Demand Generation - the theory and practise. #1 Gaining acceptance

Over the last few months, we have been immersing ourselves in the concept and application of B2B demand generation.

For those unfamiliar with the term, Demand Generation is a marketing process that nurtures and engages prospects appropriately at each stage of the buying cycle.

We have a number of client projects in progress at this time and are closely monitoring the challenges and successes that we encounter. This is in the interests of continuous improvement, practical insight and, of course, great results for our clients.

The principle of demand generation is the application of multi-touch marketing communications that respect, and are tailored to, where the prospect is in the buying process. In simple terms, it is holding back from trying to close the sale on first contact - because the attempt will fail unless the buyer is ready to buy.

As ever, matching the theory to the practice is the hardest part and the first obstacle normally occurs at the acceptance stage.

The theory says that we must stop the salesperson going in too soon. Instead, we must align the nature of the conversation with where the prospect is in the buying cycle.

When implementing a programme of this nature, early challenges arise when you have a sales-force that needs feeding. A proposal to slow the flow of leads in the interests of a higher rate of sales conversion further down the line is rarely popular with a team that likes to show it is active, if not always successful.

This is closely related to persuading telemarketers not to go straight for the appointment when all of the instincts and training are directed towards this end.

The demand generation process requires nothing short of a wholesale change in the sales process and sales culture, which is a big ask of any organisation. We, therefore, address this with a three-tier approach to gaining the support and engagement of Sales.

Firstly, we enter into open and shared communication with the sales teams to explain the approach.

Secondly, we run a dual system in which we work the new approach on a specific set of data and allow traditional methods to run on the remainder. This retains the continuity of supply and keeps the sales team on board during the transition.

Thirdly, we persuade senior management to adjust incentives relating to the demand generation exercise to reflect nurturing, not just closures.

Demand Generation requires discipline and a whole-hearted commitment to the methodology by us and the client. A breakdown in any area of the process undermines the programme - and, more importantly, the results.

In future posts, we will take a look at some of the specific 'in-life' challenges that we encounter, such as generating relevant content and managing and monitoring the process without a sophisticated CRM system.

Stay tuned!

Time to decide

So, after what seems like months of campaigning it is now decision time.

The Conservatives have the clearest and most favourable policies for business and if my vote was to be cast on that alone, it would be an easy choice.

But, of course, it's not. A few pounds off the tax bill and perhaps a little less red-tape pales into insignificance when placed alongside the broader impact of a possible return to recession.

The central issue is how to deal with the structural debt. Labour says we must continue to invest to ensure a return to growth. The Conservatives say we need to put the breaks on and take the pain now. If your business was in a similar position, what would you do? The answer should guide your vote.

Throughout the campaign, Brown has been the strongest performer when it comes to the numbers. Close your eyes and listen to the content and it is evident that Gordon Brown wins hands down on substance. He knows that some of the promises made by the other parties won't work and has been straight when saying that NI must go up to allow spending to be slowly, not rapidly, constrained.

Cameron, a polished performer backed by a successful and well funded marketing campaign, promises the change that many feel is overdue. The PR machine has worked well and he has campaigned tirelessly.

The promised change though is a risk. Cameron conceded in the Marr interview on Sunday that only 20% of the necessary expenditure cuts have been highlighted, blaming the Government for not detailing its spending plans. Are we being softened up for broken election pledges already? - it feels like it.

The argument that the Tories don't know what they might inherit is ridiculous. The Institute of Fiscal studies has been able to produce a detailed analysis of the economy for all to see.

I worry too why Cameron won't be drawn on who he intends to appoint as Chancellor - no doubt fearing a backlash against Osborne. Surely, as his potential employer, we have a right to know what the team will be.

We then come to The Lib Dems who's star has risen too early. Their policies are ill-prepared and weren't written with Government in mind. Their time will come though. This election has shown that Clegg and his team are the party of the generation that is now under 30. They will have to be taken more seriously next time and are still likely to have a significant influence on this outcome.

So, where does that leave us. The Lib Dem balloon will be pricked if not popped and they will secure around 25% of the vote. The electorate will give Labour a bloody nose in the marginals leading to the loss of many key seats.

If all this happens, we will be looking at a narrow Tory victory and I suspect Cameron will try to lead a minority Government.

