Nov 9, 2009 | Branding, Innovation, Marketing
Every brand to be successful has two dimensions.
- Generic attributes, those things it must do well to survive in its category. A car must have 4 wheels, be reliable, and not leak in the rain, a watch must tell the time, accurately.
- Differentiators, those characteristics that distinguish the product from all others, the thing a group of customers values, that creates loyalty & preference. These can be physical, and emotional, and most successful brands combine both.
A Rolls Royce is not a Hyundi, yet they are both cars, they both provide reliable transport, and have 4 wheels, but the differentiators, for which some are prepared to pay enormous amounts are what makes the brand. A swatch is not a Rollex, but they are both watches, just different types of watch that appeal to different people for different reasons.
A brand is not a brand without the distinctive characteristics, it does not matter how much advertising is spent, without the differentiators, it is just like all the others.
Nov 3, 2009 | Management, Marketing
New communication mediums have allowed small groups, and individuals to make a lot of noise, but the volume of noise does not necessarily relate to the logic or accuracy of their position, just to their ability to make noise.
Listen for the validity of a point of view, not the volume with which it is promulgated.
Nov 2, 2009 | Change, Innovation, Leadership, Marketing, Small business
We talk about vision, mission, and all the rest, but at a more fundamental level, evolving a point of view, shared throughout the firm, about the “shape” and trends of the industries we are in, and those of the industries we intersect with, is a really basic thing to do.
Having a point of view about the “green” economy enabled GE to start their “Ecomagination” program before climate change was on the general agenda, it enabled them to disrupt their own light bulb business with the compact flouro, and it drives their current efforts to rebuild their huge medical devices business by developing small, cheap, mobile devices that fulfill a more basic need in developing countries .
All this because Jeff Immelt developed a point of view, and drove it through the business as a catalyst for massive and disruptive innovation.
Have you developed a “point of view” about your industry, and the role your business will take? Few are as influential as GE, able to change the “shape” of their industries by their actions, but it is no less important for small firms to have a point of view, and a plan to deal with the “shaping” influences as they emerge.
Nov 1, 2009 | Change, Innovation, Marketing
The path to free will be a major challeneg for the current century, as the price of stuff follows the marginal cost of producing it down to virtually free.
Music is effectively free off the web, despite the best efforts of the music industry, yet the other parts of the industry are doing well, tours, merchandise, the amount of product is increasing, devices like the iPod are booming, just the sales of the CD’s are tanking.
Software is now largely for free, you can still pay full whack for Windows or Office if you like, but few outside corporate do so, and there are thousands of “apps” emerging for devices that are very cheap, approaching free, and streaming of movies is increasingly happening, although as the penetration of Blue-ray increases, it will slow the “free” uptake a bit as people figure out how to beat the security.
What about games?
They are still $99 from the retailer in the mall, and when a new blockbuster comes out, the retailers are packed with kids buying them, the same kids who would not pay for a new song from their favorite artist. Why are the games not yet for free?? Will it happen?? Inevitably.
Anything that can be digitised will follow the road to (almost) free, the money will be made in the value adding products and services, the way Red Hat Have made a business providing service to free Linux software users, and Apple have made a business out of selling the iPod when the music is essentially free.
However, you will probably still have to pay for your carrots down at the green grocers.
Oct 29, 2009 | Branding, Marketing, Strategy
Politicians on both sides of Australian politics are calling for a “narrative” to describe the values that the electorate should hold dear, particularly advocating a set of values that happen to be consistent with theirs, and their particular brand of politics.
What they appear to mean is that their political “brand” has run out of petrol, and they need something to give it some substance, now!.
Unfortunately, they do not understand that a brand is an expression of values, behaviors, and performance over a long period, and however hard they might try, putting lipstick on a bulldog does not give you a poodle, just a bulldog with lipstick, unlikely to be a pretty sight.
Much better to define what they stand for, take the knocks that will come from those who disagree, but consistently articulate a set of values through which they see the world and its vagaries. Only by that means, over a reasonable time, will they stand for something that the voting punters feel they can rely on. That then becomes their “narrative”, no different to building a commercial brand, and just as hard, except that they are not using their own money to do it, which perhaps is the reason they are so poor at it.
Oct 26, 2009 | Leadership, Management, Marketing, Strategy
Remember your history teachers, one who just had you remembering the dates of events, hard work remembering, and why bother anyway, but what about the one who told you about the people, and engaged you with the stories around the dates and events? It became easy to remember the details because you had the human stuff that went with it.
Building brands is the same thing, don’t just give out the facts, provide the stories that go with the facts, the human dimension.
Businesses have the same challenge when they set out to build a culture, it does not happen overnight, but when the stories that reinforce the culture are told, and celebrated, the behavior becomes embedded over time.
Building a brand, or a corporate culture takes persistence and consistency, and is a task that is never completed, just a work in progress.
