7 Rules of Marketing that Get Results

by Temel Aksoy

  Loyalty Pyramids

  Reality: Executives who make decisions based on these pyramids are misled into believing they must turn less loyal customers into more loyal customers. This is impossible. The only way for a brand to increase the number of loyal users at the top of the pyramid is to increase its total number of users (details in chapter 50).

  Net Promoter Score (NPS)

  Reality: No company’s performance can be adequately measured with a single question. Contrary to what many marketers believe, NPS scores don’t predict a brand’s future growth. NPS offers no benefit to brands (details in chapter 51).

  Exceeding Customer Expectations

  Reality: Research shows that exceeding expectations has no effect on customers’ purchase behavior. “Satisfying customers in a way that exceeds their expectations” is empty marketing jargon, both in terms of the economic impact and how customers respond (details in chapter 63).

  People Don’t Watch TV Anymore

  Reality: The truth is, people still spend a significant amount of time in front of the television, and this actually has increased in recent years. Television is still the advertising channel with the greatest reach (details in chapter 74).

  360-Degree Communications

  Reality: Advertising on every available channel may describe an ideal approach to media purchasing, but actual 360-degree communications isn’t something we see in real life, due to expense. Brands are better off deciding their marketing goals before deciding where to advertise (details in chapter 76)

  Engagement

  Reality: Brands have become convinced that engagement on social media (follows, likes, shares, comments, etc.) drives growth. However, there is absolutely no connection between the positive engagement people have with a brand on social media and their likelihood of purchasing the brand. Rates of engagement for most brands are also very low, indicating that people have little interest in “engaging” with brands on social media the way they do with friends and family (details in chapter 79).

  INTRODUCTION

  1.  The

  “Raison d’Etre” for Companies Is to Provide Benefit to People

  When writing a book about how to do marketing, one should begin at the beginning: the reason why companies exist. My argument would be this: a company’s reason for being is to make our lives better.

  The food we eat, the water we drink, the clothes we wear, the telephones, computers and cars we use, the beds we sleep in, the houses we live in—these are all benefits created and made available to us by companies. At any given moment, we’re using a product or service provided by a company.

  People pay companies for the products and services they sell because of the positive contribution they make to their lives. Every company’s raison d’être is to meet people’s needs and to make their lives easier.

  Yet, in my experience as a marketer and market researcher, I have found that the majority of people think that companies exist to make a profit, not to provide value to fellow human beings. However, if you’re a marketer, reducing your work to an issue of making money isn’t only a factually incorrect approach, it’s also dangerous for your business in the long term. Of course, the pursuit of profit is every company’s natural right. There is nothing at all wrong with this goal, but to succeed, it’s essential to correctly define what it means to make a profit.

  As Peter Drucker has said, profit isn’t the purpose of the work performed, but the result. Making a profit is merely proof that the company is operating in the right field, cooperating with the right people, working efficiently, selling its products and services at the right price and keeping its customers (consumers) satisfied. If even one of these elements is missing, the company can’t make a profit.

  Companies that lose money are eliminated for their mistakes. Those that make a profit, however, earn the right to continue with their business. Their profits allow them to make even more investments, expand their operations and assume greater responsibility, while gaining the opportunity to make a greater contribution to the lives of even more people and make even greater profits.

  The companies that make more money aren’t the ones that aim for greater profits, but the ones that engage large numbers of people and provide them with benefits.

  2.

  Praise for Marketing

  Understandably, people who feel companies exist to make a profit tend to have a negative view of marketing as well: they view it as distorting the truth or even deceiving people. For many people, marketing conjures up negative images and feelings of mistrust. As a result, marketing doesn’t garner a lot of respect from consumers and even some businesspeople.

  Of course, some companies do hide the truth, mislead people and acquire unjust gain through deceptive practices. This is the dark side of marketing, but there is a much larger and brighter side, a side that deserves to be praised. That side resembles the raison d’être of companies: to meet the needs of people and make their lives easier.

  The goal of marketing is essentially to satisfy people’s needs, through not just companies, but political parties, sports clubs, civil society organizations, local administrations and governments. All of these organizations benefit from marketing. As Philip Kotler says, marketing’s sphere of interest is life itself.

  To be effective in achieving its goal, marketing utilizes several fields of science, the most common of which are anthropology, psychology, sociology, statistics and linguistics. Marketing combines all of these in an attempt to understand and serve people, not just as consumers but in every way imaginable.

  Marketing also drives competition, thus ensuring that the quality of available products and services improves. It makes consumption more democratic. The fact that we have more choices in every product and service category with every passing day is due to the marketing activities companies engage in. Thanks to marketing, markets not only expand, but also benefit from new technology discovery, supply-side industry support and employment for various professionals, ranging from advertising professionals and retailers to market researchers and experts in trademark law. And it’s people—in other words, society as a whole—who reap the greatest benefit.

