Branding for a Post 9-11/Enron World

A Talk for the American Marketing Association/San Francisco Chapter

April 17, 2003

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Article Excerpt
One day about 4 years ago, I took my then 12 year-old daughter shopping for sneakers. I was in more of a hurry than she was, and hoping to move the process along, I picked up a pair in her favorite color from what I thought was her favorite brand, Nike, and asked her if she wanted to try them on. Her response was as lashing as can only come from a pre-teen with a truly clueless parent. She said to me “How can you think I’d buy Nike after what they’re doing to those poor kids in Indonesia.”

My reaction was shock, she’d heard of Indonesia!

I had to take this seriously. Carolyn, my daughter, was absolutely disgusted that I wasn’t getting the connection between Nike’s misdeeds and the brand. Her brand choices were being made on behalf of her taste, sure, but also her community, her support of global youth. Overnight, what had been a virtually flawless brand, a brand that embodied all the good things about America, had become the embodiment of evil.

Over the last 20 years, I’ve prided myself on being at the cutting edge of branding. In the early 80s, I was launching two information age brands, MCI and FedEx’s ZapMail, when my first boss told me that I was wasting my time focusing on service businesses, that the heart of advertising was packaged goods. I laughed in my sleeve – what did he know? The P&Gs of the world were pushing product features and benefits , while I was lucky enough to work on brands that differentiated themselves on personality. So much more interesting.

That first evolution, when brands ceased to be rooted in product and became personified, complete with values and personality traits — what an exciting step. All of a sudden brand was about relationships. Relationships are good for brands — we all know that loyal customers are 5 or 6 times more profitable than new ones, and that brand evangelists, those core loyalists, are the key to lasting success.

Now, brand relationships have become so valuable that we’ve pushed them as far as we can, treating our brands as if they were real people in real conversations with customers. We practitioners decided that brand actually resided in the customer, not with the marketer. Branding was all about establishing trust with customers, about getting inside their heads, understanding their deepest desires and fulfilling those desires.

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