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ExecBlueprints-Developing Your Branding Strategy
ExecBlueprints-Developing Your Branding Strategy
ExecBlueprints-Developing Your Branding Strategy
com
ExecBlueprints
Action Points
I. Advertising Advertising
Advertising agencies are in the business
of creating brands for their clients but
may shortchange themselves in the
process.
Developing Your
Branding Strategy
to Boost Sales
Dan Gearon
Chief Executive Officer, Gearon Hoffman Inc.
Patrick Goodness
Chief Executive Officer, The Goodness Company
V. Essential Take-Aways
A brand is more than a symbol. Its an
ever-evolving relationship between a
company and its customer.
Michael P. Smith
Owner and Principal, Renard Group Advertising
A
Contents
About the Authors . . . . . . . . . . . . . . . . . . . . p.2
Dan Gearon. . . . . . . . . . . . . . . . . . . . . . . . . . p.3
Patrick Goodness . . . . . . . . . . . . . . . . . . . . p.6
Michael P. Smith . . . . . . . . . . . . . . . . . . . . . p.8
Ideas to Build Upon & Action Points . . . p.10
brand is more than just a label. Its the key to making an emotional connection between a company and its customers.
Because branding in the twenty-first century is all about the
emotional connection, the construction of the value proposition is most
effective when it begins with the customer. When the customers emotional needs and wants are established, its then a matter of finding
product attributes that will make a connection with those needs. The
values and qualities associated with the client are, in effect,
burned into the minds of its customers, creating a pathway for relationships and loyalty. To be successful, a brand must be integrated
throughout a companyfrom the top-level executives to the customer
service staff to the packaging and handouts at a trade show. Otherwise,
all the time and energy spent building the brand will have been wasted.
Advertising agencies attract creative people with outgoing personalities who think outside the box and can see the possibilities that
lie beyond accepted practices, but often fail to do for themselves what
they do for clients: advertise to grow their business.
Copyright 2007 Books24x7. All rights reserved. Reproduction in whole or part is prohibited without the prior written permission of the publisher. This ExecBlueprints document was published as part of a subscription based service. ExecBlueprints,
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Patrick Goodness
Chief Executive Officer, The Goodness Company
Michael P. Smith
Owner and Principal, Renard Group Advertising
Books24x7, 2007
ExecBlueprints
Dan Gearon
Chief Executive Officer, Gearon Hoffman Inc.
customer. After clearly and succinctly defining the emotional dimension we wish to brand on, we then
explore rational product attributes
that best support the brands emotional benefit. Our value proposition
will always be based on the emotional reward of our brand, not the
product attributes. This is a very challenging approach, and it requires
experienced people and a client that
is willing to invest time and product
development into the process. But we
have had great success with it.
Brown & Co., OneBeacon Insurance,
CGM Funds, and Scottrade have all
benefited from our approach.
It is difficult to estimate the
impact of branding on sales in
advance. There are too many variables to account for with a high
degree of confidence. Nevertheless,
there are many forecasting models
available, and they are expensive.
The Internet has made it easier and
less expensive to do online positional testing. An online trial predictor can provide a metric of the
initial trial and repeat purchase of
a new branding initiative, against
which the firm will apply standard
benchmarks. While lacking the
implied precision of algorithmic
forecasting models, it is a costefficient green light metric for
launching a market test.
Dan Gearon
Chief Executive Officer
Gearon Hoffman Inc.
In summary, in developing a
branding strategy, it is important to
avoid focusing on product attributes. It is more effective to think of
a brand promise that connects
emotionally with a customer. The
toothpaste brand does not just
make teeth whiter. It makes the customer feel confident, empowered,
and sexy. Southwest Airlines does
not sell low fares. It sells freedom.
Constructing a Branding
Initiative
There are two types of branding:
initial branding and re-branding, or
repositioning. The mission of
branding is to identify a perceptual
dimension a brand can occupy that
Dan Gearon
ExecBlueprints
Dan Gearon
(continued)
Supporting
Product
Attributes
Emotional Reward
Books24x7, 2007
ExecBlueprints
Dan Gearon
(continued)
The Internet
The effect of the Internet on branding and return on investment has
been substantial, but few if any
brands have succeeded only from
Internet advertising. Television and
radio are still the most effective
media outlets for establishing an
Books24x7, 2007
Dan Gearon
ExecBlueprints
Patrick Goodness
Chief Executive Officer, The Goodness Company
The term branding has a long history that sheds light on our current
usage of the term. From ancient
times to the present day, branding
described the act of using a searing
tool to mark livestock as property.
Today, the art and science of branding connotes the act of cognitively
and emotionally burning ideas,
values, and qualities generally associated with products, services, or
companies into the minds of consumers, creating a conduit for
customer relationships and loyalties.
Whether used on an animal or
even a human, a brand has been historically implemented for purposes
of identification. Modern branding,
however, is a quest to convey to
consumers a series of identifiable
and even defining attributes that
create a consumer-focused relationship with a product, service, or
company. As such, branding is
now synonymous with the consumer science and advertising art of
relationship-building.
