Commonalities among Basic Brand-Building Approaches

In this article I will talk about several well-known approaches to brand-building and what they all have in common.

Aaker: Brand Identity Model

Aaker’s approach is probably one of the most cited theories of brand-building.  It is based on the notion that a brand consists of several layers, where the brand essence helps to set the brand apart from the competitors and ties together the elements of its core and extended identity (in later works, Aaker noted that brand essence can be substituted by the core identity). The extended identity may include elements from any of the following categories: Product, Organization, Person, Symbol. The system of brand identity also includes, according to Aaker, value proposition as well as brand credibility and the relationship between brand and customer.

aaker-brand-leadership

Kapferer: Brand-Identity Prism

Kapferer sees brand as a system consisting of six parts. Some of them consider the brand from the sender’s point of view and some of them demonstrate the recipient’s view.

  • Physique – how the brand looks (logo, color, etc.) and what important physical attributes the branded product offers.
  • Personality – a unique brand personality, which can be connected to a real person (brand ambassador) or express the qualities of an imaginary person. Personifying the brand helps to build a brand-consumer relationship at a later stage.
  • Relationship – how the consumer sees its relationship to the brand.
  • Culture – often a broad cluster of associations, e.g. a certain lifestyle or the country of origin, if this is part of the brand communication strategy.
  • Reflection – how the brand sees its typical consumer or its target customer.
  • Self-image – how the target customers see themselves or what qualities of their character (real or desirable) they want to express through the brand usage.

You can see here some examples of brand identity prism: Apple, Ralph Lauren, Nike.

kapferer-brand-identity-prism

Keller: CBBE model or Brand Pyramid

At the bottom of the CBBE model lies the definition of brand identity which ensures brand recognition by the target user. This is followed by brand meaning, i.e. the associations the user has with the brand. Brand meaning is divided into performance (satisfaction of functional needs) and imagery (satisfaction of psychological needs). The next level is the reaction to the brand, i.e. positive reactions to the brand in the prospective buyer, which are, in turn, divided into judgments about the brand and emotions (feelings) associated with the brand. At the top of the pyramid is the relationship between the customer and the brand, which is based, among other things, on how much the customer identifies with the brand.

The upper parts of the pyramid cannot be reached until the lower parts are worked out. For example, without constructing a brand identity, it is impossible to evoke the right brand associations.

keller-brand-pyramid

Similarities among branding approaches

By reflecting on these three branding models, we can find the following commonalities:

  • Brand-building is viewed as multi-step, multi-layer process
  • The first step is always the creation of “physical” brand identity, such as brand name, logo, slogan and assigning colors to the brand.
  • This is followed by creating and communicating a set of positive associations with the brand and the product/service, something that makes it unique. In other words, this is the USP of the brand.
  • The next step is “emotionalizing” the brand, e.g. by connecting it to a certain type of personality or to a certain type of lifestyle. Strong brands event succeed in creating a whole “brand world”.
  • The final step in brand-building is nurturing the relationship between the brand and the target customer, which leads to higher brand loyalty.

The drawback of all of these theories lies in the fact that they fail to explain how brand-building takes place through different marketing channels. This is the area where more empirical research is needed.

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Website UX/UI Testing Parameters Part II

In this post, I will discuss compatibility, performance and security testing as important parameters of UX website testing.

In the previous post, I covered the first group of website testing parameters. In this article, I will discuss compatibility, performance and security testing.

