Alan Brew is a Principal at RiechesBaird

Originally published on NameDroppings.com

Is a legal pad an item of personal hygiene for female layers? How about a launch pad – is that a contraption for sending Maxipads into orbit? What about ink pad? Or bachelor pad…is that for unmarried lesbians?

Pardon the puerile analogies. Of course you know what these kind of ‘pads’ are. We are familiar with them. To force interpretation of their meaning through association with a feminine hygiene pad is perverse. But that’s no worse than what happened this week with Apple’s iPad.

Within seconds of the unveiling of the iPad by Steve Jobs, Twitter lit up with women complaining and/or joking that the name immediately made them think of …iTampon.

Experts who should know better fanned the flames. “It’s an unfortunate name choice,” contended Michael Silverstein, senior vice president at Boston Consulting Group and author of “Women Want More: How to Capture Your Share of the World’s Largest, Fastest-Growing Market.”

“They needed to do a research protocol and testing for a product that would offend no one while making clear its technical, functional and emotional benefits,” he said in the Pittsburgh Post-Gazette.

That may be the way they think in the literal world of management consulting. What he clearly does not understand is that, when it comes to names and naming, experiential context is everything. Just is we do not suppose a cell phone is for making calls in jail, that Virgin Atlantic is an airline for the sexually inexperienced, or indeed Apple is a company that manages orchards, the iPad will create its own context and it will be become just as familiar and accepted as iPod.

The trap to guard against with new names is the natural tendency for people to associate an unfamiliar name with something that it is familiar. The statement that begins, “It reminds me of…” has led to the premature dismissal of many a good name candidate.  Associations are important, but focus should be on whether the the product or company that is being named could create new, positive meaning around the word, rather than rear-view association.

There’s nothing that can be done with plain bad names such as the Ford Probe. But just imagine if iPad had been called the iTablet, which some bets were on before the launch. Would physicians be lighting up the internet advising us not to take more than two a day, and then only after meals with a glass of water? Of course not. They know what hypochondriasis is.

Ray Baird is President of RiechesBaird

Do you know what predicts your brand’s success?  Most marketing metrics only measure what has happened, using what could be called “lagging indicators.” But imagine the effectiveness of your marketing program if you could identify the “leading indicators” for your brand; the activities, buyer behaviors, and measurements that actually lead to sales and profits.

Progressive marketers and their agencies are exploring this brave new frontier.  Instead of just looking in the rear view mirror at historical measurements like sales and market share, they are attempting to look ahead at predictive measures that are the actual precursors of business success. Most “leading indicators” never appear on a financial statement, but they can – and should – be identified, tested, and tracked.

Identifying the real causes of brand health is vital to successful brand management.  For example, most brands with call centers, which includes a lot of B2B brands, commonly measure such things as time on hold and minutes per call.  But these metrics don’t measure or predict real customer satisfaction.  Research by Convergys shows that customer satisfaction is predicted by two things: 1) Is the customer service representative knowledgeable? and 2) Is the problem resolved on the first call? (Convergys 2008 U.S. Customer Scorecard.)

An important difference

Lagging indicators are simply a measurement.  Leading indicators are a measurement tied to a hypothesis, which can be tested and refined, in order to explain or predict behavior.  Imagine six friends getting together every Friday night to play poker.  Over the course of a year, on person wins 60% of the time – the other players win much less often.  These statistics are all lagging indicators; they tell us what has happened.  But they don’t tell us why.  You might be inclined to think the 60% winner cheats, but in fact he wins so often because everybody else in the group has such a poor poker face.  The point is that you learn nothing by observing the result – only by understanding the process that leads to the result.

For example, If you reverse engineer most successful marketing programs, you’ll find that they center around a hypothesis based on a powerful insight into buyer behavior. That hypothesis can almost always be considered a leading indicator.

All measures are not created equal

While predictive is better than historical, this isn’t to say there isn’t a place for lagging indicators in marketing measurement. Some lagging indicators – such as incremental profits generated from a campaign – are important and relevant measures of marketing success.  The same is true with lagging indicators like brand penetration and average price per unit.

But many traditional measures of success are the result of historical practices rather than a careful study of cause and effect.  Correlation is not the same thing as causation.

