Corporate

Brand Strategy for Mission Driven vs Profit Driven Brands

How to Develop Brand Strategy for Non Profit Brands

How to Develop Brand Strategy for Non Profit Brands

We recently received a question from the Board Chair of a prestigious non profit foundation that supports basic science research around the globe.

“Is brand strategy different for mission driven organizations than it is for commercial organizations?”

It’s an important question for a few reasons. Many education and research non profits consider brand strategy to be appropriate only to commercial entities. Because “branding” is so tightly tied to “marketing” in most people’s minds, and many researchers consider marketing to be beneath them, “branding” is seen as a bad word (see our recent post Branding vs Marketing).

Other non profit brands, such as cultural organizations and international aid organizations understand the power of brand, and many use it to their advantage. Here’s how the approach to brand strategy is different, and important, for mission driven organizations.

Non Profit Brands: Understand, Believe and Support

  • Understand: Everyone involved, from internal to external audiences must understand the mission. People are most enthusiastic about the things they understand best. If they don’t really understand it, and what makes the mission uniquely important, they will never support it. For the strongest and most sustainable brands, you must start with a common understanding. Read how we helped the UC System create clear understanding of their mission and promise. 
  • Believe: Next, audiences must believe in the mission. It must be compelling.  It must be personally relevant. The organization needs to be able to show progress toward that mission, no matter how small. There must be some “there” there for a non-profit to motivate the types of behaviors and investments that will make them successful. A clear brand position, based on a clear understanding of the mission and supported by some proof is necessary to build belief. We helped a program in San Diego that teaches coding to kids inspire community-wide belief in their mission. The result is the League of Amazing Programmers, an aspirational idea that kids and their families want to be a part of.
  • Support:  This is clearly important when raising funds.  If your potential funding sources don’t understand you, personally relate to your mission or believe that you can accomplish what you’ve set out to do, they are less likely to help.  Consistent internal stakeholder support is also critical. In the non-profit world, especially in larger organizations, people may apply their good intentions in misaligned or counterproductive ways. The better they understand and believe what it is they are there for, the more likely they are to align their efforts in the right direction. Our foundational work for the World Wildlife Fund still inspires incredible support for their efforts. 

For mission driven organizations, everything hinges on clarity of the idea that makes your mission unique, meaningful and special.  Your brand strategy must be clear and valuable in the minds of your critical audiences. We’ve enjoyed helping many of our clients in higher education, research, and culture achieve positive and sustainable brand results.

Learn More About our Identity and Brand Strategy Services

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branding_v_marketing

Branding vs. Marketing

Sometimes our clients ask us, “What is the difference between branding and marketing?” The question arises because most people and organizations use these terms interchangeably. Unlike Medicine, Law or Finance, practitioners in the field of brand and marketing don’t share a common professional language. When one doctor says a patient is suffering from nephritis, another doctor will understand that the patient has inflammation of the kidneys. When one lawyer says he has an affidavit, another lawyer will know he has a written statement made under oath.

Ask 20 marketers what branding is, and you may get 20 different answers. To some it may mean creating a logo, to others it may mean developing an advertising or public relations campaign, to others it may mean initiating social media conversations. Because the term “branding” is used to mean so many different things, it doesn’t have a specifically agreed upon meaning. For some clients, especially higher education, we sometimes have to avoid the word altogether, because it not only misunderstood, it is looked down upon as “beneath” academics.

We make a point of telling our clients at the outset of any assignment what we mean when we use particular words, so at least, they’ll know what we are talking about. We fully recognize that others may use these words differently. We use them in this way:

A Brand – is the promise you make to your audiences. Strong brands are valuable assets, because when the promise is fulfilled, it creates an emotional response. Strong brands can create a preference or command a premium and assure a future stream of revenue. The name and visual expression of that promise is called a brand identity, because it gives you a way to identify with the promise being made.

Branding – is about positioning the brand to fill a need, meet expectations, build trust and develop relationships. It’s about keeping your promise differentiated, relevant, compelling and true.

Brand Strategy – is about determining how many brands you need and can afford to support, what each brand should stand for, and what relationships should or should not exist between the brands and the parent organization.

