Truth 35. Effective branding begins with the name

"Close-Up," "Jiffy Lube," "Rain Dance," "The Medicine Shoppe," "Irish Spring," and "Puppy Chow"—all are great names that reflect the essence of the product or service. Close-Up captures the benefit of a sex-appeal toothpaste. Jiffy Lube wonderfully says "quick oil change." Rain Dance vividly portrays the end result of a well-waxed car. The Medicine Shoppe states simply the nature of their business. Irish Spring brings imagery desirable for a deodorant soap. Puppy Chow clearly identifies the niche for which the brand was designed.

Good branding starts with the name—the representation of the brand, conjuring images, concepts, and experiences. The name is the foundation for these perceptions. Foundations for buildings can be purely functional or can actually enhance the aesthetics of the structure. Poured cement gets the job done; natural stone also beautifies the building.

And so it is with brand names. A brand name can be purely functional: Price-Waterhouse, Levi's, Xbox 360, Heinz, and Avis. Or the name itself can serve to enhance the perception of the brand. Brands such as PlayStation 3, Showtime, and Build-A-Bear lay an immediate foundation and create a perception upon which other marketing activity can enhance. The name itself creates that very first perception.

Despite the obvious value of a good name, a quick tour through the local phone directory shows a number of businesses using meaningless initials: CSR (temp services), FTS (delivery service), and LGT (cabinet work). Or, in a fight to appear in the front of the book, some use a variation of "a" at the start of their name: Aaabco (rooter service) and about 35 businesses called AAA or A-A (including an auto parts store, a resume writing service, vacuum sales, a key and lock service, a plumbing business, and a travel agency). Really, how silly.

And then there is a local business called Just Wooden Fences. Pretty clear, huh?

In global marketing, the common approach is to "Think Global, Act Local." The spirit of that statement is to bring the brand and the marketing strategies to a regionalized area, but to implement those strategies given local influences. When all is said and done, however, a brand might be left with only its name as a global constant.

The packaging may change; different size or formats may be prominent in a country. Colors may have different meanings, so the packaging or even logo may have to be modified.

Even the product itself may change to reflect the global needs. Coca-Cola uses a modified formula in Asia. Asian populations don't appreciate the level of sweetness that Western cultures do, so Coca-Cola changes the product formulation to meet those consumer needs. The main constant for Coca-Cola is the brand name.

Maintaining the global name is not easy. The name may have various meanings in different countries. The English version may be difficult to translate or hard for a culture to pronounce. It becomes too easy to buy in to local arguments that a different name for a country or region is needed.

However, if building a global brand is important, the one piece that must remain constant is the name. The name is the foundation for your global brand. In the face of multiple local activities, stay true to your constant—stay true to your name.

Mergers create their own naming challenges. There is the Fifth Third bank. Any guess on how it got its name? The Third Bank merged with the Fifth Bank. Pretty clever, huh? There are now FedEx Kinko's copy centers. Perhaps FedEx would have been better just leaving the Kinko's name (well known for copy centers) separate from the FedEx name (well known for overnight package delivery). The telecom industry has experienced a variety of mergers; one of the largest was SBC and AT&T. After what was certainly much deliberation, the SBC name was cut loose in favor of the AT&T brand. This decision was in part due to the broader awareness and international scope of the AT&T brand.

The brand name is the mental hook upon which equities and associations are hung. Naming experts often suggest that a brand name should be short, memorable, and unique. Yes, but consider that the name itself should embody the essence of your brand. Consider that the name alone should provide an understanding of what the brand represents or to whom the brand is targeted. You never have to see an advertisement for Brawny paper towels to understand that they are tough. You don't need a brochure to explain the key benefit of Fit 'N Trim dog food.

Certainly there are many great brands—Apple, McDonald's, Mercedes-Benz, Rolex, and Tide—that have no inherent meaning. The meaning and value of these brands have been built through years of advertising and exposure. A name with inherent meaning is not a requirement for creating a successful brand, but it does make the job much easier.

 

Truth 36. Your brand makes your company powerful, not the other way around

Companies are always interested in being the leader—in being a powerful voice in the market. Many times, companies believe the "power" is derived from its leadership and that ultimately it is the company that makes the brands powerful. Actually, that can't be further from the truth. Consumers typically don't buy companies, unless they are investing in the stock market. Consumers buy brands. Corporate revenues come from brands. Corporate profits come from brands. It is brands that make a company powerful, not the other way around.

Let's imagine a trip to the Porsche car company. What would you see? You would see some manufacturing facilities—people working on assembling cars, some automated equipment, and cars in various states of finished production. You would see some office areas: finance managers shifting funds among asset classes; accountants reconciling end-of-month processing; marketing people reviewing copy for an upcoming brochure; engineers revising prototypes for a model revision. In fact, you would see pretty much the same activity you would see at any other company.

There is nothing that you would necessarily see or count or catalog that would capture the value of the Porsche brand. Other companies with less-powerful brand names, such as Kia, have people doing the exact same activities. What makes Porsche as a company powerful is the Porsche brand—a brand built upon years of focused excellence in the domain of sports cars. Engineering a strong heritage of racing tradition that, in turn, carries through to high-performance street cars. Creating exclusivity in the market by building fewer cars, with great care.

The Porsche car company has assets—buildings, equipment, employees, and so on. These assets have value in the design, development, manufacturing, and selling of automobiles. If the Porsche company were to liquidate, their employees would find jobs elsewhere, equipment could be sold (at a great discount), and building space could be sold or leased. But the most valuable asset would be the right to the Porsche name and crest.

All too often, companies don't appreciate the power of their brands. Unfortunately, corporate arrogance of power and success frequently gets in the way of potentially successful brands. There is such a strong belief that the power comes from the organization, that the brands are not carefully managed and supported. When business decline occurs, the corporation doesn't understand why. If the corporation is so powerful, shouldn't consumers be knocking at the door?

