Perfect example of Customer Focused Marketing (not advertising)

Below you will find a recent article by Karl Greenberg (Ducati Cuts Marketing Department, Increases Sales) at Media Post posted March 8^th.

Here are a few interesting things to notice about the changes Ducati made….

Ducati dropped its advertising budget for what I would call more of a customer communications approach. I have been talking about this in several recent posts (Hey Advertising Agencies…, DeWalt case study…, Focus… on Strategy). The idea is, stop the ad spend and get back to direct and more credible conversations with customers. According to this article, Ducati turned to events, PR and relationships with their actual customers and admirers – through various Ducati clubs. The idea of customer as influencer is an important piece of the marketing puzzle and Ducati is going in the right direction to achieve this.

They also reexamined their messaging and took a much closer look at their audiences and the benefits to that target and repositioned the brand. The results of having a more direct conversation with your customer and engaging them through marketing efforts Always results in an acceleration (an hopefully and increase) in the sales cycle. This is exactly what Ducati experienced.

Smart thinking, good marketing… it makes brand sense!

Here is the article:

            Ducati Cuts Marketing Department, Increases Sales

DUCATI SEEMS TO DEFY THE laws of marketing physics. The Bologna, Italy-based company is increasing its sales in North America, while having decreased its traditional media exposure.

The company, which saw sales increase 16% in North America--including a 50% spike in Canada--last year, has done so while all but eliminating its internal marketing department and focusing on communications, events, PR and relationships with dozens of independent clubs of "Ducatisti" or Ducati owners.

Ducati set sales records last year in North America at 8,100 bikes, led by the company's Monster nameplate. By contrast, in 2003--when Michael Lock took over as CEO--the company had sold only 4,618 bikes in North America.

Leveraging the Ducatisti in marketing efforts, as well as product design and event planning, is part of Lock's three-year ambition to expand North American market share by redefining the brand. Ducati had been seen as an elite motorcycle and something of a novelty bike for the wealthy.

"We have attempted to modify that perception that we are unapproachable, arrogant, superior. The central goal has been to make Ducati more approachable and more human," he says. "Internally, we drew a comparison between Porsche and Ferrari: that Ferraris are toys for very rich people [while Porsches are attainable.] We positioned ourselves as premium but not unattainable.”

To read the rest of it click to the MediaPost article.

Comments

[Ed Illig]

Spot on Jennifer.

The need and desire to maintain repeatable processes—i.e., revenue generators—at all costs seems to plague many traditional agencies in that they continually pursue the familiar over the effective.

Customer touch points and dialogue is more critical than ever to ongoing revenue generation.

[Jennifer McLean]

Thanks Ed, so true the tried and true or as you say "desire to maintain repeatable processes" is symptom you’ll find almost everywhere you look; corporate America, ad agencies (maybe I should look in the mirror? :)