“Anti-incumbency” – term synonymous with elections and government change. Every 5 years you hear governments getting toppled with the common excuse of being afflicted by the “anti-incumbency” wave. So, what happens – do the governments not deliver on their manifesto or is it a case of pure fatigue or just ‘change for the sake of change’? We would like to believe that during its reign the ruling party would strive ardently to deliver on their agenda in the hope of being returned to power. But yet it is always tougher for the incumbent as the “new” lures you into believing that it would be better and more promising.
This sort of change for ‘change’s sake’ is certainly not unique to governments alone. Infact, it runs rampant in the wonderful world of marketing as well, especially with those brands having the same lifespan as governments in India.
How many times has a good product been dumped just because the new one offers more excitement and a better talk-value? How many times has a perfectly satisfied user succumbed to the temptation of a new experience? “I have been using a Maruti Esteem for years now, so my 10-year old son insisted on next car being a Chevy Aveo” or “We have been using a Whirlpool washing machine for years, lets look at an LG or Samsung model” are increasingly being heard from buyers when it is time for a change.
Consumers are becoming more daring in their expectations due to a myriad of unrelated societal and technological changes. Freed from the shackles of tradition and scarcity, enjoying full access to information and reviews, these consumers are trying out everything “new” – new products, new authors, new holiday destinations, new relationships – new ‘anything and everything’ with complete abandon. Attractive to consumers who are increasingly leading a transient lifestyle governed by a ‘disposable culture’, these consumers are freeing themselves from the hassle of permanent ownerships and possessions. What drives them out is boredom, monotony and the mundane and what drives them in is novelty, discovery and action.
The implications? An obsession with the here & now, an even shorter satisfaction span and a lust to collect as many experiences and stories as possible, is undermining the perceived value of fixed goods & services. The exposure to the brand, the glamour of new product offerings, fatigue with the existing, and the emergence of new wants, needs, and aspirations of the customer is perpetuating this ‘anti-incumbency’ trend in brands.
There are other factors responsible for this syndrome as well. The ability to quickly dispose off what’s no longer required is driving promiscuous consumption as people are no longer worried about buying the wrong product and getting stuck with it. This is being driven by the successful emergence of different auction sites. Consumers are aware that there will be residual value and they are willing to take more chances because they know there’s an exit if they have made a mistake. This is giving birth to an ‘exchange’ trend in the durables’ space especially in high value categories like cars, high-end electronic goods, etc.
Living in the world of abundance, the audience today is getting greedy and is the most fickle. In terms of product loyalty, they are champion polygamists. Every current trend is writ largely with them. The fragmentation of mass audiences, their willy-nilly flight from one platform to another is redefining the conventional definition of loyalty.
How many times have you heard that “it costs several times more to attract a new customer than to keep an existing one?” But with the emergence of this polygamous lot, the question begging to be asked is “Is it now time to forget loyalty?”
There’s widespread agreement that customers generally get sick and tired of the product that they have been using for a while. So, what’s the elixir that will invigorate them?
The challenge with building customer loyalty is that it has shifted from being defined only by such tangibles as quality and price to mainly being defined by intangibles such as values, cultures, attitude, etc. So, to deflect the impact of brand fatigue, companies should invest in intangibles at subtle levels. As far as functionality is concerned, given the current competitive market, one is bound to try new things because product innovation is at its peak. The mass consumers today are children of liberalization and it’s too soon to get hitched.
New offerings and launches will continue to attract customer and be successful because the market isn’t saturated enough to show signs of loyalty. A 4-year old Chevrolet has been one of the fastest growing car brands in the country and has a long way to go.
And there will be many more such categories and products.
Today, even the loyalists’ brands admit that in such a dynamic market, loyalty is not enough. You have to appease the consumer consistently.
The point is that we need to shift away from the traditional definition of loyalty because the customer who “never” switches products or brands is impossible to find? The challenge is to ensure that the customer enjoys and cherishes the relationship during and after the relationship is over, to assuage the effects of the ‘anti-incumbency’ trend.
