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‘Dracula’ marketing
Bubuwit,
the industry mole, says with good authority that
understanding all the components of the marketing mix and
its interrelationship enables the marketers to avoid the
practice of “Dracula marketing,” or creating
self-inflicted wounds brought about by too much short-term
orientation and an overemphasis on price and promotions
without any brand-building activities. Bubuwit tipped off
an automotive player when a price war erupted among the
other existing players in the industry. The former did not
join the fray as it has consistently built up its brand
(Car of the Year award, etc.). And despite not joining the
price war, it has managed to grow by more than 80 percent
(average growth of the industry then was in the 24
percent-to-25 percent range) and, finally, wrestled market
share to gain a marginal leadership position.
Divestment strategy
A word of
caution about partial divestment. Bubuwit exposes an
office automation retailer was strongly advised by their
long-time consultant to close down an unprofitable branch
if it will not show profit again, to the protest of their
younger consultant. Concerned about the possibility of
losing goodwill (permanent and irreversible) in that major
location, the better alternative was to invest in quality
marketing programs, as well as provide quality leadership
in the local area to make the branch profitable and stay
in business. The branch was, after all, part of the key
distribution strategy that the company aimed to accomplish
as part of its corporate mission.
The moral
of the story, according to Bubuwit, is to never consider
the tangible or financial aspect of the business alone.
The intangibles, like reputation and goodwill, are equally
as important in building a business so long as it can
bring in long-term profit.
Another
divestment strategy is merger, which can be effected when
funds are unavailable but a redefinition of the business
can make the firm profitable again. Selling the business
is another option. When all else fails, file liquidation
or even bankruptcy, Bubuwit suggests.
Recognize good talkers
Talkers
aren’t all the same. Bubuwit says some people talk to a
few friends; some talk to everyone on the planet. Some are
convincing; some are full of hot air.
But beware
of a talker who gets sympathy from people he/she bumps
into and destroys your credibility. Bubuwit says we all
know this sort of person—the one who can’t help talking
about how miserable his/her life is. | 
