CHAPTER 9

The Art of Branding

The best brands never start out with the intent of building a great brand. They focus on building a great—and profitable—product or service and an organization that can sustain it.

—Scott Bedbury

GIST

There are two major schools of thought regarding branding: The first holds that it’s incomprehensible voodoo that marketers practice. I belong to the second, which contends that it’s a simple matter of applying the classic Ps of marketing: product, place, price, and promotion.

To this list, some people have added another P: prayer. They are not far off—but instead of prayer, I prefer proselytization, which is the process of converting others to your belief, doctrine, or cause.

Proselytization, or evangelism, represents the core of branding for startups in today’s highly competitive world, in which information is free, ubiquitous, and instantaneous. The art of branding requires creating something contagious that infects people with enthusiasm, making it easy for them to try it, asking them for help in spreading the word, and building a community around it.

Though I love marketing, great brands start with a great product or service, so that’s where we’ll start, too.

CREATE A CONTAGION

I call it “Guy’s Golden Touch.” It’s not the vainglorious concept that whatever I touch turns to gold, but rather, simply and more humbly, “Whatever is gold, Guy touches.”

Herein lies the secret to branding: Align with a product or service that’s gold—or enhance it until it is gold. Then successful branding is easy if not unavoidable. How hard do you think it was to brand Macintosh in 1984 when the competition was butt-ugly and boring?

If you have something that’s gold, you can make a lot of mistakes with it and still succeed. If you don’t, you have to do almost everything right. So make it easy on yourself and create or find products and services that are inherently contagious. These are the key elements of contagiousness:


EXERCISE

The next time you get technical support from a company, ask the person for his name, e-mail address, and photo.


LOWER THE BARRIERS TO ADOPTION

An innovation, to be effective, has to be simple and it has to be focused. It should do only one thing, otherwise, it confuses. If it is not simple, it won’t work.

—Peter Drucker

 

Lowering the barriers to adoption is a theme that has been repeated often in this book. It applies to making it rain as well as to branding. The more prevalent your product or service, the more likely you’ll build a big brand.

A Chinese pharmaceutical company named Kunming illustrates what not to do. This company was determined to make a childproof aspirin bottle, so it created one that had thirteen moving parts and took thirty-nine steps to open. For added safety, the company changed the design every six months. The problem was that its intended customers couldn’t open the bottle. Ironically, the company discovered that adults were buying the pills and giving the bottles to kids as puzzles. *

The most common barrier that startups erect, however unintentionally, is complexity. Sure, if 1 percent of the people in China bought your aspirin because of the safety feature in the bottle, you’d achieve a lot of sales. But if it takes too long to learn how to use your product (or to open its bottle) or service, you’re making it harder to build a brand.

Few companies set out to create a complex and difficult-to-use product or service, but you have to wonder why so many products have such an incomprehensible interface. Almost anything from Japanese consumer electronics manufacturers, for example, illustrates this point. (They then compound the problem with an unreadable, broken-English manual printed in four-point gray type.) Here are ways to reduce complexity:


EXERCISE

Run a contest asking your customers to write the best manual for your product or service. You’ll have a handful of good manuals, and you’ll uncover some evangelists.


In addition to complexity, a high price is also a barrier to building a brand. To avoid this, when Toyota introduced its Lexus line of luxury cars, it priced them far lower than the German competition. Because the cars were less expensive, there were more owners out there. Since there were more owners, it was easy to find someone to talk to about them and learn how great they were.

I hate competing on price and leaving money on the table. However, squeezing every penny out of your customer is usually not the right philosophy, either. A reasonable price that fosters the creation of a brand can produce larger returns later.


EXERCISE

Which company would you rather own: Toyota or Rolls-Royce?


The final common barrier to adoption is the cost of converting (measured in money, time, or effort) from an existing product or service to your new one. Your product or service can be cheap, and it can be easy to use, but if it’s painful to switch to, you’re making branding more difficult.

Branding aside, it makes good sense to make converting as easy as possible. Few companies would make it difficult to convert from an existing product to their product on purpose, but few companies seem to realize that a lower conversion cost is good marketing.

Finally, you might think that making it hard to switch from your product is a good idea. This is a way to lock in your customer, but exit barriers are also entry barriers. If you make it hard to switch from your product, you’ll also scare people from trying your product in the first place.

RECRUIT EVANGELISTS

Evangelists believe in your product or service as much as you do, and they want to carry the battle forward for you and with you. Recruiting evangelists can help you achieve critical mass through sustained, continuous, and low-cost proselytization and branding. If you are involved in politics, not-for-profits, schools, and churches, evangelism is an especially powerful tool to achieve success.

When it comes to evangelism, it’s not true that “if you don’t ask, you don’t get.” When your product, service, or idea is contagious and there are low barriers around it, you often “get” without asking. But if you do ask, you can get much more, much faster. However, many companies hesitate to ask because of thinking like this:

These reasons are bogus. When customers want to help you, you should rejoice, not restrain them, so stifle your paranoia and accept the help. The customers will turn into evangelists who spread your good news.