I find myself, like many others, torn between the Tory promise of a new impetus and Labour's dour pragmatism on a measured return to growth.

When I enter the ballot box tomorrow, my pencil will hover between red and blue. A hung parliament might have attractions for those that genuinely can't decide, but it would be a recipe for stalled policy making at a time when we need action.

Time is running out and it is now our duty to decide. I'm veering towards playing it safe.

Real Business #4 - Durlings

Real Business is a series of posts that analyses the marketing opportunities and challenges of real businesses in the South East. The articles are also appearing in The Courier.

Launching a business focusing on commercial property as the UK toppled into recession might seem like a rash decision but, 18 months on, Durlings sale boards are a familiar sight around West Kent and East Sussex.

Rupert Farrant launched Durlings in May 2008 after a career in property. He wanted to focus on commercial property and he wanted to run his own business.

“While the market was slow when we set up, low prices did mean that there were people out there buying commercial property for that reason – possibly for the first time, he said.

“We offer a one-stop-shop – dealing with everything from rent reviews to managing refurbishments and surveys, as well as both selling and letting commercial property.”

Today, around 75% of Durlings’ work comes from Tunbridge Wells, although the team has worked on projects as far afield as Portsmouth and Arundel.

“Tunbridge Wells is a great place to be located, with a strong base of professionals from which to gain referrals, ” said Mr Farrant. “It is also ideally based for London and offers an interesting mix of industrial, retail and leisure properties.”

When the firm started out, Rupert ran the business from a shop on Mount Pleasant, near the station. However, it is now based in offices in Church Road.

“It was great to have some initial exposure for the firm,” said Mr Farrant. “However, we realised that we didn’t get people just calling in, so we moved to Church Road, which has the added bonus of parking.”

Today, Durlings estimates that around 75 to 80% of its enquiries come via the Internet.

“We have kept our website simple and easy to navigate, while we also make sure we have listings on all the major commercial property sites, ” said Mr Farrant. “We also run an email alert – which means that properties are sent round to all our clients as soon as they are available . Our boards are also still an essential way of marketing .”

Mr Farrant said that the current movement in the commercial property market is due to a number of factors – leases coming to an end; people setting up a new business; or established business owners maybe taking the opportunity of current lower prices to buy property. What is currently missing from the market are investors – buying or selling – and developers.

Mr Farrant has plans to expand the business in the future – but wants to continue focusing on Tunbridge Wells.

“Bhav has been working and training with us and it’s worked really well – so I’d like to bring more graduate trainees into the business,” he said. “However, finding good graduates is a challenge – as less younger people have been attracted to the business during the recession.”

For more information, visit: http://www.durlings.co.uk/

Challenges facing Durlings:

* Encouraging investors and developers back into the marketplace.
* Growing the business as the UK pulls itself out of recession.
* Making full use of the Internet as a means of advertising properties.
* Finding good graduate trainees to build their career with Durlings.


The Marketing Eye says:

While the absence of walk-in trade wasn't sufficient to justify a High Street presence, it would have been contributing to the general awareness of the brand, so other tactics are now needed to keep the profile high.

The base of professionals in Tunbridge Wells is a rich vein of business opportunity and networking should be high on Rupert's agenda. Given the broad array of reasons why businesses move, the nature of networking should be very wide - from BNI where he will meet smaller businesses, to the Chamber of Commerce and Royal Tunbridge Wells Lunch Club where larger businesses and professionals can be met.

The property boards are an important form of marketing too. The simple and clean identity that Rupert has chosen is easily memorable and will be making the boards stand out.

The fact that so many enquiries come from the internet is a reflection of how the market now operates. Rupert is doing all of the right things to keep the visibility of his website high.

A highly visible and attractive website is appealing, not only to purchasers, but to vendors and landlords, which will ensure a continuous supply of stock - the lifeblood of any agency. The website is easily found in the search engines, which means it should be possible to reduce the reliance on the property portals in future.

Marketing can help with recruitment. Becoming active on Twitter, running a Facebook page and writing a blog are all activities that will make Durlings look attractive to younger prospective employees.

With thanks to freelance journalist, Angela Ward, who is interviewing the businesses featured in these posts.

Are Tories taking the high ground in battle for business votes?

