Branding Advantages: Credit Suisse Links Brand To Market Performance

Credit Suisse Research Institute, which identifies and provides insights on global themes and trends for Credit Suisse AG, released an in-depth analysis of how a company's brand can be one of the few true competitive advantages remaining in modern industry. The study focuses on industry and company conditions that are vital for brand success as well as a model for brand lifecycle that suggests key entry and exit points for investors.

"We believe a strong brand is one of the most powerful and sustainable advantages a company can have, but one that is often ignored by the financial markets," said Omar Saad, director at Credit Suisse. "We believe brand stocks will continue to outperform the market, and our proprietary framework analyzes brand lifecycles to determine how and when to invest in brands for optimal returns."

Key Findings From "Great Brands of Tomorrow."

• Stronger brands consistently generate out-sized long-term growth and returns for shareholders.

Companies that invest at least two percent of sales revenue on marketing outperform the S&P 500 by more than four percent annually. The top one-fifth of strongly branded companies outperform the market by 17 percent.

• Some industries are more brand friendly than others.

The study demonstrates that brand power is strongest in industries that have the closest proximity to the customer. This suggests that even B2B companies benefit from some direct-to-public communication. The study also demonstrates that reputation is one of the most important roles in customer purchasing decisions.

• Most brands follow a sustained arc with five distinct stages.

These stages include: emerge, hit the wall, transform/proliferate, dominate, and reinvent. For investors, this means spotting companies that transform from a niche player into a powerful brand that can be proliferated across new markets and categories.

• Tough financial times are often the most opportunistic backdrops for great brand companies.

As weaker competitors scale back and new entrants delay riskier plans, strongly branded companies emerge out of a weakened economy and outperform the market by as much as 18 percent within the first six quarters of recovery. According to Credit Suisse Research Institute, brand stocks are already beginning to outperform their markets by seven percent since March 2009.

In addition to its report, which identifies brands and their relationship to the market, Credit Suisse released a list of 27 brands that it believes will outperform based on their brand advantage. They include: Alibaba.com, Almarai, Amazon, Apple, BIM, Capitec, China Merchants Bank, Commercial Aircraft Corporation of China, Enfamil, Facebook, Hyundai Motor, Indian Hotels, Julius Baer, Li Ning, Mahindra & Mahindra, MercadoLibre, Mercedes-Benz, Polo Ralph Lauren, Sonova Holding, Swatch, Tiffany & Co., Tingyi, Trader Joe's, Tsingtao Brewery, Under Armour, Uniglo, and Yakult Honsha.

Going For Gold: How To Win With Social Media

Social media experts, social network managers, and bloggers could learn something from the 2010 Winter Olympics in Vancouver. There are 2,636 athletes from 76 countries competing in 15 sports, which have additional variations in form and technique. All of these athletes are different.

Each and everyone of them has a different attitude, approach, skill, technique, style, and degree of teamwork. And yet, they share a common bond in that they all represent the best of the best in winter sports. So does social media.

Every time I read a well-meant post about how social media should be approached, I cringe a little bit. Should doesn't really have a place in communication, let alone social media. In an environment where more than 69 million people might define social media as playing Farmville, who's to say what should or should not be done? Either it works or it doesn't.

Sure, there was significant back and forth when Forrester Research reset its analyst blogging policy. You can find one of the most comprehensive and thoughtful summations offered by Shel Holtz. However, while his conclusion may or may not line up with what works for Forrester Research (it's too soon to tell), his conclusion certainly doesn't work for social media. Here's why...

How To Win Online Like An Olympian.

Know Your Sport.

Can you imagine what might happen if figure skaters approached pairs like ice hockey? I doubt Shen Xue and Zhao Hongbo of China would not have taken home the gold in figure skating pairs for a body check. I also doubt that Jarome Iginla of Canada dreams of a reverse rotational lift with Alex Ovechkin from Russia.

Social media is much like that. Different niches develop their own sense of the sport. Foodie bloggers and mommy bloggers are different from business bloggers and communication bloggers (though some blend the elements). Even in communication, there are variations. Advertising, public relations, marketing, social media, and communication education all approach social media differently (and the best of them tend to manage client social media efforts differently too).

Know Your Game.

