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The Brand Champion Exit Strategy Redux – Lessons from Apple and Steve Jobs

Back in October 2008, I wrote a post on Corporate Eye about an incident when a false report online stating that Steve Jobs, the leader of Apple, Inc., suffered a massive heartattack caused his company’s stock to drop 5.4%.  I mentioned in that post that the value of a brand champion who becomes the physical embodiment of a brand can be immense, but I also questioned what happens when that brand champion exits the company he or she has championed for so long.  Apple got a dose of that reality back in October, and now, the inevitability for Apple is back in the press again.

When Gizmodo.com reported a rumor on December 30, 2008 that Steve Jobs’ health was failing after the announcement was made that he would not attend this week’s popular Consumer Electronics Show in Las Vegas, Apple’s stock price instantly dropped by $4 per share (4.5%).   Ultimately, Steve Jobs had to issue an open letter addressing his health issues to quell the panic related to his absence and what that might mean for his company.  Once his letter was made public, Apple’s stock price rose again. [Read more…] about The Brand Champion Exit Strategy Redux – Lessons from Apple and Steve Jobs

How Brands Can Leverage the Social Impact of Facebook

social networkYour brand is probably already represented on Facebook. It probably has a Facebook Page, and one or more people from your company probably publish content on that page and respond to comments published by other users throughout the day. You might even place ads and hold promotions or other marketing campaigns on Facebook. But is your brand truly leveraging the social impact of Facebook?

According to the Social Media Update 2013, from Pew Research Center, social networkers have been significantly impacted—psychologically, behaviorally, physically, and socially—be social media tools. A study of adult internet users from the United States found that social network usage has improved social relationships and reduced isolation. For example, the average social networker is half as likely to be socially isolated than the average American. According to the data, nowhere is that shift more apparent than Facebook.

There are several social effects that brands can leverage on Facebook. By understanding varying social behaviors and how Facebook users’ social relationships and support systems work, the more successful brand marketing investments in Facebook will be. Here are four of those social effects that brand managers can leverage.

Trust

The Pew Research Center report found that Facebook users are more trusting than users of any other social network studied (Facebook, Twitter, Instagram, Pinterest, and LinkedIn). Building brand trust is essential to brand growth. Knowing that Facebook audiences tend to be more trusting than other social network audiences should be factored into your marketing decision-making.

Social Ties

The report also found that Facebook users have more close relationships than users of any other social network studied. In other words, there are fewer arms-length relationships on Facebook and more personalized and committed relationships. People are more invested in each other on Facebook, and that closeness can lead to stronger word-of-mouth marketing.

Support

According to the report, Facebook users get more support from their social relationships than users of any other social network studied. This social support can lead directly to powerful brand advocacy and word-of-mouth marketing.

Politics

Facebook users are significantly more politically engaged than most people, which is very important if your brand is tied in anyway to politics (directly or indirectly). The Facebook audience is more likely to be interested in and interact with politically-relevant brand content. Tread carefully in this area, but for some brands, it’s a natural fit.

Of course, you need to analyze your brand and target audience to ensure the content and conversations you publish on Facebook are representative of your brand promise and help you reach your goals. Use these Facebook social nuances to develop better brand marketing initiatives and your results should improve.

Image: Iwan Beijes

Consumers Want Transparent, Honest, Socially Responsible Brands

socially_responsible_brandsEarlier this year, I wrote a post here on the Corporate Eye Blog called 2010 – The Year of Brand Transparency, Honesty and Trust, and now, research is in that supports that prediction. Weakened economies and uncertainty have caused consumers to be less naive in terms of simply believing marketing messages, and the power of the social Web in boosting global communications to new heights of access and information sharing has created a new world where consumer expectations are less accepting and more “prove it to me” than ever before.

According to an article on Brandweek, A new study by Landor Associates, Penn Schoen Berland and Burson-Marsteller reports that, “75% of consumers believe social responsibility is important, and 55% of consumers said they would choose a product that supports a particular cause against similar products that don’t.”

The study also revealed some opportunities for brands to differentiate themselves from the competition not just with cause marketing and socially responsible programs but through education.  Many consumers still don’t understand what “corporate social responsibility” is.  At the same time, many consumers in the aforementioned study revealed they would be willing to pay more for products from a socially responsible company — as much as $10 more.  The opportunity to educate consumers about a socially responsible brand, differentiate it from the competition as such, and attach a premium price to it could be significant.

Furthermore, 50% of 18-34 years olds surveyed in this study claimed that they would be willing to take a pay cut to work for a socially responsible company.  That leads one to believe that socially responsible brand messages could have a bigger effect on brand building and sales in specific, younger demographics.  Again, this is an opportunity to craft effective messages for specific audience segments.

Consumers have changed over the course of the past few years.  Your branding and marketing messages need to change with them.

Connecting Brand Messages with Teens on the Social Web

The teen demographic is a coveted consumer audience that can drive big bucks to a business, and these days, teens spend a lot of time on the social Web.  Whether they’re exchanging messages on Facebook or uploading videos to YouTube, they’re an active, influential group, and brands are desperately trying to connect with them.

