Don’t expect prospects to build your brand


Yesterday I saw a video on the new sonos zone player. You can find the video on the site here but to brief you it is a cool looking internet radio and itunes player controlled by your iPhone that allows you to play music in all your rooms. Pretty cool so watch the video if you can.

The video was really well executed and I was sold by the end of it. I went to the ‘Find a store’ feature on the site and was impressed to find a dealer not far from my office in Kuala Lumpur. There was even a contact name and email address.

I sent the contact an email but also decided to post a request for information on Twitter. Probably because I have sent emails to electronics dealers in Malaysia before and never heard from them (it’s a fairly unsophisticated business here, dominated by old school Chinese traders). But I sent the email because it is slowly changing, as I found out when I had a technical issue with my Zepellin.

Anyway, I haven’t got a reply to the email but I did get 2 responses to my tweet, one directly from the manufacturer @Sonos and one from the distributor in Singapore @SeowHow.

Incredibly, the manufacturer told me to contact their distributor and the distributor told me to contact his sales office!

Here’s some free advice to ensure your brand doesn’t end up in the bulging cemetary of great brands.

1) Don’t expect an interested prospect to become a customer
2) Treat all your leads/prospects as if they are the most important person in your world
3) Don’t expect a prospect, even an excited prospect with buyer written all over his face, to do all the heavy lifting
4) Your brand may be the be all and end all of your life but it isn’t of anyone elses
5) There is a lot of competition out there

Asian companies need to stop following the herd


I’ve said it before, but I feel the need to say it again, according to Ernst & Young, up to 90% of products fail to become brands, despite US$1.5 trillion spent on marketing every year. Despite massive marketing budgets, global brands with extensive reach and high brand recall, numerous brands have died a painful and often avoidable death. Despite those massive marketing budgets, brand loyalty is decreasing and customer dissatisfaction is increasing.

So why do companies insist on investing massive amounts of money in marketing even though it is proven to be inneffective? There are a number of reasons – ego, inertia, fear of the unknown and fear of change, herd mentality and more.

But for the smart companies, think Dell, Amazon, Google, McDonalds, Walmart, Public Bank, Toyota, yes Toyota and many more, the halcyon days of inneffectiveness are over for marketing people and smart CEOs and CFOs expect, no demand greater accountability and more sustainable results from their marketing investments.

When branding was little more than a creative driven concept where a logo was used to make a name stand out and the world was much larger and competition was limited, the four Ps and old world communication goals such as reach, positioning and awareness were often enough to build a brand, then branding was little more than a subset of marketing.

But that US centric mass economy era no longer exists. The world is a much smaller, competitive and very different place today and branding has taken on a much more important role within the organisation. Moreover, consumers are more enlightened and cynical and no longer pay much attention to traditional marketing efforts.

The definition of a brand today is here

Key areas are retention (95% of marketing efforts are aquisition focussed yet very little is spent on retention so as 1 customer is expensively aquired, an earlier one also expensively acquired, walks out the door to the competition. Many companies lose money on the first sale. In the case of technology, it could be the first million sales. Brands are built on the 2nd, 3rd 4th and so on sale).

Organisational excellence (if you don’t do everything effectively and efficiently and on personalised customer terms, you won’t survive). Economic, experiential and economic value for customers (on their terms) and measurement.

It’s not only marketing that is now part of branding, it is also the supply chain, customer service, accounting, sales, purchasing and so on.

The world has changed and if you own a company, you need to change with it. You owe it to your shareholders, your customers, your staff and yourself. It is time to stop wasting money on proven inneffective marketing and start investing in your brand.

Personalisation


Companies have to stop trying to sell stuff to prospects and customers and start coordinating all the resources it has to supplying or satisfying specific customers specific requirements for value.

Consumers don’t want products (or services) they want the products/services they like immediately and personalised. But personalisation in its present form is primitive because of cost, technology, time and lack of appreciation by CEOs. Right now personalisation is nothing more than a colour, sun roof or memory size. Consumers will want to actively shape the offerings and information they receive. It’s already happening in the aircraft/shipping/hospitality etc industries. Hey, even Barbie has 6,000 customisation options!

I’m sure I’m not the only one who has bought something that wasn’t quite what I wanted but was bought more in frustration at not finding what I wanted exactly. After a week it was gathering dust in a store room. In the future, with advanced build to order capabilities, even complex products will be produced specifically for one customer and buying products that don’t quite fit the bill be a thing of the past.

This will also have an impact on communications. Existing customers will no longer visit websites, they will have direct access to their own landing page.

Integrating and engaging all activities


Back in the day, if a TV commercial was good a consumer might, just might ask a friend for his opinion on the product advertised. If the opinion was a favourable one, then the consumer may have sought the product out the next time he was at the mall. Assuming of course that he remembered it on the way to the mall or his memory was jogged by some effective point of sale promotions.

