I was talking to a business owner today who owned a company that manufactures plastic products. As it often does, the conversation turned to marketing. I asked him if he had any of the more common issues - lack of quality sales leads, sales people having a hard time getting in front of prospects, fierce competition, etc. He replied that things couldn't be any better. In fact, he could hardly keep up with the work he had now! And he does it without advertising, marketing, a web site or a sales force.

Amazing! What a great business - what am I doing in the marketing business? I must be crazy.

Of course, I wasn't going to let him off the hook just yet. Upon further questioning it turns out that he has ONE client. Walmart.  And Wally is keeping him pretty busy lately. He's made significant investments in equipment and people to keep up with Wally's demands. Our conversation was going well until I asked him, "What if Walmart stops doing business with you?" (Walmart is known for their loyalty to suppliers....NOT!) His reply? "What if I get hit by a truck?"  He was a little preturbed and more than a little sarcastic.

This is the stuff of shattered dreams and short-sighted disaster in the making. If this otherwise smart business man were to stop and think for a moment, he would put some time in finding ANOTHER Wally-sized client. It's called "mitigating your risk" and bankers love it.

Marketing isn't just for when things are going bad. Marketing can help you create a business that can withstand threats and unexpected downturns in business. I said a prayer for Plastic Man. He's gonna need it.

Pete Monfre is president of Clarity Marketing Support. He can be reached at 512-401-3849. (He's really not so smug. He just hates it when people put themselves in positions of severe risk.) Read his other ramblings at A Moment of Clarity.

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I was having a great conversation with a very cool business lady the other day and she used a term I had never heard before, "moderate failure". We were talking about business that are failing so gradually they don't even know it's happening. This "moderate failure" is often a result of poor or inconsistent marketing practices where the business seems to be performing acceptably but the reality is that the company's growth rate is insufficient to provide long term profitability and battle natural customer attrition.

The more I thought about it, the more freaked out I became. The concept is similar to the hidden costs of doing nothing. I’ve met many CEOs who were thrilled with their company’s 4% growth rate – while bragging that they don’t “do marketing”. The fact is that that measly growth rate should be more like 8-12% (based on benchmarking studies of similar companies in the same industry) if the company was sustaining a proper marketing and sales program. Ouch!

Moderate failure is difficult to spot if you don’t measure and track performance. I am stunned by the number of companies that don’t track basic metrics such as number of leads, source of leads, conversion, cost per lead, etc. Yet these same companies are quick to tell me I what types of marketing don’t work for their business. Too bad those same tactics are working very well for their competitors.

Moderate failure can sneak up on you. Years ago, as a fledgling CEO, I was stung buy this creeping menace. We were able to sustain operations for several years before we finally realized that our business development activities were not enough to sustain the business. As our revenue hit a plateau and our debt increased, it took me a while to figure out that we were not simply at the low point of a curve – we were gradually failing. I wish I could tell you that my superior leadership skills saved the company. The fact is – I got lucky. We won a large, cash cow account that allowed us to focus on revamping our operations and systems to better track our performance while reducing our debt significantly.

Consistent marketing and sales process can eliminate the risk of moderate failure. Plus, if you know your sales team is firing on all cylinders, you’ll be able to sleep a whole lot better.

Why do so many agencies and marketing types think branding and selling are mutually exclusive? Everything I do is designed to create response. At the same time, any outgoing promotion must be considered in terms of its impact on the company's brand. To ignore this aspect is a lost opportunity.

There are times when pure branding makes sense. Like, for example, if you are an "evil" oil company. Or a giant retailer with huge distribution systems and the dollars to match. But back here on earth, the typical company needs more than simply a good image. It needs to make the damn sales curve go up. And in order to make this happen, it needs to create an image of credibility and a perception of value. That's where branding comes in. However, pure branding approaches don't make the fat lady sing, er, I mean, the phone ring.

That's why I always combine sound branding approaches with direct response techniques. My clients don't want to just look good. They need highly qualified leads. And usually they need them yesterday.

So next time your agency wants you to run that full color, full page ad,  ask them how it is supposed to directly contribute to your sales pipleline. And when it doesn't, call me.

What is your position? Do you have a position?

