Posts Tagged ‘positioning’

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New Work: Café for Change

Friday, August 14th, 2015

CafeForChange_CoffeeCup-01Did you know that your next cup of coffee could help eradicate poverty in coffee-producing countries? With more than $175 billion of coffee consumed globally every year, the industry generates tens of millions of dollars for their exporting countries, but very little of it goes back to the more than 26 million growers. As a result, most of the people that depend directly or indirectly on coffee production live in poverty or extreme poverty, with little hope for change, even with the best fair trade deals. Café for Change, an organization founded just last year, is working to change that, and we worked with them to get the brand off the ground. We worked on the brand idea of creating a fair and just world for all producers. The brand identity, featuring a coffee bean, beautifully emphasizes the need for change in the industry. The supporting visual identity system is modular, allowing for the brand to be used digitally, on packaging, and for other similar crops, like tea and chocolate, so they can generate their own movements.

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Market to the Brand Broadcaster: Are you tuned in?

Monday, April 27th, 2015

Marketers talk a lot about people we call influencers. Depending on the industry in which you work, you may hear them referred to as trend leaders, gadget geeks, early adopters/adapters or fashionistas. The implication is that there is a group of people in each market whose knowledge and passion for the category makes them worth more than their weight in gold thanks to the influence they can have on people who are not as “category involved” as they are.

Influencers might lead because of passion and knowledge, or they might lead because of status. Hip-hop artists are huge influencers across all kinds of categories, from cars to liquor to clothes. Movie stars can make or break brands.

These people, and others, influence us because they have access to media. They can easily broadcast their tastes.

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But media is quickly being democratized by vehicles that go by such mash-up names as blog, vlog and podcast. Personal playlists can be marketable commodities. In theory at least, everyone can be a broadcaster of some kind. Anyone and everyone can lead- so long as others choose to follow you.

These days, broadcasters are simply people who pass on their thoughts, opinions and passions to others. The number of those others represents the order of magnification these broadcasters can bring to their ideas. They can help you disproportionately, but they can also hurt you to the same order of magnitude.

At some point, perhaps we’ll be assessing media plans on their “cost per broadcaster” as well as their “cost per point of purchase,” having long ago done away with such archaic terms as “cost per thousand.”

In many categories, these citizen broadcasters have become the most important population of influencers. Know what they look like, have someone dedicated to reading their blogs, and realize that broadcasters can work against you as easily as they can work for you.

Austin McGhie is head of Sterling’s strategy team

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The Truth Will Win Out – Sooner Not Later

Tuesday, March 24th, 2015

Immediate access to the world’s information means a bit of retraining for those of us who grew up in the one-way persuasion school of marketing. The task before us is to adjust to the much more challenging “interactive-objective” school of marketing.

Today, our claims cannot simply be louder than our competitors to win out. Our customers can easily find out how our product or service actually performs- and trust me, if it’s at all important to them, they’ll be checking. If you’ve misled them through your claims in any way, they’ll know. If you’ve mislead them, they’ll leave- and they won’t be back.

This last ‘they’re not coming back’ observation is important. Too often, marketers act as if there are only two possible outcomes to an activity on their part- it works or it doesn’t- a one or a zero. If only life were that simple and binary. The reality is that if you set up an expectation you can’t meet or, worse, you actively mislead, you may never see those customers again. No matter what you say or do, they will be lost to you forever- and even the quietest of them will take a few friends with them on their way out.

It is critical to your success to make the most of this new reality of open access to information. Use truth as a marketing tool.

A few years ago a BMW die-hard compared the official BMW website to his favorite BMW enthusiast site. At the time, the BMW site was recognized as being at the leading edge of the art. But this person’s perspective was different. He liked the corporate site, but found it too one-sided, too perfect and too sleek. By comparison, the enthusiast site was more ‘real,’ more down to earth. The contributors loved the brand, but they loved it in its entirety- warts and all. They didn’t shy away from the imperfections, but celebrated them. The net result was a much more honest, emotionally engaging and deeper conversation about the BMW brand.

There is nothing wrong with perfection, but don’t allow it to blind you to passion. Embrace the truth in your brand, allowing your customer to believe you and incite an honest passion.

Austin McGhie is head of Sterling strategy

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Assume You’ll Only Get One Shot

Tuesday, February 17th, 2015

“Having lost sight of our objectives, we redoubled our efforts.

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If we don’t have the time to get it right up front, how is it that we find the time to fix it later? If there is a single message I hope to impart to you it’s this: don’t say anything, don’t do anything, until you’re convinced that you have everything right. Don’t execute a communications campaign (spending big money on ad space or time) unless you’re sure of your strategy and have perfected your tactics and tools.

