The Importance of Reputation

October 20, 2009 Leave a comment

“It takes many good deeds to build a good reputation, and only one bad one to lose it” –Benjamin Franklin

Long gone are the days of covering up consumer criticism just by throwing advertising dollars their way. Such a top-down relationship no longer exists. Brands no long control the medium, the message or the conversation; consumers have complete control of the brand.

The impact of such a shift is tremendous. It means that brands must be honest, ethical, consistent, and transparent in order to maintain their reputation.

Filed under Branding, Word of Mouth Tagged with , , , , , ,

Perceptions 1 Products 0

September 5, 2009 Leave a comment

In my last blog post, I described how, when it comes to branding, perception is reality. A brand’s perceived value has greater influence on customers than the product itself.

I want to continue on the topic of perception. Many traditional marketers believe that marketing is a battle of products, where the best product wins. This logic is simply wrong. A brand’s success or failure has nothing to do with the product and everything to do with perception. In fact, that is the sole objective of marketing, to manipulate perceptions.

Let’s look at Audi to see the power of perceptions over products. No carmaker has introduced more advanced technical innovations than Audi; features including fuel stratified injection, all wheel drive, and multimedia interface. Despite all these innovations and a “superior” product, Audi is not the leading luxury car brand. They trail Lexus, BMW, and Mercedes-Benz.

Why is this? Because it is about perception, not the product. Even though Audi may be the leading innovator, Mercedes owns the word innovation and engineering in the consumer’s mind.

Perceptions 1 Products 0.

Filed under Brand Perception, Branding Tagged with , , , ,

Perception is Reality

September 3, 2009 Leave a comment

Do you remember a time when you made a purchase that you thought would help your social status or make you better at something? I remember getting my first pair of Jordan’s when I was thirteen. I wanted them because I thought they make me a better basketball player.

As ridiculous as it sounds, they did; I ran faster and jumped higher. I realize now that it was not because these shoes were any better than my previous pairs, but because the brand position of Jordan’s told me that I would be better at basketball.

A joint study by Cal Tech and Stanford used functional MRI to monitor what happens to brain activity when perceived quality is altered. They found that consumers experience greater enjoyment when they perceive the brand to be high quality or premium- even if the product itself is inferior.

This is an important lesson that many companies forget. Perception is reality. How you position your brand has more impact on your customer’s experience than the quality of the product.

Filed under Brand Perception, Branding Tagged with , , , , ,

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