I always use branding to describe all of the activities you engage in to reinforce your message. And an enormous part of this is your internal activities. Your staff activities create a sense of authenticity. — Harry Beckwith


Brand Search, Brand Power
October 20th, 2010 by dave

In the wide world of the web, how do you ensure that when a consumer hops on a search engine they find you first?

Bruce Philp, branding guru to ING Direct and co-author of The Orange Code says that the answer is differentiation. Here in the third of three interviews, Philp talks about how the Internet has changed brand management–and relinquished control to the consumer.

Is the notion of differentiation irrelevant in a “Google-search” world?

Bruce Philp: Trout and Ries would have been hailed as geniuses if they’d described the concept of positioning about twenty years later than they did. Search is the reason why.

Positioning stipulates that a brand be recognizable as one of a pool of comparable brands, and that this pool is defined by a particular kind of user.

Can you give an example?

We don’t think about Levis as competing with all forms of lower extremity coverage, or even with all kinds of pants. They compete with other blue jeans, and we consider what makes them different in that context.

That generates more powerful differentiation, because it forces relevance. It becomes not just a matter of being different, but to whom and against what set of expectations.

How do you win at a search?

To win at search, a brand absolutely must think first about the tribe it’s selling to (to borrow Godin’s word) and their particular expectations and definition of themselves. That discipline directs effective search strategies, but it also directs focused branding.

It seems impossible to manage how people perceive your brand. Is that true?

I contend that it’s impossible to manage a brand anymore. Brands are no longer taught in a one-way, didactic context like they were in the age of advertising. Instead, they are observed across the full spectrum of their behavior.

In effect, this means that everything a brand does adds to its meaning. That’s because there are so many channels open–including the Internet–and because the social consensus that advertising is the ‘official’ voice of a brand is broken.

What happens if you try to strictly manage your brand?

A brand becomes a totalitarian state with a massive bureaucracy focused on control. It moves slowly because every single tactic is a decision. It’s an unsustainable approach for any brand that has to do business with consumers in a competitive context, when disruption is coming at it faster and faster.

When Google can tell me not only what people have said about the brand in the last days, weeks and months, but what they’re saying right now, it’s hard to imagine that the brand as a fascist state can stand.

What’s the alternative?

Manage a brand from principle. This is the constitutional model I proposed in The Orange Code. Instead of creating a book of rules, we create a declaration of principles. We hire for it, we reward it, we tell the world about it so that we’re held to account. Over time, the organization begins to organically behave according to those principles. They become its culture.

Thus, in a world where everything an organization does accretes to the brand, that entire organization will very naturally get it right most of the time.

Gutsy Branding
April 3rd, 2009 by dave
It’s a bank that claims to not be a bank. 

And it doesn’t siphon off its customers’ money with hidden fees and service charges. Instead, ING DIRECT promises to help you save money—at a great interest rate.

In an industry in which “bank” has become a new four-letter word because of the sector’s general disregard for its customers, ING DIRECT has become a stand-out—even likeable—brand.

In an interview with CZ President Dave Goetz, Bruce Philp, principle of Brand Engineering and chief brand architect of ING Direct, and co-author of The Orange Code, identifies what your brand must do to trump the competition:

Brand & Strategy: You wrote, “… don’t dominate the category, subvert it.” How do you do that? 

Bruce Philp: People tend to use the word subversive when they really mean “iconoclastic,” or even just “unconventional.” My definition of subversive is much more orthodox.

Like it or not, when you position a brand, you have to face the brands against which consumers will compare it. In our case, we were going to be compared to the status quo, which would never be a level playing field for our low-cost business model. If the status quo doesn’t support your business concept, then don’t dodge the comparison—undermine it.

Reframe it and cast doubt on it.

Don’t try to fool people into thinking you’re the “best” something. Be the only alternative to a flawed something.

How did that work with ING DIRECT?

We said the last two things you’d ever expect a bank to say: “We’re not a bank,” and “Save your money.” And we said them with such confidence that consumers couldn’t help but challenge their own assumptions about both.

That’s subversive positioning.