  A good marketer opposes all types of waste and rejects dishonesty, illicit gain from worthless products and deceit. Satisfied consumers (clients) who get what they pay for are what real marketers want more than anything.

  Marketing that doesn’t create added value for these consumers or clients is charlatanism. Charlatans are a disgrace, not only to the medical profession but to all professions. And no charlatan in any profession should be associated with those who perform their profession with integrity.

  UNDERSTANDING THE CONSUMER

  To meet the needs of people and to make their lives easier, marketers must first understand them. In this part of the book, I’ll talk about the marketing myths and realities about consumers: their motivations and emotions, their memories, how they make decisions and their perceptions of products and brands.

  MOTIVATIONS

  3.

   Maslow’s Hierarchy of Needs Theory Is a Marketing Myth

  The most famous human motivation theory is Maslow’s Hierarchy of Needs. According to Maslow, people satisfy their needs in a specific order. First, humans meet their physical needs for food, drink and sex, followed by fundamental needs like safety and shelter. After meeting these needs, they want to belong to a group where they are accepted, and they want to be loved. Then, they want to be appreciated in their circle, and, finally, they want self-actualization. In other words, people want to leave their mark on the world by realizing their full potential.

  Maslow called his theory the “Hierarchy of Needs,” but in real life, people don’t satisfy their needs in an orderly, step-by-step fashion. People may want to satisfy their hunger, their desire to be loved and their desire to be creative all at the same time. If Maslow’s theory were true, peo
ple wouldn’t try to satisfy any of their needs before they satisfied their hunger. For example, it would be impossible for people to go on a hunger strike for a cause they believed in or care about their honor until they had satisfied their hunger. It would make no sense for people in love to put their lives in danger or for artists to strive for self-actualization without first meeting their needs at the lower levels.

  All of Maslow’s needs are indeed fundamental human needs. All of them are true, but not every person satisfies them in the same order. Every person has different priorities. (See Mark Ritson, “Marketing Deconstructed,” and Donald Clark in References.)

  Maslow’s “theory,” so frequently encountered in marketing, actually has no value for marketers. I have yet to meet any executive who used this theory to make an effective marketing decision. But this theory is generally considered reasonable and believed to be true because we’re all suckers when it comes to blindly accepting generalizations expressed in geometric shapes or formulas bearing novel names. Maslow’s Hierarchy of Needs is a myth that has no counterpart in real life.

  In my opinion, the motivational theory that’s most useful to marketers is the approach developed based on American psychologist David McClelland’s conception of human needs. According to this approach, all people have two sets of opposing needs:

  The first set: the need to “belong” and its opposite, the need “to be oneself” (details in chapter 4)

  The second set: the need to “control” and its opposite, the need “to let go” (details in chapter 5)

  Leading research companies have adopted McClelland’s conception for their analyses of “consumer need state.” For example, the famous Censydiam model (now acquired by IPSOS) and Needscope (of TNS) both use this two-axis representation of control–release/me–we quadrants. This understanding of human motivations has become standard in the market research industry.

  Considering human motivations within the framework of these four needs will clear the cobwebs from executives’ minds so they can think more clearly—both in their daily marketing activities and in new product innovation.

  4.

   We Want to Be Both “Me” and “We” (Need Set 1)

  When a person feels like they belong to a group and are accepted by the group, they feel safe and secure. When a person is surrounded by their family and friends or when they’re a member of a group, they satisfy their need “to be us.” Solidarity gives people peace of mind. Many scientific studies have demonstrated that people in societies with strong social bonds live happier, more peaceful, healthier and longer lives. (See Robert Waldinger.)

  However, to achieve happiness, it’s not enough for humans just to belong. Once people are in a group where they feel good about themselves, they want to highlight their differences. When a person feels safe and secure in a place where they belong, they look for ways “to be me.” The reason is that being different from others gives them a feeling of power. Starting in adolescence, the phenomenon known as “leaving the herd” gives people this sense of power.

  In humans, the desire to be different is a natural need that’s just as strong as the desire to belong. These two opposing needs complement each other. People want to both “belong” and “be themselves,” even though these desires may alternate in taking precedence.

  How does this relate to product marketing? Luxury brands are always the “me” brands. They make users feel privileged and superior. Personal care brands are also “me” brands. Advertisements for these brands show men and women with characteristics that set them apart.

