marketing

We’re awesome! (you suck)

The best 21st century brands won’t be built on advertising alone. Here’s why:

In a world where everyone has a voice, the biggest brands in the world with the biggest advertising budgets can be quickly repositioned… whether they like it or not.

Ask Delta Airlines.

Or ask BP.

The problem isn’t your marketing. The problem is that, when it comes to your brand, your customers aren’t just listening to you anymore; they are listening to everyone who is talking about your brand.

You know this.

But if so many people are aware that the world has changed, why has the way most organizations allocate their marketing and communications time and money not changed?

My advice? Instead of focusing only on customers and prospects, take a more holistic approach where you engage all of the people who care about your brand: what I refer to as the brand community. (I spend a lot more time sharing ways to do this effectively in The Ad-Free Brand.)

In a world where every person on the planet has the power to change the fate of your brand (whether they spend money with you or not), the brand community has to be seen as more than just customers.

For some more from me on this subject, check this out:

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If you found this post helpful…

Consider taking a look at my new book The Ad-Free Brand (not an advertisement, mind you, just a friendly suggestion:). It has some nice tips for how to build a great brand without the help of… you guessed it… advertising!

Only $9.99 for the Kindle, but available in each of these formats:
Book | Kindle | Nook | EPUB/PDF

Where should you focus brand efforts? Community or customer?

It has become a truism in marketing that you should stay focused on your customers. In most of our organizations, we are attempting to sell something to make a profit. We need customers.

But I often use the word community in places where most people would use the word customer. Why? Am I just being naive about what pays the bills for our organizations to continue to thrive? Am I committing heresy by not staying focused on just customers?

I don’t think so.

I believe that the dogged focus on marketing to customers alone has created a myopic view that makes us ignore many of the important people who interact with our brands.

Customers are important; most organizations couldn’t exist without them. So what is the issue?

Customers are not just listening to us anymore.

When organizations focus on only interacting with customers rather than taking a holistic view of the entire brand community, they forget that in the twenty-first century, the version of the brand represented by the organization might only be a small percentage of the brand the customer sees. Where is the rest of the story coming from?

Everyone else who interacts with the brand: the brand community.

When rolling out brand positioning, ad-free brands understand that it matters what everyone thinks about the brand—not just the customers. By understanding and planning your interactions with all of the communities around your brand, you have a chance to impact the customers’ views of who you are in a much deeper way than if you were just speaking to customers directly through marketing and advertising.

And that’s just if you are only concerned with the success of your business itself. If you are a nonprofit or a member of the growing breed of socially responsible businesses interested in benefitting the communities they serve while remaining for-profit, you’ll see even greater benefits from this approach.

So should you be focused on customers? Absolutely. But just remember that you aren’t the only folks talking to your customers about your brand. When you build a brand strategy that ensures the positioning resonates with all the people around your brand and not just customers, you’ll be on the path to much deeper, more fulfilling relationships with the communities surrounding your brand–and you’ll probably be heard by potential customers who would have never given you the time of day otherwise.

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This is the eighth in a series of posts drawn from The Ad-Free Brand.

The Ad-Free Brand tip #3: the community is more than just customers

My publisher recently filmed a series of short video interviews where I discuss my new book The Ad-Free Brand. This is the third in a series of tips from the book, entitled “The Community is More Than Just Customers.”

Three tired marketing words you should stop using

Over the years, I’ve had many people label me as a marketing guy just because I help build brands. I don’t like being labelled, but I particularly don’t like that marketing label. Why?

In my view, traditional marketing sets up an adversarial relationship, a battle of wills pitting seller vs. buyer.

The seller begins the relationship with a goal to convince the buyer to buy something. The buyer begins the relationship wary of believing what the seller is saying (often with good reason). It is an unhealthy connection that is doomed to fail most of the time.

