'Holy Schnike' -- It's Brand Equity

by Steve Fodor

It’s a long story, but I have the movie “Tommy Boy” running through my mind. Especially the line from the movie when Tommy (Chris Farley) says to a customer, “You can get a good look at a T-bone steak by sticking your head up a bull’s (rear end), but wouldn’t you rather take a butcher’s word for it?”

I’m thinking about this line from “Tommy Boy” because I’ve had yet another person comment that they can develop marketing communications as well as a proven and recognized agency (“proven” and “recognized” are the key words there). And you know what, in some cases that may be true.

I once heard that “brand equity is no different than home equity.” Brand image is the most valuable asset a company has. And, just like a home – many people’s most valuable asset – you can only go so far with “Do-It-Yourself” know-how. Sometimes you need to hire an expert. Someone with a proven track record. Someone who knows how to get it right the first time. Someone you can trust because they’ve done many other successful home improvement jobs. Because it’s more expensive to redo a job done wrong.

I see both good and bad marketing communications done in-house by companies. And I also see both good and bad creative work from a lot of agencies, too. The point is, your brand needs to be updated, maintained and presented in its most positive light. And, from my point of view, real creativity means knowing how to develop a strong message – on a budget.

You only have one chance to make a first impression. Making a good first impression and “saving a few pennies.” That reminds me of another great scene from “Tommy Boy.” Enjoy the video clip!


Tommy Boy sales training

Video Credit: video.google.com

Live For Today?

by Steve Fodor

I heard an interview on National Public Radio recently (yes, I’m a late night, talk radio junkie). Philip Delves-Broughton, an English journalist who attended Harvard Business School, was interviewed about his recent book, “What They Teach You at Harvard Business School.”

There were many interesting points discussed during the 20-minute interview. However, the most interesting point I took away was how the curriculum at Harvard, from the author’s point of view, focuses on business strategies for achieving short-term, immediate gains versus long-term, sustained performance.

Interesting, in light of where the economy is today, and why it’s that way.

It got me thinking about the value of a brand. A brand’s value is not just measured in short-term awareness and sales. It’s measured in real dollars over time. In sales that last decades, not months. In why people will pay more for your brand versus a seemingly similar product at a lower price.

I once heard a “brand” defined as, “the process of creating a constellation of values for forging a strong bond with customers to create loyalty.” Wow. To me, that sounds like investing time and energy to understand why people purchase something for reasons that go beyond price. It’s hard to resist the urge to “live for today” and focus on short-term sales and promotions. Especially in today’s economy. But, in the long run, successful brands always command higher margins. And, in return, strong brands are rewarded with greater customer loyalty, ultimately lowering the cost-per-sale and delivering a greater return on investment over time.

I wonder if they teach that at Harvard?

Flickr Photo Credit: http://www.flickr.com/photos/joeshlabotnik/

B2B versus B2C?

by Steve Fodor

Having worked in both worlds, I get asked this question a lot: What’s different about business-to-business marketing communications versus business-to-consumer?

Well, “nothing and everything” is usually my reply.

By “everything is different,” I mean that B2B usually means shaping your selling proposition into a business case. What kind of cost savings? What kind of productivity is achieved? B2B also requires a more in-depth understanding of selling scenarios. Selling through channel members or distributors and the need for push strategies, pull strategies…or usually a combination of both. And creating B2B marketing communications, I’ve found, requires a greater understanding of a product’s technical aspects.

Business-to-consumer marketing communications are generally more life-style appeal. Personal gratification is often at the root of a B2C selling proposition. How will this product make you feel? Will this make you the “hero” to your friends and family?

What’s the same about B2B and B2C marketing communications? To be effective and memorable, both recognize that you’re speaking first to people. Industrial buyers do not stop being people with emotions between the hours of 8:00 a.m. and 5:00 p.m. They still must be drawn in by an emotional appeal, and then presented a rational case for considering your product or service. The same is true when talking to private consumers.

Whether you’re marketing to housewives, product engineers, home improvement DIY folks, or chief financial officers, you need to understand how your product impacts their lives – be they private lives or professional lives. If you don’t understand how to connect with the emotional drivers, your brand will be “replaceable” when price is equal.

Flickr Photo Credit: http://www.flickr.com/photos/glasgows/