Marketing That Matters

THE SOCIAL VENTURE NETWORK SERIES marketing that matters 10 PRACTICES TO PROFIT YOUR BUSINESS AND CHANGE THE WORLD Chip Conley Eric Friedenwald-Fishman Marketing That Matters Copyright © 2006 by Eric M. Fishman and Stephen Townsend Conley All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Permissions Coordinator,” at the address below. Berrett-Koehler Publishers, Inc. 235 Montgomery Street, Suite 650 San Francisco, California 94104-2916 Tel: (415) 288-0260, Fax: (415) 362-2512 www.bkconnection.com Ordering information for print editions Quantity sales. 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First Edition Paperback print edition ISBN 978-1-57675-383-5 PDF e-book ISBN 978-1-57675-964-6 2008-1 Copyediting by PeopleSpeak. Interior design and production by Beverly Butterfield, Girl of the West Productions. Cover design by Leslie Waltzer, Crowfoot Design. Is it nurture or is it nature? In Chip’s case, his sense of social responsibility is deeply rooted in what he’s learned from his parents, Fran and Steve Conley. Eric dedicates this book to his parents, Paul and Sherry Fishman, who demonstrate that ethics, vision, and love always win. This page intentionally left blank Contents Letter from the Editor of the Social Venture Network Series Acknowledgments Introduction: Why Marketing Matters 1 Don’t Fear Marketing Practice 1: Use Marketing as a Core Business Strategy vii ix 1 13 27 41 59 77 93 111 129 147 165 2 Know Yourself Practice 2: Build Upon Your Mission 3 What Is Your Definition of Success? Practice 3: Define Your Goals 4 Know Your Audience Practice 4: Be Aggressively Customer Centered 5 Question Conventional Wisdom Practice 5: Don’t Limit Your Market 6 What’s Driving the Customer Decision? Practice 6: Communicate Value and Values 7 Emotion Trumps Data Practice 7: Connect with the Heart First, Mind Second 8 Build a Community Practice 8: Empower People as Messengers 9 Walk the Talk Practice 9: Be Authentic and Transparent 10 Use the Power of Your Voice to Change the World Practice 10: Leverage Marketing for Social Impact v Epilogue Notes Index About Social Venture Network About the Authors 181 183 193 201 202 vi Marketing That Matters Letter from the Editor of the Social Venture Network Series If you think marketing is nothing but advertising and promotion, Chip Conley and Eric Friedenwald-Fishman will set you straight in this remarkably concise and practical little book. For example, consider this astonishing fact (plucked from the introduction): “With annual sales of more than $125 million, [Chip Conley’s company] Joie de Vivre spends less than $50,000 annually on traditional advertising yet has a greater market share than its hotel competitors.” Take a short trip through these pages, and Chip and Eric will show you how a values-driven approach to marketing can help your business increase profits, gain greater market share, and help you live a richer and more rewarding life. As you might guess, this book does not advocate your grandfather’s concept of marketing. Marketing That Matters sets forth a thoroughly contemporary approach to marketing that is fully in tune with today’s intensely competitive and fast-changing business environment—an approach that will help you position yourself and your company for continuing success in the challenging years ahead. The numerous examples in this book, drawn from the collective experience of companies affiliated with Social Venture Network (SVN) and from the authors’ nearly four decades of experience with their own and other firms, illustrate how valuesdriven companies can succeed in the marketplace while helping make the world better. As Chip and Eric show so clearly, marketing truly succeeds only when it is an authentic expression of a company’s mission and when it embodies the company’s vii brand, expressing what they call “the three Vs: the value, values, and voice of an organization.” Marketing is at the heart of the success of a great many SVN-linked companies. As mission-driven firms, our businesses take naturally to the holistic approach to marketing espoused by Chip and Eric. That explains both why we are bringing out this volume on marketing so soon after the inauguration of the SVN series and why we recruited Chip and Eric to tell the tale. Chip Conley’s Joie de Vivre hospitality chain is a classic marketing success story and an ideal example of how valuesdriven marketing, honestly and persistently pursued, can propel a business into a commanding position in the marketplace. Similarly, Eric Friedenwald-Fishman’s marketing firm, Metropolitan Group, shows dramatically how marketing rooted in just and humane values can win the day, not just for the company’s dozens of corporate and nonprofit clients, but also for the company itself. If you’re looking for insight and practical advice about how to navigate the swirling waters at the intersection of market and meaning, you’ll find them in this book. This pint-sized volume contains a gallon’s worth of wisdom. You’ll want to keep it on your desk and refer to it again and again. Enjoy! Mal Warwick Berkeley, California August 2006 viii Marketing That Matters Acknowledgments This book would not be possible without the generous support of many people and organizations. Chip acknowledges Debra Amador, my Wonder Woman, who was part editor, part researcher, part marketing consultant, and part taskm