11/4/2016

InterbrandBestGlobalBrands2012TheFutureofBrandBuilding

TheFutureofBrandBuilding
ByJezFrampton

Thelastfiveyearshavebeenmarkedbyeconomiccrises,sending
businessesrunningforcoverandsearchingforanswers.The
immediateresponseformanywastoattackthesupplyside:
trimthesupplychain,seekinternalefficiency,andattackcosts.
Butthebrutaltruthisthatinrecessionarytimescompetition
becomesevenmoreintense,andthisstrategyhasdiminishing
returns.Fiveyearsin,themantraisshiftingtowardsthedemand
sideoftheequation.
Drivenbyevermoredemandingcustomers,pushedbyemergingmarketcompetitors,andinspiredbycompanies
likeApple,manybusinessesarerediscoveringthepowerofcreativityanddesign,increasinginvestmentin
innovation,andtryingtobetterunderstandhowbrandsdrivetheirbusiness.Inshort,weareenteringanewage
ofdemandnolongeraboutlatent,passiveconsumption,butaboutdynamic,connected,andactivemarketsthat
drivecompetitionand,ultimately,success.
Giventhis,webelievebrandswillplayanincreasinglyimportantrole.Overadecadeago,TheFinancialTimes
classedbrandsastheultimatesourceofsustainable,competitiveadvantage.ThisAugust,TheEconomiststated
thatbrandedbusinessesenjoymarginsdoublethatoftheircounterparts,withgreaterlevelsofloyalty.Itsclear
thatinthisincreasinglycompetitiveworld,wellmanagedbrandsdriveprofits,soitslogicaltoexpectgreater
degreesofinnovation,sophistication,creativity,understanding,and,ofcourse,accountabilitytoaforensiclevel
ofsensitivity.
Theriseoftheconversation
Oneofthebiggestchallengesfacingthemarketingworldoverthenext10yearswillbetheincreasingimportance
oftheconversation.TheCluetrainManifesto(Levine,Locke,Searls&Weinberger,2000)definedmarketsas
conversationsbetweencompaniesandcustomersaconversationthathassinceexpandedbetweencustomers.
AtInterbrand,weseeinteractivityamongcustomersandbusinessshiftingB2BandB2CtowardB&BandB&C.
Thispresentsnewpossibilitiesforbrandbuildingviainnovation,interactiveexperiences,andcommunication
insideandout.
Theriseofsocialtrulychangescommunicationsmoredynamic,andoneononecustomerinteractionsare
becomingpossiblebycombiningbigdatawithkeydevelopmentsinartificialintelligence(AI).Thisaccelerates
thedynamicnatureofadvertisingontheWebconversationsarenowmanagedviaacombinationofAIand
humaninputs.
Butdoalltheseconversationsmeantheendofimagebuilding?Recently,ahighprofiletechCMOaskedmeifwe
neededbrandpositioninginaworldwhereopinionshiftedfromminutetominute.Myanswerpointedtothe
importanceofcontext.Everymessagefromabrandisviewedinthecontextofthatbrand:itsmarketposition,
personality,values,competitivestance,etc.Inotherwords,itshapesthewayweinterpretthemessage,andina
worldwhereourcommunicationwithbrandsisincreasingexponentially,aclearlydefinedbrandbecomeseven
moreimportant.

https://web.archive.org/web/20140709071852/http://www.interbrand.com/en/bestglobalbrands/2012/articlesandinterviews/thefutureofbrandbuilding.aspx 1/3

