How Gallo got marketing right<br> and most don’t

 /
/

Here are five illustrations of sales and marketing stupidity, and one example of how to get it right.
Ignorance seems to be bliss.
We recently prepared a marketing communications proposal for an insurance organization. The linchpin of the program was a third-party customer research study.
Several weeks after we submitted our proposal, our contact at the company called and said the CEO was opposed to surveying customers. He felt they only get people thinking about what’s wrong. In other words, it’s better to let sleeping dogs lie.
In fact, there is no evidence to support the view that surveys upset the apple cart, and there are indications that the opposite is true: Customers are flattered to be asked their opinion.
If Ford, General Motors and Chrysler had not ignored the data indicating that consumers were abandoning big SUVs and trucks in favor of smaller, more energy-efficient vehicles, they might not have found themselves in the disastrous situation they are in today.
Trying to get the customers’ attention by any means.
Boston (like a number of other cities) was recently the scene of a Cartoon Network promotion that not only backfired, but also came with an unpleasant price tag. It involved strange-looking lighted displays placed in strategic spots (including under a bridge) that blinked away and were mistaken for bombs. It snarled traffic, brought out thousands of police officers, firefighters and emergency personnel, and embarrassed public officials, who sent the network an instant invoice for $2 million
The Donald factor.
Heroes must be in short supply if The Donald is one of them. Why is this in-your-face, painfully pugnacious and super-egotistical guy so popular?
It may be that he does what we would, if we dared. The Donald is the anti-wimp. Everything he does is another way to scream, “You’re fired.” Are we so sadistic that we enjoy seeing others suffer?
How many of us would like to shout, “You’re fired!” at a co-worker, a boss, a mother-in-law, a customer or even a spouse? Instead, we let The Donald do it for us. Then, when The Donald disappears, we can buy a Hummer and play Intimidator.
Get the message right.
Diabetes is a devastating disease. This is why an American Diabetes Association fund-raising letter with a real nickel peeking through the envelope was surprising. The caption read, “Even though diabetes is one of the leading causes of death in the United States, each American receives only a nickel’s worth of research funding every week to find a cure.”
The final paragraph concluded, “Every nickel you give will provide funds desperately needed to eliminate diabetes once and for all!”
If every nickel counts, why would a nonprofit give them away and then throw in a sheet of mailing labels? It’s gimmicky, confusing and even reckless.
There’s a better way. Why not challenge prospective donors with a larger-than-life message? Our perceptions of products, services and companies influence our buying behavior. The task is shaping perceptions in ways that deliver positive results.
Having the wrong vision of ourselves.
If there’s one issue that takes top honors, it’s the arrogant and erroneous belief that preparation is unnecessary. Much of the problem is the way many people – and in this case we will use salespeople as the target – view themselves. They seem to think that being friendly, likable and sociable are the core ingredients for making sales. Then they wonder why their closing rate is so low.
For all salespeople, a lesson from Ronald Reagan is in order. Behind his rather folksy façade there was an enormously disciplined mind with well-honed ideas. More importantly, he was practiced in communicating benefits, not features.

Getting it right.
For decades, Ernest and Julio Gallo turned grapes into gold by selling low-end wines. Julio operated the wineries and Ernest, the chief salesperson, made the money. Over the last couple of decades, they have earned respect from their more upscale lines.

According to a Wall Street Journal story, Julio was dogged in his marketing. He constantly visited stores, always making sure that Gallo had the most advantageous shelf space. The article goes on to say:
In an early 1970s exchange with Michael Mondavi, son of the famous vintner Robert Mondavi, [Ernest] suggested size was not his biggest priority. “Do you know what I do?” Mr. Mondavi recalls Mr. Gallo asking him when they first met.
“Yes, you run the largest winery in the country,” replied Mr. Mondavi, then in his mid-20s.
“No,” Ernest corrected him. “I go out and visit customers in stores.”

It’s a good lesson for CEOs, The Donald, marketers, salespeople and just about everyone else.
John R. Graham is president of Graham Communications, a marketing and sales consulting firm. He can be reached at j_graham@grahamcomm.com.

No posts to display