A blog about marketing, causes and a variety of topics in the “goodsphere”

Category Archives: Brands and Culture

A culture defined by brands?

How much money is spent Globally on marketing promotion?

eMarketer recently reported (via PWC) that worldwide roughly 420 Billion was spent on advertising in 2009…by 2013, this # is expected to rise to $470 Billion.  This number does not include trade spending and other forms of marketing spend, however.

Interestingly, Forrester reports that today 70% of all marketing spending is locked into trade funds and other non-traditional areas.  If you factor in this estimate and consider that the PWC study only looked at 48 countries in their ad spend survey, then annual marketing spend on driving/influencing consumer behavior across all touchpoints could easily be in the neighborhood of 1Trillion USD.

Let’s just put 1 Trillion USD into perspective:

  • 1 Trillion USD would fund the military might of all NATO countries combined or all US military activity since 9/11
  • 1 Trillion USD is greater than the entire GDP of Australia
  • 1 Trillion USD would cover everyone’s rent in the US for 3 years
  • 1 Trillion USD would buy you every stock on the Toronto stock exchange

See this video from Mint.com for details on 1 Trillion USD.

All this spending happens annually in order to stimulate Global consumer demand, influence purchase intent and grow brand equities. Consumers are footing the bill in a big way today for marketing today…

Additionally, the annual 1 Trillion $ marketing spend is bound to embed brands deeper & deeper into the culture.  J. Twitchell notes that 10% of a 2 year old’s nouns are brand names. More people recognize the Golden Arches vs the Red Cross.

Many young marketers enter the business fray and are excited about the prospect of leading projects and working on big brands with loads of marketing budget. For the most part, I don’t think many even really consider how their promotional programs intersect with culture. I know from my own experience that the fast paced nature of today’s global marketplace combined with intense business pressure does not allow for much reflection. Every so often, however, between the business reports, meetings and discussions, moments arise where marketers almost do a double take–like when you stumble upon people making parity videos of your ads on youtube, etc.

Some would argue that we live in a post-marketing age.  I would argue that we clearly live in the golden age of marketing and brands. In this marketing age, much of our shared experiences come through brands and the advertising/storytelling that brand teams & agencies create.

Like it or not, the marketing orientation is here to stay & will even increase as even the slow to adopt commodity sectors join the marketing revolution.  Even Google, long a poster child for a brand that has been built without much consumer marketing spend, started advertising in the Super Bowl

There is a lot of power in $1.0 Trillion. There is a lot of responsibility tied up in the $$ as well.  Where will this all go in the future? How ubiquitous and embedded does marketing promo become & how will that impact our culture going forward?

Thoughts?

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Did Brand Management die in 2009?

What is a Brand Manager and how will he/she play a role in building the 21st century?

Given the tough business climate, mind bending tech. changes & dire need for innovation in the next decade & beyond, some (like Forrester) propose that we ax the command and control “Manager” part of the traditional Brand Manager title and go with something more relevant like “Brand Advocate.”  Ad Age followed up with a similar article on this topic near the end of 09.

Brand Managers today in many companies are really business managers that guide a multifunctional business team (e.g. Finance, PR, Supply Chain, etc.).  Marketing promotion is just 1 part of their job (remember the 4Ps of marketing).  Brand Managers create the strategy for the business, making decisions about how to run their business & build their brand.   Like my good friend Dave Knox writes in this excellent post, a Brand Manager in many cases is a General Manager in training…he/she is at the center of everything that happens on a brand.

GOOD

Good Brand Managers are fun, open & inspire their teams as they lean forward to discover new ideas.  They get out front & show that they want to build future focused products & their brand for the next generation. They work together with trend, consumer research, and design agencies to envision the future, so they can  build something that makes sense.  These guys & gals are visionaries with a lot of courage.  They are Builders first, managers second…

BAD

Other Brand Managers can tend to focus too much on how they will close the financial year. They operate with so much discipline & care to deliver the right numbers that they lose sight of the future.  They don’t take risks…and they aren’t willing to adapt to technology.  They spend too much time on internal “horn blowing” and developing processes for yearly evaluations instead of following up on what’s happening in the culture and working out how they can build a better future for people. These folks wind up killing the “golden brands” built by earlier entrepreneurial heroes.