You talk about the dangers of boredom when messaging to your audience. What are some signals that it’s time to rethink your advertising strategy?

I think it’s important not to lose sight of what advertising really is. Too many people in our business tend to unconsciously equate it to branding. But of course they aren’t the same thing, and probably haven’t been since, say, the 1970s. Advertising isn’t a brand, it’s a brand asking a consumer to do something.

When we think about boredom or wear-out, we have to think of it in terms of how we’re asking them—not what, and certainly not in what character.

Do you believe that consumers own your brand?

I don’t, even if they seem to say so in focus groups. I think brands exist by the consumer’s grace, but consumers don’t want to own brands any more than, say, they want to govern themselves by plebiscite. They want to be heard, but they don’t want brands to delegate leadership to them.

Left to their own devices, consumers can figure out what a product needs to do, but they’re not going to inspire themselves.

If you leave branding to consumers, you’ll wind up with low margin, commodity businesses. Great brands are like lighthouses, an illuminating beacon that consumers find in the darkness.

How do brands become this “lighthouse”?

“Gut” is really important. By “gut” I don’t mean an ability to predict how people will react to something. I mean the conviction to pursue your agenda as a brand and trust that, if it’s in the best interest of enough consumers, the marketplace will reward you.

It’s guts more than it is a gut instinct.

Apple is a poster child for this notion. Virtually nothing they do is entrepreneurial. Nor is it the product of permission marketing. Nearly all of what they do is the product of a fierce, singular, take-it-or-leave-it vision. I know that not every business can function like that, but it’s amazing how many of the ones we admire the most do.

What are other traits of this brand gutsiness, especially in a down economy?

The brands that seem to be acting like those lighthouses share the following qualities:

  • They have not abandoned their purpose. By not dropping their principles like hot potatoes at the first sign of pressure, they have proven they’re authentic at the moment when doing so would have the greatest impact.
  • They have reached out to their customers and tried to turn them into a community.
  • They have not exploited the anxiety of the times.
  • They have concentrated on value.
  • They have listened hard to what people are really feeling and put a special effort into being genuinely empathetic.

What is your best positioning advice for senior leaders in universities and other third-sector organizations?

Dare to have a purpose.

In my work with such organizations in the past, I’ve very often seen a stultifying kind of commodity mentality. It’s a product of well-meaning people who believe that they’re betraying their callings if they focus on one constituency or one mission to the exclusion of all others.

The exception to this reluctance is the charitable organization that exists to fight a disease, for example. It’s no coincidence that these are some of the most strongly branded NGOs. They have a singular cause.

By contrast, organizations like industry associations and universities have a pathological fear of taking a stand. They don’t want to leave, as we put it in The Orange Code, “money on the table.” And it’s tragic to see how often they fail, or at least never seem to get anywhere, as a result.

What about those willing to take a stand?

Make a mental list of the most prestigious and superbly branded post-secondary institutions in America. Is there even one brand on that list that isn’t famous for just one or two defining vocations? I bet not.

What makes that a bit mystifying is that when a school decides to promote true excellence in one or two areas and succeeds at it, the entire school becomes more prestigious. Excellence is a reflection of the brand, not the curriculum. Just about any resume is better with Harvard on it—even if it has nothing to do with medicine, law or business.

Great Pizza Beats Great Service
August 15th, 2008 by dave

The owner is Greek, the restaurant is Italian. And it serves the best Chicago-style stuffed pizza in the Chicago area.

That’s saying something, given that there’s a pizza joint on the four corners of every major intersection. This restaurant is not a franchise. Not a carry-out-only place. And while it serves other Italian food – I don’t know that for sure, since I’ve eaten only the pizza.

To beat the rush weekend evenings, we order in. That is, my wife or I call about 40 minutes ahead and place our order. We arrive with our three kids, two of which head to a playroom with video games and other toys.

We put our name in with the host, who most often is the grumpy, squatty gray-haired owner-grandma. She barely looks up when you walk up to the podium that she peers over to take your name. We remind her that we’ve already ordered. I don’t think she smiles. She plays no favorites.

