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The 9 Criteria for Brand Essence (TM)

What every professional should know about branding. Downloadable PDF available here: http://info.cpvinc.com/9-criteria-for-brand-essence

The 9 Criteria for Brand Essence (TM)

1 of 73
9               the




©2009 Conrad, Phillips & Vutech, Inc.
                                        criteria for
                                        brand essence

                                        for more information:
                                        kirk Phillips
                                        kirk@cpvinc.com
                                        614-224-3887
                                        www.cpvinc.com
                                                                                      TM
                                        WhaT eVery ProfessIonal should knoW abouT brandIng
Page

                                                3      definitions

                                        Index   7      Intangibles
                                                14 Perception
                                                17 vs. Commodities
                                                24 Touchpoints
                                                27 responsibility
                                                31 essence
                                                35 The 9 Criteria
                                                59 loyalty
                                                68 advantages

©2009 Conrad, Phillips & Vutech, Inc.
for starters, brands live in your head.




 ©2009 Conrad, Phillips & Vutech, Inc.
how you think + feel about
    a brand is the brand.




                                        © kellogg Company
©2009 Conrad, Phillips & Vutech, Inc.
©®TM                     A brand is not
                                        a name, trademark, logo
                                        package, or product.


©2009 Conrad, Phillips & Vutech, Inc.
A brand is a
                             collection of your thoughts + feelings
                             about your experiences with it.




©2009 Conrad, Phillips & Vutech, Inc.
Ad

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The 9 Criteria for Brand Essence (TM)

