Realistic Brand Management Advice

I’m still reading Michel de Montaigne and if he was good enough for Shakespeare he’s good enough for me.

This time the following quote in an essay that discusses how we should be educated got me thinking about Branding:

“Such as have lean and spare bodies stuff themselves out with clothes; so they who are defective in matter endevour to make amends with words

One of the key principles of marketing is distinguishing between what something ‘is’ and what is ‘does’, in other words the benefit rather than the feature, a concern with the solution to the problem. I certainly go along with that.

A classic example of this way of thinking was the radio interview with the executive from Louis Vuitton who was asked how long he had been in the hand bag business.  Dismayed he retorted, “the handbag business? we’re not in the handbag business…we’re in the business of selling dreams!”

Now I’m all for the idea of conveying an idea, and sure Brands make use of associative thinking to give meaning. I’m a Realist too (see Andrew Sayer for more details) and that’s why Michel de Montaigne’s observation captured my attention.

If Branding experts think that their role is changing reality by merely changing meaning through words then the organisations they work for are in deep trouble. As Andrew Collier (Critical Realist) said, we might as well solve the unemployment problem by re-describing people as employed!.

My suggestion would be that Branding experts should concentrate on expressing the true Value Proposition (See Ballantyne, Vargo & Lush et al)  of the product or service, and yes that might be something intangible as ‘happiness’, but mucking about by being manipulatively smart with meaning insults the customer and totally misses the point of the purpose of a Brand.

The Brand should reflect what the product actually does for the customer not be an exercise where organisation executives “stuff themselves out with clothes”. If products and services do not satisfy the needs of customers and deliver the real benefits they seek then Brand Managers should be tackling that issue rather than pretending that something is what it is not through the invention of spurious meanings.

 

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Customer Complaints At The Speed Of Light

Word of Mouth no longer travels at the speed of sound. It travels at the speed of light. There is a lot of talk across the internet and in marketing meetings that focuses on the question ‘what can social media do for me’? Track any marketing blog and it will often contain lists of helpful suggestions about how your organisation can leverage (did I really use that word!) social media to benefit your business.

Country music singer Dave Carroll reminds marketing executives used to focusing on pushing what they want to say onto customers that another key social media question they need to ask themselves is ‘what can social do to me’?

There is often more than one version of the truth when it comes to a Brand. There is often a difference between what what the brand owner would like you believe about the brand and the reality of the experience. There is often a story of bad service experience waiting to be spread around the globe at the speed of light. It seems that bad service experiences aren’t called ‘moments of truth’ for nothing.

As Tim Weber BBC Business Correspondent points out:

“These days one witty Tweet, one clever blog post, one devastating video – forwarded to hundreds of friends at the click of a mouse – can snowball and kill a product or damage a company’s share price.”

Businesses need to be mindful that a powerful combination of sociological and technological change is occurring. The norm for customers and consumers is going to be complete and comfortable familiarity with social media, high quality video production tools, use of sophisticated instant communications applications and an increasing sense of realisation that they can and will have an effect. The fundamental difference is that these are personal skills, not team, departmental or organisational skills, not skills that only geeks and the I.T. department have. These are skills that customers of future are learning at elementary school, skills that will be learned long before they attend a high school or graduate business studies course.

Taylor Guitars certainly ‘get it’.

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Event Management: The Essentials

One of the most high profile aspects of an enterprise’s customer facing activity is Event Management. I remember going to the Paris Air Show once and being amazed at the scale and size of the exhibition stands, some of which included a full sized Patriot Missile system! Get an event right and it makes a huge contribution to the reputation of the organisation and it serves as a platform for making and reinforcing relationships. Given the importance of Events it is often surprising how the responsibility for their management is delegated (dropped on?) members of staff who have limited experience and expertise in really leveraging the event opportunity.

Philip Crowther and John Perry colleagues of mine at Sheffield Business School have developed a short two day course on Event Management Essentials. Whilst events, as we all know, might be a fun day away from the office, they have a serious and important role in the overall competitive strategy of any enterprise. They cost alot of time and money and a return on that investment is required. For some that might mean quick win sales, for many the returns are likely to be less to instantaneous and perhaps more qualitative. Either way understanding more about how to make your event more effective has to be a good thing, doesn’t it?

