Marketing has always been part science and part instinct. The marketing component is the purview of the numbers crunchers. Instinct is the fuzzier realm of gut feel, tempered by experience and judgment. It is often difficult for executives to navigate the turbulent waters of branding, which is part measureable and part elusively ephemeral.One thing is certain. A favorable and well known brand shows up on the balance sheet. There is another factor that is evident. Brand strength is not a permanent asset. Brands change, fluctuate and in some cases become time bombs that alter the course of corporate history. Think about Time Warner and AOL for example.
Word of mouth has always been a potent influencer of brand, for good or ill. Its importance has now been compounded by the Internet and its social networks. A recent survey of Internet users found that helping a friend or family member with a purchase decision was the most common Internet world-of-mouth activity. More than two-fifths of respondents said they shared advice offline about information they learned on the Web.
According to the experts, the attributes of a good brand are: it confirms credibility, connects emotionally with the buyer, motivates decision making, and confirms user loyalty. To dip into this pool of goodwill, marketers must understand the needs and wants of customers and prospects.
Viewing a list of the top 100 brands, it is apparent that virtually all of the names are well known to a large percentage of the population. The perennial leader is Coca-Cola, followed by Microsoft, IBM, GE, Nokia and Toyota. Other names near the top of the list are McDonalds, Disney and American Express.
There are three brands presently in flux that illustrate the changeable nature of a brand. Hyundai, once thought of as a low cost auto maker with questionable quality, was featured in Fortune Magazine. The headline: “With best-in-class quality, marketing hustle, and aggression that borders on recklessness, Hyundai is speeding to the head of the pack. It has given Toyota a scare, and now it is pushing its way into the luxury-car game.”
GE, once the most exalted of corporate Titans, is on the receiving end of a torrent of criticism. It is being punished for the fact that earnings have gone into steep decline, credit rating was lowered and dividends were reduced. According to Chief Executive Magazine, stockholder groups are calling for a change of leadership.
Finally Charter Communications, which is trumpeting its package deals on Internet, cable TV, and telephone, isn’t getting much positive feedback from its customers. Consumer Reports says Charter gets the most complaints of any of the big telecommunications companies. Clearly that is a wakeup call to management to pay more attention to service quality and customer satisfaction.