Tuesday, December 29, 2009

Creating branded experiences

“Marketing is 90% strategy and 10% execution” (Ries, War in Boardroom). While I certainly agree, the fact is without execution, your 90% strategy is meaningless. Therefore, once you have a strategy, you need to move onto execution. For a branding person, this means infusing your entire business with the brand idea. How does one go about this? How do you instill personality, values, and differentiation into every customer touch point? How do you create names, logo’s, taglines, advertising, websites, phone mannerisms, store layouts etc., which bring forth the brand idea as well?
Well, every person has senses. Senses are the physiological methods of perception.
There are 5 main senses: touch, smell, taste, sound and sight.
There are 5 secondary senses: balance and acceleration, temperature, kinesthetic (the ability to feel movements of the limbs and body), pain and time. These senses are the only things that create any experience within us whatsoever. The conveyance of any feelings or emotions is through these senses.
Obviously, to give anyone a true brand experience, we’ll have to examine how these senses interplay on a persons psyche and what kind of feelings we can evoke through each sense.
Take taste for instance. What kind of experience does salty food give you vs. sweet foods? What kind of mood does it put you in? What kind of feeling does it leave you with? When do you reach for potato chips, pretzels or popcorn and when do you reach for ice cream? Believe it or not, the major brands for these product categories spend millions of dollars pondering these very questions.
And so it is with all the senses. Are there certain smells that create specific moods or feelings? There wouldn’t be a multibillion dollar fragrance industry if it weren’t so. Are there certain sounds that create specific feelings and moods? Again, there wouldn’t be a multibillion dollar music industry if it weren’t so. Do specific sights create specific moods and feelings? Just look at how much money people spend on ocean view properties.
There is an additional sense though, although its not really a sense, and that is the brain.
Can you visualize things without using your eyes? Sure Just read this excerpt from Eugene Schwartz’s famous book “Breakthrough advertising”: “Colorful, fragrant roses almost as large as the most expensive Hybrid Teas, yet blooming by the hundreds at one single time . . . on one single bush! Cherry-pink 3-inch roses overlaid with tinges of red that deepen in fire and brilliance as the blossoms unfold—to reveal a dazzling gold splash on their petals! Roses that burst into living walls of blossoms that flame again and again into exquisite masses of bloom in June, July, August, September, October, November . . . and often stay in bloom weeks after the first snows have fallen! . . .”
Can you hear without using your ears? Read the headline of the famous Ogilvy Rolls Royce print ad
“At 60 miles per hour, the loudest noise in a Rolls Royce is the ticking of the clock”….. Did you hear a ticking clock?

Can you experience balance and acceleration without moving? Sure, ever watch and IMAX movie?
Can you experience a length of time without it truly passing? Sure ever sit in a Dr’s office doing nothing and waiting to be called. Did it feel like you were waiting forever? Doesn’t time go faster when you’re having fun?
Can you smell something without using your nose? Can you taste something without using your tongue? Can you feel something without it actually touching you? Sure, just watch Ogilvy’s famous Maxwell House coffee commercial Did you feel the steam? Did you smell the coffee? Did you taste the coffee as it was raised to your lips? "If you like to look at good coffee, smell good coffee and taste good coffee, brewed Maxwell House coffee..."

Engaging the senses was the true genius of advertising experts like David Ogilvy and Eugine Schwartz!

The mind is a wondrous thing. It can create experiences and feelings that are purely imaginary. Experiences are life's entertainment. They are what we live and sometimes die for. The question creative agencies have to grapple with is how do we create experiences and feelings within and possibly beyond our audiences senses. Evocation is the key here. What evokes a specific sensation? Master the art of evocation and you'll be on your way to a great career in branding and advertising!

Wednesday, November 25, 2009

How a business becomes a brand

There are four pillars to a business’s identity; when a business has these four pillars aligned, it becomes a brand. The four pillars are Personality, Value System, Differentiation and Innovation. To understand the branding process, we need to recognize that 1) Branding theory assumes customers don’t feel affection for concrete products or services per see, rather they can be attracted to the intangible, underlying character of a business. 2) A brand is not something intrinsic or necessarily natural, it is rather the outcome of consistent efforts to make a business stand for ideals beyond the actual goods or services it renders. Keeping this in mind, let us explore each pillar.



Personality: The famous advertising agency Young and Rubicam conducted a six-year study of 50 brands and found that businesses strongly aligned with single archetypes (personalities) gained economic and market values at a rate of almost double those that had no clear archetypal alignment. What this means is that in order for a business to be well branded it needs to choose one personality type and consistently align itself with it. There are different sets of archetypes that have come up throughout history. Carl Jung’s archetypes is one of them. Based on Jung, Carol S. Pearson created a set of 12 archetypes that specifically relate to brands. You need to build the personality you choose into the very fiber of the company, mimicking it in every way possible; its focus, ethics, values, disposition, temperament, creativity etc. When choosing a personality for your business, keep in mind that a brand as a personality interacts and is judged by its target audience in five ways. 1) As a friend- Do you enjoy spending time with this personality? 2) Inner feelings- What feelings do you have while interacting with this personality? 3) Trust- Do you trust this personality to generate a level of performance you expect through this purchase? 4) Personal Association- Is this a personality you wish to associate with? 5) External Association - Is this a personality you want others to see you associated with?



