tag:typepad.com,2003:weblog-368492 2009-07-17T00:10:00-04:00 Helping marketing oriented leaders and professionals build strong brands. TypePad http://theblakeproject.typepad.com/bsimini.jpgBrandingStrategyInsiderhttp://feedburner.google.comSubscribe with My Yahoo!Subscribe with NewsGatorSubscribe with My AOLSubscribe with BloglinesSubscribe with NetvibesSubscribe with GoogleSubscribe with PageflakesSubscribe with PlusmoSubscribe with Live.com tag:typepad.com,2003:post-6a00d83451b74a69e20115720f6ee8970b 2009-07-17T00:10:00-04:00 2009-07-17T00:10:00-04:00

We normally leave software reviews to the techies. But this new “app” is remarkable in its usefulness and simplicity. Nomina is a new application for the iPhone. Plug in a name you’re considering, and in seconds, the software will search...

Steve Rivkin <p><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e20115720f6c47970b-pi" style="display: inline;"><img alt="500_18_sexy_iphone_apps_headline" border="0" class="at-xid-6a00d83451b74a69e20115720f6c47970b " src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e20115720f6c47970b-800wi" title="500_18_sexy_iphone_apps_headline"></img></a>     <br>We normally leave software reviews to the techies. But this new “app” is remarkable in its usefulness and simplicity.</p><p>Nomina is a new application for the iPhone. Plug in a name you’re considering, and in seconds, the software will search the U.S. Patent and Trademark Office database to give you a preliminary look at trademarks. Then it will do a common law search for the name using Dun &amp; Bradstreet, Google, Reuters News and a Yellow Pages database.</p><p>Want more screening? You’ll also get domain name searches, starting with the obvious .com, .net and .org, and drilling down to the “second level” and international domains such as .tv and co.uk.</p><p>And since this is an Apple app, the program offers you a summary report of all the information that you can e-mail to colleagues. Download the software for $14.99. For more information, click <a href="http://www.outspring.com">here</a>.</p><p>Our lawyer friends caution us that Nomina is no substitute for a formal name screening. True. But it’s a terrific first step to answer the question, “Do we think this name might be available?”</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=VoMME8w69gM:oM4cXkHWPCk:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=VoMME8w69gM:oM4cXkHWPCk:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=VoMME8w69gM:oM4cXkHWPCk:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=VoMME8w69gM:oM4cXkHWPCk:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=VoMME8w69gM:oM4cXkHWPCk:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/VoMME8w69gM" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/name-search-simplified-on-your-iphone.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b57100970b 2009-07-16T00:10:00-04:00 2009-07-16T00:10:00-04:00

Marketing people, and the minds of the people they are trying to influence, are often in conflict. Unfortunately, these arguments are being presented to minds that really aren’t up to dealing with all that glorious information. Our perceptions are selective....

Jack Trout <div xmlns="http://www.w3.org/1999/xhtml"><p><span style="text-decoration: underline;"><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e2011571128f19970c-pi" style="display: inline;"><img alt="500_brain-mri" border="0" class="at-xid-6a00d83451b74a69e2011571128f19970c " src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e2011571128f19970c-800wi" title="500_brain-mri"></img></a> </span> <br>Marketing people, and the minds of the people they are trying to influence, are often in conflict. Unfortunately, these arguments are being presented to minds that really aren’t up to dealing with all that glorious information. Our perceptions are selective. And our memory is highly selective. We are cursed with the physiological limitation of not being able to process an infinite amount of stimuli. This means that in a crowded category, your difference might not be enough unless it is a dramatic difference. </p><p>Seeing is not akin to photographing the world—merely registering an image. Memory is not a tape recorder that stores information when we turn it on. How much of your message gets through depends to a large part on what you are selling, according to years of data compiled on readership scores by advertising category. </p><p>For instance, an advertisement for footwear is going to be twice as interesting as an ad for floor coverings, regardless of the brand names or benefits. Similarly, an ad for perfume—almost any perfume—is going to have double the average readership of a furniture ad. There is even a ‘‘no-interest’’ category where people will remember no brand names. It’s caskets. The leading brand is Batesville. But after a few paragraphs, you’ll have forgotten this. </p><p>These interest levels—these biases—are firmly in place before we even pick up a magazine or newspaper. This is why the first and second brands in the market have an enormous mental advantage over the later entrants. They tend to preempt the most important differences. </p> <p>Minds Hate Confusion <br>Human beings rely more heavily on learning than any other species that has ever existed. Learning is the way animals and humans acquire new information. Memory is the way they retain that information over time. Memory is not just your ability to remember a phone number. Rather, it’s a dynamic system that’s used in every other facet of thought processing. </p><p>We use memory to see. We use it to understand language. We use it to find our way around. So, if memory is so important, what’s the secret of being remembered? When asked what single event was most helpful to him in developing the theory of relativity, Albert Einstein is reported to have answered: ‘‘Figuring out how to think about the problem.’’ </p><p>Half the battle is getting to the essence of the problem. Generally speaking this means having a deep understanding of your competition and their place in the mind of your prospect. It’s not about what you want. It’s about what your competition will let you do. </p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=OyxBdK-_NZk:IoC9eDF4aug:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=OyxBdK-_NZk:IoC9eDF4aug:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=OyxBdK-_NZk:IoC9eDF4aug:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=OyxBdK-_NZk:IoC9eDF4aug:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=OyxBdK-_NZk:IoC9eDF4aug:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/OyxBdK-_NZk" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/marketing-memory-and-the-mind.html tag:typepad.com,2003:post-6a00d83451b74a69e20115720537fd970b 2009-07-15T00:10:00-04:00 2009-07-15T00:10:00-04:00

On Friday, GM, something of a branding basket case in recent times, surprised every­one by coming out of bank­ruptcy protection after only 40 days. Even President Obama, who invested $50bn and much of his own political capital in the ailing...

Mark Ritson <div xmlns="http://www.w3.org/1999/xhtml"><p><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e2011571108341970c-pi" style="display: inline;"><img alt="500_GM+CEO+Fritz+Henderson+Holds+News+Conference+6xhYuLWG2mOl" border="0" class="at-xid-6a00d83451b74a69e2011571108341970c " src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e2011571108341970c-800wi" title="500_GM+CEO+Fritz+Henderson+Holds+News+Conference+6xhYuLWG2mOl"></img></a> <br>On Friday, GM, something of a branding basket case in recent times, surprised every­one by coming out of bank­ruptcy protection after only 40 days.</p><p>Even President Obama, who invested $50bn and much of his own political capital in the ailing automotive giant, expected GM to take up to 90 days to get its house in order.</p><p>GM's new chief executive, Fritz Henderson, was keen to recognise the ‘intensity, decisiveness and speed' that enabled the new firm, now known as the General Motors Company, to exit bankruptcy in record time. He then laid out his plan to revitalise it.</p><p>Henderson's presentation was professional, and the journalists in the room lapped it up. However, to me it seemed that the stark reality of Friday's session was that the new GM could expire, too, as a result of the same brand ineptitude that destroyed it the first time around.</p><p>Let's start with the 40-day bankruptcy. GM might be proud of coming out early, but, in my opinion, it's a stupid move. If I know anything about brand revitalisation, it is that it takes time to work out what's wrong and develop a plan to fix things. Once you press the green button marked ‘The turnaround begins', as GM did on Friday, things move frighteningly fast.</p><p>Great executives always engineer as much time as possible to assess and strategise before they get on the stage and announce their strategy. Clearly, bankruptcy is a black mark against GM, but once the stain is on a brand, it should make the most of the time to develop a strategy that can work. Forty days is not enough.</p><p>This is why I think Henderson's decisions on branding are so wrong. </p> <p>On Friday, he confirmed that the new GM would consist of four key brands: Chevrolet, GMC, Cadillac and Buick. There was no mention of the brand equity, tracking or market segments that should have guided his branding decisions. That's because 40 days is not enough time to do the research and analysis to get all this done. As a result, Henderson has picked too many brands, and GM is unlikely to be able to market them effectively.</p> <p>Look at his competition. Ford is focused on a single brand these days. Toyota and Honda are similar. The four brands Henderson has picked are not distinct from each other. Watch carefully as he splits his marketing budget into quarters and then competes with himself.</p><p>While we are on the topic, I wonder why he is keeping the GM brand. In the past year, the corporate brand has added further associations of inefficiency and US malaise. Did Henderson even consider a strategy in which his surviving vehicle brands could stand alone and be unencumbered by the negative equity of the parent brand?</p><p>I don't think the idea occurred to him. Henderson is a GM lifer, and while he might talk about a fresh approach, his strategy could be seen as evidence that GM is not ready for a fresh start.</p><p>He has also hand-picked a brand expert to sort out the marketing and branding malaise that destroyed the old GM. The new blood in question is 77-year-old Bob Lutz, the former GM marketer who was about to retire after a career at Ford, Chrysler and GM. Henderson obviously felt Lutz was a better choice than a P&amp;G or Apple marketer. Was this the right choice?</p><p>I hope I am wrong about the road ahead for GM, but it might be time to accept that some companies deserve to die. Watch this space. We'll know one way or another very soon.</p><p>30 Seconds On…Fritz Henderson</p><p>    * Henderson was born in 1958 in Detroit, Michigan, the hometown of GM. He earned degrees from the University of Michigan and Harvard Business School.</p><p>    * He joined GM as a financial analyst in 1984 and has worked there since. In 2004 he was appointed chairman of GM Europe, and in 2006 he became the company's president and chief operating officer.</p><p>    * Speaking at a press confer­ence last Friday, Henderson said: ‘Business as usual is over at GM. Today, we take the intensity, decisiveness and speed of the past several months and transfer it from the triage of the bankruptcy process to the creation and operation of a new GM.'</p><p>    * ‘I hate business books,' he told Business Week in a 2004 interview. ‘I read male trash like Robert Ludlum and Clive Cussler.'</p><p>    * GM is planning the launch of a ‘Tell Fritz' website, where consumers can give feedback. ‘I will personally review and respond to some of these communications every day,' Henderson has promised.</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZvmBs5o8LKg:QSqwNbX59yM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZvmBs5o8LKg:QSqwNbX59yM:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZvmBs5o8LKg:QSqwNbX59yM:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZvmBs5o8LKg:QSqwNbX59yM:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZvmBs5o8LKg:QSqwNbX59yM:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/ZvmBs5o8LKg" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/old-gm-threatening-new-gm.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b56a4f970b 2009-07-14T00:10:00-04:00 2009-07-14T02:19:29-04:00

Loss of focus is really all about line extension. And no issue in marketing is so controversial. Companies look at the brands from an economic point of view. To gain cost efficiencies and trade acceptance, they are quite willing to...

Jack Trout <p><span style="text-decoration: underline;"><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e20115710c1553970c-pi" style="display: inline;"><img alt="500_fsImageResize" border="0" class="at-xid-6a00d83451b74a69e20115710c1553970c " src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e20115710c1553970c-800wi" title="500_fsImageResize"></img></a> </span><br>Loss of focus is really all about line extension. And no issue in marketing is so controversial. Companies look at the brands from an economic point of view. </p><p>To gain cost efficiencies and trade acceptance, they are quite willing to turn a highly focused brand, and one that stands for a certain type of product or idea, into an unfocused brand that represents two or more types of products or ideas. </p><p>Look at the issue of line extension from the point of view of the mind. The more variations you attach to the brand, the more the mind loses focus. Gradually, a well-differentiated brand like Chevrolet comes to mean nothing at all. Scott, the leading brand of toilet tissue, line extended its name into Scotties, Scottkins, and Scott Towels. Pretty soon writing ‘‘Scott’’ on a shopping list meant very little and Charmin took over the lead.</p><p><strong>Some Surprising Research </strong><br>With about 70 percent of new products being launched with existing brand names, you would think these companies would have some supporting data on the pluses of line extension. The opposite is true. </p><p>The Journal of Consumer Marketing noted a large-scale study of 115 new-product launches across five U.S. and U.K. markets. The study compared the market share gained by products launched under established family or corporate brand names with market share gained by products launched under new brand names. </p><p>Share was measured two years after each brand’s launch. The brand extension products performed significantly less well than the products launched with new brand names. </p><p>The Harvard Business Review published a study on line extension. Their observations were that, among other things, line extension weakened a brand’s image and disturbed trade relations.</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZeU8X4ryly8:vNXud0wqFrs:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZeU8X4ryly8:vNXud0wqFrs:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZeU8X4ryly8:vNXud0wqFrs:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZeU8X4ryly8:vNXud0wqFrs:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZeU8X4ryly8:vNXud0wqFrs:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/ZeU8X4ryly8" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/loss-of-focus-and-line-extension.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571026543970c 2009-07-13T00:10:00-04:00 2009-07-14T00:20:04-04:00

Once in a while, a brand strategy is announced that is so stupid, so antithetical to the principles of brand management, that it takes your breath away. Ladies and gentlemen, I give you the Aston Martin Cygnet. As the picture...

