Ian M.
Strategic Marketing Executive building brands, generating demand and delivering results for the Fortune 500.
Who should define (or consult on) brand strategy?
If a brand is best represented through a physical manifestation of emotional and rational elements brought to life, why aren't more experience marketing agencies selected as the lead strategic branding agency over advertising and interactive agencies?
Yes this is a loaded question...
Good Answers (6)
Mike M.
Managing Director at N2growth, America's Top CEO Coach and author of Leadership Matters...The CEO Survival Manual
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Hi Ian:
A loaded question it is, but I've never been fearful of a challenge...If you roll back the clock there was a point in history where branding, marketing and advertising were virtually synonymous (at least in application) however that point in time has long since past. While advertising has become a much smaller component of branding, advertising agencies have not continued to develop their approach or methodology to keep pace with the rapidly changing, increasingly sophisticated and very complex markets. In fact, I would go so far as to say that many advertising agencies are almost obsolete in their approach such that they add very little value to their client’s brands.
Let me begin by stating that it is the CEOs responsibility to set the brand vision and then to evangelize and champion that vision. I have observed far too many CEOs and entrepreneurs who abdicate their responsibility by just turning over their brand to advertising agencies and hoping for great creative output. The problem lies in that the concept of “branding” has moved far beyond communicating product differences and building “image.” In order to improve brand performance, marketing experts need to consider completely embrace customer centricity and not just talk about it. Everything from product re-design, reengineering the supply chain, refining distribution, reducing costs, introducing loyalty rewards for customers and many other variables should be fair game. While advertising will certainly retain an important role as a component of branding, it is clearly not the driver of branded businesses that it once was.
Put simply, ad agencies create brand advertising they don’t create brands…Put even more simply ad agencies create, buy and place media they don’t develop brand architecture and modeling which are used as a blueprint for all activities and communications for the brand. It is rare that you’ll find ad agencies that will even have the diversification of competencies that will allow them to provide strategic brand direction across mediums. While I have rarely observed a lack of willingness by agencies to dive into a project, I have often observed a complete inability to execute.
Even within their purported areas of domain expertise (media and mediums) the marketplace is littered with agencies who have huge gaps in competencies in PR, direct marketing, blogging and other forms of social media, interactive media, search marketing, word of mouth marketing and any number of other areas. However it is their lack of experience and ability to deliver on brand strategy, business intelligence, knowledge management, innovation, corporate venturing, competitive analysis (and by this I don’t mean whose TV ad is better), intellectual property and other items that make ad agencies the worst possible choice to take brand direction from.
Okay, let’s call a spade a spade and bring the ad agency agenda out into the light of day. Ad agencies get paid to sell advertising not to build brands…Reflect back upon your last agency pitch and you may have been wowed by creative talent, and yes even a bit of brand-speak, but at the end of the day you were pitched on buying advertising. Ad agencies speak to your advertising budget, not your brand equity.
Bottom line…As a CEO your ultimate success or failure will be directly tied to the growth and sustainability of your brand equity. As such your company’s brand guardian should be the brand owner (you) and not your ad agency. CEOs should manage their ad agencies in collaboration with consultancies that understand strategic business and brand drivers across mediums, channels and markets. Don’t make the mistake of confusing advertising with branding and end-up over spending for the wrong reasons.
Hi Ian,
Seems to me that 'experiential marketing' is just another piece of the puzzle. The experience cannot be defined until the brand is. Once brand development has happened you can begin to bring to life the parts that make up the brand; experiential marketing, traditional or non-traditional advertising, public relations, guerilla marketing, etc. – whatever is appropriate to bring the brand to life.
And like all of these pieces, the experience should be determined by the brand, as should the advertising or anything else. Take Starbucks for example, the perfect example of experiential marketing, advertising, public relations, etc all working in sync based on a brand developed around their style coffee drinks.
Clarification added September 4, 2007:
I guess I didn't finish fully answering your question – but I do not think a brand is always best represented through a physical manifestation of emotional and rational elements. i think that is an assumption that can be discussed and debated.
Gunther S.
