By Abe Kasbo

So I’ve received many reactions to my previous post branding is bullshit…they range from skepticism to outright hostility…either way I stand by my position. Look branding is a powerful thing and we all know it. However, small businesses have looked at branding through the lens filter of Coca Cola, McDonald’s, IBM, and others who have not only been in the market forever, but have the necessary resources to spend on advertising, conferences, public relations, and other marketing communications avenues to deliver and extend their brand. And the usual way of looking at this type of branding is through the filter of advertising - the most visible of any branding element. And that’s where small and middle market companies ($5 million - $500 million in revenue) get into a false sense of what branding really is and how to brand their companies.

It’s fashionable for marketing communications people position themselves as brand champions, or branding companies - not to say that these folks do don’t good work - but it is what the market wants to hear, rather than what the market needs. In essence branding has become a Brand with a capital B. I’ve participated in seminars about brand DNA, core branding, brand extensions, and inevitably at the end of these sessions, participants walk out with the following collective thought “we need better branding.”

But what does that mean? My branding is BS position comes down to these things:

1. Branding has become it’s own brand…it’s easy to understand. Advertising people and marketing types use it because it’s an easy sell and let’s face it, if you do it right, can deliver a sharp competitive advantage.
2. Branding is a mélange of elements that have to be executed over time and is rarely achievable in the near-term
3. Branding is hard work and it may mean anything from exploring cultural phenomena and its affects on your business to your key marketing messages and value to the market place.
4. Branding is a result of what you do, not what you.
5. Branding is about your customers, more than it is about your business.
6. Branding is more about execution of targeted activities than concepts…so draw up the play, but then put the ball in the basket.
7. Branding is about integration of values that you project into the market place and then embraced by your customers, and therefore you must tell a story that forges lasting emotional connections.

So if you’re a small and middle market business, branding ought to be at the forefront of your marketing goals. Be sure to start with an integrated marketing communications plan, and execute against it…only then will you be on your way to brand nirvana.

By Abe Kasbo

I met my friend Jim Barrood for lunch today. Jim is the Executive Director, Rothman Institute of Entrepreneurial Studies Silberman College of Business at Fairleigh Dickinson University. Jim is one of our nation’s brightest business minds, and an expert in innovation. We were talking about a mélange of business topics when the conversation took a turn down Interesting Street. We got on the topic of marketing and branding and that’s when I blurted “Jim, branding is bullshit!” He bit through a French fry and gave me a skeptical stare, a “Wachu talkin’ bout Willis” kinda look.

Jim asked for an explanation. “Look,” I argued, “companies invariably approach branding as an activity. ‘We’re embarking on a branding campaign’ or ‘we’re rebranding our product line’ and what they really mean - usually - is a new logo, collateral, website…that is not branding. And this is especially acute in companies that range from $5 million to about $500 million in revenue. It’s reality.” Jim was intrigued and so I continued explaining my position.

A brand is a result of integrated activities that happen over a period of time bringing together various parts of the enterprise to achieve consumer preference, affinity and ulitmately drives growth. Launching a brand is one thing, but becoming a brand is entirely different. I believe that when businesses talk about branding, they mean “becoming a brand” but act as if they are “launching a brand.” And so team are mobilized, resources allocated…launch, then what? It’s the “then what” part where brands are built and real value is made.

Charlie Rose recently Jeff Bezos, CEO of Amazon and Jeff spent a good potion of the interview talking about his obsession with his customers. Specifically with customer experience. Think about it, Amazon got most of its press because of its high flying stock in during the internet boom. Very little advertising, very little “branding,” The internet bust came, and Amazon continued its course - very little advertising, very little “branding.” How did it attract customers? First of all, Amazon.com kept refining its customer experience and understood that by building a superior online shopping experience, customers would return and new customers would be had. It’s that simple. Think about it, when was the last time you’ve seen an Amazon commercial or received a direct mail piece. Yet, time and again, when I think about buying books online, I go to Amazon. That is a brand strategy.

