Re: Branding and marketing

From: Preston Bealle <preston_at_babygear.com>
Date: Wed 10 Jan 2001 10:10:53 -0500

GERI STUNZ KONSTANTIN <geri_at_virtualadv.com> WROTE:
> I think this Digest needs to go back to basics. The
> reason why so many dot coms are failing (including
> priceline.com) is their failure to understand basic
> marketing. This talk about "branding" is apparently the
> latest misconception.
>
> Firstly, you do branding for products, not services.

Geri, we ARE getting back to basics, that's the whole
point. The question is, "how do I spend my marketing
dollars if I'm launching or maintaining an Internet
business"? Doesn't get more basic than that. I guess
I started this whole thing by stating that in Web time,
you should only spend the money on trackable order
generation, not specifically on building a brand name
and assuming that sales follow awareness. That's the
crux of the whole thing, and we are probably largely in
agreement.

However, to your all-encompassing point "you do
branding for products, not services?????" Have you
explained this to Federal Express? Merrill Lynch?
Those are not brands? With strong consumer preference
for what they do? Even though you can buy the nearly
identical service elsewhere, often for less?

And, to your other point:

> Branding is usually associated with existing,
> established products.

How did they become 'established'? If you're in the
advertising business, and you often run across people
at cocktail parties who like to say, "Oh, I don't pay
any attention to advertising, it's invisible to me, I
don't know how you make a living...", more than half
the time, they use Crest, Tide, Charmin, drive a
"prestige" car. Rarely do they buy food and cigarettes
from the generic aisle, so something got them to a
brand preference.

Point being that those were new products once, they had
to create the brands from scratch, just as we do now
with new products, so we can't just say branding is
only for products that are already branded.

I'm arguing both sides of the fence, with good reason.
For web companies, they don't have time or resources to
do this heavy, long-term branding stuff, like you did
with Chrysler. You're right that many of them wasted
tons of money on advertising that probably made their
mothers feel proud, but didn't bring in customers. On
the other hand, if you're Fedex, the name either has to
reek of "trust" or you won't give them your package, so
the B-word is essential for them.

Preston Bealle





Received on Wed Jan 10 2001 - 09:10:53 CST