Co-Founder & Chief Strategy Officer - Heardable, Inc. Mentor, K5 Ventures. Technologist. Advisor. International speaker.
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Good question. I think it boils down to two things: process and semantics.
To Scott's point, experiential marketing firms are a category of service providers rooted in event, street and other forms of guerilla marketing...the "here-and-now" of a brand experience execution. While this is no doubt a valuable delivery channel, the process in determining what a brand stands for or will stand for cannot be qualitatively or quantitatively determined through this process; in other words, this is an excellent medium with which to conduct a brand conversation, but not create the brand identity in and of itself.
The semantic issue is even more interesting. Experiential marketing agencies, like many interactive firms, are great at what they do to proliferate the brand message(s), but often have little or no experience in actually building brands because they lack experience in traditional media, as well as the knowledge in knowing how to integrate various platforms. That said, there is inherent value in having the empirical knowledge -- pathological insight, if you will -- to create, launch and propagate a brand; this distinction is often overlooked and therefore the title of an "experiential marketer" can be very misleading.
-Gunther
I think that all facets (ad, PR, interactive, and experiential, etc...) should contribute to the end branding goal. I don't think that any one agency (you can tell that I am coming from the corporate side here) should be a lead. The process should be lead from within the organization, as the agencies' jobs are to help translate and build awareness around the branding, which ultimately comes back to the organization (CEO, marketing dept., etc...). I think that agencies add great value from their outside view, but they should not be the main drivers here. The lead should be taken within, as the brand is created around the essence of the company, not what the agency creates. This is a common misconception. Agencies don't create brands, they help translate what the companies and brands stand for. Giving one agency a higher stance (as a lead) just leads to petty turf battles, which jeapordizes the effect of all initiatives.
I would say that it is pretty simple. How many companies do you know manage experiential marketing well? A handful. That is because few understand it. So without understanding, they cannot change the accepted paradigm. Secondly, when you are speak about F500 firms, risk taking is not often well rewarded at the CMO level. If you hire a known entity and they fail, you can cover yourself by "Well, I hired the best in the business..." Those have been my observations.
Robin C.
Cultural and Development Organisations Consultant
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Ian, this sounds very like the long-standing complaint of PR agencies that they never get selected for the lead communications agency role - which often goes to ad agencies. And the reason, which I suspect applies here as well, is that ad agencies have successfully hijacked the strategic highground and know how to talk the talk. PR agencies too often go in to pitch only for the PR business, ad agencies go in to win the client's communications. They may, as someone else has said, then only do advertising (not a surprise really), but they occupy centre stage in the whole communications and branding deal. They are glamorous, creative, temperamental, artists, and that gives the client a buzz. Their offices are exciting places to visit. The industry has heroes. And at a very simple level, the agency consuming the biggest budget often takes on the lead role for tail wagging dog reasons, however misguided.
I don't know how experience (or is it experiential? I recommend agreeing on one or the other) marketing thinks about itself or pitches for business, but there may be lessons to be learned from advertising agencies. In essence you are talking about how to move from channel-specific and (apparently) tactical position to one that is cross-channel and strategic. From dealing with the client's product middle management to influencing the board. So what evidence is there for the proposition that experience marketing agencies can deliver? Is the industry taking on a thought leadership role? In what way it it redefining brand development? Is it communicating with CEOs directly or indirectly about their companies' brand essence? How does it celebrate its achievements publicly? Is it publishing interesting research on the experiential contribution to brand reputation? Is your industry really interesting - fun - to do business with? Are you really credible as strategic brand partners?
If so, then go for it. Me, I would choose a specialist branding agency anyway, because then I avoid the risk of the brand being shaped to fit an agency's communicationsl specialism. Good luck.
More Answers (12)
Street level (experiential) is the tip of the spear - but mass advert exponentially touches so many more consumers that they are the van guard (to keep with the military theme) of branding - cest la vie
Ian,
I ask myself that question all the time. Since it appears that the experiential marketers like you and me will not achieve that lead strategic branding role anytime soon, we need to align ourselves with our advertising agency brothers and sisters and convince them to allow us help drive this process. In some instances it has worked for us at Dept Zero.
