Last week, the fraud and conspiracy trial of former Enron executive Kenneth Lay and Jeffrey Skilling started. The trial is perhaps one of the most anticipated in the history of corporate America.

The aftershocks of what started on Oct.16, 2001 -- the day that Enron reported $618 million in losses that touched off the scandal -- have already changed the business landscape.

The entire Enron episode exposed corporate America at its worst. We can only hope the trial closes this ugly chapter for good.

The court of law may eventually find Lay and Skilling not guilty, but the court of public opinion has already rendered its verdict.

While the lessons are many, the most important is that reputations -- business or personal -- are nothing without credibility.

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Most marketing falls into one of two categories: business to consumer (B2C) and business to business (B2B). Understanding the distinctions is important to shaping and executing the right marketing approach.

Consumer motivation centers around personal needs. We need better cleaning products, more luxurious cars, better tasting food, more affordable medicine, etc. Sometimes, we turn to our favorite brand; sometimes, we comparison shop. We make the decision and complete the transaction quickly.

Business motivation centers around company needs. We need to cut costs, increase revenue, improve security, hire better people, etc. This process is far more complicated. We turn to trusted sources for referrals, issue RFPs, interview prospects, and usually hold a series of meetings to make a decision. Then, we start working on the contract.

The difference in the two purchase processes stems from the long-term implications. Ninety-nine percent of consumer purchases have no long-term implications. By contrast, ninety-nine percent of business purchases do have long-term implications. Individual reputations and even jobs are on the line with each business purchase.

B2C marketing can focus on features and translate those features into benefits for the consumer. The long-term implications of business purposes requires that B2B marketing focus on results achieved for previous clients and thus results promised for the prospect.

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Next time you read and remember an important business document, try the SQ3R method to increase your comprehension.
 

Survey	Scan the document title, headers, and key points
Question	Write down key questions that come to mind about the subject
Read	Read the document in detail, taking care to understand the key points
Recall	After reading, run through the key points in your mind several times
Review	Reread key points, expand your notes, or discuss the material with another person

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For the record, going off the record in any interview is a risky proposition. It is one of the most misunderstood concepts in media relations. Let's explore it from several angles:

• Off the record is a request more than a binding agreement. Any executive who goes off the record is simply trusting that the reporter will not use the information provided. Most reporters will honor this request because of journalism ethics and to maintain a relationship with the executive. However, they are under no obligation to do so.
• Off the record must be a mutual agreement. The executive cannot deem a portion of the interview to be off the record without the reporter's agreement. Without the reporter's agreement, the entire interview is still on the record.
• Off the record is not retroactive. Executives who are unfamiliar with the process sometimes provide information and then say to the reporter, "By the way, that's off the record." Unfortunately, it's not. Off the record starts with the mutual agreement and extends until such time as the executive and the reporter agree to go back on the record.

The litmus test for off the record is the level of trust between the executive and the reporter. Absent that trust, it's best to stay on the record and out of trouble.

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http://fastlane.gmblogs.com

GM's FastLane blog has received a great deal of media attention as one of the original corporate blogs. FastLane allows GM executives to communicate directly with and hear from people who follow the company and its products. For example, a recent post asking about preferences for front-wheel versus rear-wheel drive received more than 300 responses. Now a year old, FastLane features sections for auto shows, business strategy, cars and trucks, design, and even podcasts.

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In Simply Better, Barwise and Meehan present a compelling case that the best strategy for companies to retain and add customers is to excel at the basics of their business category - not by creating a unique selling proposition.

The foundation of the authors' theory is that customers meet their needs by making a category purchase rather than by buying a particular brand. For example, people choose fine dining and then select from the available brands. They do not say, "I'm going to Ruth's Chris. Now, am I going to have a burger and fries or the surf and turf?" The same applies for cars, televisions, clothing, etc.

Simply Better provides numerous examples of companies that have an intimate knowledge of the category benefits and have parlayed it into the best overall combination for customers.

The authors recommend that companies improve their category prominence by creating a "pure air" culture based on two principles. The first principle is seeing debate and challenge based upon facts and objective observation as a force of good. The second principle is that no one expects an easy yes for new ideas, meaning that only the best ideas ultimately make the cut.

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