The Gathering asked CZ to help us clarify our message. What we received was far more than that. The brand book CZ created for us has become our playbook and a key part of our plan for the future. — Fred Smith, President, The Gathering


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.

Story Behind the Store Front
July 27th, 2010 by dave

In April I spent a week fly fishing in Montana with a friend of thirty years. It’s our annual trek to Bozeman to fish the lower Madison and the Yellowstone in Paradise Valley.

I’m always puzzled by large number of fly fishing shops near Bozeman, Montana. How do they all survive?

Every fly shop looks to be the same. Each carries rods, flies, waders and boots, rain gear – the basics. Each shop promotes guided fly fishing trips. There are small shops and slightly bigger shops. The bigger stores simply carry more gear or a wider selection of brands than the small shops. One fly shop boasts that it is the official Orvis (a well known brand in fly fishing rods) dealer in the area. Each shop has an online presence, of course.

But that doesn’t really give the business that much of a competitive advantage over the others, does it?

My friend heard that Dan Bailey’s fly shop in Livingston, Montana, was doing well, and we stopped in one morning before floating the Yellowstone.

The downtown Livingstone store looked about the same as the other fly shops, but with less gear, perhaps, than some of the other, newer shops. We were the only two in the store.

Then I learned why Dan Bailey’s fly shop might be doing better than some of the others: the retail outlet is mostly a front for its business-to-business strategy.

Dan Bailey’s is a distributor of fly fishing products to other fly shops across the country. That’s where it has found success.

Strategy does matter.

A perfect Day in Paradise

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.

Treat Social Media like a Toolset
July 10th, 2009 by dave

The American Red Cross had a big problem. The blogosphere was peppered with negative comments about the organization. So the American Red Cross decided to listen to the conversation taking place on the web.

They soon learned there was a gap between how they positioned themselves and how their stakeholders’ described their experience of the organization. Through daily monitoring of blogs and other Web 2.0 tools, the Red Cross changed the way they engage their advocates and recruit volunteers.

According to Geoff Livingston, author of Now is Gone: A Primer on New Media for Executives and Entrepreneurs, this is what today’s customers and donors expect: to be listened to and understood.

Here Livingston offers his advice for making new media marketing programs work for your organization:

Brand & Strategy: Does social media increase lead generation?

Geoff Livingston: It really depends on the program. If you don’t integrate calls to action and natural ways for people to engage further, then your effort is for naught; social media is just a hot shiny object.

Your strategy should treat social media like a toolset, with different ways of communicating. Do your homework. By exploring this site, you can research how organizations have used social media successfully.

Can social media help a non-profit organization increase the number of new donors?

Again, if there’s no integration into your plan, then it won’t! If you do integrate, it will. It all gets back to strategy. Are you talking to donors to accomplish something, or are you just Tweeting? Check out Beth Kanter’s blog for more insights.

How do you convince management to engage in conversations with customer-communities without controlling the conversation?

Show them a blog search with all of the conversations about their company. Or even better, point them to the conversations about their competition. But really, at this stage in the game, if they are still not going forward with social media, it may be time to consider a more innovative organization.

How should “social media releases” be fundamentally different than traditional press releases?

They should be more of a story board for bloggers, providing them multimedia tools to create their own story. Rather than a positioning document, it should provide facts and paths for others to figure out the position, so they can tell it their way.

How do you reach out to bloggers, podcasters, and individuals with high-traffic social network profiles?

You get to know them through conversation over time. You definitely don’t pitch them out of the gates. It’s Relationships 101, really. Treat people like you want to be treated.

How should organizations integrate social media on their own web site?

First, they need to get to know their online community and listen for a while. Then once you understand what your stakeholders actually do online–what they talk about–build your strategy. It should flow naturally.

After the Hype of Social Media
June 16th, 2009 by dave

An article in The New York Times recently provided some statistics on the state of blogs on the Internet. The stats originate from Technorati, an Internet search engine that tracks blogs:

•There are roughly 133 million blogs;
•Only 7.4 million out of the 133 million blogs had been updated in the past 120 days; and
• Between 50,000 and 100,000 blogs generate most of the page views.

Millions and millions of poppies: Which poppy is prettier?

The stats on blogs confirm how cluttered the marketing landscape has become. The herculean challenge is to position your organization accurately and to communicate your message to your prospects with clarity and power.

I say, “Good riddance to the blog fever,” if in fact fewer folks are paying attention to their blogs. Most were lousy writers. Maybe the slow death (or at least slower growth) of blogs will free up some attention for those organizations whose message is worth hearing.

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.

“I Want My Old Health Club Back!”
February 25th, 2009 by dave

I’m a member at a local health club that recently spiked in growth.

It’s an “eat or be eaten” world, and when another local health club closed its doors for a couple weeks, my club feasted on the carrion. Note the phrase my club.

