The ability to recognize what your brand can and can't learn from startups is key to an authentic, successful marketing strategy. There are hard truths to working at a large, legacy brand, and those companies should fully understand the inherent limits that come along with them. Katherine Patterson of GE Healthcare will discuss why every bandwagon isn't worth jumping on, and how to determine the right amount of experimentation for your brand without losing sight of your marketing goals
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
Startup Mentalities and Big Business: The Truth No One Wants to Admit
1. Start Up Mentalities in
Big Business: The truth
no one wants to admit
Katherine Patterson,
Global Marketing Communications Manager,
GE Healthcare
2. Note:
This talk is not endorsed by GE Healthcare.
Any comments, statements, promise, or swear
words
are purely from Katherine Patterson and probably
frowned upon (although likely expected) by
GE Healthcare.
3. About me
Global Marketing Communications Manager
for GE Healthcare
Corporate liaison
Branding & Advertising for GE Healthcare
Growth Initiatives
I just can’t shut my big yap
7. The eight most brilliant marketers of all
time
André Citroën
Engineer
Conrad Gessner
Bontanist, physician
Lily Langtry
Actress
Charles Ponzi
Businessman
John R. Brinkley
Quack physician
Mary Kay Ash
Door-to-door sales
George Wilkes
Journalist
Julias Caesar
Statesman, author, noble
http://www.businessinsider.com/the-greatest-marketing-geniuses-of-all-time-2011-
8. There is no BAR exam for
marketing.
“It will work.
I am a marketing
genius.”
-Paris Hilton
9.
10. The Latest In Shiny Object
Syndrome
Big Data
StartUp Model
Industrial Internet
360 Marketing
Intrepreneurs
QR Codes
Gamification
Social Media Strategy
Infographics
Personal Clouds
Advertainment
Permission Marketing
Earned Media
Mobility
Ideation
Contextual Marketing
19. Leveraging the startup
approach
Get us closer to customers
Increase our speed to market
Increase chance of success
Make it easier to get things done
20. Start ups:
Failure is
likely.
Big
Business:
Failure is not
an option.
Entrepreneurs average 3.8 failures before final success. What
sets the successful ones apart is their amazing persistence.” –
Lisa M. Amos
22. Measurement ≠ Effectiveness
Logic
Emotion
Outputs
Outcomes
Doing things right
Doing the right thing
Divides
Unifies
Resists change
Embraces learning
How well did it work?
How can we do better
next time?
Campaigns that set
hard objectives are 4x
more effective than
those that don’t.
Pre-testing for
standout reduces
effectiveness
(awareness is worst
predictor of all)
23. “Some may choose to call this the
boldest single marketing move in
the history of packaged goods. We
call it the surest move ever made.”
~Roberto C. Goizueta, CEO and
President of Coca-Cola
25. Start ups:
Figure it out
as you go.
Big Business:
Overthink but
try to keep it
simple.
26. FastWorks Framework:
Continuous learning, iteration and
improvement
Understand the problem
… from the customers’ point of view
Identify leap of faith assumptions
… that are critical to project success
Define a series of MVP’s
(Minimum viable product)
… tests to validate assumptions
Establish learning metrics
… accessible, actionable & auditable
Pivot or persevere
… make changes based on learning
Ideas
Learn
Build
Data
Product
Measure
27. Customer Engagement Process:
Validate before you pivot or persevere
Two types of validation:
1. Customer problem statements
2. MVP solutions
Design
Interview
Analyze
POP
• Assumptions
• Testable
Hypotheses
• Customer
problem
statement
• Share pain
points
• Validated pain
points
• Pivot or
Persevere
MVP Solution:
• Share MVP
Validated
features
Pivot or
Persevere
Repeat this process with higher fidelity MVPs
37. Fundamental differences
Start Ups
Big Business
Failure is key
Failure is not an option
Passion for product
Passion for me
Focus on growth
Focus on career
Need-based
Revenue based
Address basic human
emotional needs
Address needs of
company for growth
Ask the questions no one will, but they’re all thinking. It’ll shock you to realize that they’re not always thinking it.
