Between Theories and Practice

I am more and more convinced that when it comes to business no one knows what he is doing. I thought it would be different in a multinational. Nonsense.
All the systems, the matrixes and the models seem to be drawn to dilute the idea into a broader sense of control over intangible results.
While I can easily stuff graphs and numbers into the simplest presentation to make it look scientifically correct, I remain the hardest person to fool.

Yet, the other day, I saw a ray of light.

The Product Life Cycle Model might be one of the tools I never resorted to. Despite the stress and importance it was given in my marketing program, somehow I thought they were out of things to teach and had extra hours to fill.
Until the day, I myself was out of matrixes and models to present, I thought I'd fill an extra page. As I graphed the demand of each product over the period of time, never had I imagined I would get this result: 5 perfect curves, as perfect as the theory... and I was not dreaming!
What's more is that the stages of the product life cycle corresponded amazingly well with the actual situation of the product. I was shocked, astonished, bedazzled... no, enchanted!
Out there somewhere, there's a marketer who knew his business and who created a theory out of it. Now, remind me, who was that genius again?

*goes searching for the author*

Love it AND Leave it

Welcome to Lebanon!

What has this land become? .... A party land. Our awaited vacation destination. A place no one can afford unless of course, he gets his income from, well, elsewhere.

A paradise with a double folded glory, so controversial that it can be heaven for people with different, even opposite, values.

Lebanon is ruled by the skies, bound by religions, a place where satanics and gays are sentenced to death. Rough, you might think... but you haven't digged into the reality of it all, that's only the icing of the cake... but the bulk is just as juicy, and, boy, are you in for a surprise.

With wars and political unrest, this heaven has maintained its sanctity, safe from the media and the tourists, it has kept its cultural purity.

Life! You know not what it's like, if you have never been there. Try booking a table in any restaurant any time of day, any day of the week - full house. The pubs, the night clubs, the night life, unbeatable... and it's not just walls with nice decorations, it's the people!
Beauty! The city lights at night look as festive as a christmas tree. The sound of the waves crashing on the rocks, the wind, the sun, the sand... can only be knocked down by the snow covered mountains.

What did it all bring us? An over-educated population, with a living standard it cannot keep up with. A local inflation in prices of goods and real-estate that cannot be constrained. An additional dose of freedom that others would have done without. The safety to dress up and look stunning every single day with absolute innocence... and without standing out in the crowd. A socially defined set of standards we all abide to, unconsciously, the will to strive and succeed and meet communities' unreachable requirements. Consequence? Brain drain, immigration, temporary working visa...etc.

Lebanon has fought its wars from abroad and left many dazzled by its unmoved economy despite the local security issues.

That's Lebanon! We love it, and we leave it, swearing we'd be back.... WHEN the situation calms down, and we all see the irony in that.

Measuring Your Marketing Efforts

I have been reading about economics in relation to marketing. In general, the marketing effectiveness is measured as a relation between the marketing budget invested and the sales returns. The formula is simple MR=MC.

Sounds logical? Maybe, but it isn't quite so.

Marketing efficiency depends on the marketing campaign's success. A marketing budget is only relative to the marketing costs (graphic designer, medium, marketing research... etc) which in their turn change under different settings. Meaning? The same marketing budget can be translated in campaigns of different sizes, depending on the market costs. Thus, a marketing budget is irrelevant in the calculation of marketing efficiency.

Moreover, sales in $ is not representative of the response to the marketing efforts. The same amount, let's suppose $3,000 of total sales, can be a sale of 3 products of a value of $1,000 each or 300 goods costing $30 each. Moreover, the profit margin on the products can be different; thus looking at the sales profit makes things even more complicated.

The real criteria that one needs to look into are frequency and reach of the campaign...

Lord of the Wings

...So I am in love with this concept!
A new restaurant opened in Lebanon, a special fast food chain. They called it "Lord of the Wings", sounds like "Lord of the Rings" and it is intended to. Great catchy name created to grasp the young target audience.
First opened in a trendy street in Beirut where pubs abound, now in a mall. The name says it all! They serve chicken wings with different flavors! The only other choice would be a burger... could they have done anything more cost-effective?!... and talk about differentiation and specialization, they're right on track!

But let me tell you what else they did right: a keen attention to details.

• The menu is handed in on a sheet for the customer to fill; definitely makes you want to tick more than one box! i.e. more sales.
• The chicken wings are served with gloves and wet wipes in a well-presented basket. What's more is an additional glove, which you might take for a mistake; but make no assumptions, they're only considering your needs in case yours got ripped.
• You know what else they correctly anticipated? Customer behavior! The first thing a customer seems to ask is which flavor is which plate. Only to notice a small tag on each. well-sought!
• Add to this a friendly staff and free-refill for your soft drinks...

I bow down to the Lord. The Lord of the Wings!

Conditional Marketing: "Do unto others as you would have them do unto you"

Once upon a time, advertising meant the brand is successful, what the consumers translated as “the product is good”. That is in a far away reality, which we now doubt ever existed.

Later on, people looked for confirmation from a second source. While they often relied on a friend’s advice, they also trusted a credited source: what they’d label an expert. Trial and error taught them that experts are not always honest; they often have their own reasons for praising.

Now, with the increase in interactive marketing a new way of doing things has emerged; a "Do unto others as you would have them do unto you” type of marketing. If you have a blog or are member in a community, you’ve probably already witnessed this: “you link to me, I link to you” or “I commented on your text, come check out mine”. However, this activity is not limited to the digital world, and this is what most of us ignore. It is everywhere.

I was recently reading a book called the Black Swan. It’s author, Nassim Nicholas Taleb pointed out how the academic world has become a “you quote me, I quote you” type of place.

If I say I am great, no one will believe me. If you say I am great and I say you are great; then the world is fooled to think we both are indeed – that is – if the same person does not stumble upon both sentences at once. It is even the basis of social interaction.

I recently realized how little value we have for real “merit”. We trust other people’s judgments blindfolded. If I was to buy a book, I would not pay attention to its content, as much as who commented on the back cover or which book got better reviews from the big sources.

Consequently, a business book published in India, for instance, has less chances for success than one published in the US; “country of origin effect”? Not quite so. If an Indian author would publish his business book in the US, he’s as likely to be acclaimed, as is an American author. The trick would be getting reviews from the big CEOs and the renowned business magazines: Businessweek, Financial Times and the likes.

What some people might attribute to luck, is logic but in a non-mathematical sense; and not everyone grasps this. Some people are born in the right place; others just understand how the customer functions, the latter are the marketers... and both find the way to success.