Marketing – is about finding and growing a market for the brand that leads to profitable sales, or in the case of non-profits, that leads to appreciation and support among key audiences.

Marketing Strategy – is guided by business goals, and involves segmenting markets, selecting target audiences, determining pricing, packaging and distribution, integrating media, and executing creative campaigns.

Consider a stand out brand like Nike. The Nike brand promise is to bring inspiration and innovation to every athlete in the world. “If you have a body, you’re an athlete” says Nike. This brand promise demands a diverse, creative attitude-laden execution across the many customer touchpoints. That is branding. Nike’s innovative use of celebrity athletes and digital, social, mobile and retail channels to engage with existing and aspirational athletes, is marketing. Nike’s marketing strategy is highly influenced by the brand promise and expression – and the resulting ads, promotions, communications and offers feel like they could come from no other sports brand.

Bottom Line: We define branding as making, communicating and delivering a promise. Branding is a long-term commitment. We define marketing as finding and connecting with the audiences who will most benefit from that promise. By its nature, marketing tends to planned out with shorter term goals. Marketing strategies and campaigns will come and go, but brands should endure. While definitions of branding and marketing may differ, it is important that people use agreed upon definitions of terms, to ensure that you meet both short and long-term objectives for your business.

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How to Turn Your Employees Into Brand Advocates

How to Turn Your Employees Into Brand Advocates

Your employees are your biggest marketing opportunity. Why? Because if they are engaged with your brand, they can be your number one marketers and boosters of brand equity. How do you convert this potential business-changing force into brand advocates? Achieving employee brand engagement was our topic at the last Silicon Valley Brand Forum.

Empowering employees as brand advocates is critical to successful brand evolution. When you change or evolve your brand identity, your internal audience is just as important as your external audience. Ideally, your employees are the engine driving brand transformation. For that reason, we ask every client to engage their employees when changing their brand identity.

Engaging your employees

To be effective, brand identity work must inspire employees as an idea they can rally behind. Quantitative research can give you data, but qualitative research helps you hear and feel culture from the key voices and the personalities who make it real. You can’t just change your logo and tell employees, “All right, everyone, fall in line and be part of this.” Your brand essence starts within your company, and employee brand advocacy requires investment, cultivation and authenticity. It also must capture your employees’ spirit and passion. If your employees are engaged, you will have a firm foundation for moving forward with change.

Four factors for empowering employees as brand advocates

A new brand identity should be both aspirational and authentic to employees. It’s essential that employees:

  1. See themselves in the new positioning
  2. Believe in the vision and aspiration behind the new identity
  3. Understand that the new brand has meaning and value
  4. Feel recognized for their part in adding value to the brand

READ MORE

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Ten Principles for Renaming, from Alina Wheeler’s Designing Brand Identity V | Marshall Strategy

Ten Principles for Renaming

from Designing Brand Identity, 5th Edition, by Alina Wheeler

We’re pleased to be included in the fifth edition of Designing Brand Identity, by Alina Wheeler. This comprehensive guide to brand identity is a valuable resource for designers, marketers, CEOs, brand builders and internal teams. For the new edition, we contributed a list of key principles to consider when renaming your product or a company.

