an association’s tale of strategic marketing 12:15 pm – 1 ... · an association’s tale of...

August 14 – 17, 2004 Minneapolis, MN

An Association’s Tale of Strategic Marketing

12:15 pm – 1:45 pm Tuesday, August 17, 2004

Clay Atkinson

Partner Market Street Partners

Barbara Guffey

Market Street Partners

This session is sponsored by:

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An Association’s Taleof Strategic Marketing

ASAE Annual MeetingAugust 17, 2004

Background: What is “Brand”?

What is “Positioning”?

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“An orange…is an orange…is an orange. Unless, of course, that orange happens to be a Sunkist, a name eighty percent of consumers know and trust.”

- Russell L. Hanlin, CEO, Sunkist Growers

BACKGROUND: BRAND/POSITIONING

Textbook Definition of “Brand”:

“A name, term, symbol or design, or a combination of them, which are intended to signify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”


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Street Definition of “Brand”:

“The piece of real estate you own in your customer’s mind.”


Mind Share vs. Market Share:

Mind share - subliminal, emotional, powerful

Market share - measurable, logical, quantifiable


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Customer’s Perspective:

The power of a brand lies in its ability to influence purchasing behavior. But a brand name on a package is not the same thing as a brand name in the mind.


Customer’s Perspective (cont.):

A successful branding program also is based on the concept of singularity. It creates in the mind of the prospect the perception that there is no product on the market quite like yours.


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Brand Framework:

How do your core strengths mesh with your members’ values?

The more your association’s brand is positioned to appeal to your members’ emotions, values, and beliefs, the higher their level of commitment to the organization.


Brand/Positioning Framework:


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Summary

Branding is an extraordinarily complex subject. The essence of it, however, is that...

“it exists in the minds of your market”

and “positioning,” in particular, is what gets you there.


What is “Positioning”?

“A message that meets the needs and wants of your target audience in a way that meaningfully differentiates you from the competition.”


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Stage 1

Discovery: Create a Strategic Framework

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Discovery: Create a Strategic Framework

Purpose:

– Develop an agreed-to base of background information on the market/target customer, competition, and the internal environment

– Establish objectives, the opportunity or issue areas, and evaluation criteria used to evaluate positioning alternatives

– Set the environment for success

STAGE 1: DISCOVERY

Discovery (cont.)

Deliverables:

– A clearer definition of the market, target audience and related attributes, attitudes, beliefs and behaviors

– Agreed-to business insights, issues and opportunities

– Definition of key strategic evaluation criteria

– A brief summary of findings and preliminary recommendations where appropriate

– Increased knowledge about what is essential to know related to the market and to internal capabilities

STAGE 1: DISCOVERY

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Case study: Discovery

AASP-MNAlliance of Automotive Service Providers - Minnesota

Project Objective:

To revise and improve AASP-MN’s brand to assist in reaching the organization’s goal of raising their visibility both within the industry and with its existing members.

CASE STUDY: Discovery

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Project Objective (cont.)

Related issues to be addressed:

– What are the target audience’s beliefs, behaviors, attitudes, and attributes?

– Who and what compete with AASP for the attention of its target audience?

– What message most differentiates and strengthens AASP?

– How to implement both the message and look?– How to keep/increase the value and visibility of

membership in AASP?


Methodology

– Completed internal backgrounding interviews with AASP staff and three AASP Advisory Committees (Mechanical, Collision, AAIM)

– Completed phone interviews with past members of AASP (mechanical/collision) and non-members (mechanical/collision)

– Reviewed internal market, client and competitive background information, including AASP’s 2002 member survey results, planning retreat summary, 2002 and 2003 Workplans, program/member benefit summary, 2003 budget, 5-year membership history, dues structure, and Bylaws


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Target audience demographics

Automotive Service Industry• Independently-owned shops

- Mechanical- Collision- Suppliers to those shops

• Predominantly male• Majority live and work in Minnesota

- Two-thirds in the metro area- One-third in greater Minnesota

• Approx. 75% been in business 11+ years• Approx. 75% are between the ages of 40-59

- Mechanical shop owners - 89%- Greater Minnesota shop owners - 82%


Market environment/trends

Environment

• Business is down, flat, brutal- Economy in tough shape- Better-made vehicles/longer warranties- Dealers getting more service business- Fewer accidents- More people spending insurance settlements elsewhere


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Market environment/trends (cont.)

