Re-positioning yourself demands real changes, not just cosmetic ones. You need confidence in your investment so that you will stay with it for a long period of time. — Harry Beckwith


What the Comanches Teach Us about Strategy
January 17th, 2011 by dave

Every American Indian tribe (and every Texan and Mexican) feared the Comanches in the 1800s.

Their rise to dominance is in part a story of positioning strategy. I’m just finishing Sam Gwynne’s recent book, Empire of the Summer Moon – a riveting narrative on the rise and fall of one of the most feared tribes in American history. Only the Sioux on the northern plains come close to the Comanches’ ferocity.

The Comanches’ ascent can be traced clearly to their expertise in raising, breaking, and riding horses. Over the course of about 200 years, the tribe developed a specialty in handling horses. Consequently, the Comanches made their living by hunting buffalo and warring against other tribes (stealing their horses) and, eventually, killing the white man. The tribe had no patience for subsistence farming.

At a young age, Comanche boys had a horse to ride. By the time they were in their teens, a young brave could sweep up off the ground a wounded comrade at full gallop. For years, the Comanches raided and slaughtered the frontier settlers, including the Army and even the early Texas Rangers. For example, when chasing and then engaging the Comanches after a raid on a settlement, pursing soldiers would dismount their plodding Army horses to shoot their muskets. It took a minute or so to reload the rifle.

But the Comanches would stay on their mustangs, which were much leaner and faster than the those of the soldiers, and charge into a line of standing soldiers. By the time it took to reload a musket, a Comanche brave could shoot a dozen or more arrows while hanging on to the side of a horse at breakneck speed.

Eventually, the inexorable advance of the white man pushed out the Comanches. The white man slowly learned to ride more like a Comanche warrior – on a fast horse. And then came the game-changer: the Walker Colt, the repeating revolver. Then it was the white man’s turn to slaughter the Indians.

The simple point is that power comes from being really good at something. Ergo, one thing. Consequently, you develop a reputation (and a messaging strategy) for that one thing.

The specialist position is really the only tenable marketing strategy in today’s explosion of organizations, services, and products.

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.

Let Us Bore and Ignore You on Your Campus Visit
May 17th, 2010 by dave

It is that time again: college visit season.

This spring my daughter, who is a junior, and I made it to five colleges for overnight campus visits.

A campus visit is no small thing. It involves time off school (and work for mom and dad), travel, and the expense of accommodations. You don’t do them on a whim. And you certainly don’t visit schools that your child is only mildly interested in.

By the time a prospective student visits the campus, that student is a “hot” prospect.

Schools foot a big bill to get them there—purchasing names for search mailings, sending admissions staff to college fairs, conducting email marketing and advertising campaigns, and designing glossy view books. Add to that the expense of the visit weekend itself – more mailings, tours, free meals and tee shirts and Nalgene bottles, and the herculean efforts of admissions staff, administrators, professors, and student ambassadors to make it all happen.

Why leave any element of the visit to chance?

Since my son was searching for his ideal college fit two years ago, I have been a proponent of overnight visits, thinking the best way to get a feel for a campus culture is to experience the campus. But not every school allows overnight visits.

Now I may know why.

Twice now my daughter has been picked up by her student host, brought back to the dorm, and told, “I have to go to the library to study for a big exam tomorrow. You can go and do the stuff they’ve got planned for prospects. Here’s my cell phone number – call me when you want to get back in the room.”

Huh?

You are leaving your hottest prospect to fend for herself for hours on end during a visit that could seal—or break—the deal?

At one school I learned that the student hosts aren’t compensated for their efforts, they aren’t trained, and they don’t even volunteer to be hosts. The admissions office sends them an email telling them they’ll be having a prospective student stay with them.

A prospective student is a potential paying customer – more than $120,000 for four years. A campus host is the closer.

Would you entrust the best leads in your sales pipeline to someone who isn’t ready, willing, and eager to engage in the sales process?

Would you allow your $120,000 prospect to feel lonely, bored, and annoyed during the most critical moments of the sales process?

