Brand Marketing Surprise! Wealthy Consumers Don’t Lust After Logos on Luxury Goods

Surprise! Wealthy Consumers Don’t Lust After Logos on Luxury Goods

Posted by Barry Silverstein on Brandchannel.com

Identifying with a luxury brand is a lot more subtle among wealthy consumers than you think.

“Subtle Signals of Inconspicuous Consumption,” a paper appearing in the current issue of Journal of Consumer Research, suggests that high-end shoppers are more in tune with “discreet markers, such as distinctive design or detailing,” than obvious brand logos.

“Signaling Status with Luxury Goods: The Role of Brand Prominence,” another study (this one published in the July issue of Journal of Marketing), finds that “luxury brands charge more for ‘quieter’ items with subtle logo placement and discreet appeal.”

Paris Hilton may not care, but brand marketers should.

The Journal of Marketing study, by a doctoral student and two professors, examined three categories of luxury goods: designer handbags, men’s shoes, and high-end vehicles. A consumer survey was conducted in Southern California malls chosen for their demographics. In addition to the surveys, the researchers analyzed market data and included counterfeit goods in their study.

Joseph Nunes, associate professor of marketing USC’s Marshall School of Business and one of the study’s authors, said, “A significant segment of the population does not want to be branded, preferring to be understated… and is willing to pay a premium to have ‘quiet’ goods without a brand mark.”

The study classified consumers into four groups, based on whether they preferred “loud” products (with prominent brand logos) or “quiet” goods. The four groups are:

- Patricians: “Wealthy consumers low in need for status” who “pay a premium for quiet goods, products that only their fellow patricians can recognize”
- Parvenus: “Wealthy consumers high in need for status” who “use loud luxury goods to signal to the less affluent that they are not one of them”
- Poseurs: Consumers who “emulate those who they recognize to be wealthy;” they cannot afford luxury goods but will buy counterfeit items.
- Proletarians: Consumer who are not driven by status purchases.

According to the study, Patricians do not buy “flashy” items that have prominent logos; rather, they find subtle logo placement more appealing.

Although certain heiresses still fall into the “parvenus” camp of and flaunt their designer logos, its seems that classy people like classy (discreet) luxury goods.

New Microsoft brand logos, company tagline revealed at MGX event?

Although Microsoft have confirmed there will not be a logo change at this time, I still couldn’t help but include the image in question.

Story from Engadget: It looks like Microsoft may have revealed something big at its annual MGX (Microsoft Global Exchange) event, namely… new logos for its main brands and a fresh brand motto. “Be What’s Next” touts a teaser which has been posted on YouTube, along with a fast moving sequence of morphing logos, shuffling from Windows, to Windows Phone, Xbox, Bing, and finally the familiar Office logo that’s been kicking around for a little longer.

It’s unclear if these are just treatments used for a promo at the event, or if this is a signal that Redmond is dumping its familiar (and frankly dated) iconography for something a little looser, leaner, and hipper, but we can’t say it would be a bad thing. It would certainly make sense against a backdrop of potential comeback in the mobile space, gains in search, and the seemingly successful (or at least satisfying) Windows 7 launch. One thing is for sure, MGX is a corporate, non-public opportunity for the Microsoft faithful to cheer the brand (Ballmer received a 30 year commemoration at MGX 2010), so this would definitely be the place to unfurl some new branding.

Facebook’s 500 Million Members [INFOGRAPHIC]

Facebook reached its 500 million member milestone yesterday and celebrated the event with the launch of Facebook Stories. The monumental moment also played a role in the ABC World News report featuring a candid interview between Diane Sawyer and CEO Mark Zuckerberg.

To commemorate the achievement, the team at Facebakers.com put together the comprehensive infographic included below (click to enlarge). The illustration breaks down the demographics of Facebook’s burgeoning population (according to their own data on the service), and explores the international makeup of the site.

Cavs owner’s LeBron James letter mocked for Comic Sans font

I’ve been fighting the Comic Sans war for years so I truly enjoyed the following story.