Following are the keys principles of recruiting evangelists. You’ll notice several similarities to concepts in Chapter 6 (“The Art of Recruiting”), which is no accident. In a sense, you are recruiting “employees”—you just don’t need to pay these folks.

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Let’s assume that you are successful in recruiting customers to be evangelists. What should you ask them to do? That is the topic of the next section.

FOSTER A COMMUNITY

In the late 1990s, a group of business people and community leaders started an organization called the Calgary Flames Ambassadors. They were Flames fans who were alarmed by the prospect that their National Hockey League team might move to another city. According to the chairman of the group, Lyle Edwards, “The Ambassadors ran around Calgary and twisted arms so that people bought more tickets.”

Circa 2004, the group had fifty members, and they don’t have to help sell tickets anymore. To join the Ambassadors, you have to buy a season ticket and pay $100 Canadian to the Ambassadors organization. That’s right: these evangelists pay for the privilege of proselytizing the Flames. They greet fans at games, promote community outreach, and conduct social events.

The goal of recruiting evangelists is to build a community around your product or service. Examples of companies that enjoy well-publicized communities include Apple, Harley-Davidson, Motley Fool, and Saturn. These communities provide customer service, technical support, and social relationships that make owning a product or utilizing a service a better experience—they also twist arms so that people buy more products, services, or tickets.

Surprisingly, most companies react to the formation of communities after they appear, and their reaction is: “Never heard of them…You mean to say that there are groups of customers who get together because of our product?”

This is suboptimal, if not downright stupid. Having seen how some companies have benefited from the spontaneous generation of communities, you should proactively bring one into existence:

Per dollar, building a community of customers and evangelists is the cheapest method for creating and maintaining a brand, so don’t screw up by waiting for a community to form on its own.


EXERCISE

Look at the back of this book’s dust jacket. Can you figure out why we printed so many cover design entries?


ACHIEVE HUMANNESS

Consider several great brands: Apple, Coca-Cola, Levi Strauss, Nike, and Saturn. They’ve all achieved humanness: the funkiness of Apple, the joy of Coca-Cola, the youthfulness of Levi Strauss, the gutsy determination of Nike, and the buddy-buddy feeling of Saturn.

To be sure, there are great brands that don’t exhibit these qualities—Microsoft, Oracle, and IBM, to name a few. Call me a romantic, but wouldn’t it be better and more fun to have a warm brand? If you agree, here’s how to achieve this:


EXERCISE

Go to the Web sites of your favorite companies and try to find information about how to apply for grants and volunteer for the company.


FOCUS ON PUBLICITY

For weeks before the debut of the Ikea store in East Palo Alto, California, residents of the area read story after story about its grand opening. For example, a story by Thaai Walker in the August 14, 2003, edition of the San Jose Mercury News started this way:

 

CAR-GO HELP FOR IKEA SHOPPERS

CITY BRACES FOR OPENING DAY TRAFFIC

How do you move 16,000 shoppers packed into 8,000 cars through a 2.5-square-mile city on a day when the biggest, bluest store to grace East Palo Alto’s horizon opens to the public?

If you read any local newspaper, listened to the radio, or watched television, it was impossible not to learn that Ikea was opening a new branch in East Palo Alto, and it was going to be a huge event.

Brands such as Ikea are not built on advertising. Advertising may maintain and expand brands, but it’s publicity that establishes them. Here are the key concepts of attracting publicity and press coverage:

TALK THE WALK

Hidden Villa is a 1,600-acre farm and wilderness preserve in Los Altos, California. The Josephine and Frank Duveneck family gave it to the people of Northern California to foster environmental and multi-cultural awareness. Its programs include summer camps, environmental education, community outreach, hostel accommodations, and organic farming.

In short, Hidden Villa “walks the talk”—that is, it makes enormous meaning for the community and delivers on its goals. (This contrasts sharply to the behavior of many organizations, which talk a good game but do not deliver results.) However, the organization noticed that its employees and directors didn’t have the tools to promote it in a concise and compelling way.

To fix this problem, the organization created a program called “Talk the Walk,” which involved developing one-liners that explain Hidden Villa. Then, at an offsite, members of the Hidden Villa staff and directors role-played using these one-liners. Now they are all able to “talk the walk” whether they are at a Hidden Villa event or bumping into a friend in the supermarket.

The starting point for branding is inside your organization, so make sure that every employee can “talk the walk” and enthusiastically proselytize the organization.

MINICHAPTER: THE ART OF SPEAKING

Why is it that those who have something to say can’t say it, while those who have nothing to say keep saying it?

—anonymous

 

“Pitching” typically refers to making a presentation to potential investors, customers, and partners in a small, informal meeting at the prospect’s office. In addition to pitching, there will be opportunities to give speeches and to participate on panels at conferences, seminars, and industry events. These are useful vehicles to build awareness for your organization.

