Forrester is a leader in technology research. They got that way by providing hard data and objective analysis to business leaders for over two decades. As I’ve written about before, brands are built on trust and, for the most part, Forrester has earned it.
That’s why I was so disheartened when I saw a Forrester report made available on LinkedIn a while back. What I found was a noxious blend of shoddy methodology and inane conclusions that were reminiscent of the Arthur Anderson – Enron debacle.
As many people know, and as James Surowiecki chronicled in his famous book, The Wisdom of Crowds, large numbers of ordinary people can often outperform experts. Lately, though, the idea has mushroomed into excessive enthusiasm for crowds.
Terms like open source and crowdsourcing have entered the lexicon and formed fanatically engaged advocates. There have also been impressive successes, like the Firefox internet browser the Apache web server project. However, much like people, crowds can be foolish as well as wise.
Ad agency services are procured as if they were a commodity. Is there any way out?
Unlike other professional services, ad agencies are constantly under price pressure. Consequently, shrinking margins have led to intense consolidation. The industry today is dominated by a handful of vast holding companies that offer every service imaginable, yet still struggle with profitability.
In a hypercompetitive, globalized world, a strong brand is essential for profitability. If you want your business to enjoy premium pricing, lower customer acquisition costs and big fat margins, brand equity is the best (legal) way to do it.
Building a powerful brand isn’t easy by a long shot, but there are some key principles that can guide you on your way.
Do you see digital technology as an opportunity or a threat?
Digital technology can be both a blessing and a curse. While the new possibilities are fantastic and great efficiencies can be gained, organizations often need to be restructured in order to take advantage of them.
Finding the right digital structure can be confusing. The key is to understand what role new technology is to play in your business. Sometimes we use digital technology to make us more efficient and sometimes we use it to create value. It’s very hard to do both.
Are you talking to the right person?
Business development people often try to improve their sales prospects by approaching the “decision maker.” Usually this means “going straight to the top” and speaking directly to the “man in charge.” Why waste time with underlings and formalities?
In reality, this is rarely successful and usually does more harm than good. Not only is the so called “decision maker” unlikely to be sold, a clumsy approach is very likely to poison the well and decrease the likelihood of an eventual sale.
Why are the Mad Men so mad?
The marketing world is changing as never before. The backslapping, clubby culture of Madison Ave. is being transformed in a world of bytes, databases and algorithms that is increasingly ruled by geeks rather than suits.
The old order is gone but the new order has yet to arrive. The fate of marketing services companies is still an open question.
What’s the difference between a great brand and a silly slogan?
A powerful brand is incredibly valuable. Interbrand estimates that a successful brand can be worth tens of billions of dollars. That’s far too much money to be attributed to nice words or cool colors. What makes a brand valuable is the promises it makes and keeps.
Here are some examples of great brands that win through making and keeping their promises.
In response to my article about the Apple iPad on Sunday, a reader posted this fantastic list of predictions on LinkedIn. Although, he prefers to remain anonymous, he agreed to let me post it here.
Here’s the list. I hope you enjoy it as much as I did.
Everybody wants value for money. Accountability is a crucial element of any business relationship. Shouldn’t there be a simple formula to evaluate return on marketing investment?
Unfortunately, there isn’t one and there never will be. Running a business requires judgment, skill and experience. Any simple rule of thumb is bound to be either so narrow that it misses the big picture or so general that it’s meaningless.
That doesn’t stop people from trying though, which is why we’re inundated with ROI myths. Here are four of the most damaging:
