The Hindu Business Line : Don't repeat mistakes that US cos made, says Trout

IN an insight into the dynamics of marketing strategy, Mr Jack Trout on Thursday exhorted Indian corporates to learn from the mistakes of the US and evolve its own strategy to consolidate its position in the global economy.

Mr Trout, an authority on marketing strategy and President of Trout & Partners, said, "You don't make the same mistakes that the US made." Analysing the experiences of global brands, he stressed that corporates should remain focussed on customers, total quality management. Marketing strategy cannot be built on mere branding of a product but by striking the key differentiator between competition in terms of what the customers want and not by merely presumptuous decision to position the brands, he said at a summit of corporates here. The summit was organised by the Jain group of educational institutions.

In an intensely competitive market, right decisions made in a business context alone would yield good results, he said, adding clear marketing strategy should be built around capturing the minds of customers through simple messages and not through confusing slogans so as to reflect the real value of the products and services because "minds can lose focus allowing competition to gain the vacuum created by the confusion".

He cited the examples of Coke, BMW (automotive brand), the express service companies such as Fedex and DHL to relate the complex decisions that daunt in retaining their leadership positions in the market. Coke kept changing its campaigns from its original `Real thing' to `An Edsel from Atlanta' to New Coke et al. But it had to revert to its original `Real thing'. In contrast, BMW stuck to its slogan `Ultimate driving machine' to retain its brand value. It did not resort to complex slogans to highlight its high-technology cars.

Mr Trout said marketing strategy should be based on differentiation through pricing, attitude that creates regard for brands and consumers' choice.