One day while I jogged around the indoor track, I rounded a corner and almost flattened a wizened lady who was walking in a run-only lane. I mumbled to myself something slightly profane and gave her a wide berth.

Does she not know which lane is for walkers? Is she illiterate? Can she not read?

Then one morning after my workout, I wanted simply to sit in one of the chairs in the lounge, sip the free coffee, and cool down before driving home. There was no open chair. A bunch of folks who looked like they had just caught the bus over from the retirement community sipped free coffee and chatted cheerily, like late-night patrons at a neighborhood bar.

Not long after, I began noticing a not-so-subtle change in the men’s locker room. I don’t classify myself as a “younger man” (I’m 46), except that I’ve noticed that there is a great divide in age (and psychology) between men who wrap a towel around their waist while in the locker room and those who appear to feel more comfortable with themselves. I know this sounds age-ist, but the male body after about 70 is no French painting.

Here’s the marketing story: A competitor goes under, and the senior management of my club likely said, “Wow, let’s create a promotion to cherry-pick these memberships from the other club – and voila! we’ll grow while having to spend no real marketing dollars to acquire them. We grow with no added expense!”

Makes perfect sense.

So management repaved the parking lot to narrow the parking spots – and thus increased parking capacity. Then, I noticed for the first time some signs that trumpeted valet parking. Yes. Valet parking for a health club! Most recently, the furniture in the lounge area was upgraded and expanded, ostensibly for those whom “going to the health club” means in large part chatting with friends and drinking branded coffee.

So, my question to you: Has this club’s position in the market changed, given that the average age of the club spiked along with the new growth?

Growth always involves a shift in power from the old to the new. I’m out of power, and the new folks are in. So, I bite my tongue, close my eyes, and head to the locker room to change before I run.

What Women Really Want
June 23rd, 2008 by dave

One size does not fit all.

You’d think advertisers would know that, before spending billions aimed at so-called Soccer Moms. Research indicates most women aged 25 to 45 don’t identify themselves as such.

Whether or not you’re marketing to women exclusively, tailoring your message to the segments of your audience is critical.

Holly Buchanan, co-author of The Soccer Mom Myth – Today’s Female Consumer: Who She Really Is, Why She Really Buys, talked to Brand & Strategy about identifying your customers’ personas and giving them what they want and need:

Brand & Strategy: You argue women want to be acknowledged as consumers with individual needs, not just as members of the female demographic. Is that also true of men?

Holly Buchanan: Everyone wants to think that advertisers are speaking directly to them. But women, more so than men, don’t want to be treated as stereotypes. Their lives are so much richer and more complicated than that. Images and messages that will resonate with them are those that reflect how they see themselves.

So how do you do that?

You begin by creating what we call personas. You can typically identify four or five that incorporate the varied lifestyles, needs, motivations, and buying processes of each of your audience segments. Then you can address each in the manner that will appeal to that specific audience. But be careful not to fragment your message so much that you sacrifice consistency.

What are some of the personas you’ve identified?

An oversimplification would be to equate them to the Myers Briggs Type Indicator, which categorizes how people process information. Are they Left-brain or Right-brain? Spontaneous or Methodical? Humanistic or Competitive?

It’s not enough to identify how your customers are the same—you also need to know how they’re different. You need to do what we call “uncovery” to get to the whys behind customer needs and characteristics.

Seems too complicated to reach each persona with a unique message.

The Internet is a powerful way to connect to different segments of your customer base. Your web site is the most effective place to start. The key is to provide clear pathways so that each persona can find the information they’re looking for when they need it. Then your visitors can self-select the experience they want.

How do you determine what it is they want?

Start by listening to your customers, not just talking to them! Frequently Asked Questions (FAQs) and objections are a great place to begin your research—they tell you what people want to know and where they get hung-up in the buying process. Make sure you address these upfront! And don’t shy away from addressing any drawbacks or “This isn’t for you if … ” scenarios.

If you’re upfront about the negatives, folks are much more likely to believe you about the positives.

What about social media?

Social media has put the consumer firmly in control of the buying process. You can also find out what people already are saying about you on blogs and consumer feedback forums.

If you don’t include your consumer in the “conversation” they will tune you out.

You talk about how “Everything is marketing” and there are hundreds of touch-points. How can you control them all?

You can’t control everything—but you better control everything you can. Small details can be huge in the midst of a purchasing decision—everything from the lighting in your store, the friendliness of your operator, to the cleanliness of your washrooms. The challenge is to not just meet your customers’ expectations but to go beyond that—to delight them.

We’ve found that if you can meet the expectations of your female customers, you will have exceeded the expectations of your male customers.

Be Yourself
April 3rd, 2008 by dave

You can’t trumpet something you’re not. Or, rather, you can, but good luck. You won’t have much of it. There’s no befuddling your potential clients.