Trends

• Increasing control by the insurance industry- Collision repair- Extended warranties

• Rising business costs- Workers comp- Medical

• Consolidation and increased competition from chain stores

• Keeping pace with technology…difficult for some


Market environment/trends (cont.)

Market

• Industry lifecycle is currently in Mature stage, with elements of Competitive Turbulence still remaining

- Dictated largely by chains, recognized brands and insurance companies

- Independent shops have, individually, a relatively low share of market/share of mind and limited clout


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Target audience definition (revised)

• The core audience can be defined as those who:- Are progressive- Have elevated thinking beyond day-to-day noise - Possess collaborative instincts and networking interests

• The objectives of this branding campaign therefore should be expanded to include:

- Moving current “mid-range” members toward being “core,” or more active, members

- Attracting and retaining members who match the target audience profile by making an effective and emotional connection with them


Target Audience Profile - Attitudes, Attributes, Beliefs, Behaviors

• Those involved with the association generally view it quite positively

– However, they also do not have much emotional investment in it

• Owners/managers perceive themselves as being “too busy” to join and/or participate in an association

– Probably true…like everyone else– But, suspect many are also not particularly efficient with time usage

• Target audience is generally conservative– Spend their dollars carefully – Slow to change and/or must be convinced of the need– Many have “bunker” mentality


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Target Audience Profile (cont.)

• Mechanical and collision perceive themselves as having differentcharacteristics:

– “Blue collar” vs. “white collar” perceptions– Dissatisfied members feel the association focuses too much on the

“other” market’s interests (i.e. mechanical vs. collision)

• Mechanical and collision share some common ground:– Neither have an instinct for networking or collaborating– Membership or activity level not truly about time/money, but “value”– Both are independent, both serve local markets– They share common enemies:

• Insurance companies• Chains


Competition

• Direct Competition– ASA, AAA, ATRA, MSSA, etc.– Suppliers– NAPA - Bumper to Bumper– “I’m independent”

• Indirect Competition/Certification programs:– A C Delco– CarX– AAA– Certicare– Golden Wrench


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Competition (cont.)

• Other than a core group, most do not know what “AASP” standsfor, adding to competition and confusion. Former and non AASP members guessed:

– American Automotive Council– Automotive Association of Service Professionals– American Alliance of Service Providers– Automotive Association for something– Automobile Association of Minnesota– Automotive Aftermarket Service Providers– Automobile something– No idea– Don’t know– Not a clue


Competition (cont.)

• Direct competitors do not seem to have strong images/messages

• Some chains and other indirect competitors do have strong share of mind


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Internal

• From our perspective, AASP-MN is trying to be too many things to too many people, leading to:

– Lack of core focus– “Menu mentality,” confusion in mind of the target market– Belief that something new in programs and services will address or

correct the issues– Increased administrative workload


Internal (cont.)

• As a result of multiple focuses, AASP’s current message is murky, weak, or misunderstood

– Message diluted by number of offerings and program similarities• Training workshops• Benefit programs• Workforce initiatives

i.e. Certification programs - it would be difficult and expensive to have an effective consumer-level certification program. Already cluttered.

– No point-of-difference in mind of the target audience


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Internal (cont.)

• From our perspective, it is difficult to ascertain whether or not AASP-MN is a member-driven organization

– Out of a pool of 700+ members, it appears to be driven by less than 50 who are involved and active

– Staff has indicated that members don’t know what they want


Internal (cont.)

