by admin | Aug 15, 2012 | Blog, Promotion, Strategy
‘What is a brand’ is still the most misunderstood and misused concept in the small business arena.
In previous blogs I have at length discussed the fact that it is not a logo, name or packaging, but the total sum of perceptions that your customers and prospects have about your business or organization.
It is what they think and feel about you and those emotions and thoughts are the result of your target audience experiences with your company.
But there is an even simpler way to look at the concept of brand, the way that the world of business looked at it before the word became a way for ad agencies to not only examine competitive strategies in their bid to sell to the mass market in the 1950s but also a way to mystify the advertising process and hence become the guardians of the ‘brand’.
So what did business people say before the word brand entered the everyday vocabulary of business media?
Here’s the way three great mean described:
“It takes many good deeds to build a good reputation and only one bad one to lose it”
-Benjamin Franklin
“It takes 20 years to build a reputation and 5 min to ruin it. If you think about that you do things differently.”
-Warren Buffett
“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.
-Jeff Bezos, founder of Amazon.com
So what is a brand?
Simple – it’s your reputation. So brand building is actually all about building and protecting your reputation. Although I hate the somewhat old fashioned and hence manipulative sounding title of the book that at one stage outsold the Bible, the message in it is sincere and well meaning and one that has not been adopted anywhere near enough. I’m talking about a book that gives us all the most basic and amazing principles of persuasion, reputation building and managing people -“How to Win Friends and Influence People”
The next 4 blogs will summarize the 4 chapters of Dale Carnegie’s must read book to effective communication and illustrate the way they directly relate to the AIDA (Attention | Interest | Desire | Action) model of advertising.
by admin | Feb 16, 2011 | Blog
Many of the older brands have rich histories that make them “legendary”, however new and small brands can benefit similarly if they follow the rules of being interesting and authentic.Keep in mind these “legends” were also just a small business, with nothing more than the vision and passion of their founders.
Did Coca Cola really invent Santa Claus? Maybe not but it certainly made him their brand ambassador and part of our popular culture for ever!
by admin | Jan 22, 2011 | Blog
THE 1-PAGE PLAN FOR DESIGNING, BUILDING AND MAINTAINING YOUR MARKETING HOUSE.
Starting at the bottom and working your way up will give you an incredible advantage over most of your competitors.
The estimates are that only 3% to 5% of Australian small businesses starting from scratch prepare a business and marketing plan; that is, know that their business is feasible and have a formal plan to steer that business towards success.
It is then no surprise that CPA Australia estimates that one in three new small businesses in Australia fail in their first year of operation, two out of four by the end of the second year, and three out of four by the fifth year. Just approximately 8% of small businesses succeed beyond five years. These statistics are similar across many of the western economies.
by admin | Jan 21, 2011 | Blog
Marketing is an ongoing process, similar to designing and building a house.
It is then important to maintain and build the value of your marketing properties and prevent this value being depreciated through neglect of infrastructure or promotional activity by competitors.
Firstly the structure must be designed correctly, beginning with the foundations that will support any future building.
Unfortunately, many businesses do the equivalent of trying to put a roof on a house with no foundations or walls by asking marketers to jump straight into execution and promotion. And many marketing suppliers oblige them!
By demanding that marketing people produce a Website, Advertisement, Brochure, etc. before the business has answers to strategic questions and clear plans for long term communication, inevitably always ends up wasting time and money.
To get the best return on the marketing investment, time needs to be dedicated to answer the questions that assist in building a solid foundation for the marketing of the business. By starting at the bottom and working up, the business building process will be shorter, less painful and more profitable.
by admin | Jan 7, 2011 | Blog
A 2008 PwC survey “Private Business Barometer IV” paints a depressing yet realistic picture of the Australian small business state of play – about 92% considered cutting their marketing budget. Gregory Will, partner at PwC, rightly points out that these are the very areas that are the source of most small businesses’ competitive advantage. 3 years on and nothing much has changed!
The reality seems to be that we’ve gone from riding on a sheep’s back to acting like them at a time when we need leaders not followers!
You can call farmers “battlers”, but not the majority of SME business owners – their droughts are mostly self inflicted. The following is a statistic I found on the CPA Australia website – 3 years ago – and it estimated that one in three new small businesses in Australia fail in their first year of operation, 2 out of 4 by the end of the second year, and 3 out of 4 by the fifth year, with only approximately 8% of small businesses succeeding beyond five years.
Failure to plan is a plan for failure
Conducting a business without a formalised plan is much like trying to drive a car to an unknown destination without a map. Yet the estimates are that only 3% to 5% of Australian small businesses starting from scratch prepare a business and marketing plan; that is, know that their business is feasible and have a formal plan to steer that business towards success. Based on the fact that a Feasibility Study, a SWOT Analysis and a Marketing Plan are a part of any Business Plan, I suggest that approximately 70% of all business failures and almost 100% of lack of business growth are due to inadequate Marketing.
Peter Drucker, the grandfather of modern management said business is about 2 things and 2 things only – innovation and marketing! A number of studies conducted since WWII showed something that marketers have known all along – keep marketing through the downturn. The following quote is from Professional Marketing, Oct-Dec 2008 – article titled “All Hands On Deck”: “…companies that increased marketing spend (relative to market size) during a recession, increased their return on capital employed by 5% in the recovery, compared to a 1% decline for the budget cutters”
Most businesses are either ignorant or choose to ignore the empirical evidence for maintaining or even increasing marketing investment in a weak economy
– Competitors tend to cut spending, creating opportunities
– Maintaining promotional spend will sustain or even grow market share
– Stealing share of mind is a bargain during a recession
– Consumers don’t “go away” during a recession, they become more conservative
For most SME’s marketing is an expense and not an investment.
Most SME business owners do not understand the meaning of marketing or branding let alone have any basic understanding of advertising principles to effectively and efficiently reach their target audience. Much of the SME marketing efforts are wasted anyway – just open your local paper, look into your mailbox and see the standard or the lack of it in SME marketing communication. Only a few weeks ago the ABS released a frightening statistic that 66% of Australian businesses do not have a website!
Attitudes have to change
“Ego and advanced ignorance have killed many a business, and continue to do so. …ignorance is acceptable because it means we don’t know. Advanced ignorance, however, is ‘knowing we don’t know’ and doing nothing about it! It’s deadly….there’s information readily available on every conceivable issue relevant to growing a healthier business, but it’s far easier not to seek anything at all.” Says Brett Lowe of Business Planning Works.
There are businesses still around today, that perceive customer service to be a “Thank You” on the invoice
A study of 460 B2B organizations that employed 100+ people, conducted by Strike Force Sales, found that only 6% of Australian companies pick up the phone and respond to a web generated sales inquiry with a phone call. The MD of the company, Chris Moriarty brings this reality home with another statistic that shows 46% of the time auto-response emails are never followed up.
In the last 5 years, I have met hundreds of SME proprietors and completed over 70 SME marketing projects. I have discussed the SME challenges with colleagues and other consulting professionals and have to say that there are glimmers of hope. These generally lie with the younger more entrepreneurial SME business owners who have grown up on the ‘brand rich media diet’.
There is plenty of professional help out there, admitting you need it, is the hard part…
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