Author name: Shubranshu Singh

Cyrus Curtis – The American pioneer of publishing and king of magazines.

Cyrus Curtis’ publications – the ‘Ladies Home Journal’ and the ‘Saturday Evening Post’ led to the emergence of middle-class culture, give definition to women as purchasers and decision makers and pioneered techniques in advertising and marketing in the early 20th century. In 1904, the ‘ Ladies Home Journal ‘ became the first magazine ever to get to the circulation of over 1 million copies. More than 7500 magazines were started between 1885 and 1905 and half of them failed. Cyrus Curtis was the first to innovate in colour printing and to use two-, three –, four – colour printing. At one time his empire carried 40% of advertising expenditure for all magazines in the US. Curtis allowed content to be a means for target marketing.

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Modern-Day Politics And Its Changing Paradigm

To any electorate, the perception of performance matters as much if not more than the performance itself. They notice input, not intent and seem to reward effort, not outcomes. We live in a world of brands. Politics is no exception. Modern-day Indian democracy is a market place where agendas, ideologies and above all, charismatic brands are competing for share. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] A successful political brand is one that capitalizes better with the electorate. Indian democracy has been steadily witnessing to the ascendency of corporate style marketing management. The arrival of near-universal web access will accelerate this to record levels. To any electorate, the perception of performance matters as much if not more than the performance itself. They notice input, not intent and seem to reward effort, not outcomes. Voters punish the perception that the needs of the common man are not important to those who rule. On what basis is this perception currency earned for the political brand? Law and order, low cognizable crimes, high economic growth, ease of doing business, low inflation, faster employment growth, better living standards, industrial output and dozens of such indicators are ballyhooed into prominence as advertising artifacts. The perception battle has, however, now decisively shifted its focal point in our polity. From governance perceptions to personality associations, a Presidential style narrative is at play even in state elections and every result is adding or eroding individual charisma. In political branding, charisma ought to be seen in spectral terms – as personal magnetism – as an objective measure of social leverage, recognition, perceptual superiority, community standing etc. At its core is the personification of values through espousal. Certainly, factors such as personality, known trustworthiness and authenticity make voters gravitate to one or another. A charismatic leader is one who inspires you with his or her vision and has solutions to the problems. Being charismatic implies being possessed of high energy, performing actions ripe with symbolism and being seen as a visionary. Time is the main erosion agent of charisma and it needs to be constantly revitalized with sustained results. If a candidate doesn’t deliver and fails to live up to the expectations of the followers, charisma nosedives. Voters then look for someone who is different, with new qualities. As a ground condition, erosion is good because authenticity comes to play and folks want someone who won’t hesitate to tell them the truth. We live in a media hyped ‘personality’-driven world, where the connection with voters is heavily influenced by what people think of politicians and what they see of them. A natural magnetism allows one to connect with the masses but the operational challenge is to walk the talk and generate the same level of performance as magnetism. Erving Goffman, one of the most influential Sociologists of the 20th century and the father of ‘Impression management’ had the theory of dramaturgical keeping of persona in myriad quotidian interactions. The Latin word Persona itself means ‘mask’. To use Goffman’s construct, every public figure is also an actor in their own play. Each one gets to script the opening at the least. Their social image gets developed thereafter on basis of a social pact which is that the public accepts their self-presentation and judges actions against this persona based on tacit agreement. We know you are not who you claim to be but we are willing to accept the face value and judge your actions against this persona. Emotional connect has come to occupy a position of prominence when one talks about how brands are influencing our day-to-day lives. Even the worst political brands are agents of social change and their image enhances emotional connect thus making the product perform well beyond its stated functionality. That’s why perception often tides over reality. But this doesn’t last forever. Likewise, rebranding of politicians is done mostly riding on the emotional connect to help him/her improve appeal and ratings Political brands get greatly devalued when they don’t live up to the pre-poll tall claims or fall short of the promises on which they ought to deliver. The heuristics are the same as repeat purchasing for a brand. Elections are as much about the ‘electorate’ and here the declining group affinities, social fragmentation, material stresses, reversal of conventional stereotypes, emasculation of traditional authority totems have resulted in personalized politics. Collective actions have been replaced with individual expressions, often angry and polarising. This holds much relevance in our world where the politician is more popular than the party and the electorate is searching for some anchoring. Perceptions are built via intangibles – trust, emotional connect, story, priming, and mental conditioning. Contemporary political battles are fought as much in the virtual world (if not more) as they are in the real world. India witnessed the biggest election exercise in the history of mankind to elect the sixteenth Lok Sabha in 2014 when more than 553 million people – nearly twice of USA’s total population -exercised their franchise. This meant an all-time high of 67.7% voted.  The high turnout had much to do with the aspirations, the hope of the consumer-citizens with the poll promises made by brand Modi which fought this election on the plank of development, employment opportunities and elimination of corruption Out of the 397 million female eligible voters, 260 million turned up to vote in the election, which is almost two-third of the total. This was the highest and best-ever turnout of female voters in a Lok Sabha election. Gender participation came to the fore as a marker of assertion in representation. It was credited that Charisma alone cut across divisions of caste, language, region, community. To conclude, a leader’s reputation is no otherworldly or divine apparition. Instead, it is a manicured and carefully cultivated face. What it becomes eventually embodies and communicates collective evaluation of the masses. In the Shanti Parva of the Mahabharata, after inquiring about all aspects of war and statecraft, Yudhishtir inquires as to what is the most precious thing for a King. Promptly comes

