| If you are a marketer with
line responsibility today, you are likely facing increased
pressure to produce results. You are likely producing results
with a reduced budget. And you are likely reminded frequently
that favorable results require speed-to-market.
Given these pressures, it’s understandable that you
strive to take action decisively and quickly.
But before you take action (and even before you gather
information to guide your decision about the best action
to take), have you stopped to make sure the decisions you
are making are addressing the most important issues? If
not, you may be trying to solve the wrong problem.
No doubt you make countless decisions every day, both as
an individual and in groups or teams. But you must have
a reliable process to assure that before you actually make
a decision, the question you are asking is indeed the right
question.
In marketing, perhaps more than any other business discipline,
outcomes are not only dependent on the quality of the decisions
you make but also on the way you frame decisions.
In their fine book called Winning Decisions (J. Edward
Russo and Paul J.H. Schoemaker, Random House, 2003), Russo
and Schoemaker report the following two stories of framing
marketing decisions—one resulting in dramatic, category-changing
business growth, and the other resulting in catastrophic
losses.
When John Sculley—best known now as the former CEO
of Apple—was VP of Marketing at Pepsi, he desperately
searched for packaging to compete with the hourglass bottle
used by Coca Cola. He spent millions of dollars researching
new bottle designs before he realized he was asking the
wrong question.
As Sculley writes in his autobiography Odyssey (Harper
& Row, 1987), Pepsi executives were certain that the
classic bottle was Coke’s most important competitive
advantage. He came to realize, however, that the company
did not know enough about what consumers wanted, and, therefore,
management could not make effective marketing decisions.
To explore the broad question of consumer preferences,
Sculley studied how families actually consume Pepsi and
other soft drinks in their homes. He learned what all marketers
of snack foods now know: people will consume as much as
you can persuade them to buy. “It dawned on me that
what we needed to do was design packages that made it easier
for people to get more soft drinks into the home,”
he recalls.
So he reframed the decision by first asking what the customer
wanted.He writes: “It became obvious that we should
change the rules of the competition entirely. We should
launch new, larger and more varied packages.”
Soon after introducing the new packaging, Pepsi’s
business grew from a distant second to a strong competitor
for first in the category, and drove the Coke bottle into
virtual extinction.
In contrast, consider the failed decision framing of Encyclopedia
Britannica, long the quality leader of multivolume encyclopedias.
In the mid-90s, just five years after Britannica had set
sales records and achieved market dominance, sales plummeted
more than 50% due to the introduction of the CD-ROM encyclopedia,
like Microsoft’s Encarta, with color graphics, automatic
search and low production costs.
Nevertheless, throughout the period, Britannica continued
to sell encyclopedia sets for almost as much as it cost
to buy a computer. It is now clear that it framed its product
development and sales issues as a print publisher, missing
the demands of the market to reframe its business as one
of information provider to children and adults in the new
world of computers and the coming Internet explosion.
As these stories teach, decision frames can work for us
or against us. Russo and Schoemaker explain, “The
way we frame a problem exerts enormous control over the
options we recognize and the solutions we choose.”They
suggest conducting a “Frame Analysis Audit”
to analyze a current frame, a frame you may use or the frame
of someone on your team,by asking such questions as these:
• What issue does the frame address?• What
aspects of the situation are left out of consideration?
• What does the frame emphasize and minimize?
Lesson for marketers: before you rush to make a decision,
consider the frame you are using, because it can direct
you to the best options or cause you to miss opportunities
completely
|