Try to limit the body of your e-mail so that the message will appear (in its entirety) on one screen

3) Close your email by succinctly stating what needs to happen next

Great advice!  And not just for email – this pertains to all forms of communication (marketing messages, presentations, sales calls, even talking with friends and clients.)

No one has time to “filter out” the excess in a message.  So stop sending “CYA” e-mails!  Don’t include your entire address book in the CC portion of your e-mail.  And, if the issue is really important, put down your mouse and go talk to the people involved “face-to-face” – if you remember how to do that!

And now — back to my software installation.  Thank you for listening!

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Filed Under: Business Communications, Business Practices, Communications, Main Page Tagged: , , ,
January 12, 2007 Leave a Comment

A Great Business Resource that You Can Use

While reading one of my favorite monthly newsletters (The Motivational Manager) today, I learned about a fabulous and free business resource that I want to share with you:

It is the “Free Management Library” website – click here to enter!  And it is a treasure trove of articles, resource materials, websites, etc. that members and experts have contributed.  The website has been around for 10 years – and from my initial exploration of it, it appears to be continuously improving by adding content and categorization.

As the title says – All content on the website is absolutely free – for you to access.  If you want to reprint or re-purpose the content, they offer clear steps to take to obtain permission from the copyright holder of the individual content.

You could think of this as a sort of “wikipedia” for business and management content since it is created strictly through member contributions (of content) and it relies upon its members to update and report errors, broken links, etc.

Lately, I have been thinking about “competitive advantage”  – what is my own competitive advantage (as a consultant, trainer and speaker) and helping my clients to define their competitive advantage.  So, I was pleased to see this clear, concise “About Us” statement:

“The library provides easy-to-access, clutter-free, comprehensive resources regarding the leadership and management of yourself, other individuals, groups and organizations…”

SOLD!

I get it!  I know exactly what this resource offers (to me) right from this direct statement of purpose.

Why would I want to use this website tool when I already have invested a small fortune in resource books?  Because, I am not always near my personal (physical) library – I do travel quite a bit.  And, the trick is to be able to actually FIND the resource when you actually need it (while writing a blog, thinking of a topic to write about, citing a source) – or just plain relaxation or inspiration!

The key to accessibility is organization.  The Free Management Library Home Page is very clearly organized – and accessible.  Here are a few topics for you to link to in order to check it out yourself:

Interviewing

Sales

Leadership

I've added this site to “My Favorites.”  I hope that you can gain some benefit from my recommendation.  Please share your thoughts – or your favorites – with our readers.  Or… just drop me an email – danny@thecompanyrocks.com to let me know what is working / or not for you!

 

 

 

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Filed Under: Associations, Business Communications, Business Practices, Main Page, Marketing, Public Speaking, Small Business
January 10, 2007 Leave a Comment

Some Meetings are Better than Others – Why?

The music products industry will gather next week in Anaheim, CA for the NAMM Show.  Over 80,000 members will attend this “Trade Only” convention.  Lots of meetings will take place.  Many of them casual; quite a few structured.  How many will be effective? How many will be a waste of time – or a missed opportunity? 

What can you do ahead of time to be better prepared?  What lessons can you learn at trade shows that will help you to hold more effective meetings when you return to your store or your office?

In general, the meetings you will have at a trade show or at an “off-site” retreat or with a client are much more effective than your normal staff or team meetings.  And the reasons for that are rather straight-forward:

1) You put more time and effort into preparing for the meeting – Who will attend?  What materials do we need to have on hand?  Who is preparing the agenda – and what is the purpose of this meeting?

2) You are more focused during the actual meeting – Your energy level is much higher.  You are actively listening to what your client is saying (and thinking.)  Since you only have the key people attending this meeting, you make sure that everyone is involved.

3) Your meeting ends on-time and everyone involved understands what the next step will be – and who is responsible for preparing for it.

4) You promptly follow-up will everyone who attended the meeting – AND those “stake holders” who have an interest in the results of your meeting.