There are good & bad brand managers in every company.

“Brand Building” the 21st Century

P&G invented the “Brand Manager” term back in the 1930s when the industrial era was moving full steam ahead and command & control was in vogue (check out the McElroy model that spawned Brand Management at the end of this post–via Forrester).

So, as the new century emerges, it will be interesting to see how Brand Management evolves and what (if any) title emerges to take its place.  I personally like the idea of the Brand Builder.

Brand builders create the classic, seemingly untouchable brands/products that form the foundation of a company.  Brand builders aren’t just 20th century leaders seeking internal influence and power; they prefer constructing and transforming the future.  While they thrive on understanding what’s happening now in the online social spaces and in the culture, they don’t meekly conform to the fleeting whims of online crowds…instead, they think longer and deeper to consider the impact of their products on future generations.  They are reflective, curious and tend to motivate other people.  Brand builders would rather put messages into the culture that help & inspire.  Builders think about driving the evolution of culture…not devolution.

As Umair Haque puts it in his recent manifesto, today’s builders are igniting the distant grandchild of yesterday’s industrial revolution: an institutional revolution for a post-industrial world. They are forging the new building blocks — from ethical investment, to deep journalism, to socially useful finance, to universally accessible communication — that a rusting economy, society, and polity so urgently demand.

It’s easy to get into the mode of “just trying to find newfangled ways to move product” via promotion.  Brand builders would like to see more focus return to the Product part of the 4Ps. Brand builders want to create sustainable & responsible growth that matters…not just another boring line extension that clutters the shelves and people’s lives.

The 20th century Brand guy/gal thinks “I” & “we”. The 21st century Brand person thinks  “all” — people, communities, and society.

Let’s hear it for the 21st Century Brand Builder.

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Humility is dead…long live humility

It’s Hard to be Humble, When your Perfect in Every Way…Country singer Mac Davis

Humility is Dead…

Like some of you out there, I enjoy watching the Apprentice.  It’s interesting to watch cut-throat competition and “The Donald” say “you’re fired” to smart people every week.  Watching “The Donald” push people past their limits is sadistically fun…humility was certainly never rewarded on the show, however.

Humility is a virtue that is rarely discussed today in popular culture.  You hardly ever hear anyone talk about it on the left, or on the right.  Even conservative former drug czar Bill Bennett somehow forgot to mention humility in his Book of Virtues a few years ago.

Why don’t we hear many cultural commentators or business leaders talk about humility?  Probably because it just doesn’t fit into our self-affirming, “you can be anything you want to be when you grow up” culture…or does it?

Long Live Humility

Jim Collins uncovered a somewhat counter intuitive finding (from our culture’s perspective) around humility in his landmark book Good to Great a few years ago.  Collins discovered that the most effective leaders were characterized as humble and strong-willed instead of brash and full of Trump-like hubris.

In his most recent book How the Mighty Fall Collins delves into the reasons why promising organizations and countries fall.  Stage 1 is, fittingly, Hubris Born of Success.

So, humility seems to be a virtue that business folks and even marketers (like me) might want to pay a little more attention to.

Humility is a little tough to pin down, however…and today, we see loads of false humility (which is really just pride).  Wikipedia notes that “True humility” is distinctly different from “false humility,” which consists of deprecating one’s own sanctity, gifts, talents, and accomplishments for the sake of receiving praise or adulation from other.  How many times have we heard PR consultants say that in order to “fix” an egregious error with the public, a celebrity needs to go onto Oprah and confess his/her “transgressions” only to see that same celebrity up to the old tricks the next week….clearly they did not mean it.