Value System- A brand knowingly or not, stands for some kind of value. Business by its very nature, is here to help people in some way, shape or form. It might be promoting higher quality, speed, health, knowledge, convenience etc. Instead of just monotonously going about offering whatever goods or services it sells, it needs to embrace the underlying benefit or value it gives to the world and extend it to all areas of interaction. In 1975, when Bill Gates declared “a computer on every desk and in every home”, he stood for the value of the individuals of the world utilizing technology to enhance daily life. In his own words (perhaps words his marketers told him to say), “Every day, we're finding new ways for technology to enhance and enrich people's lives.” The value your business embraces should be articulated in its vision statement.


Differentiation- Branding is about lodging your business in the minds of consumers so that your business becomes their adoptive “go to” place. This is called “mindshare”. The greater share of mind your business owns in its target customers heads, the greater the chance that they will bring their business to you. Consider this: If business A and business B are identical in every way possible, you will automatically go to the one you always went to, simply because there is nothing motivating you to change. The only way for a new business to win you over is by superimposing itself in your mind as being better or more relevant. This is accomplished by differentiating itself in a way that connects better and resonates stronger within you than its competitors. There are many ways to differentiate, some subtle while others more drastic. It is worthwhile to recall the 4 p’s of marketing: Product, Price, Place, Promotion as they are all possible areas for differentiation. Other areas are the other three pillars of branding we are discussing now: Personality, Value System and Innovation. “Different strokes for different folks” is the idea here. A variety of different targeted audiences can appreciate your product or service. Pick which one you want to target and find a differentiation factor you can assume that’s connects and resonates strongly within them.

Innovation- There is two types of innovations a business must be engaged in. First, as the world progresses, it is imperative for a brand to constantly stay abreast and follow the trends, or else it becomes irrelevant. In the past 15 years alone, the world has progressed commercially, in ways that are truly mind-boggling. 15 years ago, most people didn’t own a cell phone, forget about a BlackBerry. 15 years ago, film was costly and needed to be inserted into cameras in order to take pictures. Today with digitalization, we snap thousands of pictures without ever changing a roll of film or spending a penny. 15 years ago, we needed to carry a bag of tokens in order to drive on the parkway. Today there is EZ pass. 15 years ago, we would consult maps and atlases before taking a trip. Today we turn on the GPS. 15 years ago, data was transported via fax or mail. Today we use email, instantly getting the exact file in the exact condition and the same clarity as the original. The world keeps on innovating and unless you do too, your business will be left out in the cold. The second innovation a business needs to maintain is its own internal, goal-oriented innovations. It needs to find extraordinary ways to promote the ideals it stands for. Let’s say your business takes on a Sage personality, you should be exploring innovative ways to educate customers. If your brand personality is that of a Jester, consider innovative ways of making people laugh. If your businesses value is quick- in and out service, consider innovative ways to cut down or eliminate peoples wait times. If your business value is promoting communication between different groups of people, consider sponsoring networking events. Constantly innovating in ways that reinforce everything your brand stands for is the best way to create and maintain brand name status.

Yaacov Weiss is a brand strategist and founder of Tug branding, in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.

Sunday, November 1, 2009

Kodak Misapplying their market research

Kodak’s new marketing campaign being released this month is a great lesson in how marketing research can be misread.

Kodak carefully chose the words “it’s time to smile” as the tagline for its new year-long, fully integrated marketing campaign. At the heart of the campaign is the company’s commitment to strengthening and deepening relationships through sharing images. The campaign began with social media activities supported by public relations in summer 2009 and will blossom into a dedicated advertising push starting October 31, 2009.

The campaign is based on extensive research. Recognizing that relationships are struggling, Kodak commissioned the “Future of Reconnectivity” report to analyze how U.S. and European populations assess their relationships and the role that digital imaging plays in facilitating deeper bonds. Across five countries, the study found a common desire for people to reconnect with loved ones in the face of numerous barriers that prohibit individuals from reaching out to others. The study also found that digital photography and the sharing of personal images is helping to bridge this divide as 93% of respondents indicated that sharing photos make them feel closer to friends and family by serving as reminders of past enjoyable moments shared with one another.
“The Kodak brand has always been about human connections and capturing and sharing important moments,” said Leslie Dance, Vice President, Worldwide Brand Marketing at Kodak. “‘It’s Time to Smile’ represents our commitment to helping our consumers strengthen their relationships and make it easier than ever to share moments and memories with family and friends.”

The multi-faceted campaign was developed to reach consumers through both online and offline engagement, as well as a television-advertising launch, bringing “It’s Time to Smile” to life by focusing on the relationships and moments that define our lives. These 15- and 30-second spots will run through the holiday season. They have developed three new social media applications consisting of the:

Kodak Konga Line: A Facebook application allows users to create community photo albums surrounding an event or theme. Invite friends to share their images and watch the Konga line grow.

Kodak Smile Meter: Also a Facebook application. It invites users to send custom smile messages to brighten a friends’ day. The application maintains a running message total—the Smile Meter.
Kodak Smile Maker: A new free iPhone application. It allows users to paste unique smiles over existing photos, which they can then share with family and friends.

To support its relationship platform and help consumers reconnect, Kodak identified the existing cultural trend of “BrightSiding” (creating moments that bring people together and make them smile), as well as existing “BrightSiders” who were already practicing the trend. In July 2009 Kodak teamed with the “Compliment Guys,” two Purdue University students who had built a following by sharing free compliments and generally brightening the days of fellow students. The Compliment Guys spread the Kodak “It’s Time to Smile” message by bringing smiles and free compliments to 10 cities along the east coast. The Kodak BrightSide Tour was supported with a dedicated blog (BrightSideTour.com), as well as traditional and social media engagement.