website testing

  • Check how your website is rendered through different browsers and if the website functionality is maintained. You surely do not need to cover all existing browsers, however, the website should be compatible with the essential browsers and browser versions. In case you have visitor statistics from the past, you will know which browsers your visitors use (this may differ e.g. depending on the business you are in). Otherwise, you can use available statistics, such as by W3 (https://www.w3counter.com/globalstats.php). By the way, instead of installing all the browsers, you can just turn to one of browser testing tools (Browser Sandbox, Ghostlab, etc.)
  • Device compatibility at a higher level means mobile-friendly layout and functionality. At a more granular level, it means compatibility with most often used devices, in particular with their screen sizes and resolutions.
  • Statistics on operating systems (device platforms) can also be found in your previous web analytics reports, or, in the absence of those, on the Web (here you can also refer to W3 website).
  • The last point on compatibility refers to the most common OS, browser and device combinations. Also, here you can use professional testing tools without having to buy hundreds of devices.
  • Load testing examines how a site would perform at peak loads (extremely high user activity), stress testing may stretch the site beyond its limits or well beyond an expected peak load.
  • Take preventive measures in order for a website crash not to happen  (use a reliable hosting company, cautiously make code changes)  or to restore your website quickly in case it does crash (making a backup).
  • Website speed greatly influences not only user experience but also how your website is ranked in the search engines. For determining the site speed you can again turn to Google Search Console, but there are a lot of other tools out there.
  • Login security guarantees that only logged-in users can view certain areas of your site, but also that each user may only use their unique username and password.
  • Form validation means that only valid information can be entered. It is essential that your website’s code cannot be manipulated through form fields.
  • Internal website files should not be available to external viewers unless you want some of them to be accessible (such as .pdf files for download). Also, be careful about any transactions involving file uploads to prevent visitors from uploading executable files.
  • SSL enables secure file transfer between a server and a client and is a crucial feature of any up-to-date website. Using SSL causes that the links in the browser appear as https://. In case SSL is not present, website visitors will get a warning from most browsers.
  • This is by no means a full list of measures to protect your website from hackers’ attacks, so check logs of important transactions and error messages to identify any security breach attempts. Abnormal user behavior can sometimes be identified through your web analytics data.

Using the framework shown above, you will be able to test the most important UX/UI parameters of your website before or just after it goes live.

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A Simple Approach to Branding Strategy Based on Leadership Brands Model

This model is an extension of Aaker’s model for leadership brands, mentioned in his book “Brand Leadership” (by Joachimsthaler & Aaker, 2001).

Leadership brand types

First, let us define leadership brands. A leadership brand inspires employees by setting high expectation levels. It also provides additional benefits to consumers – both emotional (empowerment through brand association) and functional (high quality standards). In the table below, I will demonstrate how leadership brand types position themselves and what their USPs are generally based on.

Click here to view this table as an image file. 

Type of leadership brands What the brands do Brand message Reason why for the consumer Examples
Power brands Own (or claim) a category benefit that is functional and in constant improvement; the product itself is at the core of the strategy. It works better I want to get the job done Gillette (“Better Blades = More Outstanding Shaves”)
Explorer brands Use people’s desire to grow and explore their potential, focus not on the product but on the context of use. It gives you new possibilities I want to improve and grow Adidas (“Through sport, we have the power to change live​s”)
Icon brands Symbolize some cultural aspect that customers share emotionally, create a “brand world”. Join our journey I want to be a part of it

Disneyland Paris (“A magical experience”)

Identity brands Build a connection through user imagery, helping
people express who they are, often strongly personified brands.
This is us I want to be like you Birkenstock (nature-oriented, conscious lifestyle, healthy -“Consciously healthy shoes)
branding-strategy-leadership
Leadership brands types

Branding Strategy Examples

Here is how you can use this model for building a branding strategy.

  1. Analyze your competitors. Is there a predominant strategy they are using? A lot of times, companies go by the “industry standard”, thus selecting the strategy common in their niche.
  2. Investigate if you can use another strategy to differentiate from your competitors (provided you have the resources for that).
  3. Do market research (e.g. focus groups) to verify if your strategy resonates with the target customer.
  4. Launch the brand, monitor and evaluate the results.

Let us take an example of a B2B market for industrial cooking ovens. The majority of producers and distributors base their branding strategy on the “power brands” method, featuring qualities of their products and what they deliver.

A somewhat fresh approach would be to use “explorer brands” strategy. For example, talking about how the food industry professionals can benefit and produce better quality food for the end consumer. For example, Baxter markets its ovens by stressing how the ovens can be used to produce the desired result: “We understand that advanced technology is there for one thing: to help you create an authentic experience for your customers”.

An even more daring strategy would be to use “icon brands” strategy.  One of the leading brands in this segment, Rational, is deploying this strategy. Although it features the products on its website, it rather focuses on being passionate about food production and experiencing the world of professional cooking. MAM brand (pizza ovens) clearly uses the Italian origin of its brand as its USP, featuring Italian lifestyle and cooking and stating “Italian product. Italian technology. Italian taste” on its website.

It is also thinkable to come up with identity brands strategy in this segment (e.g. personifying the brand or centralizing the brand around the personality of its founder or a brand ambassador). For example, BULL Outdoor Kitchens uses the logo featuring a bull, thus personifying its brand “Don’t underestimate the power of the BULL”.  This makes the brand stand out from the competition and creates a strong image in the minds of customers.