At long last, I've had a reply from the Conservatives - a comprehensive and persuasive reply at that. The question is, do we believe there are £6bn of efficiency savings to be had? Labour are rapidly losing touch with the business community over the issue of National Insurance and it could prove to be their downfall. A U-Turn could be the only option.

The full text of the reply is shown below:

Dear Mr. Edwards

I am writing on behalf of David Cameron to thank you for your e-mail of 14th March 2010. I apologise for taking so long to reply; our office has been inundated with correspondence in recent months. Nevertheless, we are grateful to you for getting in touch, and I have taken careful note of the points you raise.

Government needs to create a climate in which small businesses can thrive and compete, both nationally and internationally. In 1997, Britain’s tax system was one of the most competitive in the developed world. But over the last decade we have become progressively less competitive and our tax system has become the most complex in the world. And astonishingly, the Budget confirmed that Gordon Brown wants an extra £1 billion in taxes out of small and medium-sized businesses.

We can’t go on like this. And that is why, if elected, a Conservative Government will make sure that Britain is open for business again.

We believe in low taxes, so we will ensure that the largest part of the burden of dealing with our budget deficit – a critical step if we are to get this country back on its feet – falls on lower spending rather than higher taxes. And, where savings can be realised from existing budgets, we will use some of these to protect jobs and businesses.

This is why we have announced plans to cut waste in order to avoid most of Labour’s planned tax increase on working people. The 2010 Budget confirmed Government plans to raise Employer National Insurance Contributions (NIC) for everyone earning over £5,700 per annum. This is a tax on jobs that will undermine the recovery. We will stop a large part of this tax increase by raising the secondary threshold at which employers start paying NICs by £21 a week, saving employers up to £150 for every person they employ relative to Labour’s plans.

We will also stop the increase in NICs for most employees. Relative to Labour’s plans everyone liable for Employee NICs earning between £7,100 and £45,400 – seven out of ten working people – will be up to £150 better off each year under the Conservatives. Lower earners will get the greatest benefit as a percentage of their earnings. Nobody will be worse off than they would be under Labour’s plans.

These proposals have been backed by a raft of high profile business leaders – Sir Stuart Rose, Executive Chairman of Marks & Spencer, Sir Stelios Haji-Ioannou, Founder and Chairman of easyGroup, Simon Wolfson, Chief Executive of Next and Justin King, Chief Executive of Sainsbury’s, to name but a few – as well as Britain’s top business organisations such as the Confederation of British Industry, British Chambers of Commerce and Federation of Small Businesses.

We also aspire to create the most competitive corporate tax environment in the G20. So to begin with, we will cut the headline rate of corporation tax to at least 25 per cent and the small companies’ rate to 20 per cent, funded by reducing complex reliefs and allowances introduced by Gordon Brown.

And we have also outlined plans to reform government support for business, much of which is, at present, delivered through Business Link. We are considering a range of options but do not currently have any plans to abolish Business Link itself.

These proposals are in addition to our plan to allow local authorities to offer business rate discounts to help struggling firms, and to make small business rate relief payable automatically to qualifying firms.

Meanwhile, we have tried to offer practical ideas for further action. A Conservative Government will:

· reduce the burden of red tape on business with a ‘one in one out’ rule for new regulations, mandatory sunset clauses for regulators and regulatory budgets for departments;

· help small firms grow by using Government guarantees to create diverse sources of affordable credit and providing a £2,000 bonus to small and medium-sized businesses for every apprenticeship place they create;

· cut the number of forms needed to register a new business – moving towards a ‘one-click’ registration model with the aim of making Britain the fastest place in the world to start a business;

· end restrictions on people starting a business in social housing, to enable social tenants to become entrepreneurs;

· make enterprise a central pillar of our plans to get Britain working again; and

· open up government procurement to small and medium-sized businesses by reducing administrative requirements.

We know that only the private sector can generate the sustainable growth we need to get Britain out of the red. That is why we have set out these plans, and why we are proud to be the party of enterprise and hard work.

We all know that the re-election of a Labour government with more debt, waste and taxes will bring us a new recession. That is why there is a clear choice at this election between five more years of Gordon Brown’s tired government making things worse, or David Cameron and the Conservatives with the energy, leadership and values to get the country moving. I hope you will feel able to join us as we seek to change our country for the better.

Kurtis Christoforides
Office of David Cameron MP

PS. Normal marketing posts will resume shortly!