Mark Ritson <div xmlns="http://www.w3.org/1999/xhtml"><p><span style="text-decoration: underline;"><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e201157200c9f5970b-pi" style="display: inline;"><img alt="500_6a00d83451b74a69e2011571f72619970b-800wi" border="0" class="at-xid-6a00d83451b74a69e201157200c9f5970b" src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e201157200c9f5970b-800wi" title="500_6a00d83451b74a69e2011571f72619970b-800wi"></img></a> </span> <br>Once in a while, a brand strategy is announced that is so stupid, so antithetical to the principles of brand management, that it takes your breath away. Ladies and gentlemen, I give you the Aston Martin Cygnet.</p><p>As the picture above reveals, this is a very different kind of Aston Martin. For starters, it's not very powerful, given its 67 horsepower engine - that's 353 horses short of the V8 Vantage. Nor does it look like an Aston Martin.</p><p>Not surprising, really, given that it is based on a Toyota platform - and not just any Toyota. The Cygnet is based on its smallest four-seater, the iQ city car.</p><p>According to Aston Martin's chief executive, Dr Ulrich Bez, the Cygnet will 'apply Aston Martin design language, craftsmanship and brand values to a new segment of the market'.</p><p>Dr Bez, have you lost your mind? Toyota is a fine company, but it makes Japanese, mass-market, economy cars. You run Aston Martin - the most English, exclusive luxury brand ever to have existed.</p><p>Reports suggest you will soon be producing 5000 Cygnets a year, making it your company's number-one production model. Your own definition of Aston Martin's DNA is a combination of power, beauty and soul.</p><p>How can a car with a lawnmower engine, which, to me, looks like a punch in the balls, and is designed in Tokyo, possibly fit within your excellent prescription of the brand?</p> <p>Can you be the same Dr Bez who, barely a year ago, said: 'There is nothing in my five-year-plan that allows for sharing with other makers. We have our own technology and structure and our own platform. We do not have any reason to go and change'? Because last week, you said exactly the opposite when you announced that the Cygnet was 'made possible with the support of an organisation of Toyota's stature and capability and the intelligent design and perfect city car package of the iQ'.</p><p>There are two possible explanations for the brand abomination that is the Cygnet and the 180° change in Aston Martin's corporate strategy.</p><p>Maybe it has run the numbers for 2010 and is coming up short. The downturn in luxury-car orders, combined with the massive fixed costs associated with being a British car manufacturer, might mean that Aston Martin has to quickly find funds from more accessible line extensions.</p><p>If it really is short of cash, though, it should follow Ferrari's strategy of licensing multiple brand extensions for products outside the automotive category. Such additions make instant cash but, unlike line extensions such as the Cygnet, do not damage the equity of a brand in its original category.</p><p>Alternatively, Aston Martin may be moving quickly to avoid new emission standards soon to be enforced by both the EU and US authorities. Car makers will soon be penalised if their average CO2 emissions exceed a certain level.</p><p>Competitors such as Ferrari (part of Fiat) and Lamborghini (part of Audi) can use their house of brands architecture to share the excessive CO2 production of their sports cars across a range of smaller, more environmentally friendly vehicles. Aston Martin's single brand structure offers no such opportunity, but if half the cars it sold were Cygnets, with CO2 emissions of 99g/km, it could still sell its existing models, which emit four times that, without the need to develop hybrid engines.</p><p>Whether the dilemma is economic or environmental, Aston Martin cannot afford to dilute its brand and desecrate its heritage with the Cygnet. There must be another way.</p><p>30 Seconds On...Aston Martin Cygnet</p><p>    * The prototype Cygnet is likely to go into production in the 'not too distant future', according to Aston Martin. It is expected to be priced at about £20,000.</p><p>    * According to Dr Ulrich Bez, 'When I saw the iQ, I immediately saw potential for our two companies to work together. Two days after I called [Toyota president] Akio Toyoda to discuss this, Toyota's people were visiting our factory at Gaydon. Just a few months later and we are making public our intentions.'</p><p>    * The Toyota iQ made its European debut in January. More than 25,000 have been sold so far this year. 'This collaboration represents a natural pairing of strategies: a small yet spacious package, perfect for the city driver, finished off with Aston Martin's iconic design language,' said chief executive and president of Toyota Motor Europe, Tadashi Arashima. 'The Cygnet is a good choice for the Aston Martin owner looking for that second or third car, which is luxurious and eco-conscious.'</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=HyxVq3drbvA:S0ua158dmbc:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=HyxVq3drbvA:S0ua158dmbc:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=HyxVq3drbvA:S0ua158dmbc:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=HyxVq3drbvA:S0ua158dmbc:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=HyxVq3drbvA:S0ua158dmbc:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/HyxVq3drbvA" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/aston-martins-brand-strategy-abomination.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b5731f970b 2009-07-12T00:10:00-04:00 2009-07-14T00:08:29-04:00

While the mind may still be a mystery, we know one thing about it that is for certain—it’s under attack. Most Western societies have become totally ‘‘overcommunicated.’’ The explosion of media forms, and the ensuing increase in the volume of...

Jack Trout <div xmlns="http://www.w3.org/1999/xhtml"><p><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e201157200c0b4970b-pi" style="display: inline;"><img alt="Cognitive1" border="0" class="at-xid-6a00d83451b74a69e201157200c0b4970b " src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e201157200c0b4970b-800wi" title="Cognitive1"></img></a> <br>While the mind may still be a mystery, we know one thing about it that is for certain—it’s under attack. Most Western societies have become totally ‘‘overcommunicated.’’ The explosion of media forms, and the ensuing increase in the volume of communications, has dramatically affected the way people either take in or ignore the information offered to them. </p><p>Overcommunication has changed the whole game of communicating with and influencing people. What was overload in the 1970s turned into megaload by the turn of the century. </p><p>Here are some statistics to illustrate the problem: </p><p>*More information has been produced in the past 30 years than in the previous 5,000. <br>*The total of all printed knowledge doubles every four or five years. <br>*One weekday edition of the New York Times contains more information than the average person was likely to come across in a lifetime in seventeenth-century England. <br>*More than 4,000 books are published around the world every day. <br>*The average white-collar worker uses 70 kilograms of copy paper a year—twice the amount consumed 10 years ago. </p><p>Electronic Bombardment <br>And what about the electronic side of our overcommunicated society?</p> <p>Every day, the World Wide Web grows by a million electronic pages, according to Scientific American, adding to the many hundreds of millions already online.</p><p>Everywhere you travel in the world, satellites are beaming endless messages to every corner of the globe. By the time a child in the United Kingdom is eighteen, he or she has been exposed to 140,000 TV commercials. In Sweden, the average consumer receives 3,000 commercial messages a day. </p><p>In terms of advertising messages, 11 countries in Europe now broadcast well over 6 million TV commercials a year. In the United States, the electronic side of overcommunication continues its relentless attack. Experts say that the country will be going from 150 channels of television to 500. (By the time you find something to watch, the show will be over.) </p><p>And then there are all those computers, and the much-hyped information superhighway, which promises to deliver massive amounts of information to your home via fiber-optic cables, or CD- ROMs . . . or whatever. </p><p>All this means that your differentiating idea must be as simple and as visible as possible and delivered over and over again on all media. The politicians try to stay ‘‘on message.’’ Marketers must stay ‘‘on differentiation.’’</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><p></p><script src="http://feeds.feedburner.com/%7Es/BrandingStrategyInsider?i=http%3A%2F%2Fwww.brandingstrategyinsider.com%2F2009%2F06%2Fhow-do-i-judge-marketing-firms.html" type="text/javascript"></script></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=uab1CNFyDhI:AUqxl9ujmfQ:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=uab1CNFyDhI:AUqxl9ujmfQ:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=uab1CNFyDhI:AUqxl9ujmfQ:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=uab1CNFyDhI:AUqxl9ujmfQ:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=uab1CNFyDhI:AUqxl9ujmfQ:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/uab1CNFyDhI" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/differentiation-takes-place-in-the-mind.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b56d65970b 2009-07-11T00:10:00-04:00 2009-07-14T01:10:28-04:00

Pure logic is no guarantee of a winning argument. Minds tend to be both emotional and rational. Why do people buy what they buy? Why do people act the way they do in the marketplace? When you ask people why...

Jack Trout <p><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e201157200ee8c970b-pi" style="display: inline;"><img alt="500_Brand Recall Results" border="0" class="at-xid-6a00d83451b74a69e201157200ee8c970b" src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e201157200ee8c970b-800wi" title="500_Brand Recall Results"></img></a> <br>Pure logic is no guarantee of a winning argument. Minds tend to be both emotional and rational. Why do people buy what they buy? Why do people act the way they do in the marketplace? </p><p>When you ask people why they make a particular purchase, the responses they give are often not very accurate or useful. That may mean they really do know, but they are reluctant to tell you the right reason. More often, they really don’t know precisely what their own motives are. </p><p>For when it comes to recall, minds tend to remember things that no longer exist. That’s why recognition of a well-established brand often stays high over a long period, even if advertising support is dropped. It’s all about the power of being first. In the mid-1980s, an awareness study was conducted on blenders. Consumers were asked to recall all the brand names they could. General Electric came out number two—even though General Electric hadn’t made a blender for 20 years.</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=T4a5MIQcRQY:7ZqBznL9Bw8:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=T4a5MIQcRQY:7ZqBznL9Bw8:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=T4a5MIQcRQY:7ZqBznL9Bw8:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=T4a5MIQcRQY:7ZqBznL9Bw8:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=T4a5MIQcRQY:7ZqBznL9Bw8:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/T4a5MIQcRQY" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/brand-recall-and-the-mind.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b57c39970b 2009-07-10T00:10:00-04:00 2009-07-11T21:19:06-04:00

Today we're taking a marketing research question from James, a VP of Marketing in Dallas, Texas. He asks... "Please define Ad Copy Testing and other relevant measures for advertising performance." James, Thanks for asking. As you likely know, this has...

Brad VanAuken <div xmlns="http://www.w3.org/1999/xhtml"><p>Today we're taking a marketing research question from James, a VP of Marketing in Dallas, Texas. He asks...</p><p><em>"Please define Ad Copy Testing and other relevant measures for advertising performance."</em></p><p>James, Thanks for asking. As you likely know, this has been a perennially controversial area of marketing research. The importance and effectiveness of and the most productive approaches to copy testing have been much debated over time. For instance, many have questioned the usefulness of advertising recall as a measure. Current methodologies are fraught with issues. I am providing a simple summary of a fairly comprehensive approach to this below, however, the chosen approach will vary greatly depending on what specifically is to be tested. </p><p>More sophisticated approaches have been used (galvanic skin response, MRI, etc.), however these tend to be quite expensive. People have also used pulse and heart rate, facial expression and other physiological indicators of mental states as measures of advertising effectiveness. Some research orgnizations like Millward Brown and Ipsos-ASI will argue the importance of validated predictive metrics and normative databases in this area of research because they have these.</p><p>Ad Copy Testing<br>More aptly named pre-testing, copy testing is the study of advertising (print, TV, radio, billboards, Internet, etc.) prior to launching it. It predicts how effectively an ad will perform, based on the analysis of feedback gathered from the target audience. Each test will either qualify the ad as strong enough to meet company action standards for airing or identify opportunities to improve the performance of the ad through editing.</p> <p>Objectives:<br>•    Filtering/selection: Minimize the risk of low advertising ROI by identifying (and eliminating) less effective ads<br>•    Optimizing/revision: Improve ads by identifying (and fixing) potential problems<br>What is Measured?<br>•    Congruence with brand/intended message<br>•    Likeability *<br>•    Persuasion (pre/post, including day after) *<br>o    Purchase intent and frequency<br>o    Brand switch measure<br>•    Purchase-related beliefs (pre/post)<br>•    Emotional response<br>o    Emotions evoked<br>o    Intensity of those emotions<br>•    Recall (day after)<br>Methodology:<br>•    Single exposure multiple market on-air testing<br>•    Forced exposure testing in a laboratory or theater setting<br>o    Increasingly executed online with the added benefit of tracking click-throughs  and actual purchases</p><p>Have a question related to branding? <a href="mailto:ddaye@theblakeproject.com">Just Ask…</a></p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p> <p></p><script src="http://feeds.feedburner.com/%7Es/BrandingStrategyInsider?i=http%3A%2F%2Fwww.brandingstrategyinsider.com%2F2009%2F06%2Fhow-do-i-judge-marketing-firms.html" type="text/javascript"></script></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=UAtLimBLEWA:aC_xnOLEQfE:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=UAtLimBLEWA:aC_xnOLEQfE:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=UAtLimBLEWA:aC_xnOLEQfE:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=UAtLimBLEWA:aC_xnOLEQfE:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=UAtLimBLEWA:aC_xnOLEQfE:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/UAtLimBLEWA" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/ad-copy-testing-defined.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b56c5c970b 2009-07-09T00:10:00-04:00 2009-07-09T00:10:00-04:00

When you study the marketing wars, the well-differentiated specialist tends to be the winner. Here are some thoughts on why the specialist brand appears to make an impression on the mind. First, the specialist can focus on one product, one...

Jack Trout <p>When you study the marketing wars, the well-differentiated specialist tends to be the winner. </p><p>Here are some thoughts on why the specialist brand appears to make an impression on the mind. First, the specialist can focus on one product, one benefit, and one message. This focus enables the marketer to put a sharp point on the message that quickly drives it into the mind. Domino’s can focus on home delivery. Pizza Hut has to talk about its different pizzas, home delivery, and sit-down service. </p><p>Another weapon of the specialist is the ability to be perceived as the expert or the best. If that’s all they do, they must do it very well. Finally, the specialist can become the generic for the category. </p><p>Xerox became the generic word for copying. (‘‘Please Xerox that for me.’’) Federal Express became the generic word for overnight delivery. (‘‘I’ll FedEx it to you.’’) Even though the lawyers hate it, making the brand name a generic is the ultimate weapon in the marketing wars. But it’s something only a specialist can do. The generalist can’t become a generic. </p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rJK4FoG9gBY:Gjwo66th2Fs:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rJK4FoG9gBY:Gjwo66th2Fs:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rJK4FoG9gBY:Gjwo66th2Fs:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rJK4FoG9gBY:Gjwo66th2Fs:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rJK4FoG9gBY:Gjwo66th2Fs:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/rJK4FoG9gBY" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/the-power-of-the-specialist-brand.html tag:typepad.com,2003:post-6a00d83451b74a69e2011570c04fcf970c 2009-07-08T00:10:00-04:00 2009-07-08T12:56:01-04:00

It’s futile trying to change minds in the marketplace. For example: *Xerox lost hundreds of millions of dollars trying to convince the market that Xerox machines that didn’t make copies were worth the money. No one would buy their computers....

Jack Trout <p>It’s futile trying to change minds in the marketplace. For example: </p><p>*Xerox lost hundreds of millions of dollars trying to convince the market that Xerox machines that didn’t make copies were worth the money. No one would buy their computers. But they still buy their copiers. </p><p>*Volkswagen’s share price dropped over 60 points when they tried to convince the market the VW wasn’t just a small, reliable, economical car like the Beetle. No one bought their big, fast cars. They brought back the Beetle and people flocked to buy them. </p><p>*Coca-Cola blew both prestige and money in an effort to convince the market they had a better thing than ‘‘the real thing.’’ No one bought their New Coke. But their Classic version sells as well as ever.</p><p>When the market makes up its mind about a product, there’s no changing that mind. <br><br>As John Kenneth Galbraith once said, ‘‘Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everyone gets busy on the proof.’’</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><p></p><script src="http://feeds.feedburner.com/%7Es/BrandingStrategyInsider?i=http%3A%2F%2Fwww.brandingstrategyinsider.com%2F2009%2F06%2Fhow-do-i-judge-marketing-firms.html" type="text/javascript"></script><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=oWnOf9KjP_k:DwriwDiQafI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=oWnOf9KjP_k:DwriwDiQafI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=oWnOf9KjP_k:DwriwDiQafI:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=oWnOf9KjP_k:DwriwDiQafI:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=oWnOf9KjP_k:DwriwDiQafI:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/oWnOf9KjP_k" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/changing-minds-in-the-marketplace-.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b5801d970b 2009-07-07T00:10:00-04:00 2009-07-11T22:01:21-04:00

Today another question from the BSI Emailbag. Martin, a graduate student at Johns Hopkins University's Carey Business School writes... "Dear Mr. VanAuken, before I ask my TWO questions (I hope I’m not being greedy) I’d like to thank you and...