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Is A Brand Sorcerer Driving Your Business?

The CEO of any enterprise will no doubt ask themselves the question “who am I delegating responsibility for my organisation’s marketing to?” Like kings and leaders through the ages they are sometimes drawn to mystics who profess powers of understanding and influence. There is a type of marketing professional that might be described as The Sorcerer’s Saussurer’s Apprentice.

Their platform of managerial knowledge and experience is the study of signs and their meaning.  Semiotics.  This field of knowledge is interested in ‘The Sign’ and ‘The Signifier’.  The Symbol and its Meaning.  It is grounded in philosophy’s Linguistic Turn, and the evolution of post modern thinking about the nature of world and how we understand it. Rich territory for a Brand expert. After all that’s what Brand means isn’t it? A sign.

Knowledge from the arcane world of Semiology underpins communications studies and in its turn (sic) this knowledge underpins marketing communications management.  For people unfamiliar in its workings, semiotics is a beguiling subject that offers an explanation of how and why people respond to communciation. It is a short step from explanation to normative prescription.  From this is what seems to be happening to this it what you should do.

The Saussurer’s Apprentice knowing there is a difference between Brand Sign and Brand Meaning offers the magic of being able to change the meaning of any sign.  S/he will Re-present re-position the image and language associated with your brand. With special incantations (more commonly known as straplines) and mystical symbology (more commonly known as a brand identity) the Saussuer’s Apprentice will give reassurance where there is fear and uncertainty and after all we all know that fear sells.

I fear my competitors. I fear my loss of revenue. I fear my inability to compete.  Miller Heimann call this ‘being in trouble’, and being in trouble is a mind set that is open to a sales pitch. The charlatan smells trouble. S/he recognises and seeks out the ignorance of others because s/he can be sure that there will be no critical thinking and probing of  ideas.  S/he is skilled at seeking out the fears of the powerful because they need new ways to control an uncertain destiny.

“Once upon a time in the Land of  Aitchtoo-Oh the ruler was becoming worried, he wanted an heir to the throne but no one wanted to marry his daughter the princess. She was known throughout the world as the Ugly Princess.  In the eyes of the King his daughter was a symbol of  beauty, the prettiest and most attractive person in the world. This is not what his subjects thought,  and there wasn’t a Prince in the world who could bring themselves to ask the King for her hand in marriage. An uncomfortable reality was beginning to dawn on the king. His daughter was nothing like the beauty he believed her to be.

One day the King heard of a Sorcerer who was travelling the land. He came to to King and told him that he was wise in the ways of the mind and that he had a magic spell that would make his daughter irresistable to anyone who saw her.  “I will pay you handsomly” said the King. The Sorcerer cast his spell. The Kings daughter became known as the Princess of Magical Dihydrogen Monoxide Land. “We need to get rid of any association with Aitchtoo-Oh” he explained. “A fresh start requries a fresh name, something that conjures up mystery, a sense of the unknown. A new name a new beginning.” The sign had been re-signified. Anyone who saw her would fall instantly in love with her beauty and charm. The problem was solved. A Prince from the faraway kingdom of Adland married her and they were all about to live happily ever after (as people always do in Adland) when the spell wore off. The Prince saw that he had married the ugliest princess in the world and was very upset.  The Sorcerer hadn’t told the King the spell wouldn’t last. Furious at being made to look a fool the king sent his soldiers looking for the Sorcerer and they never found him. He had simply disappeared in a puff of hot air.”

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Gulf of Mexico – America’s Magical Waterland

The brand challenge facing BP runs deeper than any logo and strapline.  These examples come from a post titled Rebranding the BP logo.

As subversive rebrands they reflect the perceptions of some important stakeholders. No matter how BP would like their brand to be thought of their brand meaning is owned and controlled by others.  These logos shed light on how brands are really built. They are built on performance and experience.  Yes they are creative, they are eye catching and salient and they are grounded in a reality. Until the tragedy of the Gulf of Mexico oil spill BP could make the case that it acted in accordance with the green sunflower eco-friendly promise, and the power of its public relations machine could successfully rebut any counter claims. However no PR department packed to the roof with gurus could  put a positive spin on destroyed livlihoods, managerial gaffes, and ruined eco systems.