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Apple and Its Diminishing Bite

At a trillion dollar, Apple is a wow that truly defies valuation. Yet the stock market is not sanguine about its prospects. Apple has its success and its failings to pin on one flagship product, the iPhone. The iPhone holds significant market shares in only three countries: the United States, the U.K. and Japan. Even there, its share is less than 50%. In China, it has hit all the hurdles and yet continues in the race. In Bharat, it lags behind for now. Anywhere else, its share is between 10 % and 25%. Globally, the iPhone has less than 20% of the smartphone market. Yet it has a crushing share of the same profit pool. How is this volume to profit mismatch explained? When one buys an iPhone, one is buying esteem and self-image. The high arc of its halo rises way above its performance, which is about the same as its competitors. Hence the performance per dollar paid is poorly off. It gives a blinding glimpse of the obvious, namely that the pricing power and value resides in the Apple brand rather than the functionality of its products. Apple is the world’s most valuable brand. Forbes’ calculations put Apple on top with its brand worth $182.8 billion, up 8% from last year. Samsung sold more phones worldwide than Apple did in the fourth quarter of 2017, but 87% of industry profits ended up in Cupertino. But, as Apple’s relative brand premium declines, so does its pricing power. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] It first manifest itself in volume shipments. There were declines in projected unit sales 46.9 million iPhones in the Q4 of fiscal 2018, same as a year ago, disappointing analysts. But, the average sales price per iPhone user has seen a big jump. Then one sees it in price labels. Apple introduced new versions of its MacBook Air, Mac mini and iPad Pro products. These were sequentially at much higher prices than their respective predecessors but they don’t do much more than the older versions. The inference is direct. Apple’s volume sale is stalling, and its profits increasingly reliant upon users who are willing to pay more. The root of this phenomenon is of acute interest to me as a marketer. When wealth and value creation rests on pricing power, like Apple’s, it means the value-pivot shifted from brand pull to extraction. Stock valuations rooted in extractive brand values fall. Consumer dissonance begins to act as gravity. But, the Apple story has some complex and unique enablers to its brand aura. First of all, the iEcosystem. Apple was always about the hardware, the insular software and the integrative services. Think iTunes or Apple Music, the App Store, iCloud and Apple Pay. These are just some of the things that make Apple’s services business its most important and fastest-growing drivers of revenue. Second, aesthetics and design. Apple had a string of hit products topping charts on design and user experience. Apple devices were perceived as being better in quality – and certainly in design – than competing products. Steve Jobs was relentless on winning via design and ease of use. When he died in 2011 of pancreatic cancer, that singular obsession ceased. Ever since, Apple has continued to be the dominant tech company in both market share and stock price however, Apple has become iterative rather than disruptive. The iProblem Apple is heavily reliant on the iPhone to power its financial success. The Apple that created value was a brand humanising technology. It got to a trillion dollars because there were built-in barriers for customers to move elsewhere and a sense of intense community love. When the revolution happened, new iPhones came with updates that could fairly be called disruptive and life-changing. The arrival of GPS, the development of app stores, streaming video – these changed the way we live our lives. Whilst advancements continue, the frequency of big life-changing features has slowed. Similarly, the continual need for extra processing power now follows the ‘Law of marginal futility’. With iPhone’s innovation funnel petering out, the other smartphone brands have got an opportunity to catch up to the baseline. Where are the bad phones? The trillion dollar value question for Apple is what are you really paying for when you upgrade? Apple had positioned itself as something “different”. Can that halo always rise over and above the technical specs? Apple has not been feeding its brand with singular, evocative, game changing ideas. It has done some work in showcasing customer experience into branding such as the ‘Shot on iPhone’ campaign but it was not a new pillar in building emotional connection. No matter how entertaining or creative your brand campaigns are, if there’s no emotional connection with your audience, your marketing strategy is likely to miss its mark. It is that emotional connection which has cultivated such brand loyalty among Apple fans, and enabled the company to get away with pricing their products so much higher than competitors. Apple needs to do what it once did well. It needs the same recipe where a Cesar Chavez, Gandhi and the Dalai Lama persuaded people that a Macintosh made them to “Think Different.” https://brandequity.economictimes.indiatimes.com/news/business-of-brands/apple-and-its-diminishing-bite/68171576

