Building A Brand


Published on

Overview of the process for strategic and tactical execution of brand building. Somewhat centered on a services and ";OpCo" layered organization, so while the vocabulary may change, the process is largely intact.

Building A Brand

  1. 1. Jack Irving! Title of Presentation here Brand Development And Extension Art, Science and Process
  2. 2. Discussion Topics “Brand success is not •  Guiding Principles, Strategies, determined by the Continuum of Choice advertising that is •  Tactical Processes, Rigor, Discipline carried out to promote it, but the overall •  Strategic Processes, Rigor, experience of its Discipline delivery.” •  Next Steps Prof. Phillip Kotler Northwestern University Kellogg School of Business
  3. 3. Guiding Principles •  Maximum leverage, presence and marketability •  Inter-brand selling opportunities maximized •  Consistent messaging, branding, positioning •  Tools and systems implemented to maximize opportunity while minimizing costs •  Best Practices and Practice areas highlighted and supported through organizational and brand rationalization
  4. 4. Types of Strategies •  Market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies –  Leader –  Challenger –  Follower •  Michael Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. –  Product differentiation –  Market Segmentation •  Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: –  Pioneers –  Close followers –  Late followers
  5. 5. Types of Strategies •  Growth strategies - In this scheme we ask the “All great brands are built on question, “How should the firm grow?”. There are a the bedrock of trust derived number of different ways of answering that question, but the most common gives four answers: from customer’s experiences –  Horizontal integration sold under the brand name. –  Vertical integration Brands create customer value –  Diversification –  Intensification because they reduce both the •  Marketing warfare strategies - This scheme draws effort and the risk of buying parallels between marketing strategies and military things, and therefore give strategies. owners an incentive to invest in quality and innovation.” Prof. Patrick Barwise - London Business School
  6. 6. Types of Strategies •  Practice Area –  Defined skill-sets or skills provided •  Vertical Market "What really decides –  Aligned with the client definitions consumers to buy or not to •  Geographic buy is the content of your –  Regional, national, trans-regional, advertising, not its form.” international •  Geographically Sensitive David Ogilvy –  Predominant local/regional brands •  Branded service offerings –  Sub brands, products synonymous with brands
  7. 7. Strategy Guidelines In all the strategic models there are 3 key factors for success. •  The Corporation •  The Corporation needs strategies aiming to maximize the corporation’s strengths relative to the competition in the We should not focus on functional areas that are critical to achieve success in the industry. making our products •  The Customer •  In fierce competition, competitors are likely to be dissecting the and services easy to market in similar ways. Over an extended period of time, the sell, rather, we should effectiveness of a given initial strategic segmentation will tend to decline. In such situations it is useful to pick a small group of focus on making our customers and reexamine what it is that they are really looking services easy to buy. for. •  The Competitors •  Competitor based strategies can be constructed by looking at possible sources of differentiation in functions such as: purchasing, design, engineering, sales and servicing.
  8. 8. Continuum of Choice . . Functional Brands Volume Brands “Excellence Brands” Specialty Brands Value Brands Less Control More Control Most Control Regionally Driven Functionally Driven Market Driven Individualized Brands Complementary Brands Maximum Leverage across brands Less Leverage across brands Some Leverage across brands
  9. 9. How to Choose •  Brand Equity Assessment –  Brand equity does not exist in nature, to be assayed like gold ore in rock. It’s measurement depends on how you define it. •  To Buyers, a brand is a promise •  To financiers, brand equity = retained earnings. •  To marketers, brand equity = retained customers •  There are two general approaches to the concept: a financial approach which is largely concerned with assessing value for the purposes of setting a price for a firm; and a marketing approach, in which brand equity is viewed as a strategic variable to be built and enhanced by advertising, promotion and public relations activities. •  To a marketer, creating and maintaining brand equity can provide for increased profitability, reduced vulnerability to competition, the ability to charge premium prices, and a platform for introducing new to market products carrying the brand name. •  Old, established brands with large cores of loyal customers have substantial equity. Brands that command premium prices have enhanced equity. •  The essential ingredient in brand equity, therefore, is customer loyalty. A brand’s “consumer franchise” is nothing other than the customers who choose it over alternative brands. Their number and frequency of purchase determine its value.
