Monthly Archives: August 2017

1 what great brands have in common Patagonia

What do great brands have in common?

What are the common attributes of the world’s greatest brands? And more importantly, what can the average business owner, entrepreneur or marketing director learn from the greats?

I could have done a listicle on the subject: “5 things that great brands have in common.” But that would have been lame… the form of the content would have been contrary to the first, most common attribute that great brands share: Differentiation.

Great brands are highly differentiated from the competition. 

Brands like Ikea, Whole Foods and Nike play by their own rules. They break the preconceived notion of function, service, style or culture and catch the competition off guard. That’s how they establish leadership positions.

Under Armour has risen past Adidas and grabbed second place behind Nike, and it wasn’t by making me-too products. They broke the preconceived notion of function in a t-shirt and have parlayed that into a sporting goods powerhouse.

common attributes of great brandsZappos differentiated itself in the E-commerce arena by focusing on service.

Tony Hsieh knew, from the very beginning, that it wasn’t just a matter of moving a lot of shoes. He wanted to be the Nordstrom of Ecommerce, and Hsieh built the entire operation around that one, core brand value.

Now it’s actually integrated into the Zappos brand identity. “Powered by Service.”

These days, start-ups commonly pitch themselves as the Zappos of of this, and the Zappos of that… “The Zappos of office supplies.”  “The Zappos of skateboarding.”  “The Zappos of specialty foods.”

They all want to differentiate themselves by emulating Zappos, and then get bought by Amazon for $928 million. Like Zappos did.

Apple has always played by its own rules. It’s not just differentiated, it’s purposely contrarian.

It was born that way, as the counter-culture antithesis to Windows and IBM.

According to a 2002 Wired Magazine article, “they did it by building a sense of belonging to an elite club by portraying the Mac as embodying the values of righteous outsiderism and rebellion against injustice.”

common attributes of great brands

So as I write this article on a MacBook Pro what does that say about me?

It says that I’m consciously creative. That I value design. That I like simplicity. That I’m not a corporate lemming. That I “think different.”

Those feelings were imprinted in me the first time I sat down at at a little Mac. And now those feelings keep replaying every time I pick up my iPhone 7. (Not so much when I have to deal with iTunes.)

Great brands connect on an emotional, gut level.

A hot bowl of tomato soup on a cold winter day triggers feelings of comfort, love and security for millions of Americans. It’s M’m M’m Good! (That slogan is ranked as one of the 10 best of the 20th century, and it was successfully resurrected in 2002.)

The ingrained goodwill that we have for Campbell’s Soup is the only thing that’s sustaining the company amid MSG scares, shrinking category sales, and stiff competition from Progresso and other, healthier choices such as Amy’s and Pacific Foods.

what great brands have in commonSpeaking of emotional attachment, let’s talk Target, the country’s second-largest retailer.

My daughter is an absolute brand fanatic. She lives for those Target shopping trips. The ads speak to her. The experience is superior to any other store. And she loves the products they carry. She jokingly admits to “having a problem.”

According to Harvard Business Review, Target’s business objective was to create an alternative to Wal-Mart’s price leadership. It’s done that through upscale discounting — a concept associating style, quality, and price competitiveness.

This “cheap-chic” strategy enabled Target to become a major brand and consumer-shopping destination, and was built around two interrelated branding activities:

what great brands have in common... Target, Zappos, Apple, Harley DavidsonDesigner partnerships and clever, creative advertising.

Target spends 2.3 percent of its revenues on advertising. Target’s agencies regularly come up with fun, memorable ad campaigns that maintain the brand’s hip design aesthetic that has helped transformed its signature bull’s-eye logo into a lifestyle symbol. As my daughter put it, “Yeah, I follow them on Instagram because it’s aesthetically pleasing.”

Target’s brand promise is summed up very nicely in its tagline, “Expect More. Pay Less.”  In other words, the value is a given, but there’s style too. Otherwise, millennials would dessert it faster than you can say “Where’d Sears go?”

what great brands have in commonTarget has successfully associated its name with a younger, hipper, edgier image than its competitors. It’s not just Target, it’s “Tar-zhay.” And for my daughter, who grew up shopping there, it will always will have a special place in her heart.

If you’re a skier, you might be interested in the emotional attachment I have to my Head skis.

If you’re a motorcycle enthusiast, you’ll be familiar with the cult-like culture of Harley Davidson.

If you’re a driving enthusiast, you’ll relate to BMW’s brand messaging…  “The Ultimate Driving Machine.” And you’ll understand that no one bought a Dodge Viper because of its product features.

Emotion is everything when it comes to building an iconic brand.

Great brands deliver on their promise year after year.

Target stays relevant by keeping up with the latest fashion trends and aligning itself with the right designers. The right stars. The right brand affiliations. It’s a constant effort to always keep things fresh.

Many business owners seem to think of branding as a one-time event — do it and it’s done. But that’s not it at all. Branding requires constant diligence.

You won’t stay competitive long enough to become iconic if you’re not delivering on your brand promise. To remain emotionally connected to your tribe, you have work at it on a day-to-day basis. Because an iconic brand does not guarantee business success.

