Monday, March 16, 2009
Direct Marketing as a Branding Tool
Every now and then I see an article in DMNews that challenges conventional marketing values. Such an article was co-authored in the February 23rd 2009 issue by Daniel Morel, CEO of Wunderman and John Gerzema, Chief Insights Officer, Young & Rubicam.
What drew me into the article was its title: "Branding and response are the same."
Well now, for many marketers -- in particular brand marketers -- those are fighting words.
The article compares the economic meltdown with another crisis.
"We discovered the value that brands bring to a company's total business value are exaggerated. The financial markets attach more value to brands' worth when compared to the consumers who buy the brands ascribe."
They go on to name it the "brand bubble" that is twice the ascribed value of the entire sub prime mortgage market.
Their impressive research data show that "85% of brands are stagnant or eroding in brand differentiation." And of Interbrands top 100 valuable brands from 2004 through 2007, 45% are declining in consumer perceptions.
The most interesting part of this article was how the authors combined the two different disciplines of branding and direct marketing into a single strategy.
As marketers, many of us bought into the AIDA model of awareness, interest, desire and then action. So branding pushed the demand and direct marketing harvested the desire branding developed into a purchase action.
The authors contend that this linear model no longer works.
In other words, AIDA now occurs during the direct marketing messaging because consumers now act immediately to brand/direct response messages. "Direct response no longer exists at the end of the tunnel."
Direct marketing actually creates the messaging and imagery that contribute to the brand as it always has. Only now, the Internet has given direct response new influence in the marketing community. The Internet and it's live interactivity gave direct response its ultimate medium.
Now most marketing activities are driven by CRM (Customer Relationship Marketing) and response.
In a very real sense, strong direct marketing programs have created the advertiser's reputation and product sell simultaneously from the beginning. But few in those early days were willing to ascribe that kind of mission to direct marketers.
Besides, branding is much bigger than brand advertising or direct marketing.
It is the culmination of the advertisers complete interaction with customers including customer service, phone answering systems, product quality, product warranties, market reputation and finally consistent positioning messages.
Direct marketing reveals much more about a company's true operating procedures and customer friendliness than a brand campaign.
Direct marketing includes offers, warranty information, shipping costs, refund policies, attitudes in the inbound and outbound telemarketing calls, email communications and so forth. All of these actions build or weaken brands. So direct marketing strategies go far beyond pure messaging.
Direct marketing interweaves with the advertiser's delivery of the brand on the ground where all of the action is.
In this new Internet world, companies like Zappos "created an Internet juggernaut with a call center and great product diversity that was at the heart of the brand." Several other examples are enumerated in the article.
The bottom line: direct marketing not only represents a potent branding tool, but it moves product all in a single integrated marketing strategy.
How important do you see direct marketing as a player in the brand arena? Does this article go too far?
What drew me into the article was its title: "Branding and response are the same."
Well now, for many marketers -- in particular brand marketers -- those are fighting words.
The article compares the economic meltdown with another crisis.
"We discovered the value that brands bring to a company's total business value are exaggerated. The financial markets attach more value to brands' worth when compared to the consumers who buy the brands ascribe."
They go on to name it the "brand bubble" that is twice the ascribed value of the entire sub prime mortgage market.
Their impressive research data show that "85% of brands are stagnant or eroding in brand differentiation." And of Interbrands top 100 valuable brands from 2004 through 2007, 45% are declining in consumer perceptions.
The most interesting part of this article was how the authors combined the two different disciplines of branding and direct marketing into a single strategy.
As marketers, many of us bought into the AIDA model of awareness, interest, desire and then action. So branding pushed the demand and direct marketing harvested the desire branding developed into a purchase action.
The authors contend that this linear model no longer works.
In other words, AIDA now occurs during the direct marketing messaging because consumers now act immediately to brand/direct response messages. "Direct response no longer exists at the end of the tunnel."
Direct marketing actually creates the messaging and imagery that contribute to the brand as it always has. Only now, the Internet has given direct response new influence in the marketing community. The Internet and it's live interactivity gave direct response its ultimate medium.
Now most marketing activities are driven by CRM (Customer Relationship Marketing) and response.
In a very real sense, strong direct marketing programs have created the advertiser's reputation and product sell simultaneously from the beginning. But few in those early days were willing to ascribe that kind of mission to direct marketers.
Besides, branding is much bigger than brand advertising or direct marketing.
It is the culmination of the advertisers complete interaction with customers including customer service, phone answering systems, product quality, product warranties, market reputation and finally consistent positioning messages.
Direct marketing reveals much more about a company's true operating procedures and customer friendliness than a brand campaign.
Direct marketing includes offers, warranty information, shipping costs, refund policies, attitudes in the inbound and outbound telemarketing calls, email communications and so forth. All of these actions build or weaken brands. So direct marketing strategies go far beyond pure messaging.
Direct marketing interweaves with the advertiser's delivery of the brand on the ground where all of the action is.
In this new Internet world, companies like Zappos "created an Internet juggernaut with a call center and great product diversity that was at the heart of the brand." Several other examples are enumerated in the article.
