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Jun 9th, 2010 by Paul Louzado

B2B can be emotional too

For years, many believed that branding had no part to play in the business-to-business (B2B) space—that business is built on relationships and portfolio client referrals, rather than “emotional” (and supposedly intangible) brand-related decision making.

However many non-consumer companies (such as GE, SAP, Accenture) are leveraging their strong brands and even developing awareness in the consumer arena. In a B2B environment, a brand can create perceptions of quality; value associations that can benefit product extensions; and a powerful platform to differentiate in a crowded market. And, while relationships are very important to attracting and developing clients, this is only one of a number of tools available to companies looking to build a loyal customer base.

Recent research1 is now taking a deeper look into the dimensions of brand loyalty, taking a tri-dimensional approach:

  • Emotional loyalty – commitment to a brand through positive feelings and attachment
  • Cognitive loyalty – psychological preference through positive functional beliefs and thoughts
  • Behavioural loyalty – selection on basis of positive experience and/or reward for repeat selection

To gain a full understanding of loyalty, it is necessary to understand these three dimensions in relation to your specific product category and the context of interaction. For example, when purchasing commodity products where there is high competition and low perceived differentiation, behavioural loyalty has been shown to be the primary dimension. Conversely, in higher risk transactions with few suppliers, emotional loyalty appears to be an important dimension.

This model that dissects loyalty into a more understandable and scientific framework can be applied to both the consumer and business markets. By understanding the loyalty dimensions at work within your product category and impact of contextual variables (such as time constraints, purchase occasion, sales promotions, etc) it is possible to strategically dial up elements of your marketing mix to strategically build brand loyalty.

1) “One size doesn’t fit all. Exploring marketing strategies for influencing three dimensions of brand loyalty” Leeds Metropolitan University, July 2009

Paul Louzado is a project manager for the Siegel+Gale Dubai office.

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tags: B2B brands, brand, brand loyalty

Jun 8th, 2010 by Thomas Mueller

02 Days 21 Hours and 51 Minutes and counting until the 2010 FIFA World Cup: Hear the crowd roar

When host country South Africa kicks off the World Cup on June 11th in Johannesburg’s Soccer City against Mexico, it will be the two teams’ fourth overall match, with Mexico winning two of the previous three and scoring a total of nine goals. Maybe South Africa will open up this tournament with a surprise win and tie the head-to-head comparison against Mexico, the infamous record holder for most overall team losses (22) in a World Cup.

Will we see a rise of new soccer nations or will the usual suspects be among the final four teams?

Over four weeks, 32 teams paired in eight groups of four will play a total of 64 games in 10 stadiums, until two finalists meet on July 11th to determine who will take home the world’s most coveted soccer trophy.

Will it be five-time champion Brazil, or Italy, the current title-holder and winner of four tournaments? Could it be Germany, winner of three titles and the team with the most appearances in the last four World Cups? Or, will one of the much talked about African teams rise to the occasion on its home turf?

Will we see rise to new individual records and personality brands?

Antonio Carbajal (Mexico) and Lothar Matthäus (Germany) share the record for most tournaments played, with each of them playing at five consecutive World Cups. Lothar Matthäus holds the record for most matches played (25) at the World Cup stage.

But, will a defining moment surface for Cristiano Ronaldo and his Portuguese squad to capture the imagination of the world, or will we see Diego Maradona’s Argentine team with Diego Millito, Lionel Messi, and Carlos Tevez who take home the trophy for the first time since 1986—tying Germany for three overall World Cup wins?

Will World Cup 2010 mark the final turning point in how we watch and participate in a singular-focused global sports event?

The World Cup was first televised in 1954 and is now the most widely-viewed and followed sporting event in the world, exceeding even the Olympic Games. The cumulative television audience of all matches of the 2006 World Cup in Germany is estimated to have been 26.29 billion, with 715.1 million individuals (a ninth of the planet’s population) watching the final match (Source: Wikipedia.org).