One company that got quite caught in this trap was Mennen. Commercials for its products always ended with "By Mennen." There was a belief that the corporation would add power to the brands and thus the tag line. But the brands were lackluster, and no amount of corporate endorsement could correct that situation.

What is unfortunate is that Mennen used to have some very strong brands. Do you remember Old Spice? How about Speed Stick? Somehow or another, Mennen lost its way. Instead of focusing on the strength of its brands, they thought its corporate "power" could drive the brands instead. Unfortunately, years later, it is now trying to revitalize some of its brands that used to have some market strength.

What about Disney? Disney is a powerful company. See, a company can drive powerful brands, right? Wrong. Let's take a close look at this. Is Disney the company driving the power of the brands? Or are the brands driving the value of Disney? Think of the brands that Disney owns: Peter Pan and Cinderella, and Goofy and Winnie the Pooh, just to name a few. Each of those brands is a powerhouse in and of itself. When a special three-year-old goes to preschool each morning, she doesn't search for her favorite Disney toy—she would not know to ask for Disney. She always looks for Winnie the Pooh. She knows Pooh by name, and she loves Pooh.

Her sister is four and loves her movies. Yes, adults know she loves Disney movies. However, this little one will tell you she loves The Jungle Book and 101 Dalmatians and Lady and the Tramp. There is no denying that Disney is a magical company. It has learned how to harness the energy and power of each of its individual brands to create an enormous business. But, the business of Disney is much like the business of Porsche. There are assets to manage, copy to write, and month-end reports to run. It is not the power of Disney that creates the magic of the brands. Pooh and Donald Duck and Snow White are the powerhouse brands that drive the business of Disney—because it is the brand that makes the company powerful.

 

Truth 37. Be consistent but not complacent

Friends in our lives usually have predictable personalities. There is our clowning-around friend, our shy friend, our ambitious career-driven friend, and our sensitive and caring friend. Although our friends have many sides, we experience friends in predictable ways. If our shy friend suddenly starts clowning around and being very outgoing, this is a bit unusual.

Brands are like friends. You know them in predictable ways. You expect consistency. You expect them to be true to how you know them. Sometimes the market doesn't accept a brand acting beyond how people have come to know it.

Volkswagen is a very familiar brand—the original Beetle was a quirky, endearing little charmer of a car. Volkswagen has certainly grown up over the years—and the original Beetle is automotive history. However, Volkswagen has worked very hard to connect with a young, hip audience. The Golf, Jetta, and new Beetle have been instrumental in reviving the company and helping differentiate Volkswagen from its more stodgy rivals.

All of this makes its entry into the high-end luxury segment with the Phaeton very puzzling. The Phaeton is no doubt a great car—but it just isn't how people have known their friend Volkswagen. Predictably, the Phaeton has been a sales disaster, since this $60,000–100,000 uber-luxury car doesn't fit the VW image. Volkswagen is a perfectly good brand—it just wasn't staying true to how people know it.

Consistency of message is also important. Repetition and consistency is important to deeply implant the brand's meaning in the mind of the target customer—over and over. Think of Levi's and blue jeans, Saturn and friendly car-buying, and Hefty and tough trash bags. Brands that regularly change their message are like people who constantly introduce themselves as something else. First it's "Hi, I'm Steve. I'm an attorney." Then it's "Hi, I'm Steve. I'm a veterinarian." Later, "Hi, I'm Steve. I'm an electrician." Steve will have us so confused, we won't know what he is.

Marketing managers want to believe in the value of consistency, but often argue that they can't keep their brand consistent. The environment is constantly changing, and our competitors are changing—the only constant is change, they will say. But do not confuse consistency (a good thing) with complacency (a bad thing).

The first model year for the Porsche 911 was 1963. Across four and half decades of 911s, the brand has maintained amazing visual consistency. There is a design aesthetic—a fundamental core essence to which Porsche has stayed true. Porsche has also stayed true to the 911's basic mission of providing the ultimate sports car experience.

As consistent as Porsche has been with the 911, it has not been complacent. Close examination of 45 years of 911's would reveal the cars to be different from a mechanical and engineering standpoint. Porsche would not be successful trying to sell today 1960s automotive technology. The 1963 911 had a 2.0 liter engine generating 130 horsepower with a 0–60 mph time of 9.0 seconds and a top speed of 130 mile per hour. The most recent 911 Turbo sports a 3.6 liter power plant churning out 480 horsepower, reaching 60 mph in 3.9 seconds and maxing out at 189 miles per hour. Although the 911 has been consistent, it certainly hasn't been complacent.

Breitling is a Swiss watch manufacturer. For decades, Breitling has built its brand image around aviation. It has stayed true to this core message year after year. Its watches, though, are continuously upgraded and updated to stay technologically relevant. A recent addition was a model that contains an ELT (emergency locator transmitter). When activated, the ELT transmits your position on an emergency frequency monitored worldwide. This technological advance is perfectly consistent with Breitling's image, as an ELT is a device (automatically activated in case of a crash) universally placed in every aircraft, from a small two-seat Cessna to large jets. Consistency without complacency.

The key to consistency is focus. Without focus, there is nothing to be consistent around. The Gap has been struggling because it's losing its focus. Known for comfortable casual basics for younger people, it has tinkered with its merchandise to broaden its appeal. But the newer clothing styles and colors aren't popular. The Gap has drifted from how people knew it. Timberland, by contrast, stays consistent without being complacent. Timberland sells clothing and footwear; it freshens its inventory every season. Timberland naturally wants to ensure that its offerings are attractive to its target audience. It isn't complacent. But it is consistent in ensuring that its inventory reflects a brand oriented toward the outdoors. It ensures that its styles have a certain rugged authenticity about them. Consistency without complacency.

 

Truth 38. Is your brand different? If not, why will someone buy it?

A brand has a special meaning when it is unique. By being unique, a brand is differentiated from others and is, therefore, more memorable. Consumers utilize the brand to assist them in distinguishing products and services. As such, if your brand does not communicate the difference you provide, the consumer will see little reason other than price to purchase it.