The purpose of these appearances is not to raise money (though a good speech can generate interest in investing) but to increase awareness of the organization and build a brand. I’ve seen dozens of executives give speeches and participate on panels, and, with rare exceptions, they suck. This happens for the following reasons:

First, let’s cover the principles of giving an effective speech. This opportunity is a powerful weapon because you have the podium all to yourself. You can, for the most part, control the entire block of time.

Next, let’s discuss appearances on panels. Panels are excellent opportunities to build a brand because they allow you to position against others—frequently competitors—on the panel. Here’s how to be a great panelist.

MINI-MINICHAPTER: THE ART OF DESIGNING T-SHIRTS

The person who is waiting for something to turn up might start with their shirt sleeves.

—Garth Henrichs

 

Making T-shirts to announce a product or company is a fine Silicon Valley tradition, perfected by Apple back in the mid-eighties. We’d print and distribute the T-shirts, then announce the product, and then start development.

When we launched Garage in 1997, our first product was a T-shirt for kids that said, “I’m a little entrepreneur. My favorite letters are I, P, and O.” We sold hundreds of them—being the e-commerce pioneers that we were.

In an attempt to build a brand and create a desirable tchotchke, many organizations print T-shirts. Unfortunately, many are downright ugly and scream, “We’re dweebs with no sense of design!” Honestly, T-shirts aren’t a big part of building a brand, but if you’re going to do it, do it right.

FAQ

Q. Should I advertise or depend exclusively on evangelism, buzz, and word-of-mouth?

A. In his book The Anatomy of Buzz, Emanuel Rosen provides a fine explanation of the relationship between advertising and guerilla marketing techniques. He unequivocally believes that advertising is an important part of branding. His reasons include jump-starting the process of buzz, reaching hubs of opinion leaders, reassuring customers, and providing the facts.* He goes on to discuss how advertising can both stimulate buzz and kill it. His book is well worth buying.

If you have to pick only one set of techniques, use the guerilla ones. But if you have the resources, do both.

Q. Do I need a PR firm? Or a PR department?

A. The answer is the same for a PR firm and an internal PR department. Here’s what they can do: force you to create a solid branding message; open the door for you with members of the press via preexisting relationships; schedule meetings and interviews and make sure that you’re presentable; provide postinterview feedback; and help you improve your meeting and presentation skills. Here’s what they cannot do: take second-rate products and services and generate countless articles about them; make the company always look good; and prevent the company from ever looking bad.

Here’s what they should never do: become the thought police through which external communications and branding must pass for “approval.”

Q. Should I pay evangelists for their help?

A. No. They’re not evangelizing your product or service for the money. They’re doing it as a way to make the world a better place. You might, in fact, insult them by trying to pay them. The three best forms of compensation you can provide are to make your product or service better, to offer stacks of information and documentation, and to honor them publicly.

Q. Is it important to build a brand in our local area or start immediately with international exposure?

A. Generally, you should establish your product and service—and therefore your brand—locally before you venture forth. It’s much better to establish your brand solidly in a small area than to have it almost established in many areas.

However, you may have the type of product or service where customers are spread out around the world, and their commonality isn’t geographic but based on other parameters. This is OK, too. The point is to go deep before you go broad—along whatever parameter “deep” appears.

Q. What if we realize that we have a stinker of a branding concept, or we want to change our direction in the middle of a branding campaign?

A. Here are several thoughts, perhaps conflicting, for you. First, I don’t believe in “branding campaigns,” a term that implies that branding is a short-term project. It’s not. Branding is continuous and perpetual.

Second, how did you decide it’s a stinker? Do you want to change because you’re tired of your logo, look and feel, tag line, mantra…whatever? Because typically it’s about the time that you are getting tired of these things that the public is just getting them into their skulls.

Third, if you’re not achieving revenues, the problem is probably something more fundamental, such as an inferior product or service.

Fourth, if your product or service is fundamentally good, and you truly have a mispositioned brand, do make a change. Ask the people who are buying your product or service what it stands for—this is usually a great start for effective branding.

RECOMMENDED READING

Aaker, David. Managing Brand Equity: Capitalizing on the Value of a Brand Name. New York: Free Press, 1991.

Bedbury, Scott. A New Brand World: 8 Principles for Achieving Brand Leadership in the 21st Century. New York: Viking, 2002.

Borden, Richard. Public Speaking—as Listeners Like It! New York: Harper & Brothers, 1935. (This book is seriously out of print, but I found a copy at Amazon.com.)

Gladwell, Malcolm. The Tipping Point: How Little Things Can Make a Big Difference. Boston: Little, Brown, 2000.

Nielsen, Jacob, et al. E-Commerce User Experience. Fremont, CA: Nielsen Norman Group, 2001.

Norman, Donald. The Design of Everyday Things. New York: Doubleday/Currency, 1988.

Ries, Al, and Laura Ries. The 22 Immutable Laws of Branding: How to Build a Product or Service into a World-Class Brand. New York: HarperBusiness, 2002.

Rosen, Emanuel. The Anatomy of Buzz: How to Create Word-of-Mouth Marketing. New York: Doubleday/Currency, 2000.