A professional marketer recently suggested that the marketing principles I’ve been addressing related to overt benefit, dramatic difference, and real reasons to believe are outdated… they no longer apply since the dawn of category competition.

The example that she cited was that of GM, Ford, and Chrysler perfecting these principles only to converge on a “commodity position” and obviously struggle in the marketplace.

At times it would be easier to draw this conclusion and search for an easier path to resolve our most fundamental marketing challenges. But respectfully, I disagree. These principles are not outdated.  Rather, I think that these tired organizations have forgotten (or possibly can no longer deliver on) the concepts of REAL reasons to believe and DRAMATIC difference. Their products are painfully inferior to their foreign competitors, and sadly, they no longer have a benefit to offer that is more pronounced than 0% financing.

In fairness to their marketers, the weight of the business economic issues plaguing our auto makers (the burden of healthcare costs, etc.) is probably as much or more to blame for this than anything else.

However, when your category becomes crowded, and if ever wellspring of product innovation runs dry, differentiation can always be found in the provision of service… making bold declarations and standing behind them… building new and REAL reasons to believe.

Since she cited the automotive industry, let me direct our focus to Lexus and ask if these principles are in any way failing to serve Toyota. Lexus actually follows through on its lofty ideals that are stirringly articulated in its Covenant with customers:

The Lexus Covenant
Lexus will enter the most competitive, prestigious automobile race in the world.

Over 50 years of Toyota automotive experience has culminated in the creation of Lexus cars. They will be the finest cars ever built.

Lexus will win the race because Lexus will do it right from the start. Lexus will have the finest dealer network in the industry.

Lexus will treat each customer as we would a guest in our home.

If you think you can’t, you won’t…
If you think you can, you will!
We can, we will.

What happens when these ideals are assaulted by real-life problems?  Lexus rises to the occasion.

Nancy Fein, vice president of customer service with Lexus recently told the story of a minor technical glitch that affected some 3,000 of its inaugural LS 400 sedans nearly 20 years ago.

Lexus discovered the problem and responded… NOT by hoping no one would notice…  and NOT by asking their new buyers to return to the dealership for repairs. Instead, they sent some 300 of its executives to the homes of the affected customers to apologize in person, hand-deliver a gift, and repair the problem (with the help of a technician) right there in the customer’s driveway.

Last year, a similar issue arose with some 700 of its ES 350 models that had been delivered with faulty transmissions. In this case, Lexus did ask these customers to return to the dealership to drop off their cars… but not for repairs. Rather - to pick up their BRAND NEW replacement - no questions asked.

Not surprisingly, follow-up surveys show that these customers were MORE LOYAL to Lexus than buyers who experienced no problems at all.

So I ask - is it the principles or the marketers that are outdated?

This entry was posted on Wednesday, January 16th, 2008 at 4:23 pm and is filed under Infinite Return Marketing, Marketing Principles, Customer Experience. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.