The service is slow, the waiters and waitresses are never around when you want another drink. You wait for your check. You wait for the box to take home the leftover pizza. It’s the place to go if you want to test your patience.

In short the restaurant violates pretty much every marketing principle of the last quarter century.

Yet, I suspect that the owners fit the profile of the rich folks in the best-selling book, The Millionaire Next Door. The restaurant mints gold, the pizza is gold.

So I wonder what there is to take away from their success, and the only thing I can think of is this: Great pizza trumps great service. That is, if your product is really, really good, then your service can be average.

That doesn’t sound right to me, but I’m stumped.

Thoughts?

“We Do Anything”
May 26th, 2008 by dave

I spent several days near Bozeman, Montana, in mid April, and I passed on the road several glossy orange trucks with large black lettering that read “We Do Anything.” The trucks were about the size of a mid-sized U-Haul; the black lettering looked like it was painted by my 6th grader.

At first, I thought, Wow, these folks could sure use some consulting. Their strategy is too general – they do anything. That means they really do nothing. What a poor way to market your small business!

Then I began thinking about how I might use them at home in the Chicago western suburbs:

1. We have a heavy wooden swing set (which could survive a nuclear attack) that I’d like disassembled and taken to the dump.

2. We have two golden retrievers, and when I get lazy or forget to scrape up their business in the backyard, I might just give “We Do Anything” a call.

3. We have an old shed in the backyard that also needs to be torn down. Yes, I could do that. But why ruin a perfectly good weekend?

4. In the next month, I need to put a seal coating on our paved driveway. How motivated am I to do this, really?

5. I have some large limbs from trees that were blown down from last summer’s microburst that need to be cut up and taken away.

It hit me that the messaging of “We Do Anything” is not general, but very specific. It’s so specific that your mind goes immediately to the projects that you’d like completed but have wondered whom to call. My guess is that not only does “We Do Anything” land the hard jobs – they also get some projects that typically go to painters or sealcoating companies or even carpenters.

Does your brand evoke something specific in the minds of your prospects?

Your Brand’s Little Things
February 29th, 2008 by dave

I always toy with whether to tip at coffee shops, $2 coffee already seems way too expensive.

At the local coffee shop, a “competitor” to Starbucks, the atmosphere makes up for the unbranded (but still expensive) coffee. The place has high ceilings, funky art (kind of), wood floors that need to be refinished, and a sofa that looks and feels like its previous stop was the boys dorm lounge of the local college.

Most visits, I drink plain old regular $2 coffee. In a mug. I never tip. But occasionally, I’ll splurge and request a cappuccino in a mug. I hesitate, inwardly, as I sign the debit card receipt: Should I add a tip?

My head screams no – I shouldn’t have spent this much money in the first place. My heart says, “Well, she doesn’t make much money making coffee in this ostensibly struggling small business. I bet she doesn’t get health insurance like the folks across the street at Starbucks.”

But my head always wins: The server is emotionally flat, barely grunts when I tell her my order, and never brings my foo-foo coffee to where I sit. There’s no real value to the service. The other day, about five minutes after I gave my order, the server essentially walked by the table where I was tapping away on my laptop and pointed back to the register, where my medium, frothy cappuccino sat: “Your drink is over there.” She wouldn’t bring it over, even though my table was on her way.

It ripped me that I had to get up and walk 7 paces to grab my cappuccino. Then I remembered that I didn’t tip her. I then asked myself, “Would she have brought me my cappuccino if I had tipped her?”

So, the question is, “If I’m the server, do I go the extra mile for only those people I think will tip me?” Or, do I serve everyone with the same level of service?

So much of, maybe all of, branding comes down to execution of the little things. It’s easy for pretty people in large conference rooms to wax on and off about branding. But branding comes down to the person on the front-line, who is or isn’t executing on the brand promise.

The person who answers the phone. The receptionist. The student who is leading your campus tours. The assistant who prints out your reports and sends them to the client. The person behind the counter at the cafeteria in the food court of your museum.

So does your assistant know how important his/her job is to the brand of your organization? Or, is she just doing “administration” work for $13 an hour?

