Marketers tell stories

OK, this is the last assignment of this MKT 412 at Elon.

The topic is all about Old Marketing VS New Marketing.

One of the new way of marketing is “telling a story.” In order to tell a story, the more and more marketers begin to act like “publisher.”

 

The case of dentist in Boston

 

As the clip video showed, one of the dentist in Boston stopped to advertise in yellow page.

Instead, she published her electric book on the internet for free. It caught the people’s interests, and those people visit her dentist when they actually get trouble with their teeth.

 

The case of Le Cache Premium Wine Cabinets

 

This company tells its organization’s story directly to customers. The way of telling stories has much variety, because of social mass medias such as facebook, twitter, blogger.

 

 

What those cases tell us??

 

These businesses could succeed without old way of marketing such as advertising, or marketing campaign. Instead, they promoted direct way of telling their own stories to people in this society. One of the ways is publishing its own media to the society. Another way is posting its story on the social media.

The key word here is “Telling a story.”

 

When I listened to Prof. Mc’s lecture on this topic, I was reminded of the theory by Seth. Gordin.

He is one of the most famous author of marketing books in these days. Actually I was attracted by him in Japan, and I decided to come to the United States to learn more about marketing. In fact, I posted the blog about him before. His book “all marketers are liar” is one of the best seller among the business society a couple years ago. “Tell a story” is really important in this era. People can easily spread their honest reflections on social media.

 

As the material by Prof. Mc say,

“Marketing is more than just advertising”

 

True marketers should not just appeal something to public, but they should tell their stories directly to customers, and keep relationships with them.

 

WWE

 

Ok, I would like to introduce my lovely loyalty brand, WWE!!!!!!!

 

I was attracted by it in Japan for ten years ago.

Recently I had lost the loyalty. However, since this is my last year in the United States, I just went to the WWE show three days ago.

 

AWESOME!!!!

I got the loyalty again. And this time I will not lose its loyalty.

WHY? Because I can still connect with WWE by website, or youtube.

I researched and I figured out that WWE, also its wreslers, have their own facebook account for fans. They try to update anything fun.

I learned a lot from this strategy.

 

Old way….

 

“one-way marketing” is really tough to find in this society…

Everyone knows the importance of social media…

For Wendy’s, which is next to the campus, I can advise them to appeal more on their concept in the mass media. I know they already have their own facebook accounts, but push more and more on their concept. So that college student can communicate more with Wendys.

 

Summary of EVERYTHING

 

Ok, this summary is not limited on this blog, but also my course activities of MKT412.

Most of the knowledge is still depending on historical authorities such as Kotler.

However, I think that Marketing is facing “Paradigm shift.”

 

Especially telling a story directly is possible because of the development of social media.

customers are also changed from what they were 10 years ago.

 

World is changing, and marketers should sense this change, and then cast the most appropriate way of their strategies.

Thank you for this semester.

SPT or Jounalism? : coffee shop industry

For previous two posts, I strongly claimed that STP strategy is still best for new products.

However, Brand Journalism sometimes better than STP, especially for existing strong brand.

 

By the way, I woke up Sunday morning, and checked YouTube. One of my favorite program was renewed. It is “Tiger of Money,” the old Japanese TV program.

The content is that one new entrepreneur presents his idea to five investors.

Have you head of this program, right? YEAH, it is “Shark Tank.”

 

“Tiger of Money” was held by Japanese TV programmer, and that company sold this program to the U.S. company, which is now “Shark Tank” here the United States.

 

I found the interesting one about the targeting of Coffee shop industry.

Unfortunately, this is all in Japanese, so that I am going to summarize in English.

 

Targeting among coffee shop

This Entrepreneur was trying to open new concept coffee store. Each customer can enjoy coffee and fishing in the store. They can do fishing of golden fish with modern Japanese atmosphere.

This guy appeals that he just introduces modern relaxed Japanese taste, and any customers can enjoy once they accept it.

Contrary to his statement, one of the investor said that every single business should have its own target. Yes, it is true for most of the industries, as I claimed always.

 

However, the other investor asserted that especially for coffee store industry, it is nonsense to push its own targeting. coffee store industry is much more on vague, so that the only thing entrepreneur or owner can do is just show his concept, and customer would accept or enjoy his concept.

 

This story reminds me of McDonalds theory of brand journalism.

If you regard McDonalds as just general food chain, you might compare it to other food restaurant. However, if you want to enjoy the atmosphere or being in McDonalds, you don’t have to be targeted by. Just you want to have experiences at McDonalds.

