Branding Strategy Insider

Complex Language Weakening Brands

"Call the law enforcement officers. We're being robbed."

Not a likely scenario. What the average person is much more apt to say is: "Call the cops. We're being robbed."

Unfortunately, marketing people are not average persons. Marketing people are much more likely to elevate their languages until, in some cases, they lose their meanings.

A few years back a senior marketing person at United Parcel Service asked me what I thought of the company's trademark.

I like it, I said, but what UPS really needs is a motivating idea or rallying cry, something like: UPS delivers more parcels to more people in more places than any other company in the world.

UPS, he said, is not in the parcel delivery business.

Huh. That came as a big surprise to me. We're a customer and I always thought that UPS was in the parcel delivery business.

No. UPS is in the logistics business.

He wasn't joking. At the time UPS was in the process of repainting some 88,000 vehicles with its new theme: Synchronizing the World of Commerce.

A serious impediment to communications is this constant upgrading of the language. No aspect of life is left untouched by the upgrade police. Not only does a term have to be politically correct, it has to be as long and as complicated as possible.

Branding Anything and Everything

I have long contended that almost everything is branded and many things can and should be managed as brands. Brands have identities, including personalities. Further, brands usually possess certain values and they usually make promises to their customers. There are usually a few key things commonly associated with each brand in people’s minds. Given that definition of brands, let us explore various entities in several different categories to determine which ones seem to possess the qualities of brands.

Municipalities:
•    Las Vegas
•    Dubai
•    Singapore
•    Paris
•    New York
•    Santa Fe

Musical groups/Entertainers:
•    Grateful Dead
•    Michael Jackson
•    Johnny Cash
•    Sigur Ros
•    Eminem
•    Phish

Building a Brand vs. Building a Business

Are you building a business? Or are you building a brand? Silly questions, you might be thinking. Naturally, you are trying to do both.

But that might be a mistake.

What's good for the business is not necessarily good for the brand. And vice versa.

What's a brand anyway? It's a word that stands for something in the mind of prospects. That definition, by the way, is at odds with conventional thinking.

Most managers equate a brand with its celebrity index. The more famous the brand, the more powerful it is. "Making our brand name well-known" seems to be the conventional approach to brand building.

Chevrolet is one of the world's best-known automobile brands, but how valuable is the Chevrolet brand? Not very.

Chevrolet doesn't make Interbrand's list of the 100 most-valuable global brands. Chevrolet, like many other exceptionally well-known names, isn't worth much because it doesn't stand for anything.

It's not just Chevrolet. The U.S. automobile industry markets 14 vehicle brands: Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Hummer, Jeep, Lincoln, Mercury, Pontiac, Saab and Saturn.

I would guess that every one of these brands (with the exception of GMC) is exceptionally well-known with a recognition score in excess of 90%.

Except for a house, an automobile is the most expensive product a person might buy in his or her lifetime. In addition, an automobile has enormous street visibility. These factors combine to give automotive brands a huge advantage in the battle for the consumer's mind.

It's not surprising that 11 automobile brands made Interbrand's most valuable list. But just one of those 11 brands was an American brand. (Ford at No. 49.) The other 10 were European and Asian brands. Why? The European and Asian brands stood for something.

The Metrics of Brand Equity

There are several stakeholders concerned with brand equity, such as the firm, the customer, the distribution channels, media and other stakeholders like the financial markets and analysts, depending on the type of company ownership. But ultimately it is the customer who is the most critical component in defining brand equity as it is his/her choices that determine the success or failure of the company and the brand.

Customer knowledge about the brand, the perceived differences and its effects on purchase behavior and decisions lies at the heart of brand equity. The knowledge and associations attached to the brand result in choices which have a direct impact on the brand's financial performance and shareholder value.

Brand equity is the combined measure of brand strength and consists of three sets of metrics: knowledge, preference and financial. Each of the measures under these three metrics is critical and the boardroom must ensure that the brand portfolio scores high in each of these parameters to optimize the financial outcome from strong brands.

Knowledge metrics measures 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. It is crucial for brands to score high on both awareness and association attributes to establish and sustain their presence in the market place.

The New Positioning

This week I came across a 1997 interview I gave to Bob Lammons. The more things change the more they stay the same...

Q: What's the battlefield look like to you these days?

"Well, there's good news and bad news on the battle front. The good news is that, because of all the downsizing and re-engineering we've gone through in recent years, U.S. companies have learned how to handle global competition very well. The bad news is it is still amazingly competitive out there -- kill or be killed."

Q: In The New Positioning, you talk about the explosion of information in business today, and our inability to handle it. Isn't it good to have lots of information?

"Not really. Many people have so much information these days it paralyzes them. The Internet has made things worse, because it's full of non-edited information. I call it 'non-information.' It's a vast wasteland of unfiltered facts, pseudo-facts and non-facts, and the mind doesn't know what to do with all this data."

Q: You quote experts like Edward de Bono and Jack Welch on the "lost art of thinking." Does this result from information overload?

"To some extent, yes. The thing I find dramatically missing in business today is common sense. Many managers are so concerned about losing their jobs, they spend a disproportionate amount of time collecting and generating data to back up whatever decisions are ultimately made. "

Q: How can business-to-business communicators benefit from this insight?

The Law of Leadership

It's better to be first than it is to be better.

Many people believe that the basic issue in marketing is convincing prospects that you have a better product or service.

Not true. If you have a small market share and you have to do battle with larger, better-financed competitors, then your marketing strategy was probably faulty in the first place. You violated the first law of marketing.