But today, the consumer has millions of friends with him as he watches the TV commercial. And all of those friends are just waiting to pass on their opinion to our consumer. To ask them, all our consumer has to do is key in a word or two into the search cell on his browser on the laptop that is probably on his lap as he watches the TV.

With this in mind, wouldn’t it make sense for advertisers to create TVCs with easy to remember links or search terms that can be keyed in at the same time as the commercial plays? Of course product sites will have to feature the same image of the same product with relevant content and information on local store opening hours and product availability. Messaging and images as well as content in traditional and digital media must be consistent too but this shouldn’t be a problem.

Surely we should move away from the mass market mass economy one message for all approach to this more instant, integrated and engaged approach. What do you think?

Building a 400 year old brand is a strategic initiative


Shepherd Neame, the oldest brewer of beer in the UK was established in 1608 or 402 years ago! An amazing heritage and the brewer likes to play on this heritage with its advertising campaigns for brands such as Spitfire, Canterbury Jack and Bishops Finger.

The brewer allocated its entire 2006 advertising budget, which was about £300,000 (US$450,000) to one of those, Spitfire a real ale, and all of the budget was spent on the London Evening Standard, an afternoon/evening newspaper in London. This was considered a radical change of strategy. As well as print ads, content and sponsored supplements, the brand also sponsored the Evening Standard’s football World Cup special feature in May of that year. The strategic agency was John Ayling & Associates and the creative agency was RPM3. Promotional support such as free pint promotions were also included.

The really well executed and edgy “Bottle of Britain” campaign ran over six months and is one of my favourite campaigns. Here are some samples of the award winning creative work that was considered controversial and was investigated by the advertising watchdog Advertising Standards Authority (ASA) in the UK after complaints about the use of SS insignia. The complaints were later rejected by the ASA. You’ll need to have some knowledge of history, colloquial English as well as WWII jargon to really appreciate the ads.

Spitfire

You can find more examples of their campaigns on the Facebook page here

But Shepherd Neame understands that advertising campaigns are not enough to build and grow a strong brand. As a result, the company continues to invest in state of the art SAP technology and bottling technology, new acquisitions of high turnover pubs and refurbishments of existing properties to create airy, spacious and clean environments.

The company also invests extensively in merchandise including a bottle of Britain book, social media and charity work (Spitfire originated as a charity brew) and will link the brand to the extensive 70th anniversary celebrations of the Battle of Britain due to be held in the UK later this year. Also look out for its campaigns related to the 2010 football world cup.

All these elements ensure the brands offer experiential, emotional and economic value to both new and existing customers.

It comes as no surprise therefore that despite the recession and clouds of uncertainty, red tape and increased taxes and shocking weather in the UK, turnover was up 8.2% to £60 million in the last six months of 2009 proving that investing in brands is not just about edgy and controversial advertising campaigns, but a long term strategic imperative to continue to build on a 400 year heritage!

Managing your media placement is critical


Here’s another example of poor control of ad placement online. If you are responsible for your own ad placement, make sure this will not happen. If the channel won’t let you dictate where your ads cannot appear, find another channel. If your agency is responsible for your ad placement tell them if this happens again, they’ll be one client short in a heart beat.

A is for Advertising


This is a good place to start a compendium of branding terms because unfortunately, it is where many companies start their brand building. And that’s a shame, no tragedy because it is an expensive exercise in futility to try and build a brand using advertising alone.

Advertising can be traced back to around the late eighteenth century when the first print ads appeared in the USA. However, they were rarely much more than extensions of the editorial copy and newspapers were reluctant to allow ads that were bigger than a single column. Even magazines preferred to print all the advertisements at the back of the publication.

Mass advertising only really began in the second half of the nineteenth century when firms began to produce greater quantities of more and more products thanks to improved production techniques. Soon after manufacturing, other businesses such as department stores and mail order firms jumped on the bandwagon and by 1880 advertising in the US was estimated to be in the region of US$200 million. This grew to almost US$3 billion by 1920.

In the mass economy of the 1930s to the 1990s that coincided with the growth of mass circulation magazines, advertising companies proliferated. At the same time, companies wanting to stand out from the competition determined, quite rightly that the quickest way to grow was to raise the profile and awareness of the company’s product or service by informing or reaching as many people as possible in the shortest time.

The most common way to do this was via advertising, especially via TV advertising. The business of advertising is based on a model of repetition across mass media. OK, creativity is important, initially anyway, but once you get over the wow factor, the idea is to repeat the same message through as many channels as possible for as long as possible.

Budget played (and still does) a significant part in what sort of advertising an agency may recommend. It is important for you to know that from the advertising company point of view, the size of the available budget will determine two main points, 1) who works on the project (in terms of seniority and talent) and 2) what channels will be utilised. A larger budget generally results in TV advertising becoming part of the recommendations.

