7 Rules of Marketing that Get Results

by Temel Aksoy

  In truth, the experience a person has with a brand is inherently multidimensional. They may be happy with the product they purchased but unhappy with the behavior of the salesperson, the wait at the cashier or some other aspect of the experience. Asking a person who buys a brand to rate their experience from 1 to 10 forces them to make a generalization, which isn’t usually an assessment that companies can benefit from.

  Furthermore, NPS measurements vary widely from one period of time to another, and companies have difficulty explaining these fluctuations. Even in situations where there has been no change in the product or service, NPS can fluctuate widely over time. A research company that’s expected to explain this situation will be unable to give a satisfying reason because it has no information that would explain the change.

  In his 2003 article, Reichheld not only recommends this method, he also claims that companies who use NPS can predict their future growth by looking at the NPS scores. However, the study he pointed to as proof of this claim wasn’t one that demonstrated a cause–effect relationship. In the study, Reichheld first selected growing companies and then looked at their NPS scores. He posited that companies with high NPS scores will grow. This proposition is nothing more than a truism. All of these companies had achieved success because they had done multiple things right at the same time, and, as expected, their NPS scores were high. As everyone knows, correlation between two sets of data does not mean there is a cause–effect relationship.

  There is no evidence in Reichheld’s study that the reason growing companies are successful is because their products and services are being recommended. Byron Sharp says that the NPS method recommended by Reichheld is nothing more than snake oil.

  After Reichheld’s article, the most important study conducted on whether or not NPS scores could predict a brand’s growth was the study by Timothy L. Keiningham, Lerzan Aksoy, Bruce Cooil and Tor W. Andreassen in 2008. The authors studied 8,000 customers in the banking, retail and Internet service provider sectors for two years to determine whether or not customers who recommended the brands they used bought the brand again at a later date. The study found that the high NPS score people gave to a brand explained 20% of future behavior, but that the remaining 80% was a result of changes in their own life situations and offers from rival brands.

  During my research career, I have conducted numerous studies with the NPS method since it was introduced in 2003. I also have had an opportunity to examine research conducted with the NPS method at almost every company for which I provide consultancy services. I have never encountered a company that truly benefited from this measurement, in categories ranging from supermarkets, retail technology and food to telecommunication services and clothing. Still, this method of measuring satisfaction continues to be popular because it’s easy to use, and the business world is fascinated with methods that it doesn’t actually understand but that have a nice ring to them.

  The claim that a company’s performance can be measured with a single question and then going so far as to suggest that a company’s future growth can be predicted based on this measurement is a marketing myth.

  NPS has no benefit. Companies that utilize NPS without understanding exactly what they’re measuring with this tool are simply wasting their resources. They should instead utilize other methods offered by the research industry that evaluate product and service performance in a multidimensional way.

  BRAND IDENTITY

  52. Bra

  nds Cannot Differentiate but Can Distinguish Themselves from the Competition

  The concept of differentiation discussed by marketers has two meanings. The first is that a brand innovates to develop features the competition doesn’t have. The second is that a brand has an intangible property that leads to a special meaning in people’s minds. When marketers refer to the concept of differentiation, they’re generally talking not about innovation but the fact that a brand can create meaning through perception. The differentiation discussed by authors such as Theodore Levitt, David Aaker, Kotler, Ries and Trout is differentiation based on perception (details in chapters 37, 38, 39, 40, and 41).

  Distinction, on the other hand, is when brands that are similar or even identical to one another in terms of product and service features, and that have the same significance, express themselves with distinct audio–visual elements, such as logos, colors, symbols, slogans and music. “Branding” a product or service means giving it a name and then associating the name with distinctive features, such as color, logo, emblem, symbol and music. These distinctive features are also known by the older term “trademark.”

  The Ehrenberg-Bass Institute argues that it’s not differentiation but distinction that brands can achieve. According to Byron Sharp, branding a product in this way serves three important functions for the user:

  Brands make it possible for people to know what company makes the product or service they buy.

  People can then associate the advertisements they see and hear with a brand.

  Branded products can be recognized more easily and more quickly at sales points.

  Some brands are very successful at associating their packaging, colors, logos and symbols with their brands in the minds of people. When people see this brand’s colors, logos or symbols, they remember the brand without even needing to see its name.

  As the audio and visual elements of a brand (trademarks) are instilled in people’s minds, the brand begins to accumulate an asset. The more people a brand impresses with these elements, the stronger its market asset is. These clues help people remember the brand and notice it when they see it at sales points, thus increasing the buying probability. (Market-based asset is a term used by authors from the Ehrenberg-Bass Institute. The first element of the market-based asset is the mental availability; the second is physical availability at sales points.)