• It appears that AASP-MN has not yet coalesced into a singular “automotive service” association

– Some “white collar” versus “blue collar” comparisons– Some collision non-members felt the association was focused more on

the needs of mechanics– Also, some non-members indicated that they felt the association focused

more on the larger independents

• Yet, these two related services, mechanical and collision, remain glued together by some common interests

– No animosity exists– Nor is there much unsolicited interest in working together


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Issues and Opportunities

1. How to build a more meaningful, focused AASP-MN message/brand

– Meets needs/wants of the target audience– Meaningfully different from competition– Addresses trouble with message/program “focus”– “Value” must be communicated

Need to have clear and meaningful “mind share” before the objectives can be met


Issues and Opportunities (cont.)

2. Strengthen “common ground” between mechanical and collision:

– Independent-minded– Conservative– Need for more business professionalism

...and play off of “common enemies:”

– Insurance companies– Chains– Time constraints– Current economy– Some legislation


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3. Bring new emotion to the effort

– People first make their decisions emotionally– Emotion (and strategies) focused on a narrower front will build

excitement

4. Build association strategies around industry lifecycle and members’ share of market elements

– The association needs to reflect the realities of their clients



5. Avoid any consumer-level focus. Strength may come from “behind the scenes”

– Competition at this level is too intense– Too much clutter and noise are “certification” and brand

6. Consider attracting new members that don’t have networking/collaborative tendencies, for the sake of clout

– May be a way to reach non-networking majority


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Positioning areas of opportunity

1. Strength in numbers/One voice“We” are strong because we have come together to improve the status and strength of independent auto service providers.

2. “Fight for me”“You,” the association “fight for me” by strengthening my

business and professional capabilities and by defending us against our common enemies.


Positioning areas of opportunity (cont.)

3. Success at “what you want to do”We are best positioned to help you succeed at what you want to do because we are local and Minnesota member driven.

4. Better understand you, better serve youWe work very hard to understand your specific needs and wants as a business owner here in Minnesota. Being here helps, but we also “listen” carefully to you so we can get done what needs to get done.


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Stage 1

Discovery: Exercise

Discovery

Exercise:

One of the steps in Discovery is to gather background information on the:

– Market/Target customer– Competition– Internal Environment

This exercise is going to concentrate on gathering information relative to the Market/Target customer

STAGE 1: DISCOVERY

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Exercise: WITS (Walk in Their Shoes)

You are a member of (association):

Your occupation is:

You live in (city):

Your annual income is:

Your political beliefs are:

In your spare time, you:

STAGE 1: DISCOVERY

Exercise: WITS (Walk in Their Shoes) cont.

QUESTIONS SPECIFIC TO YOUR ASSOCIATION MEMBERSHIP:

1) What are your primary reason(s) for being a member?

2) What are your key attitudes and beliefs about the association?

3) What core message would you most like to hear from them?

4) Why don’t you quit (the association)?

STAGE 1: DISCOVERY

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Stage 1 (cont.)

Discovery: Criteria

Criteria

At this stage in the process, criteria must be established against which to measure all strategic options

It is a critical tool which helps evaluate and challenge your strategic alternatives, narrowing your focus to the strongest, most meaningful approaches


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Case study: Discovery (cont.)


AASP- MN Criteria

– Meets the needs and wants of present and potential members?

• Solves a problem for them• Provides an opportunity for growth

– Meaningfully differentiates us from direct and indirect competition?

– Is interesting and emotionally appealing to our present and potential members?

– Can we substantiate it?


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AASP- MN Criteria (cont.)

– Can we deliver on/implement it?• Affordable/ROI• Easy-to-use• Easy-to-communicate

– Is it supportable by the Board and the members?

– Appropriate for short and long-term?


Stage 1 (cont.)

Discovery: Sample criteria

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The following criteria can be used to evaluate a broad range of strategic alternatives:

Customer/Market Related

• Does it meet the needs and wants of our target audience?- Existing members- Past members- Potential members

• Does it meet the needs of our "influencials?" - Investors- Suppliers/providers- Intermediators- Delivery systems- Other publics/stakeholders

• Does it fit our defined positioning/message?

