Shrooms

Those of you of a certain advanced age may remember Aaron Ironwood’s ‘Dare To Dream’ seminars from The Rockford Files.

I have had the pleasure of entering into discussions with two people in the past few months who exemplifies the wildly optimistic entrepreneur . The first fellow with a social media play is seeking venture capital and sees his company as the next Facebook. The second gentleman who plans to compete in the IT services sector feels he can become, “Bigger than IBM.” I admire both of these guys. They are smart, personable and, who knows, maybe one day…

But it should be noted that Facebook earned over a billion dollars in the 1st quarter of this year and has a reputed 1 billion users. And IBM had revenues greater than $104 billion for fiscal 2012. Let me help you with the math. IBM had $2 billion in topline revenue PER WEEK last year. I have been thinking about these start-ups and what it would take for them to earn even just $1 million a year. The news, I’m afraid, is not good for either of them.

So I had a ‘here we go again’ feeling when, in the very beginning of an article I read yesterday, I encounter this quote, “We want to be the Dow or DuPont of this century”, spoken by the 27 year old CEO of Ecovative. And after finishing the article, I have no doubt they will be a household name in the years to come.

What do they do? How do they do it? You’ll have to read the article*. Suffice it to say that if you think you’re going to be the ‘next’ anything, you better be different, disruptive and have a global marketplace that will benefit from your footprint. That’s what these kids(the chief scientist is 28) have created and they are on a hell of a ride.

I can’t recommend this article strongly enough. The beginning of the article can be viewed here. But you’ll have to buy the magazine to learn how freakin’ cool this is.

*See The New Yorker, May 20, 2013 Form and Fungus- Can mushrooms replace plastics? By Ian Frazier

Published in: on May 17, 2013 at 1:26 am  Leave a Comment  
Tags: , , ,

Perceived Quality

Why do certain brands resonate with you? What is the single most important driver of your purchasing decisions? Chances are whether you are in a dollar store or a Mercedes showroom the answer is the same.

Perceived quality is at the heart of all consumer’s decisions. So it follows that a strong brand identity must be formulated so that you are perceived as a quality company with quality products. Successful brands totally get this and tirelessly communicate the benefits of their offerings as well as their people.

Attempts to communicate quality may start with functional benefits; a ‘ better than them’ or a ‘best for the money’ positioning. But a smart company will “ladder up” to the ‘quality experience ‘of emotional and self-expressed benefits as well. Are you one of these companies?

Does your website appear fresh or abandoned? Is your site’s copy smart and to the point or is it riddled with bad grammar and the occasional misspelled word? Do your employees know the importance of perceived quality or are they just sort of there? And most importantly to me, are you constantly improving?

Have you ever consciously thought, “I’m buying this because it is inferior?” Probably not. No matter where on the price scale you find yourself, the perception of quality is present in your purchasing decision.

Is my Subaru better than a Tesla or the soon to market $1.3 million hybrid Ferrari? Functionally, no. But emotionally, for me it is way better (I would be a wreck driving a car that costs so much, pun intended). And on the self-expressed scale, I am quite happy being a member of  ’Team Subaru’.

Is perceived quality the focus of your brand strategy? It probably should be.

 

Published in: on May 10, 2013 at 11:12 am  Leave a Comment  
Tags:

The Reason I Write

Picking up on yesterday’s post, how much value one may attach to free advice is entirely dependent on whether the advice is going to be put into action.

My blog, I would imagine, is painfully boring to those who do not have a predisposition to marketing or to those who are not actively trying to create and build a brand. So in a real sense my blog has no value to the masses.

And I’m cool with that because my target is small business owners and marketing professionals who “get” it. In fact, most marketing pros “get” it from the same sources I do.

But to those who have not gotten it yet, the power of a strong brand is generally seen as having three advantages: 1) A strong brand leads to greater sales volume as people return to a company that has resonated with them in the past, 2) A strong brand allows a company to command a higher price point due to the perceived quality of their offerings, and 3) A strong brand positions a company towards greater future growth.

Think of these three advantages in the context of a monster brand like Apple. Now think of them in the context of the brand you are building or are responsible for enhancing.

