Re: Branding

From: Damon Kirschbaum <damon_at_damonkirschbaum.com>
Date: Mon 24 Feb 2003 20:04:28 -0600

on 2/24/03 1:04 PM, Rob Frankel at rob_at_robfrankel.com wrote:

> At 8:38 AM -0600 2/24/03, Damon Kirschbaum wrote:
>>
>> Price strategy is no strategy? The price cutters are the first to get
>> flushed?
>
> Yup. You got it right.

A reasonable person can believe that Wal-Mart seems to contradict your
assertion. Are you willing and able to explain how it actually does not?

>> Branding is a concept. It is an idea. It is not definitive. We cannot touch
>> it, hold it, measure it, or weigh it.
>
> That's because too many people don't want to be accountable for their
> brand. They subscribe to an old school, Trout & Ries definition of
> what branding is and what it should do. If you read the first
> chapter of my book, you'll see why and how this has all changed
> radically.

I do not want to read your book. I want you to explain it here.

> So you buy THEIR definition but not ours? A bit arbitrary, there......

You have not offered a definition of branding. You have offered ambiguous
puffery seemingly designed to promote your "brand" and sell your products
and services.

Acceptance of their definition is not arbitrary. The definition sounds right
to me. It seems to describe what people seem to mean when they speak or
write about branding. Can you explain exactly how their definition is
inaccurate?

>> Being the lowest cost provider of a product or service is an excellent way
>> for a business to differentiate itself from its competition, and to bond
>> with its customers and create loyalty.
>
> That is SO wrong. If you've ever been in business yourself, you'd
> have a different take on it. In practice (where my brands are
> created), branding takes on a much different role, where it is
> directly accountable to the bottom line. Price cutting is a tactic.
> There is no Wal-Mart brand strategy in this respect. There's high
> awareness. There's success. But there's also extreme vulnerability.
> They are susceptible, but you just can't see it.

This reads like sales puffery to me. How is branding directly accountable to
the bottom line? How is price cutting a mere tactic? Can't it be both a
strategy and a tactic? How do you differentiate between a marketing strategy
and a marketing tactic?

>> Karen G. Laughlin's strategy of being known as the lowest cost provider of
>> whatever it is that she sells is definitely an effective way of
>> differentiating her business from her competitors, and bonding with her
>> customers and create loyalty, especially if the product or service that she
>> is selling is a commodity.
>
> That is so wrong.

Why? Are you denying that Ms. Laughlin's strategy even meets the definition
of branding that you rejected?

>> How would you define "branding"?
>
> The whole point of branding is to be able to sell your commodity at a
> PREMIUM because of the brand. My definition is below, in my tag:
> --
> Rob Frankel
>
> "Branding is not about getting your prospects to choose you over your
> competition; it's about getting your prospects to see you as the only
> solution to their problem." (TM) -- Rob Frankel

This is not a definition. It is more sales puffery. A cynic would believe
that ambiguity is a crucial aspect of your sales process.

You say: "The whole point of branding is to be able to sell your commodity
at a PREMIUM because of the brand." Wal-Mart sells thousands of commodities
at premiums. Because of their size and buying power, they are able to
profitably sell commodities at prices below the price that other retailers
are able to.

Your opinion seems to be that a high volume/low margin business model is
incompatible with "branding," and that "branding" means high margin. Is this
correct?

Rob, I have a problem--I have no idea what you are talking about, and I have
no idea what you mean by "branding." You are the only solution to my
problem, Rob. Please help me!

Regards,

/s/ Damon Kirschbaum

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Damon Kirschbaum's Investment Advisory Service
<http://www.damonkirschbaum.com/>
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Received on Mon Feb 24 2003 - 20:04:28 CST