Kant sees humility as “that meta-attitude that constitutes the moral agent’s proper perspective on himself as a dependent and corrupt but capable and dignified rational agent.”  Aquinas defines humility as consisting in keeping oneself within one’s own bounds, not reaching out to things above one, but submitting to one’s superior (tks to Wikipedia for the philosophical help here).

As humility is so counter to the prevailing culture today, adopting a more humble stance with regards to advertising/marketing promotion might be somewhat radical or breakthrough.  People long for hints of humility & authenticity today and flock in big numbers to brands that try to “keep it real.”  When Dove made a radical departure from traditional beauty advertising with a campaign like Real Beauty a few years ago, the brand shook the entire beauty industry (click here to check out Real Beauty if you have somehow missed if over the past few years).  Some might accuse Dove of pursuing false humility while others would say that Dove has stuck with its purpose led campaign for years (instead of using it as a “one shot deal” for publicity & buzz).

Don’t get me wrong…of course I believe a healthy dose of self-confidence is good.  And, we should all stretch our capabilities and use our talents.  Additionally, we all have to apply for jobs and write those dreaded resumes with loads of puffed up language about ourselves.  But, when the smiling self-help guru legions continually try to sell us on “being proud,” maybe we should listen to see if they ever mention anything about humility (at least once).  If they don’t, we should get suspicious…humility is a virtue for the ages and it deserves to be rediscovered.

So what do you think about humility?

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Fake Brand specialists. No Produkt placement? No problem!

“In appearance is the promise of what doesn’t appear”

Theodor Adorno, German cultural philosopher

A few weeks ago, I sat down to watch one of the most famous (and longest running) German TV shows–Wetten Dass (Wanna Bet?).  Wetten Dass does not only do well in Germany; it is also the most successful TV show in Europe–deftly combining Celebrity talk show ambiance with bizarre tricks from “the average Joe” (or Fritz in this case).  Wetten Dass only airs every couple of months, but the show is long…lasting about 2-3 hours without commercial interruption.

While I was watching the show, a guy bet that he could (blindfolded) detect the individual & personal smell of 30 different sweaty feet of people on his sports team.  I almost felt like puking as he swirled each of the shoes to detect the smell…and yep, he even managed to win the bet.

Then, a girl proposed a bet which involved drinking multiple cans of tea as fast as possible.  I thought it was curious that the tea cans she drank were wrapped with brown paper, but then it dawned on me, Wetten Das airs on ZDF a state (or public) TV channel where branded tea logos are not allowed on the set.

No Produkt Placement?

In Germany, there is a public broadcasting rule that forbids the inclusion of unmarked advertising.  The intent of the rule is to keep content and advertising separate.  While restrictions have relaxed for private channels in Germany, publicly funded stations like ZDF still have to abide by the rules.

No Problem!

So if you want to display a “real” branded item on public TV, you’ll need to use something fake.  Schein Berlin is an agency that specializes in building fake brand concepts and packaging (Note:  Schein also means “appearance” and “fake” in German).  Check out this great article from Jude Stewart to see some of the fun fake brands that Schein has developed.

And, if you want to stay up to date on your fake brands, there is now an excellent fake brand blog called product displacement…celebrating the best in fake branding. My favorite from the product displacement blog is Muff-Mart (50,000 sq. feet of nothing but muffins–from the Simpsons).   Mental Floss also has a breakdown of their top 10 fake brands.  Finally, there is no place like China.  Just check out this blog with pictures of fake brands all over China.

My current personal favorite fake brand (that is now somewhat “real”) is Dharma–the Dharma products on the TV hit series LOST are loads of fun (Dharma Chips, Soda, etc.).

Not going away

A recent move by lawmakers will relax the rules for public TV now in Germany, opening up the floodgates for new product placement.  I saw the first hints of this at the end of most recent airing of Wetten Dass where Audi sponsored the winner of the best bet by offering up a new car.  However, fake brand builders in Germany should not fret…the sport is definitely alive & well.  And, the Dharma example is instructive, showing that even “fake” brands can even turn profitable and become “real”.  In the end, the line between “real” and “fake” blurs. As Stewart points out in his article on Schein Berlin

more than anything, Schein’s work points to a home-truth about the “real” brand-world: it’s an imaginary reality we dream up, and then live in, daily. Supermarkets, highway shoulders, and all the screens that beguile our idle moments are wallpapered with our longing.

