With the announcement of the impending bankruptcy of Blockbuster, it seems that there are a number of companies, and, for that matter, industries, that may bite the dust as a result of consumers going more online to complete their transactions. While movie rentals make a lot of sense as an online product, there is still an opportunity for companies to build loyalty through an effective brand strategy and execution on a consistent basis.
One of those industries is travel—and there probably hasn’t been a category that has been revolutionized by the Internet as much as this one. Whether it’s airlines, hotels, car rentals, cruises, or vacation resorts, almost everything necessary to “purchase” the service can be done quickly and easily with a few keystrokes. Now if we can just push “escape” and be transported to our destinations, we would have it all under control. Unfortunately that isn’t going to happen any time soon so the need for personal service and brand loyalty is more important than ever. While we have a number of choices in making our travel plans—from the direct company websites to the many travel consolidation sites out there—there is still a need to have a source for information and help to make the right decision. We still want an expert to give us the advice that can, not only make the trip more productive and less stressful, but also we still want to be sure that we aren’t paying too much.
This need is where the companies must make their sites as helpful and as easy to navigate as possible with information and follow up to make sure that you are comfortable with your plans and arrangements. I recently was interviewed by marketing consultant, Terry Brock, for a client of his (travel agents) and you can view those comments by clicking on http://www.youtube.com/watch?v=jqCH_2NjDj8
Certainly this is an industry that has been reeling from all the changes, but it has survived. I believe the reason is that despite all the technology at the consumer’s fingertips, they still want help to relieve them of the emotional stress of travel before their departure. Sometimes this is still a real person, or more often than not, it may be a user-friendly program that makes it easy to get the information and the reservations. I personally use Travelocity as my basis for travel not only because I’m used to it, but because my profile is already loaded and my preferences are in place. More important, however, is the follow up and verification that automatically appears even if haven’t confirmed the trip yet. I also use Hotwire, Kayak, and the dedicated sites to check price, but the brand preference keeps me coming back to Travelocity.
We still have preferences to certain brands. Southwest has consistently reinforced its brand to become the nation’s leading airline. Hilton and Marriott have established several brands to appeal to a variety of travelers’ needs. Enterprise has grown to the top of the car rental business through its personalized service. It’s still all about differentiating your brand by creating a distinctive value and then following it up with a personalized service—either in person or online.
I’ve talked a lot in these articles over the years about the need for consistency in developing and maintaining a successful brand strategy. There’s no doubt the brands that have the most equity with their customers also are those that adhere to the strategy with every decision made. Whether it’s the marketing message or the product design, it’s important to maintain a unified front in all aspects of the brand’s execution. Unfortunately, many companies adhere to strictly to the adage:
“If it ain’t broke, don’t fix it.” In doing so, they often ignore the changes in customer trends and expectations as well as changes in the economy and the competitive marketplace.
I’m reminded of a Wall Street Journal article I read not long ago about the taxis in Mumbai, India. For years, the streets have been “served” by a collective fleet of over 50,000 cabs and over 200,000 taxi drivers. To say that most of these taxis are uncomfortable would be an understatement. The black and yellow cab is as much an icon in Mumbai as the yellow cabs of New York City. However, the fleet is made up mostly of a model called the Premier Padmini—a version of an Italian Fiat model which ceased production in 1966 or the Indian manufactured version, the last of which rolled off the production lines locally over 10 years ago. They are uncomfortable, non-air conditioned (something I can’t imagine in Mumbai) with scrap metal patches and parts to keep them on the potholed riddled streets with suspensions that gave out long ago. This leaves the passengers in almost as bad a mood as the veteran drivers who insist on keeping their old cars in service.
Competition has picked up with newer, more comfortable cars driven by courteous drivers who will take appointments, provide air conditioned comfort and a much happier clientele. However, the old line is resistant to change insisting that the old jalopies are more economical and part of the Mumbai street scene. The veteran drivers prohibit the new taxis from cueing at the most desirable street corners. They block gas stations so that only older cabs can refuel. They even physically attack the new breed of drivers to intimidate them in a way that a gang of hoodlums protect their territory.