 

My Story of Coffee Shop

Actually, I do not go to starbucks or McDonalds so much if I want to enjoy its tastes.

I really hate those customers honestly.

Instead, when I was in Japan, I often went to classical piano coffee shop.

There were not so much of customers, so that I could enjoy by myself, and also I could practice my piano. Sometime people came the coffee shop just to listen my performance.

That store did not target anyone, and if I open coffee shop in the futhre, I won't do targeting.

Chasm: new innovative product

The previous post is about the Brand Positioning for new venture product.

But still, new innovative product faces tough conditions in order to get enough revenue.

I would like to introduce the theory of “Chasm” by Geoffrey Moore.

 

Chasm

In Japan, Amazon Japan is trying to cast its product “Kindle” now. Even though Amazon is one of the famous brand in Japan, “Kindle” is facing difficulty in its growth. Many scholar of business claim that electric reader is not match with Japanese culture.

However, I know more and more people are using i-Pad of Apple. Why Kindle faces such a difficulty?

 

G. Moore points that for the new innovative product, it will face the difficulty in main market, called Chasm. Chasm appears between “Early Adopters” and “Early Majorities.” According to him, “Innovator” or “Early Adopters” are easily attracted by those new technology products. What is called “high-tech-geek” is best description of those people. However, the main market, or majority of customers tend to follow the new trend when they are sure of products practice.

This significant gap of consumer trend is what is called “chasm” by Moore.

 

Solution

One of the solution is just simple: “Be patient.” It takes long time for those majorities to understand its value. Yes, that is true. However, marketers can much more for this issue.

 

Again, this solution is also about positioning. First of all, the targeted segment is chosen, and then focuses on this segment. Once the new product can establish its position in the market, then it also can appeal its strong value.

Other majority say “oh, this product is famous in this market, probably we can apply this technology to our lives.” Then new innovative product can be spread widely in the society.

 

Amazon Japan can focus on young generation, 20~30, of its e-reader firstly.

Those people are get used to new technology, and easy to accept.

Once Kindle will be accepted this segment, Kindle also be appealed to other segment market, and then gradually be spread among Japanese consumers.

STP or Journalims?

Today, I would like to discuss about the validity of STP strategy of branding rather than brand journalism. In our class, brand journalism is focuses as one of the new tendency of brand strategy. However, I still believe that brand Journalism, trying not to cut the segment, does not work unless its brand has strong existing value.

 

For example, one of the advocator of brand journalism, McDonalds, takes its strategy. McDonalds appeal its value to anyone. “All people have their experiences or memories of McDonalds in their childhood.” That is why customers can be welcomed. The reason why McDonalds is successful to take this strategy is its strong existing brand. Most of people know what McDonalds is. They already have the expectations for dining at McDonalds.

 

How about brand journalism for new venture business?

Personally, I do not think appealing everyone of new brand without its famous core brand would succeed in this complex market. For example, UNIQLO, one of the global apparel companies from Japan, used to take brand journalism in Japan before UNIQLO expands global strategy. Especially for apparel industry, each brand has its own target as usual. However, UNIQLO had just the theme of “high quality with low price.”

It was actually, successful for some extent. However, now UNIQLO takes STP strategy. UNIQLO has realized that apparel industry requires positioning for brands. Therefore, UNIQLO developed its sub-brand, called “g.u,” which focuses more on price competition and its targeting for young consumers. That is why UNIQLO could develop its business in globally.   

 

My opinion of STP and journalism

I really believe that journalism is valid only for strong existing brand such as McDonalds. For most of the brand companies, especially for new ventures, should settle their expected segment, and cast the appropriate strategies, for this complicated market.

Private Brand by Target "Threshold"

In these days, it is often seen that the retailer develop its private brand products with a high quality, low price. Usually, those private brands are not identical with its main brand. For example, Wal-Mart develops its private brands such as Dr. Thunder and Sam’s Choice. Target is also expands its private brands, but those private products with “Target” logo was not seen at the store. This might be to avoid appealing negative images to the customers.

The case of “Threshold” indicates the general ideas of what private brand is.

 

Customer Insight

People know, and Target knows, that most of the people who comes to Target tend to be lower to middle income.
Target is one of the largest retailer in the United States, and that provides multiple of products with a relatively low price.

It is easy to develop cheap quality products with a low price, and also it is easy to do with a high quality products with a high price.