Dharma image from maxpixpix.  Hat tip to Jude Stewart on the great article & quote tip.

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Brands and culture, symbiotic?

When you urgently need to blow your nose in Germany and don’t have a tissue on hand, you might ask a friend “Hast du ein Tempo?” (Do you have a Tempo?)

Tempo, it turns out, is a brand of tissue, not the German word for tissue.

Substituting a brand name for a general product description is relatively common across a number of languages.   How many times have you heard someone say “Just Google that” or “Can I have a COKE please”? Over the years, powerful brands have impacted our culture and slipped into our language.  For a brand, this is the ultimate compliment and a big awareness driver.  In fact, Coke and Google (the 2 examples above) are now the #1 and #2 brands respectively on Interbrands latest list of powerful brands.  Tempo continues to be a very powerful brand in Germany.

As Corporations grow in size and influence (51 of the 100 largest economies in the world are corporations now) I’m wondering about the way in which Brands will deepen their influence on culture in the future.  But before we get into to that discussion, lets briefly touch on how culture impacts brands.

Culture –> Brand

Culture (e.g. music, fashion, morality, language, tech., law, spirituality)  forms the shared values and beliefs of a society.  Much of the discussion around how brands interact in culture centers around how brands need to deeply understand local cultural philosophies and consumption patterns when they enter into a new market.   Often, we are told, brands work well in their home country, only to fail miserably when they don’t adapt their offerings to local cultures and traditions.  Wal-Mart, for example, had to exit the German market due in part to a lack of understanding around the German everyday discount shopper.

Indeed, understanding culture is very important for companies and brands because culture provides the framework within which households function.  Recently, Branding Insider pointed out:

Culture, in effect, provides the framework within which individuals and households function. A major consequence of culture is its impact on consumption patterns of individuals and institutions. Depending on the underlying cultural philosophy consumers tend to follow certain consumption patterns.

Many big global companies have seen how their brands can fail when they don’t pay close enough attention to local culture, so they have adopted a strong “culture impacts brand” lens, whereby they take the consumer is boss perspective to ensure that the organization respects the traditions/norms of a culture.  Local go to market teams are deployed around the world and organizational measures are put into place to help a product succeed across significantly different countries and cultures.

Brands–> Culture

Moving back to the impact of brands on culture, discussion…beyond language, when a brand introduces a new product with a new benefit that changes an entire consumption pattern or norm, what does this mean for culture? And, how will brands extend their role in a culture creation in the future?  One interesting area to watch is the world of fashion.  Fashion Brands definitely play a role in the development of a culture.  Fashion brands tell us what is or is not acceptable to wear, shaping our values and norm…ultimately our culture. Google and Apple are are also brands that some tout as culture shaping.  Both brands are revolutionizing the way we work online - personally and corporately.

It does seem very logical for Brands to want to be a part of culture and, when they can, help to shape it.  As James Hunter points out:  Culture is a resource and a form of power.

So if you believe that brands are inevitably poised to impact culture in a deeper way moving forward, how should this responsibly be done?  Bob Gilbreath offers an excellent approach where Brands are built “1 act at a time” via meaningful marketing that people choose to engage with.  In this model, the marketing itself doesn’t intrude on people–it improves lives.  It sounds idealistic, but Bob provides a couple of tangible examples:  Nike has turned its entire marketing plan toward services for training athletes. T-Mobile is creating spontaneous events in London to give people an experience worth recording and sharing on their mobile devices. Procter & Gamble is teaching people in developing nations the importance of brushing their teeth and washing their hands.

Great points Bob, let 1000 meaningful marketing campaigns bloom!

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