The below article is a follow up to the LeBron story I posted yesterday. Who would have thought you would get a history lesson about the origins of Comic Sans font in an article involving LeBron James joining the Miami Heat.

Article originally posted by John D. Sutter on CNN.com:

(CNN) — Dear computer users: If you’re ever going to write a fuming letter, think twice before setting the font to the oh-so-mockable Comic Sans.

Take it from Dan Gilbert, the owner of the Cleveland Cavaliers, the NBA team that lost its star basketball player, LeBron James, on Thursday night.

After Gilbert posted a rant — in the cutesy Comic Sans typeface — about James’ departure on NBA.com, bloggers, newspaper writers and Twitter pundits lashed back with a collective message that essentially said this:

Unless you’re a fourth-grader, or being ironic, or the author of a comic book, or on vacation from the 1990s, never use that typeface.

On Twitter, discussion of Gilbert’s font choice briefly trumped the debate about James’ move to the Miami Heat, according to the blog TechCrunch, which posted a screen grab of the trending topics from that messaging site.

One of the blog’s writers, MG Siegler, says the font faux pas is especially egregious given how much press Gilbert’s letter is receiving.

“Normally a staple among six-year olds and grandmothers, Gilbert for some reason decided to use the font to write what will undoubtedly be the most public message he will ever write,” he writes. “And it’s too bad, because the content of the message itself is quite good — very juicy. Gilbert’s use of quotes, capitalization, and bolded letters makes it very clear just how pissed off he is.”

Siegler calls Comic Sans “probably the worst font ever to grace the computer screen.”

Comic Sans is the brainchild of Vincent Connare, who created the font while working as a “typographic engineer” at Microsoft in the 1990s. There were primarily two ideas behind the font’s origin: Microsoft wanted a font that was more “FUN” than the rest, and comic-book lettering hadn’t transferred well from books to the computer screen.

“There was a consistent style used in comics, which was quite unlike the style of lettering you see in newspaper cartoon strips,” Connare writes on Microsoft’s website dedicated to the font. “I also noticed that many people were inappropriately using drafting lettering in comic speech balloons.”

Since the ’90s though, Comic Sans has become a mockery on the internet. A movement called “Ban Comic Sans” has been trying to kill the font.

“The typeface has been used in countless contexts from restaurant signage to college exams to medical information,” an introductory post on the site bancomicsans.com says.

“These widespread abuses of printed type threaten to erode the very foundations upon which centuries of typographic history are built.”

In a CollegeHumor.com video about a fictional “font conference,” a guy representing Comic Sans swoops into the final scene, dressed as a boyish superhero in a cape and tights, only to find that all of his friends have already been killed.

“Y’all good? I’m gonna peace out. If anyone needs me, Comic Sans will be over here!” the character says before stepping out of the frame.

Connare is apparently able to maintain a sense of humor about his creation.

“If you love it, you don’t know much about typography,” he told The Wall Street Journal in 2009, before adding: “If you hate it, you really don’t know much about typography, either, and you should get another hobby.”

As for Gilbert, the Cavs’ owner, the font choice may have served the purpose — whether intended or not — of getting his message out to the public.

Stories about the fuming letter on the websites for The Washington Post, ESPN, CBS Sports and Time all mentioned Gilbert’s choice of Comic Sans.

“You see, he wrote in Comic Sans so that you would know he’s serious,” Matt Moore writes on a blog at CBSSports.com.

On a Washington Post blog, Michael Lee writes that Comic Sans only adds to the “ridiculous nature of the evening” on Thursday.

TechCrunch’s Siegler, referring to the fonts made up mostly of symbols, said he will “await a LeBron response in Wingdings.”

Personal Brand Valuation: “LeBron James: Driving Brand Value”

By JOE WALLJASPER

Wednesday, July 7, 2010

In their attempt to woo LeBron James, the New York Knicks commissioned a study by marketing consultant Interbrand.

The “Personal Brand Valuation” study was titled, “LeBron James: Driving Brand Value,” and it contained an awful lot of stuff about brands.