How will  BP overcome their brand challenges? How will they ‘reposition’ their brand. Reiss and Trout called this task the ‘battle for your mind’.  How will they persuade the people of Louisiana and Florida to think differently of them? Will the board of BP decide to invest in a new logo and strapline? If you were running BP what would you decide to do?

Positioning and its marketing cousin re-positioning are pieces of marketing jargon.  Part of a lexicon that often generates more heat than light.  Words used to impress.  The words frequently imply a capability to change people’s minds. What is rarely mentioned or explained is that like many marketing concepts positioning and re-positioning have two connotations.  One implies an almost mystical and hypnotic  capability to transform how people think. Imagine if it could do that! (wink)  The other is a strategic management task that makes real changes to products and services; the essence of the value proposition.  When brands are truly ‘re-positioned’ they are tangibly moved away from one status towards  another through direct action on product and service attributes (qualities).

BP is re-branding through decisive management actions. Senior management changes, effective capping of the leak, financial compensation, and changing its working practices. It is on a journey of moving its brand away from the current negative perception that many people have as Black Pest towards something in time more positive. Something actions can do and Sophistry can’t. Unless of course you take sophistry to mean genuine,  profound and educated managerial insight.

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Marketing Speak Hijacks Business Minds

A bad habit of marketing ‘experts’ (and for that matter any other experts) is the over use of jargon. Specialised language is used to indicate that you ‘belong to the club’, to simplify conversations between experts, to shut out people who don’t belong to the club, and to pull the wool over the eyes of the less well informed.

An old idea that has been around for nearly 15 years (probably originally attributed to Tom Peters) is Personal Branding. In plain English this has been known for centuries as Reputation. We don’t need an expert to tell us that personal reputations matter. We don’t need an expert to tell us that we are responible for putting across our worth and value. Robert Louis Stevenson was saying this way back in the 19th century when he said “everyone lives by selling something”. Personal branding is nothing new and it is not complex.

Let’s get the toes curling. Paul Johnston – ‘transforming open minds for a competitive future’, Paul Johnston – ‘enthusaneer’, Paul Johnston – ‘defender of marketing innocents’. It is of course true that people and their names come to symbolise what they stand for. This is also known as celebrity. Mention a name, see a photograph and as Bob Cialdini says, ‘click whirr’ we make the association. Brand Management is in the business of pushing into the foreground the associations we want people to believe. The positives. In social influence terms it is a form of ‘landscaping’. Personal Branding is a compelling idea because of what it promises. However just ask Tiger Woods about the consequences of the difference between rhetoric and reality.

A curious habit we have is the way we ‘make sense’ of things through conceptual lenses. Jostein Gaarder in his wonderful book Sophie’s World explains it this way. The character Alberto Knox is talking to Sophie.

“Could you bring me those glasses from the table over there? Thank you. Now put them on”. Sophie put the glasses on. Everything around her became red. The pale colors became pink and the dark colors became crimson. “What did you see?” – “I see exactly the same as before, except that its all red” – ” That’s because the glasses limit the way you percieve reality. Everything you see is part of the world around you, but how you see it is determined by the glasses you are wearing”

The type of glasses we wear determines the way we deal with problems and solutions. I was recently told a story by John Kawalek of Sheffield University about someone he met who was utterly convinced that solutions to his company’s problems was ‘TQM’. Probing further John discovered that the person had recently joined the company a few weeks previously after being TQM champion for several years in his last post. Every problem was a TQM problem with a TQM solution.

You may have come across people who have been on management training courses and who have been introduced to Myers Briggs personality typoligies. All of a sudden, that’s how the world works. A new set of glasses and everyone is explained by four letters!

Problem. Credit Crunch, redundancy, fear of losing home, wife and kids. Solution….now let me see, which glasses should I wear? Is it a TQM problem? Maybe I need to sell my ESTJ-ness? I know, pass me my Marketing Glasses. The new, breakthrough, indispensbile glasses for guaranteed results. Hand me my Branding Glasses. I need a clear identity, I need to capture my brand personality, to create my image and develop the ability to convey my unique value differentials in an emotionally powerful way that taps into the hearts and minds of my audience.

For more CV power words I recommend Kevin Hogan, The Psychology of Persuasion and Covert Hypnosis. The real question of course is how has this post affected my personal brand I wonder?

