Brand Management Transcript PDF

[MUSIC] [SOUND] So, you've probably seen one of these. It's called a Newton's cradle. It's a very popular executive tool. It's a very simple principle. They're both of the same size, which is important with the balance across them and it's really about the motion of one being transferred to the next...

[MUSIC] [SOUND] So, you've probably seen one of these. It's called a Newton's cradle. It's a very popular executive tool. It's a very simple principle. They're both of the same size, which is important with the balance across them and it's really about the motion of one being transferred to the next and that motion is being conserved as it moves across. What's important is that the balls kind of conduct the energy and also that they're aligned. They're lined up. They're the same size, so there is a balance as I said. I tend to use this as a metaphor for the basic model, for this course, which I call the 3B's. It's about business, brand and behavior. And in the beginning, we have the business. All of us are running a business, whether we are sole-proprietors or in a commodity business selling unbranded cocoa beans. Or if we're in services, financial services, for example. We're building a business and the idea behind the business is that at the other end of the business are the customers. And we want to create values for these customers, so you can think of this line that you'll see on the slides is about creating value. Superior value, then maybe the customers could create themselves and what you want to do is of course, create more value than it costs you to create those values, so that value for the customer. That's the basic equation and that's the basic starting point for any business. Now if we think about the behaviors that we have as part of this, I tend to think of, this is a funnel here and we can think of a sales funnel that we have as part of any business. And when we think of a sales funnel, what's interesting is we tend to represent the customer over time as part of a funnel. In the beginning, we think of the total market that's available. How many were customers are even aware that they have a need for products and services? How many of them are aware that we have the solution? How many of those are considering us? How many of those have tried us, have bought us and of adapted as in maybe bought us overtime? So, it's basically a make and sell equations here. On the business side, we're making things. On the customer side, we're trying to convert them from one level to the next. And Peter Drucker who's really, some call him the father of management, talks about that the role of business is to create and to continue to create customers. So, that's the traditional model that I'll be referring to in this MOOC. Now, the role brands play in this model is quite simple. We think of the products and services of having certain functional components and the brand is kind of another brick in the wall, it's layered on top. Almost like the icing of the cake, if you will. It's something extra that you're getting, giving to the consumer. So, you may have the same shirt. One has a a famous logo on it, the other doesn't. The brand adds something extra. I said, it's the icing on the cake. It's another brick in that value equation and the brand image lives in the minds of the customers. So you can think about on the one hand, we offer brands as an identity. Maybe that logo or that brand name and the image what this brand means, what the customer expects, what they've been promised sits in the minds of customers. Now that's the traditional approach and there's nothing wrong with the traditional approach except that as I'll talk about. It doesn't really differentiate you or not by much anymore in todays environment and the word customer is really in the way of things here. What I'll be focusing on is this term consumer. The consumer is not this static recipient of an offering. We're not just buying something static, but it's a dynamic journey, the customer's on. And that whole journey from learning about your offering, buying it, using it, disposing it. That's really a sequence of experiences that you're staging, as a business. And everything changes when you think about the customer, as a consumer who's on this journey across a variety of experiences. And if you think about the behaviors of the organization, it's not so much about selling or making. It's really about designing and delivering differentiated experiences. Experiences, if you will, the customer journey traverses all these different. This is staying business processes. That might be IT, operations, your services, on the product side communications, but the customers on this journey and the key element here is the element of time. And we provide value and we differentiate our brands with this element of time, and things change when you approach business in that way. So if you think, what does it take to do that? Well, the behaviors and the brand really plays a role in driving our people's behaviors. They need to know. They need to understand what is the brand about, so that brand image is also importantly represented in the minds of our people. Do they know what the brand is about? Do they know what we want them to do and to delivery? So, brand in that sense is an articulation of our business strategy. You can also think about the brand being something they engage with. Does it motivate them? Do they buy into it? And critically, do they know how to deliver the brand in a differentiated way at those moments that matter? So the brand is not just the icing on the cake, it's something inside. It's the cake itself. It makes up everything that's inside the cake. So it's not separate, it's not extra in that sense. And critically, going back to Newton's cradle here. You can think of the role of management to kind of orchestrate, to align the business to align business brand and behavior. So, if you think about this cradle here. [SOUND] If these balls are not aligned or you've over invest in a business rather than the brand or the customer's side when the balls of different size, if they don't match, what you're customer actually expects if you take that metaphor to this stage, then this motion doesn't work. At least it doesn't work quite, as well. So in terms of brand governance, it is not something that marketing is engaged in at least not in isolation, but it's really about the whole organization working together. That's the idea behind this MOOC and each of the different modules will focus on different aspects of this cradle. [MUSIC]