The bottom line: direct marketing not only represents a potent branding tool, but it moves product all in a single integrated marketing strategy.
How important do you see direct marketing as a player in the brand arena? Does this article go too far?
Fitness First’s Weighty Advertising Campaign
and simple advertising campaign by Dutch agency N=5 for Fitness First. (Though you have to wonder - how much reality is too much reality?)
Origami In the Pursuit of Perfection
http://vimeo.com/2188162
To tell the story of Japanese sports brand ASICS, Nordpol + Hamburg created this beautiful stop-motion movie showcasing the origami models of Mabona Origami.
To tell the story of Japanese sports brand ASICS, Nordpol + Hamburg created this beautiful stop-motion movie showcasing the origami models of Mabona Origami.
British Car, American Camper, and Scandinavian Furniture Meet in Italy
Mini in partnership with Airsteam Inc. have created a one-off Mini Cooper S Clubman coupled with a trailer designed by Copenhagen based furniture brand Republic of Fritz Hansen. It will be displayed at the next Salone del Mobile show in Milan.
Airstream Inc. and MINI have teamed with a one-off MINI Cooper S Clubman and Airstream creation designed by Republic of Fritz Hansen.
Airstream Inc. and MINI have teamed with a one-off MINI Cooper S Clubman and Airstream creation designed by Republic of Fritz Hansen.
The concept will be presented for the first time at the INTERNI DESIGN ENERGIES exhibition in the courtyards of Università degli Studi di Milano during the upcoming world-renowned Salone del Mobile show in Milan.
The exhibition will be open each day from Tuesday 21 to Thursday 30 April from 10:00 a.m. until midnight.
The exhibition will be open each day from Tuesday 21 to Thursday 30 April from 10:00 a.m. until midnight.
Republic of Fritz Hansen, the Copenhagen based premium furniture brand known for its minimalist and functional design, has spared no details when it came to designing the interior of the MINI Cooper S Clubman and Airstream trailer.
Drawing inspiration from the outdoor lifestyle of surfing, the Airstream interior will feature, amongst others, new interpretations of Arne Jacobsen’s Egg and Swan Chair and a table set up with four unique Series Seven chairs, allowing plenty of room for guests.
Sleek wood panelling will top it off giving it the ultimate “modern surfer” look.
“Here at Republic of Fritz Hansen we are thrilled with the collaboration and really look forward to introducing this unique and eye catching concept,” says Jacob Holm, President and CEO at Republic of Fritz Hansen.
Drawing inspiration from the outdoor lifestyle of surfing, the Airstream interior will feature, amongst others, new interpretations of Arne Jacobsen’s Egg and Swan Chair and a table set up with four unique Series Seven chairs, allowing plenty of room for guests.
Sleek wood panelling will top it off giving it the ultimate “modern surfer” look.
“Here at Republic of Fritz Hansen we are thrilled with the collaboration and really look forward to introducing this unique and eye catching concept,” says Jacob Holm, President and CEO at Republic of Fritz Hansen.
The MINI Cooper S Clubman will also reflect the same adventurous personality and style with clean lines, bold colours such as lightning green and all the interior gadgets you can expect to find in a MINI plus more.
The MINI Cooper SClubman will be predominately jet black with black “wetsuit” neoprene accents along with green trim. The 22ft silver Airstream trailer will also enjoy the same exterior details as the MINI but will have an interior designed for beach goers with features such as a waterproof interior and a sun bathing bed.
“Partnering with MINI was a given,” said Bob Wheeler, CEO of Airstream, Inc. “As one of the oldest manufacturers of recreational vehicles in the U.S. and MINI’s longstanding history producing unmistakable sport cars, we knew that we would make a dynamite team,” said Wheeler.
“It has always been important for us to implement new products and ideas in unconventional ways. The concept MINI and Airstream, designed by Republic of Fritz Hansen, presents a surprisingly different way of using a MINI and an Airstream with a design, which consciously transcends into the world of the surfer. At the same time, we have achieved a successful co-operation with two international cult brands which authentically embodies the MINI attitude to life” said, Andreas-Christoph Hofmann, Head of MINI Brand Communication.
The MINI Cooper SClubman will be predominately jet black with black “wetsuit” neoprene accents along with green trim. The 22ft silver Airstream trailer will also enjoy the same exterior details as the MINI but will have an interior designed for beach goers with features such as a waterproof interior and a sun bathing bed.
“Partnering with MINI was a given,” said Bob Wheeler, CEO of Airstream, Inc. “As one of the oldest manufacturers of recreational vehicles in the U.S. and MINI’s longstanding history producing unmistakable sport cars, we knew that we would make a dynamite team,” said Wheeler.
“It has always been important for us to implement new products and ideas in unconventional ways. The concept MINI and Airstream, designed by Republic of Fritz Hansen, presents a surprisingly different way of using a MINI and an Airstream with a design, which consciously transcends into the world of the surfer. At the same time, we have achieved a successful co-operation with two international cult brands which authentically embodies the MINI attitude to life” said, Andreas-Christoph Hofmann, Head of MINI Brand Communication.
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