To those new here, the purpose of my company is to help small business owners adopt the brand strategies of the world’s most successful companies. It is not like every successful brand has their own strategy. By studying how they do it (best practice), you can do it too.

Got it?

Published in: on May 9, 2013 at 10:11 am  Leave a Comment  

The Bum Rap Of Free Advice

Free Is Good*

They say the most powerful word in advertising is the word “free”. Buy one get one free. Free test drive (duh). Free for a limited time only. In fact, they say, “The best things in life are free.” Consumers have no difficulty attaching value in these examples.

But when it comes to free advice most people do have difficulty placing value on what is essentially a thought transaction. So much so that the popular cliche, ‘Free advice is worth what you pay for it’, is completely ingrained in today’s vernacular. Except when it’s not.

A blaring exception is the free advice you get from your mentor. Or the knowledge you can glean from a respected author (free if it comes from a library, blog or other ‘open’ source.) Or free when it comes from someone who knows you intimately (an old friend, pastor, colleague).

What these exceptions have in common are an expressed willingness to help on the part of the giver. And an expressed desire to learn on the part of the receiver.

As a marketing consultant, one of the best way to screen for people who are going to end up wasting my time, is to see how much value they are able to place on my “free advice”. This works for me because those who benefit come back for more, those that do not apply my lessons don’t.

This has led to a business model, ( not terribly profitable, I assure you), that if the only way you’ll listen to me is if I charge you, then I’ll be happy to charge you. You see, I have no problem valuing my services. This is another great way to filter those who have not been bitten but the constant improvement bug.

You see advice, even paid advice, is only worth the amount of effort one puts in to applying that advice. Even bad advice, when applied, leads to improvement because of that which you learned in determining that it was bad advice.

And when I am trying to help someone, what I charge  matters little compared to how much diligent effort they are willing to exert towards improvement.

 

* a paraphrase of Faber College’s motto

Published in: on May 8, 2013 at 3:38 pm  Leave a Comment  

Brand Awareness

In all the brand-focused marketing literature I have waded through over the years, there seems to be a paucity of attention placed on one of the most basic yet important aspects of brand strategy. I certainly have not given it the attention it deserves. So today I am writing (finally) about Brand Awareness, in this my 100th post.

The basic metrics common in all discussion of Awareness are recall and recognition, recall being the stronger of the two. Recall is measured by prompting people with the question, “What brand names can you name (in a particular category)?” Recognition is measured by supplying a brand name and asking, “Do you recognize this brand?” This is pretty much where the discussion usually ends. Although, this is often when one may learn of the counter intuitive situation of a “category killer” (think Kleenex) suffering from their own popularity when the brand name becomes synonymous with the brand category.

Not often mentioned is the strong statistical evidence that people will choose a brand name they are familiar with over one they do not know, almost every time. This is true regardless of whether they have first hand experience with the product or service. The exception is when a choice is made for experimental or ‘discovery’ purposes, which is so rare it explains why so many new brands fail within the first year of launch. 

Most of these discussions use the grocery store to illustrate how this works in the consumer’s mind. The example also works well in showing how companies can leverage the strength of their brand names within and without their category. Of all the myriad of options, shoppers are very predictable. I know I am. When faced with a choice between a known and an unknown, it’s hardly a choice. I also like the example because food and beverage selection is so subjective. Is a store brand really that much different than a national brand? Is Coke™ objectively that much “better”?

This normally lead to a discussion about brand loyalty which I have written a fair amount about in the past. And also to the subject of “choice”, which from a neuro-marketing perspective I’ve also touched on and find fascinating.

I would like to offer a new(?), or a least different, way of thinking of such matters. This may be a bit of a stretch but have you ever wondered why some songs seem so much better than others, ones you are less familiar with, by the same artist? I recently stumbled upon a Smithereens’ cover album named B-sides The Beatles. Only the songs I was familiar with (had an awareness of) seemed any good. Why is that? Or for example, why do I similarly think the 50 or so Elvis Costello songs I am aware of are better than the 400 or so other songs he has written and recorded which I am less aware of? Obviously familiarity does not breed contempt. It would seem to breed irrationality.

