Page 4 - Brand Development

Brand power

Saturday, June 13, 2009 by Tony Fannin

by Tony Fannin, president, BE Branded

The power of brands is far from exact science. It's more of an art. Though it's not a tangible asset, the economic effects are real. There are various methods and tools to "measure" brand and its power and affect on the marketplace. In today's environment, your brand does not stand isolated. It's effected in by your competitors and other market pressures. It's often said that if you're in the middle, you become roadkill. This chart will help you visualize how detrimental it is to be "average".

The brand power chart helps companies understand the position they are in compared to their competitors and the unique forces that each position must face as challenges. There are 4 levels of brands:

Elite brands – They are flagship brands, icons. No one is outrunning them. They can move forward with minimal effort. Stable. Efficiencies are gained through superiority. They have to spend less on "catch-up" strategies. The pressure is to work harder, even though there is no preceived threat. They have to push themselves and not get hubris.

Above average brands – Though not icons, they are extremely powerful. These brands must work the hardest. They must contend with the power of the downward force exerted by the Elite brands. The must struggle to just maintain their market status without the resources of the Elite brands. Then they must content with the forces from below who are trying to squeeze them out of their market positions and take it for themselves.

Average brands – These are somewhat stable, but not powerful. They are neither gaining or declining. They just exist. The danger is eventually, they become irrelevant and disappear. They get great amount of pressure from the Above average brands and the Below Average brands.

Below average brands – These brands have the most to gain and little to lose. They are at the bottom of the market. Their advantage is that it takes less effort to move up a level than any other brand position. These brands can afford to take larger marketing risks because of the huge upside and minimal downside.

Understanding where your brand is will help a you develop the right marketing and advertising strategies. It also helps you to be objective when facing your current circumstances and market situation. When you know what you're up against, it's easier to focus your efforts and not just "shotgun" them at everything that moves.

www.bebranded.net
317-797-7226

Does brand affect stock price?

Thursday, June 11, 2009 by Tony Fannin

by Tony Fannin, president, BE Branded

Most marketers know that brand is important. Most know that it's the emotional quality of who your are or what you stand for. So, does brand have any affect to the bottom line? The answer is yes. Brand does have true monetary value. Most corporations list the value on their annual report balance sheets. In Nike's 2008 annual report, their brand is listed at a value of $659 mil. A company's brand makes up about 20% of their stock value. That's significant. How many of us would love to earn 20% just because our brand is out there?

Brandings' black box

There are four components that branding efforts affect. This in turn affect's the stock price:

1. Perceived Value: This is made up of familiarity and favorability. A great brand allows a company or product to ask for more money and customers still feel like they are getting value.

2. Contribution: Margins and incentives. A successful brand position allows corporations to increase their profit margins by adding an emotional incentive to select one brand over another. This is how a brand contributes real dollars.

3. Cash flow: Great brands provides excess cash flow by enabling companies to dominate their niche or industry

4. Shareholder value: Great brands brings emotional benefits to shareholders in the form of pride of ownership and association. These emotional issues, along with tangible revenue make up the total value for shareholders.

Brands have value. Great brands not only have enormous value, but provide powerful leverage in both good times and down times. In bad economic times, people tend to go to brands they trust. There's less experimenting and less risk taking with an unknown product or service. It is during these times, progressive brands make their greatest increases in both market share and awareness. Because most marketers tend to cut back in slow economic times, the bold ones make their move and advertise more. For example, Dr Pepper and Geico have increased their ad budgets over the last year and have reported gains in market share and revenue. When the good times roll in, these companies who have advertised and established their brands while everyone else went "dark", are now set to accelerate their growth. They've build a great foundation of awareness and trust. When the economy is good and everyone begins to advertise again, there's more competition for share of mind and wallet. The brands who never went "dark" are already ahead of the game because they have the awareness and share of mind they've gained.

Even if your company doesn't sell stock, you can still take these ideas and apply them to your business. A great brand, as well as a bad one or none at all, will still affect your bottom line. The biggest advantages of a great brand is that it will give you credibility and it makes you money on it's own.

www.bebranded.net

317-797-7226

Advertising the Obama way

Wednesday, June 10, 2009 by Tony Fannin

by Tony Fannin, president, BE Branded

President Obama is held up as the poster child of how to use new media to market a brand. His team masterfully planned and executed grass roots campaigns, used e-commerce to generate record donations, and even incorporated above-the-line marketing. Most believe it was his use of social media that made his campaign so effective. Let's breakdown the campaign to really see what the advertising and marketing strategy of Team Obama.