Only one was in marketing or business. ONE. Citroen – inventor of electric billboard; rented the Eiffel tower to promote his automobilesGessner – inventor of viral marketing. :Some scholars believe it began way back in 1559, when the Swiss naturalist Conrad Gessner waxed lyrical about the beauties of the tulip -- a flower then not well known in Europe. His remarks eventually spawned (in 1634... thing move a bit slower without the Web) what's now known as "Tulipmania." During the craze, some bulbs sold for the contemporary equivalent of several million dollars.One tulip fancier actually murdered his manservant for eating a particularly prized bulb, believing it to be an onion.Now, that's brand loyalty with a vengeance!Langtry – the madonna of her time, publicized her sexual escapades (including one with the future king of England) and then creating an image of glamor that was ripe to be exploited.And exploit it she did, adding her famous name to a line of cosmetics. The fee she charged the cosmetic firm: her body weight in gold... pound per pound.Brinkley – inventor of broadcast advertising, when radio was like the library at the time. He advertised his “cure” for male impotence – surgical implantation of goat testicles. Brinkley combined entertainment (booking some of the great country music acts of his day), bible readings, and a strong sense for the memorable turn of phrase. His most memorable catch phrase: "You'll be a ram-what-am... with every lamb.”Ash – founder of networking marketing. Started Mary Kay when the guy she trained got promoted and earned twice her salary. Started incentivizing with the famous pink cadillac – an ad and ego tip to allWilkes – founder of girly magazines in 1845. Put sexy pics next to boring ads – which increased their apeal. First to use sex to sell unrelated products.Caesar - When Julius Caesar was away in Gaul (now France), his enemies in Rome were busy trashing his reputation. So he invented the advertorial.He started sending Rome reports on his progress, ostensibly to keep people informed, but really to make sure that everyone knew about his victories.When Caesar finally crossing the Rubicon, he had a reputation to "die" for.
Many think they can do it – but few actually succeed.
Shiny object syndrome can happen anytime someone can’t let something work – or is so interested in the tactic that they forget what they are trying to do.Can apply to campaigns, ideas, etc.Symptoms:A soft spot for buzzwordsDisposition to regurgitate the latest buzzwords you just overheardInsatiable desire to sell the “latest thing” to clientsTendency to believe the hype, without investigating for yourselfTendency to dismiss without investigating for yourselfExcess use of the word “viral” viral…viral…viral…viral…Lack of interest in research or first-hand experienceTotal disregard for customer, brand, or business needs
Here’s the thing – each one of these has merit. The problem is when people look to the latest as the next silver bullet that is going to provide them unparalleled success. Each has merit – and each is problematic. Today, I’ll try to keep it to one of the latest fads: start up mentalities. Or FASTWORKS.
There’s no such thing as a sure thing, silver bullet, or any equation that guarantees success. Marketing is a combination of instincts, intelligence, luck and guts. Anyone who is telling you otherwise is selling you something.
15 minutesTeams of 4Tallest structure with the marshmallow on top
This seems to happen because kindergarteners are much better at the iterative design process. While business students wait until the end to place the marshmallow, 5 year-olds make many successive prototypes, always keeping the marshmallow on top, and test them throughout the 18 minutes, ultimately ending up with more interesting and more successful designs. In many ways, the marshmallow challenge represents the hidden assumptions in a project. Every project has its own marshmallow, and you don’t want to encounter it at the very end of your 18 minutes.
Increase success?This is why GE hires attorneys from the IRS, FDA, etc. To do everything possible to make sure that we have the best chance to avoid failure. This is aginst our culture.
But what about the HIPPO factor? Startups don’t have that.Ultimately - It’s about money.
Failure is vitally important part of the eco system of start ups. It’s where you learn.75% of all start ups fail50% fail within the first four yearsThe FastWorks process focuses on speed to market and sure thing deals: avoiding failure
Everything we do in big business is about risk mitagation. This model implies that you are OK with taking a risk. A concept that most say they’re OK with, but few put it into practice.
And in general, marketing people (most of which were engineers) are least comfortable with emotioanl marketingIt is possible for a culture shift – it’s just going to be freaking hard.
1985, marketers were stunned that consumers preferred Pepsi to Coke in blind taste tests. Four million dollars and two years later, they rolled out New Coke based on blind taste tests to make it sweeter, like Pepsi.
So the very principle is different. Oxy-moron: simplifying GE. Ha. 12 months later, and after the most complicated processes available, we are still “simplifying.”
Failure is vitally important part of the eco system of start ups. It’s where you learn.75% of all start ups fail50% fail within the first four yearsThe FastWorks process focuses on speed to market and sure thing deals: avoiding failure
This is how they simplify.
The black death to start ups. When it’s about you – not the cause.
Make a splash, make a name, and get on with your life.
You have to be authentic – and understand the people are people. With emotions, feelings, not an equation.
GE: Ellie vs. cancer survivorsBack when it was founded in 2002, Pay By Touch allowed users to pay for items with a swipe of their finger on a biometric sensor. However, during the company's most successful years, CEO John P. Rogers was accused of domestic abuse, drug possession, and taking company money for his own use. One investor said he was "worse than a drunken sailor." By 2007, Pay By Touch was shut down.
Tony RobbinsCertainty: assurance you can avoid pain and gain pleasure (control)Uncertainty / variety: need for unknown, change, new stimuliSignificance: feeling unique, imporant, special or needed (competing)Connection / Love: strong feeling of closeness or union with someone or somethingGrowth: expansion or capacity, capability or understandingContribution: a sense of service and focus on helping, giving, to and supporting others
ForbesWhen you have 300,000 employees, I don’t care how great your company is, you’re a number. And no one is irreplacable.