I'm Tony Fannin. I'm president of BE Branded, a branding and advertising agency that helps companies Be Somebody. At our core, we believe in being smart. This is seen in our marketing strategies to how we develop our creative approaches. The ultimate goal is to create emotional connections that bind your customers to your company, your products, your services. This results in ROI as well as building brand equity that results in loyalty.

My background includes tenures at a large national advertising agency, as well as Creative Director positions at several marketing agencies in the Midwest.

My goal for this blog is to provide insights that I've gained over the last 24 years of serving clients and their customers, and to provoke discussion about different viewpoints on how to market in this fragmented media environment. Because this is as much art as it is science, there is plenty of room for dialog and learning.

By Tony Fannin, President, BeBranded.net

The big question in every marketer’s mind, how much should I spend on marketing? Then, other questions follow; What do I spend on? How much do I spend for each? How do I know what is working? Whether you are a large corporation or a small business, these questions must and need to be asked. But how do you come up with a valid number? You can depend on past spending habits, such as some large corporations do. You can set a number you can afford as is common with small businesses. Or you can approach the question a third way. Another way to set your marketing budget is to view it in two main parts.

How fast do you want to get there?

First, instead of just picking a number you can afford or depending on what you spent last year, your marketing budget should be dictated by your end-of-year goals. There is no text book formula that will work because each business is different. Each industry category is different. And each individual business or corporation’s goals are different. Your market category could be very competitive with many players in your sector or you could be facing only a few “goliaths.” Your budget size should be in balance with how much you want to achieve over the next year and in the long-term, each year’s budget should be in balance to what you want to achieve in the next 3 – 5 years. An aggressive business plan that requires you to meet a high financial goal or an awareness goal can only be accomplished with an equally aggressive marketing plan. Any cut backs in marketing spending, over time, you will see less ROI in your bottom line. For example, GEICO increased their spending by 75% over 4-years. This was twice as much as their competitors. By 2006, GEICO saw the returns they were planning on. According to J.D. Powers & Associates, GEICO stood far above the rest in new-customer acquisition. Even though they are the No. 4 player in the market, they ranked No. 1 in new-customer acquisition. They also topped the brand awareness ladder over their larger competitors.

Some depend heavily on word-of-mouth. This is a tactic that works and should be considered as a part of your overall plan. Two things to keep in mind are someone else is in control of your message and brand, not you, and second, for the most part, it takes time. You have to have the luxury to wait it out until it builds and catches on. Some depend on new media, such as web casting and interactive on-line magazines, to drive their message and brand. This is also a good tactic that works and should be in your mix. The main point to consider on this is the cost of entry into that arena and the cost to keep up. To make new media a focal point of your strategy means you must be early adapters and always be searching for the next big wave before it becomes a big wave.

It’s all or nothing

The second part is an “all or nothing” approach. Don’t look at the concept of budget as to see how much to spend on each tactic, but to see it as what tactics should be FULLY funded and what tactics you should not spend a dime. Like a lot of things in life, if you do it half-way, expect to fail. If you are going to commit your limited resources, then you need to commit to it completely. This brings up a question, “How do I know what to commit to?” This should be answered by taking a hard look at what your core brand stands for. All you do and say as a company should be in alignment with what you really stand for, your true brand position. If your true brand position as a photographer is to “capture romance” then, every marketing tactic that should be FULLY funded needs to be in alignment with romance. If your brand is “self expression” as a national apparel company, the specific tactics you invest in needs to support this concept. I’m not saying to only invest in one or two tactics. You need to still develop a comprehensive marketing plan, but the specifics that go into your plan needs to be only those things that are in harmony with your brand position. And these are the tactics that need your full commitment to realize your end-of-year goals and achieve the ROI you need.

By looking at marketing spending and budget setting differently, you can realistically align expectations and investment amount with your core brand. This will help prevent wasting money with a “shot gun” approach and will further a deeper understanding with your true audience and ultimately gain their loyalty.

Consumer Generated Ads: Friend or Foe?

By Tony Fannin, President, BeBranded.net

From a marketer’s point of view, what’s not to like about consumer generated ads? You get free ideas from all over the globe. They’re submitted by the very people you want to reach. And, there’s an inevitable PR halo effect that glows over the very contest which is generating new and winning concepts. Voila: Instant ad that saves on creative and production fees.

But from an advertising agency’s viewpoint, what’s to like?

First, though the ideas come free, most don’t support the overall brand messaging or fall in line with other executions across different media platforms. Second, the chosen ad tends to only reflect one voice at the expense of other interpretations. And third, the PR push you get is likely short-lived and runs the danger of overshadowing your true marketing message.

In reality only a very few Consumer Generated Ads (CGA) have worked.

Research has shown that adults 25 and under see CGAs as less trustworthy, less socially responsible, and less friendly than professionally produced ads. Those over 25 see CGAs as friendly and creative. The 25 and under crowd also sees CGAs as the marketer’s attempt at pulling the wool over their eyes by trying to be “real” much like when your dad says he’s got the “411 on your new sled.”

