Is your business strategy a lion or a gazelle?

Secret Marketer

The bluebells are out, snowdrops spraying forth, the weather a mercurial mix of sunshine and showers. It is spring and that means the time for restructuring.

Restructuring is a common practice in many organizations, often done bi-annually to cut costs. However, post-Covid, it seems like a more coordinated effort as companies struggle to boost their share prices sustainably due to a lack of growth. This could be a result of underinvestment in domestic businesses and the unpopularity of UK stocks, possibly influenced by Brexit. It's clear that we are now operating in a 'do more for less' environment, with big accountancy firms and consultants eager to assist.

When it comes to insulating themselves from cost-cutting measures, marketers should not focus on the wrong question based on my experience.

Not every brand has the resources to focus on both brand building and direct response marketing simultaneously. It's a decision that needs to be made.

Honestly, it's not the time to stress about this now. Decisions will be made, and we all need to give our best efforts. Planning ahead is key to safeguarding budgets for brand building and marketing, long before any restructuring discussions begin.

Thinking ahead to the future of your business

It all boils down to understanding the business objectives and how the brand can help achieve them. Looking beyond the uncertainties of 2024, what steps can marketers take today to safeguard the valuable assets of the company?

Knowing the difference between rabbits and ducks

I recently listened to a podcast series featuring lectures by Professor Emma Smith, a renowned Shakespearean scholar from Oxford University. Professor Smith discussed the themes of Henry V and made an interesting comparison using an analogy from the world of birds.

If she were to talk about marketing, she might ask whether our marketing plan resembles a rabbit or a duck. The key point is that our plan should not be a mix of both, known as a dabbit or a ruck. Like certain interpretations of Henry V, many marketers make the mistake of trying to be both things at once, falling into the trap of being neither.

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Have you heard about the famous psychology experiment where people see a line drawing as either a rabbit or a duck? It's a simple binary choice - one or the other, no in-between variations like a rabbit with a beak or a duck with floppy ears. It's all about whether you see it as a rabbit or a duck.

Similarly, in Henry V, he is seen as either admirable or deplorable. There's no middle ground - he can't be both at the same time. This brings us to a crucial question in marketing: are our plans and campaigns focused on long-term brand-building or short-term direct marketing? Just like Binet and Field emphasize, are we balancing the long and short-term effectiveness in our strategies?

What Professor Smith argues in literary criticism, and I am borrowing for marketing strategy, is that they shouldn’t be ‘the middle of it’.

Do you have a dabbit strategy?

Marketers often make the mistake of choosing a compromised strategy known as the dabbit strategy. This strategy involves diluting the effectiveness of direct marketing by adding non-responsive elements such as emotional connection and being overly purpose-led instead of focusing on a rational call to action. Similarly, brand-building campaigns can fail when they become solely about products, features, and attributes, neglecting a more emotionally resonant and memorable story.

While having both a rabbit (brand building) and a duck (direct response) strategy is ideal, not every brand can afford to run both simultaneously. It is important to choose one approach or the other, rather than creating a hybrid that may not be effective. Investing in brand building and direct response marketing at the same time is a choice that not every brand can make.

Marketers often make a critical mistake by choosing the wrong strategy.

Understanding this concept can help marketers protect their roles during times of cost-cutting. The rabbit/duck analogy is a key tool in marketing for businesses. It helps marketers determine the purpose of their function and the importance of marketing and branding within their organization. This tool can guide decisions on where to invest resources, especially when faced with limited options. Are we focused on building a strong brand for the future that will increase our market share and customer loyalty? Or are we solely focused on meeting short-term sales targets and improving efficiency to generate immediate revenue?

To ensure their departments thrive in the future, most marketers should strive to be like ducks. Proud ducks, to be exact. It's time to let go of the rabbit dream, as rabbits are not fans of swimming.

Editor's P/S:

The article highlights the importance of marketers understanding the distinction between brand building and direct response marketing. While both strategies are valuable, it is crucial to choose one or the other, rather than attempting a hybrid approach that may dilute effectiveness. Marketers should consider the long-term objectives of their business and the resources available to them when making this decision.

The rabbit/duck analogy is a useful tool for marketers to determine the purpose of their function within the organization. Are they focused on building a strong brand for the future, or are they solely concerned with meeting short-term sales targets? By understanding this distinction, marketers can make informed decisions about where to invest resources and how to position themselves during times of cost-cutting. In the current economic climate, it is particularly important for marketers to demonstrate the value of their contributions to the organization, and choosing the right strategy is essential for success.