A budget for business?

For the last few months I have been engaged in a simple, yet seemingly naive quest to get some clarity from each of the political parties on their policies for small business.

So far, I have had a hand-off from the Labour Party – who, about a month ago, promised me a reply within 15 days; an apology from David Cameron – who said that my first communication couldn’t be found and would I send it again – so he could ignore it again; and nothing from the Lib Dems – who you think would sell their own mother to get a cross in the box.

At least Alistair Darling has been forced to the dispatch box today to give me and every other business owner in the country, an account of what we can expect in the coming months should we entrust Labour with our vote.

The answer appears to be a series of modest, but well intentioned changes.

The Annual Investment Allowance, which gives us tax relief for capital expenditure, has been doubled to £100,000. Whilst the increase will provide a modest boost, it is only businesses that have the cash or the borrowing capability to invest above the current limit of £50,000 that will be able to benefit from it. Even if the allowance is fully utilised, it would only be worth £14,000 a year.

I, and I think most businesses, would prefer direct savings in tax and National Insurance over incentives to spend or borrow when business confidence is low and the availability of credit remains scarce. Liquidity is the key to our survival – not debt and new machinery.

In this respect, the Chancellor shows that he is out of touch with the real needs of small business. He spurned the opportunity to reduce the headline rates of corporation tax and made no move to stall the 1% rise in employers’ NI, which is due to take effect from April next year: a clear sign that he believes taxing businesses on employing people is the best way to reduce the dole queues.

The promise of cuts in business rates for one year from October is more promising. There seems to be scant detail available on who will qualify and for what relief, but let us not look a gift horse in the mouth – nor get our hopes too high.

The extension of the time to pay scheme is another welcome move. We haven’t needed to make use of this facility, but it is nonetheless reassuring to know that HMRC will play its part should we find ourselves in distress.

For the best news, it seems we have to wait until our ship finally comes in. Entrepreneurs’ relief has been doubled from £1m to £2m, providing an effective Capital Gains Tax rate of 10% on any gains that we make up to this level. Best get my finger out then and build some value.

The biggest factor though is not the impact of individual measures on individual businesses, but where the economy is going in general – nationally and globally. Business is about confidence and when the confidence runs out the impact on small businesses is cataclysmic.

We are in the midst of our worse crisis for seven decades and our vote has to be cast on who with think is delivering the most sensible response. Do we believe that the impact of the recession has been minimised by the present government or caused by it? Do we think that we need to make the present government see through its actions or is it time for change?

Darling has been forced to err on the side of caution and avoid any radical changes for fear of it being branded electioneering. I, like many business people in the South East, see it as a missed opportunity to give a much clearer indication that the Labour Party is the party for business.

The question remains, who is?

Real Business #3 - Escape Events

Real Business is a series of posts that analyses the marketing opportunities and challenges of real businesses in the South East. The articles are also appearing in The Courier.

Escape Events is the brainchild of West Malling resident, Martin Anslow.

Martin has a background which combines both exhibitions and a love of travel. After gaining experience in the exhibitions industry, Martin took five years out to spend his winters in the mountains – which then funded his summers travelling.

With start-up funds of just £5,000 – saved from his last ski season – Martin launched his first event, The Adventure Travel Show, in 1995. The original show welcomed 2,000 visitors and generated revenue of £20,000. By 2005, it had 30,000 visitors and a turnover of £800,000.

Martin then began to look at other niche areas of travel and launched The Spa Show in 2004.

Martin sold The Adventure Travel Show for a seven-figure sum in 2006 and The Spa Show in 2007.

“Looking back, I sold at the right time. However, while I gained financial security, I didn’t find it as satisfying as running my own company,” says Martin.

At the beginning of last year, the opportunity arose to buy Adventure Travel back and Martin ‘leapt at the chance’.

“Relaunching has been a massive challenge – almost harder than starting from scratch,” he says. “The industry has changed quite a lot over the past four years. Adventure holidays are now quite mainstream – so travellers are looking for something more.”

In terms of the business itself, Martin has noticed that exhibitors and sponsors are demanding more for their money.

“So we are having to be more careful about what we spend our money on – particularly when it comes to marketing. Previously, we’d do a lot of advertising on the tube, for example, but now it’s more focused on the Internet.”