As follows from these examples, you can use the leadership brand model to create or to optimize your branding strategy, independently of the market segment you are operating in.

 

what is a uspIf you have any questions about branding or building a brand, do not hesitate to contact me!

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PR in a Nutshell

Public Relations (PR) is one of the most important marketing instruments for creating a positive company image. However, the message you communicate will depend on the stakeholder group.

Below you will find a short table to help you orientate.

Stakeholders PR Message
Clients Buy only our products
Shareholders We work for you
Investors We won’t deceive you
Banks We pay our debts
Partners We are reliable partners
Employees It is a joy to work for us
Competitors We are stronger than you
The state We are predictable and follow the rules
People living close to our production plants We don’t exist

 

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In Search of a USP: the Definitive Guide to Creating a Strong Unique Selling Proposition

As I have mentioned in my previous posts on marketing strategy, one of the most important things you do in marketing is researching, formulating and communicating your USP – unique selling proposition (sometimes called a unique selling point).

what is a usp

What is a USP?

USP in marketing is a short phrase that highlights the main benefit for your customer, is unique to your company or product and makes the customers choose you over the competition. USP may, but does not have to, be identical to your company slogan.  USP is directed at the customer and is the core of the marketing communication strategy.

The USP can be formulated for your company, product, service or brand. It includes one or maximum two points and is never a list.

usp-components

There are different approaches to finding your marketing USP, below I will describe three most common approaches and provide you with examples. I will also outline some typical mistakes.

customer usp

Customer-based approach

    The first approach logically focuses on customers and what they perceive as valuable.
  • Who are your customers?

This includes correctly segmenting the market you are in and selecting the appropriate target segments. Do not try to position your product for too many segments at once, focus is the key to success in marketing.

  • What is important to them?

Try putting yourself into your customer’s shoes. A good exercise for this is creating buyer personas, as this helps to understand the target customer better and even develop more empathy towards them.

  • What wants and needs do your customers have?

An obvious way of finding out what represents value to your customers is asking them about their wants and needs (i.e. doing a marketing survey). However, this will be only be the top of the iceberg. Generally, when formulating your USP it is better to go a level deeper and consider more hidden (secret) needs.

For example, the Rituals brand is built around the need for relaxation and escaping from stress instead of a very basic need of keeping one’s body clean.

  • How do they make buying decisions?

According to neuromarketing, people are often driven by subconscious stimuli that have little to do with their rational decisions. The rule of thumb is: the lower is the price, the less rational is the buying decision. (Think of candy and chocolate bars at the cash register).

In case of larger sums, customers tend to rationalize the decisions more, sometimes taking days or weeks to compare price and quality of similar products. However, what is considered a high price buy will largely depend on the income or the psychometric qualities of your target group. Besides, even rational decisions can be influenced by marketing tools.

  • Why do they buy your product?

If you already have a product that enjoys customer acceptance, make it part of your USP.  If your product solves a particular customer problem, this has obvious value to them. For example, the USP of Walmart is “Every day low prices on a broad assortment – anytime, anywhere.” The reason why customers go to Walmart is that they are able to find a large range of products at guaranteed low prices.  In addition, Walmart in the US offers a good store coverage with over 5,000 stores. It also offers its products online.

  • How do targeted segments differ from one another?

Sometimes it is not possible to communicate a USP that will work across all customer segments. Depending on how different the segments are, you might need to come up with a different Unique Sales Proposition for each segment.

usp competition

Competition-based approach

Another popular strategy for formulating your USP is selecting something that makes you stand apart from your competitors.

  • Who are your competitors?

To understand your competitors, you should be aware of the market you are in. You can analyze both your direct and indirect competition.

  • How are you different from the competitors?

When doing competitor analysis, you can pay attention to the following points:

– The range of products and services they offer

– The target customer segments

– The marketing channels and marketing instruments they use

– What unique value they try to communicate to customers through their marketing

Having looked at several most prominent competitors, you will find some key differences between you and the competitors (whether real or perceived).

  • What are you doing or can you do better than your competitors?

During a thorough competitor analysis, you will find out what they are currently doing better than you and where you can possibly learn from them (benchmarking).

During your analysis you are also likely to find some “weak spots” of your competitors. For this, you can use, for example, reviews and customer opinions. Dig deeper to find if this is something that you are already doing better (or can do better).

  • Why should customers choose you over the competition?