Monday, May 28, 2007
Meet the new marketer
Imagine this scenario: sitting in an aircraft busy making the last minute changes in your big presentation which will decide the next year’s road map strategy for your brand. A nudgy happy young man, about 20, sitting next to you, peering over your shoulder, just can’t resist blurting out, “Pardon my intrusion, looks like I could be your customer, but I kind of don’t relate to your description of the audience…seems a little theoretical and outdated.
As curious as I am to imagine his reaction, the situation today may not be totally hypothetical. You probably did forget to add him in your definition. Your next door neighbour could well turn out to be your customer and a smarter marketer at the same time.
There is a sea change in the consumer’s outlook towards his life today. The democracy game is taking its true form now. The customer today knows that he is not a part of a mob, is aware of his worth and is ready to take matters in his own hands. Users are creating content that other users find appealing. The rise of the many “express yourself” platforms highlights this dominant need to connect. Youtube, MySpace, Flicker, SeeMe TV to name a few. Today a recorded strumming of the guitar in the confines of one's room, when uploaded on YouTube can invite viewer hits running into thousands. A day-to-day example of this phenomenon is the increase in citizen journalism, where users, armed with camera phones, laptops etc. are capturing news events and publishing them on the net or live news channels. Having a personal blog is almost a fashion statement today.
And when freedom of self expression becomes fashion, the trend cannot be ignored. Marketers need to harness this trend by co-creating content with their consumers. Let your customers come up with your products for you. The power of harnessing your customers’ insights is amazing. You are connecting directly to the insights, dreams and beliefs of your customers, ensuring that you will hit a home-run with the rest of the world too.. And the funny thing is – they will do it for free, and even create the right buzz for you.
This trend might well turn out to be a marketer’s most competitive tool of obtaining customer-centric brand propositions and put an end to the conventional approaches to marketing.
In the traditional system of value creation, the consumer had a secondary role. His needs were merely second guessed and the connection was a one way road, from the product to the consumer.
The USP was a proposition to the customer that the competition either cannot or does not offer. It had to be unique – either a unique feature of the product or a claim not otherwise made in that particular product category. On the face of it, there seems nothing wrong with the USP theory. Marketing is all about creating differentiation vis-à-vis competition. However, we must not forget that 50 years back, technological capability was unevenly distributed. In those days a handful of companies had the muscle to innovate, while the rest were hurriedly trying to emulate them. Owing to technological disparity, there was a huge delay in imitator products hitting the market. This gave the innovating company ample time to harvest the profitability from these innovations. The Unique Selling Proposition, which focused on differences from what competition had to offer, was probably a viable strategy then.
Things changed rapidly with the significant strides in the field of Information Technology that led to instant availability of information which leveled the playing field and democraticised quality of products. More and more companies became champions at churning out me-too products with a slight change that made them legally acceptable. Thus, it became very difficult for manufacturers to create focused product advantages as means to brand building and creating differentiation and thus began the age of parity where consumers did not perceive any meaningful difference between brands.
Enter the Unique Buying Proposition, UBP. The USP was essentially what the marketer wanted to say through the product whereas the UBP was something that the consumer needed to hear that the marketer could say. It was a complete 180 degree change in approach to the entire process of marketing and the basic premise of this was that the only sustainable source of competitive advantage was a thorough understanding of the customer. This resulted in multi-million dollars research budgets for marketers in their quest to understand customer motivations and need-gaps. Focus groups, in-depth interviews, dyads, triads and all other forms of research to study the customer for insight – what does the customer really want and how can we connect our product to that primal need. While UBP as a proposition is certainly a better approach to the conventional USP and is still in practice today, the need of the hour has changed.
The consumer is no longer merely a source of input for the brand but is willing to partner with you. The boom in technology has broken the barrier between the marketer and the consumer and managed unison between these ends. The consumer today is astute enough and knows the dynamics of the other side as much as the marketer believes he knows him. Not only is he aware today, but also proactive. The traditional research model of hunting down the target audience and coaxing him with questions is no longer mandatory. As the consumer himself is willing to express his feelings and opinions.
The insight here is to open up your brand to its users. Not limiting the brand to being a spectacle, but being for the people, by the people.
The age of the User Generated Proposition (UGP) is here and now. The power of harnessing your customers’ opinion is not just an opinion now. It may well be the final word.
