Can boring brands create word of mouth?

This is the sixth of my crowd sourced blog entry ideas as suggested by Ben Rowe. Ben wanted to get my thoughts on the following: 

“Can boring brands and products create word of mouth?” Discuss.

In a word, no. But given the task is to discuss, I’d say the fact that matters here is the word emotion. Does a brand generate an emotional response from the audience. Does it generate passion and fervor?  Good or bad? If the response isn’t emotional. There will be no discussion.

The product or service may be very good, have a reasonable price and even be a market leader. Yes it may suffice or dominate it’s category, like cornflakes do as breakfast cereal, but I’m hardly about to email my brother with a link to the Kelloggs website.

We need to think about things that are emotional responses: Joy, Anger, Sadness, Elation, Fury, Disappointment, Love, Hate….

The heavy emotions every human is familiar with. A brand has to engender these type of emotional responses to get on the word of mouth agenda. Case in point is banks. They are seen to take advantage of their customers, and we have a strong distrust and hate for them. And even though the response is negative, it’s emotional and generates a great deal of discussion. That is, it’s not boring. It’s often the case that brands which have factional parties in the for and against camp (love / hate) generate the most word of mouth. Some recent examples of brands with this effect include:

Hummer

Krispy Kreme

Mac

Google

Will it blend

Cadbury Gorilla

All of these have been worth talking about. Our brand reputations as people wouldn’t be hindered if we mentioned these.

As far as start ups are concerned we should thinking less about trying to generate a viral campaign, and more about the emotional impact our offer has on our audience. Being new and innovative isn’t enough, it’s got to have an emotional impact on people. With boring brands we are simply indifferent, and so we just get on with our lives.

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Brand names are worthless

We often read about the value of brand names: “The ikea brand alone is worth $12 billion – Interbrand”

Not really. The value of a brand is the infrastructure and value chain which has been built behind it, resulting in the ultimate revenue streams. In truth the brand name is worth very little. Think about many of the unexpected and surprising corporate failures. Lehman Brothers, Ansett Airlines and Worldcom to name a few. What are their brand names worth today? Zilch.

If the brand name was really worth something, they would be sold and re-launched in some capacity. When any company is bought, the brand name is merely an adendum. It’s not the name that is being bought, rather the system, the structure, actually it’s the organisation. Of which the brand name is a very small part, even though it is what is spruked as the compenant of ultiamte value.

Startups who want to build a brand should think less about names and logos and more about building an infrastructure and revenue streams.

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Web Success = Populate & Promote

I recently saw a job posted on a web developer recruiting website. It involved some people looking for coders to make a copy of my web business and livelihood www.rentoid.com. What was interesting was the lack decorum shown in the coder recruiting process where the person said – build me a replica of this website. Here’s a screen print of it below.

I was a bit annoyed at first. and sent out a tweet to assess the mood of my army of advisers on twitter. I tweeted the following:

Not sure what to think of this? http://bit.ly/cYR5FI A compliment or IP rip off with me and @rentoid as the victims? Help! Thoughts?

The responses were varied, but all were within the theme of this person clearly does not get what it takes. Here’s some verbatim of the tweet responses:

xshay don’t worry about it – we saw a guy offering to build redbubble for < $1000 once. A) not going to happen, B) not about the tech

shandsaker same thing happened to us. Just be confident that $750 and a 2 line project brief is $750 better spent on beer 🙂

TimBull if they can only spend $750 to build it, quality won’t be there and they won’t stick it – betcha the coding was trivial part

BLKMGK01 Congrats man. Business must be huge if other people want to start ripping off ur ideas. U should apply to design the site! haha.

BrentHodgson Don’t let it worry you. You know that @Rentoid is more than the sum of its tech parts – & that it wasn’t a $750 job to create.

lukerides precisely…all about execution, so I would not worry…if they do a better job than you, they were always going to anyway!

I pretty much knew this before I tweeted the issue, but it did force me to think about web marketing success, and the success of rentoid to date and I came to the following conclusion. It’s not about the tech. In fact, the tech is pretty low down on the list of things needed for any website to succeed. And if i had to give my nemesis some advice on how to succeed in copying me it would be to do these two things:

Populate and Promote.

This is what needs to be done with any classified style website to succeed, and it takes a lot of time and investment. Investment in  financial and human capital. The problem with being 2nd, 3rd or later is that all the easy promotional opportunities like this are taken by the market innovator. And populating your website to make it meaningful takes a lot of boot leather, which is something many web entrepreneurs are afraid of.

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Good Guys, Smart Guys

♫ Come in and see the good, good good guys. Pay cash and we’ll slash the prices… ♫

If you live in Australia, you’ve seen the TV advertisement and heard the jingle. It’s a pretty simple proposition. It encourages customers to negotiate a price. I went to the Good Guys to buy a fridge and negotiate like everyone else does.

After we cut the deal and agreed on a price, I proceeded to pay in cash, when the sales guy said; ‘Credit card is fine. We are not that strict on cash payments these days.’ So I paid using my card.

It got me thinking about the truth of the Pay Cash and we’ll slash the prices tagline / tactic. It is a simple point of difference and traffic generator. The idea of the cash payment is really something that can only work on a micro level. A large retailer couldn’t dodge the tax man through taking cash payments and justify provide an unusually large discount. The supply chain has too many parties involved.  Rather, it is used to appeal the the customer who thinks they are getting a better deal by paying cash. It’s perception marketing. The insight for startups is this: if this works for the customer, that’s all that really matters.

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Strategy review

In the new year we have new business goals and objectives. We plan to do better than last year. We plan to do more….. we must review our strategy…. But before we do we must ask this important question:

Did we execute the current strategy to its full potential?

Or did it just get a bit too hard and boring, and we decided it wasn’t easy enough?

Usually the strategy is fine, and we just haven’t worked hard enough to get through the dip.

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A great moment in advertising

There is a Nike commercial that was shot in Kenya with Samburu tribesman speaking in their native language Maa. The slogan “Just Do It” appears when the tribesman is talking. In reality he was saying, “I don’t want these. Give me big shoes.

Brand definition

I’m sick of hearing crap definitions of what a brand is. Especially when they use words like marketplace and sellers, which can often be irrelevant. So here is the Steve Sammartino version:

Brand: A cognitive shortcut from which to make informed decisions.

That’s it. No need to mention selling. Brands don’t have to be sold. No need to mention a market place. Brands don’t just exist in markets – they exist in the total human experience. No need to mention logos, designs, names or symbols – these are part of the cognitive shortcuts. (which could even be a set of directions aboriginal used to locate a reliable waterhole, for which they probably had a name, in far reaching Australia over 1000 years ago). No need to mention products or services – brands can be concepts or ideas (Climate Change). No need to mention differentiation, loyalty or competitive preference – this is part of the informed decisions.

Our job as entrepreneurs is to build something which has meaning, and ultimately become the cognitive shortcut in the space we play in.

Feel free to discuss, agree or throw stones.