STAGE 1: DISCOVERY

Offers sufficient opportunity

• Does it provide adequate potential – Long term? Short term?• How does it stack up relative to our other options?

Competitive Related

• Is it unique/differentiated, does it provide perceptible differences?• Does it have a technical/protectable advantage?• Does it have an emotional advantage?• Is it easy to compare, does it stand out?• Is it a sustainable advantage?

STAGE 1: DISCOVERY

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Internal Related

• Does it fit the overall strengths and direction of our association?- Mission statement- Goals/Objectives- Business definition- Consistent with current image - Consistent with experience- Uses existing distribution/communications approaches

• Can it be leveraged?- Existing strength- Existing image- Our members

- Other influencials

STAGE 1: DISCOVERY

Internal Related (cont.)

• Will it lead to:- Exposure for the association?- Meeting our goals and objectives?- Increased loyalty?- Relationship building?

• Does it cannibalize from our other/existing efforts?

STAGE 1: DISCOVERY

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Internal Related (cont.)

• Do we have the capability to execute it?- Can produce/deliver on promise- Talent/personnel- Can effectively communicate- Can measure

• Does it meet our financial requirements?- Meets financial objectives/"bottom line" requirements- Cost-effective- Can afford marketing "cost of victory”- Is reasonable level of risk - Meet cash flow requirements- Short and long term

STAGE 1: DISCOVERY

Stage 2

Exploration: Generate Options

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Exploration (Explore options)

Purpose:

– Expand, build and develop strategic alternatives and other elements based on opportunity areas developed in Discovery

– Be creative, bond the project team, and have fun

STAGE 2: EXPLORATION

Exploration (cont.)

Deliverables:

– A number of strategic alternatives that respond to the issues and opportunities

– A summary of the results to be used for the Groundtesting effort


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Exploration (cont.)

Guidelines:

– No judging (“and,” not “but”)– Building– Second level listening– Positive attitude– Tolerance for chaos– Sense of abundance– Comfortable environment– No conference rooms!


Case study: Exploration


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Exploration

Generated 244 ideas around four positioning areas of opportunity:

1. Strength in numbers/One voice“We” are strong because we have come together to improve the status and strength of independent auto service providers.

2. “Fight for me”“You,” the association “fight for me” by strengthening my

business and professional capabilities and by defending us against our common enemies.

CASE STUDY: Exploration

Exploration (cont.)

3. Success at “what you want to do”We are best positioned to help you succeed at what you want to do because we are local and Minnesota member driven.

4. Better understand you, better serve youWe work very hard to understand your specific needs and wants as a business owner here in Minnesota. Being here helps, but we also “listen” carefully to you so we can get done what needs to get done.

CASE STUDY: Exploration

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Stage 2

Exploration: Exercise

Exploration (cont.)

Exercise:

One of the goals of Exploration is to “open up your mind” through a variety of creative exercises:

- Imagery - Mind mapping- Free association - Role play- Excursions - Six Thinking Hats- How-To’s - WITS- Brainstorming/Negative Brainstorming

For this exercise we are going to utilize a technique known as Problem Reversal


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Exercise: Problem Reversal

Issue:

Screw it up Solve it


Stage 3

Groundtest the alternatives

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Groundtesting

Purpose:

– Evaluate and challenge the strategic alternatives, narrowing the focus to the most meaningful, “robust,” and most-likely-to-succeed strategies and tactics

– Test the alternatives both internally and externally to determine staff and market reaction

STAGE 3: GROUNDTESTING

Groundtesting (cont.)

Deliverables:

– Strategic approaches that respond to the criteria and the client’s specific issues and opportunities

– A strategic action plan that includes steps, a timetable and assigned responsibilities

STAGE 3: GROUNDTESTING

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Case study: Groundtesting


Groundtesting

Using AASP’s list of criteria, the project team winnowed down 244 positioning options to a Top Ten list

Further evaluating against the same criteria, the team narrowed down these Top Ten to One positioning selection (others to be used as support copy)

CASE STUDY: Groundtesting

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Final AASP-MN positioning

Building a better industry…one shop at a time

CASE STUDY: Groundtesting

Stages 4/5

Alignment/Implementation

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Alignment/Implementation

Purpose:

– Create a blueprint for the implementation of strategic initiatives

– Provide immediate (as well as future) direction for association staff, Board, and members

STAGES 4/5: ALIGNMENT/IMPLEMENTATION

Alignment/Implementation (cont.)

