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10/26/2009: "What is Tim up to today?"

In Chapter 1 I talked about Tim, my brother-in-law, to illustrate Marketing Process Step #4: Manage Customer Value (page 12), which consists of measuring customer satisfaction, reviewing segments, reviewing customers, and reviewing your product mix.

Tim, a self taught businessman, is a classic example of an entrepreneur who "gets" the power of Marketing. I had the opportunity to speak with him yesterday to hear what he has been up to since I wrote about him in the book. True to his vision of always being ahead of the curve, his business model has evolved considerably.

Tim saw the writing on the wall -- low priced Chinese competitors with the ability to sell pressure washers (his main business) at retail for less than what he could buy them. He realized that his main business was doomed, he had to find another source of revenue.

As I wrote on Page 14, Tim was getting into bacteria as a way to clean grease and dirt. He spent $20,000 of his own money to consolidate the research on this topic and develop a new form of aerator (a device that injects air into material to foster oxidation). He told me that he has actively scaled down his pressure washer business, focusing instead on digestors (machines that use bacteria to cut grease) and aerators.

Tim's example shows why Marketing Process Step #4: Manage Customer Value (page 12) is so important -- smart businesses are constantly reevaluating their business models to refine their strategy. In contrast, a main reason why businesses fail is their inability (or unwillingness) to jettison their strategy.

I look forward to receiving your comments at asirsi@schulich.yorku.ca