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    • October 2010
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Blog Archives for Marketing

Posts Tagged ‘Marketing’

Treating A Brand As An Asset

October 4th, 2010

During the course of a recent project for one of our financial services clients, an interesting thought occurred to me.

Thesis is a very successful Asset Management firm for whom we have just conducted a brand revue that resulted in a subtle but exciting brand evolution. Whilst working with them through the project, it occurred to me that although on the face of it our two companies are very different – Asset Management and Marketing – in actual fact what we do is remarkably similar.

Thesis help their customers by looking after sizable sums of their hard earned cash and investing it in assets which they then manage, nurture and develop to help the initial fund grow, to be bigger and better.

We look after what is in my opinion our customers’ most valuable asset – their brand – and advise them on how to manage it, nurture it and develop it to help it grow and be bigger and better.

Both of these, if done properly, require planning and strategic direction, sound management and excellent implementation which is what led me to the conclusion that we are, to all intents and purposes, in the same business.

I believe wholeheartedly that after its people, organisations should consider their brand as the most valuable asset they have. And accordingly, brands should be nurtured and developed in a planned and structured manner in order to maximise their impact.

Of course this doesn’t just mean changing the logo from light blue to dark blue or giving the name a slightly more contemporary typeface. It goes much deeper than this – requiring a real understanding of exactly what the brand means, what it stands for, and what customers can expect when they interact with it.

A brand, however large or small, acts as a shortcut for customers to aid their buying decisions. If they know what a brand stands for and what they can expect from it, then they transfer that knowledge onto whatever product or service is associated with the brand. It becomes automatic – I’m in a hurry, I need some baked beans, I grab a tin of Heinz because I know they will be good. Or, I need broadband, BT is more expensive than Broadband Direct Inc, but I buy it anyway because I know BT will deliver.

Brands are also living entities. They evolve and develop in line with companies, markets, customer needs and competition. Whilst they should always be true to a core set of values, how these are translated and communicated as companies grow and develop can alter. Take the multiple grocer retailers for example and notice how they move from service to value in their propositions. Petrol forecourt retailing is another good example of where a strong service message is underpinned by value.

In the world of financial management an asset requires careful investment and managing, and the same is true of brands. A well managed brand allows you to capitalise on opportunities, ultimately enabling you to attract more business, charge more for your product or service and to grow the business.

 

Jono Oswin

jono@designdistillery.com

Tags: Asset, Brand, Branding, logo, Management, Marketing, Value
Posted in News | No Comments »

Why Bother With Marketing?

September 23rd, 2010

I was asked this by a friend of mine recently, and because of what I do, my first reaction was to take slight umbrance at the suggestion that marketing could be anything but worthwhile.

However on reflection I thought that it was in fact a very good question to ask, and one which I am sure most marketers don’t stop to think about, so I considered it properly and want to share  the following thoughts.

To understand why you should bother with it, you first need to know what it is. To my knowledge there is no one single and accepted definition of marketing, but I like to think of it as the following;

“Marketing covers all activity that combines to deliver a positive customer experience across all aspects of their interaction with a product or service.”

From large advertising campaigns to answering the phones promptly and professionally, when your business interacts with a customer you are marketing to them, as a result of which they will take away an impression of your company. You can make sure that it is a positive one.

So, why bother with marketing? Well there is only really one reason really; To enable you to sell your products or services at the highest price possible.

And to sell at the highest price you need to seek out and deliver Customer Value.

Customer Value

Customer value is not prescriptive or standard but is the value that is derived from a product or service, as perceived by the customer. This may well be different for different customer groups and it can be defined with the following ‘equation’;

Customer Value = The Benefit – The Effort – The Risk – (The Price)

Benefit – The benefit that provides the perfect solution to a problem or need

Effort – Using insight to understand and adapt to what makes customers lives more convenient

Risk – Any perceived downside to purchasing i.e. quality, peer group opinions, time, availability

Price – This is in brackets because it should be accompanied with a word of caution. Countless surveys have been conducted, all of which consistently throw up the following information regarding price;

In Developed Markets, 90% of people prefer to buy on non-price based motivations

In Un-Developed Markets 60% of people prefer to buy on non-price based motivations

It is very easy to lower prices but extremely difficult to raise them, so price should only be used very tactically.

So to maximise Customer Value, we need to increase the Benefit and reduce the Effort, Risk (and Price), all of which is achieved through three core marketing strategies.

Differentiation

Be easy to choose.

If you are able to offer something different, your product or service will stand out from the crowd and be easier to buy.

The key drivers here are to be different and relevant – features that are important to the customer and highly differentiated from the competition.

But it is no good being different just for the sake of it. You can put pink spots all over your product to be different, but if it is not relevant you will do more harm than good.

Segmentation

Treat customers as individuals.

One size does not fit all when it comes to customers and their motivations. Old school targeting was about judging customers by profiling characteristics such as where they live, what they do, how old they are etc. However today that is not enough.Segmentation is about understanding needs and motivations. Different people enjoy the same things and share motivations not because of who they are but because of what brings them together.

Branding

Give people a reason to buy from you.

Brands are important. Even for small companies and organisations. They make a statement about what a customer can expect from a company, and this establishes a reputation that builds. I don’t mean what the logo looks like, but more what the company stands for – its values and how it treats its customers.

Brands are a short cut for customers in a busy, time poor world. If you know you can trust a brand any risk is reduced and you are more likely to buy the product or service.

In Summary

So, why should you bother with marketing?

It’s simple really;

To create Customer Value so that you can charge the highest possible price for your product or service.

Jono Oswin

jono@designdistillery.com

Tags: Benefit, Branding, Customer Value, Differentiation, Marketing, Price, Risk, Segmentation
Posted in News | No Comments »

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