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Reputation and its pathways

Political reputation is a mystery. The reasons for it to wax and wane are seemingly arbitrary and yet we care intensely about our collective opinion. Good reputation, judged amass, percolates down to the deepest roots of our social existence. Fame or popularity is not alogical basis for action. Still, we act as per group judgement. It is a compelling evolutionary heuristic. As a marketer, when I analyze political brands in terms of perception, charisma, trust, I do so in a relativist sense. The reputation of a political brand gets created, stabilized and grown via a narrative that includes fact, gossip and anecdote.Mass perception is intuitive, extemporaneous and feeds on sheer optimism. Our sense of trust can precede a cold calculation of risks and consequences. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Whenever a politician faces reversals attributed to a bad reputation, it implies an erosion an of social capital, loss of network traction and a failure in mastering the hierarchy of influencers who mint, evaluate, grade and circulate such reputations. The pathway of elevation to power is helical. One gains reputation, then esteem, becomes honourable, gets chosen, wins elections and become empowered. These are precarious times and to strengthen our society and democracy, we need to think deeply about the formation and enshrinement of our collective opinion. Voters think they are vigilant, strategic and rational but act in credulous and irrational ways. The high ideal is to be inspired by emotion but validate with reason. Power and Validity are synonymous. The Latin root validus means strong, powerful and potent. Our complex world demands an evaluation of the basis of trust. Apply the rules of thinking to the rules for judging. We should be able to filter biases, distortions and manage the inundation we are subjected to. When thousands of people hear a speech at a rally, what transpires? Apart from the fluency, content and robustness what more are they gauging? Individually, our young voters don’t show deference to authority so constitutive of Indian-ness. As a mass, why are they mute spectators? Obviously, collectivism is at work in intentionality and intuition. Is this judgement of the collective, better? If I wanted to maximize my wealth, I ought to ask the best wealth advisor I may get access to. Instead, the opinion of a few friends may weigh more heavily. So, there is a pragmatic assessment, a moral assessment and an independently verified ‘truth based’ assessment that gets factored into crowd wisdom before they pronounce reputational judgements. Democracy pre-supposes that, given appropriate aggregation, choices and decisions are best made collectively and get better as more people weigh in. Aggregation is powerful. TripAdvisor or Google Translate or the stock market or the popularity meter of celebrities is based on exactly the same group vote. AI is sophisticated aggregation overlaid with statistical decision making. Group think on political brand(s) operates under two constraints namely the logical constraints of the mind and the social constraint on transmission of information.Now, both are being radically transformed by the info-dense access to the web. This access is unprecedented. Collectivism operates at a scale previously unimaginable. But a surfeit of information is paralyzing. Vigilant filtering seems waning rather than improving. Abundance is jamming our info processing and crumpling our meta memory. Indian culture innately accepts and respects authority. They are not subjected, first-hand, to a rational interrogation. Let us consider say, ‘ease of doing business’. A global ratings agency or body awards a score for India. Good or bad, it gets played out in media via newspapers, TV, e-journals, magazines etc. Each endorses or damns it based on, for the most part, their political leanings. Experts are summoned to opine on experts. In consuming this, we are far removed from the presumably rational first source.We get no down time to decipher motivated spin, factual inaccuracies or selective disclosures. This build up is breathless and enervating. We see reputation built or demolished via selective or fake news and outright pamphleteering. Propaganda is a double whammy. It allows persona construction and authority building while clogging channels of rational information sharing. It undermines democracy. There is hope. As a marketer of the digital era, beyond this degree of caution, I reject alarmist, paranoid theories of mind control. The dynamic world is much larger than the largest apparatus set to shape and control it. I am more concerned about cognitive intrusion than about cognitive load. A responsible, thinking individual needs to develop a competence in assessing the canalization of information. Forget veracity. Focus on the pathway. Evaluate the motivations and deduce the agenda of those who strive to make others credible. The future of our democracy, economy and civilization rests on our ability to collectively and critically assess the reputation of those who promise us what we do not possess. Let us not fail! https://brandequity.economictimes.indiatimes.com/be-blogs/reputation-and-its-pathways/3401