The customers? They overwhelmingly would prefer the new taxi service, but they too are intimidated by the older drivers and fear for their safety. In fact, the new fleet receives over 10,000 calls a day for reservations. The issue has gone to court to allow free competition and calling for enforcement of the law to prevent further violence, or at least the intimidation.
While this may be an extreme example,it does demonstrate that companies often ignore the desires of the customers in order to keep doing what they’ve always done. It’s easier, more comfortable, and less chaotic to simply sticking with the same old, same old.
Today’s successful brands ignore the challenges and instead develop their plans to grow by keeping up with the changes in customer demands and expectations. To beat the competition, we can’t resort to roadblocks or intimidation; we have to exceed those expectations and stay in front of the competition with better marketing and better branding. Kodak had to change from a brand built on film and processing to one on the cutting edge of digital technology. Google could have stuck with being the world’s largest search engine, but change brought online videos, social networks and more. Apple could have stayed with a strong product brand, but retail brought change that helps both the customer and the products. The brands that are in an ongoing state of change and modification—based on what the customer wants—are the ones who continue to grow and succeed. While Mumbai’s citizens suffer through an antiquated system of transportation, the newer, more comfortable brand of taxi is slowly but gradually changing the landscape and providing a long-awaited change.
We all talk about customer relationships but do we really take the time to build a special bond with our customers? To be successful, your store has to become something special to each customer and the best way is to become a good neighbor.
In their glory days, department stores were a special place and important citizens in their communities. They were a part of our lives and special purchases had to come from these special places. The box and the label on it were sometimes as meaningful as the actual gift inside. With consolidation and changing customer trends, the specialness of department stores has faded and they simply aren’t thought of as good neighbors any more. Building your brand requires being a good neighbor,however, as much now as it did back then. Here are five ways you can become the preferred brand by being a good neighbor.
1. MAKE IT SPECIAL. Stores are always having special events, but those that are successful get the local community involved. Bass Pro Shops recently held its big Summer Camp Out, but really made it special by turning their parking lots and stores into a place for all the fun and games of summer camp and their employees and the customers had a lot of fun. And they bought a lot of stuff, too. They did the same with Santa’s Workshop at Christmas. Not a new idea, but the involvement of making this a special outing for the entire community (with a lot of media coverage as well), made this already special store, an important part of the community’s holiday festivities. 2. MAKE YOUR PEOPLE THE STARS. Store associates work long and hard to help make the sales goals. But, they really enjoy and will put forth extra effort to do something special for the community. Walmart’s support of children’s hospitals in every market is a great example of getting their associates and the customers involved in a common cause. Whether it’s a bake sale, car wash, or answering phones at a telethon. These associates love what they’re doing and it carries on through to the sale floor and registers. 3. KEEP THEM LOYAL. In my days in the drugstore business, I found that the best performing stores also had the managers and staff with the longest length of service. That’s not by accident. They build a team and they work together to know their customers…and they do. When customers come in and call the manager, the pharmacist, the photo person, the front register clerk by name, you know you are not just a corner store, you’re a good neighbor. Walgreen’s for years has outperformed the industry in sales per store and one of the reasons is their longevity of store staff who know their customers well.
4. SUPPORT LOCAL CAUSES. Granted as chains with hundred’s of locations, your companies have to keep some control on this. However, encouraging each store to support some local teams, charities, or causes (sometimes the local team like the New Orleans Saints last year become a rallying point for all of the associates to show their pride.) These don’t always require funding. By supporting these local events with in-kind or personal helpers, the store becomes the star and a good neighbor. 5. INTERACT WITH YOUR CUSTOMERS. I heard a retailer from Chihuahua, Mexico, talk recently that his store managers actually become celebrities in their neighborhoods and towns. So much so that local children want their pictures taken with the manager! Your stores are important to the communities, but the people need to see you and know who you are on the local level because you are an important person in town and represent the chain.
As I’ve said many times, without a relationship with your customer, there is no brand. Being a good neighbor is having a positive relationship.
Note: With conversion from Blogger to WordPress, this month’s article was delayed. Let me know if you have any trouble opening or viewing. As always, your comments are welcome.
