MN AMA – How The Right Strategy Can Beat The Un-Economy

pic-1Another fascinating presentation by Bruce Tait from Tait Sabler.  In the difficult economic times, is it all about the price? No! 

Short-term decisions can destroy value.  “Emotional” benefits is not that important… “Utility” is important… but – what if you have value, but it is not perceived as value?

Decisions are made emotionally and then justified rationally. Value is often perceived as: value = functional benefit / price. But is it all? Leadership brands pay attention to value part of the equation.

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It is important to “find an enemy of your brand” (not a competitor – an issue (not enough time, etc.)

Wal-Mart “out positioned” Target:
Wal-Mart: pay less > live better (more time/money for what you love)
Target: pay less > expect more (inexpensive upscale products)

People pay more for high-status item when they feel powerless…

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Badge Model starts with functional benefits (what the product does), moves up to the external badge (how to appear to others), move up to the internal badge (reinforce positive self-image), and culminates with the transformational benefit (what the consumer hopes to become through the badge).

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The most important – relevance and differentiation. Comparing on price leads to commodity. #1 reason why brands fail is lack of differentiation. This is the area where creativity is important.

HYUNDAI – now has 18% of the market. It was the first company that was able to connect its strategy with the most obvious fear of the times: if you loose your job, you can return the new car you purchased.

Why Obama won the competition with Hillary?  Branding!
Hillary – functional. Obama – movement.

Human brain does not change during “un economy.”

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