Sounds nice? Well here is what is wrong with the campaign: The campaign is focused on the front end of this smile-sharing thing, rather than the back end. “It’s time to smile” to me is another way of saying “say cheese”. It talks to and is about the photo shoot. Despite the social media apps being about sending a smile to someone, the fact that they are smile-centric, relates to the smiling that one does during a photo shoot, rather than the closeness one feels upon receiving a photo of a beloved one. The problem with that is that Kodak’s relevance in the photo industry is no longer at the photo shoot. That went out with digital cameras. The notion of a “Kodak Moment” lasted only as long as rolls of film were being used and changed during photo sessions. Today with digital cameras, the only things that have relevance at photo shoots are photo equipment and possibly props. Despite Kodak’s efforts to remain in the digital camera business, they will never be recognized as a camera authority. With the exception of disposable cameras, Kodak no longer owns any piece of the photo shooting experience. Therefore, the association between a smile and Kodak no longer exists in people’s minds. The “Kodak moment” is history.

The odd thing here is that the research Kodak conducted and its conclusions have nothing to do with the photo shoot, either. The research concluded that “sharing photos make people feel closer to friends and family, by serving as reminders of past enjoyable moments shared with one another.” Does that sound like “it’s time to smile”? No, it's about printing photo’s and making photo albums to give to loved ones. Consider this, When you pose for hundreds of pictures as you go about your vacation or whatever else you’re capturing on camera, you’re not smiling at the friend or relative. You are simply capturing good times for posterity. It’s in the days after, when life returns to normal that you may contemplate becoming closer to a friend or relative by sharing the photo’s with them. Indeed, the research does not suggest anywhere that it is necessarily a smiling pose that you will consider sending, to build or improve relationships. The key words in the research are simply “sharing” and “reminder”. Sharing a photo replaces a detached present with closeness and is achieved through a reminder of a precious moment that occurred in the past. Sharing photos is what Kodak’s theme should have been. It’s what the research indicates as a sellable moment and it’s where the Kodak brand can shine. Kodak photo processing and Kodak paper are recognized as the best in the industry. Viewing a crisp, clear, vivid picture of beloved people and precious moments, facilitated by Kodak processing and printing, can connect someone to those moments and people.

The first ad of the “It’s time to smile” campaign entitled, “Little moments,” features a personalized Kodak Gallery album with photos chronicling precious moments of a young person, being flipped through. Interestingly, there is not a single photo of someone posing with a smile for the camera. Maybe the creative’s at Ogilvy, understood the foolishness of focusing this campaign on a smile and redirected it to the back end of photo taking; sending friends and family a printed picture or album. That is the area where Kodak really can really stand for something meaningful.

Tuesday, October 20, 2009

Viral Marketing- A lesson from Disney

Viral marketing is a natural outgrowth of email, instant messaging and social networking. Its guidelines need to incorporate the new realities of the customer’s mindset, especially as they sit in front of their computer. Here are some things to keep in mind: With the clicking a mouse, people today are in control of the content they take in. Everything has suddenly become interactive as anyone can post comments on a news piece, post videos, share opinions, and blog about anything and everything. Social networking has also taken on a life of its own as people keep up with each other and share content via twitter and other social networking sites. A viral marketing campaign therefore needs to be engaging and fun, so that people will enjoy it and share it with others. Ideally, it should also allow the user to control its content.
Last year, Disney released a viral marketing video “the Online Virtual Storyteller”, as part of their “What will you celebrate?” campaign. It was quite successful and is worth studying as it has all the elements of a well-structured viral marketing campaign.
Building off their 2008, “Year of the Million Dreams” campaign, Disney’s 2009 “What Will You Celebrate?” campaign was a first in Disney history, allowing visitors to any Walt Disney World Resort or Disneyland Resort theme park, free admission on their birthday. Disney branded the campaign rather simply (the first sign of a good campaign) by creating a balloon with Mickey Mouse ears. The Mickey balloons were used everywhere; in the campaign logo, advertising and the theme parks themselves were decked with them. There were also floats of balloons that travel led around the park. They composed a new “celebration” theme song that was used in advertising and played throughout their theme parks. They also created a viral video labeled “the Online Virtual Storyteller”.
Throughout the years, Disney consistently stood on the branded position of being a timeless, magical, fairytale place. In explaining the viral video Duncan Wardle, Vice President of Global PR for Disney Parks, explained, “We believe that our marketing campaigns should be every bit as magical as the storytelling that takes place within our theme parks. They should be immersive, engaging and fun.”
The video worked as follows: A user would receive an email from a friend or contact that directed them to the home page of a replicated news site where they could watch a personalized video featuring a news reporter talking about how Disney’s Theme Park is being dedicated to one person for the entire upcoming year. As the user watched, they would discover that they were actually that person. They would see their name on a banner over Main Street USA, attractions renamed in their honor; food carts wheeled around with their names on it, and finally see their name featured in the Park’s nightly fireworks. The name changes appeared very realistic. After viewing the news video, the user is directed to a page where they can customize the video for their friends and family. They enter their friend’s details and then select a celebration from a drop down box. Depending on the celebration selected, the video would change messages at the aforementioned points. After entering this information and hitting SEND, the user was directed to the “What Will You Celebrate” landing page on the DisneyParks.com site where they could learn more about the actual campaign, purchase Disney celebration paraphernalia, and view special “celebration vacation” offers. The initial seeding took place within Disney as it was first sent to Disney Parks 35,000 cast members. Here are some of the main features:
· The name of the campaign, “the Online Virtual Storyteller” was an attempt to distance itself from being called “viral” which has a negative connotation.
· The customization of the video allowed a sender to show a receiver they are thinking of them and did something they’ll appreciate and feel special about.
· The sender was in control of the process, customizing the video and sending it to their friends or family.
· Seeing one’s name in a news video all over the Disney Theme Park has a “wow” factor (even though its only imaginary), crucial to facilitating viral videos getting passed along.
· The idea of having the Theme Park renamed after you ties into and reinforces the fantasy and magic of the Disney theme parks. The park named for you, in honor of a celebration, connects with the “what will you celebrate” campaign.
· Senders further engaged with the brand and a call to action was made, when they were asked after sending the video if they wanted to purchase celebration paraphernalia or begin booking their “celebration vacation”.
The results were impressive:
· More than 10,000 blogs embedded the video.
· The campaign paid for itself 18 hours and 36 minutes after its launch through direct sales in online bookings.
· E-mail click through rate averaged 80%
· T he video was viewed more than eight million times
· More than 200,000 opt-in emails collected