  10. 10. How to Choose •  Market Segmentation Analysis –  Market segmentation is the division of the market or population into subgroups with similar motivations. •  Market Trends –  The upward or downward movements of a market, during a period of time. •  Account Based Marketing (aka Key Account marketing) –  Alignment with your largest and/or most influential customers “Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.” Tom Chappell - Tom’s of Maine
  11. 11. Jack Irving! Title of Presentation here Building a Brand Tactical Rigor, Process and Discipline
  12. 12. Process •  Marketing is a far more systematic, process oriented and diligent discipline than imagined –  Opine, test, review, test, review, change, refine, test… and on and on and on
  13. 13. Build a Brand •  Step 1: Reinforce and align a personality for the company, product or service. –  Drive towards branding that consistently presents the desired reputation, attitudes and behavior. •  Step 2: Build a relationship with your target market that reflects that personality. EVERY communication should consistently reiterate the brand. •  Step 3: Reinforce the relationship and trigger recognition with consistent visual symbols. These include everything from a color scheme and logo to business cards and collateral materials, web.
  14. 14. Brand Principles •  Logo, Brand, Image all are our collective responsibilities –  Ownership is everyone’s role •  Messaging is a function of what our customers tell us –  Messages and messaging are refined over time –  Basic positioning doesn’t change, unless a wholesale change in our basic value proposition occurs •  Execute, relentlessly and consistently with what we have today –  Tools, consistency, behavior, programs –  Utilize the established document templates
  15. 15. Tactical Examples •  Unified web site –  Centralized, internationally driven, all brands link to/ from this site •  Capabilities materials and Collateral Materials •  Standardized color pallet, templates, branding •  Proposal response templates and “best answers” library •  Global Intranet •  Micro-sites for practice areas
  16. 16. Jack Irving! Title of Presentation here Building a Brand Strategic Rigor, Process and Discipline
  17. 17. Positioning •  Step 1: Make Sense In The Context –  Arguments are never made in a vacuum. There are always surrounding competitors trying to make arguments of their own. Your message has to make sense in the context of the category. It has to start with what the marketplace has heard and registered from your competition. Source: Differentiate Or Die: Survival in Our Era of Killer Competition By Jack Trout, Steve Rivkin
  18. 18. Positioning •  Step 2: Find The Differentiating Idea –  To be different is to be not the same. To be unique is to be one of its kind. –  Look for something that separates you from your competitors. The secret to this is understanding that your differentness does not have to be product related. Source: Differentiate Or Die: Survival in Our Era of Killer Competition By Jack Trout, Steve Rivkin
  19. 19. Positioning •  Step 3: Have The Credentials –  There are many ways to set your company or product apart. Let's just say the trick is to find that difference and then use it to set up a benefit for your customer. –  To build a logical argument for your difference, you must have the credentials to support your differentiating idea, to make it real and believable. –  If you have a product difference, then you should be able to demonstrate that difference. The demonstration, in turn, becomes your credentials. Source: Differentiate Or Die: Survival in Our Era of Killer Competition By Jack Trout, Steve Rivkin
  20. 20. Corporate Positioning •  Comprehensive version covers all top line Positioning Statement •  messages and competitive differentiation Multiple versions are created: Mission Company Messages and statement, 5 & 10 words, Boiler Plate, Sound bite Messaging Architecture Market Messages •  Leadership metrics, business model, sales strategy, strategic partnerships, executive team, investors, future direction, corporate values Product/Solution Messages •  Target markets, buyers, geographies, customer problems, etc. •  Benefits of the company; Product options, support, etc. Technology/Tools Messages •  Scope of Technology, program support, flexibility, etc that support solution message
  21. 21. Positioning •  Step 4: Communicate Your Difference –  Just as you can’t keep your light under a basket, you can't keep your difference under wraps. –  If you build a differentiated product, the world will not automatically beat a path to your door. Better products don't win. Better perceptions tend to be the winners. Truth will not win out unless it has some help along the way. –  Every aspect of your communications should reflect your difference. Your advertising. Your brochures. Your Web site. Your sales presentations. Source: Differentiate Or Die: Survival in Our Era of Killer Competition By Jack Trout, Steve Rivkin
