Challenges Facing Brand

INTRODUCTION Recent headlines in the popular press (e.g., "What s in a Name? Less and Less," "Brands on the Run," "Private Label Nightmare," "Marlboro Friday," "The Brand Leader's Dilemma") spell out the plight of brand or prod- act management in today's tough competitive environment. Brand managers have been described as murderers of brand assets" because such an important function typically has been left in the hands of relatively young, inexperi- ended managers, overloaded with analytical skills and often very short-term focused (Landler, Schiller, and Terrine 1991). The challenges posed by these conditions require a change in mindset as well as actions on the part of brand managers. These managers are challenged not only by the imperatives of the daily crises forced by customer and com- putative market activities, but also by a need to think more strategically about the function of brand management itself. The purpose of this introduction, indeed of this special issue, is to examine issues affecting the state of brand man- agreement-the challenges as well as the opportunities. In addressing this objective, we adopt a broad per spec- tie. The issues affecting brand management go beyond hose that can be dealt with by the set of articles constitute- in the special issue. A broad perspective enables us to sketch some directions for research. We discuss problems and opportunities posed by major market forces and their imp- placations for product management. We adopt a "systems" view, which considers brand management as adaptive, re- spending not only to the actions of competitors, final and in- termed ate customers, and other stakeholders, but also to its own past actions and reputation. We distinguish brand man- agers from brand management and discuss some possibility- ties for

new ways of organizing the function. Furthermore, we try to offer some understanding of the causes of cause

Definition
A challenge is a demand for proof or an invitation to participate in a competition. (Noun) 1. An example of challenge is a guard asking for identification. 2. An example of challenge is a boxer asking another boxer to take part in a boxing match. A challenge is an act of rebellion against someone or something.(noun) An example of challenge is an employee questioning the actions of their supervisor in a meeting. Challenge means to stop someone and ask for their identification.(verb) An example of challenge is someone being stopped at a border crossing to show their passport.

The Top 11 Branding Challenges Facing Mid-Sized Companies Article Overview: While this edition is based on our experiences as a provider of branding services to mid-sized companies, organizations of all sizes will benefit from this advice. Small, but growing companies will gain insights on how to avoid future branding dilemmas as they head to mid-market size. Larger organizations will benefit too from the ability to better understand their supply chain partners, many of which are mid-market entities. And mid-sized companies will gain new respect for the importance of branding to their success. The term mid-sized company has been broadly defined as an entity earning anywhere from $5 million to $500 million in annual sales. That s a heck of a range that includes public and private companies, global entities, regional powerhouses, entrepreneurial organizations, non-profit institutions, family-run businesses, and even corporate divisions. Despite the broad range in dollars, there are a number of branding challenges common to mid-sized organizations. The 11 listed below are the most prevalent,

based on Delia Associates four decades of experience in brand development and branding services for this broad market category: 1) Reactive Approach to Brand Development

Often, an event triggers brand development or re-branding. Signaling comments include, We have a major tradeshow coming up. . . or, We re being featured in a major publication and want to place an ad, but we don t know how to position ourselves. With neither a plan nor procedures, your company simply reacts to opportunities for exposure. 2) Branding Initiatives Lack Accountability (Return on Branding Investment, ROBI) No formal metrics are in place to determine the effectiveness of branding initiatives, which may include advertising, direct marketing, public relations, and web activity. Often, the basis for continuing an initiative resides in gut instinct, and the effectiveness of branding initiatives is weighed after the fact. Without metrics, you can t tell whether the result was good, bad, or average. All you know is that you invested X, the sales result was Y, and in the short-term, you re happy. 3) Can t Bring Branding Initiatives to Conclusion

Many companies make a series of false marketing starts, or start strong and lose focus, which leads to comments like, We have a website in development . . . , or We re working on a new corporate brochure . . . The senior executive may be too involved in the process, or the project may have been delegated to an unqualified staff person. I ve had a number of great interns at Delia Associates, some of whom I hired, and others who have moved on to promising marketing careers elsewhere. No matter how bright these individuals were, they were not qualified to develop and deliver a company s online brand single handedly, and it would have been unwise to expect them to do so.