Brand – Some doubt the power of a brand. Obama capitalized on it. His theme of "Yes we can" was the foundation of every tactic of Team Obama. To the general public it became a rally cry. To his team, it was a well crafted brand position that was carried out with the consistency seen from the likes of Nike and Target.

Budget – Team Obama spent an average of $2.8 mil. a day, on advertising during the presidential campaign. (Who says social media is cheap.)

Media Spend – Surprisingly only $8 mil. was spent online during the whole campaign with Google being the largest beneficiary. In fact, Team Obama spent the vast majority of their $600 mil. war chest on above-the-line advertising (TV, radio, print, direct mail, PR). Just his 30 min. infomercial during the World Series cost $4 mil by itself. According to Campaign Media Analysis Group and the NY Times, Team Obama spent over $236 mil on TV and $250 mil on radio. If you project the TV spend, by itself, Team Obama will have spent more than most major marketers budget for their total marketing spend for the year. Companies such as McDonald’s, Verizon, WalMart, and Target are all out spent by Team Obama.

Integration – This is where the true genius of Team Obama shines. They were masters at integration of new media, traditional media, PR, and good old-fashion door-to-door marketing. The types of media was used according to their strength (brand messages to the masses via TV, niche communication via social media, call to action via door-to-door) All of this was held together by the brand, the main thread (in their case, rope) that kept the campaign cohesive and coordinated.

So what can we conclude? Here are few take aways I have:
• To achieve a big goal, you must allocate resources proportionally (you can't expect to make a big splash by dipping your toe in the water.)
• Brand. Brand. Brand.
• Integrate your tactics to support each other in a symbiotic circle
• There is no silver bullet

www.bebranded.net
317-797-7226

Marketing strategies in a new economy

Monday, June 8, 2009 by Tony Fannin

by Tony Fannin, president, BE Branded

Marketing and advertising strategies have changed over the decades. There's always the fads from "inventing" a new formula for cleaner shirts to utilizing the greatest technology ever created (at least for this hour). I've seen the changes throughout my marketing career and others have written about it as well. Right now there have been three main strategies from the mid- 1960's to the present day.

Ready. Aim. Fire. – 1960's to late 1970's
This is the era of research and analysis. Before you went after any market or invested any amount of dollars into advertising and marketing, you spent great amounts of time, money, and resources in exhaustive research and data analysis. If the numbers didn't show enough of an ROI, companies simply didn't invest in marketing to that segment. So, it took a long time for products/services to be marketed. During that time, that was fine since society and the market space didn't change that much from year to year.

Ready. Fire. Aim. – 1980's to mid-1990's
During this time period great change began to happen. Technology was becoming more in reach of the average person. Wall Street created different ways of doing business (see LBO's and M&A's) Marketers during this time, saw that the market space changed quicker than it has historically in the past. They no longer had the luxury of time to make sure there plans were fool-proof and perfect. This was an environment where you had to take in all of the information you can in a short period of time and take your best educated guess. Hit the market place before someone else beats you to the punch. Then step back, see what effect you have and then readjust.

Fire. Fire. Fire. – mid-1990's to today
In today's world marketers have even less time to research and analyze. Change happens almost daily. Markets shift in a matter of weeks. With new tools and venues for marketing and advertising being added almost weekly, you have to be as open to change in the way you market and advertise. The ones who believe they must "get it perfect" before we go to market will soon find out that what they once believed to be true is no longer because their audience has changed and the market landscape has shifted into something totally different that what it had been only 6 months ago. Today, you must develop your marketing strategy around the concept of continuously "firing" and adjusting on the fly. Because of today's technology tools, you'll learn more in 2 months of having your product out there than if you spent 6 months in testing and tweaking every word.

The main reason for this marketing strategy shift is because the consumer is now in charge. They can directly tell you and all of their pals what they really think. If they hate something you do, you'll know it. If they love something you do, you'll know that too. One of the worst things in todays world is to be ignored. That means you are irrelevant. You don't matter. At least, if customers complain about you, they are actually helping, by letting you know how you can improve and wow them. They actually give you the answers.

You can't wait until things are perfect. By the time you think they are, the market has already begun to change and you're already behind. There's a principle in the book "Sun Tzu, the art of war" – the idea is that you gather as much information in as little time as possible to make your first move. Then you go into action even though you don't know everything yet. As you progress, you learn. As you learn, you adapt. As you adapt, you become victorious. This principle completely supports the "Fire. Fire. Fire." idea of today.

Today's successful businesses are ones who take action over inaction. It's through action do you learn, adapt, and are always in the process of becoming what your customers want you to be.

www.bebranded.net
317-797-7226

Everyone knows what brand is. Right?