According to Harry Beckwith, author of, among others, Selling the Invisible, and You, Inc the positioning of your organization demands authenticity. CZ President Dave Goetz interviewed Beckwith on why consumers buy into “true stories” and how to position yours:

CZ: What does positioning entail?

Harry Beckwith: To establish your position successfully, you must consider two things—how you are seen and how you want to be seen. From there, you measure the gap between the two. Then you can determine how to get to your end goal. Positioning is about moving that perception.

How do you obtain the best position?

There’s no such thing as an inherently superior position. The tendency is to reach to be “the best.” The superior product. The superior service. You can’t because “the best” doesn’t exist. However, each position has strengths and weaknesses. Part of positioning is being mindful of your inherent weaknesses.

Take cell phones, for example. What’s a superior cell phone? To some people, it’s the iPhone, because it’s colorful and does a lot of stuff; it’s even prestigious. To others, the iPhone’s features represent a whole lot of things that can screw up their work. They don’t even want a camera in their cell phone.

So it’s about staking a desirable niche, in which people will catch something really positive—and giving up on this notion of superiority.

Can you change an established position?

Yes, but you can’t position yourself as something you’re not or cannot be perceived as. It’s a waste of energy.

The most vivid example is when Gerber tried to market adult food. The mind didn’t allow it. Frito Lay tried to do lemonade. They produce salty and crispy snacks, so your mind won’t allow you to drink Frito lemonade.

The stronger your identity and the stronger you’re identified with something, the less able you are to be perceived in any way different than that. So it really depends of how flexible your brand is. How far does it stretch?

How does branding relate to positioning?

Positioning is about your message being perceived in a consistent way—like “sexy,” “fast,” “reliable,” or “safe.” Branding reinforces that single message as well as the nuances and subtle sub-messages that come within that.

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. For instance, if you’re a wealth management firm and the assistants are cold and ruthless, then chances are a warm, friendly service message will hurt you rather than help. It will raise expectations, and you won’t meet them. You have to deliver that position—you have to do what you promised.

How often should you change your position?

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. When that position succeeds, you continue to build on your investment.

Take, for example, a University with a well-established School of Optometry: “Okay, we are known for optometry, how might we grow from that? You start to consider adding specialties closely related to optometry—audiology, for example, or other subspecialties in health care. You might offer health care administration in the general university—in short, growing from your strength into closely related areas that expand your offering. Whatever you do, you must begin your strategy by asking, “For what are we known?” And then ask how you can build on that, add to it, and grow.

Good marketing is rooted in good communication: It is concrete, not general. If you’re general—a little of this, a little of that—you’re not strategic. You don’t have a bona-fide, authentic position—and people will perceive it that way.

The Strategy of Positioning
May 27th, 2006 by dave

There’s a corny saying that if you’re not the lead dog, the view never changes. Most organizations and businesses are not the leader in their category. So how do you market your university or service if in fact you are going up against Goliath day after day?

The answer is the art and science of positioning. It’s marketing strategy that works. Positioning is even more relevant today than when Jack Trout coined the word in 1969.

In a recent interview with CZ President Dave Goetz, Jack Trout, the man behind the theory of positioning and co-author of the marketing classic Positioning: The Battle for Your Mind, talks about what marketing must to do to compete in a world of overblown expectations, fierce competition, and commodity services and products.

B&S: What, if anything, has changed over the past thirty years in marketing strategy?

Jack Trout: Essentially, the only thing that has changed is the level of competition. Competition today is intense. It’s what I call the “tyranny of choice.” There is now so much choice that if you make a mistake, your competitors quickly get your business, and you don’t get it back.

It’s the General Motors problem. They made a lot of mistakes and market share continues to drop.

Has your thinking about positioning changed since you coined the phrase?

Jack Trout: No, not at all. My stance on positioning has become more important in the scheme of things because of the level of competition. My first article in 1969 about positioning pointed essentially to the “me-too-marketplace.” The concept of positioning was necessary because of the arrival of more and more competitors saying, “Me too.” My premise was based on the rise of competition.

But did I realize in 1969 what it would be like in 2006? Not at all. At that point, there wasn’t global competition.

Are there a limited number of positions?

Jack Trout: Remember, we’re talking about positioning as a science. It’s the science of the mind—psychology. One of the things we talk about in positioning is the Rule of Seven. In other words, in any category there are no more than seven brand names that anybody can remember, and those are only high interest categories. Harvard psychologists figured out that generally the finite number of brands that stick in people’s heads is seven.

But there’s also the law of duality. If you look at every category, only two brands eventually rise to the top. It’s Coke and Pepsi, Kodak and Fuji. The remaining brands—3, 4, 5, 6, and 7—are working in a fairly small market share.