When asked to define the term
brand, many will rudimentarily
assign trademarks, logos, or other
graphical elements as one and the
same. While these graphical representations are the most clearly
identifiable visual signifiers of
brands, they are in fact defined by
the subtext of the relationship
between the consumer and the
product, service, or company.
Branding is a fluid science that
evolves as our relationships evolve.
As a company works to market its
products to new target segments,
the brand itself will change in
relation to the targeted consumer.
In the advertising industry, most
branding initiatives come from the
top down, typically from the chief
executive officer, and often involve
the input of creative directors and
Books24x7, 2007
At the Goodness
Company, our optimal
branding tool is our
corporate Web site.
Patrick Goodness
Chief Executive Officer
The Goodness Company
the account team. However, the customer should be the starting point
for every branding effort. If branding is the art and science of relationship building, we must first
know the people with whom we
desire a relationship. We cannot
impact or affect their senses and
decisions when we have not taken
the time to understand what makes
them laugh, cry, be angry, or be sad.
It is only when we take the time and
energy to listen to and understand
our customers that we can discern
the optimal response indicators to
create branding that elicits the
desired call to action.
In branding, honesty is critical.
And customers are as honest as they
come. If customers like your product and find it useful, theyll buy it.
If they dont like it, or if the value
proposition is weak, your sales will
reflect this customer disconnect.
Often, the best decisions for branding development are derived from
direct customer conversations and
experiences.
Ad Agency Branding
Strategy
As an advertising agency, it is critical to have your own branding
strategy. At the Goodness Company,
our optimal branding tool is our
corporate Web site. Our richly
visual site is thought-provoking
and emotive without engaging in
Patrick Goodness
Chief Executive Officer
The Goodness Company
ExecBlueprints
Patrick Goodness
(continued)
allow us to invest more of our energies into their continued growth and
success. And remarkably, they often
feel the same way about us.
The best advertising agencies generally intuit their ideal client type and
create branded materials that speak to them. The best advice I give to agency
colleagues is to be clear on the clientele you desire. An advertising
agency, much like an interior decorator, must choose clients that reflect its
personal style. We cant be a great fit for everyone. And by trying to appeal
to everyone, you lose your vision in the process and inevitably end up in a
quagmire spending the bulk of your time appeasing clients who will never
be happy with your value proposition.
Patrick Goodness
Chief Executive Officer
The Goodness Company
Books24x7, 2007
Patrick Goodness
ExecBlueprints
Michael P. Smith
Owner and Principal, Renard Group Advertising
Keys to Success
Happy
Employees
Worthwhile
Service
Ad Agency Success
Books24x7, 2007
Michael P. Smith
Owner and Principal
Renard Group Advertising
Training Employees
Typically, advertising agencies look
for people with good personalities
good people with a gift for gab. It
is also important to be able to think
outside the box. Far too much creativity is lost by narrow parameters
and accepted practices. In addition,
there are numerous little signs that
someone is suited for advertising. I
used to tell prospective employees
to feel free to smoke during an
interview. The smart ones looked
around first to see if there was an
ashtray, and less successful candidates would light up and put the
ashes in their hands.
Michael P. Smith
ExecBlueprints
Michael P. Smith
(continued)
It is part of the agencys job to think outside of the box and come up with
innovative ideas that are unusual and will be successful. A Chinese
restaurant run by a couple named Wong asked us to develop an advertising
slogan for their restaurant, and we came up with the Royal Pagoda, where
two Wongs make it right. Many felt it might offend ethnic sensibilities.
However, the Wongs loved it and have now used it for some 20 years.
Michael P. Smith
Owner and Principal
Renard Group Advertising
Books24x7, 2007
Michael P. Smith
ExecBlueprints
V. Essential Take-Aways
Books24x7, 2007
ExecBlueprints
10
(continued)
?
10 KEY QUESTIONS AND D ISCUSSION POINTS
1
Who drives branding initiatives at your company? Who are the other key players in
branding? Is this arrangement optimal? Why or why not?
What data do you use to construct benchmarks for branding initiatives? Do you expect
this data to change in the next 12 months?
Could you give an example of a branding strategy that was particularly successful in
boosting sales? What made this branding strategy so successful? What learning can
be taken from this experience?
On the flip side, can you give an example of a branding strategy that was not
successful in boosting sales? What learning was taken from this experience?
What process is used at your company to develop branding strategies to boost sales?
Do you expect this process to change in the next 12 months? Why or why not?
How can you accurately estimate the impact of branding on sales? What steps can be
taken if the branding strategy is not achieving the expected results?
How many new branding campaigns do you expect to implement over the next 12
months? How does that number compare to last year? What do you hope will be the
effect on sales?
How do you calculate ROI for branding initiatives? How can ROI be improved for these
efforts?
10
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