Canadian Marketing Blog

Top Two Branding Blunders

Why oh why do companies fall into these branding traps that wind up costing them a ton of cash for virtually no return or worse yet, actually cost dollars in lost revenue. There are two big branding blunders (I’m sure there are more than that, but these are the ones that immediately come to mind) to be aware of if you are considering rebranding.

1: Fixing what isn’t broken

Change is not always good; there is something to be said for the familiar especially in tumultuous times. Take the “new look” of Tropicana orange juice. A US 35 million dollar blunder. Yes, that’s right, a 35 million dollar blunder (and that’s only the first 2 months not the final tally). Thanks to the new simplified look of Tropicana, consumers mistook them for a "bargain basement” no name brand and walked right on by and purchased a competitor’s orange juice. The Tropicana look was not broken. They were not losing market share. There is something to be said for the comfort of a familiar logo. That orange with the straw sticking out of it and dark green lettering for me represents premium, freshly squeezed OJ and it makes me feel good. And that’s what matters most your customer’s perception. Once you have lost a customer it’s tough to get them back. Good luck on that one Tropicana.

2: Fixing (aka changing) your brand/logo before you fix your product and/or service

We’ve all seen it – a new look, a new logo, an onslaught of advertising – all telling you we’re new, we’re great, come and do business with us. There’s just one problem – outside you’ve changed, you’re wearing a new suit so to speak but inside you’re exactly the same. Now I feel like I’ve been duped, you’re making a promise that you have no intention of delivering on or at least not in any immediate time frame. A certain Telco comes to mind that shall remain nameless. A new CEO comes in, anxious to make his mark and show he’s different, he immediately rebrands. Ahh I’m not quite sure how to tell you this but – you’re wrong – as a customer now I feel betrayed. I know nothing has changed, your product and service offering is status quo. So let me get this right, you’ve spent millions of dollars changing your letterhead, repainting all of your trucks, redoing your web-site and all of your multimedia and yet as far as I’m concerned you haven’t spent a dime to improve your customer service that quite frankly I think sucks. A word to the wise – improve your offering/service first and once you have it right and you’ve tested to make sure it’s right then and only then should you present a new face (aka logo) to the world.

Coca cola is a one hundred and twenty three year old company and its logo hasn’t changed. And by the way, they are still the dominant soft drink worldwide. Perhaps there is something to be said for deciding what you stand for and then delivering on it, consistently year after year. It’s not glamorous but it pays the bills and in fact chugs out a pretty decent profit. And at the end of the day isn’t that why we’re all in business?

Hybridization -- And the Changing Landscape of B2B Branding (the hidden challenges)

About a year ago I upgraded my laptop. My search for a new model started at the Dell website but ended up at the company’s booth at the consumer home show (somewhere between the condiments and electronic brooms) and ended at the Dell kiosk at Sherway Gardens shopping mall. What’s Dell to do with customers like me who look for a serious business computer at shopping malls and consumer home shows – but that, unfortunately, is the essence of “hybridization”.

The “fruit” wars -- iPhone versus Blackberry – last winter the New York Times featured a run of full back page ads for the iPhone in the business section – targeted at business customers and focussing on the iPhone’s powerful access to Internet business applications. RIM, on the other hand, has claimed for a while that the large majority of “new” Blackberry customers are consumers (not traditional business and government users).
In addition to overlapping into each other’s “territory”, RIM and Apple also appear to have different marketing approaches: Apple basically markets ONE smartphone model (the iPhone), tends to focus on a myriad of applications.

By comparison, the Blackberry comes in several models (at last count there are nine featured on its web site excluding half a dozen versions for each of the Pearl and Curve).

Dell, Apple and RIM are all basically marketing “hybrid” products – a trend initiated mostly by B2B companies expanding into the consumer world. Even companies that deal mostly with business suppliers and customers are becoming more and more conscious of end users and consumers.

Hybrid products (and companies) have a unique set of challenges -- how to match different products/models with specific target audiences; how to accommodate consumer versus business audiences and differing (and sometimes incompatible) needs and requirements; how to prioritize all of these issues.

“Hybridization” is more complicated than it appears:

• About one fifth (22%) of the Top 100 Interbrand brands can be categorized as hybrids and outnumber the “pure” B2B brands (8%). But the fact is that many “pure” business brands don’t have a hope of making it to the top of anybody’s list. The top hybrid brands spend an enormous amount of money ($$$) on both consumer and business marketing which substantially increases their brand profile (and equity).

• “B2B companies shouldn’t try to become consumer brands... but they should seek to attain the maximum value possible within their industry (from the Hidden Wealth of B2B Brands)”. Pure B2B brands consistently achieve lower brand equity scores – in a recent ranking by Corebrand the strongest “pure” B2B brand was Caterpillar with an equity rating of 12% (versus 18%/19% for hybrids like Fedex and UPS); the next highest “pure” B2B brand was Emerson with an equity measure of only 5%.