By Bernice Mirrilees
Account Executive
CZ Marketing

Differentiation Debunked
April 22nd, 2010 by dave
“The marketplace is a wind tunnel, and the wind wants everything to be the same.” 

That simple statement by Bruce Philp, branding guru to ING Direct and co-author of The Orange Code, is what makes identifying and landing new prospects so difficult. But being different from your competitors isn’t all that it appears to be.

In the second of three interviews with CZ, Philp debunks the myths of differentiation:

Brand & Strategy: What are the myths of differentiation?

Bruce Philp: I think there is just one dangerous myth: differentiation is rational. That’s fatal thinking.

How so?

There are two reasons–and the first is practical. There is almost no innovation that can be sustainably proprietary anymore. Performance differences are either so slight as to be irrelevant as a basis for choice, or they are impossible to own for long in a world where fewer people make things than sell them.

You can be Apple, and live what is surely the hell of having to beat yourself every time you go to market, or you can be P&G and make a full-time job out of engineering performance claims year after year. Those are successful businesses, there is no doubt, and it would be foolish to argue that it’s impossible to differentiate with innovation.

But, for most companies, innovation is expensive. And it’s often pointless, and very easily emulated by competitors who, maybe even with pride, see themselves as fast-follow marketers bent on commodifying their categories.

And the second reason why it’s fatal to believe differentiation is rational?

It’s more complicated. I think that consumers, regardless of what they may say in focus groups, don’t want the burden of comparison shopping for everything on the basis of rational performance. It’s a lot of work, and it puts too much responsibility on them. They want a proxy for that.

A proxy for what?

Consumers want a reasonable excuse to make a choice that is right for them and not feel vulnerable as a result. Very frequently, this is the job of a brand. People look at what they think a brand stands for, what sense they have of its past conduct in this regard, and the authenticating coherence of its presence in the marketplace. Consumers ask, “Do the values motivating this company align with mine, as they relate to the product I’m about to buy?”

And if the answer is yes?

Then the choice begins there, and not on a spec sheet. It’s not very different than the way we would pick an auto mechanic. I can’t judge whether the guy who’s going to work on my old sports car knows what he’s doing, but I can intuit his love of cars, I can see that his workshop is clean, and that he seems to take pride in his work. I can be reassured by the way he looks me in the eye and firmly shakes my hand.

So differentiation is instinctual.

Yes. The door to trust is opened emotionally and instinctually. Only after that is it about performance.

I think this exposes differentiation for the art it truly is. The best work I’ve seen done in this part of the branding process has always started not with what a product can do, but with who made it and why. Almost unfailingly, that leads you to the basis for sustainable differentiation. This type of differentiation is virtually immune to what competitors might do, or how circumstances might force your hand tactically in the future.

Show me a category where this isn’t true, and I’ll show you a commodity business–now or imminently.

Known for One Thing
June 29th, 2009 by dave

The only thing I despise more than car payments is paying for car repairs.

For the past 17 years, I’ve taken my cars (vans, trucks, etc) to a small garage run by two brothers. The other day when I picked up my truck, the younger brother (who is the boss) had on a shirt with the words: “Specialists in Imports.”

Years ago, my brother-in-law referred me to the garage, saying, “Mello Motors is really good at imports.” That resonated with me since, at the time, my wife drove a Toyota Camry.

I remember, though, thinking, “How will the garage do with my Buick?”

Of course, the Mello brothers had no problem with an American engine.

They had positioned themselves as experts in one thing: imports. It worked. The Mello boys ended up servicing our Camry and our Buick … and every car since.

This is an important point about messaging: You always message specifically to your position. Mello Motors advertised as a specialist in imports. That doesn’t mean the garage won’t service domestic cars.

You always grow by focusing your messaging on your one thing – while still providing services in other areas. The only exception is if you want to lay claim to the generalist position (which is the death knell for most organizations in today’s highly specialized environment).

I’ve found that in general, most organizations fight the strategy to specialize, but it’s the only way to stand out.