Saturday, June 6, 2009 by Tony Fannin

by Tony Fannin, president, BE Branded

This is one area of marketing that is hard to pin down because of the core nature of the quality. It's a "soft" asset. It's not numbers, accurately measured, or defined in a unified way. But we all know when it's missing, from a company, a product line, or even on a personal level. In my 25 years of experience, I've run across various interpretations. They seem to have fallen into two camps.

One, it seems most small businesses, entrepreneurs, and graphic designers define brand as a visual. It's the logo, colors, fonts, and images. The second camp seem to be made up of larger companies & corporations and advertising & marketing driven agencies. They believe brand is about the matters of the heart and emotion. What singular quality do you stand for? I fall into the second camp.

Brand is about experience. It's about who you are at the core and how will it add to your customer's image. In the book "Reimagine", Tom Peters states it this way: "Moving up the value chain means offering Something More. It means emphasizing the Soft Attributes of "products" and "services"—attributes such as convenience, warmth, companionship, beauty, trust, and Being Seriously Cool. There is a word that sums up all of those attributes: Experience. This is not a semantic quibble. It is the Essence of Life in the New Economy. And billions and billions of dollars are at stake." Many times in a sales pitch, advertising campaign, web site, too many businesses lead with the numbers and with stats. This immediately makes your brand a commodity. If someone else has better numbers and stats, you lose. But, if you lead with the "heart" and follow up with the stats, you've not only made an authentic connection, but the numbers gives the "soft" attributes even more substance. In other words, you give customers the logical right to choose your brand even though they are really into what you deliver on the emotional side. All of this equates to more dollars.

Think of it like this: we all say things like, "I know I shouldn't get this, but I just have to have it." How we buy is not logical. It's very emotion driven. If your brand delivers the emotion AND offers a logical reason of why your brand, then you've tapped into something that is powerful, something that creates loyalty beyond price point and reason.

I believe the visual component is important, I'm a designer by trade, but the visual alone is not brand. The visuals are the interpretation of your brand's emotional promise. Your brand needs to be alive throughout the company – employees, internal systems, IT systems, vendor partners, and especially your advertising marketing efforts both on line and off line.

It's been said by several marketing gurus about your brand, "If you don't believe it. If your employees don't believe it. Why do you think your customers will believe it?" And you can't deliver what you don't believe.

www.bebranded.net
317-797-7226

Grow your business

Thursday, June 4, 2009 by Tony Fannin

by Tony Fannin, president, BE Branded

One of the core questions facing every CEO or small business owner is: How do you grow your business? There are many ways to get this accomplished. How do you know what is the right path to take? How much investment will it cost? Should I grow my current base or search out new markets? Because every business has limited money, limited personnel, and limited expertise, it can be difficult to know how to invest and where to invest your resources, both human and financial.

I would like to present a tool that helps clarify and simplify the initial process of knowing where and how to grow your business or market(s). It's called a "Growth Matrix". It looks like this:

: Growth Matrix

Here's how it works. The Growth Matrix helps you visually see where are the possibilities lie to grow your business. It helps you create a plan that provides direction and discipline. Your business is currently in the lower left box. You can grow by finding related or new markets or offering related or new products/services. Each time you move into another box, you need to acquire new knowledge and expertise within the organization. This is how you decide where to invest. If you move from your current product serving your current customers to offering your current product to a related market, you need to acquire new knowledge about that market space. If you decide to offer your current market a different, but related service, your company needs to acquire additional skills and expertise. Here is an example:

Layout 1

In taking a look at this matrix, you can see the possibilities in generating growth alternatives. By mapping the alternatives out, you can decide where would be the best bet to invest your resources. Keep in mind, as you move diagonally to the upper right corner, it will take more knowledge in learning new markets AND more expertise to offer new products/services. This will prepare you to allocate enough resources to accomplish your next stage of growth.

This tool is beneficial in several ways:
• It keeps your company disciplined in focusing on a single area
• It keeps your company from "shot-gunning" and not waste dollars and effort
• It allows you to strategize and focus your marketing and advertising dollars
• It provides a systematic, long-term plan to increase growth from one year to the next

All growth efforts have risk, but in using the Growth Matrix, you can lower the risk by seeing what it could take to grow with various alternatives. I would be interested in hearing how your growth plan works for your company.

Note: I was introduced to this concept by a wonderful business researcher, Don Sexton. He has developed marketing programs for many businesses across the U.S.

www.bebranded.net
317-797-7226

Marketing in an economic downturn

Tuesday, June 2, 2009 by Tony Fannin

by Tony Fannin, president, BE Branded

In a down or tight economy the most rational thing for a business to do is conserve cash, cut costs, and invest less. Just hang on tight and hope your customers remember you and how wonderful you've been to them in the past. It happens time and again that I see the first thing to go is marketing budgets. Many believe that the best time to market is during the boom times.

