Brands can deteriorate quickly without innovative and fresh ideas.
“If you don’t innovate, you run the risk of (becoming irrelevant), or certainly dying,” Roger W. Adams, senior vice president and chief marketing officer, The Home Depot, Inc., said yesterday at the 2007 Association of National Advertisers Brand Innovation Forum in New York City.
According to a recent ANA study, 75% of respondents said brand equity is key to a company’s success, and people’s perception of a company plays a critical role, Adams said in a discussion on the findings.
Some 41% of people said the key to building a brand includes developing products, followed by advertising and marketing communications at 20% and customer service at 14%. Marketers identified top companies, including Google, Apple You Tube and Starbucks as “young and strong” brands. Coke, Nike and Target made the list as “well established and strong” firms, the survey found.
Television is the most popular medium to promote a brand cited by survey takers at 76%, followed by magazines at 76% and banners ads at 56%.
“Television is an important way to connect with consumers on an emotional level,” said Katy Frohling, senior vice president, brand strategy, Wells Fargo, an ANA panelist. Blogs, too, are another crucial element, she said.
Panelist Frank Cooper, vice president-marketing, Pepsi Cola North America, agreed that television has merit, but added it depends on the product the company is trying to sell.
“We don’t look at individual media,” Cooper said. “We start with the big idea. It might be TV, it might be on the Web. Where can it live? It’s got to add value to the lives of consumers.”
While brand awareness is important for any marketer, Frohling told colleagues, “You shouldn’t rest on your laurels. Ninety percent of people could be aware of you, but they could have the wrong impression.”
Rather, companies should ask the question, “are you relevant to your customers?” Frohling suggested.
What are the warning signs of brand deterioration? Topping the list was slipping customer conversion or repeat rates versus the competitor at 70%, followed by a fall off of “excellent” brand ratings (68%). Other signs include a dropping net promoter score, growing disparity between customers ratings and the company’s brand goals and
selling product at a discount or price reduction.
Companies can take action with product innovation, the survey found at 87%. Another 74% said refocusing marketing efforts to grow a firm and exploring new targets (74%) were other top methods.
Some 67% of respondents said marketers should conduct a root cause analysis and another 66% said deep qualitative research was needed to help rescue a deteriorating brand, the survey found.
Pepsi’s Cooper left attendees with a piece of advice no matter what stage their brand is in: “Keep pushing forward,” he said. “Keep pushing along the edges.”
The ANA surveyed some 300 marketing professionals in February.
Network
