Recap of April Dinner Meeting
Thursday, April 10th, 2003

April 2003's meeting topic was "Branding Your Business" The topic description, a biography of the speaker, a summary of his presentation can be read in the following sections.

Topic description: In today's challenging and competitive environment, you need to build a more powerful and compelling brand to define and distinguish your business in the marketplace. But what exactly is branding? And how can you make it work harder for you? By the end of this presentation, we became able to "dissect" our brands by identifying the six P's of the Brand Proponent Puzzle. And we were armed with some tools and techniques we can implement to take our brand and our business to the next level.

Presenter's biography: Marc Engelsman is Vice President, Chief Brand Intelligence Officer for Princeton Partners--The Integrated Brand Marketing Agency. Marc helps clients identify brand characteristics and crystallize the messages that create audience-appropriate connections and fortify the brand. Using a proprietary process he helped develop called "BIO"--Brand Intelligence and Orientation--Marc helps clients achieve effective brand development and differentiation. He has more than 20 years of hands-on experience in virtually every aspect of brand marketing. He has worked in a broad range of industries, including healthcare, high-tech, consumer goods/services, and B2B. Marc has conducted branding seminars and teaches branding at Mercer County Community College.

Summary of Presentation: Marc Engelsman talked about how branding does add value in the light of the current economy--citing increased competition, corporate downsizing, and a very competitive marketplace. Marc urged us to consider the following question: "What are the differences among the types of services we are providing?"

When he thinks of branding, Marc likes to take a look at the Oxford English Dictionary (OED) as a starting point. "The verb definition 'brand' is to set a mental mark of ownership upon, to impress a fact or an event indelibly upon one's memory. Like branding cattle", Marc says. "Your brand is 'impressing' the cow to differentiate these items of value in the West, and to make sure that your cattle is the one that got sold...you couldn't tell stolen cattle apart (from each other) without the brand."

Marc reminds us of the importance of time and place when the branding occurs. "You all remember where you were when Kennedy was shot, or the Challenger came down, or 9/11. As a branding event in people's minds, these left an indelible impression."

Citing the McKinsey Quarterly, Marc said that the prices of the strongest brands were 19% higher than weaker brands. 18% of the decision to buy was based on customer's perception of the brand. There is a demonstrated value to branding, says Marc. 80% of customers polled would stop buying a product if they lose trust in the brand. Ford and Firestone tires both lost brand loyalty (after Firestone's tires failed).

According to Marc, the Harris Interactive Reputation Quotient is a metric that measures six characteristics of company, including emotional appeal, financial performance, quality products and services, vision and leadership, social responsibility, and workplace environment. In its 2001 survey and report, Ford dropped from 38 to 52 in the rankings. The worst drop in 2001, says Marc, was Daimler Chrysler, which dropped from 11 to 56, even though they purchased Mercedes perhaps with the thought of elevating the brand. "Chrysler pulled Mercedes down", says Marc. The number 1 company ranking was J&J. They have been number 1 for 3 years in a row, and the only one appearing in the top 5 for all six categories. "Microsoft did not do so well in emotional appeal," says Marc.

"How much is a brand worth? Coke's brand is worth $70M vs. Pepsi which is worth $7M," says Marc. Martha Stewart's brand and its integrity have suffered. "Martha was not in the top 100," says Marc.

"Branding is personal. Branding is a matter of personal taste, based on your experience with that product. If you have a great experience at a Web site, it's part of the branding experience. Branding includes all aspects of the interaction," says Marc. "You go to Kmart because of Martha Stewart and the great way she has merchandised herself. The brand is a valuable asset."

Marc says that it's hard to differentiate things that are "in the middle," like Toyota and Nissan. "Your job is to differentiate your own business." Marc just bought a VW and noticed recently that the Corolla had the same antenna. "Would he have stayed with the Toyota brand?,” he asked, inviting the audience to ponder this question along with him.

Marc introduced and discussed the six P's of branding, each of which is summarized below. Marc says that "brand proponents are the sum total of all six P's, including the components of your brand, and your referrals. Proponents are, for example, the customers who write letters and rave about the product. By doing what you do well, you create believers in your product who sell it for you."

1. Positioning. Brand positioning is the first P. Positioning gets you out of the middle. Marc says: "If I say Wal-Mart, you think of low price and low quality, with Target right next door to it on the map. Some people say that they offer higher quality and they also charge more for that product." Marc advises us to "find a space on the map that makes sense for you and the services that you provide. Differentiate on price, quality, or create a different space." Marc gave an example of the positioning of one business owner attending the dinner meeting, pointing out that she is selling products from Italy, and not France. Marc referred to the book "Marketing Leadership Skills for Service Companies", in which it is noted that "it's better to be different than it is to be better." Another book Marc referred to is "22 Immutable Laws of Marketing," noting that "it's better to be first than it is to be better." He likes the positioning of the meeting's sponsor, Consider It Done Services, "because it's different," Marc says. "Everyone can tell you who the first person to cross the Atlantic was, but no one can tell you the second person. Howard somebody did it better, but no one can remember his name." Marc notes. Branding and saying you do it differently is very much a part of positioning.