Brad VanAuken <div xmlns="http://www.w3.org/1999/xhtml"><p>Today another question from the BSI Emailbag. Martin, a graduate student at Johns Hopkins University's Carey Business School writes...</p><p><em>"Dear Mr. VanAuken, before I ask my TWO questions (I hope I’m not being greedy) I’d like to thank you and your co-authors for Branding Strategy Insider – this is what I check first thing in the morning with the coffee (I read my emails on my Blackberry in the car). Here come the questions:</em>"</p><p>Question 1</p><p><em>"Is there a way for a brand such as Marlboro to extend to products that are socially acceptable? A line of outdoor lifestyle products probably? Would that create outrage? What would be the way to go about it?"<br></em><br>This is a very interesting question, Martin. Given its strong image and personality (masculine, rugged individualism, independent spirit, etc.), I suspect the Marlboro brand is capable of being extended into a variety of new product categories. For instance, I could imagine Marlboro jeans and hats and belts could be successful. There are several things I would consider before I pulled the trigger on this, however. First, I would perform typical brand extension research to understand how the brand’s associations transferred to the new product categories and vice versa. </p><p>I would also try to understand how current Marlboro consumers, the consumers of the intended new product categories and the general public felt about moving the Marlboro brand into those product categories. It would also be important to determine if extending the brand into new product categories would be perceived to be a move to market Marlboro tobacco products to youth, and if it would actually make the brand more appealing to youth. If so, there would likely be a public backlash, not to mention possible legal actions against such a move. I suspect that these brand extensions would be much more palatable should Phillip Morris decide to discontinue tobacco-related products under the Marlboro brand first. Having said all of this, I think the Marlboro brand is quite strong and could be extended into a variety of product categories for which Marlboro’s distinct brand image and personality would seem to be a draw.</p><p>Question 2</p> <p>Muji, (translated from Japanese – “no brand”) recently opened a store in NY and plans to open a few more in the US but only in “trendy” cities such as Washington, DC, Miami, LA, Chicago etc. The store in Soho is popular among a segment of cult followers and also has shelf space in the MoMA store. In Japan, Muji is perceived as IKEA is perceived here – contemporary but by no means elite or “chick”.  Is Muji :</p><p>a)      The latest branding fad</p><p>b)      Cream de la cream of the snobbism</p><p>c)       Just a company that chose to position itself differently in a different market</p><p>d)       None of the above</p><p>Martin, not having shopped at Muji myself, nor having seen its advertising, I do not think my opinion on this should count. I think Muji’s own consumer research would best provide the answer your question.  Absent that information however, I think it is plausible that any one or more of your proposed answers could be correct. By the way, “no brand” is in fact a very interesting brand concept/position that would appeal to some in today’s hyper-branded environment. In fact, “no brand” could be the ultimate self-expressive statement for some. </p><p>Perhaps BSI readers will be able to add more.</p><p>Have a question related to branding? <a href="mailto:ddaye@theblakeproject.com">Just Ask…<br></a></p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=MUGjHzD4Yv4:VJm56mXnZ6w:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=MUGjHzD4Yv4:VJm56mXnZ6w:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=MUGjHzD4Yv4:VJm56mXnZ6w:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=MUGjHzD4Yv4:VJm56mXnZ6w:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=MUGjHzD4Yv4:VJm56mXnZ6w:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/MUGjHzD4Yv4" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/how-far-can-the-marlboro-brand-stretch.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571b56ebe970b 2009-07-06T00:10:00-04:00 2009-07-06T15:56:51-04:00

The basic concept of some products predicts failure. Not because they don’t work, but because they don’t make sense. Consider Mennen’s vitamin E deodorant. That’s right, you sprayed a vitamin under your arm. It doesn’t make sense unless you want...

Jack Trout <p>The basic concept of some products predicts failure. Not because they don’t work, but because they don’t make sense. Consider Mennen’s vitamin E deodorant. That’s right, you sprayed a vitamin under your arm. It doesn’t make sense unless you want the healthiest, best-fed armpits in the nation. It quickly failed. <br><br>Consider the Apple Newton. It was a fax, beeper, calendar keeper, and pen-based computer. Too complex. It’s gone and the much simpler Palm Pilot is an enormous success. The best way to really enter minds that hate complexity and confusion is to oversimplify your message.  Some of the most powerful programs are those that focus on a single word. (Wells Fargo: fast. Volvo: safety. Listerine: kills germs.) </p><p>The lesson here is not to try to tell your entire story. Just focus on one powerful differentiating idea and drive it into the mind. That sudden hunch, that creative leap of the mind that ‘‘sees’’ in a flash how to solve a problem in a simple way, is something quite different from general intelligence.</p><p>If there’s any trick to finding that simple set of words, it’s one of being ruthless about how you edit the story you want to tell. Anything that others could claim just as well as you can, eliminate. Anything that requires a complex analysis to prove, forget. Anything that doesn’t fit with your customers’ perceptions, avoid. </p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Aa6Hvbl4i5M:glFuf82tIAQ:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Aa6Hvbl4i5M:glFuf82tIAQ:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Aa6Hvbl4i5M:glFuf82tIAQ:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Aa6Hvbl4i5M:glFuf82tIAQ:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Aa6Hvbl4i5M:glFuf82tIAQ:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/Aa6Hvbl4i5M" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/simplicity-a-powerful-brand-strategy.html tag:typepad.com,2003:post-6a00d83451b74a69e2011570c04e46970c 2009-07-05T00:10:00-04:00 2009-07-04T03:00:48-04:00

More often than not, people buy what they think they should have. They’re sort of like sheep, following the flock. Do most people really need a four-wheel-drive vehicle? (No.) If they did, why didn’t they become popular years ago? (Not...

Jack Trout <p>More often than not, people buy what they think they should have. They’re sort of like sheep, following the flock. Do most people really need a four-wheel-drive vehicle? (No.) If they did, why didn’t they become popular years ago? (Not fashionable.) </p><p>The main reason for this kind of behavior is insecurity, a subject about which many scientists have written extensively. If you’ve been around a long time, people trust you more and feel secure in their purchase. This is why heritage is a good differentiator.</p><p>Minds are insecure for many reasons. One reason is perceived risk in doing something as basic as making a purchase. Behavioral scientists say there are five forms of perceived risk:</p><p>1. Monetary risk. (There’s a chance I could lose money on this.) <br>2. Functional risk. (Maybe it won’t work, nor do what it’s supposed to do.) <br>3. Physical risk. (It looks a little dangerous. I could get hurt.) <br>4. Social risk. (I wonder what my friends will think if I buy this.) <br>5. Psychological risk. (I might feel guilty or irresponsible if I buy this.) </p><p>All this explains why people tend to love underdogs but buy from the perceived leaders. If everyone else is buying it, I should be buying it. </p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LsmA187spNs:egbKvk2SWu4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LsmA187spNs:egbKvk2SWu4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LsmA187spNs:egbKvk2SWu4:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LsmA187spNs:egbKvk2SWu4:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LsmA187spNs:egbKvk2SWu4:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/LsmA187spNs" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/the-mind-and-purchasing-decisions.html tag:typepad.com,2003:post-6a00d83451b74a69e2011571afe05c970b 2009-07-04T00:10:00-04:00 2009-07-04T00:10:00-04:00

With the rapid adoption of social media, we have accelerated into a network economy. In a network economy, connectivity enables value to be created and shared by network members. The larger the network, the greater the potential benefits. In the...

Derrick Daye <div xmlns="http://www.w3.org/1999/xhtml"><p>With the rapid adoption of social media, we have accelerated into a <a href="http://www.opposableplanets.com/future/2009/01/open-beats-closed-four-principles-for-doing-business-in-the-network-economy/">network economy</a>.  In a network economy, connectivity enables value to be created and shared by network members.  The larger the network, the greater the potential benefits.   In the digital world, network activities take place on an open platform that enables participation and cloud computing (think Wikipedia and widgets).</p><p>In networks, some members are more connected and active, and therefore have more influence.  These influentials are important members because they add significantly more value to the network.  In the digital world, they blog, twitter, upload videos, experiment with new gadgets, and create widgets.  As early adopters, they tend to be trendsetters that are followed by their friends and sometimes the masses.  The book, the <a href="http://en.wikipedia.org/wiki/Whuffie">Whuffie Factor</a>, talks about Social Capital, and how our society is increasingly motivated to become more useful and creative.  Today, more people want to be influencers, and they want to be enabled.</p><p>In 2009, Twitter has emerged as one of the most talked about platforms in the network economy.  Indeed, there is a simple network exchange on Twitter:  influencer creates bite-size content, and follower discovers new information.  Here are a few examples of the exchange:</p><p>•    <a href="http://twitter.com/GavinNewsom">Gavin Newsom</a>, mayor of San Francisco and California Governor Candidate, has over 500,000 followers.  He keeps his followers informed about upcoming events and fundraising, and enables them to interact with him directly.</p><p>•    <a href="http://twitter.com/Astro_Mike">Mike Massimino</a>, a NASA astronaut, has over 400,000 followers.  He combines his human life story with a behind the scenes look at being an astronaut.</p><p>•    And of course there is <a href="http://twitter.com/Oprah">Oprah</a>, approaching 1.4 million followers.</p><p>Twitter makes it easy to share your voice and build your presence in the community.  </p> <p> RegularGeek’s comment sums up the value:  “Even someone like myself, and I do not have a huge social media presence, can talk to and possibly influence about five thousand people. If I have two thousand subscribers on the blog, Twitter, FriendFeed and Facebook, the number of unique people could be around 5,000. That is direct contact, and the network effects could create an audience much larger.”</p><p>While we are all familiar with Twitter, there are many more communities that engage and enable an influential audience with network principles.  One of the key elements of a network is the idea of reciprocity.  The idea of “I win, you lose” doesn’t work in a network, or it will fall apart.  Instead, there must be mutual win-win exchanges.  One such example is at Triggerstreet, was founded in 2002 by Academy Award Winner Kevin Spacey, which is a community for emerging artists.  The promise of the network is to democratize exposure and offer a career boost through a network of peers who review your work, rate it, and provide feedback.  Further, the network has engaged influentials in the form of participating judges, including Michael Myers, Sean Penn, Snoop Dog, Sheryl Crow, and Liv Tyler.</p><p>It is this very concept of participation by influentials that is becoming increasingly important with each passing day.  In our world of choice and overcapacity, influentials are an important element of the decision making process.  As we de-emphasize paid media such as television commercials and print ads, the power of earned media and word of mouth is amplified.  As you consider new ways to share your story and build your reputation, learn from entrepreneurial initiatives that listen to and engage the influentials.</p><p>Our first example is <a href="http://www.jodange.com/">Jodangle</a> which helps you listen to and monitor the online chatter by influentials.  In an environment where influential content originates from an exploding number of information sources, Jodange provides intelligence on who and what is influencing customers, competitors, and the overall marketplace.  In April 2009, <a href="http://blog.tmcnet.com/blog/rich-tehrani/financial/jodange-opinion-and-sentiment-analytics-gets-funded.html">Jodangle received $1.2 million of investments</a>.</p><p>Our second and third examples are currently in development at <a href="http://www.dreamitventures.com/">DreamIt Ventures</a>, which helps entrepreneurs launch their ventures and build great companies.  <a href="http://www.trendsta.com/">Trendsta</a> is a new way for trendsetting teens to test and review the latest hot products.  Like <a href="http://www.bzzagent.com/">BuzzAgent</a>, the principal is that word-of-mouth marketing is powerful.  Trendsta has even more of a laser focus on the influentials by engaging trendy teens in the digital world.  Our final example is <a href="http://www.scribnia.com/">Scribnia</a>, which is a rating and discovery engine for bloggers and columnists.  Much like Triggerstreet, the promise is to build an influential community that is engaged in sharing creative work and providing feedback.</p><p>Consider your role in the network economy.  How you are going to add value to and expand your network?  As you build your presence and your reputation, listen to the conversation around you, pursue authentic participation, and engage influentials who can amplify your message.<br><br>Contributed By: David Capece, <a href="http://sparxoo.com/">Sparxoo</a></p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p> <p><script src="http://feeds.feedburner.com/%7Es/BrandingStrategyInsider?i=http%3A%2F%2Fwww.brandingstrategyinsider.com%2F2009%2F06%2Fhow-do-i-judge-marketing-firms.html" type="text/javascript"></script></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=2tmrmBqR-Gs:dh-oe364_aU:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=2tmrmBqR-Gs:dh-oe364_aU:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=2tmrmBqR-Gs:dh-oe364_aU:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=2tmrmBqR-Gs:dh-oe364_aU:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=2tmrmBqR-Gs:dh-oe364_aU:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/2tmrmBqR-Gs" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/engaging-influentials-twitter-and-beyond.html tag:typepad.com,2003:post-6a00d83451b74a69e2011570b3ec27970c 2009-07-03T01:30:05-04:00 2009-07-03T12:50:34-04:00

“Make it bigger,” the executive screamed from the corner of the room as I desperately sought a sign-off for an ad featuring a major fashion brand. This wasn’t the first time such a situation came up. In fact, every meeting...