Some marketers have already started cashing in on the trend. Nokia N-Series’ proposition is not its sleek looks or advanced technology or enough and more space for your world to fit in, but is based on the fact that you can create your own music. Furthermore, it even provides a platform for you to explore yourself and showcase to the world, by backing this proposition with “Discover the DJ in you” contest.
General Motors worldwide has leveraged this trend successfully for the Chevrolet Tahoe. As part of a creative new ad campaign, General Motors teamed up with Donald Trump's 'The Apprentice' franchise to create a website that allowed prospectives to make their own commercials online. The contest was called “Make your own Tahoe”. The readers had a handle on selecting backgrounds, video shots, as well as input text for the commercial.
All this points out clearly to one thing. There is no defined conveyer and receiver of the message today. The boundaries are osmotic. Thus, the consumer will define what he wants. And if you have the muscle to deliver it, you can hope to score!
As curious as I am to imagine his reaction, the situation today may not be totally hypothetical. You probably did forget to add him in your definition. Your next door neighbour could well turn out to be your customer and a smarter marketer at the same time.
There is a sea change in the consumer’s outlook towards his life today. The democracy game is taking its true form now. The customer today knows that he is not a part of a mob, is aware of his worth and is ready to take matters in his own hands. Users are creating content that other users find appealing. The rise of the many “express yourself” platforms highlights this dominant need to connect. Youtube, MySpace, Flicker, SeeMe TV to name a few. Today a recorded strumming of the guitar in the confines of one's room, when uploaded on YouTube can invite viewer hits running into thousands. A day-to-day example of this phenomenon is the increase in citizen journalism, where users, armed with camera phones, laptops etc. are capturing news events and publishing them on the net or live news channels. Having a personal blog is almost a fashion statement today.
And when freedom of self expression becomes fashion, the trend cannot be ignored. Marketers need to harness this trend by co-creating content with their consumers. Let your customers come up with your products for you. The power of harnessing your customers’ insights is amazing. You are connecting directly to the insights, dreams and beliefs of your customers, ensuring that you will hit a home-run with the rest of the world too.. And the funny thing is – they will do it for free, and even create the right buzz for you.
This trend might well turn out to be a marketer’s most competitive tool of obtaining customer-centric brand propositions and put an end to the conventional approaches to marketing.
In the traditional system of value creation, the consumer had a secondary role. His needs were merely second guessed and the connection was a one way road, from the product to the consumer.
The USP was a proposition to the customer that the competition either cannot or does not offer. It had to be unique – either a unique feature of the product or a claim not otherwise made in that particular product category. On the face of it, there seems nothing wrong with the USP theory. Marketing is all about creating differentiation vis-à-vis competition. However, we must not forget that 50 years back, technological capability was unevenly distributed. In those days a handful of companies had the muscle to innovate, while the rest were hurriedly trying to emulate them. Owing to technological disparity, there was a huge delay in imitator products hitting the market. This gave the innovating company ample time to harvest the profitability from these innovations. The Unique Selling Proposition, which focused on differences from what competition had to offer, was probably a viable strategy then.
Things changed rapidly with the significant strides in the field of Information Technology that led to instant availability of information which leveled the playing field and democraticised quality of products. More and more companies became champions at churning out me-too products with a slight change that made them legally acceptable. Thus, it became very difficult for manufacturers to create focused product advantages as means to brand building and creating differentiation and thus began the age of parity where consumers did not perceive any meaningful difference between brands.
Enter the Unique Buying Proposition, UBP. The USP was essentially what the marketer wanted to say through the product whereas the UBP was something that the consumer needed to hear that the marketer could say. It was a complete 180 degree change in approach to the entire process of marketing and the basic premise of this was that the only sustainable source of competitive advantage was a thorough understanding of the customer. This resulted in multi-million dollars research budgets for marketers in their quest to understand customer motivations and need-gaps. Focus groups, in-depth interviews, dyads, triads and all other forms of research to study the customer for insight – what does the customer really want and how can we connect our product to that primal need. While UBP as a proposition is certainly a better approach to the conventional USP and is still in practice today, the need of the hour has changed.