2. Promise. Making it relevant and delivering is the second P--the brand Promise. Promise sets the expectation. It's not the theme or the logo, says Marc. It's a state of mind, and owning a place in the mind. A brand promise of safety, is one example of a promise. "Disney owned the family entertainment space, and it's more than family entertainment now," says Marc, referring to its Touchstone Pictures acquisition. The promise is the contract that sets the expectations. "Your vendors and your employees also create the Promise, you want them to mirror or represent your brand values," says Marc. A promise is a reflection of your company's culture, a short concise statement that sets forth your values.

3. The third P is presentation. Everything about your company, the product, your name, could also be part of the presentation. Martha's style is a part of her presentation. "Accenture broke away from Anderson, and all that brand value," says Marc, "and look at how much better a place they are than they were two years ago. But what does Accenture mean?" asks Marc. If he didn't know from "the inside," Marc says, he wouldn't know from "the outside." A company name that's part of one's initials, such as ads (Arlene D. Schragger) or me (Marc Engelsman) is part of one's presentation . "A swoosh is the Nike logo, creates a whole sense," says Marc. GE has done a good job across the board with "we bring good things to life" and they use it consistently. "They are changing that theme line," says Marc. Your office, web site is part of your presentation. Marc's speaking tonight is part of his presentation. Uniforms are part of the presentation. UPS is making a name for themselves turning "brown" into a name, a generic, like FedEx. Media, the way you answer the phone is not just advertising, it's how you present yourself. DEVCON is device communications. Be careful about the pronunciation of the name of your company, and how the receptionist answers the phone. When the receptionist knows callers by name, that's part of the brand presentation, too.

4. Personality refers to the emotional values, and how you connect on a personal level. "Think of adjectives," says Marc. "Ask your clients and prospects to describe your service, your company, in 5 adjectives, and see what they say. The more consistent it is, the better it is for you," says Marc. Ask a friend or colleague to describe you in 5 adjectives. Compare Snapple and Lipton ice tea, two different personalities, but the same basic product. Note the different brand personality embodied in the Snapple receptionist.

5. Proposition. Think of: Rational values. Testimonials. Facts. Meat. Things that support your brand. Colgate says that they are the most often recommended toothpaste by dentists in the United States. Be careful about your claims. Marc tends to be cynical about claims. Camry is the number 1 selling care in America. Look at all the other Camrys on the road. Propositions can be very powerful. They can be guarantees or price offers. A $25 gift certificate, a rational proposition, also has an emotional component.

6. Pipeline refers to delivering to the marketplace. "Think of: advertising, public relations, collateral, telephone calls, these are all part of the pipeline, from the lead to the sale to the customer service," says Marc. One Dell customer sent back the PC (they had bought) because Dell broke their promise on the customer service side. "How do you keep them coming back for the next haircut, consulting job, or Consider It Done Services, Inc. service (the meeting's sponsor)?" NJAWBO is a pipeline for business development and getting to market, says Marc.

Marc shared one additional valuable tool for developing our brands. He recommended using the acronym BARATA to brainstorm for valuable ideas regarding branding our companies, explained as follows.

B is for Benefits. He encouraged us to list all the possible benefits that your company offers, does it make you different, what the customer gets.

A is for Attributes--what you do, what you give. Marc encouraged us to list them all, whether they are products or services, to include our differentiation points.

R is for Role, the role you can play in servicing clients and the community. For example, Marc says, the state NJAWBO organization wants to support women-owned businesses, which could include a coaching role. He encouraged us to list all the roles, and ask whether these roles differentiate you.

A is for Awareness. Marc cited the example of a company like Absolut (Vodka). He notes that they have moved completely away from the use of the bottle in a variety of ways, and says he doesn't understand why they are doing it. Marc says that the Absolut bottle helps to fuel the presentation, and they have such a beautiful bottle, it has a brand identity. Marc says that if you are going to drink, drink a brand (not Scotch, but Chivas, for example) because it says something about you.

T is for Territory. Think of this in new ways, not just in terms of geographic territories, but also from a niche specialization point of view, vertically. Financial services, for example, is a very specific category. Also, time, space, day can be territories. There are morning and evening newspapers, email newspapers, different territories. Dunkin Donuts goes after the morning crowd. What will you go after? Starbucks created a brand around coffee, Einstein does coffee and bagels, Starbucks responds by offering Krispy Kreme. Make a list of potential places that you can go. Also will help you to focus on what you do well. Make your territory a part of your proposition, says Marc.

A is for Attitude, "in a positive way," says Marc, citing the women in the audience as an example. "Your attitude could be your enthusiasm," says Marc. If a law firm wins 90% of their malpractice cases, that attitude should become part of their message.

Marc left us with some final points to ponder. He says that "branding does not happen overnight. Start by concentrating on your positioning and what makes you different. Create a brand that you can deliver on and can be consistent with. Consistency is the most important factor. Roll it out and be consistent at each step to reap the benefits. Talk to people, customers, and people who did not buy from you. Look at the competition, friendly competition. You shouldn't be afraid of competition. Use best practices, and find out what works for you. Listen hard. Sometimes we don't listen to all the feedback. Have fun. I'm always amazed at what people do," Marc concluded.

- Josephine Giaimo, VP Marketing
  NJAWBO Mercer Chapter