Martin Lindstrom <div xmlns="http://www.w3.org/1999/xhtml"><p>“Make it bigger,” the executive screamed from the corner of the room as I desperately sought a sign-off for an ad featuring a major fashion brand. This wasn’t the first time such a situation came up. In fact, every meeting I had always ended up in discussions about the placement and size of the logo – it was as if that one by one inch space, over time, had become the holy grail of branding – the rest was more or less an ad-on. </p><p>Let’s be frank – we live in a logo obsessed world. Pay a quick visit to Times Square and you’ll see what I mean. But is the magic still in the logo as we are exposed to some 2 million television commercials throughout life until we reach the age of 66 – or do we continue to be caught up in a format which once worked but, with the passage of time and the changed media picture, is now out of date?</p><p>I decided to find out. Over the years I’ve been stunned by the fact that we smoke more – not less. Admittedly the biggest increase of new smokers takes place in Asian and Eastern European countries. That said, even in the U.S. increases in smoking remain steady – not decreasing as we all want to convince each other it is, and all this despite the fact that we all know it is unhealthy. It is almost impossible to light up a cigarette indoors. Remember that advertising in most countries were banned decades ago, still brands like Marlboro rank in the very top, over the most expensive brands in the world – why?</p><p>The only way to find out was to understand what really goes on in our subconscious mind. Project Buyology – the largest NeuroMarketing project of its kind in the world – scanning some 2,000 consumers worldwide – wanted to answer exactly that question. What are the tricks the tobacco industry knows which the rest of the world somehow has missed? Estimates today claim that 85 percent of everything we do, every minute, takes place in our subconscious mind. Was this where the battle was taking place?<br>The answer was to be found in a small region in our brain called the neuclus accombens – also called the craving spot. It is a small area in our brain which controls our pleasures – and addictions too, such as smoking. It is a lie detector. It may be that you claim not to be affected by ads for tobacco smoking – the neuclus accombens however will tell you the truth. </p> <p>Over the years I’ve observed (and admittedly admired) the way tobacco companies have crafted their clever brand strategies. Marlboro’s solid sponsorship of the European Formula 1 – a race somewhat similar to Nascar race in the U.S. – had become iconic for the brand with it’s red Ferrari cars. Can cigarette cravings be triggered by images tied to a brand of cigarette but not explicitly linked to smoking—say, the sight of a Marlboro-red Ferrari or a camel riding off into a mountainous sunset? Do smokers even need to read the words Marlboro or Camel for the craving spots in their brains to compel them to tear open a cigarette pack? In the U.S. the cowboy did its job. Joe Camel or the Camel Trophy race – not to mention the Camel or Marlboro merchandising line – all seem to play an important role in building a brand  under circumstances where advertising was totally banned. But how powerful was it?<br>With the support of one of Britain’s leading scientists, Dr. Gemma Calvert, of Oxford – and by the using the MRI – arguably the most sophisticated brain scanning technique in the world our objective was to discover the answer. </p><p>One by one we would expose smokers, former smokers, and people considering smoking – in short a raft of different scenarios all with some relationship to smoking to the iconic pictures while we scanned their brains in order to understand the activation in the neuclus accombens. </p><p>Over a two-month period, our smokers filed in and out of Dr. Calvert’s Oxford laboratory. What parts of their brains would light up as they watched these logo-free images?</p><p>All of our subjects were asked to refrain from smoking for two hours preceding the test, to ensure that their nicotine levels would be equal at the start of the experiment. First, both groups were shown subliminal images that had no overt connection to cigarette brands—the aforementioned western style scenery, including cowboys, beautiful sunsets and arid deserts. Next, to establish a comparison, they were shown explicit cigarette advertising images like the Marlboro Man and Joe Camel on his motorbike, as well as Marlboro and Camel logos. Dr. Calvert and I wanted to find out if the subliminal images would generate similar cravings to the images generated by the logos and the clearly marked Marlboro and Camel packs.</p><p>To no one’s surprise, the MRI scans revealed a pronounced response in the volunteers’ nucleus accumbens—the area we now know to be involved with reward, craving, and addiction—when they viewed the actual cigarette packs. But what was more interesting was that when the smokers were exposed to the nonexplicit images—the red Ferrari, the cowboys on horseback, the camel in a desert—over a period of less than five seconds, there was an almost immediate activity in the craving regions of their brains in the exact same regions that responded to the explicit images of the packs and logos. In fact, the only consistent difference was that the subliminal images prompted more activity in the volunteers’ primary visual cortex—as might be expected, given the more complex visual task of processing those images.</p><p>More fascinating still, when Dr. Calvert compared the brain’s responses to the two different types of images, she found even more activity in the reward and craving centres when subjects viewed the subliminal images than when they viewed the overt images. In other words, the logo-free images associated with cigarettes, like the Ferrari and the sunset, triggered more cravings among smokers than the logos or the images of the cigarette packs themselves—a result that was consistent for both Camel and Marlboro smokers. </p><p>But why is that? Come with me – we have to go to the doctor’s office – let’s say you have a terrible headache. Let’s imagine we enter the consultation room which to our surprise is packed with Panadol logos, on the wall, on the desk, there’s even a neat decoration of the latest Panadol packs displayed behind the doctor as he’s sitting writing notes wearing a Panadol hat. As you explain about your terrible headache – the doctor in response replies – “hmmm – I’d probably recommend Panadol to you.”  What would your reaction be? Guards up! That’s exactly what happens in today’s world of advertising. In order to survive our guard goes up – this is not just the case with tobacco smoking, but for almost every category – this is our defence mechanism. </p><p>So what does this mean in practical terms? Let’s take an express train back to the year 1915 – the year the original counter Coca-Cola bottle was invented. The original brief was to develop a bottle so smart that if you dropped the bottle on the floor and it smashed into thousands of pieces of glass you’d still be able to recognize the brand.  Grab any iPod and you won’t be able to find the logo on the front – yet the iconic look is enough for you to know what brand it is. The same is the case with any picture from United Colors of Bennetton, a McDonald’s roof, a Tiffany’s rubine blue box or Marlboro’s cowboy.</p><p>I call my theory Smash Your Brand – a theory which simply aims to move on from the logo – and begin to have what I call “Smashable” components. A color, a shape, a sound, a smell – you name it – indirect signals which all tells a story about the brand – without having to show the logo. So why is this so much better – because you bring the consumer with you on a journey – you engage the consumer in figuring out who’s behind the message – and most importantly you talk to the subconscious mind. The logo is not yet dead but I would claim that its days are numbered – the fact of the matter is that the battle ground is no longer to take place in our conscious mind – instead the true decision making process will happen at a level in our brain which, until recently, was impossible to reach – thanks to the marriage of science with marketing we’ve now finally begun to understand what our true Buyology is all about.</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=-G6A7CzcDrE:ee_xnVLs84A:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=-G6A7CzcDrE:ee_xnVLs84A:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=-G6A7CzcDrE:ee_xnVLs84A:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=-G6A7CzcDrE:ee_xnVLs84A:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=-G6A7CzcDrE:ee_xnVLs84A:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/-G6A7CzcDrE" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/days-of-the-logo-numbered.html tag:typepad.com,2003:post-6a00d83451b74a69e2011570b2fd97970c 2009-07-02T00:10:00-04:00 2009-07-03T01:43:51-04:00

Not too long ago I was interviewed by Amanda Tattam of Melbourne University's Up Close program. Here's the discussion that transpired. Amanda Tattam The massive growth of luxury goods has now extended deeply into China, India and other markets. Estimates...

Mark Ritson <div xmlns="http://www.w3.org/1999/xhtml"><p>Not too long ago I was interviewed by Amanda Tattam of Melbourne University's Up Close program. Here's the discussion that transpired.</p><p>Amanda Tattam <br>The massive growth of luxury goods has now extended deeply into China, India and other markets. Estimates vary, but some say the luxury market is worth between 60 billion and 20 trillion US dollars, including consumers who are trading up. That is, the increasingly wealthy middle classes, who 30 years ago, would have thought it luxurious to have two TVs in a household. Mark, can you explain how a luxury brand distinguishes itself from other brands? </p><p>Mark Ritson<br>The question today of what makes a luxury brand a luxury brand and how do we distinguish it is very hard to answer. The standard business response is to say, ‘they are more exclusive’. And we get exclusivity by having high price and relatively small amounts of the product available. The reality, however, of luxury brands is that they are sold in their millions, and in some cases, are not priced that much higher than the standard output. The only way I can really answer your question is to say, it is all relative. As you said in your introduction, it wasn’t that long ago in Australia that we would have considered two televisions to be a luxury, or even further back, one colour television. And you can make a strong argument, for example, that Starbucks in China, right now, is a luxury purchase – because of its cost, because of how frequently it is purchased by many people. So, I think the long answer is a complicated one, but the answer is, it depends who you talk to. I think in the business community what we would say, is that there is a small cluster of ‘more expensive brands’ which have a distinct strategy that we would identify as being ‘luxury brands’ and they start with the Rolls Royces and the Tiffanys and the Louis Vuittons of the world. And, I think that tends to be how we see them. </p><p>Amanda Tattam <br>Okay. So, what is the difference between ‘old’ and ‘new’ luxury for example? </p><p>Mark Ritson<br>It is an interesting one. It isn’t actually related to the age of the brands. So, two of the new classic luxury brands would be Coach, which is more than 60 years old, and in many cases would refer to Burberry, as using new luxury strategies. And Burberry is 151 years old. So, it isn’t their actual age. The term, ‘new luxury’ refers to a different approach to marketing luxury brands. A different approach in the sense that there is more focus on customers, greater production of the numbers. So, they might still have higher prices, but if you look at the typical Coach handbag, which is a well-known brand Japan, China and America, Coach would be making significantly more of it than the ‘classic’ old luxury brands like Gucci or Prada. And the final limit of new luxury which is of, I think, great distinction, is the new luxury brands have embraced production in China, far more so than the older luxury brands that continue to make most of their products, in some cases, in the traditional European artisan centres. </p> <p><br>Amanda Tattam<br>Okay. When you market a luxury brand, what instincts and desires are you really appealing to and has that changed over time, do you think?</p><p>Mark Ritson<br>Clearly, when you are marketing luxury brands, you are selling more than the functional product itself. No one buys a Louis Vuitton bag for four or five thousand American dollars, simply because they want a bag. And, indeed, if you look at luxury watches, we spend, in many cases, tens of thousands of dollars for these items. Clearly we don’t need that, because our phone tells us the time. There is usually a clock in the room. We could buy a one-dollar watch, which would do an equally good job. So, beyond the function there is something else, and it is clearly the symbolic. Clearly, it is the identity, which the brand confers upon the owner. You might see that as being a sense of superiority, perhaps. But we don’t think so within luxury brands. We like to think – and I think it is true of most of the customers that we bring into luxury brands that the real attraction has always been a link to ‘something special’. A link to a story, or a founder, or a creator or a time, that is something a little bit special. And I think it is that ‘authenticity’. When one buys a Dior handbag, there is a strong line of authenticity, going all the way back to Christian Dior, 1947, this incredible moment of fashion. So, I think what we are really appealing to in a world where most people feel dislocated from any sense of authenticity, here is something which is ‘pure’, here is something which has a ‘specialness’ to it and you can be a part of that. </p><p>Amanda Tattam<br>You’ve noticed that there is a proliferation of these cheaper imitations, the fakes, especially with jewellery and shoes and handbags and so forth, this doesn’t seem to damage the genuine article, though, why is this so? </p><p>Mark Ritson<br>It is a very complex picture. And, I think, before we get onto these counterfeits and talk about why they don’t damage them, let’s also be clear that it isn’t a legal practice and certainly it is true that all the luxury brands have worked together with various different countries and law forces to attempt to reduce them. Now, having said that, from a business point of view, counterfeit goods have absolutely no impact whatsoever on the success of luxury brands. In fact, they may even work to their favour. The reason, first of all, why they don’t damage a luxury brand, is very simple, I don’t think that, in the history of Gucci, they’ve lost a single customer who bought a counterfeit rather than the genuine item. Now, do people buy the counterfeits? Absolutely, in their thousands. Would any of those people bought the genuine article? Absolutely not. If one is paying ten thousand dollars for a bag, it is certainly not because one is attracted to just the bag. It is the brand itself. And when one buys a counterfeit bag one is not buying the brand, and the consumer knows that. So, the first thing to say is that, I don’t think it cannibalises the sales.</p><p>Now, another argument that is often used with counterfeits, is ‘yes, but it damages the brands exclusivity, to see all of these Louis Vuitton, Gucci, Prada bags walking around the streets’. Again, that may be true, but I’d offer an alternative explanation as well, which is: you’ll often see someone walking down the street and you might think in your own mind, ‘that’s not someone who should be carrying that beautiful Gucci bag. It must be a fake.’ In reality, perhaps it is not. And yet, that counterfeit mindset often allows us to offset, the ‘non-exclusive’ image of the brand. So, are counterfeits a problem? Yes. Do they cause a major impact on these brands? No. And in fact, many of the luxury brands use them very strongly to measure market demand. One of the reasons you know that a luxury brand is healthy, is when it has attracted a good deal of counterfeits. <br><br>The black market is much quicker, much faster, much leaner, much more entrepreneurial. So, when they start to copy your bags in Canal Street or in the markets of Shanghai, it is because they’ve recognised that market demand for that brand is growing. But it is fair to say that we spend a lot more time in luxury brands worrying about what is called the ‘gray market’. The black market is when you sell fake or counterfeit or stolen goods. The gray market is when you sell genuine products but through non-affiliated or non-endorsed channels. Everyone has bought luxury products through the gray market, they just don’t know it. It is a genuine watch, but it is sold to you through someone who isn’t one of the approved sellers. And he has bought that watch, from either a wholesaler from another country, he has got them in a cheap job lot, and he is selling them to you in a discount price in a non-appropriate way, in a non-appropriate place to a non-appropriate customer. These are the people that damage our brands. Because, over time what happens is, the prestige and exclusiveness of these brands is damaged when they are sold at discounts in the wrong places to the wrong people. </p><p>Amanda Tattam<br>You touched then about fashion and so forth, how does gender influence things, are there different ways that you market to men and to women and what about in different parts of the world, do Asian women respond differently to advertising, than say, western women, I know we’re using very broad terms here, ‘Asia’, ‘west’, but – and also the other demographics, age and race – I know there are some big topics there, but-</p><p>Mark Ritson<br>Gender is not as important as we might think. Luxury has always been a predominantly a female market; age is incredibly important. And it has become more important in the last five to ten years. We see a group of – to use the common phrase, Baby Boomers – but, essentially this demographic group that we see across the world, these people are now in their 60s and beyond. They have a large amount of money. They have limited amounts of time. Still, they like to travel and they know they are not going to be around forever. These people are discerning. You know, if you’re going to buy a bottle of wine and I’m 65 years old and I’ve 250,000 dollars in the bank, you know what? It is going to be a good bottle of wine. The final issue of race is an intriguing one, particularly in North America. I personally believe that the face of luxury in America is ‘black’. The group that leads luxury is not this WASP community of very well off middle aged Americans – who do buy their luxury brands – but the people who lead that market, are, for me, for the most part, African American. It would be a mistake to see, for example, the hip-hop community as being not consistent with the luxury brands. If anyone has grasped the true meaning and heritage of luxury brands, it is that African American community. So, I think there, race plays an interesting role to. </p><p>Amanda Tattam<br>Sure. So, in Asia, what brands or products do customers identify more strongly with?</p><p>Mark Ritson<br>It is interesting and I think if you look at the Asian region, there are a couple of different stories playing out. The first and the one we shouldn’t forget is the story of Japan. Japan has, for at least the last forty years, been the leading market for all things luxury. It is a generalisation, but it holds true almost every time, that all great luxury trends, all great brands have found success first in Japan. Very simply because the Japanese are probably the most discerning and tasteful customer on the planet. They love heritage. They appreciate the finer things in life. And it is very hard to find any example of a luxury brand that has not first had success in Japan. </p><p>Amanda Tattam<br>Even in good times and bad?</p><p>Mark Ritson<br>Especially in bad times. So, one of the intriguing things about luxury brands and Japan is a notable example, they’ve had a very tricky ten or fifteen years, only now really have they come through what has been one of their worst times in their postwar economy. And yet, during this time we have seen sales of most luxury items, whether it be luxury wine, watches, jewellery, leather goods, fashion, all of these products have sold spectacularly well. So yeah, even in good times and bad. Look, aside from Japan within Asia, clearly the other story is the story of China. And we are seeing in China a remarkable revolution in luxury. All the research that has been done, all the indicators we have so far, suggest that the Chinese consumer, is as, if not more interested in luxury brands than the Japanese consumer. So, once you do the maths on that one, it becomes pretty obvious where the future of luxury will be. And of course, one of the things that is feeding into that is that when, a new economy, like the Chinese economy, really gets going, it begins with luxury. It doesn’t start with small, domestic brands. It trickles down from the top. We saw that in Eastern Europe 15 years ago. The first stores to open in East Germany, for example, were the Versaces of the world. So, in that sense, I think there are two stories. The oldest story in the world, that is, of Japanese discretion and the story of Chinese growth. And yet, both I think represent the two, most important poles of the luxury consumption. </p><p>Amanda Tattam<br>So, you’ve talked about these demographics, what kind of market research and methodologies are used before you decide how money should be spent in a marketing campaign? </p><p>Mark Ritson<br>There are many so-called ‘old luxury brands’ that would perceive research to be the wrong thing. And will have a long, 200 year old history of being very successful and doing absolutely no research of any kind at any time on anyone. They would believe that their brands are about creativity, about fashion, and the definition of fashion is not about giving people what they want, it is about changing things. The creative directors make the decisions and the consumers will follow them. It is fair to say, however, that in the last five years, we’ve seen a revolution – and I don’t use that word lightly – from some of the brands who have used extensive market research. Similar to the kinds that we would see in the consumer goods: focus groups, surveys, the analysis of sales data. So, it isn’t the most advanced research. But there is a growing focus on doing it. And I think that is probably the biggest question mark right now for most luxury brands: to what degree should we ask the consumer what they want? </p><p>Amanda Tattam<br>So, as high-end consumers become more discerning and ethically driven with their purchasing, how does the luxury industry handle concerns for example, the use of sweatshop labour or sustainability issues? </p><p>Mark Ritson<br>It is an interesting one and for once it is not that relevant to luxury brands. And I say that because, the luxury brands have never had a problem with sustainability or with sweatshop labour. They’ve been playing a very sustainable game for a very long time. The idea of using sweatshop labour would be literally impossible for a luxury brand. Not because of any ethically driven decision making, but simply because of the quality and the huge necessity to produce the very best clothing or products – you simply wouldn’t use people who weren’t artisans, that weren’t very heavily remunerated, that spent a lifetime working for you. I think on the environmental issues again, there are some key questions. Specifically, I think in the areas of fur and in the way that animals are treated and in animal testing. But again, with those to one side, you can again argue if you look at the way that premium wines are grown and the way in which the land is respected, if you look at the relatively small amounts of product that are used, in a very sustainable way because they’re very expensive products, actually the luxury brand industry, I think, has something to teach the consumer goods industry on sustainable business practices too. Again, not because there has been any ethical orientation within these companies, simply because when the raw materials are so expensive and the need to produce quality is so paramount, a sustainable approach tends to be the one that is adopted. </p><p>Amanda Tattam<br>Finally, I would like to ask you about the expansion or contraction of the market for luxury goods, does making luxury goods more affordable to more people actually diminish their value – because, a lot of people want to buy them because they know only a small number of people have them, aren’t they always going to be by their very nature, exclusive and only available to a very small group?</p><p>Mark Ritson<br>It is absolutely true that in the original histories of most luxury brands, there was a natural limitation on the number of products that were available. So, exclusivity originally was, in the case of Champagne, for example – Champagne is an area, it is not a grape – there weren’t that many fields in Champagne, and the original manufacturer of champagne was a problem, because many of the bottles, almost 40% in some years, would explode. Because, in the early days, they hadn’t worked out the correct manner of storing the champagne. This is way champagne became a luxury wine. Because there wasn’t that much of it. There was natural exclusiveness. In the global world we live in today, we certainly sell a very large amount of these so-called exclusive brands. So, if it was purely being based on the number being sold, it would be very hard to claim that a brand like Bollinger, for example, is exclusive when it is selling two hundred or three hundred thousand cases of champagne a year. So, the trick is to get as many sales as possible, but while maintaining a very high level of quality and also using price to maintain that exclusiveness. So, if we were to begin to lower the prices of these luxury brands, combined with their large sales, it perhaps would begin to tarnish their images and that is where, I think, you will see luxury brands in trouble, when they begin to sell – not just a lot of these things, but at lower prices, not monitoring the quality carefully enough. <br><br>The reality for most luxury brands is their shareholders these days, or their families demand enormous global sales. So, while they are certainly more available than they once were, in terms of where you can buy them and in what numbers, price prevents you from going out and drinking a bottle of Bollinger everyday. Simply because one cannot afford to do it. So, in that sense it is a balancing act. The numbers sold these days are extraordinary, of course, but the price, the quality, the creativity, if they remain leading and in the appropriate place, then, as we have learned over the last fifteen years, a luxury brand can sell extraordinary large numbers and still be seen as extraordinarily exclusive.</p><div><span class="Apple-style-span" style="font-size: 11px; font-family: 'Lucida Grande';"> </span><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p><span class="Apple-style-span" style="font-size: 11px; font-family: 'Lucida Grande';"><p><a href="http://www.plus2marketingconsultants.com/"></a></p></span></div></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LUJApE6rEyY:F_9xTrmOhp8:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LUJApE6rEyY:F_9xTrmOhp8:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LUJApE6rEyY:F_9xTrmOhp8:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LUJApE6rEyY:F_9xTrmOhp8:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LUJApE6rEyY:F_9xTrmOhp8:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/LUJApE6rEyY" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/marketing-luxury-brands-qa.html tag:typepad.com,2003:post-6a00d83451b74a69e20115709b1090970c 2009-07-01T00:10:00-04:00 2009-07-01T00:10:00-04:00