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Of Course My Spend On Marketing Is A Good Idea

Human beings are rationalising not rational animals. Rationalising our decisions is very important to us. We do it to justify to ourselves that have done the right thing and to convince others of the ‘logic’ of our choice. There is no necessary correlation between reality and the rationalisation. Unless of course you agree that reality is entirely constructed in the mind. Some of the most adept rationalisers are  marketing executives.

In the film The Big Chill Jeff Goldblum played a character called Michael Gold who made an observation about rationalising behaviour.

Michael: rationalisations are more important than sex

Sam: Nothing’s more important than sex!

Michael: Oh yeah, have you ever gone a week without a rationalization?

Let’s imagine for minute that we have spent a large sum of money on a marketing communications and re-branding  project that we sincerely believe in, which attracts criticism and ridicule from some people. These two competing cognitions (I think its a great idea vs. other people don’t) create what Leon Festinger described as Cognitive Dissonance.

He articulated his ground breaking theory in his 1956 book When Prophecy Fails. In a nutshell the argument runs that if a person has made a serious commitment to a belief or  course of action that is difficult to undo, the moment they are confronted with (and accept as a reality) new  disconfirming evidence it causes great personal psychological anxiety. The individual then strives to re-establish psychological balance.

People do this by gathering around them social support (people who don’t, won’t or can’t disagree with them out of ignorance or fear) Irving Janis called this ‘group think’, and they  proselytize. They attempt to persuade people of their rectitude, and the reasons they have spent the money.

One of the unfortunate criticisms of everyday marketing communications is that it is very good at spending money and less good at generating it. The mud that is thrown regretably sticks to the strategic task and role of marketing in general. Marketing communications executives have had a long time to become skilled at rationalising the sunk costs of campaigns.

Common rationalisations for sunk costs in expensive re-branding projects include:

Somebody had to do something rather than just sitting on their hands

It must be good because look what we paid for it

People have worked very hard on this so far

Just look at all the things we got for the money

Sunk Costs interfere with rational behaviour. The behavioral economics literature offers some helpful insights here.  Cognitive Dissonance kicks in and…

The price becomes the indicator of the value, when the price paid should be irrelevant.

The chance of a good return on investment is poorly judged due to over optimistic probability of success bias.

I’m responsible for this campaign, it was my decison to spend the money so we should press on regardless of consequences

Of course I’d have to say that my decision to spend money on this new re-brand campaign was a good idea. Though As Mandy Rice Davies said

“Well, he would, wouldn’t he?”

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The Challenge Of Creating Compelling and Competitive Value Propositions

What comes first the chicken or the egg? What comes first the communications campaign or designing and delivering an appealling value offer that matches or exceeds the expectations of customers not what we ‘think’ they want.

A Marketing Communications strategy is not a Marketing Strategy. Crafting a Competitive Strategy a.k.a Marketing Strategy is fundamental to the success of any enterprise. It is, at its heart a strategic management process concerned with creating and delivering products and services that people want to use and buy.

As we know there are various levels of understanding about what the term ‘marketing’  means. A significant number of people exclusively and erroneously equate ‘marketing’ with advertising and promotions. A significant number of people understand otherwise. It’s purpose is to deliver competitive advantage.

There are various posts and comments on this blog which give a flavour of the ways in which the term ‘marketing’ is understood and how it should be deployed. Alexander Repiev (on this blog) uses the metaphor of the Augean Stables to discuss the amount of ‘marketing manure’ that has built over the years in the marketing profession. Regretably even some seasoned marketeers sincerely believe that the role of marketing is primarily one of marketing communications and thereby reinforce the misconception. This is sometimes given extra gravitas and importance by describing it as Branding. Jean Noel Kapferer amongst others explain Strategic Brand Management otherwise. Much to the chagrin of many marketing professionals they are sometimes ‘cast’ in that role by people who think the marketing job is to merely sell what the enterprise has on its shelves, or hopefully transform worn out products with a new wrapper.  This is invariably a forlorn hope. President Obama described activity such as this in more candid terms recently.