When formulating your USP based on Competition approach, select something that both makes you stand apart from your competitors and is relatively difficult for them to imitate. This will eventually come back to customers because your USP should induce them to choose you over the competition.

internal values usp

Intrinsic approach

The next approach focuses on your company and the unique capabilities you have.

  • What do you do?

Start with listing all products and services you currently offer or would like to offer in the near future.  The list may get quite long, but this is just the first step.

  • What do you do especially well?

After you have a full list of what you could possibly do, select the areas where you really feel comfortable and possess a high level of expertise. Ideally, this should not be a kind of tacit knowledge that only one person has but something that can be shared and transferred between team members.

  • How is that valuable?

Analyze, what products or services are already popular within your target audience and what makes them sell so well.

  • What is difficult to copy?

Your USP should not only reflect what you can do especially well but also set you apart from competitors. The unique quality of your product can be real (e.g. a patented recipe or a geographic origin of a product) or perceived (a strong brand). For example, part of Chanel’s USP (female liberation and wearable haute couture) is the unique personality of its founder, Gabrielle Chanel.

  • What don’t you do?

A successful brand positioning always includes a target segment. There is nothing more dangerous for your brand and your USP than trying to serve too many market segments. This dilutes your marketing message and leads to waste coverage during any marketing campaign.

Compare these USPs by two different IT companies: “Creating value for our customers with our expertise” vs “Innovative IT-solutions for Retail and Logistics”.  I think that the second one offers much more clarity and is more attractive to their target customers.

  • What is your company mission?

Mission is basically a reason why a company exists. This is the value it brings externally (customers & stakeholders) and internally (employees & shareholders) on a day-to-day basis.

  • What is your vision?

As opposed to mission, vision is future-oriented. It is a description of an “ideal self” of a company or where it wants to be in the future. A vision should be (@robert.lueders):

– Easy to remember

– Clear to understand

– Future-oriented

– Inspiring

– Challenging

– Oriented towards your primary goal

Sometimes, mission & vision statements resemble the USP or even replace it in the company communication. Although they can be interrelated, the essential difference between them is that mission and vision are directed internally reflecting company philosophy and the way things are done.

The USP, on the other hand is what the company wants to communicate externally toward the target customer. Besides, if a company offers several products geared towards different customer groups, it may have several USPs, however, it will only have one mission and one vision statements.

usp ideas

Some USP ideas

Below I will list some ideas that can be used for creating your USP:

  • Exceptionally large product variety
  • Offering exclusive products symbolizing status and wealth
  • Providing high standards of security or reliability
  • The lowest price in the given segment or for the given type of product
  • A complex product or technology made easy to use
  • Saving time for your customer
  • Doing good by selling the product (e.g. fair trade)
  • Providing flexibility and customized solutions
  • Making the process of utilizing the product or the service enjoyable
  • Expertise for a given (niche) topic
  • Unique company or product history
  • Local company with high awareness of the local market
mistakes usp

Mistakes in USP

And last, but not least, I will list some typical mistakes in formulating your USP:

  • Ignoring your present state (how you position yourself now)

Choosing a USP that is too different from your present market positioning you will cause confusion and diminish the credibility of the USP.

  • Being too generic (selling everything to everyone)

If someone completely unfamiliar with your company hears your USP, they should get an idea of a) what you do b) who your customers are. Thus, avoid too generic USPs such as “improving your life”.

  • Not considering the customer

Independently of what approach to creating a USP you will choose, you should by no means disregard the customers and their needs.

  • Including too many benefits into a USP

A USP should not include more than 1-2 benefits. These are the key points you focus on, the ones that stand for the highest customer value. Do not dilute your message by including too many points into your unique selling proposition.

  • Not being unique (different from competition)

In order to cut through the clutter, you should try to avoid “standard” phrases and formulate your USP in a more unique or creative way. E.g. the Red Bull energy drink uses the phrase “Gives you Wiiings”

  • Ignoring the market trends

Sometimes a USP needs to be changed or re-formulated over time due to the changing market trends, new technology, changes in the tastes of your target audience or in case of a major event that affects your industry.  For example, due to the increasing importance of environment protection, some brands started to use USPs highlighting the sustainability of their products.

  • Not being truthful

When working on your USP, always make sure that it connects to reality. Negative customer opinions can spread really fast nowadays, so it is essential that the benefit you claim really exists.

As a final thought, I would like, once again, to hightlight the importance of selecting the right USP that reflects your internal expertise, presents value to your customer and sets you apart from competition.

 

 

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