Is there an answer to this question? LOL
Best,
Kris
Oliver P.
Idea guy - creative B2B marketing consultant, content writer, freelancer
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Since I had to do a Google search to learn what you meant by "experience marketing," I would guess that experience marketing agencies haven't done a good job of branding themselves or (to put it another way) of creating a compelling differentiator that pulls people away from advertising and interactive agencies.
If experience marketing truly made the difference in branding, marketing, and sales success (AND if creating a great customer experience was easily implemented by working with an experience marketing agency), then everybody would be doing it.
There -- a loaded answer to a loaded question ;-)
Brian M.
Relocated to Silicon Valley
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Ian,
My 2c,
Brian
Brian M. also suggests this expert on this topic:
Ian,
I think the answer is simple – long-term client relationships. How is a client to know that their trusted ad or interactive agency is not the best at strategic branding when that agency is telling them otherwise.
Many companies do not have experience with the firms that specialize in brand strategy. Companies like their retainer based agency relationships. Why spend $$$ when a company can get brand strategy tossed into their current ad budget.
Best, Robin
Clarification added September 5, 2007:
I answered your second question. The answer to your first question regarding who should consult on brand strategy – brand strategists at consulting firms is the simple answer.
Clarification added September 5, 2007:
I was reading Brian Callahan's answer. I agree with Brian about how a company should handle brand building in relationship to the agencies and consultants that contribute to the end result.
Aaron K.
Managing Principal, Capsule | Author of "Design Matters: Logos" and "Design Matters: Packaging"
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Just like an ad agency, the bias of an experiential or event marketing agency is toward "street" marketing. While it (your profession) may be more valuable now than it has ever been, it still is one of many tools to build a strong brand.
Brands should be defined by those who don't have a media bias -- either by clients themselves or by a firm that doesn't have a media bias, independent brand consultancies.
With all due respect.
ajk.
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Wallace J.
Multimedia Producer, i3D Programmer, Acrobat 3D PDF, Android App, Virtual World & iTV Design, Kindle, Nook & Sony eBooks
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The Customer (demographics) should define the brand strategy. Who should implement the brand-enhancing rich media? The content producers with the best chops... Why aren't more e-marketing agencies selected over traditional ad agencies? Risk, as aforementioned, and because ad agencies have economies of scale in selling the client on a "bundle" of services; give us the print and TV ad business, and we'll do the internet and viral (digital) for free. Guess what suffers? The "edge" (technologically creative) content that is the most important to furthering the brand equity.
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Tacy T.
General Manager at Saul's Delicatessen & Restaurant
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Frankly, YOU are always the best lead strategic branding agency because you know the feelings and emotions most desired for your firm. Branding is tough and one of the times in business that the "gut feel" has to be used. The results of good branding are sometimes obvious, but sometimes very subconscious. Tapping in to the human psyche is challenging.
By the way, if you need any help with online branding/marketing/advertising, please let me know. We use video to deliver your message to the right people on Cable, Internet and Out-of-home screens.
Experience marketing agencies are not demonstrating superior knowledge about the customer and how to influence mass numbers to change behavior (and make a purchase). ROI is the key to influence.
Russ S.
Regional Sales Director at Total Administrative Services Corporation (TASC)
Advertising is not necessarily about imagination but about execution.....creative is important but the execution of an advertising campaign more important (the four P's).......
Sanjay S.
Co-founder & CEO, Design Worldwide/ Director, DWW Communications P. Ltd.
Brand strategy is about bringing a grand vision to life. At the heart of it lies the consumer- for whom the brand exists and it is the consumer who eventually navigates the brand strategy. Brand custodians & marketeers follow these consumer trends and define the strategy in a few key words, for clearer comprehension across the board. I would be of the opinion that whoever has his ears & eyes closer to the ground (read consumer) eventually defines the strategy. Can be marketing agencies & strategists, ad. agencies or the client himself. But in most cases that I have come across, a collaborative effort works the best.
