Brand Management

    The best worst job in America.

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    One of the most exciting yet scariest jobs in the world is probably CMO of the Magazine Publishers of America.  The MPA is an association funded by competing print and online properties that fight one another harder than the GOP and Dems at holiday time.  To say the magazine business is changing would be an understatement.  But to a great extent, it is also staying the same.  All that’s changing is what’s delivered and how.  Brilliant photo journalism is still required but now must include video.  Great writing, analysis and thought leadership still win that day – but there is a lot more competition (bloggers) and algorithmic noise.

    Readers twitch more today than ever before, requiring magazine publishers to anchor them to their sites.  And advertises, the lifeblood of the magazine business, are becoming enamored of publishing and content creation. And don’t forget magazines are made from trees, not a particularly forward thinking resource. (Though probably more renewable than circuit boards.)

    Herding the powerful magazine cats out of the marble hallway is a challenge. It requires someone who has more power than the cats themselves. Someone who commands respect. Probably not an ink-stained patriarch, but someone with mad vision. Someone who can see beyond the dashboard. Who the Lewis and Clark is?   If you thought being CEO of Yahoo was tough, keep your eyes on this search. Peace.

    Back end developers.

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    An important target for What’s the Idea? is the technology company. I’ve worked with AT&T on the digital applications side, helped launch Lucent (now Alcatel-Lucent), wrote a lauded brand strategy for ZDNet and have helped scads of mid-size tech companies and start-ups.  Beyond experience, why tech companies are so important is the fact that they don’t get branding. The best of the lot are engineer-driven and see brand and marketing nerds are empty jeans.

    So for you tech engineers and entrepreneurs, here’s a simple metaphor: Brand planners are like back end developers. If the back end is the hardware and engine and the front end the software and user interface (UI), then we brand planners work the former. The back end creates the organizing principle that determines which 1s and 0s to turn on and off.  The brand plan creates and governs the same and the pathways.  It’s simple really.  Perhaps marketers have tried to make it sound so complicated with all our markobabble and talk about silly things like transparency, activation and, and, and.  But a brand plan is one meaningful strategy and 3 governing principles. On or off.  

    The front end in the metaphor  — what users see — is advertising, newsletters, digital content, acquisition programs.  Without good governance, these things show up on a corporate homepage as 38 buttons.  What I love about people like Robert Scoble, Brian Solis, Steve Rubel, Peter Kim, Bob Gilbreath and Jeff Dachis to a degree, is they get the brand “back end” and, so, their front ends are meaningful. People understand them.

    Engineers need to hear and live this lesson. If they do, they’ll see the market through infrared goggles. Peace!

    Loss On Investment. (Pt. 2)

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    I wrote a piece last week about LOI or loss on investment. There used to be only a couple of ways for brands to let consumer’s down: A bad product experience — we all know how that can get tongues wagging — and poor or offensive marketing communication, e.g., an ad. The latter rarely happens because professionals are developing those and approving those. Also, ads are often researched.

    Two ways to lose brand investment used to be the case, not today. Brands use way move channels to reach consumers. A poorly laid out website can tork off consumers. A slow or unfulfilling ecommerce experience. Some poorly thought out photos on Facebook accompanied by irate online comments. Digital and social have given consumers and poorly trained employees new hand in communications and it can dilute brand value. Undoing the good work.

    Last week a friend emailed me having received a disingenuous email from Amazon. A huge fan who has fed lots of money into the Kindle engine she was pissed because Amazon asked her to take a survey about Kindle usage. She happily agreed but then learned they were just trying to upsell her a Kindle Fire. To add insult, they asked lots of inane questions they should have known having so much data on her. Her rant to me was paragraphs. She’ll get over it, but a petal has fallen off that rose.

    The problem in brand management today is twofold. First, you actually have to have a brand strategy to manage. (One idea and three proof planks.) And second, you have to manage vigorously…with all partners, vendors, employees and publics. Find your brand strategy and feed it.

    Peace.

     

    Freehand Messaging.

