Wednesday, June 30, 2010

The difference between marketing and branding

As a branding and marketing consultant, I am often asked to explain the difference between marketing and branding. In this post I will do better than that- I will explain the difference between sales, marketing and branding, from a layman’s or small business owners perspective.


Have you ever heard the saying: “You can bring a horse to the water but you can’t make it drink”?. Well, to realte that saying to marketing, we can explain that marketing clears a path to the water. It lets the horse become aware of the water and makes it as easy as possible for the horse to get there and drink. It makes sure the water is drinkable and will actually quench the thirst of the horse. Branding makes the water beautiful and tantalizing so that the horse desires it and wants to drink it. Salesmanship takes the horse by the arm (or its mane), drags it to the water and tells it to drink. Now I’ll elaborate.
1. Sales: Simply put salesmanship is methods or tactics that guide a person to take the specific action you want him to take. By nessesity, all sales pitches end with a call to action. Salesmanship includes showing someone all the possible benefits they will get by taking a specific action and the loss they will incur by not taking that action. Proofs and tactics may be employed to signal to the client that the action you are asking them to take is correct. A direct link can be drawn between sales efforts and results. If there is no call to action or there isn’t a direct link between the effort and its result- it is not salesmanship.

2. Marketing. Marketing is one-step removed from salesmanship. It is indirect salesmanship. With marketing there is no call to action and there is at most an indirect link to the desired results. Marketing sets the stage for the sale to take place. Remember the 4 p’s of marketing- product, place, price and promotion. If you have the right product, sell it in the right place (or distribute it properly), have it priced right and promote it well- you should make a sale. And although we test all these parameters, tracking and then researching patterns and trends, there’s no definitive link between these things and the resultant sale. For every pattern and trend, a hypothesis has to be developed and hypotheses can be argued. John Wanamaker famously said “Half the money I spend on advertising is wasted; the trouble is I don't know which half” (Do not confuse this with trackable advertising – trackable advertising always has a sales component with a specific call to action-it is sales, not marketing). I would argue that John Wanamaker was lying- it is impossible for him to have definitively known that half his advertising wasn’t working. However, he was correct in thinking that it was possible that half his advertising wasn’t working- because the bottom line is, there is no way to know for sure. The same could be said for all of marketing. Marketing is logical and intuitive and is based on a keen understanding of human nature. Is it measurable? Not really. Marketing definitely works- but because there is no direct call to action, there is no way to prove it is definitively working in a particular circumstance.

3. Branding is based on human laws of attraction. Try articulating why a particular person is more charming than a second. Now write a rulebook to teach people how to become charming. Well, that’s exactly what branding is all about. Often, it is not about being right or wrong, its about being cohesive and becoming a significant component in people’s lives and purchasing habits.
 Branding helps people draw the conclusions you want them to draw- but they do it on their own. It creates positive feelings in people’s minds and hearts for your business, product or service. It doesn’t push, coerce, compel or sell, rather it allows people to feel positive when identifying with you. Branding has the ability to create a fan club and fans are likely to buy, refer friends to you and even feel lucky they are able to purchase into you. Branding is based on the premise that if people have positive feelings for your business, they are likely to buy from you. Additionally, great selling skills may close a sale, but without branding to support it, people would feel like they were taken advantage of upon completion of that sale.

In an ideal setup, branding, marketing and salesmanship all work in sync to improve sales but each plays a distinct role in the process. Branding wins over people’s minds and hearts, building people’s desire for your product or service. Salesmanship closes deals and yields immediate, trackable results. Marketing bridges the two. It makes your business accessible and noticeable to your prospects so that they are impressed by the branding, which allows salesmanship to easily close the deal.

Friday, June 11, 2010

Here's what changes.

Amoungst other things, peoples desires and focus change every now and then.

Recently, I spent a day in the Garment district of NYC with a client of mine. As we entered the Lincoln Tunnel, I looked up and noticed a Mercedes Benz billboard ad. It showed a Mercedes on an empty beach and said something like “Tan lines fade; a Mercedes lasts forever”. I thought that was a strange and rather meaningless statement. My client pointed out that with summer on the way, everyone’s mind is on the beach and this may be Mercedes' way of tying in to that.

Over the course of our day in Manhattan, we met with the executive director of the GDIC. When he saw me, the first thing he asked was “Are you from the old school or are you new to the garment district?” I looked at him strangely, not sure what he meant by “old school”. He looked at me sadly, shook his head and said, “It’s been a long time since we had yarmulkes (head coverings that orthodox Jews wear) here”. Now I understood. There was once a time when the garment industry teemed orthodox Jews. Many Hassidic Jews worked hand in hand with some of the best-known designers. My grandfather- an orthodox Jew himself, was a textile manufacturer. He had a spinning mill the size of an Airport hangar and dye vats the size of swimming pools. I remember them vaguely. His clients included Kimberly and Zegna, amoungst others. But that all came to a crashing halt in the 80’s.

What happened? Why did things change so abruptly? Well many things changed, such as off shore manufacturing, new government regulations, government incentives to export all our raw materials, cheap labor in Asia, polyester, etc. Nevertheless, from a branding and marketing perspective, something else changed as well, that is very noteworthy.

Back in the 70’s, dry goods such as clothing were valued based on the quality of the goods. People primarily cared about how long a garment would last, how it stood up to heavy washing, the quality of its workmanship, etc. During the late 80’s things shifted. The defining criterion of a good garment was not high quality anymore. Comfort was the new benchmark. Casual Friday became vogue and whoever manufactured the most comfortable clothing was considered the best. As we moved to the turn of the century, that changed as well. The defining criterion was no longer comfort but rather figure. Whichever designer created the most figure enhancing clothing won. Currently, we are still in the Fashion Forward era and more important than longevity, function or comfort, is form and figure. What will come next? Who knows- but give it a few years and it will most certainly change.

Orthodox Jews, especially Hassidic Jews understood quality well- because all you need is common sense to understand good quality. To a lesser extent, they also understood comfort- because it is also common sense. When it came to the Fashion Forward trend however, they were totally lost. Its not something that is rational but rather intuitive. Additionally, figure-enhancing clothing generally goes against our tradition of modesty. Therefore, the orthodox Jews ended up closing up shop and are currently a rarity in the garment district.

To go back to the Mercedes Benz beach ad- while the billboard made no sense to me- the tie in to a tan certainly makes reference to the figure enhancing, fashion forward era we are now in- and that may be all Mercedes was trying to say. In some way you should imagine a Mercedes Benz to be your form and figure statement as well.

My point with this is that while principles never change and strategies rarely change, desires and purpose do change. Be cognizant of that, keep up with current and evolving fads and roll with the punches! Good Luck!