Was Saturn iconic? Certainly for a few years in  automotive circles. What about Oldsmobile and Plymouth? Many icons of the auto industry have stalled, and ended up in the perverbial junkyard.

VW lost millions of fans when they duped the public on Diesel admissions. But the strength of the brand will carry it through. Eventually.

what all great brands have in common Audi

For about 10 years I was a loyal Audi owner. One holiday weekend I had to drive my Q7 two and half hours on a narrow, icy, highway that’s sketchy even on a clear, summer night.  I felt security, safety, familiarity, excitement, satisfaction, indulgence.

The trip wasn’t exactly fun, but it reinforced all my beliefs about the brand: Best damn cars for snowy roads. Period.

Ultimately, however, the brand lost me. I gave up that extra sense of security on snowy roads in favor of financial security. I just couldn’t justify the expense of long-term Audi ownership. I literally felt sick every time I had to check into the service department at the dealership.

The Audi brand couldn’t deliver on its promise when my car was in shop.

Great brands have a clear sense of purpose.  

Your brand’s purpose isn’t to make money. That’s the purpose of the business. The brand needs to stand for something deeper and more meaningful than that.

Nike sells shoes and apparel. But it’s purpose is to inspire action, performance and personal achievement. “Just Do It.”

Starbucks sells coffee and fast food. But it’s purpose is to fill a void in our busy lives. As Howard Shultz once said, “A burger joint fills the belly, but a good coffeehouse fills the soul.”

Coke-a-Cola sells sugar water, but the brand’s purpose is to spread American values around the world. It’s a little taste of freedom in a bottle.

Ikea sells cheap furniture that you have to painstakingly assemble. But it’s purpose is to bring affordable, modern design to the masses.

What is the purpose of your business, beyond making a profit?

Figure it out, write it down, and then start communicating that purpose. Relentlessly.  If you need help with that, call me.

Great brands are great communicators.

A strong, purpose-driven culture won’t help if you don’t communicate clearly.  So sharp storytelling skill is another thing that great brands have in common.

It’s a challenge, staying “on message.” That’s where many companies go wrong… their advertising says one thing, their social media campaigns say another thing, and their website communicates something else entirely.

Consistency and alignment is something all great brands have in common.

Patagonia is a brand with a very clear sense of purpose and a consistent, compelling story to match. They use an authentic, visual narrative. No staged shots of pretty boy models. No over-explanation.

It’s an approach that establishes that intangible, emotional connection that fuels success and inspires people… Participate in the outdoors and help save our wild, beautiful places.

For more on what great brands have in common, try this post.  For help with your own brand, make an appointment with me at BNBranding. We’ll get your messages aligned, and your advertising noticed.

4 The original 4Ps of marketing

The 4 P’s of marketing for E-Commerce (Plus one.)

Every year, thousands of American E-commerce startups are launched with nothing more than a whim and a prayer and website. Most will fail. Some will muddle through, doing nothing particularly amazing, beyond staying afloat.

the 4 Ps of marketing and ecommerceBut a few will experience meteoric success and become iconic brands. (Think Zappos)

What’s the difference? Why do some e-commerce start-ups succeed while so many others come and go faster than a bad Chinese restaurant?

Often it’s for the same reason that traditional, brick and mortar businesses fail: They ignore the 4 Ps of marketing.

Many people in the on-line world seem to think you should abandon everything that was taught in Marketing 101 simply because they have a new distribution method. Apparently, the rules don’t apply to ecommerce entrepreneurs.

Nonsense. You don’t have to reinvent the wheel just because you’re only doing business online. You just have to take a little different route.

Take, for example, the traditional 4Ps of marketing: Product, Price, Place & Promotion. It’s an old-school notion that’s just as applicable today as it was in the heyday of Madison Avenue. However, there’s at least one new P you should also seriously consider.

But before we get to that, let’s look at the originals that make up the 4 Ps of marketing. Consider it a handy refresher:

1. Product

There’s an old saying in advertising circles… “nothing kills a crummy product faster than great advertising.” These days, it happens in hyper time.

Blogs, tweets, and consumer-generated reviews doom products that don’t deliver faster than you can type “#bankrupt.” So the first P is more important than it’s ever been.

The original 4Ps of marketing

Thirty years ago, if you had pockets deep enough for a sustained mass media campaign and a good creative team, you could you could go to market with a mediocre, me-too product or service.

Not anymore. These days your product or product line-up has to be among the best in class. Because people expect more. They’re looking for something compelling — and genuinely different — that’s built in to your core product or service. In other words, the marketing needs to be baked right into the product.

Seth Godin talks about a Purple Cow or a “Free prize inside.”

Tom Peters talks about the pursuit of WOW!

Whatever. The fact is, Product still is, and always will be, the single most important P of the 4 Ps of Marketing. Doesn’t matter if your business is providing the latest, greatest mobile web technology, or an old-fashioned widget, Product comes first and all the other P’s fall in line from there.