The counterintuitive thing to do, and the most strategic, is to market as aggressive as you would if the economy is doing well. Here are several points why:

1. The chatter is down – what I mean by that is "everyone" is pulling back their marketing dollar, including your competitors. This opens up opportunity to be one of the minority of voices heard in the market space or your market niche.

2. The cost goes down – many media vehicles, including web, are ready to make deals. With the same marketing dollar you'll be able to garner more value from your investment because of simple supply and demand. With more supply, you'll be able to demand greater value.

3. Consumers find refuge in brands – this gets a little tricky because you'll need to have established your brand during the good times. When the economy tightens, research has shown many consumers fall back to brands they are familiar with and trust. Of course, there are always exceptions in various industry categories such as food (price is king here, but brands still dominate. i.e. McDonalds, Spam, Campbell's). But, if you've established your brand when the times are good, you've helped insulate yourself some when times are not so good.

4. You'll be stronger when the economy changes – because you've stayed visible while everyone else went dormant, your brand awareness and value will have given you an established platform to launch from when the economy gets going again.P Plus, it will take less because your marketing machine is already in motion and hasn't stopped. Others will have to re-establish their brand and market value from a dead stop which means spending even more money and paying premium rates across the board because their will be less supply and more demand from magazines to web banners and everything in between.

Here are a few examples and comments from other marketers:

P&G, Colgate-Palmolive, Kraft Foods, Kellogg Co.

In a testament to how important advertising has become to their businesses, Procter & Gamble Co., Colgate-Palmolive Co., Kraft Foods and Kellogg Co. all have boosted or at least maintained their marketing budgets, even as they've had to implement cost controls elsewhere. And that trend looks set to continue as these giants are forced to hike prices in response to rising commodities costs -- a move that will require them to continue pitching consumers on the merits of their brands.

P&G and Colgate last week reported stronger-than-expected organic sales growth, at least in the U.S., along with strong earnings growth. Both said private-label market shares were flat to down in their categories. The spending hike appears to have helped P&G pull out a surprising 6% sales increase in the U.S. last quarter, more than double the 2%-3% growth in retail sales it tracked in its categories and ahead of its 5% organic sales growth globally."

Bounty paper towels. It may reside in a commodity category where private label has been making big gains, yet Bounty has been gaining share throughout the downturn. Parent Procter & Gamble reported in January that Bounty's U.S. value share grew 1.5 points to more than 44%. The brand has continued to innovate within its premium product line without ignoring its lower-priced Bounty Basics line. Bounty has also maintained a strong marketing presence and honed its value messaging."

Anne Bologna – CEO, Toy

"In the Great Depression, Kellogg continued to market its cereals while rivals cut budgets. Kellogg pulled ahead of Post in sales, a change that has never been reversed. Point is, what you sacrifice now, you pay for later. Every thinking business person knows that, but few have the courage to invest. Be brave. You'll never regret it."

Joe Tripodi, CMO – Coca-Cola Co.

"Don't waste this opportunity to enhance brand love. This is the time to engage people and deliver experiences that excite them in unexpected ways. As an example, we recently introduced a new global marketing campaign around the idea of 'Open Happiness.' We are bringing it to life not only through traditional advertising but through the release of a music single, online experiences, social media, impactful point-of-purchase materials and the integration of the core creative idea into all of our existing properties, like the upcoming Winter Olympics in Vancouver. This is not the time to stop talking with consumers. If you use this opportunity to broaden your dialogue with the people who love your brands, you will come out of this period with a much stronger and deeper relationship with them."

In the end, it's about keeping your value and uniqueness out there, regardless of the conditions. In every downturn, there's opportunity. Being brave, bold, and unwavering in your brand and value your company brings is the only way to take advantage of the situation and not just trying to react to it.

I invite your comments, opinions and experiences so all may learn something new.

www.bebranded.net

317-797-7226

What good is an ad agency anyway?

Monday, June 1, 2009 by Tony Fannin

by Tony Fannin, President, BE Branded

In today's world of SEO, Blogger, Twitter, banner ads, Linkedin, etc. marketers have more choices and opportunity to connect with their customers directly, without having to utilize traditional media or even an ad agency. It's also true that having your customers creating buzz about your product or service is the best form of advertising. If all of this is true, (and there is still a raging debate about if the internet is the silver bullet marketers are looking for) then why aren't there more business succeeding beyond their wildest dreams? Why aren't there more entrepreneurs getting rich within one or even two years? Isn't Google, SEO, and blogging the lethal combination that leads to business domination?

