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AdSpeak #40 – How to get the best work from your ad agency.

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To get the best work from your advertising agency, consider these tips for a productive relationship.

1. Provide clear direction.
Studies show that a high percentage of problem projects start with inadequate briefings. A lack of candor may factor in, too. Are you spending enough time preparing information? Or, do you just wing it and hope they’ll “get it”? Don’t trust this all-important task to an inexperienced junior. You can’t expect a great outcome if you don’t start with thoughtful, well-organized input.

2. Make sure all responsible parties agree on the direction.
All too often, an agency receives direction from one group in the company only to find out later that others (often senior management) have something totally different in mind. Such a scenario not only wastes your valuable time and money, it dampens the spirits of those who’ve labored under misguided direction.

3. Talk openly and candidly about any concerns you may have.
Don’t sidestep confrontations just to avoid hurt feelings. Offer constructive criticism and give agency personnel adequate time to respond with a solution. Resolving differences with your current agency almost always delivers a better ROI than starting from scratch with a new one.

4. If you want a commitment from your agency, offer commitment in return.
If you hand out assignments to different agencies for every project, you can’t expect any one of them to offer you commitment in return. Agencies rarely make money on short-term relationships. So if you want your agency to care about your business, be sensitive to theirs. Include them as much as possible. If you’re simply looking for a project vendor, you may not need an agency at all. Consider freelance instead.

5. Show courage.
Want your agency to provide groundbreaking thinking? Then encourage them to experiment. Be willing to make an investment, however small, on an untried, but potentially lucrative idea that’s on strategy. You don’t have to bet the farm. But do look for ways to show you’re onboard with innovative thinking.

6. If you work with multiple agencies, be clear about who does what.
Just as you have a hierarchy within your own organization, you need to appoint an authority among your agencies. Enlist one agency to make integration their key priority, and then make sure the other agencies understand their own roles in the process. Agencies are hardwired to compete. So don’t expect them to just magically integrate and play nice. It’s not going to happen.

7. Streamline the approval process and provide honest feedback.
Ideally, your approval process should be quick and clear. Don’t wait until the third or fourth review to eliminate a so-so idea. Agencies would rather know upfront when something isn’t right, so they can start over. It’s kinder than sending them through multiple revisions, only to have the work die later. Narrowing approval to a limited group makes quick elimination easier to achieve.

8. Have frequent conversations with your agency.
Like any relationship, it’s important to communicate concerns with your agency. Give them the benefit of regular reviews. In our experience, it’s good for both sides. You may even be surprised at the constructive solutions such discussions can yield.

9. Make sure you choose the right agency in the first place.
Sending out a questionnaire or a request for credentials, capabilities and other information fosters one-way communication. If you want your new agency to understand your business goals, marketing objectives, strategies and other expectations, you should start with a dialogue. A two-way conversation helps build mutual respect and should save you time in your search process.

Brand Architecture: Association Branding

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We spotted this article and thought it important enough to share. Although we usually refer to the various brand architecture models as either monolithic, endorsed, free-standing or hybrid … brand extensions are fascinating to study, whatever the moniker/handle. In this day and age, co-branding seems particularly interesting and challenging to pull off, as the author explains here.

From Marketing Insider, article by C. W. Park:

With association branding, the new product is less strongly connected to the parent brand than is true for extension branding. As such, the company trades off potentially strong extension and feedback effects for lower risk of damage to the parent brand should the new brand perform poorly. Let’s take a closer look at the four association branding options in brand architecture.

1. Subbranding
Subbranding adds a new brand name to the parent brand name. The parent could be a holding company, corporation, strategic business unit (SBU), or a specific product. Here the company takes advantage of the equity (e.g., trust, reliability, luxury image, etc.) of the parent brand while also developing a unique name and identity for the subbrand. The subbrand is distinct from, but still a member of the parent brand family. Think about Microsoft and Microsoft Xbox. Xbox (the subbrand) has a younger, cooler image than the Microsoft brand does, and it appeals more strongly to a younger audience of gamers. The Toyota Prius leverages the qualities normally associated with Toyota (e.g., reliability and user friendliness) while developing new associations, such as fuel efficiency and environmental friendliness, in the subbrand Prius. Because a subbrand has its own identity, the extension and feedback effects are somewhat weaker than what can be realized with extension branding.

Subbranding is a viable branding option when the parent brand’s characteristics or associations do not readily transfer to the new product, and when the new brand needs to be somewhat differentiated from the parent brand. Take Porsche Boxster, Porsche Cayenne, and Porsche Macan as examples. On the one hand, the Porsche parent brand wants to establish a new business (e.g., in the SUV market and lower-price range segments, etc.) efficiently by supporting it with the trust, love, and respect that customers have for the parent brand. But the company does not want the new business too closely linked with the parent because the parent brand is known for high-performance sports car racing.