Ten Principles for Renaming
by Marshall Strategy

  1. Be clear about why change is needed. You should have a compelling reason, and clear business benefits, for going through the name change process. Making a strong case for change – whether legal, market-based or other, will help rise above emotional issues and enable a more successful and meaningful effort.
  2. Assess the impact of change. A name change is more complicated than creating a new name because it affects established brand equity and all existing brand communications. You should conduct a thorough audit of equity and communication assets, to fully understand how a name change will affect your investments and operations.
  3. Know what your choices are. Depending on your reason for change, it can be very difficult to consider change in the abstract. It is much easier to commit to a change when you have alternative names to consider that solve your communication issues.
  4. Know what you are trying to say before you name it.  Naming is a highly emotional issue that can be hard to judge objectively. By first agreeing on what your new name should say, you concentrate your efforts on choosing the name that says it best.
  5. Avoid trendy names – By definition, these are names that will lose their appeal over time. Choosing a new name simply because it sounds “hip” or “cool” generally results in names that wear quickly.
  6. “Empty Vessel Names” require filling. Made-up or meaningless names will require more investment to build understanding, memorability and proper spelling than names that have some inherent meaning. Compare the immediate meaning and relevance of names like Google and Amazon to empty vessels like Kijiji and Zoosk.
  7. Avoid names that are too specific. This may be the reason you needed to change  in the first place. Names that identify a specific geography, technology or trend might be relevant for a period of time, but in the long run they could restrict your ability to grow.
  8. Understand that a new name can’t do everything. Names are powerful tools, but they do not tell the whole story. A name change alone – without rethinking of all brand communications – could risk being seen as superficial. Consider how new taglines, design, communications and other context-building tools should work with the new name to build a rich new story that you can own.
  9. Ensure you can own it. Check patent and trademark offices, common law usages, URL’s, Twitter handles and regional/cultural sensitivities before you decide, and make the investment to protect your name. This is best done by an experienced intellectual property attorney.
  10. Transition with confidence. Make sure you introduce your new name as part of a value-oriented story that conveys clear benefits to your employees, customers and shareholders. The message “we’ve changed our name” on its own generally falls flat. Commit to the change with confidence and implement as quickly and efficiently as possible. Having two names in the market at the same time is confusing to both internal and external audiences.

If you wish to make a meaningful statement, a name change is not enough. The name should represent a unique, beneficial, and sustainable story that resonates with customers, investors, and employees.

Philip Durbrow, Chairman & CEO, Marshall Strategy

Companies change their names for many reasons, but in every case, a clear rationale for change with strong business and brand benefits is critical.

Ken Pasternak, Managing Director, Marshall Strategy

Notable Renaming

Old Name

New Name

Anderson Consulting Accenture
Apple Computer Apple
Backrub Google
The Banker’s Life Company Principal Financial Group
Brad’s Drink Pepsi Cola
Ciba Geigy + Sandoz Novartis
Clear Channel iHeartRadio
Comcast (Consumer Services) Xfinity
International Business Machines IBM
Datsun Nissan
Diet Deluxe Healthy Choice
Federal Express FedEx
GMAC Financial Services Ally Financial
Graphics Group Pixar
Justin.tv twitch
Kentucky Fried Chicken KFC
Kraft Snacks Division Mondelez
Lucky Goldstar LG
Malt-O-Meal MOM Brands
Marufuku Company Nintendo
Mastercharge Mastercard
Mountain Shade Optic Nerve
MyFamily.com Ancestry
Philip Morris Altria
Service Games SEGA
ShoeSite.com Zappos
TMP Worldwide Monster Worldwide
United Telephone Company Sprint
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southwest culture

Culture Drives Brand Value – Where Will It Drive Yours?

I recently published an article in Inside Higher Ed describing five strategies of great brands, and how they apply to universities.

One of those five strategies is: brand inspires behaviors – you build a brand by being something, and letting that culture shape the way you behave and communicate. A successful brand strategy must lead to tangible behaviors, ways of thinking and acting that can differentiate you and your company in measurable ways.

Consider FedEx, Southwest Airlines, GE, and other brands that have become legendary for their corporate cultures. They all recognized the importance of defining and articulating not just their customer promises, but their internal behaviors for fulfilling those promises. Customer satisfaction and business success are the rewards that reinforce these behaviors, creating a cycle of growing brand strength.

A recent example of this is San Francisco’s own Salesforce.  Marc Benioff, Salesforce CEO, has fostered a culture of “Ohana” within the company, a set of principles that inspire everyday behaviors against which employees are evaluated. Ohana is a Hawaiian word with deep meaning, which translates very roughly as “extended family”. What it means is that all members of a family, and their greater community, support each other. This culture extends externally for Salesforce – their number one mission is “customer success.”

The emphasis on culture has major effect. Benioff recently said, “There’s all this incredible energy in your company and you can unleash it for good. All you have to do is open the door.”

With this attitude, it becomes evident why Salesforce is one of the world’s fastest growing companies, and is ranked among the “best places to work” wherever it has offices.