Yes, branding is about your image, the look and feel of your stuff, but more importantly, branding is about the total experience your customers have with your company, and it’s that experience that will tell them to choose you, recommend you, or not. A brand is about forging an emotional connection between you business and the customer. And that takes long-term commitment and vision…we all know these days business is largely driven by short-term expectations, quarter to quarter.

Moreover, branding has now been entrenched in the corporate dictionary and has become essential to anyone conversant in corporate lingo. So you want to impress your boss and your peers, say this in the next meeting “we need deliver on our brand promise,” and you’re on your way. Unfortunately, everyday good businesses stake fortunes on what they believe are branding campaigns (becoming a brand) that turn out to be nothing more than glorified advertising campaigns.

I will discuss how to businesses can work their way into becoming a brand in my next post…

By: Abe Kasbo

On the last day of trading in 2007, the American markets were down, perhaps foreshadowing of things to come in 2008. 2007 Fourth quarter media headlines seem were screaming for a slow down 08 in the US market. Most economic surveys are indicating a slow down in the American economy due to several factors including higher gasoline prices, and the effects that has on rising food and commodity prices, the sub-prime mess, and general lack of consumer confidence, not to mention the sinking dollar. Will the consumer have enough firepower to surprise us? Who knows? But, in the face of the possibility of a slow-down, conventional business practices usually look to marketing as the first place to contract. “People aren’t buying, why am I marketing?” is the rationale at its most basic form. Slow downs are challenging times for CMOs, it isn’t bad enough that a recent study showed that the average tenure of a CMO is about 2 years (results people, I want results!), and if sales are down, marketing’s the usual suspect.

It is our position that conventional approaches usually yield predictable and sometimes, sub-prime results - sorry, couldn’t resist! Don’t take my word for it, simply check out the various business cases available for reading on this subject. Innovation in marketing or in any industry for that matter doesn’t just happen during good times, it can also happen during down turns and slow downs. Several questions arise here: Do you innovate in tough times or stick to your guns? If so, how? And what can I expect?

So what are businesses to do in 2008? Where, and more importantly, how do we find growth? Of course, that depends on your industry. Here are 6 practical suggestions for growing in 2008.

1. Set realistic expectations - proformas are what we can best hope for. Take a look at your market, parse the data, look at your frequency and reach programs and get real about growth targets.

2. Go back to basics - I know what you’re thinking, didn’t he just scoff in the face of convention a couple of paragraphs ago? Going back to basics is indeed unconventional at any time. Successful sports teams build their brands on winning records, and a keystone of winning is fundamentals. Same applies here. We don’t believe that the basics and innovation are mutually exclusive in this case. And so, there must be a balance between the basics and innovation…and that begins with meticulous planning and execution…

3. Plan and execute - Meticulous planning is important but not enough. Inevitably, marketing plans falter because of failure of planning and execution. The two should work together. Be sure that you have the right players too. Execution failures are costly, especially in a down market, one reason is your competitors are likely to be pulling back on marketing activities (the conventional wisdom), giving you opportunities to build your market share in a tough time. Another reason to execute well is your constant presence in the market, regardless of media - as long it’s appropriate of course - will add to recall, strengthen relationships, and keep you top of mind and ultimately add to your brand position and equity.

4. Get closer to the media - Partner with the media. Be a resource and provide them with angles they can use. Remember, writers and editors are in the content business; they’re trying to attract eyeballs. So give them what they need, something compelling to talk about. Being a resource when times are slow can provide your business with much needed exposure and, depending on the piece, may set you apart in the market place. And while some businesses are leery of reaching out to the media, especially, if there are bad news surrounding that sector or company. We say balderdash! Being open and honest with the media enables you to develop on going relationships, and gain access to the media, which is the single toughest obstacle to getting press.

5. Negotiate harder with advertising outlets - media fragmentation is real. Look at your advertising plan and re-negotiate rates with the media outlets. For example, NBC recently refunded advertisers because it did not deliver on ratings. If you’re a newspaper advertiser, circulation is down significantly across the board, so negotiate harder and pick your media more carefully.

6. - The Internet - search engine optimization will continue to grow and it’s a good way to get new leads and business on the net. The Internet means business, so take a strong position.

Here’s to a great 2008.