“As with any good co-branded partnership, aligning with a strong franchise brand will serve to expand the influence of the player’s brand,” the study said. “A franchise that affords James the greatest opportunity to create a unique legacy will increase the probability that he achieves his brand potential.”

I would have had so much more respect for the Knicks if they had just employed hookers instead of playing the brand card.

But I suppose the Knicks’ use of this PowerPoint presentation had two potential paths to victory. Plan A was to lull James to sleep so team President Donnie Walsh could place an ink pen in James’ right hand and trace a signature on a contract. Failing that, Plan B was to convince James that he could make $1 billion in his career with the Knicks — much more than with any other suitor.

How could Interbrand really determine this?

“We leveraged our extensive methodology,” the report said, “to estimate expected and potential earnings under a variety of scenarios.”

Unfortunately, that sentence was written by a cyborg, robbing us of the opportunity to punch a human author in the face. If Interbrand — a subsidiary of Omnicom — weren’t real, George Orwell would have created it.

If we take Interbrand’s word for it, the first title won by an athlete can increase nonsalary earnings by 40 percent.

Yet New Jersey Nets billionaire Owner Mikhail Prokhorov has said that if James were to join Dwyane Wade and Chris Bosh on the same team, he could win multiple NBA titles and still “diminish the LeBron brand” because his team would be so much more talented than the opposition. The Cleveland Cavaliers argued that James’ international brand is so strong it makes no difference where he plays, so why not Cleveland?

If you hadn’t noticed, brands are very hot right now. The Big Ten remains the Big Ten despite 12 members, and the Big 12 remains the Big 12 despite 10 members.

Why? Brand trumps math.

Athletes used to have personalities. Now, they have brands. You know they’ve really arrived when they wear gear with their own logos to their press conferences. You could construct a branded athletic wardrobe to match your moods — aggressive (Michael Jordan), elegant (Roger Federer) or aroused (Tiger Woods).

James can establish his defining label with his choice of team. The brands run the gamut from the Cavaliers (loyalty) to the Knicks (vanity) to the Clippers (insanity).

10 Dos and Don’ts for Brands on Twitter

Original article appears on Mashable.

When it comes to Twitter and brands, consumers who are also Twitter users have plenty to say on the subject. We’ve interviewed a few folks, analyzed a couple of streams, and come up with ten common, recurring requests and complaints from users who’ve engaged with brands on Twitter.

As it turns out, the rules they expect brands to follow are distinct from the code they expect “normal” users to follow.

Check out these dicta and caveats, and let us know your experiences and best practices in the comments.

1. Don’t Be a Showoff

Give Twitter users your features and benefits. Let them know about special deals. Don’t post links to your latest press release, promote articles written by your CEO or make extravagant claims. A good rule of thumb to determine whether a tweet is user-friendly or brand vanity is to ask yourself, “If I didn’t work here, would I care about this?” If you’re not sure, ask a brutally honest friend who doesn’t work at your company.

2. Don’t Use Poor Grammar or Spelling

If your replying 2 a user make sure ur social media intern doesnt do it like this LOL!

Seriously, grammar Nazis abound on the web. Write words out in their entirety, don’t use confusing abbreviations or too many of them, make sure punctuation is pristine and try to keep “lolspeak” and emoticons to a minimum.

3. Don’t Get Too Personal

You might be a real person hiding behind your brand’s Twitter account, but depending on the size and nature of the company, this isn’t likely the best place to share your favorite band’s latest track, or compliment a user’s hairdo. Keep your conversations warm but professional; it’s what users expect from a brand ambassador, and anything else comes off as creepy.

4. Don’t Auto-Tweet

It’s OK to set up tweets to roll out while you’re away from your desk, but think long and hard before you automate an entire feed to stream into your Twitter account. Users can smell a bot from miles away, and the point of Twitter is to be personally engaging more than blatantly promotional. Also, this might go without saying for the tech-savvy marketers among us, but don’t automatically DM new followers; it’s seen as spam. And never DM someone your account doesn’t also follow.

