Tag: potential

Brand – Key Factor For Customers When Choosing a Wireless Service

Brand and brand name is the key factor for customer when choosing a wireless service. What’s interesting in the J.D. Power and Associates 2006 Wireless Retail Sales Satisfaction StudySM whose Volume 2 was released today – is that the customers are increasingly influenced by the handset when selecting a wireless service.

While the summed importance of branding (of the carrier and the phone) in purchasing decision seems to remain constant at a total of 59% it is worth noticing that 19 percent of customers cite the type or brand of cell phone as a key factor during the initial process of selecting a wireless service, up from 11 percent in 2004. While the brand of wireless provider is still the most popular reason influencing the initial selection process, it has decreased significantly in importance, down 8 percentage points from 2004 to 40 percent in 2006.
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New Global Brand Valuation Study

Despite its dominance, Interbrand/BusinessWeek global brand league table has inherent weaknesses. This is not news to anyone who works in branding: most marketers accept that the Top 100 is an imprecise but important approximation of global brand equity.

But all this is about to change. Next month global agency group WPP will launch an alternative brand valuation league table that will directly challenge Interbrand’s calculations. The system has been masterminded by chief research officer Andy Farr and his marketing quant jocks at Millward Brown Optimor (MBO).

Here are some insights into this soon to be revealed WPP study:

  • WPP’s annual Brandz survey questions more than 650,000 consumers and professionals in 31 countries.
  • The results are analysed to create a combined diagnostic and predictive tool that evaluates the strength and growth potential of brands.
  • Respondents are asked to compare more than 21,000 brands in 300 categories from sectors including long purchase-cycle brands, FMCG, retail and e-commerce and services.
  • Each respondent is asked to evaluate brands in a competitive context from a category they shop in.
  • Their responses generate scores for levels of bonding with a brand, its advantage over rival brands, brand performance and relevance to consumer needs.
  • Consumer loyalty and claimed purchasing data are used to generate a ‘brand voltage’ score, indicating the brand’s potential.

More here

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Key Branding Trends in 2006

Robert Passikoff is president/founder of Brand Keys, which has published the Customer Loyalty Index of leading companies in 26 product and service categories since 1996., has an interesting article over at Chief Marketer about what he calls the five key trends that will determine the difference between success and failure for brands and marketers for 2006:

1. An emphasis on “engagement.”
Inserting itself between traditional marketing activities and an increasing demand for return on investment assessments, engagement will become the Holy Grail for marketers and advertisers. Defined as the outcome of ad and marketing activities that substantively increases a brand’s strength in the eyes of the consumers, engagement will be used more and more to allocate marketing budgets. Continue reading →

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Evaluate Your Name

When re-branding a business or a product or when you set up a new one and have to come up with a brand new name you should find a way to evaluate among different options that might come up in order to choose the best one out of them. Here I just stumble upon and interesting tool to dissect potential names into the nine categories to make it easier to understand why name work or don’t work, and to more easily weigh the pros and cons of one name versus another:

Appearance – Simply how the name looks as a visual signifier, in a logo, an ad, on a billboard, etc.

Distinctive – How differentiated is a given name from its competition. Being distinctive is only one element that goes into making a name memorable, but it is a required element, since if a name is not distinct from a sea of similar names it will not be memorable.

Depth – Layer upon layer of meaning and association. Names with great depth never reveal all they have to offer all at once, but keep surprising you with new ideas.

Energy – How vital and full of life is the name? Does it have buzz? Can it carry an ad campaign on its shoulders?

Humanity – A measure of a name’s warmth, its “humanness,” as opposed to names that are cold, clinical, unemotional. Another – though not foolproof – way to think about this category is to imagine each of the names as a nickname for one of your children.

Positioning – How relevant the name is to the positioning of the product or company being named, the service offered, or to the industry served.

Sound – Again, while always existing in a context of some sort or another, the name will be heard, in radio or television commercials, being presented at a trade show, or simply being discussed in a cocktail party conversation.

“33” – The force of brand magic, and the word-of-mouth buzz that a name is likely to generate. Refers to the mysterious “33” printed on the back of Rolling Rock beer bottles for decades that everybody talks about because nobody is really sure what it means. “33” is that certain something that makes people lean forward and want to learn more about a brand, and to want to share the brand with others. The “33” angle is different for each name.

Trademark – As in the ugly, meat hook reality of trademark availability. All of the names on this list have been prescreened by a trademarked attorney and have been deemed “likely” for trademark registration.

Read more about it here

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Brand Naming – 5 Tips

The name is the brand trigger. When it is said or read or thought, all the impressions, experiences and promises of the brand are brought to mind.

Creating a new brand name, whether is a new company or a new product line, is an opportunity to take a deep breath, take stock of who you are and where you’re headed, figure out what new things you need to add to the marketing mix, and what baggage you may be ready to leave behind.

The following key attributes should be present in every company name:

  • Position the company/product within the markets it serves.
  • Attract customers and prospects, usually by stating a benefit, specific or implied.
  • Be memorable
  • Be easily pronounced
  • Have positive verbal associations and connotations.
  • Be unique, not at all like competitor names.
  • Be protectable.

Next is a list with some five things to be considered when you start naming a new company, product or service:

1. Determine How Important the Name Really Is

Having a clever name isn’t always important. Many companies thrive in industries that are based on government contracts, bidding wars, business friendships, etc., and their name is often just a unique identifier to be placed on legal paperwork.