The lesson is that although viral marketing is a relatively new form of marketing, and requires adaptation to the realities and psychology of online marketing, it still needs to embrace the old rules of reinforcing the brand image, relating to the targets present mindset, being goal oriented and having a call to action.

Yaacov Weiss is a brand strategist and founder of Tug branding, in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.

Sunday, September 27, 2009

GM- The Anti Brand

“Buy a new General Motors car. Don't like it? Return it and get your money back”. By applying the familiar “money back guarantee”, to something as expensive as an automobile, GM’s new “May the best car win” campaign takes this proven concept to a completely new level. In addition to the high price for handling returned vehicles, GM risks tremendous loss as their vehicles decrease approximately 30% when leaving the showroom. To be safe, GM has purchased insurance in case there are too many returns.
As part of the campaign, GM is releasing advertisements comparing its vehicles to German and Japanese models. Ads also highlight GM’s 5 year, 100,000 mile power train warranties. GM’s “chairman”, former AT&T CEO Ed Whitacre stars in the initial commercials. He explains to the audience that like you, he was originally skeptical about GM but "I liked what I found, and I think you will too." The ads end with a “may the best car win” signature.
According to GM vice chairman Bob Lutz, the new campaign “is a way to try to break through and get over some of the negative perceptions of General Motors and actually get people more comfortable about coming in to a GM dealership, trying a car, comparing it to competition. And, of course, the 60-day satisfaction guarantee is also combined with our five-year 100,000-mile power train warranty”
The new campaign has been criticized as being a poor imitation of Lee Iacocca’s famous “If you find a better car, buy it." ads. Experts question the campaigns focus on GM, instead of emphasizing the individual brands like Chevrolet, GMC, Buick and Cadillac more. Laura Ries, partner of the branding firm Ries & Ries wrote on her blog that the campaign is guilty of “implication of the opposite”, explaining that “GM thinks the money-back guarantee says it believes so strongly in its cars that it is willing to give you your money back if you’re not satisfied. But it is the opposite message that gets delivered. We are so unsure of our products, we’ll give you your money back.” She goes on to explain “The biggest problem with GM is that they don’t lead in any category. Ford is the leading truck brand. Toyota is the leading car brand. Lexus is the leading luxury car brand. BMW is the leading driving car brand. Mercedes is the leading prestigious car brand. What is a Cadillac? What is a Chevrolet? What is a Buick? What is a GMC? None of these brands lead in anything nor do they stand for anything.”
The truth is this ad campaign is complex, well researched and being micro executed. Here are the facts: There’s a long negative history that’s been hurting GM for years and that’s that people feel their cars are poorly built. Additionally, as Ms. Ries put it “GM does not stand for anything”. It can't, because the brand is too broad and unexciting. If Aveo, Suburban and Corvette are all under the Chevrolet brand, what can Chevrolet possibly stand for? To further complicate matters, GM was just bailed out by the government with your tax dollars and its Chaiman Ed Whitacre is Government appointed. It’s no wonder Americans have deeply negative emotions about it.
With this ad campaign, rather than glossing over the issues, GM chose to own up to 2 out of 3 of them. Using the government appointed chairman in its ads, messages that this company is going to run as a capitalistic, opportunistic business rather than like the Post Office. The chairman, although government appointed, is taking an vested interest in its success, to the point that he is willing to expose himself by starring in the advertising. The fact that it’s a poor imitation of Lee Iacocca tells everyone that although this man is no actor, he will do whatever he can to turn it around. Note that GM only plans to feature him in their initial ads. Their money back guarantee and car comparisons do a fairly decent job at tackling the issue of poor quality head on. They are not avoiding the subject but rather delving right into it. It emphasizes how they are aware you are skeptical about GM and you have a right to be, but give us a chance “I likes what I found and you will too”.
Brand wise however, they are doing nothing. That’s because a brand is not created through an ad campaign. A brand is intrinsic. It is the sum total of all customer touch points. An ad campaign can’t do it, so at this point they aren’t even trying. Rather than appealing to consumer’s emotional side, which is accomplished through branding, they are appealing to people’s logical side or rather to the minority of car buyers that make logical purchasing decisions. Logical car buyers are likely to read “Consumers Report” and do comparison shopping. Nuts and bolts type advertising appeals well to this segment. Comparisons to Japanese and German cars work well since GM vehicles can stand up to their foreign counterparts, item for item. “Money back guaranteed” gives GM an additional 1-up in comparison shopping. It also helps the logical decision maker feel secure in their decision to drive a GM vehicle. “May the best car win” is GM's final request to you: Judge GM on its quality rather than its brand appeal.

