streda 25. januára 2012

The Persuaders

In the current times, marketing follows us. It fills every possible empty space of our world, and tries to convince us that various products are worth our money, or that we should share certain opinions. Consumers, however, are starting to be immune to the clutter. We grow more cynical about marketers' claims, and so the persuasion industries start to research and refine methods to reinforce an emotional attachment between the people (us) and the brands we buy.
Kevin Roberts, CEO of the marketing company Saatchi & Saatchi Worldwide, states that in order to create attention catching and effective advertising, a company has to move beyond relational influence and create an emotional connection with the consumer. Everybody has information and knowledge, it's no longer a competitive advantage for companies, we now live in the age of the ideas. Consumers want to be able to connect with what's behind the brand, what's behind the promise that we see expressed on billboards or in ads. People feel the world through senses, and that's what's next. The brands that can move to that emotional level, that can create loyalty beyond reason, those are going to be the brands where premium profits lie."You want lifetime customers, and you want them to have a love affair with you so that no matter what the competition do, no matter what Wal-Mart is offering cheaper, they will stay with you and they will pay a premium, just as you will stay with your wife or your husband over 30 years because you have towards them loyalty beyond reason, something bigger than a product attribute, bigger than a brand benefit, OK? That's the role of marketing" And this type of reasoning is totally understandable. When you appeal to a greater sense to the people, they will see something more then just all the clutter that surrounds them. We're living in the attention economy. You are bombarded with messages from left and right. Wherever you go, you're surrounded by brands and media. A company has about three seconds to connect with a consumer emotionally and to interest them. And as Kevin Roberts says, that's exactly what we're trying to do with Lovemarks: We're trying to entertain, interest and bond. And an important thing  is that it has to be full of mystery. Most brand managers are obsessed with explaining their product in the smallest detail and nobody could care less. In my opinion, you have to catch attention and make people want more information. Every person cares about a different thing, the social side of the product, efficiency or the popularity of the company, whatever it is - they can look it up. The advertisement should interest the consumer and attach to the consumer, so they do the rest of the information research. You build the base, but not overload the person with statistics and points relating to everybody.  Just in the end, get the person to persuade themselves.


nedeľa 15. januára 2012

Brand Leaders

A brand leader commands the largest profit margins, of a given market. The brand is then most widely sold and has the most recognized product in a particular market segment. Brand leaders are specific to their group, for example, Coca Cola is a perfect example of a brand leader in the beverage market. Not only do they know that they hold most sales of all of the competitors, as brand leader they receive a lot of perks.Coca Cola has very high customer loyalty. Being a the most popular, and quality product ensures that the customers keep coming back for more.
Being a brand leader can be signal of quality too. For example, Louis Vuitton is currently the leader among luxury goods. Being a brand leader of this sort shows different advantages such post might hold. Louis V, being a brand leader receives a lot of free publicity. Of course, it is particularly the commercials that help earn the post, but after that, people are interested in the name, products and the companies actions - it leads to people talking - basically free marketing. The fact that it is a brand name, decreases price sensitivity in a customer. You would not pay $500 for just any bag or pair of shoes, but the fact that it Louis Vuitton makes it seem like a good buy even with the ridiculous price-tag. Such brand is admired, and has a high purchase intent. This means that it can expand. Although it may have been originally bags, now this brand makes belts, scarves, or shoes. The fact that it is a brand leader provides a platform for expanding the product categories.