The consumer is no longer merely a source of input for the brand but is willing to partner with you. The boom in technology has broken the barrier between the marketer and the consumer and managed unison between these ends. The consumer today is astute enough and knows the dynamics of the other side as much as the marketer believes he knows him. Not only is he aware today, but also proactive. The traditional research model of hunting down the target audience and coaxing him with questions is no longer mandatory. As the consumer himself is willing to express his feelings and opinions.
The insight here is to open up your brand to its users. Not limiting the brand to being a spectacle, but being for the people, by the people.
The age of the User Generated Proposition (UGP) is here and now. The power of harnessing your customers’ opinion is not just an opinion now. It may well be the final word.
Some marketers have already started cashing in on the trend. Nokia N-Series’ proposition is not its sleek looks or advanced technology or enough and more space for your world to fit in, but is based on the fact that you can create your own music. Furthermore, it even provides a platform for you to explore yourself and showcase to the world, by backing this proposition with “Discover the DJ in you” contest.
General Motors worldwide has leveraged this trend successfully for the Chevrolet Tahoe. As part of a creative new ad campaign, General Motors teamed up with Donald Trump's 'The Apprentice' franchise to create a website that allowed prospectives to make their own commercials online. The contest was called “Make your own Tahoe”. The readers had a handle on selecting backgrounds, video shots, as well as input text for the commercial.
All this points out clearly to one thing. There is no defined conveyer and receiver of the message today. The boundaries are osmotic. Thus, the consumer will define what he wants. And if you have the muscle to deliver it, you can hope to score!
The car advertising in India
Are consumers buying a car or are they buying a brand? Are brands locked in mere functional objectivities?
Since liberalization, the Indian car industry has witnessed the entry of a large number of automobile brands. As increased competition eventually rallies price equality, product and brand value propositions become key to selling strategies. In India, car brands are sold only on functional constructs and have somewhat fallen short on delineating strong, powerful brand constructs. Brands are grappling with functional or value differentiators at best leveraged to emotional benefits. Is there a force of constraint that limits brands or does the category need a finer understanding?
At one level, the Indian car industry is still at a very nascent stage with a large number of the middle class still acquiring their first car ever. The middle class has entered the consumerism era and the fascination for features and functional efficiency are the dominant parameters of luxury. Buying a car is practical indulgence. Most successful brands in the category have leveraged their strengths confined within functional constructs and this is true of all segments….be it entry level or top end premium segments. From a Maruti 800 to a Skoda or even a Honda Accord are relying on their inherent product strengths in positioning themselves. The obsession with feature driven benefits limits brands from exploring stronger brand ideologies outside the territory of functional benefits. How can brands really carve a space of their own that emerges outside the pure functional benefits? And at the end of the day, are we selling features or are we creating a brand?
Every car has an instinctive character of its own that comes from its design. If cars are a reflection of the owner’s identity, the identity needs to take its roots from the car itself and not the imagined owner. The different components of design, form, exteriors, interiors, all interact in a manner that collectively form a spirit of the automobile which should be brought to life. Brands need to unlock themselves from reducing the whole to parts and instead define the collective spirit of the automotive. In doing so, we can transform the language of the machine to a human spirit. This spirit identified will insinuate metaphorical associations that form the basis of a brand ideology. When a brand carves an ideology for itself, it professes a belief and philosophy of life which has more powerful social and cultural meanings than a singular emotional payoff. Brands need to enlarge the canvas of thought.
The traditional Indian mindset, known to be obsessive with time references of the past and the future, is changing. With increasing opportunities, rising incomes have short-circuited aspirations, bringing dreams closer to reality. Market dynamics of loans and credit cards have made it possible for us to believe in life today. We are increasingly living in the present. As car models are designed and re-designed to meet contemporary aesthetic codes, Indian car advertising has failed to capture cars as symbolic references of fashion and style statements. Cars are sensational and have drool value, but brands have instead characterized the aesthetics into a lifestyle statement. The increasing culture of accessorizing cars is a statement of style, and not of lifestyle. The difference in fashion versus lifestyle lies in the reference of time. While fashion is the expression of a person’s identity today, lifestyle embodies aspirations of tomorrow. India is metamorphosing into a world of aesthetics. The Indian consumer is being driven to consciously appreciate aesthetic form. From the glamour of shopping malls to fashion in Bollywood to modern café outlets, experience through ambience and aesthetic appeal has exposed the Indian consumer to the design culture. Brands need to align with the inherent sensational language of the category and infuse codes of fashion and aesthetics, which seem to be missing from current car advertising. While this need not be central to the core ideology, the brand personality that it will evoke plays a critical role for imagery associations and aspirations.