Yaacov Weiss is a brand strategist and founder of Tug branding and marketing, in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.

Sunday, August 2, 2009

If a brand were a bouquet of flowers…

Two of the buzzwords circulating the brandosphere are “convergence” and “divergence”. Simply put, convergence means the merging of two or more ideas under one banner or offering. Examples include the blackberry-phone, Wawa-Gas Stations, calculator- watches, etc. Sears is a master of convergence offering multiple categories such as clothing, appliances, sporting goods, tools, furniture, camping supplies, home improvement, automotive supplies- and the list goes on- under one roof. Divergence on the other hand, means isolating a piece of a larger offering and making it stand on its own to perform a single function. Examples include Starbucks coffee, Dell computers, Just Tires, Jiffy Lube, Rita’s Ices etc. Procter & Gamble is the king at maintaining divergent categories by never merging any of its hundreds of companies or offerings together.
As businesses attempt to create new offerings (without actually inventing anything new), the question of whether to converge or diverge, constantly arises.
Convergence is logical. “Two is better than one.” From a consumer standpoint -If two ideas work well separately, wouldn’t it be even better to have them come together in one neat package? On the business end, if businesses anyways have the space, equipment and personnel, why not double dip and use it to generate multiple revenue streams? “Kill two birds with one stone.” Divergence, on the other hand, is illogical. From a consumer standpoint, why would someone purchase an item that performs a single function when they can purchase one that offers multiple functions? Why would you go to a specialty store that only sells one product type when you can go to one that sells many different things, including that one item? On the business end, why should a business limit itself to sell only one type of item when it has the capability of doing so much more?
Unfortunately, however, people don’t make purchasing decisions nor do businesses operate well, based on logic. Spending is a function of the heart, routed in emotion and intuition. Whichever offering type appeals to the heart best gets the order. A well run business needs to be seamless and systematic. Cohesiveness should be the objective rather than logic. What needs to be figured out is if convergence and divergence ideas resonate strongly and connect well with customers or not, and do convergence and divergence ideas enable businesses to run smoothly, or not?
Based on the brand theory that people think in categories (See previous article: Own the category, at tugbranding.blogspot.com), it seems that both convergence and divergence can work well, as long as they result in forming one single, complete category.
As an analogy, consider a bouquet of flowers: To one extreme, a dainty vase with one rose and some baby breath, make a small, nice, complete bouquet; appropriate for certain settings. On the other end, a banquet bouquet can be huge with hundreds of matching flowers, perfectly synchronized and laid out. As long as each one is a complete nice looking bouquet, people connect and there are takers. However if a bouquet is incongruent, either because it is overstuffed with mismatched flowers and resembles a mini wild forest, or because it is missing flowers and looks empty, no one at any level of the buying spectrum will connect and buy it. People’s feelings connect with complete offerings, however large or small. So too with convergence and divergence; as long as the sum total of either offering fits within one complete category, whether it be a single item or multiple item category, they can appeal to the potential buyer and be successful. Similarly, when businesses have one central goal in mind, falling under one category banner, they can run like well-oiled machines.
Does Starbucks, a single product type offering, make up a complete category? Sure, it owns the “premium coffee” category. Does Wal-Mart, that sells thousands of different items, make up a single, complete category? Sure, it owns the “household” category. Wawa-Gas Stations are “convenience stops” (or rest stops); BlackBerry-phone is a “communications device”. A Cd/tape/radio is a “listening device”. What category is Sears? Or a calculator watch? Beats me. And that may be why they are less popular than you would have imagined.
Yaacov Weiss is a brand strategist and founder of Tug branding and marketing, based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.

Sunday, July 19, 2009

Tell them what you are not

Although it may sound counterintuitive, there are ways to successfully brand a product or service by publicizing and focusing on attributes it does not posses. This form of branding can be divided into three categories:


The first one is publicizing something negative about a business (or what it is not good at) in order to qualify the positive. Consider the famous Avis slogan “Were #2. We try harder”. Proclaiming to the world they are not #1 takes guts. The underlying logic of qualifying the positive, however, sits well; because they are not #1, they need to try harder. Motel 6 is another example: “Our rooms aren’t fancy; our prices aren’t fancy.” Because their rooms are not fancy, therefore they are able to charge non-fancy prices.
This idea was expressed by adman Ron Hoff. He said "I have often wondered why corporate ads always strive to make the reader believe that the company is infallible. Admit one negative and the rest of your advertisement will gain believability."






The second category takes it a step further. In this category, negative attributes are expressed without even qualifying anything positive! For example, Listerine’s original slogan “The taste you hate, three times a day” or Buckley’s cough medicine “it tastes awful. And it works.” Both these companies chose to focus on an attribute –bad taste- that is entirely not positive. Volkswagen’s Beatle slogan “It will stay uglier longer” or Crocs’ slogan “Ugly is beautiful” chose to brand themselves as being ugly. Both Beatle and Crocs not only have slogans that emphasize their ugliness, their very names emphasize it as well! Naming a car after an insect or a sandal after a crocodile is no oversight but rather a well-planned brand strategy.