Subbranding indicates that the new brand is a special version of the parent brand. Subbrands have additional benefits. First, companies can gain cost efficiencies in advertising, promotions, and distribution. The subbrand also allows the company to target new, specialized customer groups whose needs may differ from those associated with the parent brand.

With subbranding, the parent name always comes first so that the new product is still strongly tied to the parent brand and its identity. But the subbrand is subservient to the parent brand. This can make it difficult for the subbrand to establish its own independent identity and equity unless the company promotes the new identity. For example, Ford’s Taurus (one of Ford’s many subbrands) was the number-one brand in the midsize car market several decades ago. Today its identity and distinctiveness from other Ford brands are less clear. Having too many subbrands aggravates this phenomenon. Other brand naming options may be better if meaningful differentiation from the parent is a key objective. However, when properly managed the parent brand and the subbrand can both drive demand for the new product (e.g., Toyota Camry, Honda Accord, etc.).

2. Endorsement Branding
With endorsement branding, an established parent brand introduces a new market offering. Examples include Courtyard by Marriott, Disney Presents … ,Polo by Ralph Lauren, and Solar Turbines— A Caterpillar Company. Here, the parent brand plays a supportive role by endorsing the new product. Endorsement branding assures customers that a strong, high-quality brand stands behind the new product offering. The parent (endorser) brand thus provides credibility and legitimacy to a new offering while allowing the endorsed brand to operate independently from the parent brand. Movies such as Frozen or Big Hero 6 might have been less successful had they not included the Disney name as an endorsement.

Endorsement branding and subbranding differ in two important ways. First, with endorsement branding, the emphasis is on strong extension effects because the new brand is supported by the parent brand. But with endorsement branding, the feedback effects on the parent are weaker than is true with subbranding.

Second, with endorsement branding, what gets transferred to the new brand are the legitimacy and credibility of the parent (endorser) brand. With subbranding, what gets transferred to the new brand are the memory associations and identity linked to the parent. Endorsement branding is preferred to subbranding when the new offering needs a unique identity that distinguishes it from the parent brand but when it can also benefit from parent brand’s credibility.

Sometimes companies use what might appear to be an endorsement branding option by endorsing a new product category.For example, the German brand Tchibo calls its line of yoga tops and leggings Active by Tchibo or its children clothing line “Kids by Tchibo.” These are not endorsement brands because the new brand is really just a different product category pursued by the company. We would only regard them as examples of endorsement branding if customers considered Active or Kids to be unique brand names. Otherwise, these names are simply variations of extension branding.

3. Indirect Branding
With indirect branding, the new offering is linked only indirectly to the parent brand. Indirect branding and endorsement branding both use a brand name that’s separated from the parent’s name. But with indirect branding, the parent is less visible, and support of the parent brand is less direct.

For example, Wheaties and Cheerios benefit from their ties to General Mills, given General Mills’ history in making cereals. But the General Mills name is not part of the Wheaties and Cheerios name. The General Mills name is inconspicuous, shown only on the top left-hand side of these brands’ packages. BASF, one of the world’s leading and most innovative chemical companies, uses indirect branding for its Novasil, Lucarotin, Lutrell, and Amasil brands. All aim to provide nutrition to cows and other ruminants, but the parent brand name BASF is only used indirectly.

In light of the relatively wide distance between the parent brand and a new brand name, the extension and feedback effects are weaker for indirect branding than for endorsement branding. This option is appropriate when the company wants to develop a unique identity for the new business. The parent brand provides some credibility and support (as with endorsement branding), but it’s the new brand name that’s prominent.

This is not to say that the parent brand in the indirect branding cannot play a powerful role in offering credibility and legitimacy or quality assurance to the new brand. In Korea, for example, PMO uses indirect branding with great success. Or consider the extent to which customers trust and value the “Bayer” parent brand name for a variety of consumer health care products. Depending on how a firm promotes its parent brand name (e.g., through corporate advertising), customers may consider the parent brand name as a strong and reassuring seal of quality even if the parent name is not displayed prominently with the new brand.

4. Cobranding
The fourth type of association branding is cobranding. Here, two brands (either from the same company or from different ones) come together to form a new market offering, product, or company. Examples include Adidas Porsche Design athletic shoes, Tide 2x Ultra with Febreze Freshness laundry detergent, or Disney • Pixar. With this branding option the goal is to convey that a new business (or product) has the strengths of each brand and/or that one compensates for the weaknesses of the other. Think about the hypothetical example of the Godiva SlimFast cake mix. Godiva is known for rich, sumptuous chocolate, but few would associate the brand with low calories.