• B2B versus B2C – these represent two very very different buying, marketing and branding processes. The problem is that the business side of these processes is not well understood. Identifying and profiling business target audiences is a complicated process: there can be several audiences within a client company (from C-levels to buyers to end users); there are secondary influencers (external to the business customer but either directly or peripherally involved).

• B2B trumps B2C – business suppliers, customers and intermediaries often have excellent “insight” into end users and consumers. Business intermediaries should be asked to provide feedback with respect to new products, services or marketing strategies before they are rolled out to consumers.

• “I find that there is currently a blurring and fusing of B2C and B2B research... and there is less of a desire to identify B2B and B2C research as separate or different disciplines” – these are the words of Phyllis Macfarlane a longstanding member of the U.K. B2B research community. B2B research has the same issues as B2B marketing – and also requires a better understanding of the business buying, marketing and branding processes.

What is Success for my Mobile Messaging Campaign?

In many ways, mobile can be evaluated similarly to any other marketing initiative. Generally, every marketing campaign is evaluated in terms of efficiency (getting value for invested money) and effectiveness (achieving the objective set for the campaign). In this sense, mobile is no different. We must determine how well the program did when factoring in cost and measuring against objectives – the two evaluated inclusively and exclusively.

However, the evaluation of a mobile campaign is no easy task. It must involve a variety of quantitative and qualitative measurements that assess the program’s efficiency and effectiveness. Mobile is moving away from the early adopter stage to the innovation stage and this shift brings added pressure to demonstrate tangible ROI. These measurements include, but are not limited to:

Quantitative Analysis

• Cost per – Any of the below measures, but forth most, cost per a unique user, per an interaction or in terms of harder ROI cost per acquisition.
• Delivery Measures – Number of messages sent, number delivered, number failed delivery, attrition rates.
• User Messages – Number of unique users, number of interactions, number of repeat users, frequency of interaction, time of users’ interaction, from where users interact, number of replies, number of stop messages, number of inquiries.
• Click Through Rates – When URL links are included.
• Purchase Tracking – Number of people to redeem a coupon or make a purchase.

The metrics used should be determined by the campaign objective and its primary mechanics. For example, if it were a text to win campaign, the number of unique users and total entrants would be the primary value. For a program where it asks users to answer a series of questions through SMS, the same metrics would apply, but equally important would be how much interaction each user had with the brand – i.e. the average user answered three questions.

One of the key benefits of mobile marketing is the ability to track the campaign results immediately and across a wide range of available data. These numbers are a science. They are exact and can be easily reported.

Qualitative

Conversely, a qualitative review is not a science. It is based on an evaluation of the following:

• User Interaction – The amount of time the user interacts.
• User Engagement – The depth of user interaction – how engaged is the user?
• Brand Connection – Link between the brand, campaign execution, and end goal.
• Marketing Mix Integration – How effectively is mobile integrated into the mix?
• Surveys and Awareness tracking – Test and control groups are used to test brand saliency as a result of incorporating mobile.

Factors Influencing Success

After the above analysis, it’s important to review the below factors. These factors will greatly influence the result of the program, not necessarily for better or worse, but expectations must be set based on them. For example, in terms of value proposition, you’re more likely to get more entrants if there’s a car prize versus a t-shirt prize, or if the brand is Bud Light Lime or Steelback.

• Value proposition – win a car or a t-shirt, receive great alerts, entertainment value, etc.
• The brand – premium brands vs. value brands.
• What is required of the user – text a keyword versus answering multiple questions.
• Where is the media with the call-to-action – in an area of downtime or in an active, hustling environment.
• Quality of the execution – street teams, messaging, creative, etc.
• Emphasis of the Mobile call-to-action.

Deciphering the Results

Despite having access to a vast array of accurate and immediate metrics, the application of those metrics are inexact and it’s difficult to benchmark against other campaigns. In traditional media we can easily track results – GRPs, impressions, recall, brand awareness, etc. - however, mobile marketing is not at this point, nor will it be in the future, as the salient value is user interaction and what it can accomplish, something that can not be easily tracked. If anything, mobile marketing is a tool to track the effectiveness of traditional marketing techniques as mobile marketing often complements a campaign, not is the campaign.

Here’s what I mean: Take for example a billboard in downtown Toronto. I am a marketer for a car company and I want to advertise on this billboard for two weeks. My objective is to sell more cars. The billboard goes up, I’m told the weight is 90 GRPs with 15k of daily traffic. Without complex and costly statistical analysis, the billboard’s impact is unquantifiable, and even then nearly impossible to extrapolate.