Why does it work so well? Why did these companies go on to become “cult brands” with huge fan clubs singing their praises? There are a few dynamics in play. I’ll share one of them with you: People’s minds cannot perceive an item as being good in all areas. The term “Jack of all trades, master of none” may not necessarily be true but is a deeply embedded principle etched in the psyche of the human mind. We don’t believe a Jack of all trades can be master of any. Not only that, but because our minds think linearly, intuitively we don’t truly believe anything to be a master of more than only one idea. Because these brands chose to publicly divest themselves of extraneous positive qualities, we come to believe that they truly mastered the single quality they express. If Crocs look ugly, we conclude that they must be comfortable. If Listerine or Buckley’s taste bad, they must work. Otherwise, why would people ever buy them?


In a different vein, the third category is about saying what you are not, but never explaining what you are. I like to call it the vacuum technique. Consider Obama’s “change” or “Yes you can” message. While it may seem like they told you what he is, in reality you were only told what he’s not. The word “Change” means it will not be like whatever was before the change. “Yes you can” means your prior state was one of “no you couldn’t”. As for what the “change” will be or what will happen when “you can”, that was left open-ended.


The reason this works is because by only saying what he is not, a vacuum is created as to what he may be. Science dictates that all vacuums get filled. Who fills the vacuum? You do. The masses replaced any problematic, unchanged circumstance of the past, with Obama. Obama branded himself as your favorite uncle. Simply saying he’s different than the negative without articulating why, forced the masses to think and figure it out on their own. They figured out that he was going to change all bad into good and was going to enable you (or America) to accomplish things you never did. The vacuum technique is so strong because a) it can’t be misinterpreted and b) the target personalizes it. Whatever went wrong in your past will change for the good. Whatever you personally couldn't accomplish in the past, you can now accomplish. Quite a feat. The sound of silence is loudest!

Friday, July 3, 2009

It’s all about Perception...

At a recent meeting, a prospective client turned to me and said, “The bottom line is that if I have good products and service, my business will succeed; if not, it won’t.” I found that a bit odd because, prior to the meeting, he admitted that despite his business already offering good products and service, it was in need of rebranding. It seemed he was torn between his realistic intuition to rebrand and an inability to comprehend why it works. The following is my explanation:
The first thing we need to understand, is that even if the bottom line was really about good products, service and price, we still need the benefits of branding and marketing.
Here’s why: When you were younger, surely someone posed the following, or similar, question to you: “How do you know the color green is really green; maybe it’s a different color that your eyes just interpret as green?” An interesting question to which there is no good answer. (what a tease!) If you were a little thoughtful, (is that a big "if"?) you probably said “You may be right and I’ll never know for sure, but it makes no difference what color it really is. What’s important is that it always appears to be green.” How very profound! (I'll give you the credit for that answer)What something really is does not make a difference; how you perceive it and how it relates to you, does.
There are hundreds of research studies to prove perception influences more than reality. Here’s one I’m sure you will recognize:
A study of Danish general practitioners in 2002 found that 48% of the doctors surveyed prescribed a placebo (the sugar pill that does absolutely nothing except give someone the perception that he is taking medicine) at least 10 times during that year. A 2004 study in the British Medical Journal of physicians in Israel found that 60% of the doctors used placebos in their medical practice. A meta-analyses in 1998 found that 75% of the effectiveness of anti-depressant medication is due to the placebo effect rather than the treatment itself. "Them Doctors" (to paraphrase Rev. Wright) and research scientists obviously believe in the scientific validity of treatment through perception (or some might argue-deception).
Here’s a product that directly addresses the desire for good service-through perception: According to Storming Images LLC, research indicates that digital flash menu boards produce a 46% customer experience enhancement due to perceived wait time in lines being less than static menu boards. Bill Yackey reporting for Fast Casual (April 2009) writes, “Digital signage gives customers something to look at….The perceived wait time is shortened, and the customer remains happy to be where he is.”
The perception of a good deal or the “need” for low prices was the subject of an extensive research study that concluded: the best thing to do when customers feel the price of an item is too high is to introduce an even higher priced model into the very same category. Customers then perceive the original item as being an affordable alternative.
Having good quality, service and price, is not what wins over customers. What does win over them is the perception of good quality, service and price. It so happens, that reality is usually necessary in order to sustain the perception. However, branding and marketing is what creates and reinforces such perception.
The truth is though, the perception of good quality, service and price, does not by itself motivate people to buy either. If it did, we’d all be broke in a day. People buy things only because they have unmet desires or needs they want fulfilled. The offering that best meets those desires or needs will get the order.
Branding is the process of infusing an offering with signals that signify and create the perception that the product best corresponds to and fulfills their particular needs or desires. If the signals are in place, the objective perception should follow- followed by a sale!

Yaacov Weiss is a brand strategist and founder of Tug branding and marketing, based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.

Friday, June 19, 2009

Laddering- What are You Really Selling?