4)

Who Are We Today Syndrome

If you haven t constructed a core brand foundation, each branding initiative represents a re-invention of the wheel that requires rethinking of your company s position, key values, image, and core focus. What should be a simple new product announcement turns into a debate about the company s past, present and future with everyone asking, Who do we REALLY want to be when we grow up? 5) Competition Stole the Business Away from Us

We frequently get calls from companies that have lost a major piece of business, often to a direct or emerging competitor. The top executive will complain that the competitor is inferior, yet stole the customer. What companies in these situations fail to realize is that branding has more to do with perception than with reality. If a customer believes a competitor is better than you, it s true, pure and simple. 6) We re in a Commodity Business.

Due to competitors using price-cutting tactics essentially to buy market share, perceived value is being driven out of the business. As a result, you may be forced to drop prices or add value simply to hang onto existing business. Meanwhile, branding takes a back seat. In truth, every company, by virtue of its existence, is remarkable in some way. And every industry sector has a value curve of companies, from true commodity suppliers to industry innovators. Who do you think is making more money? 7) Branding Doesn t Work in Our Industry

This statement is often paired with, Branding is a necessary evil. These comments are usually spoken by casualties of poorly executed marketing or bad marketing advice. The speakers have been stung once and won t be so easily stung again. The truth is, branding does work, as evidenced by the successes achieved by companies that have achieved brand status.

8)

Everybody Knows Us.

Any company in business for ten years or more has name recognition, especially if it services a well-defined industry. The better question is, What do people THINK about you? Your customers know you for what you do for them, but they may not know your full range of capabilities, or how to make qualified referrals on your behalf. Your customer contacts may disappear, or customers may simply forget to call you in a time of need. 9) Unrealistic Expectations

We sent out a mailing and nothing happened. This common complaint gets back to accountability and ROBI. What did you expect from a single mailing? The biggest reason for branding failures is that companies lack the tenacity to stay the course. They bail out prematurely and cite failure. The truth is that it takes, on average, seven brand impressions to get on the radar of a qualified prospect, let alone convert that prospect into a customer. 10) Nobody Knows Us.

Many organizations place more emphasis on selling than on branding. With a highly capable sales team to drive opportunity, an organization will grow, but that won t replace the power of branding. If you re a $10 million company with about 100 key clients, your brand is very important to those 100 customers. But the rest of the world could care less, until you give them a reason to care. Also, I ve met a number of talented sales professionals in my career. But I have yet to meet one that can simultaneously deliver his or her brand message to thousands of clients and prospects, 24/7/365. 11) We Don t Have the Budget.

Nearly every company we ve talked to IS spending money on its brand. Companies may not be tracking it or considering it a brand investment, but they are investing all the same. Golf outings, client dinners, company gifts, sporadic ads, tradeshow appearances, presentations, hats, tee-shirts, new brochures, updating the company website that s all spending on a brand.