Take the same situation, but add in a mobile component. As a marketer, we know to sell cars we must push consumers to a dealership, and ultimately try the car. Therefore, messaging will push users to text testdrive to 12345 to schedule a test drive. On average, 10 people text in a day, two of which schedule a test drive. Therefore, we know the conversion from billboard to dealership (not including any residual benefit of long-term marketing initiatives on branding). At first glance, by just comparing the numbers, this would seem like a poor performance, however in reality this is quite successful; however, this can only be determined by evaluating qualitatively as well. Beyond metrics, some of these qualitative are:

• Immediate interaction - Consumers do not need to call a number to engage the brand, they can do it right there on their phone.
• Qualified users – Only those consumers that are interested in the brand will text in. It’s like a two-stage program: Nearly all passer-bys will see the billboard, but to take it a step further, those interested that actually respond to the billboard can engage the brand.
• Not a benefit, but it is very important to keep in mind this is a high value, expensive brand, advertised in a location with no downtime, to an untargeted audience.
• Opportunity for continued dialogue – garnering an opt-in from a consumer in any form is a big win, doing so via mobile is a HUGE win. Assuming your brand has a communication plan in place you know have a direct feed with your consumers anytime and anywhere. Start thinking about EXCLUSIVITY, RELEVANCE and TIMELINESS to your messaging strategy.

The general idea is that in mobile marketing, the qualitative analysis must be evaluated in tandem with the quantitative results, while considering the factors; only together can they provide a complete picture of the program’s success.

Getting Started with Your Data

I recently wrote an article that attempts to depict how one would get started in developing a measurement framework within an organization. While I acknowledge that there are a number of marketing/business issues that need to be addressed when beginning such a process, the primary focus of my article deals with data issues. My philosophy in tackling data analytics projects is, first recognize what you want to do from a business perspective, and then identify a data strategy that accomplishes those business goals. At the heart of any analytics exercise, it is all about the data and what can be used to meaningfully solve business problems.

As practitioners, compromises are sometimes made in terms of the data that is both accessible and available for analysis. Yet I would argue that even if compromise is necessary, it is still better than doing nothing.

I would certainly invite your comments concerning experiences in building measurement framework solutions that are clearly sub-optimal given a limited data environment.

Posted by Richard Boire, Partner, Boire Filler Group - also Chair of CMA’s Marketing Technology and Database Intelligence Council

Sales - It is all about Relationships

I have lots of friends. I have lots of acquaintances. I have lots of people I know and lots of people know me. Friendship has various degrees. Some friends I can stop in on with no notice. Some I can call at 2 in the morning. Most though are more distant than that. We just know each other.

People buy from people they know. The better they know the person, the more they are apt to buy from them. The degree of closeness has to do with the volume and frequency of interactions and how "personal" those interactions were. And memories fade in time.

For example, if I am having lunch with someone who sells insurance, and I am in the market for insurance, I am likely to engage with that person. Six months from now, I may not remember or I have had lots of time to come in contact with other insurance people.

If I played squash every week for a year with that same insurance person, I would be more likely to call him/her - even 6 months after we stopped playing squash.

Or if I really hit it off with the person, I would also call. Usually this quality has to do with sharing personal things - the real you. That's the quality of the interaction.

And the closeness tends to be reinforced through different interactions over time. The lunch, the tea, the phone call, the meeting, the note, the email etc. Different types of touches over time.

Selling often has to do with the degree of closeness. And degree of closeness has to do with the quantity and quality of the time and contact. So to sell more, just spend more quality time with all your prospects. Simple - not really. We all have limited time.

One way to solve this is through marketing. One to many. One message goes to hundreds or thousands of people. And one of the best ways to "make marketing personal" is social media. Blogging, Linkedin, Facebook, Twitter etc are all ways people connect and stay in touch. And in most social media, it is appropriate to share part of you - the real you.

Social media can also be the least expensive ways to stay connected. It does not beat personal 1:1 time but it can be an efficient way to stay in touch and stay top of mind.

Facebook and the 300 Million Number

You may have heard the recent news ,the impressive reveal that Facebook now has a staggering 300 Million users worldwide. Even more impressive is the news that they are cash flow positive, with a 2009 revenue forecast of $500 Million.
Wow. 500 million in revenue from a business model that is consistently under heavy scrutiny is not bad, or is it?

What I mean by this is that Facebook makes money selling adspace and sponsorships, just like any other online destination. The biggest selling points for Facebook are the sheer scale of its users and the stickiness of the site.

But what does this mean for marketers if Facebook is making money? To me it reinforces the widely accepted belief that many of us are still struggling with how to integrate the powerful reaching social media phenomena into our plans.

