Brand Strategy
The Art of Branding
Guy Kawasaki | April 21st, 2009 – 06:00 AM
(26) Found this useful. Do you? Yes
In this Web 2.0, user-generated, Open-Source, social-networking world, it’s so easy to forget that just because something can be done doesn’t mean it should be done. All branding, no matter whether it’s on a billboard, blog, website, or Twitter, should adhere to these simple principles. Here are nine keys to the art of branding.
- Seize the high ground. Great branding positions your company along the lines of doing good, empowering people, increasing efficiency, and fostering creativity. There’s nothing about screwing the competition or making a lot of money. Think about it: When have you ever bought a product to hurt its competition?
- Create one message. Volvo stands for safety. Toyota stands for value. Audi stand for four-wheel drive. Ferrari stands for sexiness. You should be so lucky that your brand stands for one thing. Trying to make it stand for more is futile, stupid, and downright dangerous. Apple will never stand for corporate computing, for example, no matter how hard it tries.
- Speak English. Not so much English per se, but speak without jargonese. Your, and your employee’s, fluency with technology terms and acronyms doesn’t transfer to the rest of the world. At most, people walk into Best Buy wanting a HDTV; how many come in asking for 1080i with HDMI connectors?
- Strive for humanness. People relate to brands in “warm and fuzzy” social terms: does it make me feel happy, safe, secure, cool, or sexy? Brands thrive along emotional parameters and not bits, bytes, and dpi. For all the steel, rubber, and glass that a Harley Davidson represents, the brand comes down to being powerful and cool.
- Apply the opposite test. Most companies describe their products or services as if they have the sole marketing message out there. “Our gizmo is fast, secure, and easy to use” they say. It’s as if every competitor is saying, “Our gizmo is slow, hackable, and hard to use.” Therefore, take the opposite test: Is what you’re saying the opposite of what your competition is saying? If not, you’re both saying the same thing, and your branding isn’t effective.
- Cascade the message. Let’s just say that you have created the ultimate branding message. Hallelujah, your work is done, right? Nope, not at all. Obviously, you have to spread the word, but you have to cascade it too starting from the CEO all the way down to the the summer hire in the mail room. And don’t forget your board of directors.
- Focus on PR and word of mouth, not advertising. Many companies don’t have much money to advertise these days, but advertising isn’t the most effective way to establish a brand. Truly, branding starts with the quality of what you make. Then PR, word of mouth, and other less formal and cheaper channels (like Twitter) take over.
- Examine the bounce back. After you’ve cascaded the message and spread it externally too, listen to what bounces back because people might not have heard, understood, and accepted what you said. You may think that your brand stands for sexy, but if people still think it stands for safe, your branding isn’t working.
- Flow with the go. Ultimately, your customers, not you, decide what your brand stands for so when you get the bounce back, consider altering your branding. (Or, if you have an established brand, returning to your roots.) You may tweak some of the parameters of what your brand stands for, but ultimately it’s the one thing that customers have decided, so take that and run with it.
There you go: nine simple practices to improve your branding. I hope these tips help you change the world because that’s what a good brand does.
Photo credit: takacsi75
Gr8 Stuff Guy as usual
Escaping the Price Trap: Multiple strategies you can use to reframe the issue
How many times have you been told that it’s imperative for you to “get inside your customer’s head?” Probably a gazillion, right?
Today we’re going to turn that into a reality. In fact, I’m going to give you the opportunity of a lifetime – the chance to have a ringside seat inside a real prospect’s mindset – one in which price is an issue.
You’ll also be able to see, in real time, how a seller might choose to deal with this situation. The only limitation to this learning opportunity is that the buyer and seller can only communicate via email.
Here’s some background on the situation.
Less than 1 minute ago, you (and I mean you personally, not some generic “you”) read a brief overview of the upcoming Sales Stimulus Package – the big event I’m pulling together to help sellers get more prospects in their pipeline.
For the purposes of this exercise, you (remember, I’m pointing my finger directly at you right now) will be the prospect and I’ll be the seller.