I hope that this four-step process can serve as a blueprint for holding successful meetings – not just at the NAMM Show or any other “important meeting.”  Rather, it should guide you and your staff to put the same effort into planning, facilitating and following-up on EVERY meeting that your company holds throughout the year.

Here's a great resource tool that I recommend – The Meeting Wizard.  Their website is terrific!  Lots of good practical advice.  Many of the services are free – or at a reasonable price.  Easy to navigate.  Excellent selection of training materials – books, audio and video – available for purchase.  Check it out!

Actually, I got the idea for today's post from this website.  Most of us come back from an “off-site” event inspired and filled with purpose.  Then we quickly fall back into the drudgery of “office work.”  Well, today “office work” means meetings – that is how we work – as part of a team.  And the hours that we spend / waste in meetings continues to increase each year / week / day!

All effective meetings are planned!  They have a very clear focus and purpose.  “On-site” as well as “off-site!”

Be selective when inviting people to attend each meeting – only invite the people who truly need to be there.  Use e-mail to inform the other members of your team about what was discussed or decided.

Never end a meeting without everyone knowing what the next step will be – and who needs to do it – and when it needs to be done by.

If  you are planning to attend the NAMM Show next week, please drop by to see me at the IDEA CENTER – Booth #5501 in Hall B.  I'd like to talk with you and listen to  some of your ideas

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Filed Under: Associations, Business Communications, Business Practices, Consulting, Main Page
January 9, 2007 Leave a Comment

And All That Jazz

I admit it.  I get a thrill whenever I see the names of people or organizations that I know being featured in national magazines or newspapers.  That was the case this past Sunday when The New York Times did a major feature article on the International Association for Jazz Education Conference (IAJE) being held in New York this week. 

Here is a link to the article by Nate Chinen.  It is a very interesting story.  I recommend that you set aside some time to read it if you are interested in jazz or music education.

There will be over 8,000 jazz enthusiasts, students, teachers and commercial members attending the convention this week in New York!

Mr. Chinen makes the point in his article that while the nightclub scene for jazz in the USA is anemic, residents of many college towns have a great opportunity to listen to professional-caliber jazz performances on campus on a regular basis.  I shudder when I think of how many jazz clubs have shut their doors here in Los Angeles.  The same is true in Chicago and most other major cities.

But jazz is alive and well in the classroom – and at the IAJE Convention this week!  Some of the best skilled performers are not making their living playing in clubs.  Rather, they are passing on their knowledge and nurturing talent in the classroom as teachers and professors.  And building up a larger audience of people who enjoy listening to and playing jazz music. 

I doubt that the club scene will ever come back to where it was in the '50s – and don't hold your breath waiting for a major record label to start promoting new jazz stars.  But who cares?  Not when you can get a regular jazz fix at a local college campus and listen and purchase great jazz recordings from independent labels (many started and owned by the players themselves!)

I strongly support professional associations.  If you want to have a career and not just work for a living you must become active in one or more professional associations.  Next week, I will be working for clients at the largest music products association convention – the NAMM Show in Anaheim, CA.  The IAJE Convention is a good example of a professional association for performers, teachers, commercial members and jazz enthusiasts.  You can't beat the energy rush and good fellowship that you get from actually attending a convention.  Therefore, I was really intrigued, by the closing paragraph of Mr. Chinen's article in the New York Times:

“In that sense, the International Association for Jazz Education conference might be understood not as a collision of worlds but as a gathering of the tribes.  And the most important thing that happens there isn't a clinic or show or ceremony, or a negotiation on the expo floor.  It's what happens after, when the various jazz constituencies pack up their stuff and head home.”

 That's a great insight. And a challenge for all of us.  To take the energy and ideas and skills that we acquire at our conventions and start to implement – and share – them with our colleagues back home in our communities.  Jazz education seems to be doing that quite nicely.  Thank you very much!