People coming to Target basically expect the lower price, however, it would be better to provide high quality products with low price.

In order to do this, Target explores its private brands, and one of them is "Threshold."


Brand Promise

What this brand tells the customer is that people can enjoy trendy looking products with a relatively low price. It will increase the one's satisfactions or hapinesses of his daily life.


Brand Personality

As it is indicated above, Threshold is the private brand that for trendy lives with a lower price.
Also, most of the people do not know that the Threshold is private brand of Target, so that the ones do not have to care about make thier lives look cheap.


Target Segment

The targeted segment market would be the ones who want to enjoy or improve their quality of lives without costing large investment. Especially Threshold is appealing its decent designs. Therefore, the target would be house keepers, i.e., wife.

Brand Strategy

Private brand strategy is really popular for the retailers in these days. In Japan, this strategy is also taken among many retailers.
One of the common strategy is that those retailers tend to have enough market.
No one sees the private brand under a certain kind of small retailer.
Becasue they have enough funds and market, they can develop the private brands.

Also, Target can maintain the customer's relations by this trendy products.
"Threshold" should not be the initial motivations for the customers to come to Target, but customers can enjoy their shopping at Target with those well-designed products.

Critique

One of the possible curitique is that Target cannot re-sell this product to other retailers.
If that would be the national brand, Target is able to re-sell it to other retailers in many ways.
Therefore, Target has to develop its product lots as much as accurate numbers.

Brand Communication: Contradictions Among Brand Lines

If the branding would have aspect of one of the communication tools, it is really important for companies to tell their values to customers. As the case of Dove and Axe by Unilever, we can see that there are miscommunications between not only each product but also between brands and customers.

This time, because I am taking social scientific approach to the business world, I would like to analyze this case by referring to one of the social scientific theory by Gregory Bateson: Double Bind Theory.

Double Bind Theory

I understand business education here in the United States is focusing more on practical or experiential method, so that this post might be boring for you. However, when I heard of the case last week, I strongly realized the importance of those social scientific approaches.

For most of you who have never heard of this theory, please take a look at the 2^nd definition on this website. http://www.businessdictionary.com/definition/double-bind.html

I am going to interpret this in a simple way.

Double Bind consists of three stages.

1)      The one get message A

2)      Simultaneously, the one get message opposite to A
3)      The one cannot flee from this situation

For instance, if you told by Professor McAlhany to submit the assignment, and you do it.

However, what do you thing if she scold and punch your face?
You must be confused. Those are situations of 1 and 2.
Now, you cannot flee from this situation because you do not want to drop this class in order to graduate Elon University.
This is 3^rd situation.

Finally, you would lose trust to her, or the worst case of Double Bind, you would be psychological illness, which is called “schizophrenia.”

How to relate the case of Unilever?

So, those are “non-exciting” things above…
BUT, now we can adjust to the case of Unilever.

1)      Customers get Dove’s message

2)      Customers also get Axe’s message
3)      Can they flee from this situation? Definitely!! That means they flee from Unilever, i.e., loss of brand loyalty to Unilever.

Double Bind theory is often applied to many situations in the business world.

I really would like you to keep in mind this theory.

*another example…

1) you are working at office, and you are told to report everything to your boss.
2) so that you report everything, but the boss scold you not to report everything
3) you cannot flee from this situation, because you and your boss are in the barrier as form of organizational company.

Most of miscommunications are begun with this type of condition in these days.

Brand Diversification & Brand Consistency

The case of Unilever, Dove V.S. Axe

Unilever is one of the global cosmetic product manufactures in this society.

Everyone can see its brands easily in the daily lives.

Dove and Axe, as parts of brand by Unilever, are also popular in the world.

However, those brands have contradicted message in one another.

 

Dove

Dove defines its value as a woman’s natural beauty with the statement of “to celebrate the diverse, the healthy, the real, and the truly beautiful.” 

 

 

 

Axe

Axe delivers its value for men to sexually attract “idealized” women.

 

 

 

 

Contradiction between Dove and Axe: Brand Diversification & Brand Consistency

As it is obvious above, Dove and Axe somewhat contradict each other. Axe allows guys to appeal “beautiful” or “sexy” women while Dove claims pursuing the women’s natural beauty.

This situation seems to be one of the negative aspects of Brand Diversification.

As the Marketer suggests in its website, Brand Diversification is often beneficial in terms of 1). Experiment marketing or 2). Creating Synergy.