Compare Salesforce’s results, and the brand benefits they accrue, to recent events at United Airlines and Uber. These two companies have dominated the news cycles lately, for all the wrong reasons.  Within each story is a tale of bad behavior and poor choices, revealing crippling or even toxic corporate cultures. People who describe these woes as “PR problems” aren’t dealing with the core issue, the deep cultural flaws that threaten the very existence of these two companies.  When United loses $1Billion of market valuation in one day and Uber has over 200,000 customers deleting its app, that threat is clear and present.  These companies need to focus on their cultures at all costs, or they will lose any customer loyalty that remains.

We hope that more companies will take a close look at what promises they really want to make to their employees, customers and shareholders, and what those promises mean for how they act, speak, and treat each other – as well as their customers. Iconic, customer-centric brands like Salesforce and Southwest show strong evidence that placing a priority on building and living a positive culture results in loyal customers, healthy companies and strong brands.

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trump brand

Does Identity Trump Brand?

In reading “How Will Trump Rebuild His Brand? published through Knowledge @ Wharton, we need to think about Trump’s brand and his identity, and how both may affect his upcoming presidency.

It can be confusing when the word brand is used to mean so many different things. Brands convey a promise that people come to rely on. The Trump brand promises ornate, luxurious, exclusive products or experiences at a premium price. It attracts prosperous clientele that are drawn to these qualities and who can afford these experiences. It is an appropriate brand for up-scale products and properties, because it is very well known, and it can command a premium price. Hence the brand has value to properties not even owned by Trump, and for which some product and property owners have been willing to pay a royalty.

Identity is different from Brand. Identity is about the reality of a person or company – who he, she or it really is – where brands are externally driven to appeal to others, identity is inner-driven. Identity flows from the reality of who the person or organization is – their innate driving force. Identity is bigger than brand. The identity of a corporation, organization, individual, or even a presidency may develop several “brands” aimed at different audiences. It can be especially powerful if all the brands stem from or reinforce the identity. The identity of Proctor & Gamble is characterized by a singular drive to provide quality household products that improve people’s lives. This is their driving force, but P&G has many brands (Crest, Tide, Pampers, Gillette, etc.), all shaped to appeal to different external audiences, yet all reinforcing P&G’s identity.

Donald Trump’s identity is more multi-faceted than his luxury brand. Trump’s identity should not be confused with his luxury brand. If Donald Trump’s drive for power is sincerely about populism, uniting the country and creating prosperity for all, and if he delivers on these goals, President Trump will be recognized and appreciated for not just luxury goods and properties. To accomplish his objectives, he may need to create a healthcare brand, a tax reform brand, a foreign trade  brand, and other “brands” shaped to appeal to different audiences. And these brands should all reinforce and deliver on his drive to “Make America Great Again.” If they don’t of course, all of these brands will lose credibility along with the presidential identity.

In conclusion, it is not only possible, but necessary, that a president serve many different audiences, and good branding can help, but the Trump luxury brand alone is not enough. What matters most is Trump’s Identity, who he really is, what he truly cares about and what he aspires to accomplish.

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Bank Relationship

How would you define your Relationship with a Bank?

Timothy Sloan is replacing John Stumpf, as the new CEO of Wells Fargo, due to the bank’s inappropriate and, perhaps illegal, cross-selling practices.  In the October 13 Wall St. Journal, Sloan is quoted as saying,

“I don’t believe that strategy was fundamentally flawed. We are not abandoning our cross-selling focus. Cross-selling is shorthand for growing relationships with our customers.”

This shows a serious misunderstanding of what “relationship” means to Sloan and to the Wells Fargo organization. Only a banker would say that their relationship with their customers is based upon how many products the bank can sell them, whether they need them or not.

A relationship to most people involves some kind of human connection. A positive relationship is one in which people regard and behave toward one another with respect, understanding, and truthfulness. Strong brands are built on individual connections, not financial transactions, but most big banks seem to get this wrong. Perhaps this is why most banks typically rank very low on brand satisfaction surveys – they are focused on the wrong kind of “relationships.”

Wells Fargo and its new CEO need to give some serious thought to what is needed for the bank to truly serve its customers’ needs. They should change their focus on building the bank’s income and instead focus on how customers might define a profitable relationship. That is how we would recommend Wells Fargo make its next efforts to become appreciated, profitable, and to a grow a lasting brand.

