Missed the SXSW? No big deal!
As most of us had no chance to attend the SXSW, here is a nice selection of presentations that have been held.
As most of us had no chance to attend the SXSW, here is a nice selection of presentations that have been held.
This post refers to a blog post by We are Social, a digital marketing and social media agency based in London.
The reason this post caught my attention (I actually found it via Twitter), was a statement in the very beginning of the post which I am citing here:
„Europe is ahead of the US in terms of the consumer usage of social media, and yet little attention is often given to the nuances of what is on one hand is the world’s largest economy and on the other a collection of 48 countries with very different cultures.
Find out why the blogging scene in Paris is 2 years ahead of the US, the Brits are all a Twitter, the Dutch prefer Hyves to Facebook and the Germans will take any chance to give brands a hostile reception in social media.“
This statement by Robin Grant came as a surprise to me. Usually the latest marketing trends do come from the US, not good old Europe. And please not that I am saying marketing and not social media. The latter ist a branch of marketing, not a separate phenomenon. Anyways, I was fairly surprised to see that obviously something may have changed. But has it really? I do have some doubts that this is really true and that it can be stated that easily. German Facebook users may be the most active, England may be in the hand of Twitter but still the companies behind it are from the US. Also, can you name a Head of Social Media in the home of cars, Germany? We do not have a Scott Monty at BMW or Daimler or Audi. And even if we have someone in a similar position, he or she is not yet living up to his US counterparts. Now je ne connais the French blogosphere but I can hardly imagine les Francais are so much more active than the Americans.
I don’t want to take a definite position on this issue and I will leave you with some very nice presentations covering the European face of Socia Media. Please decide for yourself who is ahead in Social Media. Or if maybe it is not about being ahead but perhaps about employing Social Media more profitable…
Strong brands offer us a lot. We in return pay a premium price. But aside from hard facts such as superior product quality, better service and warranty they also provide us with orientation, reduction of uncertainty, trust, the feeling of belonging to a certain group and other much more subtle things. This is what we pay for and what we deserve.
In return for the high price we expect certain values a brand has come to represent: sportiness with BMW, innovativeness and design with Apple, tradition, expertise and superior quality with a Glashütte watch. I expect you at this point to say „Stop! That’s all premium brands you’re talking!” Well, not necessarily. Volkswagen is traditionally not a premium brand and still there are certain values such as reliability or quality that are associated with it. Mc Donald’s is also no premium brand but would also well fit the list.
In the following paragraphs I picked out three things we expect from strong brands: consistency, service, and change when needed.
Consistency
What most brands have in common is consistency.
We do not want them to fundamentally change their business model, their target group or elementary core values. This would confuse us. A Bmw panel van? McDonald’s selling local food? Chateauneuf du Pape sold at discounters? These things are inconsistent with what we have learned about brands and the image we have in our minds. And thus they confuse us and they cause damage to the carefully grown brand identity.
Service
Another important thing we expect from strong brands is excellent service.
Personal service, listening to our problems, understanding what troubles us and working hard to satisfy our wishes and desires. We want to feel the assurance that we or rather every single one of us matters. In total, we expect a degree of service that trade brands cannot provide (financially). The markup we are willing to pay does include this extra service -when we need it.
Change when needed
The final of the three expectations towards a brand which I am dealing with today is the ability to change when needed.
This might at first sound contrary to the consistency point. Time changes and so brands have to respond to changing market situation and technological developments. One example would be the increasing time we spend online. Brands (not necessarily all of them) need to follow their customers just like predators follow their prey. The key challenge is to adapt while still being consistent. That is also why I argue that whatever viral or social media marketing actions a brand takes – it always has to be in line with the overall marketing and brand strategy.
