Month: May 2013

9 factors that help anchor your brand price

By Mark Di Somma

Behavioural economists refer to the decision making process brands use to set a price in the minds of consumers, especially when those buyers are dealing with something that is unfamiliar to them, as “anchoring”. Anchoring provides a reference point from which to perceive and negotiate “worth”. Brands looking to set a high value on what they offer anchor highly; brands looking to position themselves as accessible and everyday do the opposite. De Beers anchored the value of their rings around “two months’ salary”. The message to purchasers – in this case, men in a jewellery store (perhaps the ultimate social fish out of water) – was that it will hurt but it’s worth it. At the other end of the value scale, when Coca Cola originally positioned their “delicious, refreshing” drink at 5c a glass, they were sending a clear signal to drinkers that Coke was the affordable beverage everyone could enjoy every day. Both messages were on brand, even though they presented vastly different value propositions. De Beers’ “price” of course takes no reference …

Brand language is volatile

By Mark Di Somma

Linguists will tell you that language is constantly evolving and that a number of factors drive the speed and extent of those changes. Language changes as it is passed on; it adapts to movements in society and technology; it reflects shifts in social attitudes as a result of social, economic and political pressures. In the shorter term, words are volatile. New words are invented to describe new technologies, industries, products and experiences. Changes in the ways that individuals speak also fuel language change. And of course words themselves change meaning – but more importantly they change significance over time. Ideas that once carried weight and urgency have been lost in translation or have been diluted to the point where they no longer command the respect they once had. Equally, words that once sat in the relative back-blocks have been elevated to new levels of relevance and importance. Because of all these factors, words shift in value through useage, through adoption and through being redefined. And these changes are critical to understanding how people will engage …

Now showing on Branding Strategy Insider

By Mark Di Somma

I’ve been a fan of the good people at Branding Strategy Insider for many years. Regular readers will know that I have quoted a number of the site’s contributors on a number of occasions. So I’m absolutely thrilled that they’ve chosen to pick up a number of my posts in recent days and to feature them on the site: Creating a Powerful Brand Manifesto explains how and why every brand must be prepared to nail its colours to a church door; A Brand that Discounts or a Discount Brand examines the fundamental difference between brands that use discounts strategically and those that practice “value” pricing; Brand Advantage and the Reason for Buying looks at why brands need to be able to identify a reason for buying that provides buyers with sufficient incentive to chase a result; Evolve or Transform? 17 Brand Factors examines the difference between what brands must do to evolve and how far brands must be prepared to go to transform. Thoughts, reactions and comments to all of these articles are most welcome.

Nailing your opinions: creating a powerful brand manifesto

By Mark Di Somma

On All Saint’s Day 1517, Martin Luther posted the 95 Theses on the door of Castle Church, sparking, in the eyes of many, what would become the Protestant Reformation. Whether or not he actually did post the Theses (of course there is historical debate) and what that generated are off-topic, but the action of pinning your colours to a statement of beliefs for all the world to see lies at the core of building and articulating an opinionated brand. Brands build trust through behaviours. And behaviours should be based on clear principles. Those principles should bring your purpose to life by laying out the clear psychological guidelines within which your brand operates. They are, when done well, an inspiring précis of your organisation’s worldview. Martin Lindstrom made the brand case for opinion for me in this post several years ago when he wrote: “The fact is that consumers are tiring of perfectly polished brands. Inoffensive brands. … Brands without well-defined opinions will find it increasingly difficult to gain traction in the market place. The challenge …

When projects don’t stack: the fine art of understanding mistakes

By Mark Di Somma

By Mark Di Somma When a project doesn’t meet expectations, I’m fascinated by what gets asked, who does the asking and what, if anything, emerges as the key learning. My view is that we should treat projects that don’t go to plan not so much as wreckages but rather as breakages: they occur when the picture we have in our minds of what will occur shatters, splits or simply falls a different way than we had led ourselves to expect. That can mean something as elemental as having the wrong picture in the first place – or it can come down to developments that pulled things out of alignment. Faced with picking up the pieces, here are 22 questions I use to try and get to the truth, and to move on: 1. What exactly went wrong? (What did not happen?) 2. How “wrong” was it – in the sense that how much did it differ from what we had told ourselves would happen? 3. How realistic was our prediction in the first place? (How …

Don’t just provide reasons to buy. Change the reason for buying.

By Mark Di Somma

It’s tempting when your product all but parallels that of your competitors to be drawn into a meaningless war: a fight for market share that revolves around devaluing (looking to price the other guy out), trivial pursuit (nit-picking on features in a bid to show technical advantage) or overshadowing (spending up large in mainstream media in a bid to raise “awareness”). The problem with chasing competitive preference is that brands spend far too much time focusing on the competitive aspects and far too little insight on identifying where the preferences could lie. All three approaches above are looking to provide consumers with reasons to buy, but while they may change perceptions, they actually do little to change affinity. It’s a distinction that’s easily overlooked. Changing what consumers think of you for now does not automatically translate into a shift in how consumers feel about you – especially in the longer term. They may, as a result of the above actions, see you as offering them more value, they may like the fact that your product …

8 ways to react when the knives come out

By Mark Di Somma

Being non-popular is not the same as being unpopular. Brands that are non-popular are simply not prepared to do whatever it takes to court popular favour. They do their own thing, their own way – and look to attract cult followings via like minds. But brands that have become unpopular have lost likeability. That’s a disturbing development if you’re trying to be liked by as many people as possible. The hardest thing about seeking to be liked is that we all do business today in an environment where criticism is ubiquitous. The ability for anyone with an internet connection to not just hold an opinion but to broadcast that opinion to the world is freedom of speech on a good day and freedom to abuse on another day. At a time when it’s easier than ever for others to get the knives out, the problem it seems to me has shifted for those on the receiving end. The dilemma these days is less about what do the critics think and rather, which criticisms should you …

Evolution or transformation? 17 key brand factors

By Mark Di Somma

No business these days can just sit pretty. But the extent and nature of changes confuses many. Brands evolve. Or die. But they must also retain something of what consumers know. Or they fade. So which is more important? And how should a brand act, when? I get asked about this a lot. So here are my takes on what must stay and what can go (sometimes): Keep: 1. Your good name (in every sense) – it’s the thing people know you by. Unless of course you need to re-engineer your reputation or your old name doesn’t fit what you do anymore. 2. Your purpose – the ways you intend to change the world should remain an inspiring constant for staff and customers (providing it’s inspiring to start with, of course) 3. Your values – only change them if you’re going to make them more challenging 4. Your promises – trust is the basis for any brand’s success. Without that, you’re nothing. 5. Your principles – in today’s transparent markets, transgressions will be discovered. It’s …