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We Live in Financial TimesMonday 31st March 2008 The Financial Times is extending its 'We Live in Financial Times' brand campaign, unveiling an advertising campaign at selected airports across Europe. Aimed at targeting an international business audience, the six month campaign will run at Charles de Gaulle and Orly airports in France, Schiphol airport in the Netherlands, Frankfurt airport in Germany and London City airport in the UK. The campaign leverages the central role that global business plays in the world's everyday lives and features three iconic images that encapsulate the key business themes of globalisation, mergers and acquisitions and entrepreneurship. Research conducted by Aviator for the Financial Times in 2007 revealed that airports provide the most effective media choice to target the international business community. The long term poster sites have been included at strategically selected locations within the airports, specifically targeting the business passenger. The sites are located near and around business lounges, fast-track security and in terminals accommodating a high proportion of business passengers. Frances Brindle, Global Marketing Director for the Financial Times, said, "We are pleased to extend our brand campaign into Europe. Airports are the premium environment for targeting a senior business audience a perfect fit for the Financial Times." The research findings and advertising strategy of the FT, certainly back up our own experience in running international campaigns. The high impact poster we created for Landsbanki at the arrivals hall, "Welcome to Englandsbanki", has created quite a stir. Save the Last Dance for MeFriday 28th March 2008 To conclude my metaphorical series analysing 4Rs dynamics, as it's Friday, I have sought out the bright lights of the nightclub for inspiration. Here, I put 'Remarkable' with 'Real' in the mix. High Real, High Remarkable High Real, Low Remarkable Low Real, Low Remarkable Low Real, High Remarkable Tailor Made MarketingThursday 27th March 2008 I bought four suits in Carnaby Street the other day, yet I didn't intend to buy so many when I set out. What made my shoping trip so successful was the 4Rs working perfectly in combination: - Remarkable (style) It gets interesting when you start to compare style and fit, by plotting 'Remarkable' with 'Relevant': High Relevant, High Remarkable High Relevant, Low Remarkable Low Relevant, Low Remarkable Low Relevant, High Remarkable The Big MatchWednesday 26th March 2008 The subject of today's blog takes me from yesterday's sporting analogy about golf to one concerning soccer. The metaphor I have developed below highlights the dynamics of matching a variable attribute (Reputational), in a Boston Box style quadrant, against a constant attribute (Remarkable). High Reputational, High Remarkable High Reputational, Low Remarkable Low Reputational, Low Remarkable Low Reputational, High Remarkable Seduced by Celebrity?Tuesday 25th March 2008 Accenture is running a series of strongly executed, beautifully shot ads for print and TV, featuring Tiger Woods. Most of the creative executions show Tiger making near impossible shots using skills that are analogous to those of Accenture - ones that resonate with the golfing CEOs who comprise their target audience. The ads use humour to good effect: When one shot bounces off the cup and lands two feet away Tiger comes out with the line, "I forgot to account for the rotation of the Earth!" Why then is celebrity endorsement a problem in terms of Creating Your Own Space? The relationship of brand to celebrity would seem to be perfectly aligned and the ads are, after all, brilliantly executed. There are four reasons I think it is important to be beware of celebrity endorsements: - You are introducing two brands into the equation which may confuse the target audience What all of this means is that the winner is the celebrity and arguably the most relevant brand linkage, since these will be dominant. Financial institutions take note.