So what good is an ad agency? From what I see, there still is something lacking in the "Google is all you need" marketing strategy. Many entrepreneurs I personally know are still trying to establish and stabilize their small businesses and, in some cases, trying to just survive. Corporations are trying to keep what they have, let alone, gain market share and increase profitability.

The true value of an ad agency is Big Ideas and creativity. That's what we do. That's what we are great at. Just like your business is great at what you do. You're great at making a widget, but not at corporate law. That's why you hire lawyers. Your company is great at what it does and no company is great at everything. This is especially true when it comes to marketing. Granted, ad agencies must change to stay relevant in today's business environment. They can no longer make a living on media commissions and other mark-ups. They must bring real value to the table. Big ideas and creativity is our currency. You are still marketing to humans. And all humans are effected by their senses. We all want to enrich our lives beyond the utilitarian purpose of a widget or basic service. We want experiences. We want as many of our 5 senses to be engaged as possible. We also want to be wowed, surprised, and enlightened. It is these big ideas and creative strategy that delivers on an emotional level. It goes beyond just rankings and clicks. A brilliant brand position reaches customers on an emotional level. It touches their "dreams" and allows them to see the possibilities. A great creative message, both verbal and visual, allows customers to feel like you understand how they feel and you have something that will help. Look at it this way, is $200,000 worth investing in a big idea if the potential is worth $1,000,000?

I do believe the internet is a great tool. It's connection and reach is undeniable. But, it's the CREATIVE integration of online and offline that delivers a powerful, compelling message and brand to your audience. And one of the most important key to your business success is having and executing big ideas in a creative way. Any ad agency worth its salt knows that's what they MUST deliver.

I invite your thoughts and comments about what value, if any, you see and ad agency has.

www.bebranded.net
317-797-7226

Does brand and design matter in an SEO world?

Sunday, May 31, 2009 by Tony Fannin

by Tony Fannin, President, BE Branded

We all know that Google loves web sites that are loaded with fresh content, straight to the point, no fluff, and heavily linked to. To search engines, it's all about the numbers. It's cold, hard math. Jeff Jarvis' book "What Would Google Do?" gives a great, detailed account of how a Google world would be. (I also get the impression that Jeff would love it if Google did own everything.) So, with text ads and words being the key to online rankings, is there no need for brand and design anymore? (At least on the internet.) Is there no need to appeal to human emotions since everything is reduced to it's lowest common denominator (such as price)? And, if everything is supposed to be a "community", is there no need to stand for anything since one of Jeff Jarvis' rules is to let the community define you?

In my opinion, I think defining who you are, what your company stands for, and what values you hold is more important now than ever. It is these "human" qualities that separate you from others. Qualities such as emotion, esthetics, and beauty are still very important. In my experience, a brand that is able to engage as many of the five senses as possible and become relevant in a meaningful way. As Tom Peters has said in his book "Re-imagine", "We live in a world of similar products, with similar prices, with similar features, with similar services. What makes your offering different is the experience. And now even above that, it is dream fulfillment." If you reduce your marketing to just stats and clicks, you'll find that you can easily be replaced because you are now just a commodity. You've not connected in a real way that creates loyalty and "consumer evangelism". You don't touch their dreams and help them realize the possibilities.

We've recently did a comparison test with a few web sites we've designed. We compared a heavily SEO driven approach with sites that were more design and brand emphasis. The intent was to find out what appealed to visitors most; pure information or a site with some personality and design. Our tech boys fully expected visitors to gravitate to the informational site to accomplish the task they set out to do. (So did I.) But, something interesting happened, visitors not only liked the branded and designed sites better, they explored them, which lead to them staying on the site longer. When asked why, the main differences came down to human qualities (beauty, entertainment, emotional copy). Granted, we made sure that the information they came to the site to find was front and center and easily accessed, but we also made sure we gave back by providing some sort of human emotion whether is was beauty, laughter, or thought provoking. Take Apple for example. They are the gold standard for simplistic beauty. They've been able to take cold, unassuming technology and make you "feel" something toward it through engaging your senses and their brand engages your emotion.

To me, it's about adding a small bit of quality of life to someone's experience with your company, that you see them as humans and not machines just trying to accomplish tasks. Ultimately, the killer combination is beauty and brains; emotional and logical. Provide the content, but present it in a way that feeds the soul and the senses.