  • 1. 9 the ©2009 Conrad, Phillips & Vutech, Inc. criteria for brand essence for more information: kirk Phillips kirk@cpvinc.com 614-224-3887 www.cpvinc.com TM WhaT eVery ProfessIonal should knoW abouT brandIng
  • 2. Page 3 definitions Index 7 Intangibles 14 Perception 17 vs. Commodities 24 Touchpoints 27 responsibility 31 essence 35 The 9 Criteria 59 loyalty 68 advantages ©2009 Conrad, Phillips & Vutech, Inc.
  • 3. for starters, brands live in your head. ©2009 Conrad, Phillips & Vutech, Inc.
  • 4. how you think + feel about a brand is the brand. © kellogg Company ©2009 Conrad, Phillips & Vutech, Inc.
  • 5. ©®TM A brand is not a name, trademark, logo package, or product. ©2009 Conrad, Phillips & Vutech, Inc.
  • 6. A brand is a collection of your thoughts + feelings about your experiences with it. ©2009 Conrad, Phillips & Vutech, Inc.
  • 7. Thoughts and feelings are intangibles. ©2009 Conrad, Phillips & Vutech, Inc.
  • 8. As compared to tangibles... WhICh you Can seetaste or smell hear touch ©2009 Conrad, Phillips & Vutech, Inc.
  • 9. Intangibles you just ... feel ©2009 Conrad, Phillips & Vutech, Inc.
  • 10. “What you make people feel is just as important as what you make.” ~bMW ©2009 Conrad, Phillips & Vutech, Inc.
  • 11. riding a harley-davidson motorcycle feels liberating. sending an important package via fedex feels safe. experiencing disney World with your children feels magical. ©2009 Conrad, Phillips & Vutech, Inc.
  • 12. every day people make hundreds of decisions based more on how they feel than on logic. Think about it -- clothes, cars, restaurants, entertainment -- business purchases too. ©2009 Conrad, Phillips & Vutech, Inc.
  • 13. Examples of tangibles + intangibles Tangible: asics gel-bandito are lightweight. Intangible: asics gel-bandito help me run faster. ©2009 Conrad, Phillips & Vutech, Inc.
  • 14. a formal definition a brand is a product, service, cause or organization with perceived intangible attributes. ©2009 Conrad, Phillips & Vutech, Inc.
  • 15. Intangible attributes must be perceived sounds obvious, but if you don’t perceive the intangibles, it’s not a brand. ©2009 Conrad, Phillips & Vutech, Inc.
  • 16. Perception of intangibles is in the eye of the beholder. depending on the brand, some see ‘em; some don’t. ©2009 Conrad, Phillips & Vutech, Inc.
  • 17. When you don’t perceive an intangible, it’s a commodity to you. ©2009 Conrad, Phillips & Vutech, Inc.
  • 18. for ExAmplE you say, “tomato.” I say, “fox’s fine gourmet ketchup.” To you, ketchup is a commodity. To me, there’s a difference in ketchup brands. and vice versa, depending upon the category. ©2009 Conrad, Phillips & Vutech, Inc.
  • 19. brand categories brand categories people care about most (among 440 brands surveyed): luxury cosmetics kids’ breakfast cereals Wireless handsets luxury moisturizing skin care products discount retail stores ~Brand Keys, 2009 Loyalty Engagement Index ©2009 Conrad, Phillips & Vutech, Inc.
  • 20. commodity categories brand categories people care about least (among 440 brands surveyed): banks Insurance soft drinks (regular) Casual dining restaurants bottled water ~Brand Keys, 2009 Loyalty Engagement Index ©2009 Conrad, Phillips & Vutech, Inc.
  • 21. commodity a product, service, cause or organization with no perceived intangible attributes. ©2009 Conrad, Phillips & Vutech, Inc.
  • 22. on Wall street, commodities of the same type are interchangeable with each other. soybeans are soybeans. (Unless you perceive a difference.) ©2009 Conrad, Phillips & Vutech, Inc.
  • 23. brand vs commodity Brands compete on their intangible attributes. Commodities compete on price or convenience. ©2009 Conrad, Phillips & Vutech, Inc.
  • 24. how do brands get inside your head? Exposure Experiences Through exposure to Through actual experiences messages about the brand with the brand ©2009 Conrad, Phillips & Vutech, Inc.
  • 25. Experiences = Touchpoints Touchpoint is marketing jargon for a moment (time and place) when the brand comes in contact with the audience. there are lots of them ©2009 Conrad, Phillips & Vutech, Inc.
  • 26. Even more than you see here. NG BYI G TIN LOB RKE RSHIPS PROMOTIONS T MEN MA RE TU IN OR RA SPONSO ERN TE RN ITE TDO IA PA ET EV ING GOV ED SL CK M EN AR M OU S AG LE KE SS RIE TS NEW SA TIN A O T S ST M RECT MEN OR G L ACE IES DI CT P COMPA NY SPEA PR ODU KERS N CE VEHICLES ENDORSEMENTS AU DIE COMPA NY OFFIC RMS SAL ES U NIFO LE CO ES O SA S NT UTL F N AC ETS T O TIO CO MPA ETIN E TW CO IN WS IC G WEB SITE MAIL N PO A ITH IC RV T TA T SHO UN CT SE CO P P M M ARK DIRECT ER W NY M PA IT E OM CO NY TRAD H EM CO R PE SA ST TO RS RR TEL LE ON CU ES S ES V NE PE IN ITH PO L O PL ND TW E EN AC CE NT CO ©2009 Conrad, Phillips & Vutech, Inc.
  • 27. Who affects these moments of brand experience? every single person in the organization contributes to shaping the audience’s experiences with the brand — even if they don’t come in contact with the audience. ©2009 Conrad, Phillips & Vutech, Inc.