SlimFast has the opposite association— it is well known for low-calorie (though not necessarily good-tasting) food. When combined, Godiva and SlimFast may compensate for each other’s weakness (e.g., Godiva SlimFast cake mix).

Cobranding is somewhat similar to endorsement branding, since there are two brands. But with endorsement branding, it is clear which is the endorsing brand and which is the endorsed brand. With cobranding, each brand endorses the other. Also, with endorsement branding, the endorsed brand takes a new name. With cobranding, established takes the form of endorsement branding, but it’s actually an example 0f cobranding, since Godiva and SlimFast are already well-known and established brands in their own right.

This is not to say that the parent brand in the indirect branding cannot play a powerful role in offering credibility and legitimacy or quality assurance to the new brand. In Korea, for example, PMO uses indirect branding with great success. Or consider the extent to which customers trust and value the “ Bayer” parent brand name for a variety of consumer health care products. Depending on how a firm promotes its parent brand name (e.g., through corporate advertising), customers may consider the parent brand name as a strong and reassuring seal of quality even if the parent name is not displayed prominently with the new brand.

One downside to cobranding is that it may be harder for customers to understand the identity of the cobrand, since it is blending associations linked to each individual brand. When two brands do not have strong built-in reinforcing or compensating identities, customers may not understand how or why they are related, or what this new product or company stands for. Cobranding creates an extension effect, which helps the cobranded product. Cobranding also has feedback effects. However, it’s often unclear as to which brand benefits more from the positive feedback effect. For instance, does Godiva benefit more from its cobranding with SlimFast (i.e., being perceived as a delicious chocolate brand with lower calories) or vice versa (i.e., SlimFast as a low-calorie cake mix with a sumptuous, mouthwatering taste)? When one brand is substantially weaker than the other, it is the weaker brand that benefits from stronger feedback effects. As with all branding options, it’s important for the cobranded product to deliver on perceptions. If it doesn’t, extension effects will be limited, and feedback effects on the parent brand will likely be negative.

Contributed to Branding Strategy Insider by: C. Whan Park, Deborah MacInnis and Andreas Eisingerich, excerpted from their book, Brand Admiration with permission from Wiley Publishing.

The 2018 Advertising Trend: Tell The Truth

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The “tell the truth” headline for the article below grabbed our attention. We know from long experience that far too many view “truth” and “advertising” to be strange bedfellows. Yet…in our view, the real essence of successful branding is, in fact, telling the truth about the brand…in a memorable, compelling fashion. Importantly, the author urges us to be sure that our delivery “feels true” as well.

From Marketing Insider, article by Marcia Lorente:

A recent study by Viacom Velocity shows that 33% of people don’t believe there is such thing as the truth, and 51% sometimes don’t believe what mainstream culture considers “fact.”

Is truth the latest casualty of a post-trust society?

How do we market brands in the age of “fake news”?`

Back in the day, it was enough to tell the truth and back it up with facts. But given our culture of information overload and contradictory facts, truth needs to not just be true but “feel true.”

Successful brands know how to harness this new type of truth-telling by offering emotional value along a customer’s journey. They do this in three ways: They let customers prove what’s true, they innovate in ways that feel true, and they help people express truth.

On the first type of truth-telling, nothing is more effective than the old “don’t take our word for it, try it out.” It makes people feel smart and important, even if we go on to make poor choices. It’s human nature to question and experiment; that’s how we learn that fire burns. We’re wired to trust no one’s experience but our own. This type of truth-telling is key during the purchase stage and, more often than not, requires investment in the real world.

Nike, for example, offers free return of its shoes for any reason within 30 days of purchase. “Any reason” includes me running in my brand-new Nikes for 29 days. As a runner, it is tempting to try other brands, but why would I? Nike gets me; it knows I’m serious about my running and won’t let other brands define the kind of running shoes I like. So even if the shoe doesn’t fit, I’ve come to believe that it’s true that it gets runners like no other brand.

The second way to harness truth is to recognize that it can’t be explained, only felt. And innovate accordingly.

This is most powerful during the advocacy stage, when you can tap into a brand fan base to test brand extensions. Innovation without input from hard-core brand lovers is tempting but a mistake. If you asked Beyoncé fans to describe her “truth,” what they love about her, it won’t be very useful. However, they know almost instinctively when something is “on” or “off” brand.

A brand that innovates while staying close to its core of brand lovers is Whalebone — a printed magazine, radio station and apparel company based in Montauk, N.Y., with a serious following and advertising support at a time when people aren’t flocking to traditional media. What are they selling? If you heard the founders speak, it’s “Montauk lifestyle.” What is that exactly? It probably means different things to different people. But by listening to their fans, they expanded their offering and created touchpoints that represent the unique lifestyle of a small, local fishing community that comes alive in the summer.