For example, while sales is the most common “hard” metric of success, campaigns that focus on reducing price sensitivity are more effective than those that focus on building volume or market share.  In other words, we’ve learned that value share more important than volume share.

As Einstein said, “Not everything that counts can be counted, and not everything that can be counted counts.”

Brand health as human health

It’s critically important to measure B2B brand success using a combination of both leading and lagging indicators.  You can think of the health of a brand in the same way we think about the health of a human body.  A physician would never attempt to diagnose a serious problem merely based on a few outward symptoms.  He or she would also likely measure temperature, blood pressure, organ functions, and other things that would give a more complete picture of health.  Diagnosing and monitoring the health of a brand involves the same dynamics.  Sales and market share alone only tell us the brand is healthy or sick, but don’t tell us why.

(SIDEBAR)

Two Different Kinds of Indicators of B2B Brand Success

At a time when marketers are looking to prove the value of every marketing dollar spent, their agencies have an opportunity to provide an immensely important new dimension of value by helping their clients develop and test leading indicators of brand success.  Far too many agency-client relationships begin only with a “scope of work” instead of an understanding of “scope of value,” a clear distillation of the desired outcomes that combines both lagging and leading success metrics.

Knowing the metrics that matter should be part of the intellectual capital an agency brings to the relationship it has with its clients. By measuring what matters, brands can make limited marketing dollars go much further in these economically challenging times.

Ray Baird is President of RiechesBaird

Why now is the time for executives and leaders to closely re-examine the health of their organizations and brands

Face it, 2009 was over for most businesses in October of 2008. The financial crisis, capital crunch and brittle confidence of customers caused business strategists and planners to pull back any future investment considerations in 2009. Everyone froze, waited and watched. We’re still watching. Now is the time to start leading.

Most American corporations have had to seriously re-invent or re-engineer themselves operationally just to stay alive and relevant in their markets. Flat became the acceptable up. I don’t know of one CEO that hasn’t been forced to make significant changes or make fundamental shifts that may have taken them many years to complete if not for the financial crisis.

Bottom line, American businesses have been bent out of shape. We’re out of alignment. Bordering on tampering with irrelevant value propositions. The broken promises of iconic brands have driven customer confidence to an all time low.

If American business is going to re-cover or re-bound in the near future, CEOs and executives need to quickly assess what the last months have done to their business and get down to serious creative planning for 2010. Start by driving your 2010 planning process with fresh, relevant insights. You don‘t have to over complicate your thinking process. Make it simple. Start by asking yourself a couple of revealing questions:

1. What have we become?
2. What’s possible now?

And remember, think Big. Use this opportunity for positive change.

So…

1. What have we become?
Start with the internal realities.

Here’s a mind-set to consider. Throw out most of what you have learned about your company. The most important information is about “Now,” and the current perception and ability to deliver on a differentiated value proposition. Don’t rely too heavily upon historical data to drive your moving forward strategy (too much has changed). Now is the time to get a quick fresh perspective, and you need to start with getting a handle on internal realities. If you don’t have a clear handle on the internal perceptions how can you attempt to articulate the moving forward strategy? Get current quick. You have to know where the organization is misaligned in order to repair it. It’s the major premise of this blog post, and it’s not that difficult. Start with a simple survey to understand the view of the organization as it relates to strategy, structure and execution. Create your own survey at www.surverymonkey.com or reach out to existing tools such as www.strategicbrandassesment.com. Bottom line, you need to drive the strategy from a fresh, contemporary and quantitative point of view. The results from this exercise should be your platform for developing an internal operations strategy for success and an employee communication plan to re-engage employees.

2. What’s possible now?
You’ve got to be current.

Look back at your strategic plan before October of 2008. Does it look a little different today? Of course it does. Think about the people you had then and who is supporting you now. That’s why it’s critical to articulate a convincing moving forward strategy based upon current views of what the market is giving you today and where you want to take your business in the future. Start by answering a few fundamental questions that will guide your thinking:

a) Are we in the same category of business or has it changed? Conduct competitive mapping.
b) Is the current value proposition relevant? Explore new positioning.
c) What is the market saying about us? Conduct a perception study to determine the right brand strategy.
d) Do our customers still love us? Conduct a customer loyalty study so you’re not caught off guard. Develop a specific customer communication (lifecycle) plan to insure alignment.
e) Is the sales force engaged and telling a consistent story? Just interview them, you’ll know.