Challenging the ChimeraThursday 20th March 2008 I read an interesting article by Tom "The Remarkable Chimera" Asacker today: http://www.acleareye.com/thoughts/Article_The_Remarkable_Chimera.pdf It starts by saying: "The chimera is indeed a remarkable beast, with the head of a lion, body of a goat, and a serpent's tail. It¹s also a myth that has faded away." This challenges Seth Godin's view and my own that "Remarkable is necessary to market today, because unremarkable products don¹t get talked about, they just fade away." Whilst there are many elements of the article with which I disagree, since I hold firmly to the assertion that the entire purpose of marketing is differentiation, the pay off line sums up the 'Real' element of the 4Rs: "Remember, it doesn¹t matter what people think about you or your brand. What matters is how you make them feel about themselves and their decisions in your presence. And that¹s what's really important when marketing a brand today." To my mind, both Seth Godin and Tom Asacker are right and wrong! The reality in financial brands are more finely balanced. If your brands engage intellectually as well as emotionally across the spectrum of "Remarkable, Relevant, Reputational and Real", you are more likely to win BOTH mindspace and heartspace, and sustain the position where you will Create Your Own Space.
A Seth Godin Action Figure?Wednesday 19th March 2008 This really made me smile - Archie McPhee is now selling the Seth Godin Marketing Guru Action Figure for $8.95 (no, I am not joking). Check this out:
http://www.mcphee.com/items/11792.html I love the website copy: "Imagine having your own personal marketing guru you can go to for advice and guidance. You could pay millions of dollars to consultants, but why not just get the Marketing Guru Action Figure? Marketing genius and famous blogger Seth Godin serves as the model for this 5.375" plastic action figure with his trademark mismatched socks and business casual clothes. Each figure comes with a free gift and the Little Book of Marketing Secrets. It's rumoured that if you want an insight into what your customers want and how they'd like to be communicated with, you can rub Seth's bald head and all will be made clear." Just stop right there, valued clients, don't get any ideas!
Ring-fence your Competitive AdvantageTuesday 18th March 2008 In his seminal book 'Competitive Strategy', Michael Porter talks about 'industry forces'. Richard Rumelt challenged this and it has since become established thinking that business factors are more important drivers of performance than are industry factors. The lesson here is that you can succeed in difficult industries, even during challenging economic circumstances. Great you say, but how? Rumelt went on to coin the term 'isolating mechanisms' to refer to the "economic forces that limit the extent to which a competitive advantage can be duplicated or neutralised through the resource-creation of other firms". Essentially, isolating mechanisms are to individual companies what barriers to entry are to an industry. These include 'impediments to imitation' that prevent rivals from duplicating critical resources and capabilities, such as patents, copyrights, trademarks, licenses and importantly, brands. Superior collaboration with customers and economies of scale also serve as strong impediments to imitation. Early-mover advantage can create a powerful momentum, increasing the quantum of that advantage relative to other companies over time, yet this needs to be managed carefully to perpetuate a truly sustainable competitive advantage. How can you build 'impediments to imitation' into your business?
Speed is the Key for IntroducersMonday 17th March 2008 The National Association of Commercial Finance Brokers (NACFB) annual survey has identified the key attributes that a broker looks for when dealing with a lender. The most important factor to brokers is speed of response with 91.3% of members ranking this as either extremely or very important. The next key selling point for brokers is competitive pricing, with 87.6% of brokers rating this as either extremely or very important. Other characteristics that a broker looks for in the ideal lender are risk appetite (72.6%) and an existing relationship (68%). Despite being a perennial hot topic, only 50% of brokers rated commission paid as either extremely or very important and of this figure less than a third (14.3% of the total respondents) cited commission as extremely important. Chief executive of the NACFB, Adam Tyler, explains: "The results of this survey show that the speed of a lenders decision is by far and away the most important consideration for brokers. If a lender is serious about the broker channel, this should be the area above all others that they concentrate on getting right." Strand Financial has recognised this important attribute when developing the corporate identity for SME Invoice Finance that embodies speed, strength and flexibility, in the form of a big cat. These are the key messages to be conveyed to "cash hungry" small business owners, who particularly in times of economic crisis will feel the need for all three of these qualities in equal measure. Marketing: A New DefinitionFriday 14th March 2008 In its insightful and thought-provoking 'Shape the Agenda' paper, "Tomorrow's Word: Re-evaluating the Role of Marketing", The Chartered Institute of Marketing calls on marketers to re-examine how they view themselves - to challenge traditional norms and redefine where the profession is going. I applaud this move and have long advocated that a new definition of marketing should be developed, since the previous one, coined some 30 years ago, does not reflect the environment of 'business at the speed of thought' that the financial services industry knows today. The Institute's previous definition, defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably". My previous blog highlighted the shortcomings of this definition, which relegates marketing to a management process and does not encompass its wider role in the context of the organisation or bring stakeholders into the equation. The CIM's proposed new consultation definition reads as follows: "It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits." "By operating customer-centrically, marketing brings positive returns on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future". It improves on the previous definition significantly by including shareholders and stakeholders, introducing the concept of value and giving direction in the ways a marketer may achieve positive returns on investment. However, a "strategic business function" could arguably be extended to encompass the entire operation. I believe that the fundamental role of marketing today is to create differential advantage. I have therefore joined the debate by putting forward a challenging new definition that explains the “what”, “how”, and “why” of marketing, introducing the concept of value and intellectual and emotional engagement: "Marketing is the conception, implementation and adoption of differential plans throughout the entire organisation to create market space - resulting in superior stakeholder value, mindshare and heartshare." Re-defining Financial MarketingThursday 13th March 2008 I have been asked to republish these thoughts, first aired in my Connected Marketing column in Business Money magazine, by a number of readers. I think it is helpful to feature this in juxtaposition with the Chartered Institute of Marketing's proposed new definition, which is the subject of my blog tomorrow. It was way back in 1977 that The Chartered Institute of Marketing coined the definition that is still being committed to heart by marketing students today: “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” “Marketing is the management process”, is too narrow in its scope for the progressive financial marketer. Today, marketing transcends mere function and is not the exclusive preserve of management. It only gains currency when every person in an organisation understands, embraces and demonstrates a company’s brand and its values through their behaviour and actions. The term “process” says nothing of what that might entail or the ability of marketing to ignite imaginations, innovate and engage. The conclusion that marketing is “responsible for identifying, anticipating and satisfying customer requirements profitably” also fails to appreciate its vital role in defining a market and creating measurable shift and market space. The old definition talks about customers but neglects the needs of stakeholders, such as channel partners and shareholders. It talks only of profit, laudable in itself, but ignores the basket of value the sophisticated financial marketer is expected to deliver. It is time for a new definition of marketing that reflects and embraces the significant changes we have seen. It is time to re-evaluate the increasingly complex role of the marketer in delivering stakeholder value. The Chartered Institute of Marketing has taken the difficult but valuable step of creating a proposed new definition as part of a consultation process with senior marketers - this can only be good news for the professional standing of the marketer in financial services firms.
Workshops Jargon BusterWednesday 12th March 2008 I was asked by a client recently about our Create Your Own Space Brand Workshops and it made me think that it would be helpful to get down some definitions. Here is a jargon buster style glossary of phrases that we use within our workshops at Strand Financial: Core Essence - The brand's promise distilled in the simplest, most single-minded terms - the phrase you most want to own in a client's mind. Brand Pillars - The guiding insights that support the essence of the brand. Brand Mission - A shared,‘realisable’ vision as to how the brand will act on its insight, articulated in the form of a practical 'elevator pitch'. Brand Personality - The brand's recognisable personality traits. Brand Tone of Voice - How the brand communicates and tells its story to its target audience. Brand Experience - The means by which a brand is created in the mind of a stakeholder by consistent interactions at key 'touchpoints'. Brand Thesaurus - the vocabulary used by the brand to give a unified 'language' to the team. FinancialMarketing.comTuesday 11th March 2008 B2B Marketing magazine has this month announced that the directors of Strand Financial are launching an exciting new resource for financial marketers which will give them the tools to succeed in a challenging era where marketing professionalism and technical expertise is to be championed.
