Tom Kubinski Mary Albers www.sextonprinting.com
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February 2007 issue of TK's Korner
Brand Warfare "Many know the importance of Branding, yet nothing in American business is as widely misunderstood as the questions of how to use it", according to David F D'Alessandro and Michele Owens. In this issue of TK's Korner, I'll recap some of their insighst on, "10 Rules for Building the Killer Brand", that have allowed some of most successful companies to turn their brands into the most trusted names in business. Billions of dollars are squandered every year in the name of the brand. Yet, businesses:
By definition, your "Brand" is whatever the consumer thinks of when he/she hears your company's name. This includes: your labor practices, quality controls, environmental record, customer service record and every rumor about you. D'Alessandros's 10 Rules of Brand Building:
Rule #1, It's the Brand Stupid: Three very important events toppled the giant brands:
One way to compete, is to turn the commodity into an experience. Starbucks doesn't sell coffee, it sells a lifestyle, attitude and perhaps a fantasy of going to Italy without getting on an airplane.
Rule #2, Codependency Can Be beautiful: A good brand provides 3 benefits:
Rule #3, Hold Onto a Great Brand Message- Advertising a brand, the job is to get a concrete message out to consumers, who are going to be expected to buy into that message with real money. The customer MUST understand what the company does and why they should care. To succeed, the message of your brand must do three things:
Yet, most commercials are so clichéd and meaningless that they never penetrate people's consciousness. The key to great advertising is to never allow people to tinker with the agency's work. Twenty-two people (Executives, Ad manager, attorneys etc) cannot create a single, clear message for a brand. Here's a rule of thumb: If you find that more than 3 people in the company have "improved"on the ad, throw it out and start over. So understand your own message, convey it to the agency's creative people, and then give them the freedom to be brilliant. To get great advertising, be a great client. Don't interfere, and don't allow anyone else to interfere. Protect the creative people, and they'll reward you.
Rule #5, The Dos and Don'ts of Sponsorships- On the other hand, they can be dicey ventures. IE Hertz with O.J. Simpson Another danger is called the Ambush, in which a competitor pretends to be sponsoring the event. IE Reebok bought rights to 2000 Olympics, but Nike got some top athletes to wear their own brand of shoes. Failure to understand the players and each ones goals is another. They may not have anything to do with yours. The players are:
Rule #6, Sponsorship is Not a Spectator Sport- Once the puzzle of who and what to sponsor has been sorted out, use it for every line of business with every audience you have. Set up the right expectations by carefully choosing how to display your name. Use it all the time, not just around the event. Amortize the investment. IE Olympic rings on Letterhead, signs at baseball games, tours to meet athletes in the off season, web site where world can keep up with daily results etc. Five Calculable kinds of return:
Finally, when you give your money to an event, make sure you get some control in return - for example, right to pull out at the first sign of impropriety.
Rule #7, Do Not Allow Scandal to Destroy Your Brand-
A company must be ready to counter even obviously false charges, rumors or claims. It can take a century to build a great brand, but it takes about a month to ruin one. Treat every scandal-or even the hint of it-seriously. If you're wrong, admit it promptly. If you're not, prove it.
Rule #8, Make Your Distributors Slaves to Your Brand- Smart brands are beginning to give customers what they want. One way to do that is to partner with the best on-line outfits. Yet, one outcome is that companies are being forced to decide if they're going to be manufacturers or distributors. If manufacture dealing with distributors, then you have to make your brand so appealing that you can dictate the terms. Create enough demand, and the distributor will do what you want. IE Martha Stewart begged Kmart for shelve space and now dictates her terms. Drug companies stopped marketing to doctors exclusively and started addressing consumers directly. So begin by selling your product in the ways that your target audience wants to shop, and then communicate so convincingly to consumers that you make your distributors slaves to your brand.
Rule #9, Market Your Brand to Your Own People- You want to be especially careful about the message you're sending to your employees through those efforts, because it shapes the way they work and ultimately shapes the company itself. The best brands attract the best employees. The same goes for distributors and vendors. Sales people would rather work for a company with a recognizable and respected name as well. A strong brand motivates the entire workforce. It gives them a sense of belonging, a sense of purpose and can give them intangible qualities such as integrity and empathy. That is especially important where the lowest paid employees are the ones who come in contact with the customer. You have to live the brand if you want your employees to live it when they meet the public. Your employees can make you great, or they can sabotage you. Leading them to greatness is the true priority of the brand builder.
Rule # 10, The CEO Is Responsible For Brand Building- That is why the brand has to be considered whenever a major decision is made. Basing decisions on politics, Wall Street or the bottom line can be disastrous for the brand and therefore the company. This especially true in acquiring or merging with a new company. Which name should be used. When the CEO has a clear focus on the brand, it becomes contagious. The result is a tremendous competitive advantage, as thousands of employees become brand expers on your company's behalf. How do you achieve this goal? Demand that everyone in your company ask, before making and decision, "Will this help or hurt the brand?" The single most important question any CEO can ask, "Do people respect our company enough to buy from us?" If you follow the 10 Rules for Building a Great Brand, the answer should be an unequivocal YES.
I hope you enjoyed this recap of David F. D'Alessandro with Michele Owens and you may want to check out the issue on , The 22 Immutable Laws of Branding
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If you would like to join me on one of our upcoming tours, if there is something that you would like me to address, or if you know of someone who might like to receive TK's Korner, please let me know via e-mail at tkubinski@sextonprinting.com or phone. Successfully, |