Jack Be Nimble, Jack Be Very Quick
February 9th, 2008 by dave

I love Steve & Barry’s. I just bought two pairs of Starbury tennis shoes for my 12-year-old for $8.98 each. You get two trendy, colorful pairs of shoes that an NBA basketball star wears for work for only $19. I wanted to buy more – just because I could.

Steve & Barry’s is a recent addition to the world of sports apparel. In 2006, Steve & Barry’s recruited NBA® star Stephon Marbury to develop the Starbury™ Collection of urban-inspired apparel and footwear. The killer product is the Starbury II, a “high-performance basketball sneaker that Marbury wears on NBA® courts. The Starbury II boasts a sleek design and is engineered with the same comfort, stability, and durability found in basketball sneakers that retail between $100 and $150—and it’s just $14.98.”

That’s what Steve & Barry’s web site promised.

But I got the shoes for just $8.98. Each. Steve & Barry’s had a sale!

The Steve & Barry’s I visited was trashed. The shoe section had empty boxes strewn on the floor, mismatched shoes in boxes, 7 1/2 shoes in boxes that were marked size 10. And the clerks (who can’t be more than 19) shrugged their shoulders when I ask for help. “Yeah, it’s a mess here.” No apologies. No real anxiety.

And I wasn’t bothered by it, the prices too amazing.

Across the corridor in the mall, only 10 paces or so from Steve & Barry’s is another sports apparel store: Finish Line. It is filled with $70, $80, and $100 tennis shoes in boring colors, and other expensive sports apparel. The store was almost empty of customers when I walked by.

It must suck to be Finish Line. There’s no way you can sell your products for the same as Steve & Barrry’s. An upstart comes along and changes the rule. New companies don’t play by the same rules – ergo, that a tennis shoe has to be expensive to be fashionable. I don’t know yet whether the shoes are any good. And does that really matter?

At this point, traditional marketing itself doesn’t matter. Finish Line could spend millions trying to get customers into its store, but for what purpose? To buy boring, expensive, branded apparel? Good luck with that.

I realized that as I left Steve & Barry’s, with my 12-year-old ecstatic, that I had just experienced a “Purple Cow,” a phrase that marketer Seth Godin (www.sethgodin.com) writes and talks about. A Purple Cow is only a Purple Cow if the consumer experiences your product or mailer or service as a Purple Cow. You can’t talk your constituents or clients into thinking that what you are presenting them is exceptional. It either is or isn’t.

“One Thing” Marketing
December 2nd, 2006 by dave

I suspect that one of the most overused movie illustrations comes from City Slickers, the 1991 movie starring Billy Crystal and, among others, Jack Palance.

Remember that movie?

It’s the one in which Curly Washburn (played by Palance), the flea-bitten cowboy, raises his index finger and croaks about the “one thing” that the three “city slicker” characters must discover to find life’s meaning.

Marketing strategy folks often preach the gospel of the “one thing” or “your point of difference” (a phrase I borrowed from marketing genius Harry Beckwith) for organizations, as they attempt to grow in today’s highly competitive climate: You need to be known for one thing, especially if you’re not the leader in your space.

Knowing your “one thing” gives you focus for your marketing communications and serves to position you in the minds of your prospects. It gives them a mental hook.

The problem is that the “one thing” is not one dimensional. Often it’s not merely one thing; it’s a matrix of things that creates the focus.

For example, universities often try to distill their point of difference to one strength: Value; or Academic Rigor; or, Class Size.

But you never own only one strength; it’s often a combination of strengths that make up the One. To make it even more complex, that combination of strengths has meaning only as it relates to your competitors. Your context or environment shapes your point of difference.

We recently assisted a university with their messaging strategy. The university has a combination of strengths: affordability, academics (in relation to its competitors), and size of enrollment. All three formed the foundation of the school’s unique position in their competitive space. There were other layers to the school’s messaging strategy, such as location, but the three dimensions gave the school’s marketing program focus and power.

So, what are the different dimensions to your point of difference?
And how do your competitors’ positions shape yours?