Reprioritizing Your Brand Value Propositions

by Eric Tsai

We’re almost midway through Q1 of 2010, if your business is still going through a tough time, you’re not alone.  Perhaps it’s time to review your cost cutting measures or reexamine your value proposition to your customers.

McKinsey Quarterly recently published “The downturn’s new rules for marketers,” which suggests new ways to look at marketing in this post-recession era. Here are some key points from the article:

– To weather the storm, it will be necessary to identify anew who and where the profitable customers are and to prioritize the most effective marketing and sales vehicles for reaching them.

– The old tactic of focusing on historically profitable regions and customer groups will miss the mark. Instead, marketing and sales executives must reprioritize geographic markets and customer segments at every shift of economic fortune.

– Business-to-business (B2B) companies must go a step further. A fresh look at segments isn’t enough; instead, such companies must reexamine their opportunities and risks on a customer-by-customer basis.

– No matter how a company arrives at its quality assessment, the real power comes from combining that analysis with data on the reach and cost of an advertising vehicle. This combination of reach, cost, and quality helps marketers compare the impact of different vehicles on an “apples to apples” basis—the key to effective prioritzation.

– Companies that follow the playbook from past recessions will probably chase markets and segments made less attractive by the present downturn and focus too many resources on traditional marketing vehicles and frontline salespeople. To avoid these costly mistakes, marketing and sales executives must dynamically reassess their geographic, customer, advertising, and sales force priorities, with constant attention to the ever-shifting economics of this downturn.

The take away: It’s time to check under the hood of your marketing vehicles.  Not just from a marketing perspective but from a brand’s perspective to focus on customer-centric strategies in order to improve the overall brand value.  What’s your value to your customers? Can you differentiate? How do you stay relevant?  How will your reprioritize your business opportunities?  Marketing is no longer owned by the marketing department only, consider a more fluid approach in coming up with your new marketing playbook.  We must adopt a marketing strategies that mimic the lives of our consumers and how they choose to interact with brands.

Bridging the Gap Between Brand Promise and Expectation

by Eric Tsai

One of the first priorities in building your brand is to know who you are and why you matter before you uptake a brand strategy.  I received some feedback on the post “12 Principles of Brand Strategy” and thought it would be important to discussion how to utilize strategy to achieve business goals.  Whether you’re selling a product or a service you need to be able to articulate why you are doing what you set out to do. What’s the meaning behind your offer? Do you have a core belief in what it is that you do?

Too often businesses jump on strategy and tactics but forget the real character behind their brands.  Strategy determines how to position your brand so you can optimize the brand experience you’re trying to emulate.  If you aren’t clear with your brand’s attitude, don’t market, don’t advertise, don’t publicize – don’t communicate to the world because you will likely confuse your audience at the end.

When you start communicating, you put out signals about your brand.  Your audience can’t help but to interpret them in an attempt to aggregate information about you, your personality and ultimately your reputation.  It’s like meeting someone for the first time, your tone of voice, your body language and your choice of words are all part of your character from which all facets of your communication expands.  Marketing simply provides different communication solutions to amplify your signals to position and differentiate your brand.

By defining a realistic and manageable promise (your brand value) you can then proceed to strategize on how you will fulfill them.  If you want your target audience to see your offering as the only answer to their needs, you must meet or exceed their expectations.  That’s what remarkable brands do.  They align their brand value with their business strategy to create a winning brand strategy that’s authentic and meaningful.

Communication Tactics

In generate there are three major areas communication tactics:

1. Marketing:
Viral marketing, multi-level marketing, direct marketing, word-of-mouth marketing and integrated marketing are all forms of marketing in an attempt to influence an audience through direct communication.  Why would you put in the effort to get everyone’s attention and not fulfill the expectations? People come to expect a specific experience that’s promised to them.  As a brand you must learn to deliver across a multitude of marketing channels.

Coke Cola may have different advertising slogans, but around the world the company maintains the same focus on its core value: to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. They kept their promise on the taste of their product but have utilized a variety of marketing tactics to reach their global audience.

Google, who rarely advertises, focus on their brand promise to “provide access to the world’s information in one click.” As you probably guess it, they did exactly that which is why Google didn’t have to spend heavily on advertising in marketing their search engine.  In fact, when you deliver on your promise consistently and accurately to a specific need, you become the only solution in your target audience’s mind.

2. Advertising:
Advertising can be fun and interesting but it’s merely an attempt to influence through repeated communication. Whether you agree or not, we’re all voyeur seeking for adventurous experiences and brands are the perfect purveyors to fulfill that interest. This concept generates a gap between what’s expected and delivered.

I was not surprise when I came across a recent report by Harris Poll indicating that “Though advertisers and consumers both agree that amusing ads are effective and scary and guilt-inducing ads are not, they don’t see eye-to-eye on the efficacy of other types of advertising appeals.

harris-ad09Although the poll may have some considerable bias, overall advertising professionals and the general public are out of sync.  The problem is trying to pinpoint what the consumer say they want versus the “perceived effectiveness” as well as what exactly worked in sales conversions.  This is also why advertising analytics are extremely important because as a communication tactic, it’s fairly expensive with relatively low conversion rates.  And, let’s face it, results is what it’s all about.