5. Don’t Leave Air in the Conversation

If you’re carrying on a series of @replies, don’t wait a day or two between messages. This isn’t the Pony Express; users will want a reply within a few hours. If you wait longer, they may have already forgotten what you were talking about. And be sure to use standard reply mechanisms so the Twitter web interface and other applications will thread the conversation, in case either party needs to reference a previous comment.

6. Don’t Overtweet

If you’re using Twitter as a 24/7, one-way broadcast system, you’re not having a conversation — you might be just “shouting” at your followers. While some brands have successfully maintained one-way, broadcast-only, no-@reply accounts, many opt to engage directly with their followers. Whichever method you choose, make sure you’re not tweeting too often and flooding your followers’ timelines.

7. Do Shout Out to Users Who Mention You

Especially if that mention is favorable, don’t be shy about tweeting thanks, tips or promotions to someone who’s shown your brand some Twitter love. Most of the time, users are surprised and delighted to find a name brand in their stream of replies. Exercise caution, however, when engaging with users who’ve made negative comments. Those conversations can go very well, or they can backfire. Always remain empathetic but professional.

8. Do Monitor Keywords and Competitors

If someone expresses issues with a competitor or poses a general question about your vertical, you should be all over it within a few hours. It’s a great opportunity to win new fans, convert seekers into customers and develop a reputation as a knowledgeable and responsive resource in your industry. Just make sure you keep off-brand replies to a non-creepy modicum.

9. Do Make an Informative Profile

Use your company or brand logo as your avatar, and state the purpose of the account clearly in your description. Your profile’s main link should direct Twitter followers to the most informative, engaging and user-friendly part of your website.

10. Do Fish Where the Fish Are

Let’s be honest: Not every brand needs to be on Twitter. Every brand should be monitoring Twitter — and we’ve written a lot about social media monitoring tools for brands on Mashable — but not every company’s customers are going to be on this site or be open to being contacted this way. If your brand has an older demographic, or if your product is of a more sensitive nature, you might want to be a silent observer of this ecosystem rather than an active participant.

TheOatmeal.com: When a client takes over a website redesign

The below comic was *borrowed* from a wonderful site called TheOatmeal.com. If you love the comic, I suggest you buy the poster here.

How to Measure Social Media Marketing Performance

Here’s a great article I stumbled across today and a very relevant topic!

By Ryan Deutsch
Published May 19, 2010

Early efforts in social media marketing have created a tremendous amount of buzz and interest, but surprisingly few case studies focus on monetization.

A recent study by Ketchum and Nielsen shows the number-one activity of social media users (online or offline) is reading blogs – even above TV!So it’s clear that social media is here to stay, and accountable programs must be created to deliver performance and ROI.

Here are 3 steps to help you get started:

#1: Define Key Performance Indicators (KPIs) and Measure Against Them

In order to hold any marketing channel accountable, there first must be a framework of metrics that can be tracked, compared to a benchmark (industry or prior program performance) and analyzed over time.  Social channels are no different.  When looking to assign accountability to social programs, the first step is to define KPIs and measure against them.  The three key components to track are:

Expanded Reach to New Audiences

Reach refers to the additional impressions that social channels provide to a program. Reach addresses the first value of social media marketing: tapping into the power of the social web to engage previously unreachable prospects to your brand message.  In addition, reach through social channels increases a brand’s credibility as new consumers touched by social programs are being introduced by their peers or other respected “voices” on the social web. For example, the impact of a consumer seeing a friend recommend a brand as a result of a social program is much greater than seeing a static ad from the brand.

Influencer Sharing Behavior

Influencers (a.k.a. customers advocating for your brand) are essential to maximizing the viral impact of your social media programs. In order to leverage them properly, you need to determine the level of engagement between an influencer and the members of their social graph.

All influencers are not created equal. Some are exceptional at sharing a message but offer little in the way of engagement with their peers. Others generate little groundswell or buzz, but the peers they do touch take their advice.  Understanding who your influencers are within your customer base and tracking their sharing behavior are critical to optimizing program performance.

With the rise of social media, consumers are increasingly relying on user-generated content for purchase decisions.