To make the most of marketing investments, you need to start tracking your spending on these activities. Next, determine whether you would be better served by investing differently. If you don t have a budget, establish one for next year. Business-to-business companies spend an average of 2-3% of annual sales on branding. Business-to-consumer organizations tend to spend 5% or up to 10% if they are in serious growth mode. Retailers spend even more because they rely completely on branding efforts to create selling opportunities. Averages are a good starting point for determining how much you should allocate to branding next year. Five Challenges Facing Marketing The marketing field is faced with several challenges that for many firms will require a transformation in its capability and charge. Among them are the following five. First, marketing needs to lead in substantial or transformational innovation that will result in new offerings that will define new categories or subcategories. Marketing focused on "my brand is better than your brand" strategies supported by incremental innovation and conventional programs rarely create sales growth because markets have a lot of inertia. The only way to grow is through big idea innovation that will create enhancements or augmentations of the offering that will be regarded by customers as "must haves." That is what brands like Enterprise Rent-A-Car, Pries, Zappos.com, SalesForce.com, Dreyer's Slow Churned Ice Cream, Best Buy's Geek Squad, is hares, ESPN, and hundreds of others have done. Second, marketing needs to be strategic rather than tactical and earn an influential place at the executive table. Marketing should own three key drivers of strategy. One is customer insights which should enable growth initiatives and be the basis for strategic resource allocation. Another is the value proposition, a centerpiece of business strategy. Finally, marketing should own brand strategy which should both inform and enable the business strategy. Although more and more firms have accepted the CMO on the executive team, there are still many others for which marketing is still relegated to a tactical role. Third, marketing needs to get control of the product, country, and functional silos to foster cooperation and communication rather than competition and isolation. Firms no longer have the luxury to see opportunities for consistency and synergy lost. In Lou Gartners' classic turnaround of IBM one of his boldest moves was to attack the product and country silo culture. It is especially important to overcome functional silos to create integrated marketing programs where some functional areas accept a supporting rule even when that is not what they are accustomed to. Jim Stengel, former P&G CMO, made some

progress by allowing the functional area with the best big idea to become the team leader, but the goal of integrated marketing has been long elusive. Fourth, marketing needs to inject energy and involvement into their brands. A little known fact is that brand equity across the world has been declining for over a decade. The exception are those brands with energy. Energy is an imperative. If a brand cannot provide product energy like Apple, Dove, and others have done, the need is to create or find something with energy and attach the brand to it. Think of the Avon's "Walk for Breast Cancer" or Home Depot's alignment with "Homes for Humanity Finally, marketing needs to be elevate its game tactically. With the fragmentation of the media options, the dynamics of social media, and the proliferation of brands and offerings, there is so much clutter and complexity that nothing less than great marketing and exceptional offerings will break out. This means having access to creative tools, people willing to innovate, and a broad array of marketing modalities. One of the reasons that Hyundai is such a hot car brand is because of their great marketing programs such as "Fluidic Sculpture Design," the "Hyundai Assurance Program;" and the Hyundai Uncensored campaign (where 125 customers were given cars and their uncensored comments were posted). There are more, but if marketing can influence or deliver real offering innovation, a marketing-influenced business strategy, control of the silos, energy and involvement, and great tactical marketing, it will be relevant to the organization and will see success in the marketplace. What is the biggest challenge facing brands today? "I think the key challenge is how quickly traditional advertising agencies adopt this media platform (Mobile Marketing, New Mobile trends and opportunities) and are able to develop integrated strategies for business out there....It might be time for some serious rethinking on how agency operating models are structured and it might now be a great opportunity to develop some joint ventures with creative mobile software guys....." This got me thinking. What do you think is the biggest challenge facing brands today? I am convinced that the biggest challenge facing brands today is that of 'personalising' what they are about. Everything in our world is being turned upside down. Mostly because of the influence of the internet. As a result, businesses are having to find 'new world' ways of operating. Business

models are being challenged in a way that can only be compared with what happened at the dawn of the Industrial Revolution. I think the key driving force behind this is best captured in the expression; "power to the people". Therefore, to succeed in this new world, I am convinced brands must find new and interesting ways to allow their various audiences to 'own' the brand for themselves. If mobile marketing is important, it is because it plays a role in helping this to happen... but for how long. Nothing stands still and changeisdefinitelytheonlyconstant. Think about the way we network online We have a rough idea where we're going to find people like us, who share our values. We know how we will be received when we bump into each other in blogs, but what about when we make unsolicited connections, invite acquaintances to sign up to Xing or LinkedIn or decide whether or not torespondtorandommessagesonEcademy?

