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20 Comments
I’d add that two additional ways businesses blow it is with how they treat their customers and how they communicate with them. These are such ripe areas for companies to really set themselves above their competition, yet many seem content and consumed with cost-beating or “Me Too!” -ing, as you’ve illustrated here. How very unoriginal. Wouldn’t it be refreshing if a company said “we put our customer first” and actually meant it? Psh…I’m dreaming.
But on to your point of Social Media not being the answer for weak brands, you’re right on. Consumers can see right through Shinola of that kind. These brands will remain what they are: the cheapest, the biggest, hardly innovative, and sadly, never the Best.
@BizCoachDeb
Absolutely fantastic post Al, I just shared this with my online network. However I think there is more to social media then just looking at external customer facing approaches. What about using social media internally to reduce costs, time spent working on projects, reducing inefficiencies/etc this is the whole E2.0 push. That being said we also need to distinguish between consultants/agencies that tout social media as the end all be all vs companies that actually approach agencies asking for SM strategies (because they think SM can save the business).
Great examples here and a fantastic post!
Exactly. It is about differentiating first and then focusing. Focus, to some, is too limiting and cuts you off from the myriad of opportunities that exist with broader audiences. But, not focusing dilutes a brand’s strength, especially if it didn’t have a strong differentiated position to begin with. It starts with knowing who you are implicitly, being authentic to that and being it in everything you do and say–which leads to ownership of your space. Then, and only then, will social media actually be a useful tool.
I think this is a very good article. But I agree with some other commenters that customer service is the best way to distinguish a brand. Besides having a stranglehold on the MP3 player market and enough slick industrial design in its computers to choke a horse, what really sets Apple apart is good customer service. Without it, Apple is an expensive Dell.
Excellent article, although I think the example of McDonalds vs. Burger King does not take into account BK’s new strategy of focusing on their core customers by emphasizing huge hamburgers (double, triple and quadruple Whoppers). I think that for the first time in years BK is thinking less on the competition and more on its customers, which is the right thing to do strategically.
What do you think about brands like Google buying companies left right and center – ad network DoubleClick, YouTube etc., jumping into the mobile phone operating system pool and trying to compete with Microsoft with similar products to the Office Suite?
Excelent post.
Linda, I believe Google is a different case, as it is already a leader on its segment. Anyway, maybe it is not a good strategy trying to compete with MS, specially on Office Suite, as you stated above.
Nicely put.
It IS sad that so many companies still don’t get it, that it’s neither size nor buying power in terms of advertising that make one’s sales register bulge.
And yes, the TGIF element, although great to have and although effective it’s NOT a cure all.
Why?
Because too many company head honchos STILL and probably always WILL think of any kind of social media as a SALES platform when it’s more about being social.
I’d be nervous if I were Microsoft…
Just wondering if tech seems to buck the trend, when a technology brand diversifies into, well, everything (another example is Amazon buying up companies like Zappos while also offering a fulfillment service, a payment processing product, web services, cloud computing, advertising networks etc.) Is it likely to suffer the same fate as more traditional businesses. Does “Bigger is not a marketing strategy” hold true with Google, Amazon, Adobe etc.
Great article, I always enjoy your insight Al.
Very good article and excellent comments. Social media is best undertaken after you have crafted a brand strategy based on differentiation, consistency and congruence. Social media is definitely not a cure for substandard branding.
Nice post, great detail. I feel that companies need to use the TGIF to become a remarkable resource for a product and as Gary pointed out if you use it as a sales tool to put out ads your missing the point. TGIF is really just a better alternative marketing investment option with a greater upside than more traditional marketing efforts. All that said you still need an unstoppable product/service to market in the first place otherwise your choices won’t matter.
Thought provoking post – You give some good examples of huge brands having similar problems (BK and Pespi) but given that 99% of companies (and profitable ones at that) are a fraction of their size and marketing power what can the smaller companies do? All of your arguments for better strategy still apply and this is why your post struck a chord with me.
The basics: Marketing is about consumer focus (but at a profit) yet many of us become obsessed with the tools and tactics at our disposal we loose sight of why we’re ‘in the war’ as you put it. A great product and service comes first, not brand, not social media activity.
We are infatuated with tactics because new tools become available and old tools are made better. The elements of great strategy are “old-fashioned.”
I would like to know who coined the expression “word of finger”.
Thank you.
Jonathan
I like your style man – you have a new subscriber. To the above commentator who wants you to explain every little detail: don’t be so bloody idle
I agree wholeheartedly with this post. I think a lot of people believe social media (TGIF) to be the end-all/be-all of marketing and consumer communication, and that just isn’t the case. Don’t get me wrong, I’m a BIG advocate for the usefulness of social media in a marketing campaign, but it’s a medium, not the strategy. Social media can give companies the ability to differentiate like never before in history and there lies its greatest strength.
The biggest shift in recent years is to the idea that it is now a consumer-driven market and companies cannot simply “tell” people what to buy anymore, they must strive to actually connect with their consumers. Social media is a great way to connect if used correctly, but should always be thought of as a powerful tool and not the road-map itself.
Great comments for a very provocative, nevertheless, well written and thought post. However, I would like just to leave a couple of (provocative) questions:
Can Social Media and other web-centric tools be used as a business strategy in itself? A way of differentiation, bringing uniqueness ; or operational efficiency (cost ledearship) ; or even a mix of the two? And on top of that, can Social Media act as a Brand’s energizer boosting and bringing it to a higher level of awareness?
Eufemia,
Yes, Social Media can be used as a business strategy by itself but most companies usually use it as part of their communications strategy. Social media is a way of engaging the customers, lowering advertising costs and generating ROI but to be successful in doing so you must monitor and analyze your efforts.
And yes, social media can act as a brands energizer especially when a brand goes viral. Going viral can reinvent a brand overnight. The problem is coming up with idea’s to go viral, because it can be difficult. Hope this is helpful.
I loved this article.
Finally someone is telling the truth about why certain companies fail. It seems hard to believe a $100 million a year CEO couldn’t figure out you can’t compete with everyone but there it is.
One other thing: Consumers like brands that are easy to understand. Redbox = $1 video, 1 day. In-and-Out: Double-double. Simplify, simplify, simplify.
















Excellent post Al. The lesson is simple, be different or your brand is going to die.
I think the rental movie industry is a great example of the power of being different. Blockbuster was the established leader for years; then came Netflix and now Redbox is having great success.