“Sell the sizzle, not the steak” is the number-one lesson in sales. It means emphasize benefits rather than product. While this is great advice to follow, with branding strategy, things are somewhat more sophisticated. The answer to “What are you really selling?” should be: “Whatever they (customers) are really buying.” The problem, however, is that 90% of purchasing decisions are made subconsciously, with people having little idea why they really buy a particular product or service. Pinpointing why customers really buy, however, is imperative for developing your brand’s identity. A research technique called “laddering” allows us to do just this.
Here’s how it works:
Just as a ladder is made up of multiple rungs, and ascending each rung brings you one step closer to your goal, laddering is the process of digging deeper and deeper into the consumer’s psyche, to discover his underlying motivations for buying. The “ladder” used in laddering consists of four basic rungs: attributes, benefits, consequences and personal values.
Laddering research is accomplished by asking the simple question: “Why?”
For example, a parent tries to put his child to sleep at night, but the child refuses to cooperate.
Parent: Please go to bed.
Child: Why?
Parent: You need a full night’s sleep.
Child: Why?
Parent: So you will be well rested for tomorrow morning.
Child: Why?
Parent: So that you can pay attention in class.
Child: Why?
Parent: So you’ll do well in school.
Child: Why?
Parent: So that you can grow up to be the best you can be.
Child: Why?...
As you can see, with each passing swap the child takes at his parent’s request, the parent goes one-step deeper into revealing an underlying motivation for wanting the child to go to sleep.
Now, suppose we were able to sell the parent a device that is inserted into a pillow and plays soothing music to relax children, putting them into a deep sleep. Our target audience is parents of children that have difficulty getting to sleep on time. Utilizing the information obtained from the above conversation makes it possible to sell this device on any level of the ladder. The basic attributes can be its selling point by describing it as “a device that is inserted into a pillow and plays soothing music.” We can sell the benefits by calling it “a device that gives your child an extra deep sleep.” We can sell the consequences by saying, it’s “a device that will help your child pay attention better in class,” or, alternatively, “a device that will help your child do better in school.” Lastly, we can sell the personal values: it “gives your child the opportunity to be the best he can be.”
Once we understand the target customers "ladder" for your particular product, we will need to determine which rung on that ladder most compels them to buy. This will become your brand’s sales position.
Here are a few examples of famous slogans and catchphrases of brand name businesses, cast on different rungs of the ladder:
Attributes:
eBay – The World’s Online Marketplace; De Beers – A diamond is forever.
Benefits:
Staples – easy!; Verizon – Can you hear me now? Good!; Geico – Geico saves you money; Energizer batteries – It keeps going and going and going.
Consequences:
Rockport – Rockports make you feel like walking; Yellow Pages – Let your fingers do the walking; IKEA – live unboring.
Personal Values:
Apple Computer – Think different; Nike – Just do it; US Army – Be all you can be; Obama – Yes you can; Tug Branding – Stand out and lead!

Yaacov Weiss is a brand strategist and founder of Tug branding and marketing, based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.

Friday, June 5, 2009

Own the Category

There is a very powerful technique that not only makes your business stand out from the competition, it literally eliminates it. More than the ORDO we spoke about in last article, it will place your sales offering in a class of its own. To explain, I will first need to introduce you to the following important brand theory:
Similar to file systems, people automatically and subconsciously classify their purchasing needs into categories. For example, if you need to do a large grocery shopping, what you really need is a “supermarket.” “Supermarket” therefore is a category. By extension, retailers are also placed into the very same categories. So, when you realize you need to do a large grocery shopping, first you categorize your need as a “supermarket” need and only then, by feeling around within the “supermarket” category will you land upon a specific retailer, such as ShopRite. The purchasing decision process therefore is essentially one of first choosing a category and then feeling around within the chosen category for a supplier that best answers your need. Consequently, from the moment your mind first selects the “Supermarket” category, you already excluded any offering outside that category, including the corner grocery store. In the event you can’t get to the “supermarket,” you will, out of necessity, re-categorize your need (possibly compartmentalizing your shopping list into smaller sub-categories such as bakery, butcher, fruit store etc.) and consider options within second tiered categories.
It follows that if there was a way to create an entirely new category and make you the only provider within that category, there would be no (direct) competition! Many of the well-known brands expertly do just this. There are a number of different techniques to accomplishing this; I will share one of them with you today. We will label it “subcategorizing.” First, I’ll describe the technique, then follow up with an example.
“Subcategorizing” is the process of divide, conquer and name. 1) Divide- We explore broader categories that already exist (such as a supermarket) and find a section within it that has the ability to become a successful category in its own right. 2) Conquer- We position this new (sub) category to offer it in a way that’s substantially superior to its current offering within the broader category. 3) Name-We name the new category and let the world know it exists.
For example: Before Starbucks came around, brewed coffee was generally offered only as an ancillary part of larger menus, through diners, cafes and the like. Starbucks essentially “subcategorized” by 1) slicing off (or dividing) coffee from the larger menus; 2) it conquered it by offering a huge variety of coffees. 3) It named the new category “Coffee”. As a result, Starbucks became the only provider within its newly invented niche category.
Consider this: If all things were equal and there’s a choice between getting a coffee at a regular Cafe or at Starbucks, would you choose the CafĂ©, look for the beverage menu and drill down to the limited 2-3 coffee options they may offer, or would you rather reach directly for Starbucks, that is all about coffee? Chances are you’d opt for Starbucks.
Let me end with a disclaimer: When the world notices your new category doing well, direct competition is likely to crop up within the very category you created. It is therefore imperative that we immediately name the category and brand your business as its creator. If people realize you were first, they will usually consider you the “category leader.” After category owner, that’s the next best position to be in.