The third way of truth-telling is when you help people tell their own truth.

What marketers often forget is that there are profound reasons to customer behavior. Successful brands sell more than just products and services; they know how to solve inner conflicts or tensions that people have. This type of truth-telling is most useful during the discovery stage, when you’re trying to draw attention to your brand and gain new customers.

A brand that does a great job at this is Instagram. Of all the social networks, it recognized early on the need for anonymity and an endless appetite for visual stimulation in our culture. In a world increasingly impatient with the written word, an image can tell a thousand words. As suspicious as we’ve become of facts, Instagram knows that we’re a lot more trusting of what we can see with our own eyes. And visual storytelling is at the core of the truth it sells.

In summary, truth is as compelling as ever, but there is a reframing of what constitutes truth. To aid customers through their journey, make sure your brand feels true every step of the way.

 

2018 Predictions

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PeakBiety just finished an online video for our client, iTedium, which you can view here. So…when we read in The Business Journals 2018 Online Predictions that “online video will account for 74% of all online traffic,” and, “since 2015, the annual average spend by businesses for producing original digital videos increased 80%”…we feel pretty well-positioned for the future.

Click here to download PDF

5 Mandates For Brand Citizenship

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Guiding a brand to sustained growth is a BIG task…well beyond the very first rule of: deliver on your promises. What are you doing to make your brand BIGGER?

From Branding Strategy Insider, article by Anne Bahr Thompson, posted January 23, 2018

Businesses have the potential for effecting societal change in unprecedented ways. Many businesses recognize the magnitude of their responsibilities. However many still don’t act on this recognition. – CultureQ participant

Here’s what our three years of qualitative and quantitative research told us about how people define businesses responsibilities to customers, employees, and society, distilled in our five steps that comprise Brand Citizenship:

Step 1. Trust. Don’t let me down. First and foremost, people want brands that deliver on their promises. Consumers loudly and clearly told us fair value for quality matters more than absolute price. People are faithful to brands that clearly communicate what they offer and follow this up with reliable products and services, sincerity, reciprocity, and listening.

Step 2. Enrichment. Enhance daily life. Innovative, hip brands that are ahead of the curve are great, but the notions of new and improved alone are not enough to capture attention. People identify more with—and are less price sensitive toward—brands that understand the things that are important to them individually and that help them to simplify their routines, make mundane tasks less dull, and enrich their daily lives.

Step 3. Responsibility. Behave fairly. In a post-recession, flattened, and transparent world, customers expect brands to treat people fairly, behave ethically, and be proactive in their business practices. This doesn’t mean a brand has to be perfect. Indeed, people respect and become fans of brands that behave more like people than demigods, provided they are honest about their shortcomings and strive to be better.

Step 4. Community. Connect me. The brands we choose are extensions of who we are and act as badges for what we are about to other people. Fans want brands to connect them to other people who share their interests and true passions. Physically, virtually, and emotionally, brands have the power to rally communities, change our behavior for the better, and fix social problems—provided they are not overtly political.

Step 5. Contribution. Make me bigger than I am. People insist that brands play an active role in creating a more positive and life-enhancing future. They want to buy from and deal with companies that are making a difference and contributing to our communities and world. As noted earlier in this chapter, participants in our research were clear that the brands they labeled as leaders have the know-how and skills to do this. They yearn for the brands they buy—or aspire to buy—to advocate on their behalf and address the issues that matter most to them. By improving life on the planet, a brand is ultimately enriching its fans’ lives.

Brand Citizenship begins with delivering value to the individual person, or ME, through the products and services they buy, functionally and emotionally, and then moves outward to deliver added value to society—or the collective WE. Brand Citizenship is a win-win-win solution that mutually benefits people, companies, and society. It integrates doing good activities, such as fair-employee policies, CSR, sustainability programs, ethical sourcing, and charitable giving with brand development in order to strengthen a brand’s reputation, foster greater loyalty, and enhance value creation.

Our research demonstrated that, regardless of size and no matter what industry a company is in, it can reap the benefits of Brand Citizenship: more loyal consumers, more engaged employees, more raving fans, more positive reputation, more engaged stakeholders, and more value for shareholders. With so much media attention focused on larger, well-known social enterprises that have “doing good” overtly embedded in their vision or brand purpose, Brand Citizenship’s five steps equally help the Fords, Vaselines, and Madewells of this world, as well as entrepreneurial start-ups, to connect the dots, so that they, too, can earn a profit and get lasting credit for fair employee policies, CSR, sustainability programs, ethical sourcing, and charitable giving.

Contributed to Branding Strategy Insider by: Anne Bahr Thompson. Excerpted from her new book Do Good, Embracing Brand Citizenship to Fuel Both Purpose and Profit.