Case
I just recently had trouble with a brand new pair of really nice Timberland Splitrock boots. After only 1,5 months both laces were close to tearing which might have been caused by a too sharp eylet. I emailed Timberland USA and informed them about my troubles. It took only one day and I had a friendly email in which they provided me with the contact details to Timberland Deutschland. In the meantime I had also twittered about the issue, wondering if my tweets maybe would be heard (Social Media Monitoring). After two days I received an email from Munich, in which a customer service agent excused for the quality issue and promised to send me a pair of similar hopefully more durable laces. That was two days ago. Today I received a small package by mail with two pairs of laces similar in color to the original ones. Great work, Timberland! Checking through my personal Twitter account I saw that Timberland Customer Service is now also one of my followers. I do not know about their internal processes, but from what I experienced, I can say that they are obviously doing things right. They created a strong global brand, with loyal customers all over the world. They listen to their customers’ troubles and do their best to maintain our loyalty. The result: I feel important, taken care of, appreciated. I pay a premium price for the product, but also get a lot more than just a simple pair of shoes…
Update: Timberland Customer Service responded via Twitter:
Just the other day I read a statement by David Hughes, director of e-commerce at Marks & Spencer: „..the customer trusts the reviews more than the brand.“ Wow what a statement if you think about it. But what does that mean for brands? Are they becoming less important?
Brands usually serve as lighthouses. In the jungle of oversupply, businesses have to invest greatly into marketing and branding in order to make their products stand out from the rest. Usually it was like this: if your brand was not strong enough your quality was sometimes of no importance to the affluent consumer. The price tag provided the orientation. High price equals high quality. Low price must be low quality. Although strong trade brands by Aldi, WalMart, etc proved the opposite this was still a truism for many consumers.
Social media now further changes the game. A cheap DVD player may get better and more user reviews than the expensive alternative. Thus there seem to be new opportunities for economic brands: if their quality is convincing, their product features meet the consumer’s expectation and the consumer really has the impression to have made a good deal you are all set to be successful. This list sound familiar? Indeed: these are the ingredients for strong word-of-mouth. Why talk about a 200 dollar dvd player that is none the better than any other model? But if there is one model out there that offers the same features and decent quality for 100 dollars – that is something your friends might be interested in.
In the overall look, this is one manifestation of the new democracy provided by social media. You brands out there better prepare! You can no longer hide behind your brand image! Bad quality will be unveiled faster than you think with more reach than you might expect.
Our comment on the recent article published on mashable.com
You cannot repeat it often enough!
Social Media does have great poential, no doubt.
It enables companies to reduce the ever growing distance between them and their consumers, between producer and buyer, takes them closer to their target groups and provides answers to the increasing desire for personalized products, or to sum it up: unpredictable consumer behavior.
But blindly investing into this miraculous segment may also cause harm. Not only in terms of an investment.
Social media is, as the name implies a social sometimes even personal phenomenon. No impressions are stronger than personal ones. But if whatever you do or say is not credible, the strength of the personal, social contact turns into the opposite of what had been desired: ignorance, distrust, and negative word of mouth. It is like selling insurance contracts to family members in order to fulfill goals set by an insurance company you work for. This will ruin social relationships forever. The same goes for companies who half-heartedly use Web 2.0 to boost profits .
Not every company fits into this personal sphere. And not everybody wants to be addressed this way. You cannot push a brand into the personal sphere of a consumer. Especially not if a company or brand does not possess the required desirability.
Consumers may be „victims“ or information overload, unlimited product varieties, etc but they still have control over their private sphere. This has to be respected at all time. They decide what brands they „pull“ into this sphere.
Usually it is brands they trust, have known for quite a time, that accompanied them during their life, brands they long have been admiring, or they use to transform features of the brand onto themselves.
Using modern ways of marketing will bring you much more customers you intend. You don’t believe? Have you already seen the new „commercial“ of HP?
Ford goes digital!
Ford Motor Co. this year will spend 25% of its marketing dollars on digital media, more than twice the amount spent by the industry.
Read more at BusinessWeek The Auto Beat
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