This year’s GRMA Leadership Summit was a real eye-opener for those of us who monitor retail trends and opportunities. There’s no question that to build our brands today means that we have to be more responsive to change than ever before. It’s not just a matter of getting on the bandwagon of the new technologies and media, but it requires marketers to re-think their programs and strategies and to constantly be ready to adjust how they are going to reach today’s consumer with their messages. Two of the speakers at this summit, Ray Kurzweil and Rob Conway were particularly visionary with what they see happening in technology and mobil media. I wanted to share my notes with you this month to give you some of the highlights as I reported in GRMA’s blog as well. These presentations brought a telescopic look into the future. The speakers were beyond being experts. They brought us an opportunity to look down the road at how technology is going to effect retail business but how it will affect our lives in the years to come.
You should have been there.
8:00am to 9:30am KEYNOTE ADDRESS: Innovation in an Era of Accelerating Technologies
Ray Kurzweil, Famed Futurist, Visionary and Bestselling Author,
Transcend and The Singularity is Near
Reading Ray Kurzweil’s bio and introduction, I knew we were in for an experience. When he started to speak and modestly talked about some of his accomplishments and the people he has dealt with, I was in awe and felt I could relate to those who have climbed the mountain for an audience with the Dalai Lama. Here is renowned inventor and genius, who not only has lived through the information boom of the last 4 decades, but has been instrumental in much of what has happened, and has predicted much of it. The “restless genius” (as the Wall Street Journal has called him) said that the pace of change is accelerating exponential and that the next decade will bring in unprecedented change and innovation. The fact that 400 million people already on Facebook—an idea that hatched just 6 years ago—is just an indication that soon everyone on the planet will have a cell phone and that will bring them access to knowledge that has never been so readily available to everyone.
While the growth is exponential, the size of the hardware reduces at a similar rate (think Univac compared to iPhone). And this underscores the potential that we will be able to infuse our bloodstream with mini-computers the size of a single cell that will help ward off cancer or administer insulin or other antibodies is just the tip of the iceberg when it comes to the potential for changing life as we know it. And we will know it longer than ever. Some 15 years more to be added to our life expectancy—so much for retirement soon. Solar energy is also growing exponentially and within 20 years, Ray predicts, it will replace fossil fuels as our energy source. For us marketers, we need to know that human intelligence is growing in the same way and if our brands are going to continue to succeed in the long run they must grow and change along with the smarter customers. In education, we need to recognize that all the new technology provides knowledge on their belt and in their hand. So we don’t need to teach them facts as much as helping them know how to find the information with the available tools. We talk about social networking and mobile marketing and we are still learning. But the realization of the revolution that we are in requires us to think more outside the box than ever and tap in to the expertise that is required (but is available) to help our companies, our brands, and our people keep up with the pace of an ever-changing world.
Check out www.kurzweiltech.com for more information on this brilliant man and his teachings.
9:30am to 10:30am Integration of Mobile and Wireless Technologies and
The Real Impact on the Consumer Experience
Rob Conway, CEO, GSMA, recognized as the most influential person
in telecom in 2009 by GTB Power 100 Magazine
“GSM is the technology behind the mobile platform that enables universal interaction via mobile devices. “
And if you stop and think about this statement, you’ll understand what an important role Rob Conway plays in the future of the world today.
“Mobile 4.5 Billion Connectiona, Fixed 1.1 Billion Lines.
Mobile will overtake desktop users in 2013 (predictions)”
Mobile marketing is not just an important trend. It’s obviously the future of where we need to be if we are going to keep pace with today’s consumer. They are moving there fast and we, as marketers, need to run to keep up with them. Google has now said that they are “mobile first” and judging by the proliferation of Apps being sold to iPhone users like myself, they are right on track.
Only 4% of advertising spending is online today, but will grow exponentially as more people go mobile for information and more. Look at how many iPhones have been sold. And the iPad, according to Rob, is the next revolution that has already started. One of my fellow attendees demo’d his iPad for me and I was amazed and wanted one for myself. We will soon, I know. This is just the tip of the iceberg when you consider that an average iPhone user downloads 10 Apps per month and spends 30 minutes a day doing research. It’s not just a phone for sure.