Regardless of your advertising approach, you must first define the desirable outcome for the campaign according to your brand value then let your creative juices flow.  Creativity is where it’s at, especially now with the convergence of media ads are everywhere and viewers have relatively short attention span.

Remember, a memorable ad may elevate your brand awareness, but it doesn’t necessary mean it will increase sales, it’s a great tactic that requires abundance of creativity. A great example would be a musical branding effort by Coke “omitting any reference to the brand in a catchy song it created,” and still, consumers were able to connect the song with the brand as it climbed to the top 40 Apple iTunes pop chart.

3 Public Relations:
Public relations or PR is the attempt to influence through third party communication in a positive light. Fundamentally, it’s reputation management while developing relationship with mainstream public as well as other organizations where communications exists.  However, with the emerging trend in social media, PR now must take on an important element of this explosive platform – conversation.

PR helps in building brand loyalty so it is even more important to have meaningful conversation to further your authenticity. This is why brands are now turning to bloggers for PR needs but the key is transparency.  According to research from Text 100, “Bloggers are big on transparency when it comes to marketer involvement. Between 85% and 89% of US bloggers agreed that they should acknowledge when a post has been written in return for some sort of compensation.

bloggerrelations

The proper use of PR will boost your traffic and increase conversion rates.  But keep in mind it can also go the other way.  Look at Amazon’s product reviews and you’ll find that there are highly influential reviewers on there that can help drive the rank of a product up or down.  And just like bloggers they have the power to endorse your brand with their signature on it. Their audience have come to expect their personal brand promise of a “proper review” thus anything less could jeopardize their reputation.  Also a full disclosure of their intentions (compensation or benefits) would not damage their name. That’s the strength of brand authenticity built on a solid relationship.

The take away: As global communication and global business are now almost instantaneous, having the right brand strategy and identity is secondary.  If you don’t define your brand promise, how would you go about managing your audience’s expectations?

How would you feel if you were promise something but it turns out to be something completely different?

The Evolution of Media Content Distribution: Circulation 1.0 to 2.0

by Eric Tsai

I often get asked on the benefits of Social Media:  “How should we leverage social media for advertising and marketing?” or “What do we need to consider when incorporating social media into our existing strategy?

There are still a lot of questions surrounding social media.

The simple way to get a grasp on it is to first understand how information flows through social media.

Visualizing The Circulation Evolution

I like to visualize information so I’ve created the following graphics to describe how content travels through the traditional media channels.

circulation1_0

As you can see in the traditional model, content gets created (by few sources) then aggregated into the circulation 1.0 channel of print, radio, television, and the web.

These “read-only” materials get pushed out on a one-to-many process requiring users to retrieve them.

Take newspaper as an example: it all starts with the editor creating the content, then it goes through a review process before it gets printed on paper, and finally delivers to you so you can start reading the content.

This is a top-down approach for content distribution with maximum control

Now let’s looks at how social media elevates the content circulation in the 2.0 model.

circulation2_0

In this model, everyone is a content producer enabling user-generated content to scale efficiently.

When you have millions of people contributing content, it creates a many-to-many race to publish and distribute information.

As a result, the content now comes to you, pulling you to consume.

In addition, the nature of web 2.0 allows content to be syndicated and shared almost instantaneously.

Finally let’s incorporate circulation 2.0 as part of the circulation 1.0 and you get the “hybrid” model:

circulation1_5

I call this circulation 1.5  because it retains the traditional media’s channel of distribution while adding web 2.0 into the mix.

The concept is to leverage the best of both worlds from 1.0 and 2.0 to gain maximum impact for brand exposure and brand awareness.

Beyond Circulation 2.0

Most brands are still on circulation 1.0 networks and many are on the path to circulation 2.0 by adding social media to their traditional media channels.

The great thing about circulation 2.0 is that everyone is pulling your content creating a natural word-of-mouth marketing that’s pervasive.

However, as the speed of these dynamic conversation becomes even more instantaneous, in the case of Twitter, the content producer have less control.

Content can get interpreted out of context and then passed along down the line just like that telephone game we all played in kindergarten.

This is why many companies are using social media primary as a service function for reputation management and customer support.

That’s exactly what Zappos, PizzaHut, Intuit, and Dell have done by leveraging Twitter for those purposes.

This creates transparency and adds authenticity to the brand which is where social media has taken us to so far. Moving forward brands must rethink the intend of their products and services and manage expectations carefully through positioning and messaging.

After the financial meltdown last year there is a lack of trust for brands and a definitive shift on perceived value.

That’s why there is such an acceleration in social media because people demand to know the truth and in many ways social media allows us to get closer to what really is happening.

When Twitter was first launched in July 2006 (happy 3 year birthday!) it was intended to be a quick update for your groups of friends.

Today it has evolved to a social networking tool to report, react, and discuss anything from news to random thoughts.

It will probably continue to evolve because of the fluidness of the platform has allow users to take the service in completely unexpected directions.

Now that’s good for innovation, they just need to figure out a business model for monetization.

The fact is traditional media still reaches far more audience than social media as I write this post. I’m sure I’ll circle back in the future as things may change in unexpected ways too.

Let me know what you think.