What’s the alternative? I believe companies should stop trying to build relationships with those interested in their brands using a marketing-based approach and instead move to a community-based approach where the culmination of the relationship is not always a transaction, but instead a meaningful partnership or friendship that may create multiple valuable outcomes for both sides.

How do you do this? Consider beginning by eradicating three of the most common words in the marketing vocabulary: audience, message, and market.

So you better understand what I mean, let me attempt to use all three of these words in a typical sentence you might hear coming out of a marketer’s mouth:

We need to develop some key messages we can use to market to our target audience.

Yikes. So much not to like in there. Let me break this one down.

Audience

You hear companies talk about their “target audiences” all the time. So what’s wrong with that?

The word audience implies that the company is talking and the people on the other end are listening. This sort of binary, transactional description of the relationship seems so dated to me.

Certainly in the glory days of advertising where companies had the podium of TV, magazine, and newspaper ads, the word audience was more appropriate. After all, no one ever got far talking back to the TV set.

But in the age of Twitter and Facebook, companies must respect that everyone has the podium. Everyone is talking, everyone is listening.

Where most marketing folks would use the word audience, I often substitute the word community. By thinking of those who surround your brand as members of communities rather than simply as ears listening to you, you’ll already be on your way to a healthier, deeper relationship with the people who engage with your company.

Message

The word message bothers me for the same reason. It is such an antiquated, transactional term. When a company talks about “creating messaging” or “delivering targeted messages” I start thinking we should call the Pony Express.

I believe the move to a community-based approach begins when you quit worrying about “delivering messages” and begin thinking about sharing stories, joining conversations, or sparking dialogue.

These are much better ways to communicate authentically in a collaborative world.

Market

Perhaps the word that bugs me most is market (used as a noun or a verb) and its related friend consumer. Companies that think of people interested in them as consumers or markets take what could become a multi-dimensional relationship and whittle it down to one dimension: a transaction.

If you think of someone as part of your “target market” or a “consumer” you are making your interest in them abundantly clear. You want them to consume something. You want their money.

But what if there were more that people who are interested in your brand could share besides just their money? Perhaps they have valuable ideas that might make your company better? Perhaps they’d be willing to volunteer to help you achieve your mission in other ways?

When you stop thinking of the people that care about your company as consumers or a market, you can begin to see opportunities that you would have been blind to before.

Want an example? Look anywhere in the open source world. Sure there are buyers and sellers, but there are also lots of people bringing value in other ways. Developing code. Hosting projects. Writing documentation. The list goes on.

So let me be the first to admit these three words are the tip of the iceberg. Moving a company from a marketing-based to a community-based approach to building relationships will take more than changing a few words. It will require you to embrace new media, new skill sets, and a totally new way of thinking.

But you have to start somewhere.

Do you see other things that may need to change as we move from a marketing-based to community-based approach to building brands and companies?

I’d love to hear your ideas.

[This post originally appeared on opensource.com]

Want to reinvent management? Start with the managers.

Maybe some day we’ll look back on the role of the manager in our organizations and laugh.

Such a quaint trend. Kind of like having The Clapper in every room of your house, or wearing multiple Swatch watches, or working out to Richard Simmons videos. Each seemed really helpful at the time, but looking back, we kind of wonder what the heck we were thinking.

OK, I’m exaggerating. After all, the manager/employee trend has been going strong for 100 years or more. But are we seeing enormous changes in the role of managers on the horizon? Signs point to yes.

In some of the most forward-thinking businesses and in many projects being run the open source way, the traditional manager/employee relationship, which looks something like the image above, is being replaced with something much less formal and much more flexible.

I think the new model looks more like this:

[read the rest of this post on opensource.com]

Brand positioning tip #11: the 1-2 punch

In the classic book Positioning: The Battle for Your Mind, by Jack Trout and Al Ries, there is an ongoing thematic—the overwhelming value of being #1 in a market. The reasoning? It is extremely hard to dislodge the company that captures a position in the minds of target customers first.

Grow the market like a butterfly, lead the market like a bee... or something like that.