So let me ask you this: What thoughts went through your mind when you read about the Sales Stimulus Package and preview calls?
Did you think…
- Sign me up now! It’s just what I need.
- Cool. I’m going to see if I can get my boss to pay for it.
- It looks good, but your prices are pretty high.
- Sounds great, but I can’t make every session.
- Will I really learn some good stuff that will make a difference?
- Maybe I’ll just attend the freebies.
- Times are tough. We’d love to have our reps attend, but that gets costly.
These are just a few of the reactions I’ve heard since I launched the Sales Stimulus Package early last week. My guess is that you reacted similarly to at least one of these.
The key question that you – and most others – are evaluating right now is, “Is it worth it?” As the seller, it’s imperative for me to address that issue, because it influences whether you sign up or not.
Like many of you, my natural tendency is to tout how incredible these speakers are and promise that you’ll learn all these wonderful things that will totally transform your business and make you the most successful seller in the whole wide world.
That would be really stupid to do. The more I’d try to impress you, the less likely you would be to believe me. I’ve chosen to avoid the hype.
So how can a seller (me) increase your perception of the value of the Sales Stimulus Package?
There are multiple ways to do this and they all involve REFRAMING the price. In essence, instead of having you focus on $299 (Early Bird/person), here are some strategies I could use.
As you read them, think about which have the biggest impact on you and your decision to sign up or not.
Lost Opportunities | Future Gains
In today’s economy, virtually every seller I know is experiencing challenges right now. Decision makers are cautious, not wanting to spend money unnecessarily. Sales are being delayed and more people are involved in the buying process. Slow, slow, slow.
Let me ask you a few questions:
- How has the economic situation impacted your business so far?
- How effective are your prospecting strategies?
- Do you have enough prospects in your pipeline to meet your goals?
- What are you doing to adjust to the changing economic climate?
- How’s it working for you?
Yes, the Sales Stimulus Package costs some money. It’s not cheap because it’s high quality, high impact. But it is affordable.
And, when you think about how much business you’ve lost in the past six months, it’s a small price to pay for learning skills and strategies that can help you succeed despite the economy.
Usually I wouldn’t lead with this type of approach because I don’t like “fear-mongering.”
However, I am a pragmatist – and this is what I’m seeing right now. I have to make changes to get business. Everyone does. But not everyone knows what to do to make it work. That’s why I’ve chosen pragmatism as a major emphasis in what I’ve already written.
Average Customer ValueWhat’s your average customer worth to you? My guess is that it’s a whole lot more than what you’d pay for the Stimulus Package. So think about this:
- If Patrick O’Malley could show you a new way to leverage LinkedIn to get business, your investment would more than pay for itself.
- If Kendra Lee’s advice on leveraging email got you a meeting with an executive you’ve been dying to land as an account … what would that be worth to you? Perhaps now the investment in the program seems miniscule.
- If Sam Richter’s strategies on gathering sales intelligence were just what you needed to snatch the business from competitors, would the program be worth it then?
- Finally, if you extended the value of the initial order to Lifetime Customer Value, what kind of money are we talking then?
Personally, I think this is a really good reframing because it talks about the true worth of the program to you personally. It also puts your INVESTMENT in a more proper perspective.
Please note the switch away from price, because we truly are talking about an investment in your success. Since most people don’t automatically make this mental leap themselves, it’s important to bring it to their attention.
Cost of Hiring Experts Individually
Each of the presenters that I’ve lined up to speak at the Sales Stimulus Package is a highly paid professional. Bringing even one in to speak to your organization would cost thousands and thousands of dollars.
But all of them? You’re looking at spending about $75,000. Why so much? Because they know how to help you sell more. They’re experts … pros who know how to help you put more prospects into your pipeline. Most companies couldn’t spend this much – even when they desperately need it.
As a seller, one of my responsibilities is to educate my prospects on the true value of what I’m my offering – otherwise you don’t know. You don’t make decisions about this often, if at all.
That’s what the jeweler did when my husband shopped for engagements rings. Once he knew all about the 4 Cs (carat, cut, clarity, color) that influence a diamond’s worth, he realized what he was investing in and willingly paid more.