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The Data Dilemma

In today’s world privacy dilution often camouflages as a convenience even as it manipulates. With the ‘Jio revolution’ India has surged to the top ranking in growth, per capita usage, sheer cost and availability of data. There is no parallel in history for this. Yet, as the world sees the power and depth of data, we -as Indians – are mute about its social and political significance. The world is run on mobile devices. Artificial intelligence and adaptive machine learning will make the arrival of the data economy almost an evolutionary epoch. Everything in our human civilization is on a data map. From social sciences to physical sciences data is supreme. Commerce is directly read as data flow. Every time you swipe a card, make an online transaction, vote, give birth, pass an exam or die, you are a data point. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Our entire administrative, economic, social and behavioural ecosystem is data dependent and hence data mapped. Given universal access and unique identification data privacy and security is a matter of national importance. Privacy guardrails need definition in moral, social and legal terms. Sigma Privacy for the sum of all data points. Unfortunately, in India, the latent value of data isn’t recognized. Data is seen as record. It is perceived as messy, of shallow value, in terms of direct count and as a lag indicator. Data is not a bankable asset. It is not on corporate balance sheets. Consequently, those who hoard data escape scrutiny. Every set of data points has actual, combinatorial and deductive value. The irony is that data is scarce. Tools and ideas are available. Data is not. Data is proprietary. Yet, Indians give it away for free. Even to those who get it, data protection and privacy is about contractual sanctity, obligations, rights and remedies. Men have not considered dealing with algorithms. If you sign off your personal data, it is an individual and societal liability for which there is little redress possible. Even sovereign nation states and governments are helpless. Where does privacy rank in the spectrum of fundamental rights? Is it at the base of it all or is it, in essence, the fruit of it all? Individual assertion conflicts with affiliation. In the case of disease prevention, discovery, battling terror, fighting crime or detecting fraud answers emerge when aggregated from individual data. Where does privacy begin and end? If my actions are always measured, tracked, stored, analysed which is the permission gate? Should I permit measurement and tracking but not analysis or disclosure? Shall I permit current usage but not future possibilities? Just as the data talks to you about your optimal choices likewise, it talks about you to others. It reflects you as a type, a family, a community, a race, an income group and so on. You are data on the move and are being analysed as such. Privacy has poor recognition also because of its recent emergence as a concern and cause. All through 5000 years of Indian civilization, the right to ask questions and the prerogative to record responses was a sovereign right. The dangers of ‘data surrender’ is not as much in its primary intended purpose as in its secondary, mutating potential uses. Any two repeating data points tell you something about me. Each additional data point adds to my profile. Access to all my data is Me. The ‘notify and seek permission’ mode is the most legally kosher means to access and analyse personal data. But, how can you permit something if you can’t fathom what will be done with it? Marketers do not have individual liability for unintended breach and exposure of customer data. Next there is ‘anonymization’. But a name, by itself, is a shallow marker of identity. Your data stacks are more relevant. And now, combine that with the entire world of social connections. It’s a spider’s web of linkages. Data managers know personal information concerning all aspects of your life. It can be pieced together as a real time mosaic. It is acted upon for profit without any foreknowledge on your part. Marketing used to be about individual motivations. No longer so. After all, you are predictably the continuum and sum of your data. Indians get cost and value. They must remember that nothing is free. We may not be paying in currency but we are forever paying with data. Privacy dilution often camouflages as a convenience even as it manipulates. It can bore into the way we think. Try typing a google search and getting prompted. It’s reading you by reading many like you. There are two parties – the state and the corporation. A legally enforced definition of the right to individual data privacy needs both to act in concert. Corporations claim that they have private contracts where data and privacy policies are transparently exposed and willful compacts drawn up. But a right is a right only if it works for all. It cannot be surrendered. The state has to ensure that private force will not subvert that right. A digital future concerns us all. It’s like climate change. Everyone is a party here. Private accumulation of data is a sovereign risk. In the 19th century a private company of London merchants assumed similar sovereign status in India. Its name was the East India Company. https://brandequity.economictimes.indiatimes.com/be-blogs/the-data-dilemma/3376

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Did Tech Kill Good Ol’Creativity?

