15 Bad Habits that Inhibit Brand Building

Managing A Global Brand

Building a global brand today is different than it was only a few years ago. Globalization, localization and personalization are forces that impact how to best manage a global brand. In Larry Light and Joan Kiddon’s new book, New Brand Leadership: Managing at the Intersection of Globalization, Localization and Personalization, the authors share their over 50 years of experience in building the world’s largest brands. From forming a brand vision to measuring its performance, they share a framework for developing and executing a global brand strategy.

Recently, I had the opportunity to talk with Larry Light about his new work. Larry is the CEO of Arcature LLC. He was a senior executive and board member at BBDO and President of the international division of Ted Bates. He was Global CMO of McDonald’s from 2002 to 2005. More recently, Light was the Global Chief Brands Officer of IHG.

 

“Low price and best value are not synonymous.”

 

Bad Habits That Inhibit Brand Building

Would you share the bad habits that inhibit brand building? I found myself nodding and think readers would find these compelling.New Brand Leadership

We identified 15 bad habits that impede organizations from building brands, regardless of industry, category, and geography. These habits are not stand-alone forces: there are two underlying connections among these, and these are enterprise culture and leadership. First, culture matters. When there is a conflict between culture and strategy, culture wins. Culture fights change. Culture fights for the status quo. Culture nurtures complacency. Second, brand leadership is different from brand management. Brand management is taught in business schools. Effective brand leadership is different. Brand management is about the execution of specific brand-building actions. Brand leadership is different. It is about getting the right results through the efforts of others. It is about educating, inspiring, influencing and evaluating. Effective leaders create results by getting others to do the right things to produce the right results. Effective brand leadership is top down. For example, none of the work we did at McDonald’s could have happened without the leadership of Jim Cantalupo and Charlie Bell. Nissan needed Carlos Ghosn. IBM needed Lou Gerstner. Popeye’s needs Cheryl Bachelder.

 

“Brand leadership is different from brand management.” -Larry Light

 

15 Bad Branding Habits

  1. Complacency
  2. Change for the Sake of Change
  3. Financial Engineering as a Growth Strategy
  4. Cost-Managing the Way to Profitable Growth
  5. Focusing on Customers You Do Not Have at the Expense of Customers You Do Have
  6. Failing to Keep the Brand Relevant
  7. Price Segmentation Instead of Market Segmentation
  8. Thinking the Lowest Price Is the Same as the Best Value
  9. Failing to Instill a Quality Mind-Set
  10. Silo Mentality
  11. Focusing on the Short-Term Rather Than Creating a Short-Term/Long-Term Strategy
  12. Not Sharing Across Functions, Geographies, and Brands
  13. Believing the Regions Are Not as Sophisticated as the Center
  14. Believing That Brand Management Is All About Marketing Communication
  15. Allowing Data to Decide

 

The Most Insidious Bad Brand Building Habit

What’s the most common bad habit you have witnessed?

One that is becoming increasingly visible and insidious is the desire to satisfy the demands of Wall Street over satisfying the demands of customers. Ultimately, the sustainable source of cash flow comes from customers exchanging money for your offer. Financial engineering is not the basis for enduring profitable growth. Managing money is not the same as managing brands. Stock buybacks and increased dividends indicate that a company believes that investing in product and service development, innovations and brand-building will not yield satisfactory returns to shareholders. So, they just give cash back to shareholders and let them decide where to invest.

 

“To grow trust, we need to grow quality.”

 

The Evolution of Global Marketing

Create Your Brand Story

This is a guest post by Robert Murray, author, speaker, executive, chairman, advisor, and associate professor. Robert’s latest book is Unlocked: Finding the Key to Practical Leadership.

Connecting At A Deeper Level

The first step to strategizing what kind of team you want to lead is deciding what kind of story you want for your organization.  What stories will your customers tell their friends and family?  What stories will your employees tell their friends and family?  Your business’s success and profitability depend on the stories that get told.  Take the time to develop a story that captivates and engages.

Here’s an example.  I have spoken many times around the world about a disastrous experience I had on Lufthansa Airlines over ten years ago. There is even a video of me available on the Internet telling the story. Personally, Lufthansa has lost over $350,000 in business that they could have potentially got from my international travels because of this experience.

Conversely, British Airways is one of my all-time favorite airlines because of the emotional connection I have with them. Why? What is the STORY that makes me go out of my way to do business with them?

 

“Your story must encompass your values.” –Robert Murray

 

Create a WOW Story

It was New Years 2010, my daughter, then 19 years old, flew back to Europe to see her school friends and celebrate New Years with them. She had a lot of fun – apparently too much fun because when she was returning home, she had to transfer to the last leg of her trip at Heathrow Airport. While she was waiting for her next flight, she fell asleep in a chair at the gate and missed repeated PA announcements calling her to board her flight.