The article highlights that 'FinancialMarketing.com' will be an online portal "designed to bring together the financial community so that they can share and hone their skills". We look forward to bringing you the latest announcements from Financial Marketing TV and FinancialMarketing.com later this month.
Supportive MessagesMonday 10th March 2008 No banks can afford to rest on their laurels right now and we could certainly never accuse Lloyds TSB of that in innovation or marketing terms. Lloyds TSB Corporate is now looking to promote itself as being there 'for the journey' for its customers, a message that is all the more crucial given the current economic climate.
"Customers think that when times are good, banks want to help them and when times are bad they won't," comments Jeremy Hayward, marketing director at Lloyds Corporate Banking. "We're concentrating on the message that we are long term in our approach and we're here to support our customers. The word 'relationship' is often used in this industry, but many organisations continue to think purely transactionally," he says. This supportive approach, delivered with genuine transparency, is exactly what the sector needs to boost confidence and trust in challenging credit crunch times.
The Multiplier EffectFriday 07th March 2008 In 'The Tipping Point', Malcolm Gladwell says: "Simply by finding and reaching those few special people who hold so much social power, we can shape the course of social epidemics...Look at the world around you. With the slightest push in the right place it can be tipped."
The reality is that your existing customers make the most powerful brand evangelists, for testimonials, co-creation of web content and as participants in harnessing insights for product development. Let consumer generated content develop your unique brand story and help you 'Create Your Own Space'. Unleash the 'SpaceVirus'!
Divide and ConquerThursday 06th March 2008 Web 2.0 offers the financial marketer an exciting new toolkit of podcasts, blogs, and online TV. However, it¹s not about talking at people. Involving the audience, sharing ideas and rewarding them with valuable content is king.
Narrowcasting rules - highly targeted media messages can be sent to specific market segments defined by values, preferences, or demographic attributes. The nature of content provision can be fine-tuned, not just by segment - but by individual!
Adding ValueWednesday 05th March 2008 An issue that I see regularly is that many players are claiming exactly the SAME attributes
as differentiators. Statements such as: "What differentiates us is our people, our service and our professional approach" seems to me to be having the opposite effect to that which was intended. Ironically, it follows that the greater the organisational focus on these particular 'differentiators', the more similar these companies must seem in the eyes of their potential customers - resulting in inevitable commoditisation and price parity.
The thing is that brands need to be different at the core! As financial marketers, I believe we have a responsibility to ensure that each brand in our stewardship is treated individually. It therefore must have a distinctive core essence and a personality that sets it apart.
The real opportunity to gain a competitive advantage is to focus and develop DIFFERENT attributes from competitors and to build a Unique Value Proposition and customer experience from that solid foundation.
The Law of SubtractionTuesday 04th March 2008 Yesterday, I focused on some of the main issues that face the financial marketer. This week, we'll consider some of the potential solutions within the success equation, starting with The Law of Subtraction: The Law of Subtraction Would You Like a Latte with that Loan?Monday 03rd March 2008 Joseph Pine and James Gilmore wrote about a growing trend towards a consciously developed Experience Economy in their book of the same name. Disney and Starbucks were early to catch the wave. So how has the financial sector responded? Banks are starting to hit the second wave - or at least starting to paddle forwards with real results - engaging with customers. A recent Wall Street Journal article outlines the phenomenally successful branch strategy of a number of banks nationwide with the headline "Would you like a latte with that loan?" One example of how banks are takling the initiative is Bank of Smithtown, Hauppauge, NY. The bank installed coffee bars, stools and plasma-screen TVs in nearly half its 13 branches. When it opened three new branches in the Experience-Economy style, they accounted for about a third of the bank's $183 million in deposit growth. Washington Mutual credits its new branch design with helping to add 900,000 net new accounts in one year. Wachovia, PNC Bank and Bank of America have sought to adopt latte lending. Which banks near you will be offering credit cappucinos in the near future!
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