Since 2006 we all have witnessed the rise of social media, and the coming weeks are estimated to drive record social media traffic in South Africa and around the world. When Facebook, Twitter and YouTube launched in 2004, 2005 and 2006 respectively, they were in their infancy compared to the dominant position they each hold today. As of June 1, 2010, Alexa, the Web Information Company, ranks Facebook as #2, YouTube as #3 and Twitter as #11 of the Top 500 sites on the web, based on monthly traffic numbers. Social media now connects millions around the world—50 million tweets are sent daily, while Facebook boasts more than 400 million active users—a development that will allow fans to celebrate goals or critique referee decisions together online. With all the mobile applications available from Apple’s AppStore, you get a clear idea of how individualized one’s World Cup experience can be.

As a soccer enthusiast, I am in the final stages of mapping out my highly customized experience map, among the iPhone Apps for ESPN, Fox, the FIFA website, and of course, Foursquare—ensuring I celebrate with the right crowd at the right time, in the right bar. I don’t want to mistakenly stumble into on an Aussie bar on June 13th when Germany takes on Australia. Australia—record-holder for the most goals scored in a qualifying match on the way to a World Cup at 31. Adding fuel to the fire, Germany holds the record for the most goals scored in one World Cup Tournament, with 25 goals scored during the 1954 World Cup in Switzerland. Between friends, family and even perfect strangers, a text here and a tweet there will unite soccer fans around the world—connecting them to one of the most exciting tournaments in the history of athletic competition.

Have a wonderful 2010 World Cup. For the Game. For the World.

Thomas Mueller is the global director, dynamic media for Siegel+Gale.

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tags: brand, social media

Jun 7th, 2010 by Fred Burt

Saving through simplicity

It came as no surprise in a leaked letter to suppliers that the Central Office of Information (COI), the UK government’s department for marketing and communications, is cutting its spend on marketing by “at least 50%”, slicing in half the £540M spent last year.

In an article by Brand Republic, the COI confirms the cuts that will take place during this financial year.

Helpfully the COI has outlined criteria for those marketing initiatives that are likely to survive the chop. In his letter dated June 2nd, Peter Buchanan, CEO of the COI, suggests that marketing initiatives likely to remain are those where:

  • “The government has a duty to provide people with information e.g. changes to legislation or public services”
  • “Providing the public with information is critical to the effective running of the country e.g. information about paying taxes, recruitment of armed forces”
  • “There is unequivocal evidence that campaigns deliver measurable benefits relating directly to immediate public health and safety”

Siegel+Gale’s work in simplification has, of course, always been focused on these criteria.

The provision of essential information needs to be clear, needs to elicit a ‘right the first time’ response, and should be understood by the public at large. Plain English coupled with clear, well-designed documents are central to the provision of this information being effective. This is where the effectiveness of clear communication really counts. You can remind me as much as you like to pay my taxes, but if the self-assessment form is difficult to complete, then the overall business objective—the prompt, accurate payment of taxes—will not be met.

Effectiveness goes beyond just getting the message across; it is about eliciting a response—a response that has a business benefit. Central to all our simplification work is a significant amount of ROI modeling. The UK government has to look at the total cost of the service it provides and be relentless in learning how to reduce the costs associated with inaccuracies, delays or failures to comply that can often result from poorly designed communications.

To site an example, if you called HM Revenue & Customs (HMRC) the week before the self assessment deadline because the form was unclear, you were among thousands. Each call had a cost. Each call reduced today is a saving. When there are 29 million tax payers in the UK the scope for saving is significant.

And evidence is critical. We have developed state of the art research tools that produce quantifiable, reliable data to show the impact that an information design change in a document, form, or statement can produce. This is essential to establish before implementing change. We talked to one government source recently who said it cost over £100,000 to make even the most minor change to any printed document. Without supporting data, it will be hard to convince a civil servant—more so in these times—that change is necessary, no matter how apparently obvious the benefit.

The UK government needs to save money, and simplifying its communications with the public will be key to initiating this process.

Fred Burt is the managing director for the Siegel+Gale London office.