Many marketers tend to look at competitors and try to mimic the success a competitor has. When a brand is not differentiated, it does not own a unique position in the consumer's mind. As such, it becomes difficult for a copy cat brand to earn the respect and a sale from the consumer.

It is not just copying a competitor that leads to lack of differentiation. Not clearly understanding the benefits that make your brand a better choice also leads to problems. Clear differentiation is a primary reason that consumers choose a brand.

The retailing giant Sears has long struggled with this issue. Sales have suffered because consumers have been unable to determine why they should shop at Sears. Sears was, for many years, heralded as the company to go to for just about everything. However, with the proliferation of mass merchandisers, combined with the increased popularity of specialty stores, the capability to carry a number of products was no longer unique. Sears could not explain to consumers why it was different, and why they should buy at Sears. So many consumers didn't.

The world is filled with brands that have died because they were not different enough, not unique enough. Izod, 7-Up, and IBM personal computers are all brands that, over time, gave the consumer no reason to purchase them. Hush Puppies is a shoe brand that fell into the nondifferentiated abyss. It made products for everyone—men, women, and children alike. It tried to claim a bit of comfort, but that was no different that any other shoe brand out there. There was no unique design. There was no flashy ornamentation. On the whole, it wasn't "special"; they were not differentiated shoes. As such, its sales were quite lackluster.

For the many failures, there are an equal number of success stories. Enterprise Rent-a-Car understands why it is unique. Whereas all other rental car companies base their business in airports, Enterprise scatters their locations through the community; focusing on customer service…"we pick you up." Consumers understand this uniqueness, see value in this, and have recognized it by renting from them.

An interesting category to consider is that of bottled water. The marketers try desperately to differentiate their bottled water from other bottled waters. Importantly, they also differentiate their bottled water from tap water. Consider Fiji water, which is bottled at the Fiji Islands and is full of minerals. Compare that to Evian, which is natural spring water from the French Alps. The list goes on, and for each type of bottled water, there are small points of difference that are being made. Each seeks a relevant distinction to generate long-term sales and profits.

The video game machine market has been highly competitive, with Nintendo, Microsoft, and Sony jostling for the affections of gamers. Sony has been highly successful with their PlayStation franchise (PlayStation, PlayStation 2, and PlayStation 3). Microsoft has put a lot of resources into its Xbox 360. Technological advances have led to increasingly involved and realistic gaming experiences. But those advances also brought games that were complicated for casual gamers to master. Nintendo's Wii became a big hit by moving in the opposite direction. Nintendo developed a simple, intuitive controller and easy-to-play games that attracted legions of consumers who would not normally be interested in video games. Nintendo differentiated its Wii in a way that was highly appealing to an audience not well-served by Sony or Microsoft.

Have you ever walked with a child down a candy aisle? Talk about differentiation! Any four- or five-year-old can clearly explain to you why they love 3 Musketeers but not Snickers. Why Peppermint Patties are always their choice over Raisinets. The benefits of a Reese's Cup over a Baby Ruth bar. There is no denying that these are all chocolate products. But the candy industry is famous for creating a unique difference in each of its brands, making that candy bar special for its consumers, and seeing consistent growth as a result.

Identifying a point of differentiation is fundamental to brand building, but it is difficult. Resist the urge to copy your competitor. Instead, look for opportunities to be unique. What is the one, salient point that makes your brand unique? Can any of your competitors try to claim this point? Are you communicating this difference to your consumers? If your brand does not stand for something special, why should someone buy it?

 

Truth 39. The three M's of taglines: Meaningful, motivating, and memorable

Great taglines instantly create meaning around a brand. Pepsi's "Generation Next," Michelin's "Because so much is riding on your tires," and Visa's "Life takes Visa" all nicely capture something special about those brands—Pepsi's association with youth, Michelin's emphasis on safety and trust, and Visa's connection to our day-to-day lives.

Powerful taglines should embody three characteristics. They should be meaningful, motivating, and memorable. Let's take these three M's and consider them individually from the consumer's perspective. A tagline must be meaningful. What is meaningful about the brand to the target audience? Why should your target care? If it is not meaningful, why will consumers buy it?

A good example of a meaningful brand tagline was for the brand Sega. Sega used "Welcome to the next level" as its tagline for its video game system. This reference, referring to every gamer's goal of getting to the next level within a game, connected well with the younger audience Sega targeted.

Meaningful messages often deliver in two ways: something about the consumer and something about the brand. Sega is a good example that this can be effectively done. "Welcome to the next level" speaks, of course, to the gamer's individual goal for himself or herself. The tagline also speaks to the superiority of Sega games and the increased challenge at each level. With both a personal message and product message at work, the meaningfulness of the brand's tagline is greatly enhanced.

Consider, too, the idea of motivating. It is not enough to have a meaningful tag line—it must motivate as well. The essence of motivating is to cause the target audience to want to purchase. The tag line needs to help stimulate the target audience to take action. In order to take action with a product, frequently a tag line will stimulate action in a person's life as well.

Does the tagline motivate your target to see the brand as important and, ultimately, include the brand as part of their life? Apple Computer has been successful in creating a line of products that are significantly differentiated from its competitors. Apple's tagline "Think Different" is simultaneously a statement of its corporate philosophy and motivational rally point for legions of Apple fans who see themselves as willing to be different.

Finally, think about memorable. If a tagline is meaningful and motivating, but no one remembers it, will it drive sales? Most likely, no. A tagline needs to stay with an audience. It needs to be in their frame of reference when it is time to make that purchase, when a need must be answered.

Clever taglines can certainly be memorable. Energizer's "It keeps going and going and going…" is an example of where cleverness captures the imagination of customers. However, sheer force of repetition can etch a simple phrase indelibly in consumers' minds as well. Maxwell House's "Good to the last drop" and BMW's "The ultimate driving machine" are both testimony to the power derived from the consistent use of the same line year after year.