This weekend, if the papers are to be believed, we might see the first British men's finalist at Wimbledon for more than 70 years. I am not convinced that Andy Murray will make it to an apparently inevitable final against...

Mark Ritson <div xmlns="http://www.w3.org/1999/xhtml"><p>This weekend, if the papers are to be believed, we might see the first British men's finalist at Wimbledon for more than 70 years. I am not convinced that Andy Murray will make it to an apparently inevitable final against Federer on Sunday, but, irrespective of his performance on the courts this week, the bigger marketing question relates to the potential appeal of 'Brand Murray'.</p><p>The concept has reached a peak in recent months, fuelled by both the player's short odds to win Wimbledon and his decision earlier this year to join 19 Entertainment, David Beckham's agency, which is widely portrayed as the epitome of brand-building expertise in relation to celebrities and sports stars.</p><p>A source close to the agency, quoted last week, confirmed that work on Brand Murray had begun: 'The ambition is global. The potential is enormous.'</p><p>Yes, and the bullshit is plentiful. Despite predictions that Brand Murray will soon be worth £100m a year, the harsh reality is that Murray is a fine tennis player, but a hopeless prospect as the next Beckham, no matter how advanced the brand strategy applied to his future career.</p><p>Let's start with a fundamental commercial limitation for Brand Murray - he is not exactly a looker. For all the talk of Brand Beckham, the fact remains that David was beautiful long before the agents and brand gurus came calling. Former Wimbledon champion and cultural diplomat Pat Cash got himself into a bit of trouble last week when he pointed out that Murray was not in the same league. According to Cash, Murray is 'never going to be eye-candy' and has 'the most boring, monotone voice in the history of the planet'. Cash went on to extol Murray's ability on court, but his comments highlight the importance of aesthetic appeal when you are up against the likes of Nadal and Ivanovic.</p> <p>Another potential obstacle for Brand Murray is his personality. In a series of public gaffes, he has managed to alienate far more than he has attracted. There was the unfortunate criticism of himself and his opponent in 2006 that 'we both played like women'. Last year's flexing of muscles on court after each victory did not go down too well either. Last week, Murray continued the trend with extended criticism of the new Wimbledon Centre Court roof. There is none of the mystery of Borg or the positivity of Agassi. Just a miserable, slightly annoying petulance.</p><p>The biggest problem, though, is his nationality. Murray is a proud Scot. He made that clear in 2006, when he jokingly refused to support England in the football World Cup, for which Scotland had failed to qualify, and claimed his sympathies lay with any team that faced England in the competition.</p><p>FutureBrand marketing director Tim Hill might think that linking Murray with a 'quintessentially English' brand like Fred Perry is 'very clever'; I think it is stupid. How can Fred Perry hope to boost its brand from a tie with a player who, to his credit, has never made any secret of his love for Scotland, or his sporting enmity for England?</p><p>The endorsements that will get their ROI from Murray are those that better match the player's dour personality and national associations. It's no surprise that brands like Royal Bank of Scotland and Highland Spring currently occupy valuable positions on his shirt.</p><p>David Beckham was a once-in-a-lifetime occurrence, and let's remember that he has never won a thing for his country. Not every sports star wants to be, or can be, a megabrand. Becoming a great tennis player would be enough for most people, and, I suspect, for Andy - not Brand - Murray.</p><p>30 Seconds On…Fred Perry</p><p>    * Fred Perry was born in Stockport, Cheshire, on 18 May 1909. Despite his northern, working-class background, he went on to win three Wimbledon titles in the 30s and is still one of only six men to win all four Grand Slam tournaments.</p><p>    * Perry was first a table-tennis player, becoming world champion in 1929, and took up tennis at 18. He was world number one for five years, the first three as an amateur.</p><p>    * He was almost as famous for his looks and urbane personality as his tennis. He was rumoured to have had an affair with Marlene Dietrich.</p><p>    * After retiring as a player in 1939, Perry invented the sweatband, then launched his polo shirts in 1952.</p><p>    * The laurel logo, which appears on the left breast of each shirt, was inspired by the old Wimbledon logo. Fred, a smoker, initially considered a pipe as his emblem.</p><p>    * His father Samuel was a cotton worker who became the first general secretary of the Co-operative Party and had two brief stints as MP for Kettering in the 20s.</p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LbjrTky4I7s:shpF9axJo54:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LbjrTky4I7s:shpF9axJo54:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LbjrTky4I7s:shpF9axJo54:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LbjrTky4I7s:shpF9axJo54:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=LbjrTky4I7s:shpF9axJo54:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/LbjrTky4I7s" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/07/when-the-brand-appeal-just-isnt-there.html tag:typepad.com,2003:post-6a00d83451b74a69e201157188a275970b 2009-06-30T00:10:00-04:00 2009-06-30T00:16:00-04:00

Today we're taking another branding question. Feyza, a marketer in Istanbul, Turkey asks... "What are brand attributes? Please describe the difference between brand essence and brand attributes!" Feyza thanks for your question. Attributes are more often used when referring to...

Brad VanAuken <div xmlns="http://www.w3.org/1999/xhtml"><p>Today we're taking another branding question. Feyza, a marketer in Istanbul, Turkey asks...</p> <p class="MsoNormal"><em>"</em><span lang="EN-US"><em>What are brand attributes? Please describe the difference between brand essence and brand attributes!"</em></span></p><p>Feyza thanks for your question. Attributes are more often used when referring to products than brands. A product's attribute might be a function or a feature. These functions and features often lead to consumer benefits. However, brands can have attributes too. The attributes may be personality attributes or they may be derived from the brand's products' attributes.</p><p>A brand's essence, on the other hand, has a very specific meaning. A brand's essence is its "heart and soul," its timeless quality. It describes who it is at its core. I like to express a brand's essence as [adjective adjective noun], so for Nike, it is "Authentic athletic performance" and for Starbucks it is "Rewarding everyday moments." Disney's essence is "Fun family entertainment."</p><p>Feyza, we also have a whole category on brand essence <a href="http://www.brandingstrategyinsider.com/brand_essence/">here</a>.</p><p>Have a question related to branding? <a href="mailto:ddaye@theblakeproject.com">Just Ask…<br></a></p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=WVA9iBoW8y0:ZiE0tanXrH4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=WVA9iBoW8y0:ZiE0tanXrH4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=WVA9iBoW8y0:ZiE0tanXrH4:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=WVA9iBoW8y0:ZiE0tanXrH4:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=WVA9iBoW8y0:ZiE0tanXrH4:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/WVA9iBoW8y0" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/what-are-brand-attributes.html tag:typepad.com,2003:post-6a00d83451b74a69e20115708c817f970c 2009-06-29T00:05:58-04:00 2009-06-29T00:49:03-04:00

Creative debates come and go. Some, like that of Tropicana's new packaging and London's 2012 Olympic logo are sure to have a long shelf-life. As Wolff Olins’ work on the 2012 logo continues to be scrutinized, we would like to...