I joined Hindustan Lever as a management trainee in the year 1999. In the last summer of the 20th century, judgement and intuition were counted as pre-requisites for brand building. Instinctive acumen and an appreciative eye for creative were the core competencies. Hiring for these competencies and then training for skills was the mantra. How green was my valley then! In a period of less than two decades, the enormous change that has occurred has made the world an entirely different place. Its rapidity has been such that hardly any gestation was permitted. Even a cursory glance at the number of years of existence will show us how much has happened and how fast. Snapchat is 7 years old. Twitter not yet a teenager at 12. Facebook just into it at 14. Google is 20 as is Netflix. Amazon has been around for 24 years. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] With all-pervasive internet and mobile technologies the pace, scale and impact of creative stimulus has undergone a profound change. Multiple tools, humongous data sets, new combinatorial class of algorithmic assets and an always on ecosystem are expanding possibilities and automating delivery. We should applaud this development. For the first time in history, MarTech is allowing MarComm to be something better than an intrusion. The change is here. It is of mythical proportion but not apocalyptic. But if we are to evolve creative, some extinction is par for the course. The consumers and audiences are our allies. They are also making sense of a new world. As marketers, we must ensure our communication creates a pattern of meaning for them, in turn building brands. The brand is the explanation, the channel and the moral of the story all put together. Technology has allowed creativity to happen on a larger canvas. Both for craft as well as domain, the larger the universe, the more connections are possible. Manolo Blahnik may look at Goya’s painting and medieval gardens to find inspiration for shoes. Picasso’s exposure to African art made him pioneer cubism. Charles Handy married sociology, anthropology and economics to create management literature about corporate culture. Likewise technology allows more cross pollination, osmosis and synthesis. Creativity is about permutations and combinations. Technology accelerates the process. The entirety of human knowledge is available to all. Today each individual is a creator. It has led to a glut of imitative and inconsequential content but technology deserves huge credit for lifting the barriers that inhibit creativity. From the days of the first printing press to the studios of Hollywood every bit of content was controlled by a systemic machine. There were gatekeepers and owners. So, the creator had to be accepted by the bureaucracy that controlled the systemic machine before getting any exposure at all. Even past the gate, the content was surrendered to the system. Owned, fixed, immutable. Not to be touched or changed. The audience were powerless habitués with no rights. It made life so predictable and set. The world of ideas was crystallised, formatted, ordered, appointed and controlled by a few. What technology has done has rid it of being prescriptive. No elite machine processes it. The very concept of meme is about free replication and enhanced growth. Therefore Vincent van Gogh, Nikola Tesla, Franz Kafka or Richard Bach would not have had to face continuous rejection in this new world. Low cost attempt, high accessibility and rapid actualisation are now the norm. In this world, everything is in abundant supply and it is cleaning up advertising fed on years of lazy marketing. It is killing vanity, insincerity, puffery and gimmickry. The one irreversible change has been awareness, access, and transaction, all in real time. This has meant quick seek and quick serve. Shorter and even shorter creatives are demanded. Zero second video is a reality. Floods of big creative reservoirs have changed to drip irrigation. Always on. Never a flood. Never a drought. There has also been a welcome revolution in continuous measurement. It allows for ruthless re-prioritisation. Recognize that inertial, legacy minded attitudes are not an alternative. They are the highway to oblivion. Audiences will create their own media plans. Reach needs a marriage with cut through. A new suite of reskilled basics is in action. It spans art, copy, videography, editing, looping and story framing. The summer of 1999 seems a millennium ago. https://brandequity.economictimes.indiatimes.com/be-blogs/did-tech-kill-good-ol-creativity/3309

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Generalisation is Valuable and key to Brand Marketing