Nike has long used its "Just Do It" tagline. Nike embodies the essence of the three M's in this tagline, which is why it is now such a ubiquitous line—understood, accepted, and loved by so many worldwide. The concept of "Just Do It" is meaningful. It is meaningful in terms of the product, and it is meaningful to the lives of the target that Nike is trying to reach.

The tagline "Just Do It" is motivating as well. People take it as an individual challenge to perform. It also motivates purchase, of course. Buying the product will help the consumer meet personal challenges. It is so motivating, that a friend was mentioning that her eight-year-old son firmly believes he will jump better in basketball with Nike shoes on. He believes he can perform better and have an advantage over his friends, because of the Nike promise.

Of course, it is exceptionally memorable. It is so powerful, that Nike can go to just the "swish" logo, and consumers immediately translate that to "Just Do It." They don't need to see or hear the words to get the message.

Although many factors contribute to a brand's success, the tagline has great potential for enhancing the brand's meaning. As you build your brand, consider the three M's. Is your tagline delivering your brand message in a way that is meaningful, motivating, and memorable?

 

Truth 40. Customer service is the touch point of your brand

Improving customer service is not the most glamorous of marketing tasks. Advertising can be great fun. Traveling with the sales force can be enlightening. But the nuts and bolts of focusing on customer service can be an important component of your brand's success.

Customer service vividly reflects your brand. It is your brand promise brought to life in a one-on-one interaction. Product return hassles, long delays "on hold," transfers from person to person, careless delivery people, and grouchy people at the counter all help to sour feelings toward the brand. Often these interactions come just as your customer is making a purchase (placing a phone order, checking out at the register) or trying to repair a problem (product return). These interactions are sometimes the last contact with your brand before the long delay until their next purchase.

Many people often complain about automated phone services. You call in to change your cable or your phone services, and you are responding to a recorded voice. For the cable or phone companies, these automated phone systems are a cost-effective way to walk customers through many common issues and questions. Unrecognized, however, is the brand cost of losing a powerful opportunity to engage with a consumer and create a positive experience about the brand.

Enterprise car rental understands the importance of the one-on-one time with its customers. Pop into an Enterprise location, and you will be cheerily greeted by well-groomed, well-dressed young men and women. (Enterprise is the number-one recruiter of fresh college graduates.) Your questions and requests will be handled politely and efficiently. You are left feeling good about your choice to use Enterprise and feeling good toward the brand.

Enterprise starts all its employees at a retail location—washing cars, greeting customers, and processing rental agreements. Starting out washing cars isn't really about training its employees to be better car washers. Rather, it instills early on some humility and understanding of the importance of serving the customer. Enterprise fully appreciates customer service as the touch point with its brand.

Many computer companies have been shifting their call centers overseas. In the spirit of offering a live and hopefully positive brand experience, they are looking for the middle road between automated systems and a costly U.S. customer service system. The personal one-on-one experience with the brand can powerfully drive the brand message. That is, until one finds someone on the customer service side who is not a fluent English speaker. A potentially positive brand touch point can turn negative very quickly. Not only is the customer service personnel not easily understood, but also the problem may not be resolved as quickly.

For many companies, customer service is considered an expense. Frequently seen as part of operations, the focus is on how effectively and efficiently questions, claims, or issues are resolved. However, customer service is a clear opportunity to create a strong one-on-one brand experience with each customer. When customer service is considered as part of the overall brand experience, it puts this critical function into an entirely different light.

Lands' End is a well-known brand. Its service is uniquely delivered through its customer operations. You may receive a catalog, and you may choose to order online. Frequently however, customers prefer to call in. Why not? Very knowledgeable, well-trained operators can work with you on any of your various questions, from materials used, to sizing to color options. And are they ever friendly! Lands' End has unlocked the secret to customer service. The customer service touch point for Lands' End is truly a centerpiece of the brand experience.

Customer service is a critical component in brand building. The touch point provided by customer service is a unique opportunity to create a one-on-one experience between each of your customers and your brand. Customer service is a powerful tool to have in your arsenal of brand-building activities. Customer service may not have the glamour of an advertising shoot in Los Angeles. However, it does have a truly unique capability to build strong brand experiences and ultimately brand preference, one person at a time.

 

Truth 41. Smaller targets are easier to hit

An archery club was practicing. All lined up, each person faced what seemed to be a small target hung in front of a bale of hay. Perhaps if those targets were larger, they would have a better chance of success? On the archery range, a nice, big target can be easy to hit.

In marketing, however, the opposite is true. Large targets are difficult to hit. The more diverse group you hope to appeal to, the harder it is to construct a compelling brand proposition, and the tougher it is to build meaning around your brand that connects with your potential customers.

Washington D.C. bookstore Politics and Prose built a wonderful business focused around the intellectual community, stocking thoughtful poetry, policy analysis books, and other provocative works that engage the reader in contemporary issues.

Forgoing the temptation to broaden the store's appeal, staying focused actually makes it easier for Politics and Prose to resonate with its customers. Carefully defining to whom it wants to appeal to guide its inventory, special events and speakers, and communications. Such clarity enhances the store's distinctiveness.

Politics and Prose is a great example of a small business that has thrived amid changing business dynamics—the growing popularity of large booksellers such as Barnes & Noble and Borders, as well as internet competitors such as Amazon.com. Developing a meaningful niche and building a business around a specific customer segment helps isolate Politics and Prose from formidable competitors.

Creating a brand's bull's-eye is the role of a target audience description. A target audience description details a brand's most likely prospect. Developing a rich, thorough target audience description underpins effective marketing and brand building. Understanding your target audience, and appreciating what gives their lives meaning, leads to a message about your brand that connects with their reality. A target audience description provides an aiming point.

Don't be reluctant to precisely depict the kind of person toward whom the brand is targeted. The question "Who is your target?" is sometimes answered with "Well, pretty much everyone." Although it may be true that everyone could possibly afford, use, and get value from a brand, some people simply make better prospects than others. A person may be a better prospect because of their values, their life stage, where they live, and so on. What brand message could possibly bring meaning to "Well, pretty much everyone?"