Twitter is Not a Strategy

Techniques from an Expert Marketer

If you are marketing a company, a product, an idea, or even your personal brand, you may feel the pull between the new-media world and the traditional marketing methods you studied in school. When new technologies emerge, it often seems like everything is changing. Whether digital, mobile, or social, we are looking for new ways to connect with our audience.

What if these new ways actually prevented a brand from reaching its potential?

How do you get people to stick around?

How do you engage people in a substantive way, winning them over? 

 

“Timeless can be new.” -Tom Doctoroff

 

Tom Doctoroff has more than 20 years of experience shaping hundreds of global brands ranging from Microsoft to Ford to Nestle.  He’s appeared regularly on NBC, CBS, CNBC and other major media outlets. Tom’s new book Twitter is Not a Strategy: Rediscovering the Art of Brand Marketing is all about engagement. Its wisdom spans the two worlds, combining digital and traditional marketing to win and engage consumers.

 

The Marketing Identity Crisis

Tom, you’re the CEO of J. Walter Thompson in AsiaPacific and for decades have shaped some of the world’s biggest brands. Your new book title, Twitter is Not a Strategy, seems to imply some level of frustration.  Did you write this book with some level of frustration?

I wouldn’t call it frustration exactly.  But, yes, I do think the communications industry is going through something of an identity crisis.  The fundamentals of advertising and branding are too often forsaken as marketers seek technological and algorithmic salvation. The rise of digital has led to marketer anxiety, consumer confusion and too many transactional brands.  But old and new, traditional and digital, broadcast and “lean in” media are complementary.

 

“Each creative expression of the brand idea should be conceived with a specific behavioral objective in mind.” -Tom Doctoroff

 

Twitter is Not a Strategy is not meant to be a breakthrough book.  Indeed it might even be “anti-breakthrough.”  It is a call for the entire industry to stand up and reclaim the conceptual high ground of marketing communications.  Carefully crafted strategies and executions—adherence to the ABCs of brand building—will remain our lighthouse.  As brand pioneers, we must explore the shoals of a new digital landscape.  But let’s not become stranded by anxiety and indecision. Timeless can be new.

 

Traditional versus New Marketing Tension

Your book explains the traditional top down branding approach (message clarity) with a bottom up (consumer empowerment) approach. How do these two approaches need to work together?Twitter is Not a Strategy

To avoid confusing consumers, engagement needs to be both authentic and constructed. Marketers must forge a paradigm that allows freedom within a framework, pulling off the trick of simultaneously permitting consumers to participate with brands while empowering marketers to manage the message and dialog.  Marketers must achieve:  harmony between the clarity of top-down positioning and the dynamism of bottom-up consumer engagement; between long-term brand equity and short-term tactical messaging; and between emotional relevance and results driven by data-driven technology.

Different kinds of media reach us for complementary purposes.  Analog (traditional) media shape our brand preference while most digital media deepens our engagement and leads to brand loyalty.

The former boast broad reach.  They forge perceptions across consumer masses. Film—with its sound, color, movement, and ability to break through clutter—is an indispensable tool to guide consumers amid an explosion of offerings. Even in the United States, despite the proliferation of smartphones and other digital devices, the 30-second broadcast television commercial continues to rule (and increase). Manufacturers spent some $67 billion on network and cable advertising in 2013 – and not for sentimental reasons.

The latter encourage engagement with brands. With more opportunity to trigger behavioral changes – learning more, using more, buying more, advocating more – marketers can increase the probability of purchase and repeat purchase.

 

Traditional media shape brand preference. Digital leads to loyalty.

 

As consumers move toward purchase, direct and digital media should dominate. These media provide more opportunity for engagement—that is, direct interaction with a brand idea and its creative expression. Marketers have more opportunity to trigger behavioral change and increase the probability the consumer will buy a product.

Advertising can encourage a limitless range of actions—from clicking through a banner ad and spending more time on a microsite to increasing consumers’ frequency of washing their hair. The arsenal of tools marketers can deploy to encourage certain behavior is broad. Marketers also can use analog media to trigger specific behavior during later phases—for example, by using stunning “product beauty shots” and other point-of-sale material to stimulate trial usage.

 

Start with the Brand Idea

How to Create Brand Names That Stick

A Great Name is a Must

Whether you are launching a new company, a new product, or refreshing a brand, you need to have a great name.  Some companies have a name that just fits while others see massive marketing campaigns fail because of a poor name.  Still others have names that are limiting future growth.  For instance, Tony Hsieh, CEO of Zappos.com says that Zappos.com started out as ShoeSite.com.