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    Freehand is defined thusly:

    adjective

    1. drawn or executed by hand without guiding instruments, measurements, or other aids: a freehand map.

    adverb

    2. in a freehand manner: to draw freehand.

    When CMOs, senior marketers and their agencies say “consumers own brands,” it makes for good copy but bad management. Consumers buy products, weighing in with their pocketbooks as to taste, preference and price requirements, but they do not own the brands.  Ad, direct and digital agencies have known this for years.  It is what creates the conflict between client and agency.  Clients want the work they want and agencies want the work they want.  Clients own the brands.

    Freehand messaging is what happens when you turn your brand over to consumers to manage.  The conversation, then, can take any course it wants. Good, bad, indifferent. If I am working my ass off managing a craft cookie brand, around attributes of “naturally moist,” “healthier ingredients” and “complex flavors” — on a shoestring budget — I want to make sure people are talking about those things…the things that sell my cookies. Not cookie ephemera. When the consumer discussion is not guided by brand managers and agencies, the discussion is freehand. And marketers are not doing their job. Every dollar spent by a marketer needs to result in a deposit in the brand bank. Withdrawals are the Antichrist. Stop the freehand by managing it! Peace.

    Payback is a serious hurtin’.

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    Chrysler paid back over $7B in loans to the U.S. government yesterday.  Did they just have than money laying around?  That s lot of Benjamins.  Did they just borrow if from a sheik?  No they earned it. Blocking and tackling my friends.  Rekindling old loyalties me droogies.  Fixing the product, getting the right new people in place and fixing the message. When Daimler moved into the Chrysler brand, they tried to do all these things but couldn’t.  Fiat and the U.S. marketing stewards did.  And now they have da monies.

    Good blocking and tackling.  Just like Ford did.  I knew the Fiat move would be a good one…meep meep.  The company is known for stylish small cars, just what the economy ordered. But Chrysler is also making a move with Dodge, which is a bit more of a surprise. Hemis and un-mommy mini vans and a return of the muscle car for real motor heads (Can you say Challenger?).  This is Dodge’s sweet spot.

    Marketers are not talking about Chrysler in terms of cools social programs a la Ford, they are watching the rebirth of a company through focus on the 4Ps. Roots baby.  Eminem baby.  Where’s Kid Rock? GM is blocking, but I’m not so sure they’re tackling.  The foreign value brands are pretty much growing a bit over the pace of the market. Ford may want to look over its shoulder — is it losing its hunger? Is it placating the dealers once again?  Come on Chrysler. It’s pay back time! Peddle down. Peace.

    Showing Up Isn’t Enough!

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    Bob Gilbreath, chief strategy officer at Possible Worldwide, wrote a book a year ago called Marketing With Meaning. It’s a counterpoint to Woody Allen’s quote about “90% of life is just showing up.”  Bob suggests embedding your message (and offer) with something of value.  Not mere boast and claim — something meaningful and fulfilling. The book is a must read.

    I created a brand plan for a health system a number of years ago designed to move the dial on about 9 attributes that make for a successful hospital experience; things like: “best doctors,” “leading edge treatments,” “improved patient outcomes.”  If you can answer yes to these hospital qualities, it is likely you will want your procedure done there.

    When I see work in this category today, sometimes I wonder if marketers are trying to be meaningful at all.  One NYC hospital spending a lot of money is doing it the Woody Allen way, just showing up. Doing “we’re here” ads. One word headlines and pretty pictures.  And the system that once had the nine meaningful measures?  It must have listened to its ad agency and now only measures “first mentions.”  That’s a research term for a telephone poll indicating what consumers answer when asked, “Name a hospital or hospital system in your region.” That’s measuring the media plan and the budget, not the communication of the work.

    The best politicians are those who have a vision, are true to it, and allow the populace to experience that vision.  Process that vision. The worst are those who read opinion polls and change direction at will.  Similarly, the best brands have a plan that creates meaningful differentiation and organized claim and proof to consumers.  And they stick to it. Peace!

    Ceding Control of Brand Strategy.

