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How buyers are controlling your business

August 8th, 2010

The research company GlobeScan annually surveys a thousand top thought leaders, as well as the general public, in a majority of countries around the world on some really pertinent issues. At the Sustainable Brand Conference in 2007, Rob Kerr, Executive VP of GlobeScan, discussed recent key findings. That research showed how rapidly the consumer’s sense of empowerment is increasing. Does the consumer believe they possess the power to influence a company’s behavior? Over the last few years there is strong and steady growth in mainstream activism in most countries.

It’s no surprise there is now a strong belief that a company should be rewarded for being socially and environmentally responsible, but there is an even stronger sense that a company should be punished for harming social and environmental health. In North America, 46% of leaders say they would reward a company for good behavior while 55% say they would punish a company for behavior that may damage social or environmental health.  Now, that’s a sense of empowerment.

These statistics indicate there are a growing number of individuals around the world who feel they can apply pressure that will force companies to comply with their desires. And, of course, they are right. Companies desperately need those who will purchase their products or services. There is no business without someone to do business with.

It is interesting that the sixties helped us distrust authority, but it took until now sometime after the turn of the century—to really understand that the buyer, not the seller, has the power.

The Brand is losing it’s power

July 26th, 2010

CoinsSo now, we come full circle. We, as a culture, have begun to awaken and realize that without a reason for being, we will end up in a lost, pointless existence. Now, everything has shifted. We want more—more than just “stuff” for the sake of having it. We want more than the emotional high of associating our personal worth with the brands we choose. We want less jargon and more for our money. We want to save the trees, save the planet, save the children, and educate the poor, and we want a product that does what it claims it will do. Or we’re out.

This is an exciting time for those who prefer telling the truth. It’s encouraging that we are all demanding more from the products and offerings we spend our money on. It restores a little faith in human nature. But it will also increase the demands on the business owners to pay attention to their customers.

A powerful force: brand

June 15th, 2010

A perfect example of this would be Coke. In blind taste tests there is no obvious favoritism, according to results published in the October 14th issue of the journal Neuron, but in taste tests where the brand is visible, Coke is preferred by 75%. Coke is a powerful icon worldwide.

The idea of brand became so powerful for a while. There was a short stretch in our history when making a product that was needed, performed well and satisfied its user was no longer the priority. In fact, belief in the strength of branding made us consider whether a quality product was even necessary. Even those of us who made a living by marketing and branding started to drink our own Kool-Aid. We no longer felt the need to actually tell the truth about the products or offerings, because the brand was the thing that people would buy. There was no need to obsess over the product; that was the old way of doing things. Now all we had to do was tell the potential buyer what to think through great branding. With enough really smart creativity, we would motivate the purchase.

The hard thing for me to admit is that it actually worked for a period of time. Most of the buyers jumped on the branding bandwagon and were genuinely influenced by the grand illusions presented by marketers.

Beginning the business of brand

June 7th, 2010

It’s generally understood that brand, as the term is now used, began in the twentieth century. Linguistically it has a long history, but as it applies to the stakeholder’s image of a business, it has a fairly short one. All its diverse origins and evolutions could be investigated, but it’s not necessary to go that deep into history to gain an effective understanding. Simple definitions are the most useful.

An academic would be disappointed without years of research and pages of references, but smart business demands only the essential elements be evaluated and applied. That’s the difference between people who like to talk about business and those who like doing business—theory vs. hands-on implementation. Often, it is also the difference between a useful consultant who has the track record to evolve your company and one that has an impressive sounding theory about “how one might grow one’s business.” Use caution.

The short story about brand goes like this: As the mass-produced products from the industrial revolution came to market, it created an identity problem in the local store. The question arose: How does one differentiate a new, modern product (like a healing salve, for instance) from the local product everyone has trusted for years? The problem of communicating the unique value of any given product was born. Eventually this created an entirely new industry category that became part art and part soft science, which is now referred to as branding.

The up and downside of a brand

May 28th, 2010

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Brand equity, brand personality, brand valuation, brand experience, etc. are all useful terms and they help us discuss many crucial aspects of the sophisticated marketing approaches we have developed over more than a century. Brand does have a strong upside and has fueled economic engines around the globe for years.

It also has a downside. As the idea of brand evolved, it grew in strength as a separate entity from the business itself. This caused a dual vision for those who were in charge and misperceptions grew. The ideas of business and brand became more and more disconnected. Separate departments formed with separate directors. Silos began to emerge within the corporate culture with conflicting agendas and goals. Branding’s power grew to a point where the old ways of running a unified business were left in the dust.

Unfortunately, branding lost its head and became ego driven. It seemed to be able to generate its own power with little accountability to the rest of the company. For a time, the old way of doing business appeared to be dead.

Self-indulgence in branding.

December 16th, 2009

My opinion is not a popular one in this industry, but the self-indulgent waste in the branding, advertising, and marketing was the thing that pushed me to the point of being philosophically opposed to the industry. I went on a quest to find a way to redeem “marketers,” and the result was a systematic, efficient approach that streamlines the evolution of a company, and subsequently, a new service offered by my company Pivot Lab. It’s the accumulation of years of soul searching, study, and practical application of the theories I collected along the way. These are the theories that succeeded in practical application in the real world of business. What use are ideas if they don’t produce the results we are looking for?

 

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