Fight for What’s Unique
November 10th, 2008 by dave

Every fall, my wife and I trek west from Chicago to the Amana Colonies in eastern Iowa, about a three- or four-hour jaunt from our home. This year was our seventeenth year. We started in 1992.

We rendezvous in the Amana Colonies with a couple from Kansas City for a long October weekend. I went to graduate school with the husband, and my wife worked at a Dude Ranch in Colorado with the wife. The couple introduced us about 18 years ago in Denver. Through good times and bad, cancer and job loss and six kids (total), we’ve never missed a fall in eastern Iowa.

The Amana Colonies are a series of villages, originally established in the mid-1800s by German immigrants who had come to the States in the mid 1840s to avoid religious persecution. The Amana Colonies formed one of America’s longest-lived and largest religious communal societies. The community supported itself through farming and the production of wool and calico. The community also made clocks, brewed beer, and made well-crafted products. (The folks at the Amana Colonies are not like the Amish or the Hutterites, who eschew modern comforts.) You’ve probably heard of “Amana Radar Ranges” or other kitchen products; there’s a manufacturing plant in one of the Amana villages, though it is now owned by a conglomerate.

Today, the Amana Colonies is mostly for shopping and eating. My wife and the wife of my friend shop at village shops while he and I play golf, watch college football on TV at the bed-and-breakfast, or attend an Iowa Hawkeye football game in nearby Iowa City. It’s a weekend for slugs.

Over the 17 years, we’ve seen the Amana Colonies morph from a destination place with boutique shops, each with unique inventory, to what it is today: a series of generic shops all owned by the Amana Colonies corporation. That is, when we first started visiting the Colonies in the early to mid-nineties, the shops in the villages were independently owned. My wife said recently, “Each shop was unique. You never knew what you’d find; shopping was a lot of fun.”

But that all changed.

In recent years, as best I can tell, the Amana corporation may have forced out the independent shop owners by not renewing their leases. So, today you still have, for example, many of the kinds of shops that you had in the 1990s, but they all pretty much sell the same thing – what the buyer at the corporation decides is good for all the stores. The creativity is gone. The individuality is gone. The corporation came and made everything bland.

It’s hard to know if the drop in tourist visits to the Amana Colonies preceded the move to standardize the shops or is a consequence of shopping that has become generic.

But the point is still true: Corporation thinking tends to value standardization and efficiency. No doubt, there’s a place for that. But someone needs to fight for creativity, for being unique, for taking risks. That is, if your organization wants to grow.

The ZAG Mantra
September 23rd, 2008 by dave
The only thing that keeps a zigzag from being a straight line is the “zag”…the departure from the stasis. 

“When everybody zigs, zag,” says Marty Neumeier, president of Neutron LLC, a San Francisco based firm specializing in brand collaboration and author of ZAG.

Neumeier spoke with CZ about why organizations need both compelling and different ideas to be heard and seen in today’s noisy, cluttered marketplace.

Brand & Strategy: How do you define differentiation?

Marty Neumeier: I call it zag. When everybody else zigs, you should zag. Zag should be your mantra. You can’t be a leader by following another leader.
What makes differentiation so critical today?

Because of so many customer choices. Customers have control. Customers now have to eliminate choices because there is so much market clutter.

You argue that customers control the brand. How?

A brand isn’t what you say it is (as the brand owner); it’s what the customer says it is. That’s a new idea. Businesses think they are in control of their brand and that they are managing their brand…that it’s their property.

I think it’s their responsibility. But the owners of the brand really are the customers. They build the brand inside their heads and their hearts with whatever materials you give them.

How do you build a brand you’re not in control of?

You don’t stop at the strategy level. You keep zagging all the way through to the customer experience. It’s not just differentiation; it’s also execution and innovation. Start by asking a series of questions: Who are you? What do you do? Why does it matter?

In the beginning, most leadership teams answer those three questions simply and in a compelling way. However, they soon can’t yield simple answers. You need to get answers to those questions, and at the end of that process you’ll have what I call a trueline…the one true thing you can say about your brand that makes it both different and compelling to a tribe of customers.