I would love to hear your viewpoint about balancing SEO and design and some of your examples you may have.

www.BeBranded.net
317-797-7226

Marketing and branding in today’s new economy

Saturday, May 30, 2009 by Tony Fannin

by Tony Fannin, President, BE Branded

There is much discussion in the advertising industry about how to market in the so-called "Google economy". Some say that old-school tactics are dead (insert TV, radio, print, here) or soon will be. There are many who believe that all you need is Google Adwords and SEO and you can take your brand straight to the top in no time. By relying on Twitter, Facebook, and Blogger, you can let others do the work for you in spreading your "brand gospel" around.

As for me, I've never believed in the silver bullet concept. That includes old-school, new-school, or even the Google economy. I believe that leveraging tools and the social network that are online to spread your brand is a great thing. I also believe that TV, radio, and print are able to present your brand equally well. Why only utilize only half your advertising arsenal when you have a range of options to utilize?

I'm a marketer. I'm a creative. At my core, I'm a problem-solver. The real question is HOW do you leverage the advertising tools that are available? I know that many say you should let the social network tell you what your brand is and what your key messages should be. I believe if you do that, you're passing up on a powerful asset – being creative. It's not the tools, it's how creative you use them. Great creative takes the physical function of the media (print, video, online chat, etc.) and finds creative ways to utilize the media vehicle. This, in turn, makes your brand fresh, unique, and relevant to your customers.

I don't have all the answers. I'm still discovering new ways to blend a TV spot with a print ad in a niche mag with a YouTube video with an impromptu party invite on Twitter for a client event. I don't know half the things I want to and that's what makes my job so exciting.

If you'd like to offer your experiences, please share them with me. Or if you have questions yourself, let me know that too. Maybe, together, we'll both learn something new.

www.BeBranded.net
317-797-7226

Advertising's new model: Pay-for-performance

Saturday, May 30, 2009 by Tony Fannin

By Tony Fannin, President, BE Branded

In today's economic conditions, marketers are searching for ways to lower costs while still maintaining revenue, brand equity, and market share. One area some turn to cut costs is their marketing budget. Many see the marketing budget as the first thing to go. This can be a double-edged sword.

Yes, marketers do want more accountability from their agencies. They want them to not only provide creative innovation, but to view the market as they do, as businessmen. But, the wiser ones also know, if you squeeze too much you risk long-term harm to the brand. When the economic times change for the better, you've either damaged your brand by becoming the de-facto, "cheap" brand or you've go so quiet in the marketplace, that you've become irrelevant and you're competitors have taken your place in the hearts and minds of your customers.

One way we've tried to change the way we do business is to offer our clients three business models to choose from. One – the "hitman" approach. Give us your toughest marketing problem or your "down & dirty" problem. We'll come in, solve the problem, execute the project, and "disappear". Second – If you want us to handle all of your marketing needs and coordinate all phases (online, traditional, promotional, etc.) we'll do that. The third way gets to the heart of this entry. Pay-per-performance.

We provide all of our marketing insights, brainpower, and execution on your behalf without any upfront fees. In return we receive a pre-negotiated percentage of revenue. In effect we put our money where our beliefs are. We climb in the boat with you instead of directing from the shore. Based on your goals, we'll set bench marks that will carry a monetary value. If we don't hit them, you pay nothing. If we accomplish the benchmarks, then there will be ample revenue to go around.

There are a few agencies who have taken the PFP idea and is implementing it too. What prevents the majority of marketing firms from doing this is their overhead and cost of doing business. It seems the firms who are efficient and nimble are the ones who have been able to take advantage of this business model. Of course, there are responsibilities on the client side that must be agreed upon as well. We can discuss that in another entry.

If structured properly, PFP is a way to get everyone pulling in the same direction and brings about true mutual interest. As an agency owner, I look at how I can provide and prove our worth to clients and PFP gives us a tool to do just that.

Bio
Tony Fannin has over 24 years of integrated marketing experience. Has developed and executed marketing strategies and creative approaches for a number Fortune 500 companies. He has also helped several start-up businesses creating and executing their marketing approach.

Tony is president of BE Branded, an integrated marketing & design firm that helps clients Be Somebody to their customers. Their research shows that if businesses don’t connect with their audience in a real, emotional way, they risk becoming a commodity.

Call them if you would like to talk about whether you would like to Be Somebody or be a commodity.

www.bebranded.net | 317-797-7226

How much is enough?

Sunday, April 27, 2008 by Tony Fannin

By Tony Fannin, President, BeBranded.net

The big question in every marketer’s mind, how much should I spend on marketing? Then, other questions follow; What do I spend on? How much do I spend for each? How do I know what is working? Whether you are a large corporation or a small business, these questions must and need to be asked. But how do you come up with a valid number? You can depend on past spending habits, such as some large corporations do. You can set a number you can afford as is common with small businesses. Or you can approach the question a third way. Another way to set your marketing budget is to view it in two main parts.