With these fresh insights you are ready to enter 2010 planning with a clear understanding of the health of your organization. Remember before you can fix anything, you have to know what’s broken and what’s working well. Who knows what 2010 will bring, nobody has a crystal ball, but if you start by asking the right questions, you’re bound to find new intelligent answers.

But that’s just my opinion, what’s yours?

Ray Baird is President of RiechesBaird

Ok, it goes without saying that every B2B company marvels and envies the “Intel inside” story.  I can’t tell you how many times prospects and clients have referenced this B2B success, not to mention the numerous Intel employee stories and variations on how this success was created and achieved.  It’s an OEM marketer’s dream to create such brand preference, demand and value.  For B2B technology companies it is—– Brand Nirvana.

But somehow, throughout the 15 years since its conception, Intel’s brand strategy/architecture lost its way.  The original idea of simplicity and value creation was lost in the multiple names and brands that squeaked their way into the primary brand’s strategy and positioning.

But Intel is not alone; this is a common problem that technology brands run into.  Product managers and marketers think they have to have a name/sub-brand for every new product and platform they dream up.  Then, all of a sudden they have brand confusion and dilution.

But why?  Mostly because marketers don’t formalize their brand architecture strategy and give it the attention it deserves.  Alan Brew, a colleague of mine wrote an article on this subject and nailed it perfectly.

“The problem with brand architecture is that it’s such a fuzzy term and every organization has its own meaning.” Or more frightening, no meaning at all.

Old Intel Inside Logo

This brings me back to the Intel Inside strategy. Recently Deborah Conrad, Vice President of Corporate Marketing has made changes to the strategy by reducing the number of brands and introducing “modifiers” into the core brand which signal different features and benefits.  See Video

I applauded her intentions.  It’s an interesting concept and you should check it out.  But in my opinion, this has replaced complexity with a whole new set of issues.  I’m a strong believer in simplicity and single thought.  Trying to differentiate the company, the positioning of “Intel Inside”, and product differentiation might be too much for the audience to digest.  In my experience, simple is better.  People can only remember so much.  Keep product positioning strategies separate and brand strategy pure. That being said, I’m sure Intel will do just fine.  Who’s knows, maybe this is the first step towards getting back to the  simplicity and originality of the idea that helped shape the company in the first place.

But that’s my opinion, what’s yours?

By Tim Price, V.P. of Verbal Strategy at RiechesBaid

Admittedly I’m late to the game on this one. Although I just discovered Cisco’s foray into The Realm, it’s been live since March. So, while this isn’t a timely review, I felt it was appropriate to review such a valiant creative attempt.

Here’s the background. The Realm is an animated saga that dramatizes enterprise threats and pushes Cisco’s security solutions. The Realm’s episodes are produced using the comic book, er, graphic novel illustration style. The storylines revolve around a cast of “Defenders”—stereotypical comic characters right down to the blonde, buxom heroine in a skin-tight bodysuit named—wait for it—Vixa. Her special talents include sound-wave manipulation and subliminal encryption, although I’m sure she possesses others in the minds of her audience. The Realm is a techie’s wet dream. It plays into their love of the genre, tells a relevant story in dramatic fashion, and it has the “cool” factor that’s lacking in so many of the industry’s marketing efforts.

My gut reaction to The Realm from a creative standpoint was one of appreciation—it’s well produced, engaging and original. But I’ve come to think that it feels just a little too easy. Meaning, the concept is a slam-dunk and the graphic novel style is a no-brainer considering the audience. I’m left with the sense this novel will soon lose its novelty. If it hasn’t already.

A quick online search for The Realm supports my theory. The top hit isn’t The Realm itself, but Cisco’s blog about it—beginning with a post from Marie Hattar, Cisco’s vice president who presumably presides over The Realm. Her initial post espousing this Web 2.0 approach is followed by only a trickle of other posts that span just one month. Even more notably, as the most recent poster points out, most of the comments seem to come from Cisco employees. So it appears that the blog was being used mostly as an internal mechanism to bump up The Realm’s search results. And The Realm’s FaceBook page? A mere 42 fans.

