Thursday, September 23, 2010

Strong Brands Are Clear About What They Represent

Successful branding clearly and simply conveys its brand promise, and makes it evident why this promise is relevant. These are the most essential components to successful branding building. According to Allen Adamson who writes in Forbes, that applies as well to products whose attributes are a bit more difficult to convey than cars and soft drinks.

Adamson was impressed by a recent campaign by Cisco, starring Oscar-nominated actress Ellen Page in slice-of-life stories with the citizens of Lunenberg, Nova Scotia. The campaign makes it clear how the Cisco brand connects people with the things that make life better, safer and healthier. One "welcome to the human network" spot shows, for example, how Cisco's IT equipment allows health care professionals to treat patients remotely.

Adamson also applauds BASF -- "The Chemical Company" -- whose branding is based on the idea that its chemicals are being used for good things like forming a plastic product that decomposes in weeks. "For those of us who couldn't make the connection between the initials and purpose of the company, the chemistry between branding and understanding is now right on," he says.

Finally, Aflac is doing more than quacking like a duck. Its latest branding initiatives, from television to social media, make sure we understand that it pays policy holders cash benefits when they are sick or hurt for essentials such as childcare. "Strong brands are strong because people know what they stand for and how they fit into their lives," Adamson concludes.

Monday, September 20, 2010

The Difference between Social Media and Social Networks for Businesses

It is important not to confuse social media and social networking — both terms are used interchangeably — with e-commerce, says Alan Radding, business finance blogger. With e-commerce, you put up a Web site for the purpose of conducting business, making sales, and generating revenue.

Social media is not overtly transaction-oriented. Rather, it revolves around content-driven marketing. For example, one large consumer packaged-food company put up a social media Web site. It does all the expected customer service things through the site, includes discussion forums for use by its customers, offers recipes and enables customers to share recipes, and provides ask-the-experts forums on related topics — all content-driven. However, the one thing you cannot do through the food company’s social networking site is actually buy its products. The closest it comes is providing a way for visitors to download discount coupons.

Social media generally avoid explicit commercial transactions. Instead, you create content with social media to build the business and the brand, everything from recruiting talent to rallying the faithful to countering bad news. (It will be interesting to see if and how Toyota leverages social media to rebuild its brand.)

With that in mind, here are 6 content-driven things that any business can and should do with social media:

(1) Establish presence. With hundreds of millions of active participants (Facebook alone has several hundred million registered users), you want continuous visibility among the people who are important to your business, be they customers, partners, or other stakeholders.

(2) Build rapport and relationships with specific audiences. Cultivate relationships with your important stakeholder groups through two-way communication.

(3) Establish your business as a leader and authority, by providing helpful and insightful content that can’t easily be found elsewhere, information people want.

(4) Engage prospective customers and partners interactively. Invite feedback and input, and be responsive, attentive, empathetic, and supportive.

(5) Listen and learn from your customers, supporters, and all your various stakeholders. Encourage constructive criticism, conduct surveys, and solicit suggestions.

(6) Build brand and company loyalty. Social media is an ideal vehicle to grow whatever loyalty initiatives your organization engages in.

Thursday, September 16, 2010

The Gay and Lesbian Demographic

The visibility of gay and lesbian consumers along with accurate research on their households and economic behavior, have grown dramatically in the past few years. Increased competition among companies for this market has also transformed a cultural trend into solid marketing and partnering opportunities. Without question, the gay and lesbian market offers brand loyalty and a consumer demographic whose value makes this segment too promising to overlook or mishandle. The gay market has more disposable income, and has a propensity for travel. There is a trend toward more diversified travel experiences, and this combined with discretionary income and a greater variety of options, puts the "gay market" in a league of its own.
Based on national population figures, the American gay and lesbian community represents a US $47.3 billion travel market, or about 10% of the U.S. travel industry. But it represents an even larger percentage of the overall travel market in terms of actual gay and lesbian dollars invested in travel.

The CVBs of Miami Beach, Key West, West Hollywood and San Francisco are reaching out to the gay market for groups and conventions. Perhaps this could be expected, but so are Philadelphia, Washington, D.C. and Minneapolis. The British Tourist Authority and the Australia Tourism Commission have participated in the advertising efforts of gay tour operators. The government tourism boards of France, Germany, Holland, Belgium, Canada, Puerto Rico and California exhibit at the International Gay & Lesbian World Travel Expo.

Tourism Québec has stepped forth to sponsor an ongoing "Visit Gay-Friendly Quebec" campaign to increase gay and lesbian arrivals to the province. This comprehensive promotion also involves the sponsorship of Air Canada and VIA Rail, as well as the participation of the tourist offices of Montréal and Québec City.

Why would all of these destinations encourage gay tourism? Because of the economically strong demographic profile of the gay community, but also because these governments want to encourage the rising popularity of their destinations among gay travelers recognizing the potential of increasing gay tourism market share through the implementation of effective promotional efforts. A recent focus group of leading travel agents serving the gay community agreed that the involvement of government tourism entities definitely helps support their sales efforts to reach the gay market, and makes a difference when a client is considering destination options.

When considering whether to market to the gay community, some mainstream tour operators have said "but we don't have a gay tour product..." However, gay and lesbian travel represents every 'shade of gray,' in terms of preference. Indeed, many gay travelers do prefer to travel only in large gay groups, or on gay-chartered cruise ships. Others prefer smaller group travel, identifying a desired destination and class of service first, and then seeking out a group tour operator. But the vast majority is traveling alone or with a partner or friends, looking for a "gay-friendly" environment and gay-friendly carriers, operators and accommodations. This is where mainstream suppliers will identify the greatest opportunity.

Many businesses serving the gay and lesbian market have ongoing community involvement programs. These businesses almost universally report that "being involved" leads to bigger profits and better morale among employees. Ultimately, profit comes from increased business. But business grows through increased customer loyalty and new clients, both of which result from an effective Community Involvement Program.