Eight for ’08: Brand and Marketing Trends

It’s been said that all the evidence shows that God was actually a gambler. That the universe is really just a great casino, where dice are thrown, slot machine handles are pulled, and roulette wheels spin on every occasion and for every event. And, over a large number of bets, the odds even out, so mathematicians and scientists can make predictions.

But marketing is different; Brands and marketing don’t always abide by the laws of the physical universe. That’s where having loyalty and engagement metrics that measure the consumer universe come in handy. Properly configured, they can measure the direction and velocity of future consumer values. Often 12 to 18 months in advance. And they can be applied to brands, media, and creative with an accuracy that would get you barred from a Las Vegas casino. Having examined these measures, we offer up eight trends that will have direct consequences to the success – and failure – of next year’s marketing efforts.

1) There will be an ongoing emphasis on “engagement” measures.
It’s been proven that real engagement is the outcome of any marketing or media initiative that substantively improves a brand’s equity. And “brand equity” is the degree to which a brand is seen to meet – or even exceed – consumers’ expectations for the category in which it competes. This is getting harder and harder to measure using models that had already lost their efficacy in 1985, and when you combine that with the power of today’s “bionic” consumers, born hot-wired into the Internet with an iPod in one hand and a TiVo controller in the other, engaging them will be the only way of guaranteeing loyalty and profitability.

2) More “brands” will become “Category Placeholders.”
As brands become more and more enamored with and enmeshed in “new” media like social networking and messages beamed into consumers’ living rooms from outer space, marketers need to ensure that their brands actually stand for something in the mind of the consumer. Media planning is necessary and sometimes even engaging, but those who rely on flavor-of-the-week tactics will find that they are forcing their consumers down pathways where only price will differentiate their well-known products from the competition, moving from brand status to Category Placeholder. That will be a risky place to be next year!

3) Companies will have to move from saying they’re ”Green” to actually being “Emerald City Green.”
Playing in the environmental arena won’t be an option in 2008 and brands and holding companies will have to find ways of positioning their offerings in ways that meaningfully support a sustainable future. But as the number of companies trying to co-opt the environmental movement for their products and services grows, so too will the number of skeptical, “bionic” consumers. They’ve heard these promises before, and in the face of business-as-usual puffery, will demand authenticity – much in the same way proof was demanded in “The Wizard of Oz”: brands will have to be “morally, ethically, spiritually, physically, positively, absolutely, undeniably and reliably” green!

4) Media planning will become more touch point focused and personalized.
Planners will still classify touch points as “above-the-line,” “below-the-line,” and “new,” but planning will be based on three critical considerations: a) which touch point best reinforces brand values, b) where the brand + media equation yields real engagement, and c) where the plan is seamless, believable, personalized, and authentic.

5) Behavior will (finally) trump attitude.
More marketers will come to realize that “to know you is not necessarily to buy you” (or, for that matter, even like you). Loyalty and engagement metrics – particularly those configured to provide brand-to-media engagement measures—will be used to identify behavioral “hot buttons” that marketers can add to their toolboxes and their search efforts. Identifying behavioral consumer segments will then be used to synergistically reinforce brand values, brand and corporate positioning efforts, and media planning, making marketing more effective and efficient.

6) Consumer expectations will once more grow.
Brands are only barely keeping up now. Expectations remained stable for a short time, but only while consumers were catching their breadths and adopting –then devouring – the newest of the new technologies and innovations. Watch for smart marketers to identify and capitalize upon unmet expectations via values like “customization” and “personalization” via more (and more) high-tech capabilities to differentiate themselves from their competitors. Watch for mobile marketing to make a real move in 2008.

7) Personal health management will impact brand engagement and loyalty.
U.S. obesity is at an all-time high, with Americans among the fattest people on earth. This increase is primarily the result of consuming more calories, that behavior the direct result of technological innovations making it possible for food to be mass/fast prepared far from the point of consumption, and consumed with lower costs of preparation (even if you factor in marketing costs). With obesity (and, tangentially, awareness of obesity) rising at an epidemic rate, consumers will engage with brands that offer up healthy eating options. Watch for the “bionic” consumer to take control of their health, their weight, and their diets, weighing in with stronger loyalty bonds to products that offer “low fat,” “organic” and “low salt.”

8) Innovation and loyalty will matter more.
> What is clear is that the ever-expanding universe of brands will require an informed action plan – one that makes sense to the people on the brand and marketing side of the equation, but one that also accurately identifies and capitalizes upon what people on the consumer side really feel, really want, and really believe.

Accommodating these trends will require a paradigm change on the parts of some companies. But keep in mind that change is the process by which the future invades our lives. And whether you do something about it or not, the future is where you’re going to spend the rest of your lives.

In the short-term we’re also predicting a happy, healthy, and prosperous holiday season for you and those you love.

See you next year!

Robert Passikoff, Ph.D. is the founder and president of Brand Keys, Inc.