Re: Branding and marketing

From: Geri Stunz Konstantin <geri_at_virtualadv.com>
Date: Mon 15 Jan 2001 13:38:09 -0500

PRESTON BEALLE <preston_at_babygear.com> WROTE:
> 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.

We are in agreement, and depending on the internet
business, trackable order generation is more important
at the outset than building a brand name. After all,
you can have products that are not brands. And sales do
not always follow brand awareness- plus there are other
factors.

PRESTON BEALLE <preston_at_babygear.com> WROTE:
> 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?

They are not brands. They are services. And as you said
you can buy the nearly identical service. Therefore
you agree that they are not brands. It is a matter of
semantics and the fine line between branding and
advertising.

PRESTON BEALLE <preston_at_babygear.com> WROTE:
> How did they become 'established'?

They became established by solid consumer-benefit
advertising with specific goals. Something you don't
see much of nowadays.

PRESTON BEALLE <preston_at_babygear.com> WROTE:
> 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.

Yes - because no one will tell you they saw any
advertising. We did the advertising for a Honda dealer
in NJ for over 10 years. The GM kept telling me he
didn't think he needed ads - after all no one says they
saw our ads. One day a man came in and asked for a
specific model model at the exact lease price in the
ad. When asked if he saw the ad, he said no...

PRESTON BEALLE <preston_at_babygear.com> WROTE:
> 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.

But you can't do branding until you have an established brand.

PRESTON BEALLE <preston_at_babygear.com> WROTE:
> 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.

We did not do branding for Chrysler.

PRESTON BEALLE <preston_at_babygear.com> WROTE:
> 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.

Fedex is a service, not a brand. Their success is not
due to branding, but good advertising and a good
business plan and operations. I know this is hard to
understand, but there are differences between the 2.

LARRY RAUBACH <larryraubach_at_hotmail.com> WROTE:
> No way jose. Granted, many products, especially FMCG,
> are ideal candidates to be "branded" because of
> frequent purchases and lifetime value considerations,
> but in theory, branding for services is arguably even
> more important than it is for products. With products,
> customers tend to have the opportunity to see them,
> touch them and try them out. Not so with a service.
> Accenture (formerly Andersen Consulting) is in the
> process of spending gads of money to rebrand
> themselves. Is this branding necessary? You bet. Not to
> mention that because of the many customer points
> service businesses often have, it's crucial that
> service delivery be effectively managed and
> consistently delivered - and that is a key component of
> branding.

I guess you are from the new school of advertising
because I just don't see it. First of all, what is
FMCG? Second, you try out a service. Andersen
Consulting has image problems and also their income
base has evaporated or shifted. Service is not a key
component to branding. That's a pure operational issue.

LARRY RAUBACH <larryraubach_at_hotmail.com> WROTE:
> A product is not a "brand."

I didn't say a product is a brand. I said a brand is a
product. And Branding is not the same as developing
brand awareness.

LARRY RAUBACH <larryraubach_at_hotmail.com> WROTE:
> Now let me give an example of a service business that
> understands wholeheartedly, the concept of branding -
> even though the proprietor may never had heard of the
> word before. Don't laugh...my hair stylist. Let me
> explain.....
>
> This my friends is what branding is all about.

It's not branding. Hairstylists don't do branding. It's
a service. That's different. You explained how it is
different by your description! Your hairstylist knows
good PR & promotion. But you gave it a good try!

Geri Stunz Konstantin
Principal
Stunz | Konstantin
Advertising | Website development | Search Engines
Boca Raton, FL
Geri_at_StunzKonstantin.com





Received on Mon Jan 15 2001 - 12:38:09 CST