More common than the "Well, pretty much everyone" target is a target that is still simply too broad. Consider the over-used target "female shoppers, age 25–54." Including "shoppers" adds nothing insomuch as every female (and male) is a "shopper" at one time or another. Here are two females, age 25–54. The first, a single 27-year-old high school dropout, has three children and lives in rural Kentucky. Living with her mom, her full-time job, bringing $19,000 a year, helps with shared expenses. The second, a married 45-year-old college graduate, lives in downtown Chicago. Their household income totals $275,000. They have a part-time nanny helping with their two children.

So, there are two "female shoppers, age 25–54." To which one are you directing your brand's message? Without knowing the answer to that question, a meaningful message can't possibly be crafted. Your message is meaningful when it is motivating and relevant to your audience. You can't know your message until you know your audience.

A good target audience description should include demographics, geography, and psychographics. Demographics include characteristics such as age, income, household size, education, gender, and marital status. Geography can be scaled up or down as appropriate. A small local business might target a particular neighborhood or part of town. A domestic company might find that its best prospects are on the coasts or maybe in the southeast. An international brand may choose to focus on particular countries or parts of the world. Psychographics reflects values, lifestyles, and attitudes and enriches the target audience description.

A specific, well-crafted target audience will be a more homogenous group—a group that shares similar motivations and desires. A group that market research can focus on to uncover important triggers for purchase. A group for which a compelling brand message can be crafted.

A few caveats are in order. First, any target audience has to be large enough to support the financial objectives and business model of the brand. The target audience for a soft drink will likely be larger than the target for an expensive luxury car. Second, having a well-defined, clear target does not mean that others won't be attracted to your brand. There's no gatekeeper refusing to sell to those outside your target audience. Power, though, comes from a deep understanding of the kind of person most likely to be attracted to your brand. And that deep understanding comes from having a focused, detailed target audience description.

A large target might be great on the archery range. But when developing a brand, a much smaller target is preferable. A smaller target is easier to hit.

 

Truth 42. Beware of the allure of brand extensions

The secret to building a great brand is consistency and focus. However, this can be terribly difficult to do. As soon as a brand does well, companies like to take the brand and extend the name to many other products. In theory, it is understandable. Why spend significant dollars building a new brand when there is a perfectly fabulous brand sitting there and waiting to be leveraged? By extending the brand, consistency and focus are typically lost. However, what is the long-term cost of slowly deteriorating a brand versus the immediate savings from not having to create a completely new brand? Is it better in the long run to build a new brand from scratch or develop a brand extension?

In a cost-focused, corporate environment, the answer is too simple. Extend the brand—take the name of an existing brand into new categories. Hooters starting an airline, Heinz introducing a cleaning vinegar, Reese's bringing to market lip balm, Cosmopolitan (the woman's magazine) launching a brand of yogurt—these are just a few wacky examples.

There are two dominant brands of chicken: Perdue and Tyson. Tyson completed a $4.6 billion merger with beef and pork producer IBP. As a result, Tyson owned a number of beef and pork brands that were a part of the IBP empire.

Tyson management had several options. One approach could have been to take the best known of the IBP beef and pork brands and concentrate marketing efforts toward building greater consumer awareness and affinity with the stronger brands. Tyson could reinforce its connection with "chicken" and then build separate strong brands for beef, pork, and ready-to-cook home meals.

However, Tyson decided to scrap all the IBP brands and instead place the "Tyson" name on beef, pork, and other assorted products. Essentially, management created a number of brand extensions—a range of disparate meat products all under the "Tyson" name.

The logic is there. "Tyson" is a well-recognized brand that consumers identify as good quality. But the link is there in customers' minds between "Tyson" and "chicken." Why not build equally strong links between a different brand name and "pork?" The more the "Tyson" name is spread around, the greater the chance of weakening the association between "Tyson" and "chicken"—an outcome Perdue would love to take advantage of.

Tyson planned a $40 million dollar advertising campaign behind the tagline "Tyson. It's what your family deserves." This meaningless slogan could apply equally as well to a bank, a minivan, or a home computer. Tyson management forgot what the Tyson brand really means…and soon possibly so will consumers.

The vigilance required by brand managers is critical when it comes to brand extensions. Before an extension can be considered, brand leaders need to truly understand what their brand stands for in the marketplace. Whereas Tyson clearly stands for chicken for many consumers, BMW stands for the "ultimate driving machine." For BMW, it is about driving performance. Its brand is not limited to cars. It is appropriate for motorcycles as well.

Healthy Choice struggled mightily with its brand extensions. When Healthy Choice was first introduced, it was as frozen dinners. As the consumers hopped up on the healthy bandwagon, brand marketers at Healthy Choice decided to extend the brand into numerous other categories. Before long, there were Healthy Choice cookies and Healthy Choice crackers, with all sorts of products in between. As Healthy Choice embarked on one brand extension after another, the brand started lagging. In each case, the extension was a product that stood for a low-fat, healthy alternative. But the consumer understood the brand to stand for frozen dinners—healthy frozen dinners to be sure, but frozen dinners all the same. The consumers struggled to apply the Healthy Choice brand to other food options handicapping these Healthy Choice brand extensions.

If the position of the brand is not clearly understood, then an inappropriate extension will dilute and confuse the message of the brand. No doubt the allure is there. What a great way to build volume for a brand—extend it a bit. Right? Wrong! Beware the allure of the brand extension; it may provide a short-term financial gain that ultimately erodes your brand.

 

Truth 43. Keep advertising simple, but not simplistic

The camera holds tight on a Master Lock as a bullet penetrates the lock casing, but the lock holds steadfast. A distinguished gentleman in a tuxedo adds his soiled handkerchief, some ice, some water, and All-Temperature Cheer to a martini mixer, shakes, and removes the clean handkerchief. Early VW Beetle advertising used uncluttered visuals of the car with straight-forward headlines such as "$1.02 a pound," "Think small," and "If you run out of gas, it's easy to push." Folksy Tom Bodett pitched Motel 6 as a basic good-value place to stay and promised to "leave the light on for you." Each of these classic ads had a very clear message delivered with laser-sharp crispness.