Think about how long Coca-Cola has been the #1 cola (since the 19th century) or Hertz has been the #1 car rental company (since 1918) and you’ll get a sense for how difficult it is to displace the top brand in a market.

As we’ve learned in previous brand positioning tips, a key part of the brand positioning process involves deciding on the competitive frame of reference or references in which you’d like to position your company or brand. I emphasize references because one thing to consider is whether, in addition to positioning your brand in an existing market (where you may not be #1), you should be creating a new market in which you can be #1, because there is no one else in it yet.

Some leading business strategy thinkers refer to this as a “blue ocean strategy” where you choose to create or grow a new market rather than fighting in a competitive one that already exists (a “red ocean”).

From a brand positioning perspective, I often return to a similar principle I call the 1-2 punch.

The 1-2 punch is simple:

Punch 1: Grow the market

Punch 2: Lead the market you grow

Punch 1: You may compete in a frame of reference where you are not #1, but throwing punch 1 means putting your energy into creating or growing a different competitive frame of reference that didn’t exist in the minds of your audience before.

Punch 2: This is where you must really capitalize on the benefits of being an early mover in a market. If you throw punch one (grow the market), but do not effectively land punch 2 (lead the market you grow), you may find yourself in a world of hurt. Let’s look at a few examples:

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Five questions about authenticity and the open source way with Jim Gilmore

A few months ago, I had the opportunity to meet Jim Gilmore, co-author (with Joseph Pine) of the book Authenticity: What Consumers Really Want. I first read the book a few years ago, and it really struck a nerve for me—these guys were on to something.

So I convinced Jim to subject himself to a Five Questions interview about the place where authenticity and the open source way intersect.

CHRIS: After joining the open source world ten years ago, it didn’t take me long to figure out that most open source folks despise marketing as it is traditionally practiced. Is there something inherently inauthentic about the language of marketing? Perhaps open source folks have a low tolerance for inauthenticity?

JIM: I often quote from a letter-to-the-editor that appeared in the Harvard Business Review following the publication of our article, “Welcome to the Experience Economy.” In this letter, Robert Jones of Wolf-Olins shared his definition of a brand as “the promise of an experience.”

Joe Pine and I responded by saying Amen to that, but added that so often the actual experience fails to fulfill against the promise.  Indeed, marketing in general, and advertising in particular, has become a giant phoniness-generating machine.  And not just the language of marketing, but the very practice of marketing so often serves to erode the perception of authenticity among consumers—by making promises that bear little resemblance to the actual experience encountered.

So much creative talent today is engaged in making promises as marketing instead of being employed to create compelling experiences as actual output.  The experience itself should be the marketing.

My friend Robert Stephens, founder of the Geek Squad, is fond of saying, “Advertising is the tax you pay for being unremarkable.”  I feel that way about most marketing.  I’d like to see creative talent diverted from making messages about goods and services and used instead to help create truly remarkable experiences, ones so compelling that they command a fee as product.

[Read the rest of this post on opensource.com]

Brand positioning tip #9: A brand mantra is not a tagline

In Brand Positioning Tip #3, I introduced the concept of the brand mantra. The term was originally coined by Scott Bedbury during his time at Nike, and it refers to a short 3-5 word phrase created to capture the very essence of the brand’s meaning.

Was I supposed to Just Do It or embody Authentic Athletic Performance? I'm not sure. I'll just cross the finish line instead.

Usually a brand mantra includes or hints at some of the points of difference discovered during the brand positioning exercise (learn more about points of difference here). The most famous example of a brand mantra is from Bedbury’s Nike project, where the team coined the brand mantra Authentic Athletic Performance.

The most important thing to understand about brand mantras is that they are not designed to be externally facing slogans or taglines. Case in point— unless you’ve heard the Nike brand mantra story before, you’ve probably never seen the phrase Authentic Athletic Performance associated with Nike in advertising. Usually you will see an external manifestation of it, Just Do It being the prime example.

