The main premise is the definition of the brand as a person – an instantaneous evaluation in a two-dimentional scale of competence and warmth.
The evaluation can be applicable to people and also to brands. Loyalty test, where brands and well-known individuals evaluated on the scale of competence and warmth give an interesting result, though, not an unexpected one 😉
As many modern publications, the book suggests that public short-term oriented corporations will find it more difficult to be perceived as warm and authentic. This environment will give an opportunity to smaller organizations to generate loyalty and passion from consumers.
Authenticity and particularly admission of the obvious mistakes is very beneficial in increasing likability – for people (based on the well-known spilled coffee test) and a very interesting advertisement of Domino Pizza, where the company admitted that the pizza was not very good. Domino’s commercial was rated high, and the company had the best quarter after the campaign, while spending less money on advertising. An excellent alternative to “new and improved…”
Other interesting notes:
- CEO ads are more effective than other types of ads, but not all CEO ads. The CEO needs to be sincere and authentic.
- Celebrity ads are outperformed by any other type of ads… why are they used? 🙂
- Groopon as a method of bringing of the new customers may not be very effective – it brings people who are interested in bargains in general and may not become the future customers of the establishment. Success of the Groupon promotions is evaluated how employees are satisfied with the promotion.
- Brands that are routinely highly valued by the consumers put customers, employees, environment and local communities ahead of short-term interested of the markets
- Lululemon – cult brand that does not own a CRM and technically does not have marketing… the highest ranking marketer is the community manager – the brand does try to cultivate the community around its establishment… Free yoga classes in the store before the store opens… partnership with local yoga teachers who’s classes are promoted on the site in exchange for promotion of the stores… high quality of clothing that withstand wash. Unfortunately, recent issues with quality and reaction to the issues from the company happened after the company became a public corporation.