Derrick Daye <div xmlns="http://www.w3.org/1999/xhtml"><p><a href="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e2011571810363970b-pi" style="display: inline;"><img alt="London-2012" border="0" class="at-xid-6a00d83451b74a69e2011571810363970b " src="http://theblakeproject.typepad.com/.a/6a00d83451b74a69e2011571810363970b-800wi" title="London-2012"></img></a> <br>Creative debates come and go. Some, like that of <a href="http://www.brandingstrategyinsider.com/2009/04/tropicanas-costly-lesson-in-listening-.html">Tropicana's new packaging</a> and London's 2012 Olympic logo are sure to have a long shelf-life. As Wolff Olins’ work on the 2012 logo continues to be scrutinized, we would like to gauge your reaction to the design above. To begin, two marketers share their opposing views.</p><p><strong>Loves it: Bryan Bedell </strong><br>Just like most people, our first reaction to the London 2012 logo was shock. But we talked about it all morning, and by 3pm, we decided we love it. And here’s why you should, too:</p><p>It’s not boring. The bright colours and distinctive design definitely do stand out, and it’s immediately recognisable.</p><p>It’s different. It avoids all the go-to pratfalls of current logo designs. No brushstrokes, feathered drop shadows, mirrored reflections, gradients, patriotic colours, rainbows, ribbons, landmarks, symbols of unity, maps, swooshes or globes!</p><p>It’s reproducible. It’s good to see a logo that’s so easily printable, broadcast-able, embroider-able and moldable. It even looks pretty great in black and white.</p><p>It’s flexible. A variety of colour combinations, shapes and patterns are available, keeping the logo slightly different on each view, but consistent. Keep in mind that an Olympic logo is almost always saddled with the logos of corporate partners. This square, bold mark will hold up.</p> <p>It’s the basis for a graphic system. Events require a complicated system of signage, identification, ornamentation and even architecture. This logo and its associated colours, shapes, type and patterns are the perfect starting point for some fantastic signage, event icons, banners, tickets, uniforms and merchandise.</p><p>It’s English. The two names that come to mind when we hear “British design” are two of our favourites of all time: Neville Brody and Peter Saville. Without being a direct knockoff, the 2012 logo is evocative of their work, the punk and new-wave movements, rave culture and everything we like about the UK.</p><p>It’s simple. Some of the greatest logos of all time involve two lines (the Christian cross) or three lines and a circle (Mercedes).</p><p>It cost £400,000. That’s probably a bargain for an incredibly high-profile complete graphic identity system for an international event designed by experienced professionals.</p><p>It’s unexpected. After years of forgettable, watered-down, designed-by-committee logos, it’s nice to see something different and well thought out for long-term relevance. Sure, it may not be perfect and the feel-good mumbo-jumbo used to sell it to the public was pretty silly, but we feel confident that once the logo sinks in and we see how it’s used and how other elements relate to it, it will become a source of pride for London and the Games.</p><p>Bryan Bedell works at Chicago-based design firm <a href="http://www.coudal.com">Coudal Partners</a>.</p><p><strong>Loathes it: Mark Ritson</strong><br>There is only one thing wrong with the London 2012 logo. It’s s#$%.</p><p>I can tell you this with total and utter certainty because I am a marketer. And unlike the po-faced designers that have lined up to defend Wolff Olins’ woeful efforts, I actually understand what marketing and branding are all about. First, you find out what people want. Then, you give it to them.</p><p>It’s not about being “counter intuitive” or “daring” or “energetic”. That works for the Turner Prize, but when it comes to designing the identity for the most important sporting event in Britain for 50 years, you should apply the rules of marketing. It’s about delivering on the brief and giving the target customer what they want.</p><p>Both of these challenges were very clearly laid out. The London Organising Committee for the Olympic Games (LOCOG) wanted to position 2012 as the games for everyone. And when the media asked everyone what they thought of the 2012 logo, they spoke with remarkable national unanimity: they hated it. They still hate it. And they will hate it when it comes time to represent London to the world.</p><p>Above, a brand “guru” is no doubt speaking in the singular and citing his own preferences and perceptions.</p><p>My position speaks with about 50 million times the power because I am not representing my own viewpoint, but that of the market – in this case, the British population. In the most representative study of public reaction to the logo, 68% of respondents “hated” the design. Not “disliked” or “felt neutral”, but hated it.</p><p>That is why the 2012 logo is so ineffective. Not because I say so or a design guru says it isn’t, but because the people it was designed to appeal to, to involve, to engage, absolutely hate it.</p><p>Remember what our discipline is all about. Listen to your customers next time.</p><p>Mark Ritson is a co-author of Branding Strategy Insider, a renowned brand strategist and MIT Professor of Marketing.</p><p>Where do you stand?</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=xCYAnTaWhWw:AL6c9K93WHU:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=xCYAnTaWhWw:AL6c9K93WHU:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=xCYAnTaWhWw:AL6c9K93WHU:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=xCYAnTaWhWw:AL6c9K93WHU:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=xCYAnTaWhWw:AL6c9K93WHU:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/xCYAnTaWhWw" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/creative-debate-londons-2012-olympic-logo.html tag:typepad.com,2003:post-6a00d83451b74a69e2011570816ebb970c 2009-06-28T00:10:00-04:00 2009-06-28T00:10:00-04:00

Consumers are bombarded with more messages than ever before. Refining and clarifying your target segment is becoming evermore important as mass-messages are falling upon deaf ears. Specific, tailored and relevant messages, combined with consumer engagement and empowerment are elemental in...

Derrick Daye <div xmlns="http://www.w3.org/1999/xhtml"><p>Consumers are bombarded with more messages than ever before. Refining and clarifying your target segment is becoming evermore important as mass-messages are falling upon deaf ears. Specific, tailored and relevant messages, combined with consumer engagement and empowerment are elemental in the new marketing era. Less and less are market leaders dictating consumer needs through “push” advertising. By way of digital networking and publishing tools, consumers are creating consumer needs. To identify the key forces driving this marketing shift, we synthesized insights from over 40 industry professionals.</p><p><strong>From Company Push to Consumer Pull</strong><br>What is push and pull marketing? Push is the 30-second TV / radio spot. Push is the billboard and web banner. Push is the full-page magazine / newspaper spread. Push is becoming evermore difficult to push. The converse of push, is pull. Pull marketing is engaging; interactive; a two-way line of communication. To illustrate the push / pull marketing dynamic 15 years ago, if you were in the market to buy a TV, what resources would you have at your disposal? TV, radio, billboard, direct mail advertisements might have influenced your decision. Those messages are finely crafted to be persuasive. In essence: they’re bias. For a more objective view, you might turn to your friend that knows something about TVs. Or, you can go to Best Buy and they might be able to educate and inform your decision. In short, advertisements and a handful of “experts” were your resources. That was the push / pull dynamic then.</p><p>In the digital era, we can better manage and prioritize the influence of each resource. With the ubiquity of the internet, resources are seemingly endless; therefore you can choose which are more important as you refine our decision. Where in the past your decision was constrained to a limited number of resources, in the digital age, there are countless information hubs to help you choose one product over another. With the extensive consumer conversation on social media sites and product pages, what weight does the mass message—pushed from TV, billboard, radio, etc—carry when you’re making your decision? Though consumers will still soak up push marketing—and factor those impressions into their spending decisions—the internet and its vast networking reach typically bypasses traditional push media. In the past, the number of resources was limited—therefore each opinion meant more and consumers were just consumers. In today’s age, consumers are researchers, advocates, creators, promoters and marketers.</p> <p><strong>Reallocation of Marketing Efforts</strong><br>In response to this consumer empowerment, companies are developing new strategies to adapt and grow in this different marketing world. Consider the marketing landscape only 15 years ago. If a company wanted to launch a product, they would allocate X amount of dollars to cast a wide net of impressions to influence a buying decision.</p><p>In a world influenced by the digital consumer network, even the word “consumer” is limiting in its simplicity. In the most innovative marketing efforts, consumers are the creators, advocates, promoters, marketers and buyers. To have a presence in the new consumer world, marketers are facilitating the conversation and activities through valuable tools and concepts online. The most engaging marketing tools can be implemented in the digital world. With a multi-sensorial experience and a multitude of engagement opportunities, brands can enhance their consumer experience beyond the conventional marketing tactics.</p><p>Pull marketing combines viral, blogging, social media, SEO, internet marketing, RSS etc. into a methodology where consumers engage and build something with the brand. No longer is advertising an interruption between news, or a distraction in nature’s landscape. Marketing is more about choice and engagement, less than it is a distraction. If you are relying too much on heavily push media today, now is the time to embrace the paradigm shift towards consumer-powered marketing.<br><br>Contributed by: Ethan Lyon, <a href="http://sparxoo.com/">Sparxoo</a></p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Qg8itFJFpMk:T5DO2aJL9eI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Qg8itFJFpMk:T5DO2aJL9eI:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Qg8itFJFpMk:T5DO2aJL9eI:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Qg8itFJFpMk:T5DO2aJL9eI:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Qg8itFJFpMk:T5DO2aJL9eI:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/Qg8itFJFpMk" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/digital-marketing-and-the-new-push-pull-dynamic.html tag:typepad.com,2003:post-6a00d83451b74a69e20115715a9178970b 2009-06-27T00:10:00-04:00 2009-06-25T17:21:31-04:00

By 2020, branding will become the most significant value driver for boardrooms. Branding is already a very effective catalyst for better leadership; and branding helps the boardroom drive its shared vision. The primary objective of boardrooms is to build and...

Martin Roll <div xmlns="http://www.w3.org/1999/xhtml"><p>By 2020, branding will become the most significant value driver for boardrooms. Branding is already a very effective catalyst for better leadership; and branding helps the boardroom drive its shared vision. The primary objective of boardrooms is to build and sustain shareholder value and deliver competitive returns to shareholders. They must therefore manage by metrics, and balance short and long-term perspectives and performance. Brand equity is the combined measure of brand strength and consists of knowledge, preferences and financial considerations. Each of the measures under these three metrics is critical and the boardroom must ensure the brand portfolio scores highly in each to optimize its financial outcome.</p><p>Metrics Associated with Branding</p><p>Knowledge metrics: Measure a brand’s awareness and associations through the many stages of recognition, aided, unaided and top of mind recall. Similarly, the functional and emotional associations of a brand are important drivers of brand equity. Brands should score high on both awareness and association attributes.</p><p>Preference metrics: Measure a brand’s competitive position in the market and how it benchmarks to competing brands. Customers pass through various levels of preference toward the brand, ranging from mere awareness to strong loyalty and recurrent revenues from the customer base. A strong brand has the brand equity to build customer loyalty.</p><p>Financial metrics: Measure a brand’s monetary value through the various parameters of market share, price premium a brand commands, the revenue generation capabilities of a brand, the transaction value, the lifetime value of a brand and the rate at which brands sustains growth. These measures allow a company to estimate an accurate financial value of brand equity linked to marketing metrics. Some of them are examined in the following: </p> <p>    * Price premium: The financial advantage of a strong brand is its ability to command a price premium in the market. Measuring the differential price points between the brand and competing brands indicates the level of value-creation, and the premium adds to the overall brand equity.</p><p>    * Transaction value: The average transaction value per customer divided into segments, product segments and geographical markets. The trend of this metric shows how well the brand develops its customers in the form of cross-selling and/or up-selling to other products and brands.</p><p>    * Lifetime value: The average lifetime value of customers divided into segments, product segments and geographical markets. The trend illustrates whether the brand extracts more value from customers through their life cycle with the brand.</p><p>    * Growth rate: The level of brand strength and its equity in the market along with the level of customer loyalty and the pipeline of prospective customers determines the growth opportunity of the brand.</p><p>A comprehensive evaluation of brand equity involves measuring all the above three metrics as it ensures that the brand and its strength are valued in totality. Based on the detailed analysis of brand equity, it should be quite clear that brand equity is not just about top-line growth but also the bottom line.</p><p>Brand equity is an evolving concept. As branding evolves as a discipline, there will be many other aspects that provide input into the concept of brand equity. But measuring and managing it is a crucial and integrated element of a successful business strategy for Asian boardrooms. It illustrates how well they are performing.</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=kdBqpD53EN8:aiPZlvU36BQ:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=kdBqpD53EN8:aiPZlvU36BQ:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=kdBqpD53EN8:aiPZlvU36BQ:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=kdBqpD53EN8:aiPZlvU36BQ:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=kdBqpD53EN8:aiPZlvU36BQ:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/kdBqpD53EN8" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/the-metrics-of-branding.html tag:typepad.com,2003:post-6a00d83451b74a69e201157066c5d4970c 2009-06-26T00:10:00-04:00 2009-06-26T00:10:00-04:00

Today we take another question from a BSI reader like you... Roy, an executive in St. Louis asks... "I am on a search committee to select a company to help our organization with Branding. What are the questions or insights...

Brad VanAuken <div xmlns="http://www.w3.org/1999/xhtml"><p>Today we take another question from a BSI reader like you...</p><p>Roy, an executive in St. Louis asks...</p><p><em>"I am on a search committee to select a company to help our organization with Branding. What are the questions or insights needed in judging various companies?"</em></p><p>Roy, thanks for your question. Different companies have different types of branding expertise. For instance, <a href="http://www.theblakeproject.com">we</a> (a brand consultancy) primarily focus on market research informed brand positioning, strategy development and brand equity measurement. We want to help organizations differentiate themselves in meaningful ways. That requires a deep understanding of marketing research, consumer behavior and marketing strategy as it relates to business strategy. </p><p>Some companies focus on brand identity development. For the majority of people, this translates to names, logos and taglines.These deliverables require strong graphic design and copy writing abilities. They also require deep brand identity experience if the name, logo and tagline are to work in all situations over time. Some companies  call themselves branding houses, but they are primarily good at developing creative (graphics and copy) for marketing communications materials and campaigns. At their core - they are advertising agencies. Many of those agencies are better in some media than others, for instance print versus television versus web-based. Few agencies have the strategic abilities needed for the development of robust brand strategies based on deep consumer insight. Other branding companies (mainly consulting firms) focus on brand equity measurement (quantitative research), brand asset valuation or inside-out branding, all of which require an entirely different set of skills, including OD (organization development/design) skills for inside-out branding. </p><p>So how does one determine which organization would best serve your needs? First, you must carefully assess your needs so that you know what you are seeking. Once you have done that, you should make your selection based on the following:</p> <p>    * The types of branding projects they have done most often and most successfully (e.g., brand audits, brand strategy development, brand identity systems and standards, advertising campaigns, simple logo design, etc.)</p><p>    * The types of people they employ and which of them would be assigned to your project (e.g. marketing researchers, brand strategists, graphic designers, copy writers, direct marketing experts, web marketing specialists, account executives, social media experts, etc.)</p><p>    * Ask for specific, detailed client case studies coupled with client contacts for those projects so that you can confirm with previous clients just what the organization/consultant did, how they did it and what its outcome was.</p><p>The bottom line: If an agency has a hammer, it will treat everything as a nail. If it has a screwdriver, it will treat everything as a screw. Find out what tools, skill sets, and types of projects the agency or consultancy has focused on. In this way, you will know whether they are capable of helping you.</p><p>Finally, watch out for companies that "knock your socks off" with highly polished and compelling presentations delivered by their business development team, a group that you are likely not to see again after the business pitch. Ask to meet the people who will actually be assigned to your project. If they are labeled 'Guru's' be sure you know what their actual level of involvement with your brand will be. <br><br>Here are some related points of interest: we describe the difference between an advertising agency and a brand consultancy <a href="http://www.brandingstrategyinsider.com/2007/01/branding_just_a.html">here</a>. And we share what to look for when selecting an advertising agency <a href="http://www.brandingstrategyinsider.com/2008/01/selecting-an-ad.html">here</a>.</p><p>Best of luck with your search Roy.<br><br>Have a question related to branding? <a href="mailto:ddaye@theblakeproject.com">Just Ask…<br></a></p><p><em>Sponsored By</em>: <a href="mailto:ddaye@theblakeproject.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rNMwsLlubos:Dkjd3V9tb44:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rNMwsLlubos:Dkjd3V9tb44:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rNMwsLlubos:Dkjd3V9tb44:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rNMwsLlubos:Dkjd3V9tb44:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=rNMwsLlubos:Dkjd3V9tb44:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/rNMwsLlubos" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/how-do-i-judge-marketing-firms.html tag:typepad.com,2003:post-68464111 2009-06-25T00:02:00-04:00 2009-06-25T00:02:00-04:00

Customers will talk about your company, its products and services, whether you want them to or not. And online there are a multitude of places to do so. The question is, do you as a brand facilitate or participate? I...