Uh, what’s a tribe of customers?

We’ve had a hundred years of mass production that has fractured communities. People long for community. Making decisions within a community simplifies things. It’s a quick way to sort through your choices.

For instance, if you need to buy a car, you think, I need to buy a car. All my friends are buying Jaguars, so I have to have a Jaguar. Boom! Done! That’s what you get in your tribe…Jaguars, not Cadillacs.

Your choice links you to your community so you get respect from it. People can belong to more than one tribe so you have overlapping tribes. Thinking in terms of tribes is a better way of looking at things than is “How many people can we sell to?”

This is a scary proposition for most companies: How do you manage something that is in someone’s mind?

Can traditional marketing research identify tribal thinking?

Not yet. The emotional part is too complex for most formulas. However, while not quantifiable, there are patterns that signal whether you’re on the right track. So, pattern recognition becomes more important.

Can you create a clan for your brand?

It’s like my mother told me: “If you want to be a leader, find a parade that has no leader and get in front of it.”

Pick a Position
June 5th, 2008 by dave

To read the first part of this interview, click here.

The surest way to fail is trying to be all things to all people. You can’t stake out your brand with a mish-mash of promises and services.

According to Harry Beckwith, author of Selling the Invisible, and You, Inc, you can only be one thing—and there are eight positions of power an organization can choose from. In this follow-up interview, CZ President Dave Goetz asks Beckwith to differentiate the positions and how to pick one that can work for you:

Brand &Strategy: Are there a limited number of positions your organization can possibly have?

Harry Beckwith: I believe there are eight positions of power in any market—and you start by focusing on one:

  • Pioneer/Leader vs. Innovator;
  • Premium vs. Discount;
  • Specialist vs. Generalist; and,
  • Performer vs. Service.

What’s the difference between the Pioneer/Leader and the Innovator?

The industry leader is big and well established, whereas the innovator is small and less established. Industry leaders rely on an established image, like “good,” “solid,” or “consistent.” The innovator, on the other hand, can be riskier. Tired of the old way of doing things, they think and execute outside the box. Apple is an excellent example of this—coming in and going after IBM.

What about the difference between the Premium and Discount position?

It’s based on pricing. It’s the difference between Tiffany’s and Target. Regardless of how you’re positioning, you want to be aware of your pricing and what it communicates. But your pricing, in most cases, doesn’t drive your message.

The premium priced position is desirable in a lot of ways because it communicates your brand quickly. The consumer knows what they’re getting, and even if it’s a lot of money, there’s a sense of security in that.

Why is there security?

No one’s going to fire you for choosing the best. And if you’re the best, you’re the one chosen. Take McKinsey Consulting: They’re master of the universe and will come up with a hell of a solution for you—but it’s going to cost you a lot.

There are also arguments for choosing a low-priced brand: “I’ve only got so much money, but I can’t do it myself.” Or, “Yeah, they’re low priced, but they know more about it than we do. They can help us, and it won’t cost us a fortune.” Let’s face it, there’s always a market for the lowest priced web developer, if all you want is something that runs, and it doesn’t matter what the product looks like.

But generally speaking, the Discount provider is not among those stalwart positions.

Is there also a sense of security when you choose a Specialist over a Generalist?

Yes, because a jack-of-all-trades can’t be a master of one. You want somebody who is highly experienced and highly specialized. All other things being equal, the more they know about something, the more they work with it, the more proficient they probably will be.

If you have a detached retina, you don’t want a general M.D. You want a detached retina specialist! There’s a security that goes with that.

When it comes to choosing a Performance or Service position, what must organizations consider?

The Performer is not concerned about a touchy-feely experience but focused on high levels of performance.

On the other hand, the Service position is client-oriented. They may not offer brilliant solutions, but they provide valuable solutions along with a good experience. When organizations focus on service, clients experience a high degree of comfort.

Why then do people choose the Performer?

Because everybody wants the best. Sometimes all we really want is a positively good outcome.

What if the outcome is great but the experience is terrible?