However, Brand Diversification also has negative aspects, and one of them is similar to the case of Dove and Axe: Contradiction.

The direct quotation of “brands can expand to fit almost any range of goods and services, without losing their essential identity and values” indicates the importance of “identical messages among the brand”

http://www.themarketer.co.uk/trends/all-tips-articles/brand-diversification-dos-and-dontsbrand-diversification-dos-and-donts/

 

Inc., one of the media for small business of entrepreneurs, suggests the concept of “Brand Consistency.”

http://www.inc.com/guides/2010/11/how-to-maintain-brand-consistency-across-product-lines.html

Let’s focus on the paragraph of “Maintaining Brand Consistency Across Product Lines: Have the Right Message”

“If you keep changing that message, the message itself never has time to really take hold in the mind”

 

Companies would lose their trust by not being consistent of them. Companies would also lose the brand loyalty by their customers.

Unilever actually faced this significant strategic marketing issue by its sub-brands of Dove and Axe.

  

Solutionè what should Unilever do?

Honestly, the first thing I thought was

“Oh my god, Unilever did the critical miss-operation for brand strategy, even though I would notice such a contradiction.”

However, now I believe that actually Dove and Axe do not contradict each other.

I, and other classmates, and even the professor firstly did not have doubt in mind that the Unilever is contradicting among its sub-brands.

This is the BIGGEST QUESTION for me.

I have just realized that this assumption itself may wrong.

Unilever

“We help people feel good, look good and get more out of life with brands and services that are good for them and good for others” http://www.unilever.com/

By this statement, I think both of Dove and Axe are fine.

Dove pursues the women’s beauty within. =>for women's daily good lives

Axe allows the men’s sexual attractiveness.=>for men's daily good lives

 

That is it!

Even Axe takes the ideal model of girls in its CM, it is the fact that most of the men’s interests are those types of women.

If Axe says that the women should be like those girls, it should have been the contradiction against what Dove says.

But, Axe does not say anything about women.

Therefore, I finally get to the idea that the first question itself was wrong, and Unilever is operating well.

 

Well…I really want to argue with someone who is still think those of two are contradicting.

Every single activity I have disadvantages is…English…

 

I hope you could get what I am saying in this post, and then cast me the couterargument.

 

 

Difficuly of Branding: from my Unique Experiences

Hello again, it’s Yuki.

As we had the guest speaker last week, she showed us a variety of brands that she worked for.

Honestly, I do not know any of them except “Kumon” (I do not know even her company)

 

Frankly, most of the brands that are raised in the class discussion are not familiar with me.

Even “Whole Foods”, which my group’s brand platform was not familiar with me at the first time…

 

What those things mean is that, brand significantly depends on personal or individual’s EXPERIENCE!

 

I would like to cast one question to you guys who are raised in the United States.

Q. How many brands would you know or have any ideas below?

 

 

 

Actually, those brands are really famous in Japan, and I intentionally choose them because those brands are spreading in global context.

 

As the book “winning at new products” says in the chapter of global branding, it is important to appeal to some specific local customers in order to have them experience.

 

For example, “Target” is one of the largest retailers in the United States.

When I first came here, I did not have any idea for it.

One of my friends said

“Yuki, do you wanna go Target?”

I replied

“what is it? ”

He said

“big store, you can buy anything in low price”

I said

“…OK, I still don’t have any idea, but cheap is fine”

 

Now, I love Target.

If we do branding within the existing market, it is fine because people know what we are.

However, if we try to convey brand to the new market, especially overseas, it is much more complicated topic than just “innovation” or “creativity”.

 

Why?

Because people do not know how they innovated! Or generally who you are.

 

It might be too complex to deal just with marketing research.

What I have realized is that the need of not only the research but also the way of delivery to new market.

 

* I really recommend you to check those three companies

"DeNA" and "SoftBank" and "UNIQLO"

DeNA, you can see it in the application game for smartphone.

SoftBank, I can swear that you will see this within 5 years. It recently did M&A against Sprint.

UNIQLO, is already spreading in the United States and Europe.

DeNA...http://dena.jp/intl/

SoftBank...http://www.softbank.co.jp/en/

UNIQLO...http://www.uniqlo.com/us/?ref=splash

Should you listen to the customers?

While I was cleaning my room, I have realized that I bought Harvard Business Review a month ago.
Today, I found one of the interesting article about marketing research.

"Should you listen to the customers?"