By that I mean, my judgment is based on my awareness, not on any objective measure such as music theory. More specifically, it would seem that I prefer these songs because this awareness informs me of the next note (predictability) and because ‘I know all the words’ (security). And surely the fact that these songs are popular informs my decision as well (herd instinct).

So next time you’re pushing your shopping cart down the aisle take a moment to think of the importance Awareness plays in your purchasing decision.

Here enters another elephant in my blog’s 100 posts, Advertising. I rarely even use the term Branding. But savvy advertising explains a lot in this context.

Let’s head back to the store. In the energy drink category Red Bull™ came out of nowhere (Austria, actually) and to this day commands the largest market share in the energy drink category. Their advertising put them on the map. But they have also been a best practice in Branding, from sports sponsorship, social involvement etc. Everyone has heard of Red Bull, right? And then a little company came along with a new offering and enough people became aware of it for people to make that “experimental’ decision I mentioned earlier. But the key is that people became aware of it  first, through advertising. Then those people told others (word of mouth) and a Monster™ was born.

From my perspective these success stories are the function of great brand building. But advertising, the paid placement of these brand’s identities, is how the message got from the creative department into the consciousness of the consumer. That’s to say, maybe (I’m kinda winging it here), that a well told story(the brand), well told (the advertising) leads directly to the coveted Awareness.

X       X     X

In the weeks, months, (year?) to come I will be switching over to a wordpress.org site because the platform is better suited for pushing my words out onto the web. I also have this fantasy that I will put my first 100 posts into an e-book format. 

Or not.

 

Published in: on April 29, 2013 at 11:50 am  Leave a Comment  
Tags: , , , , ,

Who Are You? (con.)

I received some guff about my last post’s suggestion that people buy Toyota’s Prius because it signals them as eco-conscious as opposed to them being truly so inclined.

There is so much literature that the unique styling ( you can see it a block away ) is a motivator for purchase that I didn’t bother repeating it. In marketing parlance, Toyota is seen as genius for understanding the consumers desire for the self-expressed benefit that derives from this instant recognition. This is why there is a waiting list for the cars and not for similar offerings that are differentiated by a medallion alone (think Honda’s hybrid). Also, it is worth noting that Prius owners will not report being seen as eco-conscious as the driver (pun intended) for their decision.

As to the carbon footprint, that was a rather oblique reference to Al Gore’s $30,000 annual electric bill. The truth being somewhat less shocking. My point was, for instance, I consider truly eco-conscious people to be vegetarian or vegan, because of the amount of energy it takes to feed, water and deliver a cow to the dinner table. Which is why I didn’t say all owners are poseurs.

Finally, a carbon tax is coming. You can bet on it. If you are interested in learning your footprint slide over to http://www.carbonfootprint.com/ and click on Verify.

 

Published in: on April 26, 2013 at 11:46 am  Leave a Comment  

Who Are You?

I have been thinking about this post for some time.

Self-expressed benefits are essentially the holy grail of a company (or organization). In David Aaker’s brand identity model they, along with functional and emotional benefits, make up the “value proposition”.

Briefly, these are the benefits that say something about the user. Nike shoe’s suggests athlete or fitness buff. Prius signals Eco-conscious.

In recent weeks Seth Godin, my hero, and Bruce Turkel, Miami’s own brand savant, have had posts that both suggest the common “we are what we consume” sentiment often attached to these benefits. But dare I say, I am not so sure of this. I think that a more accurate description would be along the lines of, “we consume things often to appear as what we are not”.

How many people do you suppose wear Nike shoes that never exercise? How many people who drive a Prius have an out-sized carbon footprint? My guess… plenty.

Personally, I wear tennis shoes because I play tennis all the time. But I am also rather fond of the clothing brand Quicksilver, which is youth oriented and largely associated with surfing. But I haven’t surfed in 30 years which would seem to disqualify me on both fronts. But I so desperately want to be seen as young and “cool” that I choose this brand.

In other word, the self-expressed benefit I get from wearing Quicksilver to appear as something I am not.