Is your advertisement going to cut through the noise? If not, tell your agency the plan is on hold (as is some portion of their compensation) until it’s ready. The same goes for all areas of marketing communication. Needless to say, this approach will also add significant incentive for your communication partners to get it right.

Here’s the important part – the difficult part: Have the nerve to hold back until you feel the campaign/plan is perfect- until you have no reservations about it. There will be forces pushing for you to give the green light. Resist until you are ready.

Which seems like the more intelligent choice: To launch an acceptable campaign in May or launch a great campaign in July? It’s the difference of being invisible or getting noticed in the real world. It’s worth the wait. Try thinking of these as binary choices, between a 0 and a 1, because that’s closer to the reality of market impact than any incrementalist model.

Real marketing communication always does better when it moves from blunt instrument to scalpel. Blunt instruments need too much force behind them to work, whereas a scalpel just needs a perfect cutting edge. Start sharpening, and don’t cut until you find that edge.

Stay tuned for more from Austin McGhie, head of Sterling Strategy, on aligning your strategy with creative execution.

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The Dollar Value of Creativity

Monday, February 2nd, 2015

Here’s the thing about strategy. The people who matter, your customers, never see it.

Real people experience your product or service- the see, feel and touch your tactics- but they never, ever see your strategy. The corollary of this observation is that it can only be great strategy if it makes for great tactics. This one’s worth repeating:

It’s only great strategy if it makes for great tactics.

When I worked in the ad business, every now and then I’d hear people both inside and outside the agency say something along the lines of “Yeah, I know the strategy’s a bit flat, but the creative team will bring it to life.” That is dangerously lazy and wrong thinking.

Great positioning strategies are creative in their own right. When the strategy is great, it ends up being something fun and easy to communicate just as an idea. You will know that idea will provoke, maybe even disrupt. That idea will demand a response from the target audience- even when it’s still a raw idea, before it becomes a beautifully finished piece of communication. When you have a great strategy, you can already see the advertising, events and promotions falling into place.

When someone in a long-ago meeting suggested positioning 7-Up as “The Uncola,” everyone there knew that a breakthrough had been made, and that powerful communication programs would be an inevitable outcome. Similarly, Sterling Brands helped the Dove brand team create the “Real Beauty” strategy that has guided their brand so effectively, and Ogilvy & Mather (and others) created the communications programs that made it count.

Great positions are themselves marketable ideas. If you can’t immediately see the path from a positioning strategy to its tactics, you’ve probably got some work left to do on the strategy itself.

Creativity has greater dollar value in the marketplace today than ever before. The creativity that later lends itself to effective tactics, to the amplified effects of people sharing your ads around the Internet, to an event or experience that feels ‘just right’ to your target audience- all begins in your positioning. And in an Internet-based global economy, creativity has become the competitive differentiator.

For brands this means that you should seek out partners and people who are truly creative, but also smart enough to get strategy. They are few and far in between, so treat them well. They are the few who will make a difference in this new marketplace – and that difference is only going to get bigger.

Austin McGhie is head of Sterling Strategy

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What’s Your Back-Story?

Wednesday, January 14th, 2015

Almost all my thoughts on culture apply most completely to organizations in which the company and brand are one. But what about the consumer packaged goods category, where organizations are often built around multiple brands? After all, this is the birthplace of brand marketing. Such organizations are driven by management teams, R&D and marketing, not necessarily by the mission of a single and committed business entrepreneur.

Even here, I think there’s a cultural opportunity, but one better characterized as the creation of a back-story.

Consider a Hollywood character actor asking the writer: “What’s my back-story?” This question and answer helps the actor understand the role and properly position the character, an entire life might be created for her to draw from to create that perfect three-second shot. The ultimate goal is that we viewers, after a brief glimpse of a face or hearing a few lines, unconsciously assume an entire life and personality.

A classic example: Lexus and Infiniti

When Lexus and Infiniti were created, only one company was built on a back-story. The Lexus back-story was forged on an obsession with quality. The dealer and ownership experience was built upon the idea of an organization totally committed to quality and attention to detail, and the advertising drove that quality back-story home. Suddenly, established, venerable brands such as BMW and Mercedes discovered that many of the rational underpinnings (i.e., excuses for an emotional and ego-driven brand choice) they relied on to sell cars had been swept out from under them by Lexus.

Infiniti, on the other hand, failed to build a coherent and differentiated back-story. Instead, it created a Zen-like ad campaign, complete with rocks and trees. It was a storyline with no depth, a storyline few could understand. From the start, and despite a great product, Infiniti was destined to finish second in this race.

