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9 criteria for brand essence
1.
9
the ©2009 Conrad, Phillips & Vutech, Inc. criteria for brand essence Kirk Phillips, Conrad Phillips Vutech What every professional should know about branding. TM
2.
page
3 Definitions Index 7 Intangibles 14 Perception 17 vs. Commodities 24 Touchpoints 27 Responsibility 31 Essence 35 The 9 Criteria 59 Loyalty 68 Advantages ©2009 Conrad, Phillips & Vutech, Inc.
3.
For starters, brands
live in your head. ©2009 Conrad, Phillips & Vutech, Inc.
4.
How you think
+ feel about a brand is the brand. ©2009 Conrad, Phillips & Vutech, Inc. © Kellogg Company
5.
©®TM
A brand is not a name, trademark, logo package, or product. ©2009 Conrad, Phillips & Vutech, Inc.
6.
A brand is
a collection of your thoughts + feelings about your experiences with it. ©2009 Conrad, Phillips & Vutech, Inc.
7.
Thoughts and feelings
are intangibles. ©2009 Conrad, Phillips & Vutech, Inc.
8.
As compared to
tangibles... which you can seetaste or smell hear touch ©2009 Conrad, Phillips & Vutech, Inc.
9.
Intangibles you just
... feel ©2009 Conrad, Phillips & Vutech, Inc.
10.
“ hat you
make people feel is just W as important as what you make.” ~BMW ©2009 Conrad, Phillips Vutech, Inc.
11.
Riding a Harley-Davidson
motorcycle feels liberating. Sending an important package via FedEx feels safe. Experiencing Disney World with your children feels magical. ©2009 Conrad, Phillips Vutech, Inc.
12.
every day
p eople make hundreds of decisions based more on how they feel than on logic. Think about it -- clothes, cars, restaurants, entertainment -- business purchases too. ©2009 Conrad, Phillips Vutech, Inc.
13.
Examples of tangibles
+ intangibles Tangible: Asics Gel-Bandito are lightweight. Intangible: Asics Gel-Bandito help me run faster. ©2009 Conrad, Phillips Vutech, Inc.
14.
a formal definition
A brand is a product, service, cause or organization with perceived intangible attributes. ©2009 Conrad, Phillips Vutech, Inc.
15.
Intangible attributes must
be perceived Sounds obvious, but if you don’t perceive the intangibles, it’s not a brand. ©2009 Conrad, Phillips Vutech, Inc.
16.
Perception of intangibles
is in the eye of the beholder. Depending on the brand, some see ‘em; some don’t. ©2009 Conrad, Phillips Vutech, Inc.
17.
When you don’t
perceive an intangible, it’s a commodity to you. ©2009 Conrad, Phillips Vutech, Inc.
18.
for example You
say, “tomato.” I say, “Fox’s Fine Gourmet Ketchup.” To you, ketchup is a commodity. To me, here’s a difference t in ketchup brands. And vice versa, depending upon the category. ©2009 Conrad, Phillips Vutech, Inc.
19.
brand categories
Brand categories people care about most (among 440 brands surveyed): Luxury cosmetics Kids’ breakfast cereals Wireless handsets Luxury moisturizing skin care products Discount retail stores ~Brand Keys, 2009 Loyalty Engagement Index ©2009 Conrad, Phillips Vutech, Inc.
20.
commodity categories
Brand categories people care about least (among 440 brands surveyed): Banks Insurance Soft drinks (regular) Casual dining restaurants Bottled water ~Brand Keys, 2009 Loyalty Engagement Index ©2009 Conrad, Phillips Vutech, Inc.
21.
commodity
a product, service, cause or organization with no perceived intangible attributes. ©2009 Conrad, Phillips Vutech, Inc.
22.
On Wall Street,
commodities of the same type are interchangeable with each other. Soybeans are soybeans. ( nless you perceive a difference.) U ©2009 Conrad, Phillips Vutech, Inc.