  22. 22. Jack Irving! Next Steps The Science Behind the Process
  23. 23. Why this way? Faced with globalization, rapidly advancing technology and dramatic market shifts over the next two years, most CEOs agree that they will have to make major business changes and fundamentally alter their current value chain in order to compete and grow. They know that the answer lies in an expanded innovation strategy—one that includes product, service and operational improvements but also emphasizes business model innovations. Source: Business model innovation—the new route to competitive advantage. IBM Global Services 2006
  24. 24. Why this way? We hear certain terms a lot in professional services: intellectual capital, thought leadership, and knowledge management – impressive but not entirely plain speak. •  Intellectual capital is the (collective) expertise of a professional services firm’s experts (present and past) that embodies the knowledge and methods they use to solve client problems •  Thought leadership is intellectual capital codified and marketed – and (most important) that the market views as superior •  Knowledge management is the process and organization used to capture, package and disseminate intellectual capital and thought leadership. capital and thought leadership Source: Swystun, Jeff W.N., Brand Consistency Redefined, DDB Yellow Paper, 2007 Once you remove the jargon and “consultese,” the main take away is that professional services can articulate and differentiate themselves through the quality, uniqueness and frequency of sharing their knowledge. It simultaneously builds the brand and produces real sale leads.
  25. 25. Why this way? This is a critical observation for professional services. No one goes out daily to shop for a lawyer or advertising agency. Clients purchase the service when they have a real need, and it is the job of marketers to position their firm in the first consideration set (or ideally as the sole choice). From the client’s viewpoint suppliers of services are numerous and largely undifferentiated. So they choose based on indications of quality and expertise. Chrzastek, Jennifer D. and Reid Cyndy, Overcoming the Challenges of Professional Services Marketing, Northwestern University Journal of Integrated Marketing Communications 2006
  26. 26. Multi-channel, Unified Messaging Peter Drucker says that “the aim of marketing is to make selling superfluous.” Based on the high desire to switch, there is going to be an environment of frantic selling because service quality and marketing are obviously not fulfilling their promise. Source: Scurry, Jeff and Wehmeyer, Holly, Strategies for Differentiating the Professional Services Brand, Journal of Integrated Marketing Communications, 2007
  27. 27. Jack Irving! Next Steps Awareness, Presence, Transformation, Engagement, Allegiance
  28. 28. Presence and Awareness •  Global Efforts •  Localized materials •  SEO by OpCo Web Traffic •  Web, Print, Press, –  Division National/International •  Optimized SEO by Shows, Global OpCo Alliances •  Optimized SEO by •  Top-level OpCo Office Overviews •  SEM •  Press –  Local, National, Trade
  29. 29. Transformation and Engagement •  Localized SEM •  Training –  By OpCo, by Office, by –  As a part of the business Web Traffic Practice Area •  PR’s •  Thought Leadership –  WINS –  Speaking, White Papers, –  Advertorials Success Stories, Case •  WINS Studies •  Thought Leadership •  PR’s, advertorials, insertions –  Whitepapers, Industry Index –  Local, National, Trade •  Broad local/regional campaigns •  Localized guerilla marketing campaigns –  Job fairs, employer fairs –  Roadshow thought leadership
  30. 30. Allegiance •  Turning Customers into Advocates –  Satisfaction is an attitude, Loyalty is a behavior –  Provide pertinent product or service information in a regular email newsletter. Web Traffic –  Offer customers an opportunity to leave comments, exchange ideas, and create community: establish a bulletin board or create a blog. –  Give loyal customers a presence by featuring them in a case study or inviting them to write an article about your product or service. –  Provide rich media and members only sections •  Local/regional seminar invites, national/international show passes •  Customer forums, advisory committees, steering committees
  31. 31. Brand Integrity (v) (brând in-teg-rÎtē) The brand is never the face of a company. Faces fib. The brand is the spine.