For most companies, however, their name can be an integral part of their marketing process. A clever, memorable name can make a potential client think about the company for a few extra moments, which may be all you need to get the edge on your competitors.

2. Stand Out…

The most common mistake made when naming a new business endeavor is to make it sound like the others in that industry. This is based on anxiety about whether the new business will be taken seriously. In reality, it’s critical that you stand apart from your competition, and that you look to your competitors as examples of what to avoid.

There are literally 30 or 40 wireless companies called Mobile-something — Mobileum, Mobilocity, MobileOne. Make a rule and don’t pick a name with ‘mobile’ in it, if you name a wireless company.

3. …but don’t get carried away.

A name that doesn’t mean anything, or it has no depth won’t work ussualy. A name should connect with something already in the collective subconscious. Don’t forget, you’re trying to make an emotional connection.

4. Test your tolerance for going ‘out of the box.’

If you’re looking for something unusual, usually when it comes down to it, the obstacle is always fear. Make sure that the fears aren’t based on what happens to brands out in the world. It’s like Banana Republic. People don’t see the name and think, ‘Whoa, an ugly racial slur — I’m not going to shop there.’ It’s all contextual.”

5. Don’t involve too many people

Most corporations have no problem delegating marketing and advertising issues to the marketing department, but when naming is involved, especially naming the company itself or key products, suddenly everyone wants to have a say in the process, and it can quickly become politically and emotionally charged. Therefore, it is essential that you keep the number of people involved in a naming project to a minimum, that they have real authority, and that they all understand the ideas outlined above.

Posted on by Daniel 1

5 Benefits of Branding

Almost every business has a trading name, from the smallest market trader to the largest multi-national corporation. Only a minority of those businesses however, have what could be classed as a brand.

Branding is the process of creating distinctive and durable perceptions in the minds of consumers. A brand is a persistent, unique business identity intertwined with associations of personality, quality, origin, liking and more.

Although most people associate brands with big companies, the smallest of enterprises can use branding techniques with great rewards.

Recognition and Loyalty

The main benefit of branding is that customers are much more likely to remember your business. A strong brand name and logo/image helps to keep your company image in the mind of your potential customers.

If your business sells products that are often bought on impulse, a customer recognising your brand could mean the difference between no-sale and a sale. Even if the customer was not aware that you sell a particular product, if they trust your brand, they are likely to trust you with unfamiliar products. If a customer is happy with your products or services, a brand helps to build customer loyalty across your business.

Image of Size

A strong brand will project an image of a large and established business to your potential customers. People usually associate branding with larger businesses that have the money to spend on advertising and promotion. If you can create effective branding, then it can make your business appear to be much bigger than it really is.

An image of size and establishment can be especially important when a customer wants reassurance that you will still be around in a few years time.

Image of Quality

A strong brand projects an image of quality in your business, many people see the brand as a part of a product or service that helps to show its quality and value.

It is commonly said that if you show a person two identical products, only one of which is branded; they will almost always believe the branded item is higher quality.

If you can create effective branding, then over time the image of quality in your business will usually go up. Of course, branding cannot replace good quality, and bad publicity will damage a brand (and your businesses image), especially if it continues over a long period of time.

Image of Experience and Reliability

A strong brand creates an image of an established business that has been around for long enough to become well known. A branded business is more likely to be seen as experienced in their products or services, and will generally be seen as more reliable and trustworthy than an unbranded business.

Most people will believe that a business would be hesitant to put their brand name on something that was of poor quality.

Multiple Products

If your business has a strong brand, it allows you to link together several different products or ranges. You can put your brand name on every product or service you sell, meaning that customers for one product will be more likely to buy another product from you.

 

Read more on the subject:

 

Kellogg on Branding: The Marketing Faculty of The Kellogg School of Management
Breakthrough Branding: How Smart Entrepreneurs and Intrapreneurs Transform a Small Idea into a Big Brand
Brand Against the Machine: How to Build Your Brand, Cut Through the Marketing Noise, and Stand Out from the Competition

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Brand valuation – 7 applications

Since seven seems to be the magic number which relates with brand value and brand valuation let’s check seven applications of brand valuation:

External investor relations
Mergers and acquisitions were the original driving force for brand valuation. Now many successful companies use brand valuation as an ongoing business performance indicator: to help ensure that brand strength is reflected in share value.

Internal marketing management
Brand valuation is increasingly being used as a management tool in leading organizations. For example: brand valuation figures can be used to evaluate new product and market development opportunities, to set business objectives or allocate budgets.

Internal royalty rates
Across a large organization there may be many affiliates, subsidiaries or divisions that make use of any particular brand. As the profit potential of brands becomes more clearly understood more companies are charging royalties, across their business operations, for the use of these brand assets.

Licensing and franchising
Where companies allow outside organizations to use their brand, on a licensing or franchising basis, a brand valuation can lay the foundation for appropriate charges.

Tax planning
As the management of brands as financial assets becomes more sophisticated, so tax authorities around the world have started to take an interest in how these assets are managed. The result is that more and more international organizations are planning the most cost-effective domicile for their brand portfolios and are organizing their tax affairs with their brands in mind.

Securitized borrowing
Even in the conservative world of banking, the asset value of brands has been recognized. As a result brands have been used to secure loans, especially in the US, where companies such as Disney have borrowed significant amounts of money against their brand name.

Litigation support
Brand valuations have been used to support litigation against the illegal use of a brand name (as a basis for calculating damages, for example) and also in cases of receivership, to prevent the assets of the business being undervalued.

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