Jan 30

The Fragile Nature of Brand Equity

Brand, Business, Competitive Strategy, Customer Service, General Interest, Marketing, Social Commentary, Social Media No Comments »

Brand Equity is a House of CardsAs marketers and business leaders, we spend years, if not a lifetime, cultivating our brands. They define who we are and generate an annuity of business and goodwill for decades. That annuity helps grow the value our brand equity. Our customers, by purchase and by proxy, derive benefit from our brands. Go walk into a Starbucks. Who is there? Why are they there? What are they drinking? What computers are they using? What are they wearing? What are they reading? It’s all brand. Marketing 101.

So if brand is so important, why are we seeing some of the strongest ones tumble? Because brands are incredibly fragile. Just look at Tiger Woods and Toyota as recent examples. The fallout is not just to the brand-owners but to those who derive ancillary benefit. Tiger Woods’ sponsors are leaving because the brand actually has negative value and it impacts them. Personally, I love watching Tiger play and I enjoy hopping into my Toyota SUV and driving through the New England snow. I’m disheartened by both recent events.

The brand equity ascent is slow and arduous; the descent is fast and dangerous. Paraphrasing a former business partner of mine:

If you’re not careful, you can go from a hero to a has-been in heartbeat.

How true. Is it more challenging these days to protect a brand? Absolutely. The velocity of communications and the acceleration effects of social media leave little time to react.  And remember: bad news is like gasoline and good news is like water – all it takes is one strike of a match.

Is there a cure? Not entirely, but integrity sure goes a long way. Not just integrity from the start (Tiger Woods) but also integrity when dealing with and addressing problems as they arise (Toyota). We’ll see how they (and many others) try to regain their brand equity. Much, however, depends on whether those of us who benefit will remain loyal.

Rob Ciampa

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Jan 16

The Marketer’s Dilemma

Marketing, Social Media No Comments »
The Twitter Scream

The Twitter Scream

“I feel as if the train left the station and I’m standing on the platform watching it fade into the distance,” exclaimed a friend of mine whom I regard as one of the finest marketing people I know. He was referring to his disconnection to the major shift occurring in how we use social media to communicate with our customers and prospects.  My friend is not alone; I recently spent time with a group of senior marketers discussing Charlene Li and Josh Bernoff’s book Groundswell: Winning in a World Transformed by Social Technologies. I was surprised to find that only about one in five of my peers had a blog (corporate or personal) and most hadn’t read the book. This is not a disparagement, but rather a warning sign that many of our best marketing people aren’t adapting.

Why? Although there are many reasons, I’ll answer it in marketing terms: positioning. The new world order has been positioned in such a way that everything in the classic marketer’s toolbox is irrelevant, thereby making them irrelevant. Naturally, if not subconsciously, this generates fear and a negative reaction to the cause. Too Freudian? Perhaps, but I’ve witnessed this far too frequently to dismiss it as an anomaly.

Call it the social media revolution, but it’s really a marketing communications evolution. Don’t view it as a new toolbox; consider it new tools in the toolbox. And by the way, a tool is much more effective when it’s being used and not locked up. Now go out and grab that twitter wrench and work with (not fire) your PR team to get your message out.

Rob Ciampa

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Nov 27

A Statistically-Interesting Social Media Thanksgiving with Sarah Palin

General Interest, Marketing, Social Commentary, Social Media 1 Comment »

Sarah Palin Pardoning TurkeyWhat a difference a year makes. Last year, our large Thanksgiving gathering was still divided and at odds over the then recent 2008 presidential election. With the exception of Sarah Palin, which I’ll address shortly, a new, shiny object showed up with the holiday turkey: social media. With three generations at the table ranging from ages twelve to eighty, I knew it was going to be an interesting discussion. For my statistically-oriented and pollster-pushing friends, here is a measurable tidbit: everyone in attendance had an email address – and that included “the elders.” For simplicity, let’s segment the gathering into the elders (60 +), the kids (20 -) and the mid-market (20-60).

As a marketing guy and a card-carrying member of the mid-market, I was at an interesting vantage point because I’ve used all of the social media vehicles. I had to explain the role of Facebook, LinkedIn, Twitter, blogs, Digg, etc. What intrigued me, though, were the divergent and interesting views on social media. Here are some take-aways:

  • The kids thought the other generations at the table were Luddites and couldn’t understand why we weren’t texting between bites of cranberry sauce and stuffing.
  • The mid-market and elders believe Facebook should be about connecting friends and not about communicating to your-sister’s-classmate’s-cousin-from-Fresno-CA’s-favorite-Starbucks-barista.
  • The kids had an average 582 friends vs. about 87 for the mid-market. From our sample, none of the elders had Facebook, but were very interested.
  • Only the mid-market, marketing guy and his wife (Mrs. Market Research) had a Twitter account. None of the kids “got” Twitter and thought it was weird. Go figure.
  • LinkedIn was deemed very intriguing by the mid-market and the elders, though the brand recognition was weak. The kids challenged the concept of LinkedIn when one already had a Facebook account. (Why do the non-kids segments feel this way? Because business colleagues generally don’t want to see one another in skimpy bathing suits and compromising situations.)
  • Social bookmarking was not well known across all three segments. When I explained the concept, everyone thought the idea was great, but didn’t like that fact that there were so many choices. The one-stop shopping rule returns.
  • Most at the table don’t understand long URLs and want to shorten them. I explained bit.ly to a few, but they didn’t necessarily like the new, cryptic URLs either.

After the social media discussions ended, Sarah Palin showed up again this year as a hot topic. As always, she remains a divisive subject, especially now that her new book is out. I tried to remain objective between the Maureen Dowd-esque and Sean-Hannity-esque banter (and flying drumsticks) at the table. In an effort to mediate the debate, I raised the subject of her use of Facebook and Twitter, which only empowered both sides at the table. I’ll try to remain neutral again next year, though I suspect my analysis of her use of social media may not fly again. I will be especially interested at the Thanksgiving 2010 to see how the market segmentation changes and which social media vehicles are in vogue.

Rob Ciampa

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