People are bombarded by a never-ending stream of commercial messages. How much do they notice? Not a lot. How much do they retain? Even less.

The most effective advertising is simple. Simple in concept. Simple in execution. Simple advertising is understandable. Simple advertising is memorable.

Simplistic implies trite and trivial. Neither is desirable, yet there seems to be no shortage of trite and trivial advertising. There have been the Burger King ads with a large, oversize "king" showing up to tell viewers…what exactly? There have been the funny ads featuring cavemen and Geico insurance. The cavemen were so popular, they even got their own (short-lived) TV show, but what was their message about Geico?

Responsibility for simple advertising rests with both the client and the ad agency. It is the client's responsibility to identify the one main point the ad should deliver about the brand. Yes, one main point. Not two, not three…one. If the client hasn't done this, the agency needs to ask for it. The one main point should be tangible, meaningful, and distinctive.

The agency's task is to develop an ad—TV, print, web, radio, or outdoor—that clearly communicates that simple idea in a creative and interesting way. Creativity should enhance the communication of one main point—help the communication break through the clutter of competing messages.

Tabasco ran an ad featuring a man sitting on his porch on a hot steamy evening. He is dousing his bread with Tabasco hot sauce. He keeps eating and pouring more Tabasco sauce on his bread. A mosquito lands on his bare leg, takes a bite, and flies off. A few seconds later, the mosquito explodes, and we cut to the grinning man. Simple, creative execution delivering the basic message that Tabasco sauce really brings the heat.

In a Philips ad for its long-life light bulbs, a young man sits reading a paper by the light. The light goes out and he replaces the bulb with a Philips long-life bulb, returning to his paper. The light goes out again. As he screws in a new long-life bulb and the light comes back on, the viewer sees he is now an old man—very simple concept, very simple execution.

In the public service domain, an organization called The Truth has run several very powerful antismoking ads. One ad shows a large van pulling up to the headquarters of a major tobacco company. The people with the van unload 1,200 body bags to visually depict the number of people who die of tobacco-related illnesses each day. Again, a focused message—simple, direct, and creatively delivered.

Be on the lookout for ads that are so creative, they mask the fact that there is no selling idea. Such ads often play to laughs and smiles in the company but do little to impact the intended consumer. Also beware of the ad that stuffs so many selling messages into it, nothing will stand out to the viewer. Both need strategic help. In the first case, the brand team and agency need to find something motivating to focus the brand around. In the second case, fat needs trimming.

For your brand, spend time determining the one main point you want your advertising to communicate (the concept). Ask your agency or creative team to communicate that one main point with focus and impact (the execution). Don't fall in love with fancy art direction or elaborate production values. Don't let creativity hinder clarity. Don't rely on your agency to gloss over your lack of a clear strategy.

Be simple in what you say. Be simple in how you say it.

 

Truth 44. It's a long walk from the focus group room to the cash register

Focus groups are ubiquitous—a relatively easy, inexpensive, and quick way to take the pulse of the consumer. Brand managers and agency staff lounge in a darkened room, behind a two-way mirror, enjoying soft drinks, finger sandwiches, and M&Ms while 8–10 consumers critique their work. Focus groups evaluate new product ideas, advertising storyboards, package designs, and promotional programs.

"If you saw this jalapeno-flavored milk mix at your store, would you be interested in trying it?" asks the moderator.

"Yes, I might try it out," responds one participant.

"It seems interesting," replies another.

"If I had a coupon, I might consider it," adds a third participant.

"It certainly sounds different," a skeptical woman replies.

The marketing manager, eager to launch such a spin-off brand, scribbles notes to herself: "good interest in trying…like that it is different…be sure to include a coupon program for trial…."

Would you be surprised to find a year later that this jalapeno-flavored mix was stagnating in the warehouse? This fictitious example may seem a stretch, but many businesses make significant decisions based, in part, on interest shown by consumers in these groups.

In a focus group, people generally want to be helpful. It costs them nothing to say, at least, they find the idea interesting. It costs them nothing to say, yes, they might try it. Lukewarm responses are optimistically interpreted by marketing managers, hopeful that favored ideas will come to fruition.

Focus groups are an important research tool—when used in conjunction with other research and supplemented by sound management judgment. Focus groups provide great color commentary. What about the ad is liked/disliked? What about the package is confusing? How does this product taste? What do you think about this brand? Do you like this promotion idea? Why? Why not?

But marketing managers often slip into the misstep of quantifying focus groups. Imagine a focus group discussing five different ad campaign ideas. Carefully listening to the thoughts and reactions to each of the campaign ideas gives a valuable perspective on what is important to consumers, what in each idea is connecting with the participant.

But, inevitably the client wants participants to choose their favorite—fine if such a question then launches fresh discussion for qualitative insight. Tabulating the result, though, has no value. Clients will say, "I know this isn't really meaningful, but let's see how many participants preferred each campaign idea." Even knowing the pointlessness of counting "votes" doesn't prevent people from wanting to do so!

Focus groups are not a bad thing; they can be relatively quick, inexpensive barometers for enhancing management judgment by bringing in the voice of the consumer. Skillful moderators can set participants at ease and smoothly navigate around some of the potential pitfalls of focus groups to ensure a fair exploration of the items on the discussion guide.

Participant comments can contribute to making better branding decisions—maybe revealing something about the ad that hadn't been considered. Sometimes uncovering an insight leads to a product modification. Certainly focus groups help you develop a greater empathy with your target audience, who are often very different from yourself.

What are some ways to maximize value from focus groups? First, don't overload the discussion guide. You don't want the moderator or the participants rushed. One of the key advantages of focus groups is the ability to explore comments in greater depth and engage the participants in dialogue that yields insight. Overloading the discussion guide can inhibit rich exploration.