Marketing and brand building is that part of business management that most relies on robust generalization. It is maligned as a consequence and accused of being a non-science which ramps up costs but is neither effectively proving return nor accurately priming the investments. Broadly, generalization makes people feel marketing is based on hope and air. It is far from the truth. Here, I defend my tribe. The caveat , of course, is that I am also an advocate of deep analysis and , where possible, deeply biased towards deriving predictable deductive approaches with data. That said, marketers must depend on stereotypes and generalizations. It is a sound practice. It relies on a natural heuristics. Consumers of a type, like birds of a feather, flock together. We must find them in their majority. This approach follows a simple sequence. Marketing must understand the consumer need, own the need, ensure goods and services are made, tell the stories and scale the business to a profit. Then they must get both new and repeat loyalist consumers. Capitalism is the celebration of consumer sovereignty. Consumption as a choice and manifest will. Much is said about lone consumer segments. Till now, there are hardly any predictive analytical models explaining or pointing to anything more than a ‘Utility maximizing’ consumer typology. Exceptions don’t make or break brands. The common consumer type does. The majority moves the market. Therefore, so long as we have robust, empirically validated generalizations we can stop agonizing about the factual invalidity of the ‘odd one out’. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] The boundary lines between economics, behavioural psychology and brand building are ill defined and shifting. Brand building has a recipe that does not lead to absolute or invariant laws. Models and measurements are not core to marketing but moods and motivations are. That’s why marketing is about iteration and improvement . If it’s worth doing at all, it’s worth doing twice. Marketing is the study of stereotypes. Its method is commonsensical. Research allows us to stencil the average type. Research can be explained in rhyming verse If in doubt, find out. If you don’t, you wont. There are many elements in a flux. This includes media, consumer attitudes, impact of technology, purchasing behaviour. This only increases our reliance on a time tested stereotype. Although the means for aggregation and evaluation are more continuous and more powerful now than ever before, the complexity has also increased exponentially. A lot of the pseudo-probabilistic models being sold as nirvana are reliant on the old hogwash of  ‘just assume something, if no one knows any better’. Passed through the right journals and seminars, such models can delay the embarrassment of not knowing enough about the future, for those who are caught up as corporate honchos in managing today’s priorities. To illustrate the futility of variables analysis I turn, briefly, to the subject of brand loyalty: Do consumers have genuine loyalty ? Does the relative strength of a brand influence it ? Can a brand develop enough consumer loyalty such that its minority of heavy loyalist purchasers give it a sizable share in the market ? We know that brand loyalty is a fact, not fiction. The most useful generalization is that loyalty is co-related to immutability of the product and category. When product entries and generational changes are frequent, loyalty gets eroded . One has the example of Nokia and Blackberry to ponder over.  When a brand loyalist is a repeat purchaser he has also naturally been an intender. This has a bearing on communication. If such brand loyalty is high, advertising should be spikey and high impact so that new users are won over, and these folks will continue purchases and amortize the advertising investment. If, on the other hand, there is a shallow brand loyalty, advertising stimulus is required at a steady state such that extra sales pay for extra advertising costs. In any heterogeneous market, shallow and deeply loyal as well as unconcerned consumers exist in varying numbers. Therefore, the relevance of brand loyalty to the formation of a profitable program of market segmentation is key. The crux is that brand loyalist is a dependable, determined stereotype. In a competitive, hyper communicated marketing environment every brand caters to or targets certain ‘segments’ and not the whole market. The knowledge for defining these segments and how they differ in wants and predispositions from other segments that provide the bulk of customers for competitor brands is key to growth and success. The socio-economic and consumption characteristics included in any analysis make only a diffident contribution to the progression that leads to the creation of brand loyalists. Traditional demographics do not provide any roadmap. The ability to define a broad sketch stereotype and refine it as we go along is crucial. It shall determine promotional attention and investment to the right segments. It will allow for the right design inspirations. It will correct the timing and quantum of market activity. All this and more is achievable via robust stereotyping. I conclude that it is not about mathematics or poetry, unchallengeable science against transient emotions but about getting a definition of a set on which the mathematical models or poetry may apply. The generics are crucial, the specifics are, relatively, inconsequential.  

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For one or for all

At a recent interview at the Economic club of Washington D.C. , Jeff Bezos , now the world’s richest man owning 16% of the trillion dollar valued Amazon, was asked by David Rubenstein where he got the idea of selling books online. The answer Bezos gave was that he saw in the early 1990s that the internet  allowed universal access to books,  a category where choice was  cramped by physical availability because there were 2 million + books in print circulation at a given time whereas only at the biggest physical store possible you couldn’t have more than say 100,000 to 130,000 titles. He then took Amazon into music, videos, electronics, toys etc based on this underlying logic.. This set me thinking. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Amazon has beaten most of its competition with a simple philosophy namely of endless choice at lower prices. However, this middle land of branded choices and an economic rationale driving buyer behaviour may be outliving its compelling lifetime of share gain. The reason it ought to interest us all is that there is an underpinning of fundamental consumer psychology involved. For long, the eComm critics have said that its nothing exceptional to have bumper sales revenues if you sell a dollar for ninety cents. Now, a time has come when the economic argument tilts the other way. We now argue why eComm can or may be challenged. Click and mortar may need a more basic value definition. Beyond choice. beyond price and defined in terms of real value. Fashion, fragrance, cosmetics, food are among several categories that are evolving to high levels of customization and , at the other extreme, also regressing to standardised  ‘’no choice’’ commodity. If the alternatives are – ‘Only for me ‘ or ‘Pick any because all are the same’ then the very basis for choice mechanisms get defeated as does the confusion that can accompany it. This undermines the platform generic benefit of massive retailers like Amazon and Walmart. Let us take a look at the customized or bespoke : From food to wine, hiking, news , machine gear and hundreds of diverse categories there are now subscription service that sends members curated content or material which is relevant, pre- screened and paid for. Nestle is reportedly testing a diet program that collects blood samples from customers in Japan. From the DNA data, it sells them personalized teas and smoothies. Japan is the most varianted repertoire of beverages on this planet. Botox and beyond  , we know that application cosmetics are shallow when compared to the specificity with which DNA science can prescribe the exact timing, quantum and method of cosmetic and nutraceutical interventions required. Almost all service industries from airlines to hotels to wedding planners – the degree of specificity depends on the exactitude of details provided. More we demand exclusivity, the less there is an element of optionality. At the other end of the spectrum is the totally brand agnostic land of commoditised anonymity. What was once true of store brands in toilet paper, detergent, milk and other unbranded basics is now approaching gasoline / utility standard across all categories of CPG and consumables. It does not matter what brand since every one subscribes to the same standard. A minimum standard at a given price. A rather stark example of this molecular world of anonymity is a Silicon Valley startup, that pours meal replacement shakes into uniform, unbranded bottles for geeks who are too busy to eat. Interestingly, this has an implication on the concept of masstige which has deceptively maintained a veneer of choice. Frankly, these were not choices but permutations. One size fits all is not a fashion statement but a matter of getting the right snappy elastic bands ! Merchant giants like Amazon can aggregates data on an unimaginable scale and they’re coming in to take market share because processing that data helps their product development and sales strategy. However this is more true for the staples and basics . As a promotion machine, they’re going to promote their own content. In style conscious categories or outright high fashion, it may not be easy. Disruption is never impossible but is not easy here. The consumer –brand conundrum is that fashion brands are not inherently value and ecommerce majors cannot rely on very sharply priced products alone. Surely people will gravitate to and search for those but evolution upwards is what’s profitable The net takeaway is that brands cannot act as price or convenience challengers to ecomm marketplaces. Instead their path forward depends on expert curation, adding lifestyle expertise, developing community and relieving the burden of choice by becoming friends , philosophers and guides.

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Brand Image is a pre-requisite for Customer choice

An import from Psychology, the concept of ‘brand image’ became prevalent in marketing and advertising right from the 1960s. Though understood in various ways, at least three generations of marketers from the print era to the present day digital world have given it undeniable importance. Several types of brand trackers have tried to assess and weigh brand image with mixed success. The very fact that ‘image’ is key proves that reality is subservient to the image. It is no surprise that consumers are not rational beings. But imagery lifts above reality. Positively seen, it discounts shortcomings. On the other hand a poor image can mean that even self-evident truths are not believed. The pursuit for marketers is therefore to add psychological seasonings to the recipe.  Bottom-line is that the consumer’s behaviours, attitudes and beliefs shape a sense of right and wrong. That in turn is the coding they apply to brands. Image is what makes celebrity. Image is what makes voters line up outside a booth. Image is what makes repeat buyers block out contenders. If image was rational, it would never be called image. So the billion dollar question is “How does image get shaped and how are brands understood and decoded by consumers?” [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Brand image is the realm of imprecision but not make believe. An image is real even if not tangible. It is valued when people pay for goods and services. The lack of a positive image is damnation. Brand image is nothing but a complex set of associations and interlinkages which a brand may acquire with reference to a consumer. Everything encountered overtly or subliminally leads to a layer or linkage and impacts brand image. Imagery is a memory map. Hence brands also fade away. Communication is a creator as well as refresher of imagery. We must concede here that beliefs that shape image are not necessarily filtered for veracity. Truth is not a litmus test for image attribution. An image map consists of a related, integrated structure acquired over time. However, experience and trial may not be a necessary pre-requisite to entertaining an image in one’s mind. Amongst the many sources of brand image are of course the brand name, company name, advertising and media exposure, hearsay, retail memory, class of products associations, physical appearance and other uniquely identifiable attributes. As you may see, an image derived from experience is relevant only for a few of these headings. The essence of image measurement is to plot a brand in relative terms when it’s a free choice environment. Hence comparative ranking, absolute measures, verbal personification, numerical weightage and spatial ranking all play a role in deciphering brand image of one brand versus competitors. Attribute by Attribute , brand by brand we can arrive at a current standing. However, one never steps into the same river twice. Every moment, the ranking and relativities change. Over time, exaggerated differences normalize. Time tests brands. Now let me move to the one thing that most significantly shapes image, namely marketing communication.  The image we entertain of anything in our mind is in fact a reaction. It is an emotional response. When we get stimulus, it elicits our response. People respond differently to stimulus. However if one sees attitudes based on universal psychological stereotypes one is then able to get a broad sense of the attitude clusters and the images they are likely to form as a response to a given stimulus. Higher mental processes which encompass almost all commercial and economic behaviour almost never have mechanistic or auto responses because self-interest makes humans learn. This learning is an intervening variable.  Now, consider product experience. That’s an intervening experience. This in turn gets shaped by habit, motives, influencers. All of that colours how stimulus is perceived. The tone matters as does the semantics and imagery. Literal meanings are rarely taken at face value. People think and decode and they feel and emote. Attitude is a generalized view point whereas stimulus is specific.  There is a lot that happens beyond cognition and below the threshold of awareness.  We are for or against innumerable things. But the underlying reasons for our like or dislike are not entirely known to us either. Attitudes are ardently coloured points of view that impact action irrespective of whether they are rationally valid and unmindful of a clear awareness of their reasons that is why study of attitude helps us gauge direction rather than predict the magnitude of change on part of consumers as a class. Expectations, Intentions, notions are parts of the same continuum. A consumer’s opinion may be just as strong – or perhaps even more vehement – in areas beyond his control as it is in areas determined by his own action. I conclude by making a confession. In my experience, quantitative methods are lame when it comes to any Interpretive study of brand imagery. At best it will measure and rank consumer votes on attributes. Therefore a qualitative understanding of brand image needs to be more resolutely implanted in understanding consumer choice. Amen !

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Welcome to Lure of Memory

A brand is memory and the memory is the brand. This is a well-known circular truth but one that is not entirely well understood. A brand is born unknown. Memory gets developed over time. It takes decades, centuries and lasts across generations of consumers. The collective memory strengthens and accords the brand enduring social status and familiarity. More often, a brand stops being memorable, ceases or slows down activity, grows old, boring and is competitively outclassed. It fades from individual and collective memory. No memory, no brand! [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] There is a lot of science in tracking brand health which is very valuable to those who sell it. That science aside, the equity of a brand can be thought of as the sum total of the ideas, images and emotions that we associate with a given product or service. The ones we remember. Short term recall as well as long term memory. The issue of not understanding memory structures enough has to do with the planning horizon. If it is short term, then reflexive memory is the only relevant one. Therefore, whilst advertising, you must get re-call/unaided awareness and be amongst the top two or three brands in the consumer’s mind in terms of consideration set. Recency, spikey bursts of advertising, offers and incremental value to consumers can build immediate consideration and actionable memor. But, it does not build a brand. Stickyness implies how long the brand stimulus sticks in the consumer mind. But there is a deeper, more precious subliminal memory as well. This is the information or impressions that we are not consciously aware of. Once the memory gets encoded semioticallyit is declutched from any episodic activity and then the brand has made a true memorable impact. Take for example,  Roll Royce and elite affluence. Here, one doesn’t need to see a TV commercial or meet a promoter in a mall to know this bi-association. So, subliminal memory is dense and concentrated. We all know Coca Cola is about refreshment and happiness and Apple is for self-expression and creativity. But, there are billions of users of these brands. Exactly when did they form these impressions, store in their memories and arrive at a consensus? No one can say. What damages brand memory? Time is a stressor. There is an inherent fade in memory. Memory structures are very precious and powerful. Investment and effort not just ‘brand -talking to – consumer’ but also in the entire ecosystem needs to be put in. The voice, logo, packaging, design, sponsorships, alliances and of course, consumer sentiment all go into shaping and strengthening memory. Clutter and Distraction: The explosion in stimulus in this era is like never before in the history of human kind. Every meme gets trampled upon by the horde that follows. Memory is compromised. Programmatic pings are killing the stated need for creative sharpness. If in doubt read the S4 prospectus that Sir Martin Sorrell has released to the world ! Lack of Consistency: Erratic, impulsive, gimmicky and frequent changes of mood, message and materiality damage brands. Persistence, steadfastness, creative consistency helps build stronger memory. Better to be limited in scope and appeal but rock- solid in consistency. Look at Tabasco, Nespresso, Benetton, Body Shop as examples of diverse brands with deep connect, deep memory imprints. Hendrik Jan Grievink has created a game called “Brand Memory” that shows how a brand logo can acquire permanent local estate in your mind. Hendrik defines his field of work as “Visual culture criticism through popular and recognizable images”. That’s an indication of how memory can be dissected visually, textually and through all other sensorial faculties namely smell, sound, shape(tactile), taste and so on. Professor Byron sharp has suggested that brands inevitably become one out of 3 types viz- Repertoire, Destination or long term and he says mental and physical availability both have a role to play. To conclude pithily: Powerful brands own memory. Memories are built via stories. Stories are about experiences. Experiences cut into subconscious. Welcome to the mystique. Welcome to lure of memory. https://www.campaignindia.in/article/opinion-welcome-to-lure-of-memory/447532

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