Comments on: Business Tip: Survival of the Experimentals

By: FoolsGold

FoolsGold — Sat, 28 Nov 2009 08:22:10 +0000

Branding is probably built more on hype than anything else.

A brand name, a logo, a well-known packaging design each add not one whit of value to the product except perhaps in the mind of the unalert consumer.

Consider Liquid Laundry Bleach. Its a 5.25 percent aqueous solution of sodium hypochlorite no matter what cutesy name you give it. Does endowing it with some “identity” and conducting an advertising campaign about non-existent superior features really provide some sort of return on the investment? Its liquid laundry bleach. Its a commodity.
Only the utterly ignorant would think the cutesy name and glowing adjectives mean anything at all. Do consumers really think that an actress in a tv commercial singing about her laundry bleach is really experiencing great joy and bliss due to the unique name on the lable? She is a professional actress and in order to be filmed gleefully singing and dancing around her laundryroom she has to imagine the washer and dryer to be male exotic dancers clamoring for her favors.

What possible gain is there to branding in such a situation?

The consumer is being lured into the belief that some significant points exist. In other consumer situations its possible to exploit vague aspects. Everyone has had good and bad experiences in hotels. Everyone has had great meals and rather bland meals in the same restaurant at one time or another. Create some Customer Satisfaction Index and you can try to create an illusion of measurable differences but in reality all the variable enjoyment aspects have not been changed one bit.

By: Joe Duck

Joe Duck — Fri, 27 Nov 2009 07:24:55 +0000

FoolsGold you have described my general approach as well, which is one of the reasons I’m skeptical of the mega-expense of “branding” campaigns, especially for new things that can even more easily fall victim to fickle consumer preferences.

By: glenn

glenn — Fri, 27 Nov 2009 02:04:14 +0000

You mean like making 6 figures off a future trade with Tyson foods?

By: the next generation

the next generation — Fri, 27 Nov 2009 01:05:21 +0000

Glenn, you single out GS…but what about the countless instances of insider trading done on the basis of material non-public information?

Joe, you’re on the money. A great businessman once told me: “Fail quickly, fail cheaply.”

By: FoolsGold

FoolsGold — Thu, 26 Nov 2009 22:07:46 +0000

Branding? Not quite sure what this very au courant buzzword actually means. I’ve used the example of fickle consumers being “loyal” to a particular glitzy restaurant or nightclub only until the next trendy news item sends them elsewhere. Brand identity? Brand loyalty? Nope!

I think the computer revolution pretty much showed most people shop largely on price, speed and reliability.

When I found out too late that the airline had changed the departure gate, my hotel selection was based only marginally on its name, the deciding factor was location in relation to the airport and shuttle availability.

Booze? I order Scotch. I don’t specify a particular brand.
Restaurant? Determinant is geography, not brand names.

By: glenn

glenn — Thu, 26 Nov 2009 04:05:19 +0000

In regard to your bet…if the market were working as expected you might have a better chance at “guessing”. Unless you know someone on the White House or high up in GS…you don’t have a chance. PT Barnum would have some choice words for your bet.

You are right about branding, branding mattered when you had to go to a “store” or shopping “blind” and you remembered the brand to buy not the performance of the product which you can now read anywhere anytime from consumer comments on literally everything.

By: glenn

glenn — Thu, 26 Nov 2009 04:02:04 +0000

Actually Joe all you need to do is making something up. Create some bogus findings, hide the truth, demonize anyone who doesn’t believe you, get the UN to support you, get billions in funding and enslave the world!!!

Woo hoo…before you know it you are the next Dr. Evil!!!
1 million dollars!!!

By: gwalter

gwalter — Wed, 25 Nov 2009 10:49:23 +0000

So what I hear you saying is that it is 99% perspiration, and 1% inspiration.

Good, solid advice here! Thanks!

By: JoeDuck

JoeDuck — Wed, 25 Nov 2009 10:43:33 +0000

Ha – almost 50 comments on the Climate email hack, zero here. Maybe I should just go into the climate blog biz….