As with any exhibition organiser, Escape Events has to juggle the fact that money does not come in steadily over a 12-month period, but just before an exhibition. One way Martin is dealing with this is to launch more shows. He unveiled The Cruise Show last year and is identifying other niche areas of the travel sector, as well as looking to launch some shows overseas.

For more information, visit: http://www.adventuretravellive.com/ and http://www.cruisingshow.co.uk/

The Marketing Eye says:

Marketing budgets are under pressure everywhere and Marketing Directors need to show an unambiguous and often short term return on the money they spend. Exhibitions are notoriously difficult to measure the success of, which means that Escape Events needs to clearly demonstrate to exhibitors how involvement at the shows can increase sales or improve brand visibility. Exhibitors should be provided with lots of ways to leverage their attendance before and after the event, for example with data capture, pre and post show marketing opportunities and brand visibility beyond the stand itself.

Before committing, exhibitors and sponsors need confidence that the show is going to attract the right footfall in the right quantity. A good marketing strategy provides reassurance that this will happen. The Internet is wonderful, but Escape Events should make sure it is switching to on-line promotion because it is better than off-line activity, not simply because it is cheaper. PR should not be overlooked either. There are good speakers at each event who can be engaged to raise profile in editorial.

Expansion into other shows is a wise move. Escape Events is proving to be an efficient ‘engine’ for the organisation and promotion of events, which could, in theory, be in any market. The brand is in the shows themselves, so there is little risk of diluting the Escape Events brand by expanding into new areas.

With thanks to freelance journalist, Angela Ward, who is interviewing the businesses featured in these posts.

Marketing Myth #1: Advertising and marketing is the same thing

This is the first in a series of 7 posts by guest blogger and associate of The Marketing Eye, Sharon Wilding, owner and founder of The Purple Edge.

Of course I'm going to tell you it's not, but for advertising read promotion, and I'll still tell you it's not the same thing as marketing. Whether you are using advertising, public relations, emails, websites, billboards, word of mouth, or one of the many other forms of promotions (paid or unpaid) you will be wasting your time and/or money if you don't recognise that marketing covers so many more aspects of your business.

Yes it is vitally important to spread the word about what you have to offer if you want buyers to come flocking, but only once you are crystal clear about the following:

• What exactly is the product or service you offer? What are the elements that make it unique or special and represent real value to a potential customer? What will make customers pay more, come back for more, or recommend you to others.
• And who do you need to spread the word to? Which group of customers (your niche or customer segment) are going to find your product most attractive and valuable? The more tightly you can define this, the better the chance you will delight and satisfy your customers by delivering what they really want, and the better the chance that you will target your promotions efficiently to this group.
• How can customers get hold of your product or service? Which channels are you using - in stores, on line, through distributors or direct from you? Giving customers a choice, or range of options, about where and how they can buy from you could be really important in increasing your sales results and could have major implications for the profit you make on each deal.
• What price are you charging and what does it say about the quality and value position you have chosen to take in the market? How can you flex your pricing or terms to change your success rate in sales or improve your profitability?
• Do you have a business plan that defines the objectives you are aiming to achieve? Do you have a strategy that guides your decision making around your priorities and helps you decide what you won't do as well as what you will?
• Does your plan identify the marketing investment (or budget) that you are prepared to make in order to achieve the objectives you have set? If not, how will you know if the cost of any promotions you want to do is acceptable or not? Or whether the return is appropriate?
• What is the sales strategy and process you have in place to ensure you convert interest and enquiries into sales?

All these issues are aspects of or are influenced by your marketing - in fact there are not many things that you do in your business that are not heavily impacted by the marketing decisions you make. Promotion may often feel like the most visible and costly part of the marketing mix - but failing to address the above list properly is only likely to make it more visible and costly through poor execution and wastage.

Many people say to me ‘we don't do any marketing'. What they really mean is that they don't do a lot of promotions, and that may be the right decision for their business.

If you are getting all the new and repeat custom you can handle then you are obviously doing something right, and maybe you are instinctively good at marketing, but to sustain growth there generally comes a point when a more structured and disciplined approach to managing your marketing mix (i.e. all the stuff above) is going to be needed.

Be honest - if you don't have the marketing skills yourself then go out and get some help or training. Marketing is too important a business function to do half-heartedly.