The basic issue in marketing is creating a category you can be first in. It's the law of leadership: It's better to be first than it is to be better. It's much easier to get into the mind first than to try to convince someone you have a better product than the one that did get there first.

You can demonstrate the law of leadership by asking yourself two questions:

1) What's the name of the first person to fly the Atlantic Ocean solo? Charles Lindbergh, right?

2) What's the name of the second person to fly the Atlantic Ocean solo? Not so easy to answer, is it?

The second person to fly the Atlantic Ocean solo was Bert Hinkler. Bert was a better pilot than Charlie-he flew faster, he consumed less fuel. Yet who has ever heard of Bert Hinkler? (He left home and Mrs. Hinkler hasn't heard from him since.)

In spite of the evident superiority of the Lindbergh approach, most companies go the Bert Hinkler route. They wait until a market develops. Then they jump in with a better product, often with their corporate name attached. In today's competitive environment, a me-too product with a line extension name has little hope of becoming a big, profitable brand.

Anatomy of a Marketing Plan

A marketing plan is a request for funds in return for a promised level of incremental revenues, unit sales, market share or profits. One can develop marketing plans for products, services, market segments or brands. The critical components of a marketing plan includes the following:

•    Summary
•    Objectives (attract new consumers, create new uses, increase share of requirements, incent trial, encourage repeat purchase, encourage add-on purchase, increase awareness, increase loyalty, change value perception, increase emotional bond, extend into new product and service categories, etc.)
•    Situation Analysis
•    Market analysis
•    Competitive context
•    Customer profile (segments, needs, attitudes, behaviors, insights, etc.)
•    Strategies and tactics (touching upon all key marketing components that will be used: product, packaging, pricing, distribution, advertising, publicity, sales promotion, selling, etc.).  Be specific.
•    Operations considerations (impact on plant capacity, need for new assets, etc.)
•    Financial projections
•    Pro forma profit and loss statements, balance sheets, cash flows, etc.
•    Including funds required to execute plan
•    Supporting customer research (qualitative research, concept testing, volumetric modeling, market test results, etc.)
•    Risks and contingency plans

Sponsored By: Brand Aid

Brand Positioning Basics

Positioning is something (perception) that happens in the minds of the target market.

It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category.

It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position.

But a company can positively influence the perceptions through enlightened strategic actions.

In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.

Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

The Process of Positioning

Generally, the product positioning process involves:

• Defining the market in which the product or brand will compete (who the relevant buyers are)
• Identifying the attributes (also called dimensions) that define the product 'space'
• Collecting information from a sample of customers about their perceptions of each product on the relevant attributes

The Cure For Brand Myopia

Earlier this year I decided to ride the London Eye. It was busy - so busy that the line of people queueing to purchase tickets snaked out of the ticketing room and onto the street overlooking the Thames. In an attempt to manage the line, the Eye's management had constructed a queuing system using barriers. Staff informed customers as they joined the queue that to reduce its length, only one member of each family group could stand in line. The rest of the group would have to wait outside for the 25 minutes it was going to take to get to the end of the line and buy tickets.

And that is how I spent part of my weekend - shuffling sadly along airport-style queueing lanes as part of an army of separated fathers, husbands and boyfriends. Occasionally a child or mother would visit the line and enquire on the progress being made. One husband and wife took turns to queue while the other watched over their four children.

Intriguingly, all of this happened in direct association with British Airways, the Eye's sponsor at the time. The BA logo hovered conspicuously overhead throughout this sombre experience. In direct contrast to BA's TV campaign, in which a family is united by the airline, this BA experience was all about separation. While BA's sponsorship of the attraction was an attempt (for the most part successful) to associate its brand with Britain, entertainment and the 21st century, my queuing experience - which took longer than my trip on the Eye - created an entirely different brand experience. It bracketed BA with the inane systems, dislocation and pointlessness I associate with all air travel.

There is a tendency toward brand myopia among brand managers. They see only the big brand strategies they commission and ignore the everyday experiences that actually constitute the brand from a consumer's perspective.

Marketing Mistakes, Marketing Lessons

Long ago and far away, I started my career at General Electric. It was the early 1960s and, in hindsight, it was a wonderful time. Competition, as we know it, just didn't exist.

GE's main full-line competitor was a company called Westinghouse, but by today's standards, it was barely a real one. Westinghouse was a player, but GE actually saw the company more as a necessity. If that competition ever went away, the government would pounce on GE to break its hold on "electricity."

Back then, nobody really worried much about mistakes because CEOs figured they would be able to get any lost business back in the end. (Jack Welch hadn't yet arrived at GE. After he took over, everyone worried a lot more about mistakes.)

What's Changed

Today there are so many competitors that they quickly take your business if you make a mistake. Your chances of getting it back are slim unless someone else in turn makes a mistake. Hoping for competitors to make mistakes is like running a race with the hope that other racers will fall down. It isn't a very smart strategy.

Even worse is the large number of participants in each race. Every category is haunted by what I call the "tyranny of choice." Consumers have so many choices that one false step brings not just one, but an army of competitors to take advantage of your misstep. And what's especially tragic is that you don't get that business back. It's gone. Does General Motors come to mind?

Now let’s take a look at some of the most prevalent blunders in our hypercompetitive world and hint at the lessons they provide.

The "Me-too" Mistake

Many people believe that the basic issue in marketing is convincing the prospect that they have a better product or service. They say to themselves, "We might not be first but we're going to be better."

That may be true, but if you're late into a market space and have to do battle with large, well-established competitors, then your marketing strategy is probably faulty. Me-too just won't cut it.