A Simple Technique For Prioritizing Brand Investments

What instantly comes to your mind when you hear IBM?

If you think “a really big company” you’re not alone. Most people cite IBM's sheer size in brand awareness surveys. Which is why IBM ad campaigns often picture small to midsize businesses. Or a bunch of IBMers sitting around thinking up creative solutions as if they are in the kitchen of a small startup. IBM can’t break it’s image of size, but they can counter the attributes that go with size (slow, and anything but agile) with image campaigns.

IBM is also a big believer in decentralization to fight the trappings of size. And they tend to empower their account teams to make decisions, another technique to make customers feel they aren’t dealing with a company the size of Jupiter with a bureaucracy that outdoes the Federal government.

If you hear Blue Coat Systems, you might think “that small company in the Valley.” Blue Coat has the opposite problem. All of the objections that go with doing business with a small company come to mind when an account team from Blue Coat walks in the door. So it’s no surprise Blue Coat tends to promote its big company successes.

But – when you hear BMW, what comes to mind? You probably don’t think about the size of the company; rather well-engineered automobiles that are fun to drive. When you hear Wal-Mart you might think of them as huge – but that thought probably comes after “cheap stuff.” When people hear General Mills, they think “cereal.” Like BMW and Wal-Mart, General Mills is a product driven brand.

What first response means
That “first response” a customer or prospect has is the essence of brand. Most brand managers are disappointed to learn that the customer’s first response is actually not the image they intended to create. Fret not. That gap tells you exactly exactly where you need to make additional investment.

Product versus experience
Brands such as Nordstrom, Nike and Starbucks sell products, but when customers are surveyed, a feeling comes to mind. That’s because these companies followed the Disneyland model – and they decided to invest in the integration of product and experience, especially Nordstorm who was one of the first companies to take cues from Disneyland marketers. As a result, they have developed a legendary service model that people love to talk about.

Then there’s the opposite situation. When Verizon says they are first in service, yet you can’t get someone on the phone when you call - who they are and how they behave and out of sync. And that bruises the brand.

Try the survey
Ask your customers or friends to give you their first response when you say your company’s name. Make sure you capture the immediate response. You can also capture the second and third response, but it’s that first one that is the most telling.

If your product comes to mind (and it's positive) you should think about investing in promotion that also underscores your services or experience. If the size of your firm (big or small) comes to mind, you’ve definitely got some issues. Dig deeper and see what size means to your customers, then plan appropriately. If your small size is followed by a response that is in the “great service” category, you’re in good shape. But it’s that “service orientation” you probably want to be known for, not your annual revenues.

If what you do comes to mind, that’s not bad. For example, when you hear SAP, you probably think global ERP systems, followed by "expensive" (Note SAP’s new ad campaign, My SAP focuses on small to mid-size companies not looking to spend a fortune on ERP).

SAP marketers, well aware of their image, are taking cues from IBM. Look at UPS ads. They focus on international delivery since their marketers are eager to move their image upstream to counteract images of the “neighborhood delivery truck.” Of course, UPS is lucky. They already have a good brand and a good experience. They are now trying to expand the reach of the brand, without disturbing it’s “down home” feeling.

If your intended image and the image that comes back from the survey are pretty much in the same ballpark, think about what else you can do. BMW does a great job on product and driving experience, but when you do this exercise using “BMW service” the responses are all over the map. That’s where BMW has opportunity.

The second BMW response is typically “high price” which is why BMW is investing in promotion about their “previously owned” financing program – showing how anyone can get into the finest car in the world if they really want to. Having saturated the luxury car buyer they are know looking at alternative growth strategies that focus on the middle income audience.

BMW’s strategy of “trading down” is not without risk since it’s counters it target demographic (namely, rich people). But note BMW marketers lead their promotion with “you don’t have to envy those people anymore.” Hence, they acknowledge their firm market position still aims at wealthy folks.

Of course, you can’t solve brand problems with advertising. It all comes back to the integration of "who you say you are" and "how you behave". When a company's ads show how easy it is to do business with them, yet their return policy is a nightmare, they have yet to operationalize their image.

To summarize:

• The immediate response customers evoke when they hear your name, is the brand essence you should trust – not the one your advertising agency would have you believe.

• Analyzing the gap between first response – and the image you want – reveals image issues (and investment opportunities).

• Advertising and public relations might be a first step, but hardly the last. If you don’t operationalize your image, you actually bruise your brand. As brand managers don’t thing your job ends with image campaigns. Make sure you're in a position to influence operations issues or at least make recommendations that will be heard.
  

• It’s easier to trade down than trade up. BMW is successfully penetrating markets of lower income buyers. But imagine Wal-Mart trading into luxury goods. Doable? Yes. Would it be successful? Probably not.