Since most of you would never spend that much money, I only bring this up to give you a comparison of fair market value versus what you’d need to spend. Since it’s so much less, I’m hoping that you’ll think, “Wow. What a great deal!”
Low Cost Per Session
By packaging these programs together, we’re able to offer you special pricing that you couldn’t get if you attended each of these teleseminars individually. In the past, we charged $79 per program. But if you get the Stimulus Package at the Early Bird rates, each session is only $25. That’s a whopping 66% discount.
What I’d like to point out here is that this is a secondary strategy. This only works if you, as a potential buyer, think that the PACKAGE itself brings value and you have a strong desire to learn from multiple presenters. If you think it’s a waste of time and money, saving 66% is irrelevant.
Understanding Value
Once you start thinking about how to help people realize the true value of your offering, it’s amazing how many ideas can pop up. For example, I could also stress:
- The value of training reinforcement. Since Sale Stimulus attendees get MP3s of each session, they can listen to the experts over and over again – thus ensuring that the training “sticks.”
- The minimal risk involved. In fact, we’ve created two free preview sessions where you can listen in to the speakers prior to signing up – just to make sure it’s of value to you.
- That you don’t have pay to go to a conference or spend money on hotels, airfare and more. It’s the most cost-effective training you can get.
But enough of that. I could go on and on. Let’s get back to what this is all about.
Every seller today is getting caught in the price trap. It’s one of the first things your prospects want to know. How much is it? How much is it? How much is it? It’s enough to drive you crazy.
PRICE IS RELATIVE. It’s a bad place to start.
As a seller, your job is to help your customer understand the value of your offering. You need to get them off the pricing and into a conversation about what really matters.
That’s why I put you into the role of the prospect. Which of the strategies I described worked best with you? Perhaps you have some other suggestions. If so, I’d love to hear them.
Hopefully, my transparency in talking about my own options has opened your eyes to new ways you can approach the dreaded price talk.
I didn’t avoid it. In fact, I tried to deal with it very openly. But you can’t do that if you’re not prepared. These strategies didn’t just pop into my mind when I was under duress. They’re something I think about ahead of time.
We all need to be prepared to talk with our prospects about price. We need to be able to reframe it – hopefully before they say, “How much?” or “Too much.”
If we sell, it’s our responsibility to address the price trap proactively, so we don’t get caught in it.
_____
So what do you think? Which approaches are more effective? Which don’t you like and why? What other strategies would you recommend? I’m looking forward to hearing from you!
Thanks Jill for tackling a point that I have been struggling to make it clear for my team !!!
Why Do Most Entrepreneurs Fail to Scale?
Posted: 2009-04-14 21:22:42 UTC
One of my recent blogs discussed the DNA of great entrepreneurs as a mix of three simple things: smarts, guts, and luck. But what about the characteristics of entrepreneurs that can hinder success and prevent their companies from getting to the next level?
More than 10 years ago a classmate of mine at Harvard Business School said to me, in the thickest of Japanese accents and a slow and forceful voice, “Tony, you are a true entrepreneur…your strengths are your weaknesses and your weaknesses are your strengths.” The statement was profound and has resonated with me through the years.
Consider the strengths and weaknesses of the following entrepreneurial traits:
Persistence and stubbornness. Many people commented on past entries on the importance of having persistence and the willingness to persevere. This is a part of my “guts” bucket: you need to have the guts to start something, but just as important is having the guts to stick it out. Perseverance is an admirable quality of great entrepreneurs. However, when perseverance is confused with unhealthy stubbornness the outcome is not likely to be great. Stubbornness is fantastic when it is right, but it is a bitch when you are wrong. Or to paraphrase the bible, “Hell is truth seen too late.” So how can you tell the difference? It’s tricky, but here’s a tip: Be persistent in your vision when you are sure you are right and have some proof to back that up, but also acknowledge when you need help or redirection.