Conversions and Monetization

Every social program must be associated with a call to action. Subscriptions to email lists, product purchases, signing up as a Facebook fan or downloading a free trial are all examples of calls to action.  In order to measure monetary contribution to business goals, the marketer must assign value to the social program’s call to action and then track the conversions.  Too often, social purists take a passive approach to program execution. The call to action need not be a sale. In fact, it could be motivating users to generate content to be added to a brand’s online community.  The point here is that a defensible value for the action must be defined and tracked.

The combination of these three KPIs (reach, sharing behavior and monetization) provides clear program success criteria and can be weighted based on a program’s objectives.  In the case of an awareness campaign, a marketer may place more weight on reach and sharing activity.  In the case of a direct response program, the opposite weighting could be applied.

#2: Create Predictable Results With Targeting

When looking at potential advocates to share a brand message on the social web, the number of friends one has on Facebook or the number of followers one has on Twitter is important, but it’s not the most important factor.  The real key to driving a predictable program is targeting.

Too often, social media programs start on the social web (where customer-specific data is scarce) and not within the CRM databases that companies have developed to provide deeper insight into their customers.   Accountable marketing programs need to be predictable, and predictability can only be driven on the social web once a brand identifies its most engaged customers and who among those are willing to advocate on its behalf.

Consider the current crisis faced by Toyota and how targeting could help drive advocacy, while a lack of targeting could be a disaster!  I am a lifelong, loyal Toyota owner.  I had my first Camry in 1996 and leased my second Camry in 1998.  In the meantime, my wife purchased a Toyota 4Runner in 1999 and another three years later.

We followed these vehicles with a Sienna Minivan, a brief stint with a certified pre-owned Lexus and finally my 2007 Camry.  I have owned no fewer than 6 Toyota vehicles in the last decade.  I love these cars; I stand ready to defend them.

As I mentioned before, marketers need to understand that all customers are not created equal on the social web, and the number of fans and followers the brand has is not the critical data point. It’s how customers feel about the brand and the relative propensity they have to share POSITIVE sentiment with their social graph.  Under the current system without proper social media targeting, Toyota is likely to ask my neighbor to advocate for the brand, who bought his first Camry last year and would love a reason to share his negative sentiment with his over 2,600 followers on Twitter and 700 friends on Facebook.

#3: Foster Viral Sharing With Incentives

Social media purists – take a deep breath before reading on.  Social media marketing is subject to the same rules and limitations as other marketing programs.  Specifically, there’s no way social media can become an accountable channel if it’s reliant on “lighting in a bottle” –type programs.  Viral activity from a set of advocates needs to be predictable. Equally important, marketers must be able to influence the social participation in their programs.  Incentivized sharing provides this level of predictability as well as an opportunity to throttle activity.

Rewarding customers for behavior, once again, is not a new concept.  Airlines, hotels,financial institutions and even coffee shops consistently reward customers for loyal patronage.  Why not apply that same logic to advocacy on the social web? Marketers need to build bi-directional incentives into social programs. This means they reward the influencer for inviting friends to participate in a brand’s program and then reward the influencer’s friends for acting on the viral invitation.

In other words, both the brand advocate and the advocate’s friend are treated like VIPs for engaging with the brand via the social web.  Programs that include these bi-directional incentives perform two times better than those that rely solely on altruistic motivation for sharing activity. As long as marketers are transparent about the incentivized offers, the integrity of the channel is maintained while the marketer can access a dial to turn KPIs like reach, sharing behavior and monetization up or down.

There’s been real innovation in the last year around social media marketing and many leading brands have taken advantage of the wave.  In order for it to continue, marketers must introduce a program-level discipline to their social marketing efforts. The concepts above are a great place to start. Define KPIs and track at the individual and program level over time, target social programs at your most engaged customers and introduce incentives for social sharing activity.

How to create a Brand Identity Guide for your company or organization

As a former Brand Manager, I tried to touch every project to make sure it communicated the company’s message appropriately. And I mean everything! From the email newsletter to the email signature (I personally am against ‘cute’ expressions & quotes added by most these days) there is a message being conveyed. That’s where a formal corporate Brand Identity Guide can help. Below is a list of many of the common components found in Branding Guides today.