Not everyone believed that Evan Lysacek from the United States could win gold without the all-important quadruple jump. He did. Lysacek edged out Yevgeni Plushenko from Russia with an overall routine featuring better jumps, spins, and footwork. Meanwhile, Daisuke Takahashi from Japan employed a much more playful style to win bronze.

Social media is much like that. Long format or short format, lists or no lists, personal or formal, pictures or no pictures, comments or no comments, video or no video — all of it is as diversified as various sports. What really matters is that any individual blog or online community excel at whatever sport it might be similar to.

Know Your Team.

In the Olympics, not every team is the same. It takes a different kind of team to be part of a four-man blobsled than it does to play hockey. Scott Moir and Tessa Virtue had to consider each other's strengths to win gold in figure skating pairs. Shaun White didn't have any partner limitations in landing a gravity-defying double McTwist 1260 in snowboarding.

Social media is much like that. One of the things that Forrester Research did was reconsider how it views the team. Holtz doesn't have any such limitation. He is an all star, even when he plays for a team. Seth Godin has a different style too, one that is much more independent and isolated. Yet, it works for the people who read his books and blog.

Know What Matters.

Apolo Anton Ohno is one of the most popular Olympians on Twitter, with almost six times the followers of Lysacek. Does that mean Lysacek might consider giving up his gold medal figure skating success in favor of the short track? Does it mean he is less of an Olympian?

That would be silly to think so. And yet, it's not so silly to some people in social media who adopt a prevailing thought among communication bloggers. Some are torn between being more conversational or controversial because their colleagues seem more popular. The truth is that their comparison neglects that they might be in a different sport with a different style and a different team approach.

When bloggers align themselves with what the most popular people are doing based on perceived success, they've lost. In most cases, with some exceptions, the most popular reach a perceived success by knowing what sport, game, and team approach they want to take. And then, they play it perfectly.

Sure, some copycats can duplicate what those who came before them did. (It's very simple to do in social media circles, if all you care about is numbers.) But they will never quite measure up with compelling ideas because they are trying to be something they are not. So, popularity aside, maybe people ought to do what works for them or their organizations.

After all, the best sky jumpers don't dream of being figure skaters, they set their sights on being the best jumpers that they can be. How about you? Do you feel a disconnect with the sport you chose because it's less popular, flashy, or self-reliant? Don't be. Just be the best you can be. Or, if you're working in social media for an organization, make it the best it can be.

This is how I've come to view the Forrester Research policy change and the conversation that lingers on. Forrester Research is trying to be the best it can be.

And when you look at the Forrester Research case without the emotive buzz of taking something away from all-star analysts, then you realize Forrester didn't change sports. What it changed was the team approach and style of play.

Instead of picking star players from NHL teams, Forrester wants to play like the Herb Brooks' 1980 Miracle team. Does it matter? It doesn't matter if they continue to score shots for their clients. Conversely, it might matter if individual players feel less empowered to take opportunity shots that still score for the team. Time will tell.

Sharing Happiness: Coca-Cola

By now, you may have heard about the viral video, Coca-Cola "Happiness Machine," on YouTube that generated 1.5 million views in about a month. Some pros keep asking me how they hit 1.5 million views, but they're asking the wrong question.

Even reading the write up by Christine Kent doesn't tell the full story. Atlanta-based interactive agency Definition 6 shares its tactical and technical goals, and reveals that neither Definition 6 nor Coca-Cola pushed the production with a publicity campaign (an all-too-tempting component of anxious agencies and clients). They let their considerable fan base find the video and share it on their own.


Coca-Cola's "Happiness Machine" Celebrates The Brand Relationship.

The video works. It doesn't focus exclusively on the product (it even shares non-Coke products). It doesn't center on customers or demographic examples (as many social media proponents claim). Instead, it focuses on the relationship between the product and the customers, and what happens when the two come together, underscored by the social aspects — sharing Coke — between friends in a setting where spontaneity is a welcome distraction.

Two weeks ago, I shared a presentation that discusses the elements of great writing, with an emphasis on how communication needs to be accurate, clear, concise, human, and conspicuous. The Coca-Cola video hits all of these elements, effortlessly, without the need for a script beyond the concept. It also captures many of the elements that make up news — stories that people need to share.

Sure, not every company packs the power of the Coca-Cola brand nor is every brand relationship a celebration. But that is part of crafting the right message for the right audience. You have to consider every strength that can be conveyed within the context of a single memorable message.