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tags: brand, clarity, design, government solutions, information design, marketing, plain English, plain language, simplicity, simplification, unclear instructions

Jun 3rd, 2010 by Irene Etzkorn

Simplicity and luxury—are they compatible?

A luxurious experience can mean sumptuous, elegant and rarified. However, for me, luxury means hassle-free, pampered and reassured. Simplicity delivers the latter by making people feel confident that they’ve made the “right choice”—assuring them that they don’t have to second-guess themselves. Luxury services achieve this by doing the legwork for the customer, anticipating needs and exceeding expectations. They give the customer a simplified experience by foreseeing and removing customer burdens.

Complexity and unpleasant purchase surprises are so commonplace that eliminating them is a luxury. Consider a luxury vacation—elegant surroundings and comfort are essential but eliminating the fine print, removing hidden fees and simplifying choices are also part of delivering a feeling of luxury. Simplicity means shortening the distance between the customer and the company—whatever that takes. Delivering this type of simplicity is so rare that it warrants a premium price and delivers an exceptional experience.

As a side note—many luxury brands make a mistake by overwhelming customers with options, choices and features. They equate luxury with choice rather than service. Research shows that people feel bad about their decisions when they are confronted with too many choices, often suffering from a nagging feeling that they made the “wrong” choice. For example, I just purchased a Mercedes E350—the car has so many features that I keep losing track of how to access them from the dashboard computer screens. To me the luxury is in the handling, the styling and yes, in the plain English leasing document which Siegel+Gale rewrote ten years ago and that Mercedes is still using (it’s called the First Class Lease—the name Siegel+Gale recommended). I also like the service feature of free car washes and free at-home delivery of a loaner car when my car needs maintenance. To me, that’s a luxury because it saves me time and hassle—after all, time is the greatest luxury.

Irene Etzkorn is the executive director, simplification for the Siegel+Gale New York office.

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tags: brand, complexity, customer experience, plain English, simplicity, simplification

Jun 2nd, 2010 by Tom Blackett

Murkier yet

Having speculated recently on the ethics of ‘ambush marketing’, this writer is taking a further downward plunge into the murky world of entrapment.

It seems as if hardly a week goes by without some well-known individual being exposed in the tabloid press. Last week it was Lord Triesman, head of the English Football Association, who told a young woman he had befriended that he suspected Spain and Russia had colluded to bribe referees. The young woman leaked this information to the Mail on Sunday newspaper, together with transcripts of amorous messages, allegedly sent to her by Lord Triesman.

Then later we learned that popular Sunday tabloid, The News of the World, announced that they had effectively ’stung’ the Duchess of York, former wife of the Queen’s son Prince Andrew. In a recorded interview the Duchess agreed to provide a reporter posing as a successful businessman with access to her former husband, the UK’s ‘trade ambassador’, for £500,000. Devastated by this revelation, the Duchess has apologized profusely, saying that Prince Andrew was completely innocent of any involvement.

People who should know better wax lyrically that everything these days can be counted as “a brand”, including personalities. Well they’re not: personalities are personalities—some might even be celebrities: but brands they most definitely are not.

One of the fundamental requirements of a brand is consistency: the brand is relied upon to deliver the same satisfactions time after time. If consistency breaks down then so does consumer trust and the brand has a crisis on its hands. People, almost by definition, are fallible—some even are gullible. The best brands are neither fallible nor gullible, and it is only when the human factor intervenes that they become so.

Entrapment reveals the vulnerability of human nature. It is an arguably savage corrective, designed to play to our baser instincts—pleasure in seeing others we think should know better exposed and humiliated. Thank heavens nobody has yet devised a way of stinging brands. But, as those bank brands laid low by the financial crisis have shown, they can do a pretty good job at stinging themselves.

Tom Blackett is the non executive chairman for the Siegel+Gale London office.

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tags: brand

Jun 1st, 2010 by Eric Lin

Chinese “global brands”: A process, not an end-state

One only needs to pick up a newspaper to sense the momentum propelling China’s phenomenal growth. This year, the nation surpassed Germany as the world’s leading exporter and some predict it may soon overtake Japan as the world’s #2 economy. Earlier this month, Shanghai followed Beijing’s 2008 Olympic games with its own dazzling, $47B coming out party: the 2010 Shanghai World Expo.