How fast do you want to get there?

First, instead of just picking a number you can afford or depending on what you spent last year, your marketing budget should be dictated by your end-of-year goals. There is no text book formula that will work because each business is different. Each industry category is different. And each individual business or corporation’s goals are different. Your market category could be very competitive with many players in your sector or you could be facing only a few “goliaths.” Your budget size should be in balance with how much you want to achieve over the next year and in the long-term, each year’s budget should be in balance to what you want to achieve in the next 3 – 5 years. An aggressive business plan that requires you to meet a high financial goal or an awareness goal can only be accomplished with an equally aggressive marketing plan. Any cut backs in marketing spending, over time, you will see less ROI in your bottom line. For example, GEICO increased their spending by 75% over 4-years. This was twice as much as their competitors. By 2006, GEICO saw the returns they were planning on. According to J.D. Powers & Associates, GEICO stood far above the rest in new-customer acquisition. Even though they are the No. 4 player in the market, they ranked No. 1 in new-customer acquisition. They also topped the brand awareness ladder over their larger competitors.

Some depend heavily on word-of-mouth. This is a tactic that works and should be considered as a part of your overall plan. Two things to keep in mind are someone else is in control of your message and brand, not you, and second, for the most part, it takes time. You have to have the luxury to wait it out until it builds and catches on. Some depend on new media, such as web casting and interactive on-line magazines, to drive their message and brand. This is also a good tactic that works and should be in your mix. The main point to consider on this is the cost of entry into that arena and the cost to keep up. To make new media a focal point of your strategy means you must be early adapters and always be searching for the next big wave before it becomes a big wave.

It’s all or nothing

The second part is an “all or nothing” approach. Don’t look at the concept of budget as to see how much to spend on each tactic, but to see it as what tactics should be FULLY funded and what tactics you should not spend a dime. Like a lot of things in life, if you do it half-way, expect to fail. If you are going to commit your limited resources, then you need to commit to it completely. This brings up a question, “How do I know what to commit to?” This should be answered by taking a hard look at what your core brand stands for. All you do and say as a company should be in alignment with what you really stand for, your true brand position. If your true brand position as a photographer is to “capture romance” then, every marketing tactic that should be FULLY funded needs to be in alignment with romance. If your brand is “self expression” as a national apparel company, the specific tactics you invest in needs to support this concept. I’m not saying to only invest in one or two tactics. You need to still develop a comprehensive marketing plan, but the specifics that go into your plan needs to be only those things that are in harmony with your brand position. And these are the tactics that need your full commitment to realize your end-of-year goals and achieve the ROI you need.

By looking at marketing spending and budget setting differently, you can realistically align expectations and investment amount with your core brand. This will help prevent wasting money with a “shot gun” approach and will further a deeper understanding with your true audience and ultimately gain their loyalty.

Consumer Generated Ads: Friend or Foe?

Saturday, March 8, 2008 by Tony Fannin

Consumer Generated Ads: Friend or Foe?

By Tony Fannin, President, BeBranded.net

From a marketer’s point of view, what’s not to like about consumer generated ads? You get free ideas from all over the globe. They’re submitted by the very people you want to reach. And, there’s an inevitable PR halo effect that glows over the very contest which is generating new and winning concepts. Voila: Instant ad that saves on creative and production fees.

But from an advertising agency’s viewpoint, what’s to like?

First, though the ideas come free, most don’t support the overall brand messaging or fall in line with other executions across different media platforms. Second, the chosen ad tends to only reflect one voice at the expense of other interpretations. And third, the PR push you get is likely short-lived and runs the danger of overshadowing your true marketing message.

In reality only a very few Consumer Generated Ads (CGA) have worked.

Research has shown that adults 25 and under see CGAs as less trustworthy, less socially responsible, and less friendly than professionally produced ads. Those over 25 see CGAs as friendly and creative. The 25 and under crowd also sees CGAs as the marketer’s attempt at pulling the wool over their eyes by trying to be “real” much like when your dad says he’s got the “411 on your new sled.”

Here’s one CGA that backfired recently for a major consumer brand: Chevy Tahoe. The major auto maker invited ads to be made by average consumers. On a special Web site, Chevy provided soundtracks and video for users to “mix up” and then download for general viewing. But the pitch backfired when one spot slammed the SUV as a gas guzzling drain on the environment—causing more harm than good. By the time the spot was taken down, hundreds of thousands had viewed it not only on Chevy’s site but also YouTube.com.

Before you invest in CGAs, consider these points:

Look at CGAs as a dialogue, not the answer.