2. Price.

I’m no expert on pricing, but I know this: Smart pricing strategies are more important than ever. Here are just a few of the reasons:

ecommerce marketing• The internet enables us to make more intelligent purchases than we did 15 years ago. We’re doing more research and minimizing “bad”purchases and buyer’s remorse. We’re still willing to pay a little more for premium brands, but we’re not going to get gouged. And we’re much more likely to price shop, since it doesn’t involve driving all over town.

• In the world of e-Business you can’t just apply the old “cost-plus” pricing model. It’s way more complicated than that. Even though internet-based businesses tend to have high margins you have to work really hard to develop sustainable revenue streams. In order to build a loyal following and, ultimately, generate revenues, many companies don’t charge anything.

• It’s harder than ever to compete on price. Unless you’re the size of Amazon or Walmart, forget about it! There’s always some other website waiting to undercut your price. You might be the low price leader in your little town, but now people are searching the world for a measly little discount.

So you have to go back to the first P. You have to devise a product or service that has a perceived value that’s higher than your competitor’s, but a sale price that’s equal or lower.

Apple has adamantly stuck to their premium pricing strategy. It keeps them honest. It’s one of their brand fundamentals. They know they have to keep launching products that are superior in design and function. They understand price elasticity and the value of their brand.

3. Place.

The traditional third “P” refers to distribution channels and the placement of your product in stores. Basically, where and how you sell your product. This is still one of the most fundamental elements of any solid business plan.

Look at Costco… They said, we’re a wholesaler, but we’re going to open our warehouses to the public.

That’s a big idea. A purple cow based on the 3rd P.

Even though you may be selling your product strictly over the internet, Place is still critically important. In fact, you could argue that the internet, as a distribution channel, has actually added complexity to the decision…

Will you sell on Amazon? Use Amazon fulfillment? Start an affiliate program and let other web merchants sell your products? Will you warehouse some products, or drop-ship everything? Sell to specialty brick & mortar stores at wholesale? Thanks to the internet, there are all sorts of possibilities.

One thing’s for sure, when your website is your only storefront as well as your #1 marketing tool, you need to make sure it’s absolutely fantastic on every level. 

Messaging. Content. Ease of use. Overall design. Product presentation. Back-end functionality. It’s all important.

 4. Promotion.

Historically, the fourth P revolved around mass media advertising. Sure, there were other elements such as sales promotions, telemarketing, PR and direct response, but advertising was the heart of it. And many businesspeople equated advertising with marketing.

These days, a lot of people seem to think social media is synonymous with marketing.

But social media is just another marketing tactic… Just another way to spread the word about your product or service. There are dozens of other tactics you should consider once you’ve devised a clear brand strategy.

Insight first, then execution. Strategy then tactics.

Once again, the internet complicates matters… Where there used to be just four or five you now have dozens… Content marketing, You Tube videos, paid search, Facebook posts, Twitter, Snapchat and a hundred other online options complicate the mix. The marketing landscape isn’t so much a landscape these days, as it is a landslide. Most business owners are overwhelmed by all the “marketing opportunities” out there.

And don’t forget packaging, which has always been lumped into this category. If you’re doing business exclusively online, your website is, essentially, the packaging.

But here’s the good news about the 4th P: The internet offers advertisers what they’ve always wanted: definitive, trackable ROI on every ad placement. Tracking those click-throughs to conversion allows you to hone in on the message that’s most persuasive and eliminate the promotional efforts that don’t pull.

So that’s a brief on the traditional 4P’s of marketing. Think you can afford to ignore any of them?

What about the new one I mentioned?

The biggest complaint against the original 4 P’s was this: They’re designed from the top down, around what the company wants, rather than what the consumer really needs. They’re too inwardly focused.

So here’s a new P for your consideration:

5. Perspective. The consumer’s perspective, to be precise.

Companies that thrive today are the ones that embrace the perspective of the consumer. Not the 1980’s idea of the consumer as one, massive heard of lemmings. We’re talking about individuals. Real people who are involved and engaged with your brand.

How do you do that?

It starts with market research in its most basic, fundamental form. It’s what Tom Peters calls “strategic listening,” and he contends it’s the most important job of any C-level exec or business owner.

4 Ps of marketing for ecommerceStrategic listening requires that you set aside your existing perspective and listen without prejudice. Some people simply can’t do it themselves… they’re too far inside the bottle to see clearly. So get some professional help. Talk to your front-line employees, customers, non-customers, competitor’s customers. Do it on the phone. In focus groups. In on-line chats. On Twitter or Facebook. Doesn’t matter. Just do it.

The point is, you’ll come away with a new perspective about the genuine wants and needs of your potential customers. And that insight is what weaves all the other Ps together. It should be the starting point, not an afterthought.

You may have to change your product or revise your service. You might have to rethink your pricing structure, shift your promotional strategy or adopt an entirely new business model, but it’ll be worth it.

Because then you’ll have a business built on a foundation of solid marketing fundamentals… five P’s. Put them all together, and sustain the effort, and you’ll have one big, iconic B:  A Brand.

Want more on the 4 Ps of marketing and the fundamentals of branding: Try this post.

Need help getting that new perspective you need for the new year? Call me. 541-815-0075. You can also follow the Brand Insight Blog on Twitter: Brandsight.