Lastly, every brand needs to be put to test. We rely too much on research and as a consequence brands have become only a reflection of consumer mind states. We need to understand that brands can occupy a special space in consumers’ lives by filling a gap, by being the inspirational ideology of the times and not a mere code of association. Music and religion have that power because they fill gaps in a culture’s philosophy and brands must aspire to achieve that stature.
Since liberalization, the Indian car industry has witnessed the entry of a large number of automobile brands. As increased competition eventually rallies price equality, product and brand value propositions become key to selling strategies. In India, car brands are sold only on functional constructs and have somewhat fallen short on delineating strong, powerful brand constructs. Brands are grappling with functional or value differentiators at best leveraged to emotional benefits. Is there a force of constraint that limits brands or does the category need a finer understanding?
At one level, the Indian car industry is still at a very nascent stage with a large number of the middle class still acquiring their first car ever. The middle class has entered the consumerism era and the fascination for features and functional efficiency are the dominant parameters of luxury. Buying a car is practical indulgence. Most successful brands in the category have leveraged their strengths confined within functional constructs and this is true of all segments….be it entry level or top end premium segments. From a Maruti 800 to a Skoda or even a Honda Accord are relying on their inherent product strengths in positioning themselves. The obsession with feature driven benefits limits brands from exploring stronger brand ideologies outside the territory of functional benefits. How can brands really carve a space of their own that emerges outside the pure functional benefits? And at the end of the day, are we selling features or are we creating a brand?
Every car has an instinctive character of its own that comes from its design. If cars are a reflection of the owner’s identity, the identity needs to take its roots from the car itself and not the imagined owner. The different components of design, form, exteriors, interiors, all interact in a manner that collectively form a spirit of the automobile which should be brought to life. Brands need to unlock themselves from reducing the whole to parts and instead define the collective spirit of the automotive. In doing so, we can transform the language of the machine to a human spirit. This spirit identified will insinuate metaphorical associations that form the basis of a brand ideology. When a brand carves an ideology for itself, it professes a belief and philosophy of life which has more powerful social and cultural meanings than a singular emotional payoff. Brands need to enlarge the canvas of thought.
The traditional Indian mindset, known to be obsessive with time references of the past and the future, is changing. With increasing opportunities, rising incomes have short-circuited aspirations, bringing dreams closer to reality. Market dynamics of loans and credit cards have made it possible for us to believe in life today. We are increasingly living in the present. As car models are designed and re-designed to meet contemporary aesthetic codes, Indian car advertising has failed to capture cars as symbolic references of fashion and style statements. Cars are sensational and have drool value, but brands have instead characterized the aesthetics into a lifestyle statement. The increasing culture of accessorizing cars is a statement of style, and not of lifestyle. The difference in fashion versus lifestyle lies in the reference of time. While fashion is the expression of a person’s identity today, lifestyle embodies aspirations of tomorrow. India is metamorphosing into a world of aesthetics. The Indian consumer is being driven to consciously appreciate aesthetic form. From the glamour of shopping malls to fashion in Bollywood to modern café outlets, experience through ambience and aesthetic appeal has exposed the Indian consumer to the design culture. Brands need to align with the inherent sensational language of the category and infuse codes of fashion and aesthetics, which seem to be missing from current car advertising. While this need not be central to the core ideology, the brand personality that it will evoke plays a critical role for imagery associations and aspirations.
Lastly, every brand needs to be put to test. We rely too much on research and as a consequence brands have become only a reflection of consumer mind states. We need to understand that brands can occupy a special space in consumers’ lives by filling a gap, by being the inspirational ideology of the times and not a mere code of association. Music and religion have that power because they fill gaps in a culture’s philosophy and brands must aspire to achieve that stature.
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