Derrick Daye <div xmlns="http://www.w3.org/1999/xhtml"><p>Customers will talk about your company, its products and services, whether you want them to or not. And online there are a multitude of places to do so. The question is, do you as a brand facilitate or participate? I will argue that you should do both, and tell you why. </p><p>It is not unheard of for customers to eulogize - one only has to browse Trip Advisor to see that. It is most definitely not unheard of for customers to complain, or to seek answers to questions or solutions to problems. Consider Apple and BMW. They collaborated on the first proper integration of the iPod and the automobile, and are the only two brands I would consider getting tattooed, were that my thing.</p><p>Apple provided a <a href="http://discussions.apple.com/index.jspa">forum</a> for their customers back in 2000. Duane, who has posted 113,365 posts so far, is a 'Level 5' and the number one poster. A blogger said of Duane, "I'm guessing that if you play "Apple Related Trivial Pursuit" with Duane, Duane first kicks your ass and then takes your name." Apple describes the service as a user-to-user support forum where experts and other Apple product users get together to discuss Apple products. You'll find a wealth of information about your favorite Apple hardware and software products that will help you get the most out of your purchase. You can participate in discussions about various products and topics, find solutions to help you resolve issues, ask questions, get tips and advice, and more.</p><p>BMW, on the other hand, does not provide a forum for its customers. As a result, a plethora of home-grown forums have arisen from <a href="http://www.bimmerfest.com/">bimmerfest.com</a> to model specific <a href="http://e46fanatics.com/">e46fanatics.com</a>, meaning a time-consuming and sometimes fruitless Google search for information. It is still not too late for BMW to enter the fray, and provide value to its customers. Disenfranchising the people who have filled the void is not something I would do - rather BMW could provide:</p> <p>- a central directory of the forums<br>- access to specialist technical advice for problems that forum users<br>are unable to provide an answer to (there are plenty)<br>- access to information that owners of pre-owned BMWs should have, like<br>a copy of their vehicle's original specification or service history<br>- hosting for the forums, relieving a cost burden that users currently meet</p><p>There are five key reasons why I think BMW and other brands should do this:</p><p>1. It creates a perception that they care about their customers beyond the initial sale.</p><p>2. It builds loyalty. Not everything that is said on the Apple forum is complimentary, but I admire Apple for facilitating. It shows they are here to stay, and can take criticism.</p><p>2. It provides an opportunity for the manufacturer to keep close to its customers, and learn about the issues (and often ideas) that can inform their R+D program. There is plenty of feedback out there if they care to ask.</p><p>4. It provides an opportunity to touch customers. Today's 10 year-old BMW owner looking for an answer is tomorrow's customer for a new model.</p><p>5. You could not laser target the people who influence others in their circle to buy your product more precisely.<br><br>Contributed by: Fred Brown, <a href="http://www.lastexit.tv/">Last Exit</a></p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=AYhmJCR_Ehg:eC0mM0Pz-s4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=AYhmJCR_Ehg:eC0mM0Pz-s4:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=AYhmJCR_Ehg:eC0mM0Pz-s4:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=AYhmJCR_Ehg:eC0mM0Pz-s4:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=AYhmJCR_Ehg:eC0mM0Pz-s4:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/AYhmJCR_Ehg" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/building-trust-online-in-the-postsales-market.html tag:typepad.com,2003:post-68430281 2009-06-24T00:02:00-04:00 2009-06-24T00:02:00-04:00

Marketing is possibly the most widely misunderstood business topic in the managerial world today. The problem of marketing ignorance stems not from the difficulty of the topic. After all, marketing at its core is just about as simple as it...

Mark Ritson <div xmlns="http://www.w3.org/1999/xhtml"><p>Marketing is possibly the most widely misunderstood business topic in the managerial world today. The problem of marketing ignorance stems not from the difficulty of the topic. After all, marketing at its core is just about as simple as it gets. The problem is that to understand what a concept like marketing means is one thing, to actually apply the marketing principle to your day to day business life is an altogether more difficult challenge.</p><p>So, in brief. The philosophy of marketing revolves around a single, strikingly obvious idea. That idea is that we find out what people want before we start making and selling it....and yet when push comes to shove, they will continue to completely ignore the voice of the consumer when they actually make strategic decisions.</p><p>How can we account for this glaring mismatch of theory and practice?</p><p>Many managers seem to mistake market orientation for marketing orientation. Yes, there is a difference. In the former case, managers find out what the consumer thinks about their products and services. In the latter, the manager asks the marketing department what they think and they answer for the market. In doing so they demonstrate the presence of marketing gurus, possibly one of the most pernicious problems in the marketing world.</p><p>There are no gurus in marketing. To be a guru suggests you have immense knowledge, knowledge that can answer the strategic questions that a firm encounters. In marketing the last thing we need is a guru who thinks he or she knows what the market wants. The fact that they work for the company producing the product means they are just about the last person on earth who is likely to know how the customer is thinking.</p> <p>The minute you sign up to work for a company you have also signed away any remaining sense of customer orientation. You are no longer a consumer, you are a producer. Producer and consumer may see the same product before them but the personal significance of that product could not be more different.</p><p>The customer sees toothpaste. The brand manager sees the toothpaste too. But while the consumer then sees fewer trips to the dentist, clean teeth and fresh breath, the brand manager sees her career, her company car, her future social standing and perhaps her pension plan. When a manager/guru confidently describes what the customer wants they are actually simply describing what they assume/hope/imagine the customer wants.</p><p>One of the most humbling experiences for managers is to ask them how they think the customer thinks and then take them out onto the street to actually find out. The results are always revelatory. Another is to point out, in a room filled with senior marketing managers from a leading Wall Street bank, that not a single person in the room (barring yours truly) has ever had to actually purchase a mortgage because the bank provided them as a perk.</p><p>At Business School we train our marketing rookies to avoid this potential pothole by instilling in them a single, simple phrase that wards off marketing guruism. That phrase is: " I am a tool". We make them say it over and over until our lecture halls resonate to the sound of it. Typically, our MBAs spend the summer in internships with big blue chip organisations and, equally typically, some of them are asked by their managers to take a look at the latest company advertising, packaging, branding, price levels. They have MBAs in marketing after all - who better to suggest a strategic direction.</p><p>It is in these situations that our MBAs, or at least the ones who have been paying attention, raise their hand meekly and declare: "I am just a tool". A tool that connects market with manufacturer. A tool that avoids speaking for the market and instead goes out to the customer to get real, lived consumer perspective. A tool that then brings that information back into the organisation and uses it to influence decision making.</p><p>No gurus. The only gurus in marketing are fools. Its all about tools. Different tools of course for different jobs. Sometimes you need a very powerful tool. Sometimes a very cost efficient one. Sometimes one that gets the job done super fast. Sometimes one that uses quantitative data. Sometimes one that uses qualitative data. But always a tool.</p><p>So repeat after me. What am I?</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=aIiFZQl4v4o:MSlgmlnHc2s:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=aIiFZQl4v4o:MSlgmlnHc2s:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=aIiFZQl4v4o:MSlgmlnHc2s:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=aIiFZQl4v4o:MSlgmlnHc2s:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=aIiFZQl4v4o:MSlgmlnHc2s:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/aIiFZQl4v4o" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/beware-of-marketing-gurus.html tag:typepad.com,2003:post-68391227 2009-06-23T00:10:00-04:00 2009-06-23T00:10:00-04:00

Times are tough for marketers right now. So let me take you away to an oasis of consumer loyalty where huge margins and a ridiculously dominant market share are the norm. Where private label is non-existent and your biggest competitor...

Mark Ritson <div xmlns="http://www.w3.org/1999/xhtml"><p>Times are tough for marketers right now. So let me take you away to an oasis of consumer loyalty where huge margins and a ridiculously dominant market share are the norm. Where private label is non-existent and your biggest competitor is your second string product. No, it’s not a fantasy. It’s the alternative marketing universe occupied by Gillette.</p><p>Thanks to years of product innovation and heavy investment in marketing and advertising, Gillette occupies perhaps the most dominant position of any of the major global consumer goods brands with an estimated 70% share of the global razor blade category. Common sense might suggest that if you found yourself in this envious position you would sit back and count the billions of dollars in annual revenues that this market share delivers. But Gillette is owned by P&amp;G, and while even the best marketing company in the world can’t improve much beyond that level of market share – there are plenty of other levers to pull to generate shareholder value. And those levers provide brand managers with a vital, best practice lesson in growing a brand's contribution even when market share remains constant.</p><p><strong>First</strong>, drive profitability. Market share might have reached its zenith, but that does not mean your margins can't be squeezed. And squeezed tight. One industry insider in the UK recently revealed that despite a retail price of £9.72 for a pack of four Fusion razor blades, the actual manufacturing and packaging costs for this product is less than 30p. That’s a whopping mark-up of almost 3000%. How about that for a margin?</p><p><strong>Second</strong>, practice positive cannibalization. Gillette launched its five bladed Fusion line in 2006 with a 40% price premium over Mach3, its previous three bladed offering. Despite the fact that both lines generate significant profits, with such a huge share of the shaving market it makes more sense for Gillette to focus its marketing resources on switching its own customers from Mach 3 to the more profitable Fusion line than trying to win any more share from competitors. That’s why Gillette is now spending millions to compete against itself with ads and online comparisons that attempt to convince its Mach 3 consumers that their current razor is simply not good enough and to trade up to Fusion. A year ago Fusion started a TV campaign called "<a href="http://www.youtube.com/watch?v=q8-bOSEfFWk&amp;feature=PlayList&amp;p=DD5497F2CCE10245&amp;index=0">Nudging Disciples</a>" in which ads argued that "five is better than three," referring to the different blade counts of Fusion and Mach3. The spot shows Tiger Woods, Derek Jeter and Roger Federer literally knocking Mach3 razors out of men's hands with a golf ball, baseball and tennis ball, respectively. "Sometimes you need a little push to let go of your Mach3 razor," the narrator says. While it may seem crazy to spend millions to compete against yourself, the margin differences mean that this will deliver a better ROI than targeting the small number of remaining non-Gillette consumers over to the brand. Targeting existing customers is usually easier and the conversion rates are better. </p> <p><strong>Third</strong>, drive usage. Don’t fall in love with steps one and two that I listed above. They are good tactics, but don't make the classic marketers error of overlooking the easiest and most powerful driver of profitability. It might sound less sexy than increasing share or price point - but believe me - increasing consumer usage of a brand has always been the number one way to fuel profitability. Get consumers to stay with a brand for longer. Persuade them to use it just a little more. Find an additional application. All simple but powerful ways to drive increased sales from the same stable market base. In Gillette’s case the company is investing heavily in an online campaign to encourage consumers to use their Gillette razor downstairs on the lower body area as well as upstairs on the face. Interactive videos with powerful messages like, "You might say when there's no underbrush the tree looks taller" are increasing the frequency of blade use on those thicker, more stubborn lower body regions. One of the joys of having a 70% global share is that you can run general campaigns to grow total category usage <a href="http://www.youtube.com/watch?v=Ho9o3zLstls">like this campaign</a>, safe in the knowledge that most of the upturn in sales will benefit your brands.</p><p><strong>Fourth</strong>, don’t just sit there. Extend the brand! You have a billion dollar brand equity – use it to enter and take control of other related categories. For Gillette that has meant a successful foray into the “software” side of shaving with up to a 50% share in the shaving cream category in many countries and a growing slice of deodorants and shampoos too.</p><p><strong>Finally</strong>, stay frosty. Today’s market dominator could end up being tomorrow’s has-been brand. The vast majority of spend on consumer goods marketing is spent defensively to maintain share, not grow it. No surprise therefore that Gillette is one of the brands linked to the hottest TV series of 2009 – the second series of True Blood from HBO. Their fictional tie-in campaign shows a vampire endorsing Fusion as the best shave for the undead. It will deliver a huge amount of defensive awareness while keeping the brand contemporary and hip in the never ending battle to stay fresh.</p><p>So take some comfort with your shrinking share, puny margins and tiny marketing budget. You think you have it tough? Look how hard Gillette has to work with 70% share, 3000% mark up and no real competition. Who said brand management was ever easy?</p><p>30 Seconds On… Gillette’s Unusual Marketing Challenge </p><p>*Gillette's "Go Further With Body Shaving" videos feature on its own YouTube channel. The series begin with a bare-chested animated man who is informed by a voice over of all the benefits of “Taking care of the hair down there”. The different spots then provide a series of simple tips on how to shave unwanted groin hair, back hair and chest shaving. </p><p>* “Our goal was to engage guys in a dialogue on the whys and how-to’s, and to do it comfortably and reassure them in a funny and entertaining way,” said Tim Williams, a Gillette marketer. Williams added that Gillette research had found that about one in three men shave hair on other parts of the body besides their face. </p><p>*Procter &amp; Gamble shaving products are currently under investigation by Britain's Office of Fair Trading in an inquiry into alleged collusion between manufacturers and retailers in setting prices. An industry insider said Gillette takes most of the retail price, about £6.28, to cover its operating costs and make a profit. Around £1.90 goes to the retailer and £1.26 to the Government in VAT.</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZBVhBGSXwg0:AH4SedkdJtQ:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZBVhBGSXwg0:AH4SedkdJtQ:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZBVhBGSXwg0:AH4SedkdJtQ:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZBVhBGSXwg0:AH4SedkdJtQ:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=ZBVhBGSXwg0:AH4SedkdJtQ:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/ZBVhBGSXwg0" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/5-reasons-gillette-is-the-best-a-brand-can-get.html tag:typepad.com,2003:post-68349043 2009-06-22T00:10:00-04:00 2009-06-22T09:46:56-04:00

It’s no wonder that dictionary-makers have trouble with trademarks. There are legal repercussions as well as conflicting loyalties over what actually constitutes a word. Dictionary-makers want to respect trademark ownership, yet their job is to record words and their usage...