23.
brand vs commodity
Brands compete on their intangible attributes. Commodities compete on price or convenience. ©2009 Conrad, Phillips Vutech, Inc.
24.
How do brands
get inside your head? Exposure Experiences Through exposure to Through actual experiences messages about the brand with the brand ©2009 Conrad, Phillips Vutech, Inc.
25.
Experiences = Touchpoints
Touchpoint is marketing jargon for a moment (time and place) when the brand comes in contact with the audience. there are lots of them ©2009 Conrad, Phillips Vutech, Inc.
26.
Even more than
you see here. NG BYI G TIN LOB RKE RSHIPS PROMOTIONS T MEN MA RE TU IN OR RA SPONSO ERN TE RN ITE TDO IA PA ET EV ING GOV ED SL CK M EN AR M OU S AG LE KE SS RIE TS NEW SA TIN A O T S ST M RECT MEN OR G L ACE IES DI CT P COMPA NY SPEA PR ODU KERS N CE VEHICLES ENDORSEMENTS AU DIE COMPA NY OFFIC RMS SAL ES U NIFO LE CO ES O SA S NT UTL F N AC ETS T O TIO CO MPA ETIN E TW CO IN WS IC G WEB SITE MAIL N PO A ITH IC RV T TA T SHO UN CT SE CO P P M M ARK DIRECT ER W NY M PA IT E OM CO NY TRAD H EM CO R PE SA ST TO RS RR TEL LE ON CU ES S ES V NE PE IN ITH PO L O PL ND TW E EN AC CE NT CO ©2009 Conrad, Phillips Vutech, Inc.
27.
Who affects these
moments of brand experience? Every single person in the organization contributes to shaping the audience’s experiences with the brand — even if they don’t come in contact with the audience. ©2009 Conrad, Phillips Vutech, Inc.
28.
Likewise, every dollar
spent and every decision made ... impacts the audience’s experiences with the brand. ©2009 Conrad, Phillips Vutech, Inc.
29.
For this reason,
branding is not solely a marketing function. It is an organizational function. ©2009 Conrad, Phillips Vutech, Inc.
30.
A brand will
not be strong unless the entire organization understands and embraces branding, starting at the top. ©2009 Conrad, Phillips Vutech, Inc.
31.
Every strong brand
stands for something — one differentiating attribute. Some call it the brand essence. ©2009 Conrad, Phillips Vutech, Inc.
32.
soul
heart mantra promise signature strength Others call it core strength core attribute the brand... description personality differentiator experience connection persona life force uniqueness individuality meaning central nature proposition ©2009 Conrad, Phillips Vutech, Inc. and so on ...
33.
Don’t worry about
the semantics. It’s the concept that matters. ©2009 Conrad, Phillips Vutech, Inc.
34.
The brand essence
is the single intangible attribute that differentiates the brand from competitive brands as perceived by the audience. ©2009 Conrad, Phillips Vutech, Inc.
35.
9
the ©2009 Conrad, Phillips Vutech, Inc. criteria for brand essence TM
36.
the
criteria for brand essence TM 1. Unique The essence of a brand is how it is different from competitors in the same category. for example If Apple (and its products) are friendly and approachable, then it is claiming that its competitors (PCs, etc.) are not. ©2009 Conrad, Phillips Vutech, Inc.
37.
the
criteria for brand essence TM 1. Unique People make decisions based upon how things are unique, not how they are the same. ©2009 Conrad, Phillips Vutech, Inc.
38.
the
criteria for brand essence TM 1. Unique T h i n g s y o u wi l l n e v e r h ea r s o m e o n e s a y: “ picked it because it was exactly like I every other car I test-drove.” “ e bought it because it was exactly like W every other house on the street.” “ married him because he was exactly like I every other guy I dated.” ©2009 Conrad, Phillips Vutech, Inc.
39.
the
criteria for brand essence TM 1. Unique the essence... gives the audience the primary reason to choose a brand over competitors’ brands. ©2009 Conrad, Phillips Vutech, Inc.