In a May 2010 report, myYearbook and Ketchum revealed data about online teen influencers and how brands can engage them on the social Web.  The most interesting results show the sources of information that U.S. teen influencers (i.e., the top 15% most active and engaged myYearbook members) trust the most are as follows:

  • 52% trust friends
  • 13% trust consumer reviews
  • 9% trust adults
  • 5% trust what they hear from ads
  • 5% trust information that comes directly from companies
  • 4% trust celebrities
  • 3% trust bloggers
  • 3% trust news reporters
  • 7% trust other sources

If you try to remember what you were like as a teenager, then these results probably aren’t too surprising.  The key for brands to connect with the teen audience on the social Web is to get teen online influencers to talk about them, recommend them, and share content from them.

Interestingly, most teens who responded to the survey indicated that they prefer to share humorous content with their friends online but prefer straightforward content from companies and brands.  This shouldn’t be that surprising given that 2010 is the year of brand transparency for most consumer demographics.

Considering that the study also found that, “the top 15% of teen social network users are 70% more likely to share purchase decision information with their friends” (via eMarketer), brand managers would be wise to take note of the products teens are most likely to recommend and talk about with their online friends.  As shown in the chart below, entertainment, electronics, new food or beverage, clothing, footwear and sneakers, video games, and makeup and skin care products are the most talked about products among teens who spend time on the social Web.

emarketer_teen_influencers

It’s important to note this doesn’t mean that other products aren’t discussed by teens at all on the social Web, but brands that operate in the channels listed above are missing a big opportunity if they’re not trying to engage teens on the social Web where they’re already spending time.

Brand Confusion Always Benefits the Category Leader

question-mark-confusionEvery marketer should know the theory that a focused brand is usually a stronger brand.  But what happens when the entire category is unfocused and confusing to consumers?

The leader always wins.

Here’s why — the majority of consumers aren’t interested in doing the research to figure out claims, terms, guarantees, and so forth.  If they feel overwhelmed within a category, they’ll usually choose the most well-known brand assuming there must be a reason why it’s the most popular.  The problem is that the leader isn’t always the right choice for every customer.

That’s why it’s essential that you make sure your category is not confusing to consumers, particularly if your brand is not the category leader.  Sure, in so doing you might actually lose some potential customers who realize another brand is better for them, but in the long-run, you’ll do better because consumers who may have settled for the category leader in the midst of confusion can now make an informed choice and choose your brand.  These customers are more likely to be happy, make repeat purchases, become loyal customers, and spread the word about your brand.

The wireless carrier market is a perfect example of a category that is incredibly confusing to consumers.  No one really understands all the fees, terms, and conditions in wireless carrier contracts, so consumers typically choose a category with a brand name they’re more familiar with.  That brand instills more trust in consumers than the lesser-known brands, even if one of those lesser-known brands has a better plan for a specific customer.  It’s just too confusing to compare plans, so consumers settle for one of the leaders.

The same could be said of financial companies that offer mortgages, bank accounts, and other financial products.  Financial contracts are impossible for most consumers to understand, so they stick with leading financial institutions even though a smaller bank might have a better product or option for them.

The lesson to learn is this: if you’re not the category leader, make sure consumers can easily understand the various brands and products offered in the marketplace so they can make informed purchase decisions.  Be honest and you’ll be more successful than if you simply try to persuade consumers to choose your brand without all the facts.

Afterall, 2010 is the year of brand transparency, honesty and trust!

Image: stock.xchng

4 out of 10 Mobile Device Users Have Clicked on Mobile Ads

mobile ad jim beamMobile advertising is still in its infancy, but trends related to mobile device users’ behaviors and willingness to click on ads show that brands are heading in the right direction by focusing part of their marketing budgets on the mobile audience.

Adobe’s 2012 mobile consumer survey, which was conducted by Keynote Services in March (about the same time as the Adobe Digital Advertising study), found that 40% of mobile users have clicked on ads when using their mobile devices.

Looking at the study results a bit closer, 42% of mobile users have clicked through on mobile web ads and 37% have clicked through on ads in mobile apps. Furthermore, men are more likely to click on in-app ads than women (42% vs. 32%).

Keep in mind, the study reports users who have clicked on mobile ads at some point in time. That doesn’t mean that they click on mobile ads frequently or if they’ve even clicked on a mobile ad more than once. Perhaps more important is the finding that the majority of mobile users have never clicked through on a mobile ad at all.

Mobile commerce is also growing according to the Adobe survey. The report found, “people are most comfortable spending in the range of $1-$250 on their mobile devices (just over 40% overall). When shopping via mobile apps, Android tablet users report the highest satisfaction rate at 88%, followed by the iPad at 71%.”

Additional interesting statistics reported in the study are:

  • Facebook is the most popular social networking site for mobile users (88% Facebook vs. 35% Twitter vs. 21% Google+).
  • Younger mobile users (ages 8-29) spend the most time using their mobile devices at 3-5 hours per week on mobile websites (28%) and mobile apps (28%). Senior mobile users (ages 50-64) spend the least time using their mobile devices at less than 1 hour per week on both mobile websites and apps.
  • Android mobile phones are the most popular across all age groups (58% young, 50% middle-aged, 38% senior).
  • Apple’s iPad tablet is the most popular among young (27%) and middle-aged (31%) groups, but the Kindle Fire is most popular among the senior audience.
  • QR codes have been scanned in the past three months by a growing number of young (38%) and middle-aged (40%) mobile users.
  • More people are using location-based mobile services primarily due to consumer incentives offered when people “check in.” Young users (35%) are most likely to check in while seniors (18%) are least likely to do so.

Mobile marketing is the hottest thing for brands in 2012. What is your company doing to market your brand to the mobile audience? Leave a comment and share your thoughts.

Image: Rob Zand