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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Norfolk Broads Brand Guru Dilutes Marketing Credibility?

One of the intellectual games that marketeers love to play is the ‘Brand Management’ game. Like most conceptual ideas, games like this manifest themselves in two broad (sic) forms. One form is based on a deep grasp of purpose and intention and the second is based on flimsy ‘word smithery’

The BBC report today that “Brand Strategy Guru” Simon Middleton has…now wait for it…a new logo and a new “toolkit” of images and slogans to transform the perception of the Norfolk Broads. This will be done by describing the Norfolk Broads as – “‘Britain’s Magical Waterland”. No wonder the role of Marketing gets such a bad press such as Nigel Richardson’s Telegraph article. Perhaps there are some branded golf balls and pens available too?

Pick up any decent book or article about the notion of branding and it defines it as a complex notion that communicates a promise a value. Something that taps into the values and aspirations of customers, clients and consumers. Something that represents meaningful benefit.

How on earth does the notion of ‘magical waterland’ do any of these things? Why the abstraction? Why not convey precisely what the Norfolk Broads do for people? I totally agree with the feelings of local residents that the whole idea is ridiculous and arrogant.

So what do the Broads ‘do’ for people – help them relax? get away from it all? explore culture, history and heritage? what are the signs and symbols – the waterways, the wildlife, how do the Broads make them look and feel? healthy, happy, great parents? Whatever the answers I don’t know for sure, but somewhere in there will something better and more meaningful than ‘Magical Waterland’

off the top of my head…

The Norfolk Broads:

Places Peace and Pleasure.
Timeless beauty. Time for you.
At your pace.
Space to breathe. Time to think.

…and not a magician in sight

What would you suggest?

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