Not helping matters is Hattar’s claim that Cisco invented “a new genre of animation—mixing a comic book medium with 2-D animation.” That’s quite an assertion. I’m sure I’ve seen this more recently, but I immediately think of a cheeky music video created in 1985 for the Norwegian pop band a-ha and their classic 80’s hit “Take On Me.”

That little trip down memory lane brings up a good point. The music video’s concept (and intrigue) was based on the interplay between a real person and a cartoon character. In the Realm, we find only fantasy players—which lacks a connection to Cisco’s positioning as “The Human Network.” There’s nothing human about the Realm, unless it’s explained away as the imagination of humans. Using a fantasy world to illustrate (no pun intended) security threats to the enterprise has its charms, but I wonder just how effective it is compared to a real-world approach. Or maybe the combination of a real-world-meets-fantasy approach.

It’s difficult to say whether or not The Realm is a success from a marketing standpoint because I’m not privy to Cisco’s definition of success for it. But, at the very least, Cisco deserves credit for taking a different approach than the industry norm. And I’m sure it has its fans. 42 of them, at the most recent count.

Ray Baird is President of RiechesBaird

In the B2B technology world the question of “who is control of the company brand” would be answered traditionally in the following ways: Some experts argue the brand should be “owned” and controlled by the CEO and supported by marketing. Others believe it is the role of marketing to control the brand strategy and delivery of communications. And others might say the entire organization controls the brand. Bottom line, it really depends on the philosophy of the CEO or executive team. But I’d like offer a different point of view.

There has been a radical shift over the last several years as to who is really controlling brands. And if you guessed the customer and market, you are well ahead of the game. Think about it, the days of push marketing and market acceptance have been replaced with customers’ ability to socialize experiences, thoughts, interactions, perceptions and ultimately recommendations. You’ve seen all the facts: advertising is down, newspapers are going out of business, commercials are being passed by with digital recorders and trust with brands is at an all time low. I read an outstanding article in Strategy+Business entitled The Trouble with Brands. Its findings are sobering to say the least.

Bottom line, customers and consumers don’t trust most brands. Chalk it up to years of companies, brands and people not being honest, not delivering on their promises and the media sensationalizing every negative opportunity possible. B2B customers and consumers have now become a driving force as it relates to real time brand communication and interaction. One wrong slip up and your company or brand is spot and center. On the other hand, it also presents wonderful opportunities for brands to answer the new needs of communication and brand affection. Corporations and brands must face the fact that the ability to control their brands’ destiny must be managed a different way. So, how can B2B companies take advantage of this new era and reap the benefits of these new opportunities? Here’s a few things to think about:

1. Establish your philosophy. Let it be known.

First of all, CEO’s and executive teams need to get together to discuss this radical shift and determine a point of view and philosophy that can help drive the actions of the entire organization. Keeping your head in the sand is not a strategy. Understand the evolved Eco-System. If you haven’t mapped out the entire eco-system and how it has changed and is being influenced, you may want to step back and take a fresh look. You’ll be amazed at how customers navigate through the sea of choices and information. How you engage and respond is critical.

2. Start stretching. You’ve got to be flexible.

Just like any well conceived plan, you’ve got to have a fresh strategy that addresses these new rules. You can’t rely on traditional approaches alone. Remember, things change incredibly fast in this new world. You must develop a strategy that’s flexible and adaptable.

3. Take advantage of change. Rethink your structure and resources.

Step back and consider how you are structured to address the market. Now is the time to rethink the most effective and efficient ways to meet these new needs. Look for talent that understands this world or get your people educated. Your beliefs will set the tone for change.

4. Content is King. How interesting can you be?

No matter what anyone tells you, no program will be successful unless the content is relevant, fresh and impressive in the eyes of the audience. This is your point of differentiation. Your voice. Choose your content wisely. Pushing bad content or boring communication works in reverse. It will damage your brand.

5. Inspire

It’s not often we experience such radical shifts in business (especially in communications). Use this opportunity to create something wonderful. It’s your role to inspire people to think about the possibilities. Put your toes in the water, create amazing things. Amaze yourself.