One of the snake pits of the ‘marketing is communications’ approach is that it invariably puts the cart before the horse. It predisposes management to hyperbole and self agrandisement. It fools people into believing that if you say it loud and often enough it is the truth.  Experience has taught many businesses the hard way that if you approach competitive strategy from that perspective its has its costs. A more effective approach in this sequence.  (see Kotler et al):

1. Define the value based on deep customer insight to create key benefit segments. Not all customers are alike. Don’t rely on guess work, high hopes, conventional wisdom, personal assumption or preference. What if Bill Oddie look alikes  and wellingtons symbolise a  significant high value customer segment? Do you disparage them because they don’t fit with a personal idea of the ‘ideal customer’?  Clearly and objectively gather evidence to answer the questions ‘why should anyone  buy from us?’, ‘what benefits do they tell us they are seeking?’, ‘what differences make a difference to our target customers?’

2. Produce and deliver the value. Not all customers are alike. Do the good stuff that transforms customer experience of products and services. Segment the offers. Provide the value that people seek not what you think the value should be.  Create a solid evidence based platform from which to shout from.

3. Finally communicate the value. Not all customers are alike. Talk about proven benefits in terms that are meaningful to the customer not in language that we ‘think’ is meaningful or could be meaningful if only the right meaning is used. The meaning of communication is the way it is received. Different segments want to hear different things said in different ways about the benefits they seek.

Communications preferences in a commercial context should never be judged by whether someone likes or dislikes them on entirely subjective grounds. Talking about strapline preferences ‘as if’ they are merely the stuff of subjective opinion tivialises their true purpose. It’s not about whether somebody ‘likes’ or ‘dislikes’ a strapline its about whether the strapline is effective in purpose.   Marketing Communications has a purpose. It also goes much further than ‘salience’ or capturing peoples attention through shock or controversy.  I prefer to judge a communciations campaign on the commercial effectiveness of its  social influence.

Marketing Communciations is what it ‘is’ and Social Influence is what it ‘does’.  Any communcications endevour can therefore be measured in terms of how effectively it changes attitudes and consequently behaviours. There is however no guarantee that a change of attitude will translate into a change of behaviour (see criticisms of the Hovland Yale model and AIDA).   It can’t ever be described as money well spent simply because the advertising ‘stands out’, or the thing advertised has become more ‘top of the mind’, it can’t ever be decribed as good value for money just because people have worked hard on it and created alot of ‘stuff’ that people can use.  However commendable the effort, this misses the point.

It should also be remembered that changing a behaviour can change an attitude without the expense of marketing communications collateral. A positive experience is often more powerful than any ‘top down’ marketing communications claims.

If you communicate what you believe to be the value before you’ve provided it, you preach before you practice, you have no evidence that you have matched customer expectations. It is nothing more than a well intentioned aspiration. Actions speak louder than words.

There is a crucial philosophical and theoretical point here and as Kurt Lewin said “there’s nothing so practical as a good theory”. Our theoretical understanding of marketing determines how we do it in practice.

So let’s imagine we are deeply involved and experienced in a particular business sector. This business is facing some competitive challenges. We know that our competition has increased over the years  and there are more appealling choices for our once loyal customers. We also know that the experience we have delivered has been below par in some instances. We also know we have good things to sell too and we can’t rely on other people to do this for us. We know that if we stand idly by then our business is likely to dissapear. What do we do about that?

A good place to start is point 1 above. It seems self evident that we should provide ‘quality’ but and here’s the rub… What does ‘quality’ really mean? Whose ‘quality’ are we talking about? We can only establish the ‘quality’ that should be delivered by understanding the needs and expectations of the diversity of customer segments. What does ‘quality’ mean to them? What are the critical choice factors that customers, present, lapsed and new say they want. Do we have evidence directly from them.  Is there any correlation between what we think is of value and what they think is of value? Getting this right is marketing.

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A Non Expert Comments On Brand Management

I am not an expert. As Erich Fromm the renowned critical theorist said in his book To Have or To Be “beware of people who claim to have the answers”. Thousands of years ago Socrates is reputed to have said “I know nothing except the fact of my ignorance.” One thing I do know is that observations such as these help to guard against being locked in Psychic Prisons (Burrell, Morgan) and encourage self reflection on the prior assumptions on which our beliefs and actions stand.