 

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Filed Under: Advocacy, Associations, Business Communications, Main Page
January 9, 2007 Leave a Comment

Bifurcate This!

“In the low-value segment, consumers buy products for a purely functional use and don't care or need the company's technical expertise.”

 – Michael J. Silverstein, in “Treasure Hunt” Inside the Mind of the New Consumer

Wow!  That is a very powerful – and scary – statement (backed up by extensive research) by Michael J. Silverstein the author of “Treasure Hunt.”  He is a Senior Vice President of The Boston Consulting Group and the co-author of the 2005 business book best-seller, “Trading Up.” – (Why Consumers Want New Luxury Goods – and How Companies Create Them.)

So… while in 2005, “Trading Up” gave great hope to many manufacturers and retailers that many “middle class” consumers were will to pay “just a little bit more” for some premium brands that appeal to the mass-market consumer (think Panera Bread in Fast Casual Food or Belvedere Vodka – in a category of liquor that by law must be flavorless! – the middle class consumer had to actually find a way to pay for these small luxuries!!!

Enter “Treasure Hunt” and the concept of “bifurcation!”  To bifurcate is to branch, or fork, into two channels or branches.  So in order to pay for the small luxuries of Trading Up, another channel – Trading Down – actually enables them to pay for these prized luxury items – hence the “Treasure Hunt!”

Actually, we (I consider myself solidly middle class) do both at the same time – we simultaneously Trade Up and Trade Down – we Treasure Hunt!  We simply avoid the boring, traditional, tired companies (both retail and manufacturer) that dominated the marketplace for so many years – can you say General Motors, Sears, etc.  These dinosaur companies reside in the “deadly middle” of the marketplace – aka “The Black Hole.”

I will do a complete book review of “Treasure Hunt” in the next few days.  It is a vitally important business book – and it is supported by one of the best websites I have ever seen for a book!

I wanted to re-read it in preparation for my work next week at the NAMM Show in Anaheim, CA.  I will be meeting with current and prospective clients there and I need to advise them that there is plenty of potential for growing their business if they can embrace the concepts detailed in “Treasure Hunt.”  It is not just a race to the bottom – in margins and selling prices!

But first they will have to learn how to bifurcate their businesses!  Trade Up!  Trade Down! – either way can and will work (with the right strategy) but… avoid the “black hole of the middle” if you want to stay in business to attend the NAMM Show next year!

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Filed Under: Associations, Business Communications, Consulting, Main Page, Marketing, Small Business
January 5, 2007 Leave a Comment

Collecting Intellectual Income

“Never feel guilty about reading, it's what you do to do your job.”

– William Safire

This quote appears on the very last page of Peggy's Noonan classic book, “On Speaking Well.”  Mr. Safire was giving this advice to a young writer.  Ms. Noonan goes on to say that “reading is the collecting of intellectual income; writing is the spending of it.  You need to read to write, you need to take in other people's words and thoughts and images.”

Regardless of your political views (both Safire and Noonan were speechwriters for Republican Presidents) is is hard to top the expert advice that Safire and Noonan offer.  They are professional writers and speakers and they continue to be students of writing and speaking.  Both have written for others (politicians, business leaders and celebrities) as well as for themselves.  They are keen observers of the political scene but they excel at studying and explaining how choosing the right word for the right occasion helps to communicate a powerful message.

After listening to the eulogies at President Ford's memorials I picked “On Speaking Well” out of my bookcase.  I wanted to re-read Peggy Noonan's thoughts about writing for others.  I had my own opinions about which politician relied too heavily on a speechwriter and which may have written their own eulogy for President Ford.  (My opinion is that Vice President Cheney wrote his own  – it was the the most sincere speech that I ever heard him deliver!)

I ended up re-reading the book from cover-to-cover – what a great investment!  I certainly collected so “intellectual income” from this book which I will be spending soon.  I am not writing a full book review of “On Speaking Well,” but I give it my full recommendation as a book that must be in your bookcase if you are serious about improving your communications skills.  (I was so charged up with my re-reading that I am now re-reading Jack Valenti's book , “Speak Up With Confidence.”)