Controlling interest. During the early stages of a company, the entrepreneurial vision is critical and is typically embodied by the founder. It can therefore make sense early on for the entrepreneur to control of the operations as possible. This control freak nature and maniacal attention to detail are almost required during the early phases of company growth. But as a company grows, entrepreneurs need to demonstrate not only that they can do the task (i.e. no task is too small or beneath them), but also that they can appropriately delegate. Fast growing businesses quickly move beyond the ability of one person to manage without proper delegation, founders can unknowingly limit the start-up’s growth potential.
Team loyalty. Some of my closest friendships began at businesses I founded or where I have worked. It is natural to form very close ties to a group of people working day in, day out and often with significant sacrifice in the hopes of realizing an entrepreneurial dream. What has to be recognized is that the loyalty and relentless commitment that helped get a company to a certain stage might cloud judgment in determining the capabilities and skill gaps required as a business scales. To be clear, loyalty should be recognized and is culturally important, but it cannot be confused with the performance and future needs of the organization. As a start-up becomes a full-fledged business, an entrepreneurial leader has to be prepared to deal with difficult and inevitable personnel situations where business decisions need to be made for the interest of the company and not personal or historical reasons.
Some of these and other factors that hold a business back from realizing full potential are described well in the 2002 HBR article by John Hamm “Why Entrepreneurs Don’t Scale.” I also touched on similar themes in a lecture on entrepreneurship I delivered for the School of Management at Boston University.
Thanks again for all the comments on the prior blogs that helped shaped my thinking on this entry.
Now, what growth challenges do you face and why do you think many entrepreneurs fail to scale?
WORLD CUP #1 – Mexico City, 26-29 March Women’s Final
It’s been said that a sporting event’s success can be measured by the excitement of it’s finish. If that’s true then the Mexico World Cup of 2009 has to be one of the most successful World Cup events of it’s kind.
Featuring the new combined event, the women’s final on the last day of competition was nothing short of spectacularly entertaining. On the strength of an outstanding fencing (2nd)/swimming (1st) combination, Amelie Caze (FRA) came into the final event in a familiar lead position. Having missed a couple of shots in the first round Caze gave up the lead almost immediately to Aya Medany (EGY) who began the combined event in 3rd place just 2 seconds behind Caze. This is where the excitement starts….
Medany was like a machine in the shooting range, performing almost exactly the same each time (6 shots and 5 green lights in 40 seconds). Caze was much faster with loading and shooting, but not as accurate, allowing Medany to extend her lead with each lap and take what was rightfully hers today…the Gold medal.
Caze was undaunted and kept struggling throughout the course. Following the last round of shooting, when it seemed Caze was sure to have silver, Asadauskaite (LTU) came flying out of the shooting range in third place, 15 seconds behind Caze, and closing the gap with each stride. With less than 400 meters remaining Caze finally gave up second spot to the hard charging, fast stepping Asadauskaite . Although the Gold was already taken, it wasn’t until the final 30 meters that anyone was certain of the outcome for silver and bronze.
On the podium it was Medany (Gold), Asadauskaite (Silver), and Caze (Bronze).
Congrats to Aya, hope this will compensate the olympics medal !!!
10 Entrepreneurial Concepts to Live By
This is a post I created awhile back which outlines ten major concepts I live and work by. This may seem pedestrian to some though I think it’s a good foundation for conducting entrepreneurial business activity on the internet:
1. Always work with people who are better than you. You can only do a few things really well. One of them should be understanding your weaknesses and looking for the best possible help to fill the gaps. Seek help to manage MOST of everything else it takes to run a successful business. Hire people who will do a better job than you.
2. Treat everyone with the highest regards and pay the people who work for you greater than their value. While most people do not want to be leaders, most people want to feel good about themselves and be fulfilled. If people are paid better than normal, have good benefits and get a lot of appraisal and bonuses, they will be happier in life and in return will likely be more productive too. The smallest gestures, even for a poor company such as adding a bit more onto a pay check (giving surprise bonuses), paying for a cab – paying for lunch, all go a really long way. The greatest implementation of value for people is to have positions that allow for infinite growth. Nobody that works for you should ever have a fixed ceiling of opportunity. Consider cutting back on material expenses and pay more for people. Aspire for everyone to have a greater life-style. No matter how important your business is, this is life we are talking about and it’s short. While being caught up with speed towards the future, remember others who live for the day.
