Seems like marketers are all a twitter about social media these days. Is social media a threat to companies, a place where customers and employees can voice their dissatisfaction of poor quality, poor customer service, and corporate arrogance? Or is it an opportunity for companies to spread the news about new products, new services, and a forum to respond to consumers perceptions of how well they are being serviced by these companies?
It is probably all of the above. Take customer feedback, large corporations use to spend hundreds of thousands of dollars on research to discover what consumers thought of a product or service. The explosion of Consumer Generated Media (CGM) has allowed consumers a constant dialog on how well they are being served by companies. This has prompted companies like Domino Pizza, who was damaged by the release of disgusting video on You Tube by a couple of employees, to take notice of the importance of social media and proactively to take action to satisfy consumer demands. See social-media-baptism-for-dominos-pizza/
Companies like Southwest Airlines, Volvo, and Intuit have established their own Twitter and Facebook accounts to not only monitor the daily buzz from their consumers, but to also use this media as a part of a larger marketing campaign. Volvo is promoting its new XC60 through snail mail, email, web site, and YouTube, but also directing visitors to the Volvo Twitter page where consumers can comment and follow the activities of Volvo.
While large B2C companies will no doubt take the lead on using social media to monitor consumer response, amass fans to its brand, and use as an extension of traditional marketing efforts, smaller companies, and B2B companies will, I believe, find relevance in this social media space and use it to maintain customer loyalty and enhance their corporate brands.
Before you Tweet, do a little research:
1. Search your own company on Google Search to see if there are any unsolicited comments about your company.
2. Search www.twitter.com for your products, your services, your competition, and your market keywords.
3. Do the same on www.facebook.com and www.linkedin.com
4. Register on some of these social media networks. Post information that you would only want the public to see and keep it professional.
5. User names on social networks are very much like domain names, so grab your company name and main keywords now, before it is too late.

Several months ago I commented on my blog on salesvantage.com about the adverse affect a brand icon like Tiger Woods would have on the companies that use Tiger as a brand icon for their company or products while he was out with knee surgery. Tiger Woods is the brand icon for companies such as Buick, Accenture, and of course the game of golf itself. We can’t blame Tiger for poor sales of Buick and the downfall of GM, but it is noteworthy that the viewership of the Buick International was down 57% without Tiger participating in the tournament. While we don’t have evidence of the direct effect of the absence of Tiger Woods from the PGA tour due to his knee surgery on the companies he sponsors, we do now have the results of the affect of his absence on viewers of the PGA tour. The percentage of change of viewers watching the following PGA events with Tiger not participating follows:
British Open -13%
AT&T National -45%
NEC World Series of Golf -45%
PGA Championship -58%
Buick International -57%
Deutsche Golf Championship -57%
BMW Golf Championship -65%
Tour Championship -62%
My conclusion may be a stretch, but I believe the Tiger Woods brand effect supports that a strong brand brings positive results, and when that brand is absent, companies and products suffer negative results. In today’s economy it is more important than ever to maintain a strong brand strategy.

I don’t think anyone will disagree that Barak Obama ran an almost flawless campaign. Advertising Age named Obama “Marketer Of The Year”. In our brand development process we define brand as the evidence of distinction. Once that evidence is defined and you understand what is your core brand message, you need to internalize it and then and only then launch that brand and brand message to your external audience. This is exactly what Obama did. Conversely it is exactly what McCain did not do.
The brand messages were clear. Obama stands for “change”, “hope”, and “yes we can.” The added message was “no more of 8 years of Bush failed policies.” Jack and Suzy Welch in a recent Business Week column wrote, “Obama’s message was simple and inspirational. He talked about the failings of George W. Bush. He talked about change and hope and healthcare for all. Over and over, he painted a picture of the future that excited people. He also set a perfect example for business leaders: Stick to a limited number of points, repeat them relentlessly, and turn people on.” In fact the Obama campaign’s own research showed that voters preferred change more than experience. The Obama camp claimed the brand of change before the other candidates and they owned that brand throughout the campaign.
In addition to understanding their message the Obama campaign used all the marketing communication tools available including TV commercials, direct mail, public relations, web, e-mail marketing and social media. According to Ad Age, his campaign team had a firm grasp of branding, messaging, and old-fashioned political ground organization. It balanced mass marketing with social media and niche marketing.
The other very important component of the Obama brand was its internal organization and Obama himself. Obama did not waiver from his core message and neither did his campaign. It was a highly disciplined team that was able to stick to its message. Obama himself became a symbol of change. The campaign staff and its legions of active supporters were able to rally around the brand.
In 2000 McCain had a brand. His evidence of distinction was that he could work with Senators from the other party, that he could challenge his own Republican administration as he did in his criticism of Donald Rumsfeld. If the McCain campaign had developed a consistent brand message around what was truly unique about John McCain they would have been more successful. McCain tried to make a claim on being the candidate of change by promoting himself as a “maverick”. But maverick does not easily translate as change. Mavericks are viewed as independent and loaners not change agents, and Obama had already claimed the distinction of change agent.
So what can marketers learn from the Obama campaign
1. Define your brand, your evidence of distinction.
2. Craft your brand message and make it simple.
3. Validate that claim with through market research.
4. Internalize your brand so that management and staff will rally around the brand and become your brand ambassadors.
5. Externalize your brand – Deliver your brand message through every medium that makes contact with your customers and potential customers, including interactive marketing and social media.
6. Measure the feedback through surveys and web analytics.
7. Be consistent in your message.
8. Reap the rewards.