Cases in the CPG world

In the world of packaged goods, Crest created a successful back-story incorporating medical research and dentist approval. Tylenol did something similar, effectively using hospital and doctor recommendations as the back-story. Snapple marketed its (true) back-story as a small, passionate company as seen through the eyes and personality of its receptionist. Häagen-Dazs created the illusion of European ice cream. And every now and again, Gatorade trots out its real back-story, reinforcing its authenticity as the very first sports drink, one that was created for the University of Florida football team (the Gators) in the 1960s.

So what’s your backstory?

Use this question to give your product or service added depth, texture and personality. And while your back-story needn’t be completely factual, it must ring true. Think of it as the equivalent of Hollywood films that are “based on real-life events.” Not only will a back-story strengthen your brand, it will give your marketers the meat of a story to work with when talking about your brand. Your backstory is the anchor of all your communications. It makes talking about your brand that much simpler, and for consumers, it gives them a real reason to believe.

Austin McGhie is head of Sterling’s Strategy team.

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Keep It Real

Friday, January 9th, 2015

Welcome to 2015! We are going to usher in the new year with a few of Austin’s thought on effectively communication your Position. Let’s dive in with a lesson on keeping it real.

People don’t deal well with concepts. They prefer reality. Brand positioning is a good thing so long as it isn’t entirely conceptual. Instead, a brand position must be real, and it must be brought to life through the product or service itself. If there are multiple products under a brand umbrella, find the catalyst- the one that best exemplifies the position and makes it real to the audience.

All this is especially true if you want to change the way people see you. Yeah, maybe you can convince them you’ve changed just by telling them so, but wouldn’t you be more certain of their response if you could present some evidence?

When Oldsmobile told you it was “Not Your Father’s Oldsmobile,” the unspoken response was “Um…yeah, it actually is.” Oldsmobile had a catchy line, a good communication strategy, but didn’t have a product to back up its claims. Cadillac, on the other hand, didn’t need to say a whole lot about its new and younger outlook. It simply showed you the Escalade and- perhaps just as important- who was driving it.

Consider these additional examples:

-Target doesn’t claim to be hip. It just is. No amount of claiming to be chic can substitute for real-life presence of top designers and brands in its stores.

-Sun Microsystems may have been “the dot in dot com,” but it was the Java programming language that brought the company’s Internet-centricity to life, getting Sun into thousands of offices where it was subsequently able to sell a lot of profitable servers.

-You can say you’re in the entertainment business and that intuitive design is important to you. Or you can be Apple and simply introduce the iPod. And then follow it up with the iPhone.

-Motorola called itself Moto and tried to act very, very hip, but it didn’t work until the company launched the Razr. (Unfortunately, although the phone looked great, it didn’t work well, so success was fleeting.)

Just as a picture is worth a thousand words, a real product or service that brings strategy to life is worth millions of marketing communications dollars.

And lately:

The recent increase in ‘environmental branding’ is a testimony to the benefits of keeping it real. Niketown, Levi’s, Disney and Apple stores are all great examples of a brand being brought to life in a controlled retail experience. ‘Pop-up stores’ can also showcase a brand for the same purpose. That purpose, that focus, is almost entirely on creating a great brand experience.

So keep it real. Never forget that a real product and a real brand experience are generally worth more than all the words you write and all the marketing communication money you spend.

Austin McGhie is head of Sterling Strategy

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Like to Watch

Tuesday, December 16th, 2014

Watch what I do; ignore what I say.

Watch your customer. Just stand around and quietly observe. Retail expert Paco Underhill (a man worth talking to) has made a very good living out of simply watching people shop, asking a few intelligent questions, mixing in a healthy dose of experience and intuition, and forming conclusions.

Beware of the Hawthorne effect (i.e. once people know they’re being observed they change their behavior). Only after you’ve formed a sense of how people behave should you start asking questions. How their answers match (and don’t match) their behavior is where insights often reside. Why do they say one thing and do another? What can you do to take advantage of this attitudinal gap?

For years, consumer research told Kellogg’s that our customers religiously read the nutritional label when selecting cereal. Does that smell right to you? The real-world approach was to stand in a few aisles and watch the process. Not surprisingly, very few shoppers took the time to even scan the nutritional content. But, of course, they want to be seen as good consumers and parents, so they tell us that they did.

Combined with the notion of “brand as experience,” I think there’s a lot to be gained by regularly watching your customers walk through the experience you’ve created. Watch and learn.

In the same line, television ratings are also a joke. The important question to ask is not “What did you watch,” but “What did you do while you watched?” As we all know, viewers typically flick the channel changer at commercial breaks, making that program’s rating irrelevant to whoever placed ads during that break. These real behaviors matter.