3. Do everything right and fair. Make sure that you are always honorable, especially with yourself. Live up to your oral agreements. When it comes to operating your business, make sure and set it up correctly – pay every cent of tax that you legally owe. As long as you take the extra effort to do things right, you will eliminate a huge amount of stress. Even knowing yourself that you are keeping everything in order will make you feel better about yourself on a day-to-day basis. The people that work for you will also take you more seriously and also feel better themselves.
4. Learn to love consequence and happenstance. Things will happen all the time that will throw off your plans. Turn the stress around and into a challenge. Use the opportunity to think of new opportunities. Perhaps there are many new paths to take that you would like even more. Consequence is the stuff that artists dream of; It’s what creates new technologies and drives innovation.
5. Be transparent. This is almost cliche now, though this is why it is important and should not be missed: Without disregard for being humble, the more you reveal, the more people will understand where you are coming from. It’s not about blurting out some statement suddenly. It takes time to show yourself, who you really are. This motto applies to most aspects of life and business. The idea behind transparency is much more of a human personality trait. It’s for you yourself and the people that you care about; It’s for the audience that want to know when they ask; It gets to be that you no longer even think of this idea, it just becomes a part of your lifestyle. When you are fair, transparency will occur naturally because you will be proud and secure to reveal your true thinking.
6. Create a comfortable environment. A girl friend once told me about a miserable phase she went though when she and one of her girl friends were living in a basement with no windows, lots of dogs, mildew, low ceilings, old carpet, low lighting, etc. It sounded dreary to say the least. She wasn’t aware of the concept of space enough to understand that it was drastically effecting her mood. When she moved into a more comfortable apartment that was full of light and had higher ceilings, she regained her spirit. Having a great work environment is just the same. And websites are like spaces too. When you create your physical space or your space online, consider making it comfortable as possible.
7. Listen to your audience, friends and advisors. The more you can get feedback and audience participation, the more you will understand the positive and negative effects of your efforts. The more you understand the effects you are having, the more you can understand what to do in the future. If you trust yourself to filter the ideas and information that others give you, be quiet and listen more often. Allow the audience/journalists/experts in your field to describe your activity for you.
8. Have spirit!
9. Time is of the essence. It starts with the age-old model of speed that can be applied to everything in life. In a war, for instance, the side that obtains the information first about where the other side is will have the advantage; The investor who knows the news first will have the stock advantage. The technologist who creates the first this-or-that will have that advantage to begin with. Speed=Potential. If you have something new, take action before it becomes old.
10. Stay in control by giving control away. The more you give up control to others, the happier everyone will be. Not only will the people who work for you be happier, it will allow you more time to focus on the things you do best.
Well Andrew, I have been doing all these without reading your advise but now reading it makes me wonder: what if you apply it all and still have so many defects and problems??
For example number 2, you pay people more then they reach a higher calibar on your expense and eventually leave you to a medium size, more stable company !!! As for number 10, you delegate and you wake up on crisis of things not done at all or at least completely opposite the way you want or it should be.
Anyway, at least your points give me a positive feeling: I am not the only one in this world who think that things should be done this way as you described !!!
Change Management IS Changing How You Manage
Why do so many change management programs fail?
In their new book, Transforming Your Leadership Culture, authors John McGuire and Gary Rhodes, of North Carolina’s Center for Creative Leadership argue that it’s because they focus too much on changing systems, processes and procedures — and not enough on changing the people and the culture of the organization.
Key findings from their research:
- Effective change management has to start from the top.
- Leaders cannot delegate transformation to others and, without leading first by engagement and example, success is very unlikely.
- Culture change has to be a personal process first and foremost.
- Change also comes when beliefs change.
- Successful change starts with the beliefs of the senior leadership team and spreads into the middle of the organization. From there, it is likely that momentum will build as successive levels of employees buy into change.
BOTTOMLINE: In essence, change management is about doing exactly that: changing how you manage.