Understanding the concept of strategic positioning is a critical but often overlooked aspect of successful marketing. It is a result of communicated perceptions about a product or brand that is different from image. A position is a distinct place in the mind of your customer, a point that is usually set in relation to the competition. Closely related to brand distinction, a well-defined positioning strategy can be used to create differentiation and quickly communicate the uniqueness of a product or service.

Your position is what you stand for in the mind of the customer. Are you known as an exclusive, high priced option or as having the best service in your industry? Adopting a position that is owned by your competition is a common mistake. If a competitor is well known for reliability, it is ill advised to try and adapt reliability as your positioning. The idea is to be relevant to the customer and to find an attribute that makes you unique.

For example, who do you think of when it comes to cola drinks? Most people say "Coca-Cola". Coca-Cola rules the category of cola drinks. Think of a category as a ladder. On each rung is a position. On the top rung of the cola ladder sits Coke. This translates to larger market share and staying power. On the second rung sits Pepsi. One the third rung, RC Cola. On the fourth rung - who cares? They are not in the game.

It is very difficult to unseat the top rung position. In fact, in the early cola wars, a group of smart people decided to compete with Coca-Cola. These wise folks knew that competing with Coke head-on would be suicide. Instead, they decided to create a refreshing, carbonated drink that would take the position as the antithesis of Coke. Instead of a brown liquid, it was clear. Named, 7-Up, this product was perfectly positioned as "The UnCola" - thus creating a new category (lemon/lime carbonated drinks), taking the top position and taking massive market share from the leader in the industry, Coca-Cola. (Check out "The New Positioning" by Jack Trout).

Developing a positioning strategy is highly dependent on the techniques of marketing research. I have used the following seven steps to help industrial and other business to business companies identify the most profitable position.

1. Know what your customer wants.
Start with listing all the possible wants and needs that your product or service may satisfy.

2. Identify the competitors.
Primary competitors are those that compete to satisfy the core need and usually are very similar to your offerings. Secondary competitors are indirect competitors, those that do not come immediately to mind.

3. Understand how your customers evaluate their options.
The standards people use to choose from similar options are the foundation upon which a position is built. You must understand these options and how the buyer weights them. Avoid a position that is low on the customer's list of standards.

4. Understand how your competitors are perceived.
Positioning is always in relation to competitors. Research how each primary and secondary competitor positions itself. In many markets, competitors may have no position or a weak position making it easier to identify the most beneficial position.

5. Watch for gaps.
Upon analysis you may identify a category that is not being served by the competition. If other factors indicated that the category is viable, being the first to offer a product or service is an advantageous position.

6. Plan and carry out the strategy.
Once the target market has been selected and the desired position determined, you must design a program that ensures that every piece of information about the product or service will create the intended perception. This is where a succinct positioning statement and well thought out brand strategy become important.

7. Monitor the position.
Markets and categories shift over time. It is important to make sure that the intended position is the one actually achieved by the product or brand. A position may need to be slightly adjusted over time according to changes in the market place.

Pete Monfre is the president of Clarity Marketing Support, Inc., a marketing firm that helps technology companies find new customers and keep them longer. Learn more at http://www.claritymarketingsupport.com.

I had an experience recently that shouldn't have surprised me but it did. It happened as I started working with a $40 million software company. My job is to help the company redefine its vision and follow through with detailed marketing and tactical plans.

To gather the necessary information, I was participating in a conference call with the company's sales people. I had a few minutes to ask some questions and proceeded to drill them about the details of how they sell, what's most important to prospects and other key details. The team was enthusiastic to share their ideas and experiences and a lot of good information came from the session.

What surprised me is that many of these people said that the previous marketing team never came to them to get their input and perspective. I'm no genius but it seems to me that the sole job of marketing is to support sales. After all, nothing happens until a sale is made.

The sales team has the knowledge, experience and day-to-day contact with the most important people in our world: our customers! If you are looking for answers, ask the sales team first. They should be among the most important people on your list.

In the coming weeks, I'll be spending more time with these valuable folks, picking their brains and learning what it takes to sell this complex product in the real world. After all, isn't that the point?

Pete Monfre is the president of Clarity Marketing Support, Inc., a marketing firm that helps technology companies find new customers and keep them longer. Learn more at http://www.claritymarketingsupport.com.