MGMT 684: Organizational and Brand Drivers

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MGMT 684 Organizational and Brand Drivers

• September 27th, 2004
• Andrew Perkins

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Schedule for Today

• Brand Audit The bigger picture
• Organizational and Brand Drivers
• For Monday
• ZMET The Zaltman Metaphor Elicitation Technique

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Where should you be with the brand audit?

• Part 1 Brand Portfolio (Portfolio, hierarchy,
  competitive analysis, product and positioning)
  Due Oct 19th
• Your firms understanding of the Brand
• Part 2 Proposed Marketing Research
• Research to find out how your customers and
  target market perceive your Brand
• Change Due Date Oct 12th
• Ill turn these around in about 2-3 days

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Where should you be with the brand audit?

• Part 3 Organizational and Brand Drivers (Due
  with final Brand Audit)
• This information will be integrated with your
  Brand portfolio
• Do the brands in your portfolio match up with
  your Organizational and Brand drivers?
• Do your customers see the connection between your
  drivers and their perception of your Brand?
• Do your Brand Conveyers maximize potential
  message quality?

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Integrated Branding Model
Marketing Communications
Principle Personality Associations
Brand Conveyers
Brand Drivers
Organization Drivers
Mission Values Story
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The Organization drivers

• Determine the form and direction the brand will
  take the genetic code
• Establish the brand promise that we talked about
  last time
• They tell everyone (INSIDE and OUTSIDE) what our
  company strengths are
• How is our business defined?
• What concepts do we cherish?
• How did we get this way?

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Organization Drivers

• Mission
• Outlines what business a company is in
• Drives all corporate Brand development
• Values
• The beliefs that your company prizes above all
  else
• Story
• The way to convey meaning and context for your
  customers

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Mission

• Three questions to determine an effective mission
  statement
• Does it help you get up in the morning?
• Is it easy to understand?
• Can you remember it?

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Mission

• The mission statement describes what your
  business does
• Provides boundaries for all brands
• The mission communicates to everyone (inside and
  outside your firm) what you do, as well as what
  you do not

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Criteria for success

• Forward looking
• It is not a vision, as the vision is defined by
  the story
• Clarity
• Focuses, motivates, and defines future directions
• Brevity
• Can you remember it?
• The most basic, most foundational aspects of the
  business
• What are you trying to do for your customers?

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Some mission statements

• To create software for the personal computer
  that empowers and enriches people in the
  workplace, at school and at home

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Another mission statement

• We create, develop and manufacture the
  industrys most advanced information
  technologies, including computer systems,
  software, networking systems, storage devices,
  and microelectronics. We have two fundamental
  missions

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Another mission statement (cont)

• We strive to lead in the creation, development
  and manufacture of the most advanced information
  technologies
• We translate advanced technologies into value for
  our customers as the worlds largest information
  services company. Our professionals worldwide
  provide expertise within specific industries,
  consulting services, systems integration and
  solution development and technical support

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Mission statement fix

• We create, develop manufacture and support the
  industrys most advanced information
  technologies, including computer systems,
  software, networking systems, storage devices,
  and microelectronics

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Mission review process

• When should you change your mission?
• You should review your mission once a year
• If your mission still accurately defines the
  marketplace and accounts for new directions,
  leave it alone
• When should a mission be reviewed?
• When new trends impact our markets
• When there is concern about whether the products
  ands services that we are developing fall within
  our established mission

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Mission review process

• What are the criteria for successful changes in a
  firm (generally)?
• Upper management buy-in
• We will look at this during our last session
• The process essentially goes
• Initial input from company opinion leaders
• Each submission is analyzed and reconstructed
  until there is unanimous buy-in
• This does not mean that it is everyones optimal
  choice

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Values

• Beliefs that a company prize above all else
• Drive company actions, ensure continuity of
  corporate culture and help employees live the
  brand
• A value is something that a company holds onto,
  even at the expense of short-term profitability,
  and will not be given up at almost any cost

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Differences between company values and actions

• Sow employee confusion and dissention
• Empowered employees that are not really
  empowered
• Increase employee turnover and dissatisfaction
• Confuse and increase negative affect with
  customers
• Differences are easily recognized and stored
  components of memory

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Question

• What is Nordstroms defining value?
• Service
• Take anything back, no questions asked
• Tell me some stories about Nordstroms
• Ahh, yes, but other retailers have the same sort
  of service, correct?
• What is the difference?

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Do values evolve with business?

• Yes
• New values may be added as a business matures
• And no
• However, the original values should never change
• How many values do we need?
• Should be a very short list
• Some values can have multiple, related meanings

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Example - Nike

• Performance
• On the track, in the marketplace
• Authenticity
• Commitment
• To our endorsed athletes, to our customers, to
  our shareholders
• Innovation
• In products, and in advertising?
• Teamwork
• In the labs, on the field

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Story

• The story conveys context and meaning for the
  activities of the company
• Inspire and provide insight
• Guide social, moral, work, and ethical actions
• Keep the collective memories of the firm
• The story answers a number of questions

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What questions?