Second, take notes but refrain from drawing conclusions prematurely. Listen to ALL the participants. Attend ALL the groups that are held on the topic of interest. Drawing conclusions prematurely will bias your interpretation of the rest of the groups.

Third, resist the temptation to quantify anything. There are research tools and techniques that are well suited for drawing quantitative inferences. A focus group isn't one of them.

Finally, at the end of the evening's sessions, listen carefully to the moderator's comments and observations. Often the people behind the mirror are eager to share among themselves what was learned from the groups. This is fine, but listen first to the moderator. The moderator will be the most objective person in the room and can temper overly optimistic (or pessimistic) interpretations of the focus groups.

Focus groups can be an important tool in providing consumer insight into your brand. But when it comes to spending money, it is a long walk from the focus group room to the cash register.

 

Truth 45. Repositioning can be a fool's chase

Marketing managers sometimes talk about "repositioning their brand." This is often expected to be a competency for many brand managers. Many organizations change brand managers frequently, with an expectation that each manager will "reposition" their brand in a way that the previous manager could not. If they reposition often enough, surely at some point they will hit on something. Right? Wrong!

Brand managers do not completely control or own the brand. A brand resides in a consumer's mind. At best, brand managers can influence its meaning. But in the end, brand management is about creative activities that "cause" a certain "effect" in the marketplace. It is the accumulation of these effects, created in a consumer's mind that define a brand. So, brand managers don't have full ownership of the brand—the consumer does. Brand managers have responsibility for brand stewardship and try to influence the brand in the minds of the consumer. But, in the end, the consumer will determine whether he or she will accept the marketing influences.

If brand managers don't clearly own the brand, but merely influence it, then how in the world can they possibly reposition it? To reposition means that we need to change what currently exists in a consumer's mind about a brand and shift it significantly enough to take on a new meaning. Although it can be possible to reposition a brand—Mountain Dew's transformation from a laggard has-been to a cool, contemporary icon of extreme sports is a good example—such transformations are typically expensive and take years to achieve.

So, why is "repositioning a brand" such a common phrase in marketing departments? Typically, this stems from either some change in the environment (a new trend, competitive entry, and so on) or simply management's impatience and desire to "make something happen." Such a so-called strategy is either mislabeled as such or highly foolish. Let's consider each case.

First up…consider a brand that has not been well managed, carefully defined, or clearly understood. Year after year, the marketing plan changes the focus of the brand. One year, it is a traditional brand for stay-at-home moms. The next year, the brand group decides a more contemporary image is appropriate. The following year, a new brand team broadens the appeal by including men in the target. And so it goes. Each new brand team declares they are "repositioning the brand." But—and here's the catch—the brand was never clearly positioned to begin with! To say "repositioning" for a brand that has no positioning doesn't make sense.

Consider Kimball Office, a high-end brand of office furniture. Kimball Office competed with the likes of Herman Miller, Knoll, Hayworth, and others. Its management sought to reposition Kimball Office yet again, so it could more effectively compete with these giants in the industry. What did Kimball Office mean in the marketplace? It stood for pianos and really beautiful hand-crafted wood furniture. But Kimball hadn't made pianos in over 10 years. Most of its business had shifted from high-end wood furniture to metal systems. The brand as the customer understood it had great strength, but it did not have much permission to move into other products. You couldn't simply reposition the brand to be new and contemporary, despite what management wanted. The marketplace wouldn't stand for it. So, according to the consumer, repositioning was not an option.

Brands, like Kimball Office, that are not clearly managed will limp along—never attaining their potential. Marketing managers will come and go—secure in their contribution to the brand's "repositioning." The real tragedy is the second case, an already well-positioned brand.

Building a strong brand requires years of consistent investment. Achieving a solid positioning (Bounty = absorbent, Crest = dental health, Southwest Airlines = inexpensive air travel) is to be cherished, not scrapped. Minds are very difficult to change. Imagine if Southwest Airlines decided to reposition their brand as "upscale international air travel." First, they would be throwing away years and millions of dollars in brand-building investment. Second, it will be very, very difficult to think of Southwest Airlines as anything but inexpensive air travel. As a consumer of Southwest Airlines, would you ever give them permission to be elegant international air travel?

The first case is so common. Brand positions that fluctuate year to year are challenges many companies struggle with fixing. That still doesn't mean that repositioning is the answer. It means that understanding your brand equities and building consistency to its message is the solution.

The second case of a strongly developed position in the market is to be cherished. Look not to reposition, to destroy the place you own in the consumer's mind. Look instead to build upon the brand's heritage. The point forgotten in repositioning is that brand building occurs over time. So, the investment you made 2 years ago, 5 years ago, or 10 years ago all leads to the brand that you own today. Trying to reposition is not just about making a move in this year—it is about undoing the work of all the previous years. In a world that cares about short-term profits, it is easy to lose sight of the total investment made in the brand over the years. However, although companies lose sight of that, the consumer certainly does not.

Clearly understand your position in the consumer's mind. Identify brand equities to leverage. Be proud of who you are; reinforce the positioning you have. Repositioning can be a fool's chase.

 

Truth 46. With advertising, don't expect too much

Advertising is an important marketing tool. Advertising can communicate a brand's distinction (Bounty paper towels as the "quicker picker upper"), can permeate our social fabric ("Where's the beef?," "I love you man," "Whazzup?"), and can raise awareness of important social issues ("This is your brain on drugs."). Advertising brings high expectations. It is an expensive and highly visible marketing tool. But it is simply one tool, of many, that contributes to a brand's success.

Volkswagen has had its ups and downs in the U.S. market, having lost $1 billion a year over the past few years. To resurrect sagging fortunes, VW hired the widely acclaimed agency Crispin Porter & Bogusky to revitalize its brand. The agency's new ads featured Helga, a very Teutonic and very sexy blonde. Speaking with a German accent and clearly targeting young men, Helga highlighted the, ummm, performance features of its GTI model.