Yet behind the headlines lies an inconvenient truth for Chinese leaders. Despite the nation’s sheer economic might, China has been unable to create world-class brands of its own. And until it does, China will be inhibited in its dream of becoming a true global superpower. As The Washington Post notes in the recent article, “Beijing tries to push beyond ‘Made in China’ status to find name-brand innovation,” a lack of marquee brands means China is still relegated to being the world’s factory—leaving the lion’s share of profits on the table. The article cites that for every $750 Apple iPhone manufactured in its factories, China is lucky to hold onto $25. For a pair of Nike shoes, China’s take is pennies on the dollar. Economic factors aside, a dearth of leading brands also means China will continue to be dependent upon the innovations, intellectual property, patents and brand experiences created by other nations.

This fact is not lost on the Chinese government, which for several years now has called upon Chinese companies to create strong global brands. Today, the government is spending billions through tax incentives, subsidies and direct investments in Chinese companies to create brands that can compete effectively on the global stage.

However, a key tactic being pursued by Chinese companies may be too short-sighted. The path for Chinese companies “going global” has yielded foreign acquisitions, including Lenovo’s 2004 acquisition of IBM’s PC division and the more recent purchase of Volvo by the Chinese automaker Geely. Yet, a “global brand” has as much to do with building a world-class organization as it does with having an international footprint. It is a process as much as it is an end-state. That is to say that great brands are built from the inside out, and relying primarily on foreign acquisitions alone is not a sustainable tactic for creating a world-class organization. To become a world-class organization, Chinese companies will need to commit to creating a culture of innovation, increase investments in marketing and customer experiences, and inspire employees around a sense of purpose—all with the same (if not more) energy as they do with foreign acquisitions and manufacturing.

Eric Lin is the general manger for the Siegel+Gale Shanghai office.

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tags: brand, global brand strategy

May 25th, 2010 by Jillian Mascarenhas

Connected in the Caribbean

While I have traveled a fair amount abroad, my arrival in Antigua a few weeks ago was marked by something new. There were billboards and posters liberally sprinkled throughout the airport and surrounding area alerting foreigners to the two local cell phone networks, LIME (Landline, Internet, Mobile, Entertainment) and Digicel, with tips on accessing them from an international phone.

LIME proclaims that it represents a “fresh approach from Cable & Wireless” and states that it offers “a new promise to customers… that we’ll use our international credentials to bring the best technologies to the region and build products and services that make Caribbean people’s lives better.” Its services, such as no roaming fees throughout the Caribbean and 6,000 minute-a-month plans certainly demonstrates the company’s dedication to use its networks to make people’s lives better. Meanwhile, the website and marketing materials engage natives and visitors alike with vibrant, tropical colors, witty messaging and conversational campaigns that some would argue, reflect the physical characteristics of a tart citrus. As an international resident familiar with PiperLime and LimeWire, I thought the use of “lime” to connote a fresh approach was a bit overused and expected, but to locals and regional users I can see how it would be a captivating offering and fitting for a tropical nation.

Digicel, on the other hand, is a more conservative operator. Its identity and messaging aligns with its promise to “provide customers with affordable and innovative mobile communications that foster personal and professional connections between nations and people.” Rather than a varied palette of colors, Digicel relies solely on one color, a bold red, to represent its brand. Images are more likely to show business professionals than abstract subjects or younger people. Additionally, the voice is more buttoned up and less conversational, which fits with its focus on supporting both personal and professional connections. There are times when the brand speaks to a younger audience, with messaging such as “Bling your ring,” but it seems odd in context with the rest of the brand messages.

When comparing the two websites, the differences are striking in terms of overall presentation and imagery. Living in the United States, it was such a change to see mobile operators with diverse roles in the landscape. For me, T-Mobile, AT&T, Verizon and Sprint are fairly similar, and I chose my carrier based on coverage and phones available, rather than engagement with the company.