  • 28. likewise, every dollar spent and every decision made ... impacts the audience’s experiences with the brand. ©2009 Conrad, Phillips & Vutech, Inc.
  • 29. for this reason, branding is not solely a marketing function. It is an organizational function. ©2009 Conrad, Phillips & Vutech, Inc.
  • 30. a brand will not be strong unless the entire organization understands and embraces branding, starting at the top. ©2009 Conrad, Phillips & Vutech, Inc.
  • 31. every strong brand stands for something — one differentiating attribute. some call it the brand essence. ©2009 Conrad, Phillips & Vutech, Inc.
  • 32. soul heart mantra promise signature strength others call it core strength core attribute the brand... description personality differentiator experience connection persona life force uniqueness individuality meaning central nature proposition and so on ... ©2009 Conrad, Phillips & Vutech, Inc.
  • 33. don’t worry about the semantics. It’s the concept that matters. ©2009 Conrad, Phillips & Vutech, Inc.
  • 34. The brand essence is the single intangible attribute that differentiates the brand from competitive brands as perceived by the audience. ©2009 Conrad, Phillips & Vutech, Inc.
  • 35. 9 the ©2009 Conrad, Phillips & Vutech, Inc. criteria for brand essence TM
  • 36. the criteria for brand essence TM 1. Unique The essence of a brand is how it is different from competitors in the same category. for ExAmplE If apple (and its products) are friendly and approachable, then it is claiming that its competitors (PCs, etc.) are not. ©2009 Conrad, Phillips & Vutech, Inc.
  • 37. the criteria for brand essence TM 1. Unique People make decisions based upon how things are unique, not how they are the same. ©2009 Conrad, Phillips & Vutech, Inc.
  • 38. the criteria for brand essence TM 1. Unique T h I n g s y o U W I l l n E v E r h E A r s o m E o n E s A y: “I picked it because it was exactly like every other car I test-drove.” “We bought it because it was exactly like every other house on the street.” “I married him because he was exactly like every other guy I dated.” ©2009 Conrad, Phillips & Vutech, Inc.
  • 39. the criteria for brand essence TM 1. Unique the essence... gives the audience the primary reason to choose a brand over competitors’ brands. ©2009 Conrad, Phillips & Vutech, Inc.
  • 40. the criteria for brand essence TM 1. Unique be unique own a single idea. ©2009 Conrad, Phillips & Vutech, Inc.
  • 41. the criteria for brand essence TM 1. Unique ExAmplEs of brAnd EssEncE: harley-davidson = liberating 3M = Innovative Visa = everywhere Jeep = adventurous ©2009 Conrad, Phillips & Vutech, Inc.
  • 42. the criteria for brand essence TM 1. Unique brand positioning is... the relative differences between brands as perceived by the audience. ©2009 Conrad, Phillips & Vutech, Inc.
  • 43. the criteria for brand essence TM 1. Unique E x A m p l E s o f AU To m oT I v E b r A n d p o s I T I o n s Toyota Prius = fuel-efficient hyundai = affordable Porsche = sporty lexus = luxury lamborghini = exotic ©2009 Conrad, Phillips & Vutech, Inc.
  • 44. the criteria for brand essence TM 2. Intangible one is no more independent on a harley-davidson motorcycle than another brand, but somehow one feels like it. Tap into what the audience feels. ©2009 Conrad, Phillips & Vutech, Inc.
  • 45. the criteria for brand essence TM 3. single-minded one word to describe the essence is ideal. Maybe two. More than two words indicates that the brand has no focus. because a brand (by design) delivers a unique experience, having no focus makes for a weak brand. ©2009 Conrad, Phillips & Vutech, Inc.
  • 46. the criteria for brand essence TM 3. single-minded “a brand becomes stronger ... when you narrow its focus.” ~Ries & Ries, The 22 Immutable Laws Of Branding ©2009 Conrad, Phillips & Vutech, Inc.
  • 47. the criteria for brand essence TM 4. Experiential The essence captures what the audience feels during an experience with the brand. ExAmplE “driving a Volvo makes me feel that my family is safe.” © Volvo Trademark holding ab ©2009 Conrad, Phillips & Vutech, Inc. and/or Volvo Cars
  • 48. the criteria for brand essence TM 5. meaningful There is no point in identifying an essence that is irrelevant to the audience. essences that don’t connect are the reason behind many failed brands. research it. ©2009 Conrad, Phillips & Vutech, Inc.
  • 49. the criteria for brand essence TM 6. consistently delivered If the proposed essence is not consistently experienced then it isn’t the essence. ExAmplE If magical is disney’s essence, then every trip to disney World must deliver on that promise. © Walt disney Company ©2009 Conrad, Phillips & Vutech, Inc.
  • 50. the criteria for brand essence TM 6. consistently delivered Consistency = “no surprises” ~ People seek comfort, stability, and predictability. ~ The success of all chains is based upon consistency of experience. (Think Mcdonald’s.) ~ Consistency of experience is the basis for brand loyalty. © Mcdonald’s Corporation ©2009 Conrad, Phillips & Vutech, Inc.