There are three things that I believe about Brands and Brand Management:

1. The purpose of Brand Management is to contribute to the creation of compelling and sustained value propositions. I say ‘contribute’ because it is a ‘systemic’ contribution that includes other organisational capabilities such as the ability to sense opportunities, devise revenue models, and deliver the value offer that customers that people are willing to pay for. (David Teece)

2. We are rationalising not rational animals. A Brand makes an emotional connection with the people. These emotional perceptions might be positive or negative. (Burberry? Toyota? Macdonalds? The NHS? David Beckham? Skegness?)

3. Brand Management is not a marketing communications exercise wherbye organisations ‘tell’ customers what the brand stands for. Gone are the days when , it has never been the case that organisations define their brand meaning. Organisations do not ‘give’ a brand to the market, the market gives the organisation its brand. Whilst initial perceptions can be modified through rhetorical devices and social influence, ultimately Brand meaning is ‘owned’ by the people who don’t use, intend to use, and use the brand. Brand meaning is defined post-hoc. It is created after an experience.

The ability to transform  brand perception is achieved through re-vitalising customer experience not through a new letterhead, logos and straplines. This is not to argue against the power of perception and that perceptions cannot be accessed through techniques such as Zaltman Metaphor Elicitation or Ad Liking. Such methods provide some insight. A starting point. They are also fraught with interpretive dangers.

Find out that a key segment of your vistors are young and come from the UK. Run a campaign that asks ‘Where The Bloody Hell Are You’ and end up offending the Prime Minister of Australia, a significant number of locals who don’t ascribe to the sentiment and where most of the audience you are targetting would reply… Brisbane. Get the essence right and you achieve what Tim Rice has done with his colleagues in Glasgow.See Glasgow

Much of the branding mantra is built upon the notion of ‘dream making’. Setting aspirations. ‘We don’t sell handbags we sell a dream’, a Gorilla playing drums symbolises pure unbridled joy that you will associate with…(so it works!) Although imagine if the product didn’t taste very nice or made you poorly.

The foundations of this approach rest on two assumptions. Firstly, the classic marketing argument that people buy what something ‘does’ not what it ‘is’. Solutions not products. Therefore if that vaccuum cleaner makes you feel cleaner and modern it transcends (yet still includes- Wilber) the need to suck up dirt. Secondly, aspirational differences have to be created when there is no discernable difference in what a product, service or place really does!

To create a difference where there is no difference we have to play mind games. To chunk up from the ‘thing’ to the ‘dream’. From the loo roll to happiness, from the deodorent to sex appeal, from rural landscape to magical kingdom. The challenge with these higher aspirations is that they are by any other term also expectations. They are promises and as J.N.Kapferer states “A brand is a promise of value”.When promises are broken people remember and don’t come back.

And that reminds me of story orginally told by Henry of Huntingdon in the 12th century who lived close to the Fenlands of the Norfolk Broads. The tale is about King Canute (Knut) the 11th century King of England who put his throne by the sea. As we know he commanded the tide to stop but the tide failed to do so. No matter how strong his self belief in his power, capability, and infallibility, no matter what he believed was possible, no matter what he said ‘ought’ to happen, the reality of the matter was another thing. He ensured his entourage were ‘on message’ and they stood right behind him. Nevertheless he could do nothing to stop the tide coming in.

The difference of course for any destination is that they can do something. It’s the experience that counts.

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Some Interesting Marketing Guru Observations

“Branding is a topic that can turn a room full of marketers into a herd of experts…owning a brand is like having an orgasmatron, that machine in the film Barbarella” cited in Marketing Payback – Prof Robert Shaw and David Merrick

“I’m not saying customer awareness and brand equity are not important metrics…so before I hand someone £10 million to spend on advertising, I want to see fact-based analysis demonstrating the economic benefits”
Sir Roy Gardner CEO Centrica and non executive
Chairman of Manchester United 2004

“Most firms…prefer to fumble around in the dark. It’s easy to see why: fumbling has a lot going for it. More adventure, creativity, more
surprises and more fantasies. But you may not like what you see when the lights go on”

Tim Ambler 2003 – Marketing and The Bottom Line 2nd ed.

“Do you want fine writing? Do you want masterpieces?
or do you want to see the god dammed sales curve start
moving up?”

Rosser Reeves cited in Ogilvy on Advertising

Deacon: “Dry land is not just our destination, it is our destiny!” Dennis Hopper Waterworld – 1995

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