my thoughts onBRANDS AND BRANDING
Let's get back to basics
Tired of all the buzzwords surrounding the marketing world? Me too. It's time to cut through the noise and get back to the basics. I've learned that marketing should be simple, straightforward, and focused on the obvious.
With the rise of AI and chatbots, it seems like the marketing game is changing every single day. But here's the thing: despite all these changes, the fundamentals of effective communication remain the same.
Good marketing is based on natural needs - be trustworthy, be helpful, talk like a friend to your audience but don't try to be friends with everyone.
Instead of chasing after the latest shiny thing, I believe in understanding your audience, speaking their language, and solving their problems. No complicated AI systems can replace good old-fashioned human connection.
So, don't overthink it – let's get back to basics and do marketing that delivers sustainable results.
We love stories
Almost behind every bush, in every company, good stories await. To find the stories, one has only to put on the right glasses and look at the story from a little distance. But it's there. Find the story and use it to get closer to your customers. Why did you start your business, how did it happen, what drives you besides the money, what are your goals?
Learn from Weber (the grills):
"... One day at the factory, George had an idea. He took an ocean buoy and cut it in half. So he put legs on the bottom and used the top as a lid. Then he made a damper at the top and one at the bottom. Now he finally had the barbecue he had dreamed of. He was able to control the temperature, control the ash and flames and thus create the very flavor that he had always strived for. An American icon was born and the rest is history."
One of the most successful companies of our time can largely thank the stories for its successes. The narrative of Apple and Steve Jobs' start as pioneers in a garage, early successes, setbacks, difficulties, and finally rehabilitation has all the qualities that a good story should have.
Our need for stories is in our genes. Ever since we lived in caves, stories have provided security and been important for education, upbringing, identity, and group belonging. The need for stories and storytelling is largely about relationships. Just like marketing.
So, what does your story look like? Can your story strengthen the credibility of your business idea and your customer promises?
Our 12-year-old Weber grill is definitely in its final season. But it has done a good job and struggled in our tough climate both summer and winter. This last time it may be in a wheelchair because the legs are no longer carrying.
Your brand should be like a good friend
Customers want to buy from someone they know and trust. This means that your brand should be like a good mate; In other words, personal, reliable, pleasant, helpful, and also get in touch from time to time. If the brand succeeds in this, it is guaranteed to be stronger, which leads to you either selling more or being able to charge better.
No matter what media or channels you use, you'll have more effective communication if you follow these brilliant tips:
1. Find and tell stories that excitingly describe your business and use them in your marketing. Tell us about setbacks and successes, difficulties and victories. What were your thoughts when the company was started and what did you want to achieve? Man is a narrative species. How your brand is perceived is the sum of the stories of the brand. Therefore, it is more important who the brand is than what it is. It's the story, not the specification, that gives the brand a soul and meaning.
2. Brands that are rooted in a strong culture are chosen by people who want to share that culture. Target an audience you share interests with, your like-minded people, your tribe. If you work in tourism and like sport fishing, you can concentrate on the target group of anglers. You speak more or less the same language, have the same tastes in many areas and make roughly the same demands on life. This makes it easier to design the product and communication so that it clicks with the target group.
3. Think of each customer as an ambassador for your business. You've probably heard that before, but it doesn't hurt to be reminded of it.
Long-term brand advertising for growth and better margins
Consumer advertising has not progressed as much as one might think given the digital opportunities available today. Some of the world's leading marketing researchers, Les Binet and Peter Field, argue that marketing departments are too focused on short-term goals.
In consumer advertising, there has been an increase in sales activation advertising, which aims to get people to buy the brand immediately (such as discounts, sales, buy-one-get-one offers, etc.), at the expense of brand advertising, which aims to make people have a better opinion of the brand.
More emphasis should be placed on long-term brand advertising
This is not ideal because if we want to achieve growth and better margins, more emphasis should be placed on long-term brand advertising. According to Binet and Field, the optimal balance for companies is 60% brand advertising and 40% sales activation advertising. Online companies that sell through the internet already have an efficient sales channel, so they can go even further: reduce sales activation advertising to 25% and increase brand advertising to 75% of the total advertising budget.
There needs to be a constant replenishment of the customer base to prevent it from shrinking. So why isn't this being done? The problem is that the digital revolution relies on short-term metrics. Instead of striving for long-term growth and improved margins through brand advertising, big data leads marketers into short sales cycles and sales activation advertising, often targeted at existing customers. In other words, they dig deeper into the wallets of existing customers. And this happens in a customer base that is at risk of shrinking each year. Customers change interests, switch favorite brands, lifestyles, and preferences, move, age, and pass away. There needs to be a constant replenishment of the customer base to prevent it from shrinking. Therefore, it is necessary to target actions toward the entire market, not just current customers and followers. The broader you aim, the better.
Loyalty programs reduce margins
Combining sales activation advertising with loyalty programs does not make things better. Firstly, loyalty programs target already loyal customers who no longer need to be nurtured. Secondly, loyalty programs often lead to reduced margins because they usually consist of discounts and similar offers. Customers learn that they will receive special offers regularly. When you lower the price of a product, it becomes harder to sell it at a higher price later.
Be aware of the negative spiral
Certainly, sales activation advertising and loyalty programs can have their merits as part of the mix. Just be aware of the negative spiral that can be created. Loyalty programs solely target existing customers and take resources and money away from brand-building activities for future customers. As mentioned before, do not neglect brand work. After all, the brand is everything.