• Who are we?
• Where did we come from?
• Where are we going?
• What are we doing here?
• The story shows the organization and brand
  drivers in action

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What are the best stories?

• Heroic, against all odds, leading to greatness
• Overcoming of obstacles
• Reinforce the beliefs that got us to where we are
  today
• Current employees should see their beliefs about
  the company reflected in the story
• Customers should see their beliefs in the company
  reflected in the story

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How do we get the best story?

• Criteria
• Passion
• Values
• Vision
• Audience reaction
• Avoid
• Industry speak and jargon
• Passive voice

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How do we get our story?

• Get employees from all parts of the company to
  tell them the company story
• Take these many renditions and boil them down to
  one
• Take this version and make sure that it fits with
  your values and mission
• We will talk more about this in the last class

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The Elevator Story

• Boils the story down to
• What you do
• Why you are different
• Should be able to say it when moving 5 floors in
  an elevator
• Try to create an elevator story for your brand

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Brand Drivers - Principle

• PP argue that the Brand Principle is the
  foundation for differentiating the Brand in all
  areas
• If you mission is what you do, then your
  principle is your unique approach to what you do
• The principle is the foundation for all actions
  and messages

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Brand Drivers - Principle

• Uncouples product, service, and brand message
  development from individuals and bases it on the
  brand promise the intersection of your
  companys strengths and the values of your
  customers
• Discussion point how are these elements
  developed in companies that you have worked for?

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Brand Drivers - Principle

• Multiple Brands (potentially) require multiple
  principles
• Dockers vs. Levis 501 what are each of these
  principles?
• How do each of these brands connect with the
  Umbrella brand?

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Brand Drivers - Principle

• What does the Brand Principle look like?
• Short, just a few words
• Volvo Safety
• Levis Quality, comfortable clothes
• It is NOT a slogan or a tag line
• Not usually discussed in a customer context
• DRIVES messaging, but is not necessarily a
  message
• Not to specific, not to broad

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Criteria for an effective principle

• True
• Useful for focusing actions
• Close to the buying decision
• Emotional resonance
• Not to narrow or broad
• Ownability, clarity, brevity
• 3M example

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Positioning the Principle

• What currently distinguishes you in your
  customers, prospects, and other audiences mind
  from your competition
• 4B Format for positioning
• Business
• Benefit
• Better
• Brand

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Example 3M

• 3m
• Business Product improvement and creation
• Benefit Better product solutions than the
  competition
• Better RD, corporate culture facilitates
  innovation
• BrandInnovative

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Personalities and Associations

• Personality
• An emotional compact with your customers
• Complements cognitive information about your
  Brand (product attributes, experience, messages)
• We attribute personality traits to inanimate
  objects
• Celebrity information can be associated with the
  brand (McCracken)
• Gender, age, class (Levy)
• Via product attribute associations, product class
  beliefs, symbol or logo (Batra et al)

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What is Brand Personality

• According to Aaker, Brand Personality may be
  broken down into 5 components
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
• This is not made clear in PL

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How could you get an initial impression of your
Brand Personality?

• Create the Brand Personality Task that Aaker
  describes
• How well does Trait describe Brand?
• 1 2 3 4 5 6 7
• Not very Extremely
• Well Well

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The Self-Brand connection

• Note that both Aaker and Kline et al. mention
  that brands (products) reflect both current and
  inspirational components of the Self-concept
• Emotional associations with the self-concept are
  very strong
• Self-concept is the most complex, solid
  component of SKS in memory
• Emotion is a shortcut around cognitive
  processing

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Criteria for Personality

• Does the personality reflect the brand?
• Will the personality be liked?
• Does it meet needs for customers self-expression?
• Consistent with expectations of the brand?
• Define the spirit with which you approach future
  actions?

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Associations

• Mental shortcut to Brand promise
• Or, activates related associations in memory
• Remember the SKS?
• PP focus on object associations
• Songs
• Colors
• Experience

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Color Test

• As these color swatches come up, note what brand
  they represent

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How do we build associations?

• Must tie to principle or personality
• Tie to company or product
• Used for the life of the brand
• More on Oct 4 (and for the rest of the class?)

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Brand and Org drivers - Summary

• Organizational Drivers
• Mission where to build value
• Values give you the foundation to build on
• Story gives you a context for the value you
  bring
• Brand Drivers - Principle, personality,
  associations
• DRIVE HOME THE BRAND PROMISE REVEALED IN THE
  ORGANIZATIONAL DRIVERS