Other platforms include print advertisements, billboards, lamp post buntings, banners, taxi, bus and tube trains, coffee shop tables, flyers, leaflets and more. The introduction of the Internet has seen a proliferation of banner ads, tower ads, unicast ads, contextual ads, takeover ads, interstitial ads, floating ads, and other options to an already noisy, crowded and complicated marketplace. It is important to note that none of these initiatives are branding, they are all advertising and advertising is a tactical initiative not a strategic initiative, like branding.

In the mass economy and unfortunately still to this day, once a campaign has launched, probably to much fanfare, the client waits with anticipation to see the promised sales spike. Meanwhile the agency submitted any well executed commercials to one of the numerous creative shows that offer awards for creativity.

As mentioned earlier, repetition is important and with enough frequency, and perhaps a little vague targeting, this repetition was expected to encourage enough consumers to walk into a store or other outlet and choose or request the advertised product.

The model worked, to some degree fifty years ago but in today’s crowded marketplace, using advertising alone to build a brand is leaving too much to chance. It is simply too difficult to stand out from the crowd. Can you remember the last ‘great’ TV commercial or print ad that you saw? And even if you can, have you bought the product?

Quite often, the promised sales spike didn’t happen, unperturbed and with a straight face, the agency would ask the client for more money, arguing that it is the client’s fault as it should have made more money available in the first place for increased frequency. If you have gone this route, I suggest you bin the advertising agency and call a brand consultant.

Should you still use advertising? Absolutely because advertising will help your company project a vision of the relationship you can deliver to the customer. The ads also help you to educate customers about the value that you can offer them. Advertising must also communicate trust. Unfortunately this is forgotten by most advertisers, especially in South East Asia where outrageous claims made in advertising are rarely backed up in reality. In Malaysia for example, after years of being let down by claims made in advertising, only 14% of Malaysians now believe what companies tell them in their advertising.

But instead of seeking to increase awareness of your product or service with as many consumers as possible, ensure your advertising seeks to communicate with those consumers that are most likely to adopt your product or service.

Make your advertising relevant to those consumers you have targeted. Core messages must be related to those consumers interests, needs and/or desires. So rather than a one-size-fits-all approach in your communications, it is essential for messages to be about offering value to those specific customers and making their life better as a result. How to identify those consumers and what is relevant to them will be explored in brand audits and targetting.

The goal is to ensure a consumer incorporates an offering into their personal or business lives.

Adoption will ensure your brand is seen as the best, hey perhaps even the only choice. This won’t happen on its own. It is a process built on operational excellence, superb sales incorporating ‘top of game’ customer service and the ability to match offerings to the consumers individual requirements for value, on an ongoing basis. To build a brand retention is key and retention requires relationships and without relationships, adoption is not achievable.

And this is good news for Asian companies because the fact is Asian companies, and especially those from South East Asia, simply don’t have deep enough pockets to compete with international brands using outdated one-size-fits-all, mass economy tactics.

Ad placement is critical to the success or failure of campaigns


Here is a screen grab of an article about the terrible earthquake in Chile. Alongside the article is an ad for Celcom, a Malaysia mobile service provider. It is one of those ads that you are encouraged to roll your mouse over to expand the ad and get more information. What I was pleased to note was that unlike many other similar ads, this one reduced when you moved your mouse away from the ad. I find it offensive and intrusive when you roll your mouse over these ads and then cannot get the ad to reduce when you move the mouse away.

Anyway, to me it is another example of the dangers of not controlling your ad placement. This could be considered even worse because it features a man standing on the top of a mountain and by default references nature. I’m not really sure what the relevance of the mountain is and it is not explained in the copy. Perhaps we are supposed to associate using the telco with being on top of the world. Or perhaps it is not relevant and is just an image chosen by the advertising agency. Or perhaps we just make up our own minds in which case, having the ad alongside a horrifying article about the Chile earthquake is not helpful.

We won’t go into the fact that he is standing on the top of a mountain that doesn’t have any snow on it even though mountains lower than his do have snow on them, or the fact that the scale is so out of whack.

But tell me, does an ad like this, alongside a negative story, encourage you to roll your mouse over the ad, read the copy and then seek further information or do you simply ignore the ad?

Take control of your ad placement


I’ve decided to make these real time observations of branding blunders/negative brand association individual posts instead of putting them all together. This latest one is a real gem.

Essentially it is an argument between the British meat industry and the World Cancer Research Fund about the the dangers (or not) of red meat. The article is littered with negative words such as confusing, cancer, nightmare, death, bitter, row and more. To the right (and above) the article is an ad selling Dell computers. You can read the full article here but of course the advertisers may change

The execution of the ad is good. Readers can quickly and easily identify the brand and there is a seamless call to action.

But I’d like to know why Dell is advertising next to such a negative article. How does Dell buy these ads? Have they considered where the ads may be placed? Do they book a specific number of spots and choose the location or does the website decide where the ad goes?

If you are a brand and considering advertising online, make sure you determine what sort of articles the ads can be placed alongside otherwise you may be associated with death, cancer, arguements and so on. Probably not what you intended.

Any thoughts?