1. Mission Statement

This brief statement will spell-out the organization’s purpose and guide its branding and marketing actions. A mission statement will offer a foundation for strategic planning, providing a clear path for decision-making.

2. Brand Purpose

Here, you’ll define the core purpose of your business—why your business exists—which will serve as the basis of your brand. It is the promise you make to your constituents (typically your customers).

3. Touchpoints

Your organization reaches out to its target audiences in a variety of ways. Every touchpoint is an opportunity to strengthen the brand and convey its distinct spirit to customers and prospects. Each communication builds awareness of and recognition for your organization’s commitment to its audiences. These touchpoints will nurture a bond with your audiences, and create loyalty toward the brand. Touchpoints may include home pages, landing pages, traditional or online advertising, direct mail, customer service, e-mail, industry events, new business development, employee relations, social media, PR and promotions.

4. Key Messages

Serving as the foundation for all written communications, these brief statements, three to 10 or so, are high level and reinforce the organization’s mission statement and brand/business purpose.

5. Taglines

Taglines are memorable phrases that summarize a brand’s personality and substance. The guide will specifically describe how and when taglines are to be utilized in all types of communications.

6. Logo

The logo is the primary visual symbol of the brand, appearing on every marketing piece and providing instant recognition of the organization’s efforts to reach its target audiences. The brand guide will offer a logo design rationale and history. It will dictate exactly how, where and when the logo is to be utilized, placed and positioned. Logo fonts, colors and sizes will be emphasized. The level of detail is directly tied to how serious the organization is about usage compliance. Specific examples of how to properly use the logo should be included. “Don’t Do This” examples may also be appropriate.

7. Color Palette

Few things can compete with color for igniting the senses and motivating people to take action. Define the print and online color values for the primary colors that should be used to represent the brand across all marketing mediums, including promotional items. For each Pantone and Web-friendly color value, a sample swatch will be displayed for reference. Secondary colors approved for accent use may also be defined here.

8. Typography

The typestyle used to display copy makes an important contribution to the brand identity. The appearance of text should be inviting and easy to read. The Brand Guide will define the exact fonts, sizes and emphasis approved for use in print and online communications. Details such as formatting for headlines, body copy, headers and subheaders, links, etc. should be included, along with examples.

9. Paper Stock

Printed marketing collateral such as brochures, letterhead, posters, buckslips and flyers, may require Brand Guide specifications such as paper stock. Here, the type of paper, its thickness and weight, and comparable alternatives will be defined.

10. Examples of What Not to Say/Do

To ensure that common errors are mitigated, it may be critical to include instructions and examples of what NOT to say or do in branded marketing communications. In addition, or alternatively, addressing commonly asked questions regarding brand compliance makes a wise inclusion.

11. Imagery

A brand is often expressed through a variety of photography that is meant to support key messages and convey a strong sense of meaning. Images should appeal to target audiences. A rationale should be provided for selecting imagery, along with a range of approved image samples. If a library of approved imagery exists, the guide will instruct readers as to how/where this library can be accessed.

12. Assets Library

A well-organized and easily accessible assets library (most often via an online portal) provides all internal and external parties involved in promoting the brand access to view and download the approved brand guide, color palette, logos, imagery, marketing materials—including letters, envelopes, self-mailers, brochures, promotional items, email templates—and more. The guide will instruct readers as to how/where this library can be accessed.

13. Approval Process

Some organizations may require that branded marketing materials undergo a review and approval process prior to production/launch. The brand guide will provide a summary of the process and how the reader can initiate it.

Greatest Web and Technology Brands for 2010

Each year, brand management consultancy interbrand develops a list of the top global brands. Examine this list and think about their branding messages and tactics over time. It should provide insights into how to brand your business like the professionals:

1.  IBM

2. Microsoft

3. Nokia

4. Google

5. Intel

6. HP

7. Cisco

8. Samsung

9. Apple

10. Oracle