Brand Apps are the next big opportunity, but you have to make sure it’s not just a key to getting to your ad. It has to provide a service (like priceline.com’s app—hotel negotiator. Check it out.) If makes the user’s life easier, then there is potential—big potential.
And iAd’s are on the way. Where you’ll be able to advertise your store, product or service to just the right person via their mobile device right when they want it and where they want it. And they will be able to act upon it right away in real time.
I could go on. Augmented reality will help customers more than ever to find your store and your brand right where they are. And mobile coupons are way more than a store or product coupon that you can print out. They convert your device into the coupon which can be redeemed with a wave of your iPhone at the store. Wow.
A couple weeks ago in San Francisco, I heard more information about mobile and Internet marketing, as well as social networking. It was more than my 64KB mind could absorb! And it wasn’t redundant at all. There is so much happening today and retailers and marketers are moving much more quickly now to take advantage of the tremendous growth being experience both by the customers and by the companies staying ahead of the game.
There was a great deal of revelation for me as I listened intently and then cast my evaluation of the speaker immediately via text message on my iPhone. Only thing that was challenging was spelling the presenter’s name correctly. Some fascinating information on how fast it’s growing. For example, the iPhone I have has more power than a seven year old Mac computer. So we have PC’s in our pockets, not cell phones or cameras. On average today in the US, over 400 text messages per person are being sent from one pocket PC to another. We have surpassed the rest of the world, which we were trailing significantly just a couple years ago. It took 2 years for iTunes to download 300 million apps. They hit the 3 billion level only 3 months after hitting the 2 Billion mark.
I could go on, but I think you get the point that this revolution in communication and marketing is moving faster than anything we’ve ever seen and it’s only going to accelerate as iPads and Kindles become commonplace. Yes, Peter Drucker was right about the importance of innovation several decades ago, but he is prophetic today.
The companies making all this technology work for them are the ones who are innovating with the way they reach their customers in their new mobile lifestyle. But let’s not forget the other key element…marketing. As I said in an online interview (link to it) a few months ago, if we get so caught up in keeping up with the technology that we forget to get back to the basic principles of effective marketing and branding, then we aren’t going to win. The most important thing is to remember that we are still talking (however, digitally we do it) to real people who still want to see, feel and touch the merchandise or experience the store after they do all their homework on their pocket PC. We can’t leave traditional media out of the equation either. Apple didn’t get to their skyrocketing numbers by just communicating online. It’s traditional media campaigns (with not-so-traditional messages) that have set the pace for creativity and break through marketing. Microsoft does some of the best print and broadcast as well. However, it’s the branding and the marketing strategy behind those messages that makes it all work. Best Buy understands that it’s got to market as aggressively today using both traditional and new media—but it’s making them work together to reach today’s savvy customer.
Macy’s is doing a lot to step up its online activity, yet it’s being out performed by Stage Stores (link) who has made a major commitment recently to technology to support their 758 stores in 39 states. Stage maintains their brand positioning that made the original stores the preference of the local markets they serve. With a 4th Quarter increase in net income of nearly 10%, Stage has taken it’s flagship store brands and made them even stronger within their markets. They’ve used technology to work smarter and traditional marketing to keep close to their established customers.
There continues to be a lot of news out there and the potential marketing benefits of the FaceBook, Twitter, YouTube et all, are yet to be seen despite their unbelievable growth. However, while trying to stay on top of new technology and capabilities, it’s critical to also keep on challenging your organization to innovate with new ideas that will excite customers. We need to market them more effectively to keep the customers coming back after they press the power button on all those pocket pc’s.
DON’T MISS THIS YEAR’S GLOBAL RETAIL MARKETING SUMMIT IN ST. PETERSBURG, FL, AT THE DON CE SAR HOTEL ON APRIL 22-24. ROB CONWAY, THE MOST INFLUENTIAL PERSON IN TELECOM, WILL PRESENT AS WILL AUTHOR RAY KURZWEIL AS PART OF PROGRAM THAT WILL HELP YOU BECOME BETTER INNOVATORS AND MARKETERS. GO TO http://www.globalretailmarketing.com
PRESS PLAY>> NOW FOR A SHORT VIDEO MESSAGE FROM KEN.
