Nov 4, 2011 | Branding, Communication, Marketing, Strategy
A consumers relationship with a brand is a bit like a friendship, if it is strong, you will be prepared to put up with a bit of nonsense and still be friends, if it is weak, you may not be. If the poor behaviour continues, it will normally be the end of the “brand friendship”, after all, a friendship is supposed to be a two way process.
It’s a simple equation, deliver the benefits of friendship, the “brand promise” to people who care, and you will not depreciate your brand, fail to deliver, and depreciation occurs, and as every marketer knows, building it up is always harder than tearing it down
Accountants understand the notion of friendship in a balance sheet, called “goodwill”, they see it all the time, problem is they do not understand how it gets there.
A quick scan of the commentary yesterday after the Cup day reduction of retail interest rates resulted in all the major banks, except NAB, passing on the whole reduction indicates, a customer PR bellyflop of significant proportions, a whack on the nose to all “brand friends” .
It really does not matter how justified the “banking” of .05% of the decrease by NAB may be, they have just spent millions telling us how they are different from the others, setting themselves up as the bank for service, one you can go to with your financial problems, your banking friend, and it has been an effective message. All gone, “Poof”.
A rational bankers decision based on the margin squeeze created by the rising costs of wholesale money, and the reducing rates in Australia, but taken in an emotional market. Dumb.
Want to see brand depreciation, just look at NAB for a case study.
Oct 20, 2011 | Branding
Building a brand takes time, resources, and determination, but more importantly, insight. Whilst it is impossible to break insight down into a checklist that is useful for all situations, picking the brains of experts is always useful, and provides if nothing else, a menu to start the thought process.
Finding the right expert is usually a problem, there are many touts, too few experts, and brand building results are cumulative, and often not obvious inside the payment cycle for the touts.
However, there is lots of pretty useful stuff around that can offer thought starters, amongst the best of them is offered by David Aaker. This post of David’s on the ways to create barriers to competition, and this one on the components of a great brand, taken together provide an excellent list of factors that demand some consideration.
Sep 15, 2011 | Branding, Marketing
Rubbish you say, marketing always matters.
Well, the next time you try and get some sense out of Optus or Telstra when you have anything that does not fit into an easily packaged Q&A form for someone in Bangalore who does not know Sydney from Senegal , try and tell yourself marketing does matter to them, and fall about laughing.
If it did, your issue would be treated as important to them, there would be someone who could fix the problem in easy reach, you would not have to wait hours being told your call was important to them, and then never get a return call.
Clearly in the current telco environment, demand is greater than supply, so marketing does not really matter, or so they think, customer churn is a part of the game, and annoying a few is a small price to pay in the chase for short term margin maximisation.
Marketing does not matter to them, at least for now!
However, the worm usually turns. Remember when you could not get a spot on prime time television without selling your grandmother, or a preferred position in the Herald Saturday classifieds, and had to wait weeks and sometimes months for the local bookstore to get in an obscure title you wanted?
Now, response can be virtually instantaneous, and we have become very used to instantaneous, and when we do not get it, we can pile buckets on the perpetrator via social media, just as we can promote their great service on the odd occasion it happens.
Marketing always matters, because without a customer, you have nothing.
Sep 2, 2011 | Branding, Communication, Marketing
The link here is to the Social Media Examiner site, probably the best commentator on things “social media” amongst the thousands out there, offering 9 reasons why content does not get shared, emerging from some useful research.
Thing is, as I read the list, it is not just about the leverage offered by social media, it is about marketing generally.
All the 9 reasons can also explain why your brand has little relevance to a consumer, refuses to “stick” despite the huge advertising budget, and just gets missed by busy consumers.
Make sure you have a look at the Volkswagen ad in the post, sure to bring a smile to the face of anyone with a heart, it also ranks in the top 10 viral ads, according to the number of on-line views.
Aug 22, 2011 | Branding, Communication, Marketing, Social Media
Media is now “free”, you can make a commercial and put it up on youtube and work/hope to attract an audience, a significant difference to buying time on TV, where you are paying for the delivery of an audience to your advertisement, assuming not too many of them can time-shift to avoid it.
Most ads on youtube and other free media fail to generate viewers beyond the immediate family of those who made it. Some however, generate a significant audience, and a very few deliver a huge audience, one that chooses to watch, and have therefore the potential to delver a brand proposition with enormous authenticity.
This commercial for Dove achieves this rare double, powerful positioning, and a wide audience, almost 13.5 million views to date, although a few, like me, are hardly in the target market, but it is one of the very rare few where they got far more than they paid for.
Aug 5, 2011 | Branding, Marketing, Social Media, Strategy
Tesco is the leader in the field of retail social media marketing, as noted in the past, but have really outdone themselves with this experiment with a virtual store in railway stations in South Korea.
The speed at which innovations are being tested, and if implemented is increasing, but usually we would expect a smaller business to be sufficiently agile to try some of this stuff, but Tesco is building a really impressive track record.
Australian supermarket retailers are in the dark ages by comparison, although some of the smaller food service retailers are starting to move with location and coupon promotions, but I would expect Coles particularly, now managed by a veritable cricket team of ex-Tesco Poms to make the running amongst the big boys.