Allow your customers to show, tell, and sound off what they think of your brand. It also shows you how your brand interacts in their daily lives. People want to tell you what they think. Instead of filling out a generic questionnaire or survey, they can express their emotions in a way that will convey key secrets about your brand. Your goal, and the goal of your advertising agency, is to find common threads in the “conversation” that relate to the most customers—addressing their most pressing needs and desires.

Don’t let CGAs hijack your brand.

It is an easy trap to fall into. Someone creates a unique piece that is entertaining, but is a little off your brand message. Over time, this gap widens. Conflicting messages begin to surface, and before you know it—your brand has been hijacked. Having consumers interact with your brand is one thing; having them redefine it is another. Being hijacked means you’ve lost control of your company’s message.

CGAs can be part of an overall marketing strategy.

There is a place for CGAs. Be creative in incorporating them into your marketing plan. Planning how and where you will use them will let you create a unique experience for your customers and prospects. For example, CGAs can be used at an interactive display in the mall. By surrounding the environment with your agency’s crafted messages and visuals, CGAs can work into the mix to enhance the total experience of the visitor at your display.

Consumer generated ads are new and intriguing. No one really knows how to harness this newfound tactic just yet, or tap its true potential. Experimentation will be necessary. Knowing your own brand and how it may or may not fit is important. If you can turn CGA opportunities into meaningful dialogues with consumers, you will be able to gain insights and ultimately, deliver a brand your customers want.

Turning customers from passive to passionate

Sunday, February 10, 2008 by Tony Fannin

Turning customers from passive to passionate

In today’s world, it’s all about market connection. Consider the tools at your disposal to reach people; traditional TV and newspaper ads, podcasts and mobile marketing via cell phones, street art and product placement. With all of these tools available, why are marketers still having problems separating themselves from their competitors and not getting customers to respond?

Market connection is the key. You must connect with your customers in a real way. Customers desire an emotional connection with organizations they do business with. They want the experience to transcend beyond mere transactions. That bond keeps you from being a commodity and driven down to the lowest common denominator, which is usually price. By doing this, you can make yourself meaningful and ultimately bring value to their lives. The deeper the connection, the deeper the brand loyalty.

Emotion creates intimacy and intimacy allows for deeper connection. To do this you must be responsive to what people value and desire. No one wants to be a part of something that force feeds services or products which aren’t needed. By honestly demonstrating and communicating the true essence of your brand promise, you can offer real choices that make a difference in people’s lives.

An example is our work for a small regional bank. Growth was flat for the past three years. Competition was tough and getting tougher with the national banks moving into new territory with deep pockets. We found out why their current customers did business with them, why some didn’t do business there, and why some didn’t care where they banked.

With this information, we were able to craft a brand message that expressed the core emotion of what their bank offers. Not only were marketing and all communications efforts coordinated, but the internal staff was educated and given the reasons why the brand took this direction and how they played a critical role.

Within 18 months, the bank realized an increase of more than $22 million in new assets and deposits—all without acquiring other branches. They were also honored by peers and colleagues with various banking awards.

Customers want a reason to care. They want to be inspired, and in some small way know that you understand their daily lives and how you can make it better, easier, more enjoyable. Emotional experiences are distinguishing category leaders from the increasing look-alike, seem-alike, be-alike brands. If you give customers what they really want in an emotional, experiential way, they will reward you with their loyalty and passion.

Here’s how to make that emotional connection:

Find out what your customers really care about.
Define a singular, emotional brand promise.
Every touch point must be an experience that supports your promise.
All marketing tactics must support and make sense with your brand promise (Why would the Vogue magazine, for example, buy a sponsorship at the X Games?)
Establish a method to translate and measure the consumer emotional insights into tangible and intangible value to your business.

Science increasingly tells us that emotion, not rational thought, is the key to consumer behavior. The more emotionally engaging the experiences you offer, the more effective your brand will be. By truly connecting with your customers, you can gain on ROI, Return On Involvement.

Businesses blame customers for not being loyal, but very few have given them a reason to be loyal. In Scott McKain’s book, “What Customers Really Want,” he describes the elements of the customer experience:

Superior information – This is just flat out knowing more about your customers than your competitors. You know which specific customers have what individual preferences, desires, and needs.
Systematic empathy – The ability to identify with and understand another person’s feeling or difficulties. There should be a system in place to respond to customer needs and create a positive experience for them when all is said and done.
Obsession for the sensation – You need to prove to customers that you care more for them than their money. Turn your business into one big “customer experience”. Create a feeling of passion and excitement for your customers. This will create passion and excitement in your customers for you.

By creating market connections built on meeting emotional needs, you can create a business that will turn customer passivity into passion.