Being in the mountains is always invigorating to me , especially when I am skiing. Looking backup the mountain at the peak from which we just descended provides a great sense of satisfaction and accomplishment. Then looking up to the next peak always provides a challenge of impending exhilaration knowing there is another run to be conquered and a spectacular view to behold.
On my recent return trip from Colorado, I found it ironic the book I tossed into my case was Spencer Johnson’s (author of Who Moved my Cheese?; One Minute Manager) latest book—Peaks and Valleys. (http://peaksandvalleysthebook.com )Like his other books, this was another quick and easy read with the key message all summed up on one page (page 90 this time) so you couldn’t miss the lessons to be learned. In short, it’s a book about the peaks and valleys of our life (career or company) and how we must keep an eye on the peaks, which provide excitement, success, and perspective rather than muddle along in the valleys of our routine and mundane activities. I recommend the book to give you some quick perspective, especially in these economic down times and the personal struggles that accompany them.
It’s also a good lesson on branding and marketing. If we allow ourselves and our companies to get caught up (well, actually down) with the challenges of the day-to day-price wars in the valley and lose sight of the potential and vision that we had in mind when we developed our brand strategy, the chance for success and for differentiating our stores, products or services from the other competitors sloshing it out in the valley is extremely limited.
In particular, I look at stores that have abandoned any marketing or branding activities in order to cut costs or accelerate their price promotions in order to convince customers that they should shop them instead of the stores across the parking lot or street. Most of the remaining department stores have totally forgotten about trying to give people a reason to chose them over their discount or specialty competitors and in the process have essentially lost a reason for being. The recent consolidation of shopping center developers reflects the growing irrelevance of major malls and centers that are not in tune with today’s consumers’ shopping habits and preferences. In fast food chains, the preoccupation with seeing who can sell more $1 double cheeseburgers has totally ignored that customers really want a sandwich that simply tastes great. (Five Guys figured out that people really do want a great hamburger and fries even if it costs 3-4 times more than McDonald’s or Burger King’s options).
If we consider that we should keep our eyes and strategies focused on the peaks of a strong branding strategy that itself differentiates us and creates a relationship with the customer faster than getting out of the valley of our sales doldrums. Like the main character in Peaks and Valleys, getting out of the mess we have created ain’t easy, but the climb back up to the peak is both satisfying and exhilarating. And it provides the perspective to make our business more successful and our brands more relevant on an ongoing basis.
Back to the slopes!!!
PS: For some exhilarating thinking about your brand, plan on attending the new Retail Innovations and Marketing Conference in San Francisco on March 2-4. This unique event brings the best of the former Retail Advertising Conference with the online thinking of Shop.org into a new forum that will help keep your eyes on the peaks of success. Check out the details at http://events.nrf.com/innovate10/public/Content.aspx?ID=6394&sortMenu=103000&exp=2%2f17%2f2010+1%3a56%3a12+PM.
CLICK ON PLAY>>>TO VIEW THIS MONTH’S VIDEO FROM THE JAVITS CENTER
The National Retail Federation’s annual convention in New York was a buzz of activity this year with an increase of over 20% in attendees from all over the world seeking new ideas to improve their business. Granted, most of them came to see the latest technology and systems to help improve operations. However, for those who attended the educational sessions (one of which was presented by Robyn Winters and myself where we introduce our Brain Branding concept) there was plenty of information and opinion confirming now is the OPPORTUNITY to capitalize on business. Terry Leahy, CEO of Britain’s successful Tesco stores said it best when he said that “Success in this turbulent economy will be determined by staying focused on what your “brand stands for.”
Halleluiah! Someone who believes that it’s not just getting more aggressive with promotions and sale events to woo our reluctant (or bored) customers back to the stores. It truly is a time to be opportunistic. Last year when the economy was plunging out of control, Hyundai motors introduced their program that allowed you to return your new car if you should lose your job shortly after you purchased it. Not many took them up on the offer, but many certainly did take notice as Hyundai produced the best results in the car industry in 2009.