Some people find that the outcome really wasn’t worth it. I think people consistently underestimate how much we value the experience—and how little we value the performance. Often it’s difficult for us even to tell if it was a great performance.

For example, you hire a contractor to redo your slate in your bathroom. You get six different people in to do it. Now, there could be some real differences, but really I don’t know who does the better job. However, I sure know who I felt better working with. If so-and-so screws up, I like working with him because I can tell him, and he’ll fix it—and fix it properly.

We tend to put on our rational hats that values cost-benefit and performance outcomes. In the process, we lose sight of the fact that we’re human beings who like to be respected, like to feel good, and like working with people we can trust.

“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?

Deep Conversations
February 24th, 2008 by dave

If your market has ever ignored a product, a concept, or a message you thought was genius, then you know the pain of figuring out what your consumer really wants. B&S recently interviewed John Winsor, author of Beyond the Brand, who says the place to begin is a deep conversation with your customer.

B&S: You suggest that organizations must innovate to thrive. That’s hard for institutions with a long history.

John Winsor: Innovation is about having deep conversations with your consumers to find out if the product you’re delivering is what they really want.

Take Harvard, for example. Recently, they re-evaluated their financial aid program, because they realized that its college costs were driving away low-income and middle-class students. Though largely viewed as an elitist institution, they have increased the number of low-income students by 33 percent. This move is causing other universities to rethink their financial aid models. There’s cultural pressure to change. And it’s scaring a lot of people.

I’m always surprised that more universities don’t take the perspective of “Let’s do something unique!” Not enough universities go out and really listen to their consumers—students and parents—to reinvent what the university should be … or could be.

What kind of leadership do you need to innovate?

There’s a new president, Richard Celeste, at Colorado College. The trustees elected him not for his university experience, but for his life experience and leadership skills. He was the two-term governor of Ohio and the ambassador to India. He brings to the university an eclectic, interesting point of view as well as great leadership skills.

From big consumer companies to universities to non-profits, the prototypical manager/CEO—a guy with an MBA—usually gets hired. But these people have a trained way of thinking about organizational growth and management, which gets in the way of any kind of creative thinking or creative solutions.

One marketing strategy for innovation has been to identify and recruit “Influencers” to carry the ideas into the market. How do you view the power of Influencers?

In the February 2008 edition of Fast Company, Duncan Watson authored an article entitled “Is the Tipping Point Toast?”

In it, Watson refutes the idea that Influencers are largely responsible for the success of a product or trend. Of course, we all want to pin down Influencers, because it seems easier to reach only a small group of people—and not the entire market. But, it doesn’t wholly work, because you have to know how an Influencer actually influences.

So if not solely Influencers, what else drives good ideas into the market?

I think culture does. Watson uses an analogy of a forest fire to explain his point: There are thousands a year, but only a few become threats; in those rare occasions, the environment is ripe.

Or think of it like this: You can send somebody with a tanker full of gas into a forest and blow it up—that person driving that truck has a lot of power to influence. Or you can send somebody into that same forest with a single match, and if the conditions are right, it, too, will start a huge fire.

Influence can come from anywhere, but the cultural conditions determine what will spread. You have to understand your culture.

That sounds abstract and hard to control.

For a lot of organizations it is really hard. It feels like you’re throwing everything to the wind and saying, “Well, influence is really random.” But if you continue having real conversations with your consumers, you can predict intuitively where things are going. To understand the bigger cultural issues, you need to ask: What’s really happening out there? How are things really changing? Then you have to connect the dots to get the full picture. To do that, you’ve got to get out of your office and interact with your customers.

How do social media enable deep conversations?

Social media gets you inside the conversation; you’re not observing from the outside.

You can sit outside the door of a restaurant and analyze the quality of the food, service, and ambiance, or you can sit down and experience it. I think blogging is the same thing. You’ve got to jump in the stream. You’ve got to be a participant. You’ve got to be a part of the conversation—and people will find a way to connect to you and have a conversation. From there you’ll be able to identify key voices and cultural trends.