President Reagan was labeled as “The Great Communicator” and Peggy Noonan was one of his speechwriters.  Many critics panned Reagan as a simple-minded politician who never-the-less was able to win over audiences and leave behind many memorable phrases.  The critics said that it was a case of style over substance.  Ms. Noonan – as you might suspect – argues aggressively that this is not the case.  And she is very persuasive in making it!  She argues that Reagan used simple language to communicate big ideas:

“The language of love is simple because love is big.  And big things are best said, are almost always said, in small words.”

You will gain a new appreciation for using simple words to express big things by reading “On Speaking Well.”  For me, the highlight of the book is Peggy Noonan's insightful commentary of some of the best-known speeches of the past 100 years.  Of course there is the usual John F. Kennedy, Winston Churchill, Ronald Reagan.  But also the Earl Spencer's eulogy for his sister Princess Diana.  And… Hyman Roth's speech to Michael Corleone in The Godfather II – What a bonus!

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January 3, 2007 Leave a Comment

The Right Words

“Tell me a fact and I'll learn.  Tell me a truth and I'll believe.  But tell me a story and it will live in my heart forever.”

– Indian Proverb

I found this lovely proverb in the Foreword to “The Right Words at the Right Time” – a marvelous compilation of stories by Marlo Thomas and over 100 of her friends and associates.  This wonderful book was published in 2002 by Atria (Simon & Schuster, Inc.) and I frequently offer it as a gift – especially to friends who are grieving or at a difficult point in their lives or careers.

It is always difficult to offer advice to someone – they do not welcome it, do not think that they need it or they ignore it!

I find that it is even more difficult to try to comfort someone when they are grieving – how can I possibly know how they are feeling (they must think???)

But … to tell a story – the right story at the right time – now that is a golden gift that almost everyone will receive – and remember!

This morning, I picked up my copy of “The Right Words at the Right Time” because I was still thinking about the wonderful memorial service yesterday honoring the late President Gerald R. Ford.  I thought that Tom Brokow's eulogy was magnificent – just the right touch – and filled with stories – which helped to make it memorable.  I wanted to read his story in Marlo Thomas' compilation (along with stories from Betty Ford and many others.) 

The other eulogies at yesterday's service were fair (in my opinion) but far from memorable.  Giving a eulogy is one of the most difficult speeches that anyone will ever have to make.  Keeping your own emotions in check while trying to pay tribute and offer comfort to the family and friends of the deceased will challenge the skills of even the most gifted orator.  That is why the most successful speakers are the best story tellers.  In telling a story (like singing a song or playing a musical instrument) you gain several advantages:

1) The story (or song) has a built-in emotional factor – it sets a mood or a tone.

2) In telling it (or singing or playing it) you concentrate on the story (or song) and not on your own emotions.  The audience does not distract you.

3) The story (or song) has a built-in beginning, middle and end – so you remain focused and you make a point that your audience will likely remember.

So, if you want to be an effective speaker (like Tom Brokow) collect and cultivate stores.  Then practice telling them – to make them your own.  This is the single, best piece of advice that I can offer anyone who wants to improve the communications skills – or to deliver a eulogy.  Learn to tell stories.  Pick the story with the right words and tell it (well) at the right time.

Music has the same power – the right piece played (well) at the right time.  Denyce Graves' powerful performance of “The Lord's Prayer” at President Ford's memorial service is the perfect example of the power of music to lift our spirits and transport us to another place.  To offer comfort and solace and to give us hope and strength to move forward.

If you would like a copy of all of the musical selections, performers, verses and officials at President Ford's service, click here on this link.

Now, I am going to go back and read a few more stories.  Finding the right words at the right time will help me to better focus on what I want to accomplish this year.

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Filed Under: Business Communications, Main Page, Quotations
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