Sam’s Club just announced that it was eliminating 11,000 jobs by outsourcing their in-store demonstrators to a company that specializes in having motivated, professional demo’s in the stores. Some see it as a budget cutback (which it is) in hard times, but I see it as an opportunity that Sam’s is taking to get more competitive with Costco and add more excitement to the shopping experience in their warehouse stores. Not only will the demos be more fun, but I suspect there will be an increase which will induce trial and add to the loyalty of their customers.
The New York Daily News is fighting back against the circulation losses and advertiser cutbacks by joining forces with Yahoo (along with several other newspapers) to provide their local advertisers the ability to combine the power of the traditional mass media with the growth of online and social networking. The big chains, like JCPenney have been converging successfully for some time, but the local retailers haven’t had the opportunity or savvy to make it happen. Now, they can and are able to make it happen with their local advertising rep from the paper.
Publix once again made the list of the top companies in the US to work for. They also continue to get more grocery shoppers to come into their stores than any other in their markets by constantly improving the shopping experience (“where shopping is a pleasure” is their slogan and they live up to it, everyday.} They seized the opportunity when Albertson’s withdrew most of its stores in Florida by gobbling up most of the sites (many of them better than their existing ones) and refurbishing and remodeling them to make a loyal customer even more so while gaining almost all of the existing Albertson’s shoppers. They have also defended their brand position against the price choppers at Walmart and WinnDixie, by strengthening their private label program and by putting together a Buy One, Get One campaign that keeps the price shopper without weakening their brand position.
Now is the time to look around, redefine your brand position and take advantage of the opportunities to grow your business in spite of the media’s obsession with bad economic news.
press play>>now to view Ken’s Holiday Message. “‘Tis the season for great branding”
Traditionally, the holiday season has been the time for advertisers, especially retailers, to strut their best, most creative stuff and try to capitalize on the peak selling season. The newspaper used to be a showcase of great photography and copywriting. Television spots reached out to your hearts and for a while ignored the price-item frenzy to help put their brand on the top of Santa’s wish list. The postman needed a lift-truck to deliver all the great catalogs and wish-books that we kept on our coffee tables throughout the season. And recently, innovative programs (like OfficeMax’s “elfing” promotion) have put the fun back into the holidays.
I won’t say much about the print ads other than to note that Kohl’s and JCPenney are making a lot of printers and paper mills quite merry this Christmas. Enough already! And how many red catalogues can Macy’s possibly mail with an equal number of 15% discount cards?, As I’ve said before, Sam’s club has the best print out there.
For television, I decided to take a Thursday evening and watch the entire NBC schedule to see what great spots might be out there. I’ve determined that the programming director for the network must be a junior high kid with a warped sense of humor. Advertising-wise, it was just one big disappointment. Target (usually my favorite) missed the mark this year. Best Buy, TJ Maxx, and many others overdid the singing choruses. If you can’t do great creative, make up a parody of a Christmas carol and get a bunch of lip-syncing actors to join in the fun.?
But, once again as it has been for many years, there was a shining exception. I took the time to watch a Hallmark Hall of Fame movie and as always was not disappointed. The movie had a great message and great acting. However, the commercials were the best ever. Not only does Hallmark remind us of why greeting cards are a memorable way to connect to someone we care about, but they also remind us of the holiday traditions (as in ornaments with meaning) that make this such a wonderful time for families. And they didn’t stop there. With a third message at every break, reminding us that Hallmark has been doing it for over 50 years with nostalgic looks back that are real—not contrived. The messages are great for an industry facing more online competition, but they also solidify a great brand that has been consistent in quality and emotional value. When you care enough to send the very best comes alive. And Hallmark does it in their stores, with their products (besides the cards) and with a brand that people love. To view some of them, copy this link to your web browser: and enjoy the best of the season. http://www.hallmark.com/webapp/wcs/stores/servlet/article%7C10001%7C10051%7C/HallmarkSite/GoldCrownStores/GCS_COMM
MERRY CHRISTMAS! .