40.
the
criteria for brand essence TM 1. Unique be unique Own a single idea. ©2009 Conrad, Phillips Vutech, Inc.
41.
the
criteria for brand essence TM 1. Unique Examples of brand essence: Harley-Davidson = Liberating 3M Innovative = Visa Everywhere = Jeep Adventurous = ©2009 Conrad, Phillips Vutech, Inc.
42.
the
criteria for brand essence TM 1. Unique Brand positioning is... the relative differences between brands as perceived by the audience. ©2009 Conrad, Phillips Vutech, Inc.
43.
the
criteria for brand essence TM 1. Unique E x a m p l e s o f aut o m o ti v e b r a n d p o s iti o n s Toyota Prius = Fuel-efficient Hyundai = Affordable Porsche = Sporty Lexus = Luxury Lamborghini = Exotic ©2009 Conrad, Phillips Vutech, Inc.
44.
the
criteria for brand essence TM 2. Intangible One is no more independent on a Harley-Davidson motorcycle than another brand, but somehow one feels like it. Tap into what the audience feels. ©2009 Conrad, Phillips Vutech, Inc.
45.
the
criteria for brand essence TM 3. Single-minded One word to describe the essence is ideal. Maybe two. More than two words indicates that the brand has no focus. Because a brand (by design) delivers a unique experience, having no focus makes for a weak brand. ©2009 Conrad, Phillips Vutech, Inc.
46.
the
criteria for brand essence TM 3. Single-minded “A brand becomes stronger ... when you narrow its focus.” ~Ries Ries, The 22 Immutable Laws Of Branding ©2009 Conrad, Phillips Vutech, Inc.
47.
the
criteria for brand essence TM 4. xperiential E The essence captures what the audience feels during an experience with the brand. Example “Driving a Volvo makes me feel that my family is safe.” ©2009 Conrad, Phillips Vutech, Inc. © Volvo Trademark Holding AB and/or Volvo Cars
48.
the
criteria for brand essence TM 5. Meaningful There is no point in identifying an essence that is irrelevant to the audience. Essences that don’t connect are the reason behind many failed brands. Research it. ©2009 Conrad, Phillips Vutech, Inc.
49.
the
criteria for brand essence TM 6. Consistently delivered If the proposed essence is not consistently experienced then it isn’t the essence. Example If magical is Disney’s essence, then every trip to Disney World must deliver on that promise. ©2009 Conrad, Phillips Vutech, Inc. © Walt Disney Company
50.
the
criteria for brand essence TM 6. Consistently delivered Consistency = “No Surprises” ~ People seek comfort, stability, and predictability. ~ The success of all chains is based upon consistency of experience. (Think McDonald’s.) ~ Consistency of experience is the basis for brand loyalty. ©2009 Conrad, Phillips Vutech, Inc. © McDonald’s Corporation
51.
the
criteria for brand essence TM 6. Consistently delivered Former Holiday Inn tagline: “The best surprise is no surprise” ©2009 Conrad, Phillips Vutech, Inc. © IHG
52.
the
criteria for brand essence TM 6. Consistently delivered Maintaining consistency ... is a major challenge for most organizations. Can your organization deliver? ©2009 Conrad, Phillips Vutech, Inc.
53.
the
criteria for brand essence TM 6. Consistently delivered “One of the few things worse than no promise ... is a broken one.” ~Scott Davis, Brandweek ©2009 Conrad, Phillips Vutech, Inc.
54.
the
criteria for brand essence TM 7. uthentic A The essence must be credible or the brand will be rejected. To find out what the audience believes about your brand, ask them. ( t’s okay for the brand essence to be aspirational, but only I if your audience believes you can deliver on the promise.) ©2009 Conrad, Phillips Vutech, Inc.
55.
the
criteria for brand essence TM 8. Sustainable A brand’s essence is baked in. It doesn’t change. Ever. ©2009 Conrad, Phillips Vutech, Inc.
56.
the
criteria for brand essence TM 9. Scalable Will the essence work for brand extensions? Will it work as the brand’s opportunity grows? ©2009 Conrad, Phillips Vutech, Inc.