Buying an ad on Facebook and contributing to their positive cashflow is not a viable tactic to engage in social media. So if you have been feeding the beast in this manner, please stop. Here is some research that discusses the impact of ads on social networking sites vs. other sites. Although the data is from Nov 2008, the findings are widely accepted.

It is important for most companies to be involved in social media but the level of engagement depends on the relevance of the various platforms to your target and the reason why you would like to be involved in the first place. Are you looking to drive sales? Are you looking to learn more about your potential customers? Are you looking to interact with your current customers? These are all questions that will help guide your strategy, which in the end should be tied to a business objective.

One must avoid the GMOOT at all costs (see The Return of The Brand as King). Dove Canada is a great example of how social media, in particular Facebook can be leveraged. Read some of the comments that are posted by some of the 2,309 fans - who wouldn’t want their brand to have these fans…

Marketing in Recessionary Times: a Dialogue Based on Four Themes

Our firm conducted research over the past 5 months via an on-line survey and a moderated roundtable with industry experts with a focus on the topic marketing in a recession; what does it take to win. Over the next few weeks I will share each of the four themes that we uncovered as input to CMA's Marketing Blog with the hope of stimulating more dialogue on this topic.

The four marketing themes are: (1) Trust & Community Building; (2) Marketing Innovation; (3) Canada’s Emergence as a Marketing Leader and (4) Need for Integrated Marketing Communications.

1. Trust & Community Building

As a result of the US banking failure and collapse of storied companies like GM and Nortel, a shift has occurred in today’s marketing landscape. Consumers are becoming increasingly skeptical of traditional ‘push’ marketing and as such, brands are increasingly focusing on fostering a sense of trust with consumer through ‘community building’.

There has been a value shift in the eyes of the consumer; consumers are placing additional value in brands they trust in response to increased anxiety and fear caused by recent financial collapses. Looking at drivers of demand amongst financial institution consumers, there has been a shift to ‘trust’ from ‘confidence and convenience’. Traditional media will not address this shift in consumer need, where as having more direct conversations/interactions will.

Trust can be built multiple ways. The more traditional method used is to maximize share of voice (SOV) using mass media: this visibility confirms brand strength and makes consumers more accustomed to your brand. However, brands are now beginning to incorporate ‘community building’ into their marketing communications to give consumers (who are passionate about the brand/cause) the emotional brand connection and experience of community. This tactic will reach a more targeted consumer base and could include current customers, prospects, and influencers. The need for integrated marketing communications will be examined in further detail later in this Blog series.

Community building can foster trust through the following strategies/tactics:

1. Allowing consumers to connect directly through branded programs.
For example, The Running Room invites customers to participate in company-led runs. This allows running enthusiasts (a core customer target) to connect directly and develop a sense of community – anchored by the brand. Dove’s ‘Real beauty campaign’ fostered a sense of community at all levels, while benefiting from the fame attached to the brand.

2. Being transparent allowing two-way communications.
For example, the Globe and Mail has recently added a two-way dialogue feature to its online offering allowing readers to interact directly with editorial writers. In another example, the CEO of a wireless company calls disengaged customers to understand the reasons for their dissatisfaction.

3. Consumer co-creation. A few best practices from industry experts:

• It is easier for strong passion brands (Lululemon, Starbucks, charities, etc.) to get consumer involvement (these are truly passionate customers) and the opportunity to contribute to a brand they love in a community of like-minded individuals is generally incentive enough to participate.
• When launching a new community, the optimal strategy is usually integrate the new community into established communities (for example, Facebook). This leverages existing communities and experts agree this results in higher consumer trust/participation that building a separate community.

What has your experience been in terms of the increasing popular strategy of Community Building and what Tactics have you found most sincere and successful?

Obsolete Marketing

I’m obsessed with anything CBC Radio; well specifically I’m obsessed with Metro Morning with Andy Barrie and Q: The Podcast with Jian Ghomeshi.

On September 17th, Jian had Anna Jane Grossman on the program. Anna has written, Obsolete: An Encyclopedia of Once-Common Things Passing Us By. It is a book about some of the things and practices that have become obsolete lately. Simple things like manual car windows, dial-up modems, and plaster casts (the ones that let you live in infamy on the broken arm of a friend), and funny things like body hair, phone sex (now it’s all about sex-texting), and afternoon specials (the TV after school specials that is...).

The interview between Anna and Jian got me thinking. What are some of the things and practices that have become obsolete in marketing?

One that comes to my mind is the pop-up ad. Pop-ads are useless and annoying little things; they appear as if from nowhere when you least expect it. They were initially conceived as a clever way to attract web surfers to a specific web address, or a sneaky way to capture email addresses. It would seem to me that the only thing pop-up ads do are to slow down the page being loaded and annoy users using a page they want to be on. They are so annoying that Internet users have the option to block pop-up ads.

Can you think of any other marketing tools/practices that are now obsolete?