Crispin Porter & Bogusky also developed a series of ads themed "safe happens." These ads portrayed very realistic driving scenes, putting the viewer right in the VW. Suddenly, the car is hit. Although the car is damaged, the occupants are fine, and the ads closed with "safe happens."

These ads were well produced. Crispin Porter & Bogusky is a respected agency. But VW was having problems beyond the capability of advertising to solve. VW was perceived as having lower quality than its Japanese rivals and ranked in the bottom 20% for reliability, quality, and service according to J.D. Power & Associates. These are serious business issues, requiring brand improvements on multiple fronts. For VW, advertising can raise top-of-mind awareness. Advertising might encourage car shoppers to drop by a dealership. But it will take more than creative ads to get the brand back on track.

Audi introduced its R8 sports car—a Lamborghini-sourced 420 h.p. mid-engine, four-wheel drive, two-seater beast. To introduce this new model to a wide audience, Audi ran an R8 ad during the Super Bowl. The ad reprised a scene from the Godfather. In Audi's ad, a man wakes up to find the chopped-off front-end grill of a luxury car in his bed. Cut to outside of the mansion. The Audi R8 fires up its engine and speeds away as the script "old luxury just got put on notice" appeared on screen.

Debuting on the biggest media event of the year generates awareness—perfect for a new brand like the R8. More than just awareness, though, Audi created an attitude for its new model.

But awareness and attitude alone won't be enough to ensure the success of the R8. Overall image and perceptions of parent company Audi are a factor. The capability to credibly support a model outside Audi's normal market is a factor. The price of the R8 relative to its key competitors will make a difference.

Let's keep going. People's experiences at their local Audi dealership are important. Arrogant or nonresponsive salespeople (yes, there are some) can send potential R8 buyers to Porsche or BMW. Previous experience (positive or negative) with Audi cars will shape people's view of the R8. Reviews by magazines such as Car & Driver and Automobile will matter.

Audi has created a dynamic and evolving website in support of the R8. Product brochures at dealerships are an important information resource for potential customers. Audi's involvement with racing will help enhance the R8's image.

Audi's creative and compelling advertising is only one small piece of a large effort to build the R8 brand. Audi understands the importance of advertising but also knows to not expect too much from this one tool.

Hank Seiden, in his book, Advertising Pure and Simple, says that all advertising can do is persuade an interested person to try your product once. Hank Seiden certainly helps place expectations for advertising in a perhaps more realistic perspective. Even achieving Hank Seiden's modest goal would be a major accomplishment for advertising. Many of the advertising messages you are exposed to each day simply roll over you unnoticed.

Advertising isn't the end-all in marketing. There are many ways to get a message to a target audience. There are many important tools for building a strong brand.

For many, advertising is an unwanted intrusion, a distraction. Advertising gains some power through consistently delivering the same simple message time after time. Advertising gains some power when the message is delivered with sufficient spending to crack through consumers' indifference. Advertising can work for your brand, but don't expect too much.

 

Truth 47. Don't let testing override judgment

Companies love to test things to death. Why? Probably for several reasons. It seems like the smart, responsible, logical, M.B.A. sort of thing to do. Another common reason is a lack of confidence by marketing managers. Especially when their career began in some area other than marketing, research can serve as a safety net. Also, companies consist of multiple levels of management. Senior management, not close to lower-level decision making, isn't fond of hearing that the troops in the trenches are making decisions based on intuition.

Nope, they need to generate research and analyses. They need to cautiously pursue the lowest-risk option. They certainly don't want to jeopardize their jobs by shooting from the hip. Research is the ultimate CYA (cover your *ss). So the testing machine gets cranked up—focus groups pick apart ideas, surveys uncover "statistically significant differences," and everyone wants to know top-two-box scores. This isn't an indictment of research. Simply consider research as augmenting, not replacing, judgment.

There are multiple problems with allowing testing to override judgment. To begin with, marketing is sometimes most effective when based on a creative, poignant insight. The science of testing, if relied on extensively, can obscure that creative insight. The first principle frequently sacrificed is a focused message. There is no denying that research will show that different consumers will like different things. But, not every item that tests well needs to be included in the advertising.

General Motors implemented a brand management system to guide product development and marketing. Its system has been criticized as producing bland vehicles designed by focus groups. The passion was gone, as models were not created through inspiration, but rather research and testing.

Bob Lutz, brought over from Chrysler, was known as a "car guy," having overseen such innovative models as the Viper, Prowler, and PT Cruiser. He had disbanded the brand management structure and became personally involved in the design process. Mr. Lutz knows the importance of not letting testing override judgment.

Design- and science/technology-based companies particularly struggle with the concept of marketing testing. For a scientifically oriented company, the products it makes on a daily basis are heavily researched. It is testing, not judgment, that will get a new food ingredient approved by the FDA. So, in these environments, research is expected to provide the answers. However, in marketing new ideas, new concepts can seem strange at first to consumers comfortable with the familiar. Consumers may react negatively to something simply because it is very different to them. Solely relying on research will never let those intriguing ideas reach fruition, as they usually require managerial judgment to take a step outside of the safety net. For the research-oriented organization, this is a very uncomfortable move—an uncomfortable move made even more so because judgment might not be supported by that which is held so dear: research.

In design industries, striking the appropriate balance between research and judgment can also be challenging. A creative solution, by its very nature, is different from what currently exists. Consumers may not immediately respond favorably. Kimball Office furniture constantly researches its new furniture concepts. Unfortunately, when a particular element of the design did not test well with consumers, it was all too easy to remove that element of the desk or chair from the overall design. As a result, the design industry would frequently say that although Kimball made great furniture, it was always missing the little details that would make the furniture absolutely fabulous. Perhaps a little bit more reliance on creative judgment and less reliance on research results could take the Kimball line from great to fabulous.

Research has a very strong place in marketing. It provides important insights on which to make solid decisions. However, research in and of itself cannot substitute for judgment. With marketing expertise, supported by research insights, judgment can allow the passion of the brand to emerge and capture the attention of the market it serves.