Brands have similar challenges in this online world: reputation, personality and promise will increasingly be the key factors for success. No change? Perhaps brands will have to adapt to individual variations in 'mood' - for instance, responding to our individual unique online settings in whatever social networking group we happen to be in - and engage in an intimate andspecificwayjustlikepeopledo. Will Bang and Loosen nudge me in some forum and invite me to a private viewoftheLedZeppelinreunioningloriousHD? I hate those direct mail shots that arrive where my name keeps cropping up in 'engagement' messages throughout the pack. It just seems wrong for the medium. There's no conversation taking place. Perhaps that's it. Brands conversing with us in real time in cyberspace. But will we talk back? Personal brand alive, corporate brand dead Corporate are going to keep taking each other over and get so big, they will be the size of Belgium. Their brand will will be everywhere so they will not needbrandingasweknowit. People will work for one of these corporate or work on their own or in a

small group. The groups will be very fluid, so what matters is the personal brand, not any small company name because people will choose to work with you based on what other people say about you, and your own advertising in terms of your expertise and experience

.The death of the brand? Challenges facing international brands in the 21

For better or for worse, we live in what has been called a brands cape a branded world today. We are at a time in history when brands i go beyond being business platforms to becoming symbols of our times. An increasing proportion of our lives is mediated by brands like McDonald s, Sony and Budweiser, which often reflect the changing values of our society. Brands are more than just advertising, they are part of our culture. Think of Andy Warhol and Campbell s Soup and Norman Rockwell and Coca-Cola. Products, people, countries Britain, for example, tried to become a brand with its Cool Britannia slogan and companies are all racing to turn themselves into brands to make their image more likeable and understandable. Furthermore, brands dominate our working lives, and corporate logos are now in every civic space, from schools, universities and playgrounds to hospitals and art galleries. And this brands cape can be considered to be global: walk down a street in any city in the world and there will be enough brands to make you feel at home. In the 1990s as corporations started to spent money saved from outsourcing production on their own image, branding ii achieved greater importance. Klein has argued in her book No Logo that as production was exported to low-wage economies, so the link between the consumers of a product and its makers was sundered. The brand was elevated in compensation, floating free of mere products, to become an allegorical character, a reliable embodiment of particular combinations of virtues or admirable vices. Sometimes, as with Ronald McDonald (or Uncle McDonald as he is known in Asian countries), it solidified into an animated figure. Branding, marketing iii and advertising have also been named to be important parts of popular culture and of political importance, as McGeehan makes clear:

Branding culture, it seems, is first and foremost about meaning: That s culture. It is of immense political significance. Therefore, it follows that branding culture represents, among other things, an issue of culture and politics. (McGeehan, 2001: 215)

The introduction and subsequent success of Mecca-Cola in Europe and the Middle East, for example, has galvanized that brands in today s environment are of great cultural and political relevance, too. They have rightly become a political battleground , as Bunting (2001) states, as they represent huge power . Thereby, to discuss the role and future of brands has even become more important. The Challenges Facing Brand Builders

Building a brand has never been more challenging, is the accurate opening sentence to brand consultancy Prophets 2001 state of marketing survey, which sought the views of more than 150 executives in marketing and general management roles. The graph above shows the overall response to the question what are the the top three strategic marketing challenges your organization faces today. The survey also found that: -- Over the next three years, a quality offer (product/service) will continue to be the most important driver of brand equity, but word of mouth is expected to replace advertising in relative importance. -- Effectively targeting customers in this environment is problematic. Most brands tend to use similar positioning and messages for multiple customersegmentswhethertheyarerelevantornot. -- They believe their organizations are not well-equipped with the skills that are needed to build brands in the near future.

CONCLUSIONS Needless to say, brand managers appear increasingly chalk- longed. The world of the brand manager is complex and be- coming more so. Technology is at once a curse and an op- port unity-while creating new capabilities for the brand manager; it also provides a need for new skills and different vision. The forces brand managers face is not temporary. If anything, they increase the need for the type of color- donated management brand management traditionally has as its strength. Brands continue to have value in a competitive marketplace and undoubtedly will continue to exist. Al- though specific organizational forms may change, brand management itself will adapt and thrive as managers accept new challenges by improving their competitive ability (Low and Fullerton 1994).