Alexandra Watkins is a nationally recognized naming expert and founder of Eat My Words. She’s been featured in The Wall Street Journal, Inc. and Entreprenuer.  Her clients range from Disney to Fujitsu.  She recently wrote the small, but powerful book Hello, My Name Is Awesome: How to Create Brand Names That Stick.

 

“Your brand name makes a critical first impression. Even more than your shoes.” Alexandra Watkins

 

 

For those not in the field of marketing and branding, why is picking the right brand name so critically important? 

Your name will last longer than any investment you make in your business.  Think about that for a minute…will you have the same tablet, mobile phone, printer, and office furniture twenty years from now?  Not likely.  But you will have the same brand name.  That’s why it’s important for you spend the time to get it right.

 

Qualities of a Perfect Brand Name

What are the qualities of a perfect name? How do you know you’ve landed on the right choice?

A helpful and purely objective checklist for the qualities of a perfect name is my SMILE & SCRATCH Test, a 12-step name evaluation method based on my philosophy, “A name should make you smile, instead of scratch your head.” If your name passes the test (and clears trademarking and international linguistic checks), you can be assured you have a winner.

Screen Shot 2014-09-30 at 5.45.14 PM

 

SMILE: The 5 Qualities of a Super Sticky Name – the perfect name has all of these characteristics:

Suggestive – evokes something about your brand

Meaningful – resonates with your audience

Imagery – is visually evocative to aid in memory

Legs – lends itself to a theme for extended mileage

Emotional – moves people

Promote Yourself: The New Rules for Career Success

The New Rules

You’ve heard the advice, but maybe you are uncomfortable:

Why standing out is more important than ever

The importance of personal branding

How to get noticed in a crowded world

More than ever, your career opportunities are dependent on your reputation.  The good news is that there are more tools than ever to help you get started.

Dan Schawbel is a columnist at Time and Forbes.  He is the managing partner of Millennial Branding.  If you haven’t read his many articles and blog posts, you may have heard or seen him in the media.  As I was reading his latest book, Promote Yourself: The New Rules for Career Success, I happened to catch an interview with him on National Public Radio.  He is an expert on personal branding and understanding and reaching the Millennial generation.

 

“In today’s knowledge-based economy, what you earn depends on what you learn.” –Bill Clinton

 

Why Personal Branding Is Important

What are the top 5 reasons that personal branding so important?

  1. You will be found in search engines when either a recruiter is looking to hire for a specific position or a prospect is looking to hire a consultant.
  2. You will gain confidence in yourself because you’ll know who you are and how your expertise fits into the business world.
  3. You will be able to communicate who you are and what you do at networking events without being stressed out.
  4. Your personal brand will give your company more credibility and make it easier to promote your company in the media.
  5. Your brand will help you both attract the right opportunities and repel the ones that aren’t a good fit, saving both you and others time in the research process.

 

“Think of your career as a series of experiences.” -Lenny Mendonca

 

“If everyone has to think outside the box, maybe it is the box that needs fixing. Malcolm Gladwell

 

What do you say to critics who say that personal branding is self-centered and egotistical?

I really don’t think it’s possible to build a strong brand without the support of those around you.  I also don’t think that being selfish is necessarily a bad thing, especially in a tough economy like this.  Being selfish, in some regard, is a way of saying “I’m investing in myself so I can become more valuable and in doing so help others.”  As long as your intention is to help others today or in a year, everyone benefits from you being selfish.  Those that have built strong brands have empowered others to build their own and promoted their work.

 

“Become the expert your company can’t live without” is powerful advice. What steps do you recommend to make this a reality?

Promote Yourself CoverIn Promote Yourself I talk about how you need to become an expert in your field.  65% of managers are looking to hire and promote experts, not generalists. You need to align your strengths to areas in your company that need improvement.  Back when I worked at a Fortune 200 company, I was the only social media resource.  If a department wanted to learn social media or use the tools for their own purposes, they almost had to contact me.  This truly makes you valuable to your group and to your company, while at the same time giving you visibility which creates opportunities.

 

65 percent of managers are looking to hire and promote experts, not generalists.

 

Use Social Media as a Career Tool

You talk about the importance of social media. Why is it critical for leaders to understand and leverage social media?

Social media is the fabric of our society at this time.  I started using it in 2006 because I realized that it puts everyone on the same plane, regardless of job title.  Through social media you can easily connect with people in your company, profession or industry, which creates opportunities.  Another aspect of social media is that the customer now has a voice, and people, in general, are moved by experts and influencers.  Leaders need to understand social media because it’s a channel that people will use to follow them if they have something interesting or important to say.

 

“Social media is the fabric of our society at this time.” -Dan Schawbel

 

 

How did you use social media to propel your career?