Published in: on April 24, 2013 at 5:43 pm  Leave a Comment  

Take It, Mr. G

In my last missive I invited my readers to a previous post, that among other things, discussed the power of using the pronoun “you” as opposed to “we” or “I” in your ad copy. Once hip to this technique, you will notice its usage quite often and see how it draws the reader into the pitch, so to speak.

Today I invite you to read Seth Godin’s recent post which I think, while not directly related, will go a long ways in explaining why this works the way it does. As a brand guy, I think these few words are nothing short of profound.

Enjoy!

Seth’s post 4/14/13

Published in: on April 15, 2013 at 5:57 pm  Leave a Comment  
Tags:

First Impressions

I received an email solicitation from one of my LinkedIn connections this week that was so poorly written I was stunned. Then seeing he had 500+ connections, I was truly sorry for the guy. I am tempted just for yuks to paste it here for your amusement but that would be too cruel. Suffice it to say that the first word of the first sentence was not capitalized and that was actually his second mistake!

My primary income from The Jakzen Group comes from helping people craft their words by supplying original copy or editing copy that they have provided. A good place to start when formulating a brand identity is to do you your utmost to appear literate. There is a lot more involved, but nothing will turn off prospects quicker than lame or mistake riddled copy.

I believe one of my first posts, The Write Stuff, should be read by anyone who uses a keyboard. It’s short, take a look, I’ll wait…

Recently I mentioned the Four Seasons of Palm Beach. Click Here to see how they use the exact wording of one of my examples in The Write Stuff. Clearly they have professional writers. But get a load of the terrible graphics on their headers (Accommodations, Photos & Videos etc.). How is this possible? I have the feeling that no one working for the Four Seasons on the corporate level had the nerve to tell the site’s designers, “Hey, these graphics suck.” And I also have the felling that may have been because the designers were charging north of a million dollars and were thereby seen as unassailable. The horror.

I mention this here because given their resources, I find this just as agonizingly bad as my LinkedIn spammer’s mangling of the English language.

Published in: on April 11, 2013 at 12:50 pm  Leave a Comment  
Tags: , ,

What’s in a name?

I was happy to learn that at least one of my readers knew the meaning of my last post’s title. For those of you not so hip, a deuce and a quarter refer’s to Buick’s Electra 225, a car that epitomized Buick’s brand of high style well before it morphed into a brand of understated eloquence.

On Monday of this week (4/1) there was a report on Marketplace, NPR’s daily business news show, about the corporate and government partnering for naming rights of national landmarks. Reported as a necessary way to raise much needed revenue for the federal government’s coffers, the program as described, seemed reasonable and a serious solution. However, the examples given quickly made it clear that the listeners were being punk’d. The Statue of Liberty Mutual, The McDonald’s Golden Arch of St. Louis and The Ford Lincoln Memorial Hwy. It was an April Fool’s joke that many people did not find funny. I thought it was hilarious.

Naming is a very serious matter from a brand standpoint because a company’s name is square one of everything that follows. Having a good name means not only that it is appropriate,  and/or memorable, unlike those cited above, having a good name is also synonymous with having a good reputation. Naming does not just refer to company names but also to names of products and the slogans and taglines that are employed to promote these offerings. Millions of dollars are spent on finding just the right names or taglines  to lure customers to a company’s offering.

In this week’s The New Yorker there is a very interesting commentary about naming. While having nothing to do with business, it is an interesting look at the power of word usage to make ones case. It is clear, I hope, that these terms mean the same thing. Revenue enhancements vs tax hikes, public investments vs reckless government spending, “the one percent” vs “the job creators”, civilian deaths vs collateral damage. These names, given here from the “left” to “right” on the political spectrum, have one thing in common; they are propaganda! They are employed to rally support to a cause.

Translated to business, it is easy to see all branding and most advertising as propaganda. The better you are at it the more profitable you will be.

That’s what is in a name.

 

*Marketplace can be heard locally on 91.3 fm at 6:00pm and on 101.9 fm at 6:30pm.

*The New Yorker April 8, 2013, by Hendrik Hertzberg

Published in: on April 5, 2013 at 7:27 pm  Leave a Comment  
Follow

Get every new post delivered to your Inbox.

Join 30 other followers