Do you have any ideas or thoughts on how to better run a business? This is the place for these blogs.

Marketing Values Not Just Value

Last night I watched an interesting video which really challenged the whole notion of the way I’d thought about marketing. For me, marketing had always been about informing people about the benefits of a product/service and explaining how it’s awesome! What I’d missed in my thinking was the reason “why” a business behaves the way it does and how this concept impacts customers.

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The below circle diagram illustrates how most marketers think about their marketing activities. They proceed from the outside of “What” they do and move inwards towards “How” they do it and finally some get to the “Why” they do what they do.


Values

Pause to think about this for a second. Brochures inevitably espouse the “What” is great about a product and “How” it’s going to benefit you. There’s nothing inherently wrong with this approach other than the “Why” you made the product has been left out.

In the video, the presenter encouraged the group of entrepreneurs he was sharing with to work from the inside of the circle to the outside. Talk about the “Why” and work your way out to the “How” and “What”.

He then highlighted that both “Apple” and “Harley-Davidson” use this approach in all their marketing communications. When customers understand the “Why” they then begin to associate with the company’s values.

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mgilmour
Yes it was a Simon Sinek video. I'm not sure at this stage how valid his position is but it is definitely thought provoking. I kno... Read More
09 June 2018
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What will you do if China has an economic meltdown?

For a while now I’ve been concerned that due to China’s massive appetite for debt it was going to experience a severe correction. When you consider the debt levels in China, they absolutely dwarf the levels the USA experienced during the global financial crisis of 2008. So where is China at now and are the debt levels like an elastic band that is being stretched more and more?

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It’s estimated the total Chinese debt-to-GDP ratio has risen to 317 per cent at the end of 2017. Compared to 158% at the end of 2008 means this number is continuing to rapidly increase.

Chinese debt

In real terms this means the amount of debt in China grew to RMB 262.1tn at the end of 2017, representing a year-on-year grown of 13.5 per cent. Considering China’s nominal GDP growth was at 11.2 per cent yoy in 2017, the rate of credit grown continued to exceed the rate of nominal growth.

The International Monetary Fund (IMF) pointed out in 2016 that it took four units of debt to raise the GDP by one unit. A decade ago the ratio was 1.3 to one. It’s clear that China has a serious debt problem that could potentially drag the global economy down.

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mgilmour
I agree it's a question of when and not where. The Chinese government is trying to create a "soft landing" for the economy but giv... Read More
19 April 2018
mgilmour
The more concerning question I have is the impact a China meltdown will have on the US economy and the rest of the world. I know t... Read More
19 April 2018
vanclute
Wow Michael, I rarely disagree with you but there's one bit of advice you gave here that really made me sit up in horror (unless I... Read More
29 May 2018
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Do You Want to Make Some Money?

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How many times have you heard that question? Each day I’m approached by people trying to sell us poor quality traffic, wanting investments for a new venture or monetisation companies that want me to do a lot of work to integrate their system. The problem is….there are only so many hours in the day….

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One of the biggest challenges that I have is how to best rank the various opportunities that come across my plate at ParkLogic. Investment opportunities that don’t have any synergy with what else we are doing are easy to dismiss. The tough ones are those that tick all the boxes.

If we went after all of the great opportunities then we wouldn’t get anything done and worse than that, we’d miss the best opportunities. The question is, “How do we rank an opportunity?”

For me to invest any sort of cash the business must be unbelievably good. The reason for this is that I’m never short on ideas to invest my money into. For me to put my hand into my pocket and invest in someone else’s business means their opportunity beats anything that I could potentially come up with.

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Is Domain Investing Dead?

Many people have come to the conclusion that investing in domains is dead and yet from my perspective the industry appears to be flourishing. The first distinction we need to make is whether you are part of the industry or a customer of the industry.

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Over the last few years many new gTLD registries have been stomping the pavement and doing whatever they can to convince investors to buy domains with their extensions. When investors purchase the domains, they are the customers of both their registrar and ultimately the registry.

The registrar and the registry have done their job…..they just convinced you to register a domain name. The ball is now in your court to decide what you’re going to do with it to provide a return on your investment.

It is NOT the registries responsibility to support the reason why you registered the domain. I know this may seem like bad news but the registries do not have a responsibility to ensure you get a return on your investment….that’s your job.

The only time a registry will possibly be concerned is if the net position of new registrations and renewals goes into a negative trend. If this is the case, they will attempt to stimulate demand through advertising efforts, but they are very unlikely to try and rescue your investments.

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mgilmour
Happy to help out Jim. Repeatable revenue is one of the reasons why I like traffic monetisation so much.
13 February 2018
mgilmour
Many thanks for your comment....you've been in the industry for a while! I'd love to have a chat with you directly if you have som... Read More
14 February 2018
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My Business Success!

As many readers already know I’ve been relating my efforts of attracting birds to my yard to starting a new business. In the last article in the series I wrote about trying to develop a new market vertical for my burgeoning bird business. So how’s it going?

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Like any good entrepreneur I tried a number of different techniques to attract clients to my offering. Applying the marketing principles of product, price, placement and promotion I began testing the market and then evaluating the results.

My wife had given me some bird seed (ie. the product) for Christmas as a present and I scattered these liberally across the lawn and in the feeder. The result, pigeons. I have nothing against pigeons but they weren’t the market I was trying to reach and to be frank with you….they are complete pigs and ate all of the seeds.

This is similar to a new business taking a scatter gun approach to marketing to see if there are any bites on their product or service. More often than not, you get a lot of tyre kickers that talk a lot, don’t buy and waste your time.

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Wolftalker
Analogy good. And Lorikeets and Cockatoos - fab!
11 February 2018
mgilmour
I must admit that I'm having a great time watching the birds out my window..... :-)
12 February 2018
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