INVITATION: Don’t miss this year’s annual National Retail Federation Convention at the Jacob Javitz Center in New York, January 10-13. Robyn Winters, a “Whole Brain Thinking” expert and I will be introducing our new program – BRAIN BRANDING! This is a new, unique way to increase your market share and develop more customers. Don’t miss a presentation that take a whole different look at branding. It’s at 9:45am on Wednesday, January 13.
PRESS PLAY>> NOW TO VIDEO TO VIEW KEN’S OPENING MESSAGE.
I just finished teaching my third class of graduate students at Schiller International University (www.schiller.edu). Most of the students are from other countries and nearly all are not planning a career in marketing. However, it’s a requirement for their MBA and fortunately the school recognizes the importance of marketing as a key to their future success. I have to admit I’m a bit jealous of the students with regard to their text book—Essentials of Marketing, 11 th Edition by Perrault, Cannon and McCarthy. Unlike the textbooks in my college days, this one really is a wonderful study guide.rather than simply well written text and theories. It’s well-organized, , up-to-date, gives many examples and a helpful appendix to help figure out the numbers as well. Additionally it includes a CD, which not only administers the quizzes on each chapter, but also provides video and audio examples of great advertising to help make the points. There is an excellent marketing plan coach included too that helps to guide the student step-by-step in preparing an effective marketing plan.
What it doesn’t have, however, is symptomatic of what’s wrong with today’s marketers. Out of over 600 pages of information, only 7 (yes seven) pages are devoted to branding. And these deal primarily with logos and package design, trademarks, etc. Never does it refer to branding as the key to the marketing strategy and the underlying DNA of the product or service that makes the rest of the marketing functions work.
When I look at all of the retailers and manufacturers whose businesses are suffering these days, I can’t help thinking that maybe they only learned their marketing from a text book like this. Some of the campaigns and efforts by many stores out there may be creative or aggressive, but lack substance—or a reason for being. I believe that they should stop blaming the economy and look at the lack of branding that goes into their marketing instead. The auto companies are classic examples of this. Stores like Circuit City, Linens N Things, Bombay Company all did a lot of “marketing” (actually, advertising), but obviously lacked a strong brand strategy that would have helped their brand resonate with the consumer.
So who does it right these days?? I get asked that question a lot and my immediate answer is Apple. As a retailer and manufacturer, they get it right. I won’t go into the product branding that is already legendary behind their Mac’s, iPods, and iPhones. Instead, let’s look at their stores, where they meet with their customers face-to-face. Recently, I converted to a Mac and iPhone, and the experience has been a revelation to me on how great branding can be in retail. The stores are fun, exciting, interactive and convenient. The merchandise is out so people can try it out, get information and explore before one of their many, well-educated Apple people offer assistance. Yes, they live up to the personality portrayed in the Mac vs. PC commercials. They are not only knowledgeable, but they are also really nice people who actually like to help you select the right product, get the right accessories, and answer any questions (and if you’re converting from a PC, there are many questions!). Their One-to-One training (link: http://www.apple.com/retail/onetoone/) is easily accessible, on time and really helpful. The product design and the follow-up communication is simple and understandable. And it all seems to work very well. On one of my one-to-one appointments, I arrived at the store at about 11am. The shopping center (one of Tampa’s best and most successful) was basically empty—except for one store—Apple. The line was cued outside because it was so busy inside—and nobody was complaining. The iPhone GS had just be introduced early that week and that created more demand, but to take care of the customers and keep the interactivity going as planned, the cue was necessary. The people taking care of customers were busy, but smiling and not one of them rushed through their transactions. There were no SALE or CLEARANCE signs out front, like most of the other retailers in the center. In short they were living up to the brand and the customers loved it. That must be why Apple’s performance continues to excel. (Third Quarter revenue, margins, and profits all were up substantially. ) Steve Jobs has been a great leader, but he’s not the only one responsible for this continued performance. It’s a great brand, with a great strategy, implemented very well.
Apple’s strategy, like their advertising, is probably concise and to the point. I’m sure they devote more than seven pages to branding.