Deliverables:

– A strategic action plan that includes:

• specific steps• timetable• assigned responsibilities

STAGES 4/5: ALIGNMENT/IMPLEMENTATION

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Case study: Alignment/Implementation


Alignment

At this point, AASP-MN staff moved into tactical mode, identifying options for implementation of strategic direction (examined communications plans, printing options, etc.)

CASE STUDY: Alignment/Implementation

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Gain approval

On August 19, 2003,The AASP-MN Board readily approved the recommended new positioning and related plan. This was due to:

– The Board’s early buy-in to the planning process– The cross-functional nature of the project team– The project team’s commitment and involvement

throughout the entire process


Implementation (agency)

• Logo• Typography• Color• Message• Support Copy• Deliverables (web, brochure, etc.)


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Before:


After:

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Before:

After:

Summary

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The five stages of a meaningful plan:

1. Discovery: Create a strategic framework

2. Exploration: Generate options

3. Groundtesting: Challenge the alternatives

4/5. Alignment/Implementation: Gain approval and implement

SUMMARY

An Association’s Taleof Strategic Marketing

ASAE Annual MeetingAugust 17, 2004

WITS exercise – Walk in Their Shoes You are a member of (association): Your occupation is: You live in (city): Your annual income is: Your political beliefs are: In your spare time, you: QUESTIONS SPECIFIC TO YOUR ASSOCIATION MEMBERSHIP: 1) What are your primary reason(s) for being a member? 2) What are your key attitudes and beliefs about the association? 3) What core message would you most like to hear from them? 4) Why don’t you quit (the association)?

S t r e e t w i s e B u s i n e s s S o l u t i o n s

ASAE Annual Meeting August 17, 2004

The following criteria can be used by associations to evaluate a broad range of strategic alternatives. Customer/Market Related • Does it meet the needs and wants of our target audience?

- Existing members - Past members - Potential members

• Does it meet the needs of our "influencials?"

- Investors - Suppliers/providers - Intermediators - Delivery systems - Other publics/stakeholders

• Does it fit our defined positioning/message? Offers sufficient opportunity • Does it provide adequate potential – Long term? Short term? • How does it stack up relative to our other options?

Competitive Related • Is it unique/differentiated, does it provide perceptible differences? • Does it have a technical/protectable advantage? • Does it have an emotional advantage? • Is it easy to compare, does it stand out? • Is it a sustainable advantage? Internal Related • Does it fit the overall strengths and direction of our association?

- Mission statement - Goals/Objectives - Business definition - Consistent with current image - Consistent with experience - Uses existing distribution/communications approaches

• Can it be leveraged?

- Existing strength - Existing image - Our members - Other influencials

• Will it lead to:

- Exposure for the association? - Meeting our goals and objectives? - Increased loyalty? - Relationship building?

• Does it cannibalize from our other/existing efforts?

• Do we have the capability to execute it?

- Can produce/deliver on promise - Talent/personnel - Can effectively communicate - Can measure

• Does it meet our financial requirements?

- Meets financial objectives/"bottom line" requirements - Cost-effective - Can afford marketing "cost of victory" - Is reasonable level of risk - Meet cash flow requirements - Short and long term

1624 Harmon Place, Suite 201, Minneapolis, MN 55403 www.mktstreet.com

Market Street Partners specializes in providing “streetwise business solutions from a market perspective.” Our hands-on experience with over 150 clients in thirty industries translates into understanding what works and what doesn’t – on the street – where it really counts. For more information on Market Street Partners please contact Barb Guffey at 612-332-2120.

Issue:

Screw it up Solve it

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