  Consistent use of the brand’s emblem, color, symbol, slogan and sound in every application is the prerequisite for a brand to be distinct from the competition. This is an issue that every marketing manager must manage properly.

  53. Do

  Not Take a Brand’s Name Lightly

  A good brand name is an advantage for any brand. A good name is not enough to make a brand, but an impressive name does make it more powerful, saving time and money. A good name is a head start. Some guidelines:

  The function of the brand name is to make the products and services marketed by the company distinct from the products and services of its rivals. For this reason, brands should avoid using general names. Names that are similar to those of the competition are very dangerous because this eliminates the primary function of the brand—namely, making it distinct.

  When naming a brand, it’s important to know the motivations that lead people to purchase the product or service, and to stay away from any meaning that’s contradictory to these motivations.

  It’s important to consider not only the present, but also the future. The brand architecture (other products and services that will be marketed under this name in the future) must also be considered.

  Names that have negative connotations in foreign languages must be eliminated.

  I have worked on numerous brand creation projects in my career. Even though I am intimately acquainted with all of the details, I consider it one of the most challenging if not depressing tasks in marketing—because almost all of the good names are already being used by others. Now it’s almost impossible to find a good name consisting of a single word. The names that will be given to brands in the future will either have two words or be invented words.

  The task of naming a brand is additionally difficult because it’s so weighted. Its name is a brand’s most powerful communications tool. This matter deserves due diligence in brand creation, but unfortunately most companies don’t take it seriously enough. The fact is, a poorly chosen name will be an obstacle to branding in the future. And the more tim
e that goes by, the harder it will be to change the name (more on this in a few pages).

  First, before anything else, brand owners need to understand their brand promise and make certain their product or service is delivering on that promise. Having a good brand name is, of course, important, but it’s obvious that a good name alone does not make a brand. The name is not the essence of a brand; it’s just one element of communication. If the brand’s products and services don’t deliver the promised features, even a perfect name will have no benefit. For a brand to be successful, the most important thing is that it not be deficient in comparison with other brands in the same category.

  Most companies are very proud of their brand names. But sometimes a company is forced to change its brand name. The company wants to make a fundamental change and a new start with a new name (a process called “rebranding”). A company may make this decision for a number of different reasons:

  Some companies change their business model or abandon their former approach and need a new brand name to communicate this to both employees and customers. They may change their name when they launch a new brand promise.

  Sometimes, two companies merge and create a new organization and want to find a new name for it.

  Some brands change their names when they enter a new country because their prior name clashes with the values of the new market.

  Brands are sometimes forced to change their names because of legal difficulties.

  It’s easy for consultants to suggest that a company change its branding, including brand name, but brand owners rarely do. Even when company executives agree that a fresh approach or even fundamental changes are required, they’re very reticent to change their brand name. And they’re right to think like this, because the decision to change a company’s name is as fundamental and difficult as it is for an individual to change their name.

  However, sometimes the change is forced on companies. Sometimes, the past must be buried if a company is to move forward. David Aaker says that rebranding should only be attempted in situations where a brand has truly lost so much value that it can’t be repaired. Rebranding should be avoided unless all other options are off the table. When a brand changes its name (color, logo, etc.), it loses all of the extremely valuable market assets it had created in the minds of consumers.

  54. Eve

  ry Brand Must First Determine What Category It Will Operate In

  This may sound counterintuitive, but before it can be distinct with its name, colors and logo, a brand needs to make a statement about which category it belongs in. Specifically, for consumers to understand what a brand is selling, that brand’s visual elements must be compatible with those of its rivals. For example, people won’t notice a bakery that doesn’t look like a bakery from the outside. The display windows of all ready-to-wear stores look similar, and a store without a display window won’t be recognized as a place that sells clothing. The packaging of all milk and dairy brands looks similar; all of the street vendors selling pretzels can be identified from afar.

  People don’t devote deep thinking to their choices when they’re shopping. They utilize mental patterns previously formed in their minds when choosing from among available options. If a brand doesn’t conform to these patterns, consumers won’t recognize the brand as belonging to the product category in question. People will drive right past a place if it doesn’t look like a gas station. This is why every brand must use visuals (architectural characteristics, shapes, packaging, colors and symbols) peculiar to the category.

  However, brands must also be distinct from the competition. So, a brand’s first task is to affirm which category it belongs to, and its second task is to distinguish itself from the competition. Brands should resemble their rivals enough for people to recognize them as belonging to the category, while being distinct enough to stand out from the competition, using features such as a unique name, logo, emblem, symbol, color, packaging or architectural design. The next two chapters talk about this in greater detail.

  55. Col

  or Can Distinguish a Brand from the Competition

  Like music, color can alter a person’s mood. Just as music can give a person the blues or put them in a cheerful mood, colors can both calm people down and excite them. Color can have a profound impact on people’s feelings, much like music.

  The human eye can distinguish millions of colors. Different colors awaken different feelings. However, people are generally unconscious of this effect.

  Colors have different meanings in different cultures. The same color can have different meanings in Occidental and Oriental cultures. The following examples illustrate both traditional associations and those that have been uncovered through research:

  In the West, white symbolizes purity and cleanliness. That’s why wedding dresses, the coats worn by doctors and laboratory technicians and tablecloths are white. White promises cleanliness.

  Black is devoid of color. It is somber. In the West, it’s a symbol of death and funerals, but it’s also a symbol of success, sleekness and victory. That’s why lingerie and expensive cars are black.

  Red is a color that immediately stands out. Almost all packaged goods have red print on them. Red also symbolizes anger, and it raises blood pressure and testosterone levels. Red is energetic, which is why sports cars are often red. In the West, red is the color of love.

  Blue is mentally stimulating and inspires trust. Navy blue is the color of authority and discipline, which is why so many police and pilot uniforms are navy blue in many countries. In Europe, blue symbolizes tradition; in America, it stands for wisdom.

  Green is a symbol of nature in all societies. It is peaceful and conjures up images of trustworthy, natural food. It symbolizes money in America and good luck in Europe.

  Orange is the color of relaxation and pleasure in Western cultures. It represents appetite.

  Yellow raises people’s endocrine levels and prompts an emotional response. It represents the sun and hope. This is why emojis with a smiley face are yellow.

  Purple is the color of royalty in Europe, representing nobility and luxury. In America, it stands for power.

  Colors can be divided into warm and cool colors. The vibrant, energetic and attention-getting warm colors (red, yellow, orange) remind us of fire. They’re perceived more quickly and create a feeling of closeness. Cool colors (green, blue, purple) inspire a feeling of peacefulness but also distance. Warm colors accelerate people’s metabolism, whereas cool colors give them a feeling of peace and confidence. Cool colors communicate a feeling of order, which is why large companies use blue or navy blue.

  Colors trigger not only the visual senses but also the sense of smell and taste. Yellow and light green are perceived as tart (lemon and lime). In studies conducted by branding expert Martin Lindstrom, participants saw transparent glasses of lemon, cherry, grape and orange juice and guessed what fruit they belonged to without tasting them. But, when Lindstrom and his team changed the colors of the same fruit juices and the tastes remained the same, people had a difficult time figuring out which fruit juice they were tasting. Our sense of taste has actually become so accustomed to the assistance of our vision that we have trouble identifying something if we taste it without seeing it.

  Because colors affect people’s moods, they also affect their decisions. The same design in two different colors is perceived differently. It will appear hard in a cool color and soft in a warm color. An object looks smaller in cool colors and larger in warm colors. Objects look further away in cool colors and feel closer in warm colors.

  In a physical location, the effect of color changes the entire perception. When the right colors are used in a building, it can be a place people like to spend time in. But if the wrong colors are used, this mistake can create an atmosphere that no one wants to visit, where people quickly feel uncomfortable and want to get out. Color selection in stores, cafes,
hotels, restaurants and office spaces affects people’s emotions and behavior. If a location uses an overabundance of warm colors, it can create feelings of aggression or fatigue and make it difficult for people to concentrate. When cool colors are overused, a gloomy, depressing atmosphere may result.

  Color selection is similarly vital when it comes to clothing. There are several colors that go well with a person’s skin tone. If a person wears colors that don’t suit them, they send a negative message about themselves.

  Nonmarketers may not think about it much, but colors permeate every part of our life, including the world of consumption and brands. People can distinguish brands they’re familiar with just from the color and without seeing the name. This applies not just to brands they know. They also make assumptions about brands they don’t know, based solely on the colors.

  Color psychologist Jill Morton says that executives should select brand colors according to the psychological effect the colors have and not according to their own personal tastes. The brand owner’s favorite color may not be the color that should be used for the brand. When deciding on a color for a brand, it should

  be noticeable,

  be distinct from the competition’s colors,

  create the desired emotional effect, and

  complement associations consistent with the brand promise.

  A brand’s color selections aren’t limited to the colors on logos and emblems. Brands are constantly making decisions about color in daily practice. The decisions that brands make every day on packaging, boxes and bags; in offices; and on storefronts ensure that they’re distinct from the competition and create a consistent perception.