Business Week published its annual “Best Global Brands” list last week. The usual top brands are still on top, Coca Cola, IBM, and Microsoft. Some like Google have jumped from #20 to #10, and retailer H&M is on the list for the first time at #22.

The 100 Best Global Brands are a reflection of the global economy - the current credit crisis in the U.S., the growth of emerging markets and the increased emphasis on sustainability are all key trends that resulted in brands rising or failing on the list," said Jez Frampton, CEO of Interbrand. "The increasing complexities of the global economy reinforce the importance of protecting and growing a brand. It is a company's most valuable asset - and a far less volatile asset than others during a time of economic uncertainty."

With the economy heading for an official recession it raises the discussion about marketing in a down economy. Do you cut budgets? Do you keep them the same? Do you increase marketing budgets? Many companies have taken advantage of down economies in the past to increase their brand positions when there is less advertising/marketing noise. Take BMW for example, who in 1974 reintroduced itself as the “Ultimate Driving Machine” , a slogan that is still being used today. BMW not only rebrand itself from a manufacturer of sports sedans to a maker of SUV’s and luxury sedans, but even surpassed Mercedes in the luxury brand auto market.

With tight credit and diminishing sales, companies need to evaluate where to cut costs and increase cash flow, but they also need to re-evaluate their brands. According to Business Week, “When times get tough, people reexamine old habits and brand loyalties. Their tastes shift dramatically as they cut back.”

Maybe it’s time to reevaluate your company’s brand by:
• Internal research to see how employees, management, and channel partners understand your brand and how well it is communicated to customers.
• External brand research with customers to understand how well your brand is resonating with them.
• An internal review among company management and stake holders to refocus on unique selling points and unique positioning statements facilitated by a non-partisan third party.
• Touch Point analysis – Reevaluate where your brand comes in contact with your potential buyers. Has that changed? Are you spending too much money on one medium, when it would be more cost effective to market through anther medium?
• Web analysis – On your website, is your core message to your clients and prospects clear?

Companies that strengthen their brands during a recession are 7 times more likely to come out of the recession stronger. For more information on branding in a recession, go to…
http://www.grantmarketing.com/download_interbrand_recession.cfm

In February of this year Sharper Image went bankrupt. Nevertheless, the brand lives on! Hilco Organization and Gordon Brothers Group LLC purchased Sharper Image for $49 million including $33 million for the brand name. According to Hilco's Chief Executive, James Salter as quoted in the Wall Street Journal; the Sharper Image products will be sold on the web, through catalogs, and possibly through large department stores like Target or Best Buy. Mr. Salter claims the Sharper Image name could generate sales of $1 billion.

Brand value never ceases to amaze me. Sharper image started losing sales back in 2005 when it received a damning review of its Ionic Breeze air purifier in Consumer Reports magazine. With sales floundering, founder, Richard Thalheimer left Sharper Image in 2007 with a $30 million buyout. He has since started a new gadget company called RichardSolo.com.
Here you have a bankrupt company that paid its former owner $30 million, the brand name is purchased for $33 million, and the company expects sales on that name of $1 billion. I wonder how many other unsuccessful companies are making it big on their brand names. What's your brand worth?