Tue, 08/12/2008 - 2:46pm

Bringing Brands To Life In An Era of Disruptive Change: Part 1 of 2

As globalization, the Internet, and increasing entrepreneurship reshape the marketplace, the number of brands and products/services sold in every industry is increasing almost exponentially. Once-established players and brands are often finding themselves being challenged by new entrants, with new brand propositions, and are discovering that the old way of creating and maintaining a brand presence isn't enough to remain competitive in today's complex and evolving marketplace.

Simultaneously, customers in both business-to-business and business-to-consumer markets are more demanding than ever before. They are demanding interactions with brands on their own terms, through their preferred channels -- and are expecting those brands to deliver consistently and effectively to bring the promise of the brand to life. Silicon Valley marketing guru Regis McKenna described this trend by noting that "marketing is everything." It's no longer a separate function performed by the marketing department, but rather an interaction of customer expectation and company execution that spans every part of the business. As technology and new channels increase the potential for interaction between brands and their customers, the scope of what constitutes "everything" has become significantly larger. This multichannel challenge, combined with the explosion in diversity of choice in the marketplace, represents perhaps the largest strategic issue facing brand managers today. How can marketing professionals ensure that they're ready for the challenge?

There are three key factors that drive marketers' ability to adapt and thrive:

* Maintaining a brand essence that is both differentiated and realistic. As the plethora of brands in the marketplace continues to explode, and consumers are surrounded with parity products, those brands that rise above the crowd deliver a unique and genuine experience. For example, while there are many consumer applications on the Internet, Google delivers a consistent and class-leading experience that places its brand in high regard. Verizon Wireless has worked hard to develop a consistent look and feel across devices, stores, and customer service to communicate a differentiated brand of reliable, always-available wireless communications.

* Ensuring consistent delivery of the brand promise. Many brands traditionally established their credibility in the marketplace through an inherent promise about what the brand represents and delivers. In the past, this was often an intangible quality. However, customers are becoming increasingly complex and demanding that the promise be delivered on in every interaction, through every channel. For example, a performance automotive brand must deliver on that promise through every interaction -- the driving experience, the sales process, the after-sales service, and even interactions through the internet, telephone, and other communications channels. Companies like BMW and Adidas are leading the way in ensuring that the brand promise is met in every interaction that a customer might have with the brand, including ownership, in-store experience, product usage, and interaction with the company through multichannel communications.

* Developing meaningful customer dialogue. Brands that engage directly with customers and respond to customer feedback, opinions, and situations outperform static brands that view marketing as a monolithic one-way communication direct to the mass market. This requires an individualized approach to segmentation, as well as the providing of opportunities for customers to voice their opinions about every facet of the brand experience. One of the most notable recent examples of this is Chrysler's customer advisory board, which has recruited thousands of owners of Chrysler vehicles to participate in an open panel addressing every facet of the ownership experience.

In Part 2, I'll discuss strategies that enable these three key factors, and examine how leading brands have successfully implemented these strategies to enhance the value of their brands.

Brian is the Director of Consulting and Strategy at Sparks.

Brian R. Miller, Director-Consulting and Strategy, Sparks