Steve Rivkin <div xmlns="http://www.w3.org/1999/xhtml"><p>It’s no wonder that dictionary-makers have trouble with trademarks. There are legal repercussions as well as conflicting loyalties over what actually constitutes a word.</p><p>Dictionary-makers want to respect trademark ownership, yet their job is to record words and their usage as accurately as possibly. Some dictionaries, like the jumbo Oxford English Dictionary or its baby sister, the Concise Oxford Dictionary, have skirted the problem by banning proper nouns altogether, whether they be the names of persons, places, or branded products.</p><p>Dictionary makers often ask: If you start adding proper nouns to the dictionary word list, where do you stop? Why include entries for Aqua-Lung and Xerox, as Encarta College Dictionary does, but not Kodak? Should the decision be based on social importance or frequency of use?</p><p>We would argue that proper nouns in general and brand names in particular are words, and there’s no reason in principle why they should not legitimately be part of the overall word stock. Moreover, dictionary-users want them, which is why they’re included in many dictionaries around the globe.</p> <p>In the United States, trademarks figure in college dictionaries such as Webster’s New World and the top-selling Merriam-Webster’s Collegiate. The former Random House Unabridged Dictionary entered nearly 600 brand names, literally from A to Z – from A&amp;E Television, the arts and entertainment cable TV channel, to Zovirax, a drug used in treating herpes.</p><p>Typically, dictionaries compromise between legal and lexicographical claims by including both the trademarked (capitalized) and generic (uncapitalized) forms, as in the cases of “hoover” (verb), and Hoover (the trademarked product).</p><p>Then there are words such as “magnum” and “carousel” which may have several interpretations, only one of which (Magnum, Carousel) is the trademark. You can look that one up under another word: “confusing.”</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=QNqsHJ3sNus:7QgFt0V3T4Y:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=QNqsHJ3sNus:7QgFt0V3T4Y:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=QNqsHJ3sNus:7QgFt0V3T4Y:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=QNqsHJ3sNus:7QgFt0V3T4Y:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=QNqsHJ3sNus:7QgFt0V3T4Y:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/QNqsHJ3sNus" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/when-dictionaries-and-trademarks-clash.html tag:typepad.com,2003:post-68349197 2009-06-21T00:10:00-04:00 2009-06-21T00:10:00-04:00

Where Did “Oscar” Get its Name? We don’t mean Oscar Wilde or Oscar Hammerstein. We mean that 8-pound gold statuette so beloved in Hollywood. Most nicknames have obvious sources, but not Oscar, as the awards of the Academy of Motion...

Steve Rivkin <div xmlns="http://www.w3.org/1999/xhtml"><p>Where Did “Oscar” Get its Name? We don’t mean Oscar Wilde or Oscar Hammerstein. We mean that 8-pound gold statuette so beloved in Hollywood.</p><p>Most nicknames have obvious sources, but not Oscar, as the awards of the Academy of Motion Picture Arts and Sciences are commonly known.</p><p>For instance, the Tony Awards on Broadway are nicknamed in honor of actress/director Antoinette Perry, who died in 1946. The Tony Awards began the next year. Television’s Emmy awards get their moniker from a pioneer TV engineer and the third president of the Academy of Television Arts &amp; Sciences. He suggested “Immy,” a term commonly used around 1950 for the early image orthicon camera. The name stuck and was later modified to Emmy, which was considered more appropriate for a female symbol.</p><p>But Oscar’s origin is shrouded in showbiz lore. </p> <p> We do know the name was first used by a Hollywood columnist in 1934, referring to the Best Actress award to Katherine Hepburn. But where did it come from? That columnist said he invented the nickname to deflate the “pretension” of the ceremony. Another story is that the academy’s librarian (and eventual executive director) said that the statuette resembled her Uncle Oscar. Our favorite explanation comes from actress Bette Davis, who claimed the name derived from her observation that the backside of the statuette looked like the derriere of her husband Harmon Oscar Nelson.</p><p>Perhaps your uncle or husband is known as Oscar. You might want to know that the name derives from the Anglo-Saxon words for “a god” and “a spear” and thus came to mean “divine strength.” (All hail King Oscar II, king of Norway and Sweden from 1872-1905.)</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Wx7SRI7-yh4:c4VXbvIAdPY:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Wx7SRI7-yh4:c4VXbvIAdPY:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Wx7SRI7-yh4:c4VXbvIAdPY:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Wx7SRI7-yh4:c4VXbvIAdPY:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=Wx7SRI7-yh4:c4VXbvIAdPY:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/Wx7SRI7-yh4" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/great-moments-in-naming-academy-awards-oscar.html tag:typepad.com,2003:post-68312819 2009-06-20T00:10:00-04:00 2009-06-21T13:58:30-04:00

Marketing is war my friends. By now most of you have figured that out. And most of you are familiar with Marketing Warfare, a book I wrote with my former partner Al Ries on the strategy and tactics that can...

Jack Trout <div xmlns="http://www.w3.org/1999/xhtml"><p>Marketing is war my friends. By now most of you have figured that out. And most of you are familiar with Marketing Warfare, a book I wrote with my former partner Al Ries on the strategy and tactics that can and should be implemented on the front lines of marketing. With help from Prussian General Karl von Clausewitz we concluded many things about the battlefield marketers face. Today on Branding Strategy Insider, I offer a brief re-cap on some of the greater points that will assist you as you head into the fray... </p><p><strong>Defensive Position</strong><br>Called for when your organization is the <em>clear</em> market leader.</p><p>Principles<br>1. Only the market leader should consider playing defense.<br>2. The best defensive strategy is the courage to attack yourself.<br>3. Strong competitive moves should always be blocked.</p><p>Key Points<br>-You strengthen your position by introducing new products or services that obsolete your existing ones.<br>-It’s better to take business away from yourself than have someone else do it for you.<br>-Attacking yourself may sacrifice short-term profits, but it has one fundamental benefit. It protects market share, the ultimate weapon in any marketing battle.<br>-When you own the pie, you should try to increase the size of the pie, rather than of your slice.</p><p><strong>Offensive Position</strong><br>Called for when your organization is # 2 or 3 in the market, and you have the resources to sustain a challenge to the leader.</p><p>Principles<br>1. The main consideration is the strength of the leader’s position.<br>2. Find a weakness in the leader’s strength and attack at that point.<br>3. Launch the attack on as narrow a front as possible.</p><p>Key Points<br>-What’s good strategy for the leader is bad strategy for #2, and vice versa.<br>-“Where absolute superiority is not attainable,” says Clausewitz, “you must produce a relative one at the decisive point by making skilled use of what you have.”<br>-There’s weakness in strength, if you can find it.</p> <p><strong>Flanking Position</strong><br>Called for when your organization is 4-6 in the market, and you have the resources to pursue your flanking move, sewing up that market segment.</p><p>Principles<br>1. A good flanking move must be made into an uncontested area.<br>2. Tactical surprise ought to be an important element of the plan.<br>3. The pursuit is as critical as the attack itself.</p><p>Key Points<br>-The success of a flanking attack often hinges on your ability to create and maintain a separate category.<br>-Flanking skill requires exceptional foresight. The reason is that in a true flanking attack, there is no established market for the new product or service.<br>-Reinforce success, abandon failures. What if  you don’t have the resources to follow up the launch of a successful flanking attack (the “pour it on” principle)? Perhaps you shouldn’t have launched a flanking attack in the first place. Perhaps you should have waged guerrilla warfare.</p><p><strong>Guerrilla Warfare</strong><br>Appropriate for the other 96 organizations in a 100 org market.</p><p>Principles<br>1. Find a segment of the market small enough to defend.<br>2. No matter how successful you become, never act like the leader.<br>3. Be prepared to bug out at a moment’s notice.</p><p>Key Points<br>-There’s a critical difference between flanking and guerrilla warfare. A flanking attack is deliberately launched close to the leader’s position. The objective of a flanking attack is to bleed or unravel the leader’s share.</p><p>-How small a market should a guerrilla set its sights on? That’s where judgment comes in. Try to pick a segment small enough so that you can become the leader – but never act like the leader. Successful guerrillas operate with a different organization and a different timetable. Get as high a percentage of your personnel on the firing line as possible.</p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=YOLKSR4zjsM:EI8-wCsEcS0:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=YOLKSR4zjsM:EI8-wCsEcS0:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=YOLKSR4zjsM:EI8-wCsEcS0:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=YOLKSR4zjsM:EI8-wCsEcS0:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=YOLKSR4zjsM:EI8-wCsEcS0:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/YOLKSR4zjsM" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/marketing-warfare-revisited.html tag:typepad.com,2003:post-68259967 2009-06-19T00:10:00-04:00 2009-06-19T01:16:52-04:00

Eddie Bauer, the iconic outdoor-clothing chain that sold goose-down coats to Mount Everest mountaineers and modern outdoor clothing to ski-schussing college students, filed for Chapter 11 bankruptcy protection Wednesday. Eddie Bauer has been struggling to repay its debt. And the...

Derrick Daye <div xmlns="http://www.w3.org/1999/xhtml"><p>Eddie Bauer, the iconic outdoor-clothing chain that sold goose-down coats to Mount Everest mountaineers and modern outdoor clothing to ski-schussing college students, filed for Chapter 11 bankruptcy protection Wednesday.</p><p>Eddie Bauer has been struggling to repay its debt. And the fact that consumers slowed down spending on anything but necessities can't have helped. In fact, the falloff came as Eddie Bauer was attempting to pull off what would have been a multi-year turnaround. "Eddie Bauer is a good company with a great brand and a bad balance sheet," said Neil Fiske, the company's CEO, though the retailer also said stores, catalog business and Web sites would continue operating, and that they will honor all customer gift cards, returns, and their points program.</p><p>According to our 2009 Customer Loyalty Engagement Index, Eddie Bauer was just edged out of 1st place by J. Crew, another iconic clothing brand, whose ascension was largely aided and abetted by the patronage of Michele Obama, with L.L. Bean a distant #3.</p><p>On the marketing side of things, Eddie Bauer recently celebrated a new line called "First Ascent," outfitting two mountaineers as they took on a climb of Mount Everest. On the financial side of things, there are plans in place to sell the company for $202 million to CCMP Capital Advisors.</p> <p>A judge still needs to approve the sale, and other potential bidders still could emerge. But based on engagement and customer loyalty levels, whoever ends up buying the brand is pretty sure to end up on top of the world.</p><p>Contributed by: Robert Passikoff, President, <a href="http://www.brandkeys.com">Brand Keys</a></p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=jPCSjVbY7OA:bCKRy0iTYCA:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=jPCSjVbY7OA:bCKRy0iTYCA:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=jPCSjVbY7OA:bCKRy0iTYCA:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=jPCSjVbY7OA:bCKRy0iTYCA:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=jPCSjVbY7OA:bCKRy0iTYCA:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/jPCSjVbY7OA" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/eddie-bauer-the-iconic-outdoor-clothing-chain-that-sold-goose-down-coats-to-mount-everest-mountaineers-and-modern-outdoor-cl.html tag:typepad.com,2003:post-68230421 2009-06-18T01:21:42-04:00 2009-06-18T01:21:42-04:00

Prepare for a messy new world of domain names. ICANN, the little-known organization that oversees the Internet, plans to start selling the rights to anything from dot-soup to dot-nuts – a potentially unlimited number of customized new domain suffixes to...

Steve Rivkin <div xmlns="http://www.w3.org/1999/xhtml"><p>Prepare for a messy new world of domain names. <a href="http://blog.icann.org/">ICANN</a>, the little-known organization that oversees the Internet, plans to start selling the rights to anything from dot-soup to dot-nuts – a potentially unlimited number of customized new domain suffixes to compete with dot-com, dot-net, and all the other “dots” available. </p><p>Industry observers say those domains are likely to take their names from popular subjects, types of businesses, physical locations or even brand names. In other words, get ready for dot-bank, dot-airline, dot-pepsi or dot-whatever. </p><p>Companies naturally fear that if they don’t register their trademarks at the new domains, their trusted brand names could get scammed, hijacked or even held for ransom. For instance, as the Wall Street Journal reported, Marriott is said to be considering such new domains as Marriott.travel or Marriott.vacations or Marriott.nyc. </p><p>A spokesperson for the Internet Corp. for Assigned Names &amp; Numbers (ICANN) says it has already spent $10 million on software that will spot cyber-squatters trying to grab desirable names and ransom them to real trademark holders. How secure is that software? Will it work? No one knows, yet. </p> <p>According to Greg Tarallo, of netStride Internet Solutions, a Philadelphia-based web development and web marketing company, ICANN has devised a process for handling the registration process. “It’s very similar to the process you go through to register a trademark for a name,” says Tarallo. “There’s an application process, a formal objection period, a dispute resolution process, and finally the outcome – either the applicant or the objector prevails.” </p><p>Even so, a well-known brand name could wind up with thousands of variations of its domain name, at steeply rising costs for filing, maintenance and watchfulness. There are already some 150 million domain names registered around the globe. Dot-com and dot-net registrations are very affordable. Some of the specialty domains are very expensive. </p><p>In total, there are currently 21 so-called “top-level” domains, starting with dot-com and extending through dot-info and dot-biz. (Countries have their own domains, such as dot-bo for Bolivia or dot-de for Germany.) </p><p> Then again, this whole new scheme could fizzle. </p><p>Relatively new domains such as dot-biz and dot-info have never gotten much traction. Most serious players want to play in the big leagues, and that means a dot-com or dot-net name. As the head of Internet operations at a major insurance company put it, “It’s difficult enough to get consumers to visit any domain name that doesn’t end with dot-com.” </p><p> So the free market may yet decide. Stay tuned. </p><p><em>Sponsored By</em>: <a href="http://www.plus2marketingconsultants.com">+2 Marketing Consultants</a></p></div><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=KungoZUhpPU:xbTs56wYJho:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=KungoZUhpPU:xbTs56wYJho:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=qj6IDK7rITs" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=KungoZUhpPU:xbTs56wYJho:I9og5sOYxJI"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=I9og5sOYxJI" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=KungoZUhpPU:xbTs56wYJho:bcOpcFrp8Mo"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=bcOpcFrp8Mo" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?a=KungoZUhpPU:xbTs56wYJho:6MzxVDZ-VK0"><img src="http://feeds.feedburner.com/~ff/BrandingStrategyInsider?d=6MzxVDZ-VK0" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/BrandingStrategyInsider/~4/KungoZUhpPU" height="1" width="1"/> http://www.brandingstrategyinsider.com/2009/06/online-naming-facing-major-change.html