Yaacov Weiss is a brand strategist and founder of Tug, a branding and marketing firm based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com or www.tugbranding.com

Saturday, May 23, 2009

Let’s begin our discussion of developing your sales offerings’ brand identity. For a sale offering to be successful in the marketplace, it must be recognized as a preferred choice over the competition. Otherwise, what would motivate people to choose it over the competition?

To ensure your sales offering becomes a preferred choice, it needs to embrace a profound idea that is (a) extremely meaningful to a targeted audience, (b) uniquely different from the competition, and (c) distinct enough for you to “own” and become recognized as representing. This idea should be so powerful that people buy into your offering on its merit alone. Let's call this “Ownerable and Relevant Differentiated Offering” (ORDO for short).

Well-branded offerings, by definition, are based on clearly defined ORDOs. You can often find it in a company’s mission statement, tag line, slogan or advertising. Fedex’s promise, “Absolutely, positively overnight” or Lands’ End’s “Guaranteed Period,” are examples of obvious ORDOs.
To arrive at your offering’s ORDO, you must research the following three categories, cross-reference them, and then combine their results. The three categories are: You (and your product), Your Competition and Potential Audiences.

Here are some things we need to consider in each category to establish your ORDO:

You: What are your (or your product’s) strengths and weaknesses? How are you unique? Specifically, what strengths do you have over the competition? We'll consider the feasibility of ridding you of your weaknesses and acquiring strengths. It might mean, for example, moving to a better location, hiring certain experts or agents, or investing in better equipment.
The Competition: Your power lies in differentiating from the competition in a meaningful way. We'll Analyze their strengths and weaknesses to determine if there’s a marketplace void you can fill. A good way to differentiate from them is to be their opposite. For example, if their ORDO emphasizes comfort, we'll consider focusing on style; if theirs stresses professionalism, we'll consider touting friendliness.
Potential Audiences: An idea or benefit can rarely be meaningful to everyone. We need to ask: Which type of audience...
would benefit most from your offering (before it’s branded)?
would provide the most profit?
requires the least convincing?
has a natural affinity to your offering?
do you naturally work with best?
is willing to overlook your weaknesses?
have competitors not yet targeted with a similar type offering?
Most importantly, we consider which audience desires your natural strengths most and is most unhappy with your competition’s weaknesses. We boil them down into definitive stereotypes and decide which one is best to target. The more specific your target audience is, the stronger your brand will be. Don’t worry about us being too focused. If properly branded, you should notice equal or more business from peripheral customers and “wanna bes", as from the targeted audience.

Just like diamonds polish each other; rubbing these three components against each other will make your ORDO emerge. The ORDO is the soul of the brand. Your brand’s identity will be built to support it. Discovering your ORDO, therefore, is the very important first step to building a brand’s identity.
P.S. this post was published 11:30 pm. computer clock had wrong time.

Sunday, May 10, 2009

Marketing for Success: Brand it before you Market it


By: Yaacov Weiss

SEQ CHAPTER


Welcome! Please allow me to lead you into the fascinating and somewhat mysterious world of marketing and branding. This column is intended for anyone wishing to sell something to the public. The techniques I will convey to you here are based on extensive research by some of the world’s leading marketing firms and have been proven to work. You’ll learn why consumers buy certain brands though they are not necessarily cheaper or of better quality, and avoid others even though they are not necessarily inferior or more expensive.

Let us start our discussion with a simple, yet profound truth: What makes consumers gravitate to any particular product or offering? It is a result of their minds envisioning it fulfilling some unmet need or desire in the best possible manner available. Branding and marketing therefore, are the processes of creating signals that communicate to a targeted audience that the product or offering will fulfill their needs or desires in a manner most appealing to them. Traditional marketing has been categorized into Product, Price, Place and Promotion (The Four “P”s). In general, these four categories are the main ingredients that make up almost any offering. They combine to form a “marketing mix.” While each category is broad and deep, we’ll try to keep it simple:

Product
– This refers to what you are actually selling (can be services as well). This includes the whole package, including warranties, accessories, etc.

Price – This refers to the price you set for the “product.” The perception of a product changes according to the price it commands.

Place
– This refers to placement in a retail environment. (Example: The same product can be sold in discount stores or upscale stores, in pharmacies or in grocery stores.) It also refers to the method of distribution. (Example: Some clothing companies sell through third party retail stores, whereas others sell through their company websites.)

Promotion
– This refers to how you communicate with your targets, letting them know you exist and what you are offering. It includes advertising, public relations, internet marketing, signage, visibility, etc.

When properly developed, the Four “P”s cover a vast array of issues that affect/create buyers’ perceptions and form the basis for a working marketing plan. Now, let us turn to branding. If marketing were a ship, branding would be its rudder; if marketing were a project, branding would be its direction manual.

Branding is the art of discovering and formulating an identity that makes your offering most appealing to the target audience. Just as we are attracted to some people over others, we are similarly drawn to specific brands and products over others. In the branding phase, you’ll need to decide, amongst other things, the tone of you offering. For example, should your presentation be classy or rugged, cheerful or muted, animated or relaxed, sophisticated or simple, serious or humorous, trendy or classic, masculine or feminine, etc.? The 4 Ps of marketing are channels through which the brand identity is generated and proliferated. Consequently, before you try to develop your marketing strategy, you must first choose a brand identity. Our next article will give you an overview as to how to locate the starting point for your brand identity.

Yaacov Weiss is a brand strategist and founder of TUG, a branding and marketing firm based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com or www.tugbranding.com