  • 51. the criteria for brand essence TM 6. consistently delivered former holiday Inn tagline: “The best surprise is no surprise” © Ihg ©2009 Conrad, Phillips & Vutech, Inc.
  • 52. the criteria for brand essence TM 6. consistently delivered Maintaining consistency ... is a major challenge for most organizations. Can your organization deliver? ©2009 Conrad, Phillips & Vutech, Inc.
  • 53. the criteria for brand essence TM 6. consistently delivered “one of the few things worse than no promise ... is a broken one.” ~Scott Davis, Brandweek ©2009 Conrad, Phillips & Vutech, Inc.
  • 54. the criteria for brand essence TM 7. Authentic The essence must be credible or the brand will be rejected. To find out what the audience believes about your brand, ask them. (It’s okay for the brand essence to be aspirational, but only if your audience believes you can deliver on the promise.) ©2009 Conrad, Phillips & Vutech, Inc.
  • 55. the criteria for brand essence TM 8. sustainable a brand’s essence is baked in. It doesn’t change. Ever. ©2009 Conrad, Phillips & Vutech, Inc.
  • 56. the criteria for brand essence TM 9. scalable Will the essence work for brand extensions? Will it work as the brand’s opportunity grows? ©2009 Conrad, Phillips & Vutech, Inc.
  • 57. 9 the ©2009 Conrad, Phillips & Vutech, Inc. criteria for brand essence 1. Unique 2. Intangible 3. single-minded 4. Experiential 5. meaningful TM 6. consistently delivered 7. Authentic 8. sustainable 9. scalable
  • 58. branding, then, is... defining, promising, and delivering a unique brand experience consistently. branding distinguishes the brand from its competitors and builds preference. ©2009 Conrad, Phillips & Vutech, Inc.
  • 59. roI of branding branding generates trial + loyalty. Trial loyalty (trying the brand) results results from having from being intrigued a series of consistent, by the promise of the singular and favorable brand experience. brand experiences. ©2009 Conrad, Phillips & Vutech, Inc.
  • 60. The ultimate goal of branding is loyalty. ©2009 Conrad, Phillips & Vutech, Inc.
  • 61. a loyal audience seeks repeat brand experiences. and recommends the brand to others. ©2009 Conrad, Phillips & Vutech, Inc.
  • 62. brand brand loyalty drives up to 70% of all purchase loyalty decisions. ~ Kuczmarski & Associates ©2009 Conrad, Phillips & Vutech, Inc.
  • 63. loyal customers, on average, brand are willing to pay a 20% loyalty premium for their brand of choice. ~ Kuczmarski & Associates ©2009 Conrad, Phillips & Vutech, Inc.
  • 64. unlike branding, promotion- based marketing is often centered on pricing strategies and aims for short-term results. ©2009 Conrad, Phillips & Vutech, Inc.
  • 65. branding generates long-term results, but requires commitment to a long-term strategy. ©2009 Conrad, Phillips & Vutech, Inc.
  • 66. “brands are not built overnight. success is measured in decades, not years.” ~Ries & Ries, The 22 Immutable Laws Of Branding ©2009 Conrad, Phillips & Vutech, Inc.
  • 67. loyalty brand loyalty Marketing reinforcement beliefs reinforcement attitudes Trial expectations awareness time ©1994 Coalition for Brand Equity ©2009 Conrad, Phillips & Vutech, Inc.
  • 68. a strong brand is... 1. cost-effective to sustain for ExAmplE Maytag’s brand essence of dependability as symbolized by “the lonely repairman” campaign has been running for over 40 years. ©2009 Conrad, Phillips & Vutech, Inc.
  • 69. a strong brand is... 2. a foundation for new launches for ExAmplE ~ Tide extended its brand within its category, adding Tide liquids, Tide To go, etc. ~ The gap spun off sub-brands to serve different audiences through babygap, gapkids, etc. ~ disney moved into new categories with disney cruises, retail stores, broadway shows, etc. ©2009 Conrad, Phillips & Vutech, Inc.
  • 70. a strong brand is... 3. an ideal partner for co-branding opportunities for ExAmplE ~ Intel positioned itself as the preferred microchip for all brands of personal computers through its “Intel Inside”campaign. ~ one of edie’s loaded frozen dairy desserts features nestlé butterfinger candy pieces. ©2009 Conrad, Phillips & Vutech, Inc.
  • 71. a strong brand is... 4. a barrier to competition owning a position in the minds of the audience often discourages competitors from head-on competition. for ExAmplE ~ Imagine the difficulty in trying to replace iPhone as the smartphone with the most applications. ©2009 Conrad, Phillips & Vutech, Inc.
  • 72. 9 the ©2009 Conrad, Phillips & Vutech, Inc. criteria for brand essence TM will help define the brand experience your organization seeks to deliver to your audience.
  • 73. 9 the ©2009 Conrad, Phillips & Vutech, Inc. criteria for brand essence for more information: kirk Phillips kirk@cpvinc.com 614-224-3887 www.cpvinc.com TM WhaT eVery ProfessIonal should knoW abouT brandIng