11/4/2016

InterbrandBestGlobalBrands2012TheFutureofBrandBuilding

Choiceischanging
RecentpaperspublishedbyMcKinseyintheHarvardBusinessReview,andbyInterbrandinFastCompany,
illustratethatthetwokeydriversofbrandvalue,choice(roleofbrand)andloyalty(brandstrength),areboth
significantlyaffectedbythepostdigitalworld.Purchasedecisionsarebecomingmorefluid,betterinformed,and
dynamic.Thereisalwayssomeoneastepaheadofyou,andeasyaccesstootheruserexperiencesandlongterm
opinionsaffectstheassumptionsofloyalty.Bothofthesetrendsprovidesignificantopportunitiesformarketers,
andbrandexperienceholdsthekeytomaximizingtheopportunities.
Holisticthenewmantra
Webelievethatgreatbrandsarebusinessstrategybroughttolifedeliveringaseamlessexperienceacross
productandservice,physicalspacesandplaces,internalcultureandcommunications.CompanieslikeApplehave
alreadysetcustomerexpectationsanditdoesntmatterifyouareabank,abusinessconsultancy,aretailer,ora
hotelchain,themessageissimple:Joinup!
Whilstthesolutionmayseemsimple,sadly,thebarriersfrequentlycomefromwithin:silomentalitiesand
politics.Theopportunityistodeliverseamlessexperiencesacrossthesilos,combinedwithcreativecurationto
ensurehighqualityandinnovativeexpression.Theroleofdigitalexperienceswithinthisholisticworldcannotbe
underestimated,anditseemsclearthatthepotentialofdigitaltoaugment,extend,andcreatewholenew
interactionswillcontinuetoshapecompanies.
Theprimaryrolefordigitalistoactastheglue,bothjoiningtogetherthemanyfragmentedelementsofan
experiencechain,andprovidingabasisforongoingcommunicationsandinteractionswithcustomers.Despite
thefactthatdigitalshouldbecomecentraltobuildingrelationshipswithcustomers,manybusinessesstilltreatit
asapromotionalorideageneratingtool,ratherthanameanstoenhance,augmentorcreatenewwaystointeract.
Digitalpermission
SethGodinpioneeredPermissionMarketing,ashorthandforunderstandingtheboundariesforbrandsina
worldwherecustomersareincontrol.Webelievethenextstepalongthiscurvewillbethenotionofdigital
permission:thegrantingofrightsbycustomerswithinthedigitalworld.
Remarkably,Levissawthiscomingafull13yearsago.Theycreatedafittingprocessinvolvingalaserbodyscan
tocreatepersonalizedjeans.Thecoreidea,howevergimmickytheexecution,wasgroundbreaking:thatonecould
haveatrulydigitalself.Mydigitalme:aperfectscanofmyphysicalbeingfusedwithattitudes,purchasing
behavior,likes,dislikes,interests,evenconnectedtomyeverexpandingsocialnetwork.
Theseaggregatedimages(madepossiblebybigdata,superfastnetworksandartificialintelligence)couldcreatea
wholenewworldofmarketingforustoexplore,wheremydigitalmewouldbrowseforme,bringthingsformeto
see,exploresocialopportunities,andsavemefromeverhavingtogoandbuysocksagain.
Thismaywellstillbealeap,butthecost/benefitsareworthconsidering.Consumertrendspointtogreater
relianceontheWeb,andweallhavebusylivesnowadays!Whynotdelegatealittle(oralot)toadigitalself?The
technologyisalreadyinexistenceandthepossibilitiesformarketingareendless.
Certainlyalloftheabovetrendsandconjecturespointtoincredibleopportunitiesforthosebuildingbrands,
throughcommunicationsorotherwise.Theyalsoposesignificantthreats:canbrandownerschangetheir
structuresandbehaviortowardsfaster,flexible,moreholisticwaysofworking,reducingsilosandincreasing
innovation?Canagenciesandconsultanciesadapttheirskillstopersonalized,dynamicdemandmanagement,with
aheavyemphasisondigital,crowdsourcing,andcreativecuration?
Onethingiscertain:withinthiscomplexworld,thefocusprovidedbyawelldefinedandexecutedbrandwill
becomeevermoreimportantasinternal/externalbeaconsofdirection,purpose,valuecreations,andexperience.
https://web.archive.org/web/20140709071852/http://www.interbrand.com/en/bestglobalbrands/2012/articlesandinterviews/thefutureofbrandbuilding.aspx 2/3

11/4/2016

InterbrandBestGlobalBrands2012TheFutureofBrandBuilding

https://web.archive.org/web/20140709071852/http://www.interbrand.com/en/bestglobalbrands/2012/articlesandinterviews/thefutureofbrandbuilding.aspx 3/3