As they search for insight and opportunity, marketers are even daring to go where no one has gone before- into the bathroom. Consider the highly successful extension of Mr. Clean by Procter and Gamble. Ever impressive in their observational work, P&G made sure to observe people first-hand. Researchers were reportedly amazed to learn that people dreaded cleaning the bathroom. They discovered that some people even cleaned their bathrooms in raincoats and boots, just to avoid contact with that specific filth.

Even with a preconceived idea that people dislike cleaning, there was absolutely nothing like seeing the real thing. As a result, Mr. Clean MagicReach was created and the painful experience was alleviated.

So, watch and listen to real people before you interfere with that reality by asking your questions- as insightful as they might be. Get the real story. Read or listen to Paco Underhill for more detail and lots of inspiration on this subject.

As the old aphorism says, look before you leap.

Austin McGhie is head of Sterling Strategy – stay tuned for more of his thoughts on the Customer, Positioning and the Future of all this stuff coming to the 3rd Button in the New Year.

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Drowning in Information

Monday, November 17th, 2014

In the words of Rutherford Rogers of Yale: “We’re drowning in information and starving for knowledge.”

Most marketers don’t need more research or more data. They need more insight.

That may seem a small point, or even an obvious one, but I remain astonished by the high ratio of money spent on research that doesn’t lead to action compared to money spent on research that does lead to action.

Information is useless in its own right, and far too many people and organizations are satisfied with spending millions of dollars on useless information. Yes, you need to know what’s going on out there- but only if you are actually going to do something with the knowledge. Only if that information somehow yields competitive advantage.

The missing ingredient can sound trite. Insight is a much-overused term in the world of marketing. But it’s insight that you’re looking for. It’s insight that’s worth paying for- not information.

So try this: review every “research” expenditure you have. Ask the same two questions of each program or project:

-Will it lead to an action?

-Will it lead to insights that will yield competitive advantage?

If the answer is no to both questions, don’t do it. Save the money and- perhaps more important- save the organizational time and focus that can be much better spent on insight generation.

Many companies seem to be so busy processing information that they lose track of its purpose. What if all that processing time and the minds that like to do that type of processing were replaced with insight-generation time and minds that like to create insight? It’s time to find out.

Austin McGhie is head of Sterling’s Strategy team

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Research is Reality Television for Marketers

Wednesday, November 5th, 2014

tvAs I’ve said before, only idiots and crazed entrepreneurs make decisions without research. A few of those entrepreneurs are legendary, precisely because they defied business or marketing logic and did what research told them not to do. This is how truly differentiated businesses are built and how many truly differentiated brands have been devised. This is why those legendary entrepreneurs were so wildly successful. But this is also why they are so few in number.

Smart marketers play the odds. On the occasions when they bravely ignore the odds, they do so at least knowing what those odds are. Smart marketers do their homework. They’re not bound by it or held hostage by it, but they do it. You’re not an idiot when you defy logic; you’re only an idiot when you don’t know what that logic is.

You must give a high priority to getting as close as possible to the real world. Participate personally. Get hands-on as much as possible. Stay in touch with your customer.

In the US, marketers and their agencies tend to live in cities such as New York, Los Angeles, Chicago and San Francisco. They tend not to shop at Wal-Mart, not to ride the No. 2 bus to work and not to consider Denny’s a big night out. In other words, they tend to be out of touch with their average consumer.

At the 2004 Academy Awards, held in March 2005, host Chris Rock did a remarkable thing. He took the television audience away from the beautiful people in the theater audience and to a nearby Cineplex, where he interviewed real moviegoers. None of these people had seen any of the best movie nominees, and most of them cited Saw, Barbershop and White Chicks as the best films of 2004. You can fight reality if you’re on a mission to raise the entertainment bar, but you’d better embrace reality if you’re a marketer.

So what to do?

Hire a company to conduct ethnographic-style fieldwork for you, and insist on coming along. Spend time with people in their homes, at work, on shopping trips. Our strategists often like to talk to people in “friendship pairs,” so they’re more comfortable with the process and more likely to call BS on each other. (There’s at least as much BS in reality-based marketing research as there is in reality TV.)

And do not- do not- mistake focus groups for real life. Recruiting a bunch of people from a database and setting them in a room with strangers, a moderator and a two-way mirror is about as far from reality as any of us will ever get without pharmaceuticals. People who agree to do this for money cannot be considered representative.

For reality you need to get back out into the real world. The closer you get to reality- to real customers moving through real lives with real feelings, fears and desires- the closer you are to the kind of insights that can really make a difference.

Austin McGhie is head of Sterling Strategy – stay tuned next week for more on the difference between data and insight.