This is where most well-meaning brand mantra projects go bad. When brainstorming possible brand mantras, it is important for your team to be very clear that they are not writing advertising copy or taglines for external use. There is no quicker path to an inauthentic brand mantra than heading too quickly toward the language of advertising or marketing.

A brand mantra should resonate internally first. The mantra you chose should reflect the core values, mission, and culture of the company while also staying true to the brand positioning (if this is difficult, you’ve got bigger problems, because it may mean your culture and your brand are out of alignment).

The most powerful brand mantras become part of the DNA of the organization, and are used to guide everyday decisions about strategy, user experience, voice, and a host of other things. The mantra becomes a touchstone that is returned to over and over again— especially when decisions start getting tough.

Once you’ve settled on your brand mantra and tested it internally to ensure it resonates, you can finally start working on taglines. Again, think of a tagline as an external manifestation of the brand mantra— written in a language that will resonate with your target customer instead of your co-workers.

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Five questions about the future of music with David Pakman

Traditional media companies are in big trouble. You may have noticed. You know who else has noticed? David Pakman, currently a partner at the prestigious Venrock venture capital firm. You may also know David as the former CEO of eMusic—a fairly disruptive media company in its own right. David has over 300,000 Twitter followers and regularly blogs here about the “undoing of big media.”

Today, we ask him five questions about where the future of music intersects with the open source way.

1. One of the beautiful things about the open source software revolution is it lowered the barrier to entry for developers who wanted to create useful software. Meaning, without going to fancy schools or working for big Silicon Valley tech companies, people in any part of the world with any level of experience could contribute, and if their code was good, they were in. Is the barrier to entry for artists trying to make it in the music industry getting lower too? It sure doesn’t feel like it sometimes.

I think the barrier to entry to write or make music has always been pretty low. Provided you can learn how to play an instrument, you can write songs. The encroachment of technology into every facet of music making has lowered this barrier even further. An entire album can be recorded at great quality in a basement with a Mac and some bundled software. DJ equipment isn’t even needed anymore — you can do it all on your Mac.

The challenges have always been around marketing and distribution, and the internet changed all that. Anyone can launch a site or a myspace page and offer downloads of their music. In 2008, more than 38,000 new records were released. This was the most ever.

Becoming commercially successful by selling music or touring has never been harder, and that is because fewer people are buying music and consumers have more entertainment choices than ever before. So while it’s easier to make music, it’s harder to make a living making music.

[read the rest of this post on opensource.com]

Catalyst or controller of the brand message? Here’s some new data.

A key theme we’ve returned to over and over in this blog is the idea that the corporate model for communications is rapidly changing from one where communications leaders keep tight control of the message their company is putting out to a model where these same folks are instead the catalyst for the ensuring the brand message is delivered well– whether by them, by other employees, or by brand evangelists.

This communicator has the right idea. Conduct a symphony of communications rather than trying to play every instrument yourself.

Control to catalyst.

It’s happening whether we like it or not. So it is a good time to heed my friend Tom Rabon‘s advice: “the train can’t run you over if you’re on it.”

How do you get on board? I keep coming back to the fabulous report by the Arthur W. Page Society, The Authentic Enterprise, which lays out this change in great detail. If you are in the communications field and haven’t read it, please do. It’ll help.

As formal communications channels like advertising and press releases become less relevant and things like social media and reputational capital become more relevant, marketing folks are simply going to have to make changes to where they put their money and effort if they want to continue to be successful.

A new study out today from The CMO Club and Hill & Knowlton (and reported on CMO.com) suggests Chief Marketing Officers are still running behind in moving their marketing dollars from the old model to the new one. According to the study, 84% of these folks spend less than 10% of their budgets on social media and non-traditional communications channels, and over 1/2 of them spend 5% or less.

That means they are still spending a lot of money on the old tools of the trade.

A quote from the CMO.com story:

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