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    Advertising used to make us get off our asses and go buy something. Or, call someone to talk about buying something. That was its job.  Retail advertisers understood this better than most, watching the cash register ring when ads activated customers.   

    In the NY market AT&T and Verizon used to be able to tell how many new cellular customers they were going to add based upon how far forward their ads were in The New York Times

    The Web has changed all that.  Social media pundits and digital strategists tell us we turn to one another to learn which products to buy. Consumers believe consumers, they say, not ads.  The web facilitates this consumer-leading-consumer behavior.  Through community and ratings machines, consumers can certainly gather information to help them with purchase decisions. No argument from me. But these online tools that gather and parse consumer attitudes, with no organizing principle behind them, are eroding brand strategy.  And brand managers are allowing it. 

    Good advertising and market professionals find “reasons to buy” that are way more powerful than those offered by John and Mary Q public. Professionals are trained to prioritize and organize reasons to buy.  If we let consumers decide, and then employ the algorithm to drive our decisions, there is no art or science. We cede control of the brand strategy. It may even alter product design, so everything moves toward the middle.

    Marketers who let consumer do their job for them are lazy. Great brand strategy comes from consumer insight, no doubt. But a consumer collective as brand manager? Nuh uh.  Peace.

    Some “Is he tripping?” business theory.

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    I was reading B-school management stuff this morning and came across some smart thinking from a few years ago.  Treacy and Wiersema suggested success was earned through “operational excellence, product leadership and customer intimacy.”  Who could argue?  Crawford and Mathews started by expanding or segmenting the 4Ps to include “product, price, access, service and experience,” but their unique thesis, explained in their book The Myth of Excellence, is that they want companies to pick one of those areas in which to excel, one to be strong in and simply maintain parity in the others.  This, they posit, will create focus, consumer meaning and differentiation. Who could not listen to this argument?

    These two school of business thought differ from mine, though, in that they are organized around corporate structure not brand structure. Huh?  Well, with the b-school approach, you could walk into the building and visit these departments using the office directory. In my brand planner view of the world, the company is organized not by department but by brand plank – or value proposition. Every company has a marketing dept., a finance dept., and product management, but few companies are organized to deliver value based upon the things that consumers care about – what moves them to preference and purchase.

    Companies chatter about differentiation all the time yet organize themselves the same as every other company.  Companies that want to be different, that want to create greater value for their customers, are companies that focus their energies on the planks. In the healthcare system space, the plank covering “information and resource sharing” is not the IT dept. or the quality control dept. For a commercial maintenance company, the “preemptive” plank that prevents mishaps before they occur, is not the customer care dept.

    Now before you get crazy. or think me crazy, I’m not advocating reinventing corporate structure – well maybe just a little.  I’m suggesting creating value at companies by better mirroring what customers care about. Companies with employees that understand customer needs, rather than operational excellence, etc., will be the market leaders of the future. How’s that for social business design, Peter Kim and Jeff Dachis? Peace.

    Scheiße

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    This is my last post of 2011.  Are you ready?  It’s a short one.

    No one loves consumers more than I. I study them, they are my living. But consumers don’t know scheiße (German, pronounced shy-zah) about managing brands; let’s stop pretending they do. May peace be upon you.

    Planned Act Of Kindness.

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    Just finished reading a story in The New York Times about the Robin Hood restaurant chain in Spain run by Father Angel Garcia Rodriquez, who operates a pay-for establishment during breakfast and dinner only to serve the homeless for dinner. The dinner crowd is served by waiters and waitresses, on real plates, using nice cutlery, not plastic. For free. In addition to the charity, his wish is that the experience will engender hope in his nightly diners. This planned act of kindness is popular and successful and may be on its way to Miami, Florida.

    Acts of kindness and selflessness create powerful feelings for all involved. Selling is not a human trait. Charity is. Every brand should ask itself “What is the nicest thing we have done for customers this year?” If the answer is a one-day-sale or a pre-printed holiday card the brand needs to reexamine its approach.

    Planned acts of kindness should be requisite for all brands. The financial officers may not always see the value, but they’re not building brands. They are building bank accounts.

    Peace.