  Sports teams are “we” brands. The whole point of being a sports fan is to erase differences between people and unite them under the same colors. All of the fans watching the game in the stadium and on television become equals. Being a fan eliminates the age, education and income differences between people. Brands that represent love, sharing and romance are also “we” brands. There is no “me,” only “us,” whenever these feelings are in the fore.

  However, different products from the same brand can be “me” or “we” products. Large vehicles are “we” products for large families, while sports cars appeal to the “me” motivation of the individual. Generally, products that are sold in large sizes relate to the “we” motivation. Advertisements for these products show family members and friends sharing the product.

  5.

  We Want Control, but We Also Want to Release (Need Set 2)

  Just like the “me” vs. “we” motivations, the desires to “control” and to “release” are universal. Everyone wants to control and protect their health, time, money and relationships. The desire people have to watch what they eat, exercise for the body they want, get health checkups, watch their spending, save money and control their time are all reflections of behaviors motivated by “control.”

  Sectors such as health, banking, insurance and diet are built around the control motivation. The behavior of people in advertisements used by brands that operate in these sectors and the colors and tone of the advertisements are compatible with the control motivation. For example, to hold, to save, to postpone, to diet and to work out (go to the gym) are control-driven behaviors. Black, navy blue and blue—darker tones—are colors associated with the control motivation. It’s not a coincidence that we see a lot of banking, insurance and health companies using these colors.

  However, people can’t live lives of total control. They want to “release” as well. People who diet for a certain period of time also want to reward themselves. People who save money want to relieve some of the tension they experience through expenditures such as going on vacation or buying something they really want. Entertainment and holiday sectors are based on the desire to “release.” The communications engaged in by brands that market candy feature this motivation. Concepts we hear so commonly in advertisements, such as “pamper yourself” or “reward yourself,” are reflections of behaviors based on the release motivation.

  People can want “control” and “release” on the same day, just as they can want both “we” and “me.” A person’s entire life is spent balancing the tension created by the motivations at these four extremes.

  Every brand must be marketed by taking into account which of the “me”–“us” and “control”–“release” motivations are in play. Having an excellent command of these concepts will pave the way for effective and consistent marketing in all phases, from product development to advertising.

  6.

   Marketing Is the Design of Behavioral Architecture

  People are constantly balancing McClelland’s four needs. Knowing this, what can marketers do to encourage action? How can we motivate consumers to choose a product or brand?

  Simply appealing to needs isn’t enough. The intentions and behaviors of most people are diverse. Most of the time, people are unable to achieve their aspirations. Everyone knows that the right way to be healthy is to wake up early, exercise a little, have a good breakfast, and eat well and regularly. Most people think they can do all of this if they want to. However, very few people actually do what they envision themselves doing.

  B. J. Fogg, a Stanford University researcher who studies human behavior, says that three factors must operate at the same time for people to implement their aspirations. According to the Fogg Behavioral Model, to take action on even a simple matter a person must want to do it (motivations); have the physical, economic, social or mental capability to implement the behavior (abilities); and, finally, experience an effect (trigger) that will be the precursor to implementing this behavior. Fogg says that if these three factors aren’t in play simultaneously, a person’s thoughts will never move from intention to action.

  How this works:

  Motivations Motivations explain why people do what they do. For example, among the most important motivations for all people is the desire to maximize pleasure and minimize pain. The enterta
inment sector is based on the pleasure (release) motivation, whereas the health sector is based on the desire for control (protection). On the other hand, being accepted or rejected by a group is also one of the most important determinants for human behavior. The popularity of a certain way of speaking or dressing is driven by the desire for social acceptance (belonging) among young people. Fashion is an industry built on the motivations of both acceptance (belonging) and being different (being me).

  Abilities No matter how motivated someone is, if they don’t have the resources and competency required to realize their desires, they can’t engage in the intended behavior. If an athlete doesn’t have talent, we can’t make them successful, no matter how much we motivate them. People without the financial resources required to eat healthily can’t achieve their goals no matter how hard they try. Although some people do achieve seemingly impossible things because they are supermotivated, in the normal flow of life, a person must have the abilities (resources and skills) required for a behavior if they’re going to realize it.

  Triggers Finally, in addition to motivation and ability, factors that prompt, or trigger, a behavior must be present for the behavior to be realized. Triggers are moments that initiate behavior or serve as reminders. The window that opens to prompt membership on a website, the purchase button that makes online shopping possible with a single click, a sufficient number of cashiers in a department store facilitating payment, the size of the dressing rooms for trying on clothes—all of these are individual triggers. People need properly designed triggers even to buy products they earnestly desire. “The last link” that makes it possible to implement a behavior serves as the trigger. Triggers are what make it possible for people with motivation and ability to engage in the desired behavior. If triggers are weak or limiting, people can’t act on their intentions.