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wells fargo

What happens to a brand when a CEO leaves?

The answer is, it depends. On the:

  • Stature of the CEO in the business community
  • Perceived influence of the CEO on the company – good or bad
  • Swiftness with which a respected replacement takes charge

The recent resignation of Wells Fargo CEO John Stumpf could mean one of two things for the Wells Fargo brand:

  • The company is in trouble and his resignation is symbolic of a bigger problem
  • His resignation signals Wells Fargo’s commitment to fixing what is wrong, and is therefore good news

To employees, investors and customers alike, a CEO’s resignation might result in the loss of some trust in the company, the loss of some competencies and valuable connections the CEO acquired while in office, the loss of some institutional memory, and a potentially demoralizing impact on the organization.

However, these consequences may be overridden by showing that the organization has strong principles, that it holds its executives responsible for their actions, and that it is taking steps to prevent similar problems. The departing executive takes the perceived problems of the organization with him, while the new executive starts with a provisional slate.

When our client Boeing had to let its CEO go in 2003, the action created an opportunity for Boeing to reframe its story and deliver a bigger, more positive vision for the company. By drawing attention to a broader promise and a renewed commitment, the loss of a CEO catalyzed the brand’s ascendancy.

In other cases, the CEO embodies the company brand, and his/her departure signals a major change in the brand’s promise. Virgin America is a shining example of this – while Richard Branson was not allowed to be CEO of the U.S. based airline, he was every bit the personality of that brand. The sale of the company to Alaska Airlines, and Branson’s subsequent departure from the scene, has investors and customers very worried about the future of their beloved airline. Virgin America has done its best to reassure customers through communications and consistency of experience that their brand promise is here to stay. Like Wells Fargo, time will tell if they can fulfill that promise.

Our advice to Wells Fargo in this time of transition is to commit to a new story, invest in making a renewed, valuable promise to your customers and deliver on that promise in actions, not just campaigns. Seize the opportunity to make the brand stronger, rather than just hoping this loss of confidence will be forgotten with time.

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It Never Pays to be a Copycat

It Never Pays to be a Copycat.

A recent WSJ Article trumpeted “Copycats Rule the Skies.” It was about how the three largest U.S. airlines have all become so much alike.

Why are the Delta, American and United brands so much alike? Patrick Moynihan, the former Harvard professor and U.S. Senator had a theory called, “The Iron Law of Emulation.” His theory held that nations that competed against each other became more and more like each other. This certainly seems to be the case with our airlines, hotels, banks, etc.

Moynihan pointed out how the U.S. and Russia once emulated each other: We got the bomb, they got the bomb; we got intercontinental missiles, they got intercontinental missiles; we got nuclear submarines, they got nuclear subs, and on and on.

During my 20 years at Landor, we designed the brand and identity strategies for dozens of leading airlines. Our purpose, always, was to differentiate each airline in a way that was relevant, true and compelling. To create a preference or command a premium, we built on each airline’s unique brand characteristics which were often its national characteristics: British Air was about their understated global competence. Singapore Air was about the pride that Singaporeans take in providing personal service. Alitalia was about Italian style. Hawaiian Air was about sunshine, flowers and relaxation. These identity strategies influenced all the decisions each airline made. Whom to hire, how to train, what kind of fleet to operate, and what passenger offerings and style of operations would reinforce their particular identity.READ MORE

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One word is critical to M&A Success – CULTURE

One word is critical to M&A success – CULTURE

We learned last week that Hewlett Packard Enterprise is merging its enterprise services unit with Computer Sciences Corp (Read the full story). This is a perfect opportunity to talk about the consequences of mergers on identity and brand, and how having a solid strategy for both is key in your merger’s success.

Research has shown that as many as 83 percent of mergers fail to achieve their original business goals. Brand value, or goodwill, suffers right along with business value, often destroying the appeal and premium that might have inspired the acquisition in the first place. Why is this? Because culture, and the purpose behind each organization being combined, is often ignored in favor of the numbers.

These deals are put together by attorneys and investment bankers, who fail to consider the cultural implications of the merger. These people think in terms of “synergy” and 1 + 1 = 3, when the real goal should be 1 + 1 = 1.

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