A Simple Marketing Lesson You Can Learn From The Henokiens | Ep. #1207

Published Nov 20, 2019, 2:00 PM

In episode #1207, we share the secret to what has made the Henokiens so successful for over two centuries. Focusing on the big picture rather than on short-term goals is guaranteed to make your business more sustainable in the long run. Tune in to hear why you should pay closer attention to your stakeholders than your shareholders!

TIME-STAMPED SHOW NOTES:

  • [00:25] Today’s topic: A Simple Marketing Lesson from the Henokiens. 
  • [00:46] Who the Henokiens are and what sets them apart from many others. 
  • [01:04] The problem with the short-term perspective of most companies today. 
  • [01:47] How certain companies manage to stand the test of time.  
  • [03:30] Why you have to think long-term rather than focusing only on short-term solutions.  
  • [04:25] Shifting the focus from shareholders to stakeholders and what it involves. 
  • [05:03] Accepting that focusing on the long game will take more time. 
  • [05:16] Why this approach is more difficult for us marketers.  
  • [05:47] That’s it for today!
  • [05:56] To stay updated with events and learn more about our mastermind, go to the Marketing School site for more information.

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Welcome to Marketing School, the only podcast that provides daily top level marketing tips and strategies from entrepreneurs that practice what they preach and live what they teach. Let's start leveling up your marketing knowledge with your instructors, Neil Patel and Eric Sue. All right, guys, before we start, we got a special message from our sponsor. If you want to rank higher on Google, you got to look at your page speed time. The faster website loads, the better off you are with Google's Core Vital update. That makes it super super important to optimize your site for low time. And one easy way to do it is use the host that Eric and I use, dream Hosts. So just go to dream host or google it, find it, check it out, and it's a great way to improve your low time. Welcome to another episode of Marketing School. I'm Eric Sue, I'm Neil Patel, and today we are going to talk about a simple marketing lesson you can learn from the Hino Kens. I didn't even pronounce that correctly. I'm not sure, Neil, do you know how to pronounce it? I know, okay, So anyway, here's how you type it in. Okay, So if you guys are frond of a computer type in Heino so H E N O K I E N S. And you can make fun of me or Neil on Twitter, but this is basically an association of companies who have continuously operated and remained family owned for two hundred years or more and their descendants still operate at a management level. And I actually didn't hear about this till recently. And Neil, this might be new where I'm explaining it to you, but I think there's some good lessons here because you know, a lot of we think about today's day and age. A lot of companies are very they think about, you know, shareholder value. They think about it's very short term, short term, short term. Right, It's all about profit profit profit now when you think about this organization. So it was founded in Paris, France and founded in nineteen eighty one, so thirty eight years ago. And there's a lot of different groups in here. I'm looking at it right now in Wikipedia and you have companies from Austria. There's companies found in an eighteen fourteen. You have Burretta I guess, the arms manufacturer, Well, they were founding in fifteen twenty six in Italy. And then you have all these other companies, right, you know, in cars, wool, spirit, hostels, wine, osake, all these different things, private banking. A lot of these are Swiss companies, right. But the key thing here is this they have stood the test of time because in a lot of cases, a lot of companies go caput. Right, Like you hear about Vanderbilt for example, I'm not sure if the Vanderbilt family is doing really well now, do you know, Neil, Yeah, a lot of them still have money. Okay, so maybe Vanderbilt is not a good example, but there's a lot of companies that run out of money because it becomes you know, manage my family, and it's mismanaged afterwards. So what you can learn from this is that if there's an organization like this, right and you know, Neil, we can go a little deeper into it. But if they lasted over two hundred years and it's family organized like that just shows you if you played the long game and you focus on not so much just on profit, but you focus on, hey, take care of the family and then also take care of your people, have a good quality product, it's going to stand a test of time because BARRETTA. I thought was you know, I didn't know it was like almost five hundred years old. That's pretty nuts, dude. I did not know that it was that old either. Yeah. Here, let me put this thing in Wikipedia for you. Right now here. Let me put it in Chat. Here's the crazy thing right when you look at So. I was talking to a guy named Tom or Todd, and I believe he's the cop or the founder of a company called terror Cycle. It's a company that pretty much recycles everything. And he was at Princeton back in the day, which is where he came up with the concept of terror Cycle. And when he was at Princeton, he was in economics one oh one, and the professor would ask, you know, what's the purpose of a business? And the answer she was looking for is to produce the maximum returns for your shareholders. Now, when you have shareholders and you're in business and you're trying to maximize their earnings, what a lot of people do is they optimize for short terms. What can I make my shareholders each and every single quarter so they're happy with me when you're doing your market when you're in business. The simple lesson that Eric and I have for you is, don't think about hey there's a Google algorithm update, or there's TikTok that's coming. I need a leverager before anyone else. Think long term, think five years, think ten years now. Some of these things like TikTok, sure they could be around for five ten years, but think really big picture. What do you need to do with your marketing, What do you need to do with your business, What do you need to do with your product, your service. So that way, not only do you survive in the long run, but you can be better than your competition because if you can do what's best for the long run, even if that means you don't grow as fast as the short run, that's how you win the race. You don't optimize for each quarter, you optimize for the long run. Actually, Neil, you bring up a good point that quote. It used to be all about shareholders. Now the Business Roundtable, which is a lot of the biggest world leaders, they basically conferred. This was a couple months ago, and basically the idea now is shareholder value is no longer everything. Mark Benuoff, the CEO of Salesforce, said this recently. He said, look, it's about stakeholders stakeholders being your employee, stakeholders being the environment. Those are all stakeholders, right because now you know this is not really a podcast about politics or climate change, but all of that. If you think long term, you think about taking care of the stakeholders when you're doing your marketing, well, that's long term thinking, and that's going to put you on the path to having a longer term business. First, the short term optimizers that are just thinking what can I do from quarter to quarter? What's the new shiny object, what else are all my competitors doing. It's just a lot of schizophrenia that's going on. But if you focus on the long game, you know, it might take you longer to get there. You might see people growing past you initially, but you have good ethics, you have you know, you think about stakeholders instead of just shareholders, and you're gonna win no matter what. Yeah, it's just it's a hard thing for us to do as marketers because like we're driven by algorithm changes which happen on a daily basis, we're driven by CPC and ads which fluctuate literally by the minute. But sometimes you just need to step back and look at the from the bigger picture, and even when you're planning your marketing and stuff, it's not just about all right, how can I beat my competition? Sometimes it's what can I do to expand to create a bigger market, which then allows me to go after new channels that my competitors aren't going after. Great, all right, guys, So that is it for today. We will throw a little curveball at you, but hope you enjoyed this one. Let us know, by the way, if you want us to do more like this, you can tweet at me directly, Ericosu. I read every single one, and before we go, don't forget to check out the Growth Accelerator. This is the live events that Neil and I do. There's three of them every single year. You can go to Marketing School dot io, slash Live, Do's live to apply. Spots are limited, and don't forget to rate review, subscribe to this podcast because it helps us grow and it helps you grow. So that being said, see tomorrow. We appreciate you joining us for this session of Marketing School. App sure to rate, review and subscribe to the show, and visit marketingschool dot io for more resources based on today's topic as well. As access to more episodes that will help you find true marketing success. That's Marketing School dot io until next time. Class dismissed