Here’s one CGA that backfired recently for a major consumer brand: Chevy Tahoe. The major auto maker invited ads to be made by average consumers. On a special Web site, Chevy provided soundtracks and video for users to “mix up” and then download for general viewing. But the pitch backfired when one spot slammed the SUV as a gas guzzling drain on the environment—causing more harm than good. By the time the spot was taken down, hundreds of thousands had viewed it not only on Chevy’s site but also YouTube.com.

Before you invest in CGAs, consider these points:

Look at CGAs as a dialogue, not the answer.

Allow your customers to show, tell, and sound off what they think of your brand. It also shows you how your brand interacts in their daily lives. People want to tell you what they think. Instead of filling out a generic questionnaire or survey, they can express their emotions in a way that will convey key secrets about your brand. Your goal, and the goal of your advertising agency, is to find common threads in the “conversation” that relate to the most customers—addressing their most pressing needs and desires.

Don’t let CGAs hijack your brand.

It is an easy trap to fall into. Someone creates a unique piece that is entertaining, but is a little off your brand message. Over time, this gap widens. Conflicting messages begin to surface, and before you know it—your brand has been hijacked. Having consumers interact with your brand is one thing; having them redefine it is another. Being hijacked means you’ve lost control of your company’s message.

CGAs can be part of an overall marketing strategy.

There is a place for CGAs. Be creative in incorporating them into your marketing plan. Planning how and where you will use them will let you create a unique experience for your customers and prospects. For example, CGAs can be used at an interactive display in the mall. By surrounding the environment with your agency’s crafted messages and visuals, CGAs can work into the mix to enhance the total experience of the visitor at your display.

Consumer generated ads are new and intriguing. No one really knows how to harness this newfound tactic just yet, or tap its true potential. Experimentation will be necessary. Knowing your own brand and how it may or may not fit is important. If you can turn CGA opportunities into meaningful dialogues with consumers, you will be able to gain insights and ultimately, deliver a brand your customers want.

In today’s world, it’s all about market connection. Consider the tools at your disposal to reach people; traditional TV and newspaper ads, podcasts and mobile marketing via cell phones, street art and product placement. With all of these tools available, why are marketers still having problems separating themselves from their competitors and not getting customers to respond?

Market connection is the key. You must connect with your customers in a real way. Customers desire an emotional connection with organizations they do business with. They want the experience to transcend beyond mere transactions. That bond keeps you from being a commodity and driven down to the lowest common denominator, which is usually price. By doing this, you can make yourself meaningful and ultimately bring value to their lives. The deeper the connection, the deeper the brand loyalty.

Emotion creates intimacy and intimacy allows for deeper connection. To do this you must be responsive to what people value and desire. No one wants to be a part of something that force feeds services or products which aren’t needed. By honestly demonstrating and communicating the true essence of your brand promise, you can offer real choices that make a difference in people’s lives.

An example is our work for a small regional bank. Growth was flat for the past three years. Competition was tough and getting tougher with the national banks moving into new territory with deep pockets. We found out why their current customers did business with them, why some didn’t do business there, and why some didn’t care where they banked.

With this information, we were able to craft a brand message that expressed the core emotion of what their bank offers. Not only were marketing and all communications efforts coordinated, but the internal staff was educated and given the reasons why the brand took this direction and how they played a critical role.

Within 18 months, the bank realized an increase of more than $22 million in new assets and deposits—all without acquiring other branches. They were also honored by peers and colleagues with various banking awards.

Customers want a reason to care. They want to be inspired, and in some small way know that you understand their daily lives and how you can make it better, easier, more enjoyable. Emotional experiences are distinguishing category leaders from the increasing look-alike, seem-alike, be-alike brands. If you give customers what they really want in an emotional, experiential way, they will reward you with their loyalty and passion.

Here’s how to make that emotional connection:

• Find out what your customers really care about.
• Define a singular, emotional brand promise.
• Every touch point must be an experience that supports your promise.
• All marketing tactics must support and make sense with your brand promise (Why would the Vogue magazine, for example, buy a sponsorship at the X Games?)
• Establish a method to translate and measure the consumer emotional insights into tangible and intangible value to your business.

Businesses blame customers for not being loyal, but very few have given them a reason to be loyal. In Scott McKain’s book, “What Customers Really Want,” he describes the elements of the customer experience:

• Superior information – This is just flat out knowing more about your customers than your competitors. You know which specific customers have what individual preferences, desires, and needs.
• Systematic empathy – The ability to identify with and understand another person’s feeling or difficulties. There should be a system in place to respond to customer needs and create a positive experience for them when all is said and done.
• Obsession for the sensation – You need to prove to customers that you care more for them than their money. Turn your business into one big “customer experience”. Create a feeling of passion and excitement for your customers. This will create passion and excitement in your customers for you.

By creating market connections built on meeting emotional needs, you can create a business that will turn customer passivity into passion.