The ads clipped from a tourism brochure (above) show how the brands are reaching out to foreigners. While LIME retained its national look and feel, Digicel altered its usual imagery to relate to visitors rather than its conservative, native customers.

While both could be considered lifestyle brands, they each convey a very different personality. What are your thoughts on telecom operators and the larger role they play as a lifestyle brand? If you live outside of the United States, do you believe that your own national carriers are similar in service and in brand positioning, as I believe the American ones tend to be, or diverse, such as Antigua’s?

Jillian Mascarenhas is a strategist for the Siegel+Gale New York office.

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tags: brand, identity

May 18th, 2010 by Matthew Huss

Which American brands will win at the
World Cup?

The countdown has begun. With less than one month to go, people everywhere are revving up for the world’s biggest sporting event. No, it’s NOT the Super Bowl or the “World” Series. Sorry, my fellow Americans. It’s not even the Olympics. It’s the FIFA World Cup in South Africa, beginning June 11th.

For months, corporate sponsors have been putting together their strategies for breaking through the clutter of advertising that’s about to wash over the digital airwaves.

You can expect that the big American consumer brands like Coke, Nike and Budweiser will make a show of force. They certainly get it. All have announced big campaigns. Coke will show off one of the largest campaigns in the company’s history built around the energy and celebration of goal scoring.

But who else will be there? Which American brands will show up and how will they position themselves? Will they try to seize the world stage and can they capitalize on it? What stories will they tell and how “American” will they appear? With the world getting flatter and America’s role in the global equation changing fast, it will be interesting to see if there’s a noticeable difference in how American companies position their brands.

It’s going to be exciting. Can’t wait to see what happens—both on the field and in the storytelling.

Matt Huss is a senior strategist for the Siegel+Gale New York office.

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tags: brand, marketing

May 11th, 2010 by Irene Etzkorn

Job-seekers beware—must speak governmentese

Today, President Obama issued a memorandum to the heads of executive departments calling for them to improve the Federal recruitment and hiring process. Specifically, he said, “Americans must be able to apply for Federal jobs through a commonsense hiring process and agencies must be able to select high-quality candidates efficiently and quickly.” Why would such a directive be needed—recruiting and hiring isn’t rocket science, (unless you are applying to NASA) right?

If you are seeking employment, consult opm.gov (for Office of Personnel Management) and click on the link titled, “Job Seekers”, you are immediately confronted by:

• Recovery Jobs
• USAJOBS
• Jobs in Demand
• Senior Executive Jobs
• Job FAQs
• Veterans’ Employment Resources
• Persons with Disabilities

Most people would want a “job in demand” rather than a job in decline so I naturally clicked on that only to be led to just one job opening: associate director for budget at the National Institute of Health. Is this supposed to be a featured opening—surely there can’t be just one position in the entire federal government that is “in demand?” It is clearly a case of the government speaking to itself—these links are a mixture of special programs, names of websites and types of job seekers.

And then it gets worse. If you find a job that is of interest, you confront this instruction to determine if you are qualified:

“A combination of education as described under letter A above and specialized experience as described under letter B above which when combined are equivalent to 100% of the qualifications requirements. To compute this, first determine your qualifying experience as a percentage of the experience required under letter B above. Second, determine your undergraduate education as a percentage of the education required under letter A above. Then add the two percentages together. The total must equal at least 100% to qualify.”

Frankly, if you can do that calculation, you should be tapped to head up the Federal Reserve.

Of course, this confusion arises only if you actually seek out a federal government job. There is actually a critical shortage of federal workers looming as large numbers of employees reach retirement so the government needs to attract talent. Many people mistakenly think that most federal jobs are based in Washington DC—far from it—most are dispersed throughout the nation. Shouldn’t that statistic be plastered on the home page? We want the best and the brightest public servants—instead we catch mice who can follow a maze.

Irene Etzorn is the executive director of simplification for the Siegel+Gale New York office.

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tags: brand, clarity, complexity, government solutions, plain English, plain language, simplicity, simplification, uncategorized, unclear instructions

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