57.
9
the ©2009 Conrad, Phillips Vutech, Inc. criteria for brand essence 1. Unique 2. Intangible 3. Single-minded 4. Experiential 5. Meaningful TM 6. Consistently delivered 7. Authentic 8. Sustainable 9. Scalable
58.
Branding, then, is...
defining, promising, and delivering a unique brand experience consistently. Branding distinguishes the brand from its competitors and builds preference. ©2009 Conrad, Phillips Vutech, Inc.
59.
ROI of branding
Branding generates trial + loyalty. Trial Loyalty (trying the brand) results results from having from being intrigued a series of consistent, by the promise of the singular and favorable brand experience. brand experiences. ©2009 Conrad, Phillips Vutech, Inc.
60.
The ultimate goal
of branding is loyalty. ©2009 Conrad, Phillips Vutech, Inc.
61.
A loyal audience
seeks repeat brand experiences. And recommends the brand to others. ©2009 Conrad, Phillips Vutech, Inc.
62.
brand
B rand loyalty drives up to 70% of all purchase loyalty decisions. ~ Kuczmarski Associates ©2009 Conrad, Phillips Vutech, Inc.
63.
Loyal customers, on
average, brand are willing to pay a 20% loyalty premium for their brand of choice. ~ Kuczmarski Associates ©2009 Conrad, Phillips Vutech, Inc.
64.
Unlike branding, promotion-
based marketing is often centered on pricing strategies and aims for short-term results. ©2009 Conrad, Phillips Vutech, Inc.
65.
Branding generates long-term
results, but requires commitment to a long-term strategy. ©2009 Conrad, Phillips Vutech, Inc.
66.
“ rands are
not built overnight. Success is B measured in decades, not years.” ~Ries Ries, The 22 Immutable Laws Of Branding ©2009 Conrad, Phillips Vutech, Inc.
67.
Loyalty
Brand Loyalty Marketing Reinforcement Beliefs Reinforcement Attitudes Trial Expectations Awareness time ©2009 Conrad, Phillips Vutech, Inc. ©1994 Coalition for Brand Equity
68.
a strong brand
is... 1. cost-effective to sustain for example Maytag’s brand essence of dependability as symbolized by “the lonely repairman” campaign has been running for over 40 years. ©2009 Conrad, Phillips Vutech, Inc.
69.
a strong brand
is... 2. a foundation for new launches for example ~ Tide extended its brand within its category, adding Tide liquids, Tide To Go, etc. ~ he Gap spun off sub-brands to serve different T audiences through babyGap, GapKids, etc. ~ Disney moved into new categories with Disney cruises, retail stores, broadway shows, etc. ©2009 Conrad, Phillips Vutech, Inc.
70.
a strong brand
is... 3. an ideal partner for co-branding opportunities for example ~ Intel positioned itself as the preferred microchip for all brands of personal computers through its “Intel Inside”campaign. ~ One of Edie’s Loaded frozen dairy desserts features Nestlé Butterfinger candy pieces. ©2009 Conrad, Phillips Vutech, Inc.
71.
a strong brand
is... 4. a barrier to competition Owning a position in the minds of the audience often discourages competitors from head-on competition. for example ~ Imagine the difficulty in trying to replace iPhone as the smartphone with the most applications. ©2009 Conrad, Phillips Vutech, Inc.
72.
Now that you
have a basic understanding of brands + branding, how will you use it? How will you better define and leverage the unique experience of your brand with your audience? We can help. We are a full-service branding and marketing firm. Our process helps organizations build brand equity by in- fluencing the desired behavior. For more information or to discuss Download or print this document next steps, please contact me: from these sources: Kirk Phillips www.cpvinc.com Conrad Phillips Vutech www.slideshare.net/kirkphillips/the-9-crit kirk@cpvinc.com 614-224-3887 www.cpvinc.com ©2009 Conrad, Phillips Vutech, Inc.
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