 

 

There is a story about the business in art. The person A claims the importance of listening to the customers as one of the research. The person B disagree with this idea, because he tries to maintan creativity, which is beyond the customers' expectations.

 

At the last page, one of the professional commented that

 

"ANY INNOVATIVE company struggles with how much to listen ot customers." with the quotation of Heny Ford, which is the customer would say that the one needs fast horse...

 

 

 

 

 

Don't ask the customers what they want to see...

 

In the summary part, it is said that not to ask what they want to "see", but to ask what motivate them "emotional"

 

According to the Cotler, it seems like "customers' needs, want"

 

I believe that people want something to solve their certain problems, this is called needs.

What the needs are formalized is the product or service.

 

 

I interpreted the theory above in this way,

"ask customer's problem, but not the image of its form."

 

So that marketers can drive their Creativity to formalize the needs.

 

 

 

*most of the information here is from Harvard Business Review sep. 2012

Story Marketing

This time, I would like to mention "Stroy Marketing."
Before I came to the U.S., one book attracted my eyes at the bookstore.
"All Marketers are Liers" by Seth Gordin is what I am talking about.

He asserts that the brand concepts or ideas are spread by people, who really love those.
In this term, marketers are supposed to tell stories of their products, not only explaining the quality but also expanding customers' future image with those products.

For instance, a person who is going to buy Audi might expect his ideal image with it. For his perspective, other brands may not match with his images.
Marketers or sales representatives are try to approach to inspire his future images, with telling stories.

Then, that guy would tell his own experiences with Audi to his surroundings such as co-workers or relatives. This is what Seth Gordin empasis on the importance, and marketers should have this skill expecially within this competitive society.

It is often said that the story marketing is consisted by three steps.
1) Draggin people's eyes, interests by its design
2) Adding values, which raise the people's willingness of payment.
3) Construct the relationships with customers (brand loyalty)

Reminding my first encounter of this book, I was draged by the design, and I thought it deserved to pay a money, not a copy from library, and then finally I have the loyalty to his theory.
(In this case, the name of "Seth Gordin" would be brand.)

People spread their own experiences by means of the stories, like this blog post of my experiences.

Here is Gordin's blog.

http://sethgodin.typepad.com/

Suspicious against Brand Journalims

Around Elon University in NC, there are some Asian Restaurants avairable for the students.
Most of the restaurants have delivery systems, so that students can easily access to their foods.
However, one of the supprising thing for me is Simply Thai, which is in 20 minutes walk from the campus.

Differences from other competitors: 4P

Product

Firstly, I would like to talk about the differentiation of the Simply Thai. I often go to that restaurant with my friends, and I notice many people not only students but also residents around there are coming to the restaurant. Why do I go to that place instead of other Asian restaurants? The reason is, I feel the taste is better than others. Also, I like the design of its restaurant.

Price
Usually, delivery food costs about $10~20 including its fees. Simply Thai, I usually spend $15~25.
From this comparison, I can say $5 is for the cost of experiencing great atmosphere and taste of foods. This depends one's value, that I do not mind paying $5 for those values, but other's might be not.

Place
Considering the actual distance from the campus, Simply Thai is closest Asian restaurant from Elon University. That is one of its advantage. Hoever, delivering systems others take are also advantage in terms of accessibility. This depends on customer's context. If I want to eat inside of my room, I would choose delivery. If I want to go out with my friends, I would choose Simply Thai.



Promotion
Most of the restaurants which have delivery can distribute their advertising around campus.
For the Simply Thai, I have never seen ones on campus, but I often heard from other friends that the Simply Thai is the best. This may one of the way of promotion, with more realistic story telling.


Conclusion
Basically, I still believe the positioning theory.
What the Brand Journalism saying is that the brand should be applicable for many kind of interests.
Should Simply Thai take the delivery systems? No. If it takes them, Simply Thai will be suffered from their costs(gas, human resourse, etc)
Also, if I regard Simply Thai as one of the delivering restaurants, there are no differences from others in my head.

What I really want to claim is that the brand journalism theory has potentials to ruin one's strengths.
McDonald's provides many kind of snacks or light meals. That actually take the sufficient spaces or labor forces for those products. I am fine with just nomal cheeseburger, but since they are taking more and more time to prepare it, I avoid to go to McDonal's when I care about time.
It is no longer fast-food restaurant for me, but it just "cheap" meal for me.


I will try to approach the brand journalism theory, but it will take much time for me to understand or agree to it.