Running two minutes in length, the Coca-Cola video does something else too. It demonstrates that advertising can easily adapt to an online environment. It might require thinking different, but that is part of the profession. Virtually every wildly successful advertisement in history broke more conventions than they followed. And that's not by accident.

Revealing Research: The Future of the Internet IV

The Pew Internet & American Life Project released its fourth Internet expert study on Friday. The Future of the Internet IV compiles survey responses from almost 900 prominent scientists, business leaders, consultants, writers, and technology developers around five key Internet related topics.

The five topics included (paraphrased): the value of online content, the impact on the written language, the extent to which innovation can be predicted, the freedom of access and information, and the protection of privacy.

Dominant Themes of Discussion For The Next Decade

The value of online information.
• 76 percent believe more information leads to smarter people who make better choices.
• 21 percent believe the Internet could be lowering the IQs of the people who use it.

The discussion, spurred by Nicholas Carr, is underpinned by the thought that people are moving away from a meditative or contemplative intelligence and toward a utilitarian intelligence. (The price of zipping among lots of bits of information is a loss of depth in our thinking, he says.) There is some truth to the argument, with content being distilled into little nuggets of easily accessed information (sometimes incorrect information). Many arguments against the idea suggest the Internet will change cognitive capacities so people won’t have to remember as much, but will have to have better critical thinking and analytical skills.

It seems that any real direction has yet to be set. With the emphasis on short popular content, the depth and accuracy of information has diminished. However, this seems to be a short-term problem as objective human editors may eventually have a role in vetting information on the net much like yellow journalism gave rise to objective journalism around the 1920s. Of course, Gordon Lightfoot might have a different view.

*Amazingly, many newspaper headlines have actually sold this portion of the study as evidence that the Internet makes us smarter, which makes us wonder if anyone read it.

The Internet enhances reading, writing, and knowledge.
• 65 percent believe the Internet has enhanced reading, writing, and the rendering of knowledge.
• 32 percent believe the Internet has endangered reading, writing, and intelligent rendering of knowledge.

Almost all of the survey respondents seem to agree that the written language is suffering as a result of online communication. However, how the two sides frame the outcome is where they part company. Some suggest language is shifting to be more visual and/or simply different with communication becoming more fluid (but not necessarily better written).

Without question, the acceleration of communication, quantity of communication, and format of communication tend to have consequences. The quality of the communication is often diminished. However, long-time content creators consistently suggest that their writing has improved as a result. It could be that the Internet has simply invited more people who would otherwise not write to write more often, which means the abuse of the language is short term or format related. Time will tell.

The hottest gadgets of the next decade are already evident today.
• 17 percent believe that the applications of tomorrow will not take people by surprise.
• 80 percent believe that the applications of tomorrow cannot be anticipated today.

With rare exception, almost everyone agrees that predicting future technologies beyond broad conceptual thinking is futile. Nobody can accurately guess what the breakout applications and gadgets will be by the year 2020. Only a handful believe that trend spotting provides an accurate glimpse of the future.

Given the advancements over the last 20 years, it seems likely that innovation will follow two paths. There are innovators who enhance existing models, making them more efficient. And then there are innovators who create disruptive leaps forward that undo those enhancements. For example, Photoshop recently celebrated its 20th anniversary. Few predicted the explosive growth of Facebook.

The Internet will be dominated by an end-to-end principle.
• 61 percent believe there will be minimal restrictions over online access and information.
• 33 percent believe there will intermediary institutions that control significant amounts of content.

While most believe that public pressure will keep the Internet mostly free, the public will only succeed if they remain vigilant in guarding against government and network takeovers. Pessimistic views point to China and even the United States. In the U.S., the net neutrality debate has only temporarily restrained cable and telcos from exerting centralized control.

With the exception of government intervention (which varies by country), scalability and scarcity will likely be the deciding factors of whether the Internet remains free as people see it today. Mass content creators, not distributors, will likely be those who determine to what extent information and content remain accessible. With more publications attempting to return to subscriber-based content, this stands to be the more viable threat to limiting communication.

The future of online anonymity will evaporate.
• 41 percent believe there will be tighter, more formal controls over the Internet, including scanning devices.
• 55 percent believe it will be relatively easy to remain anonymous without public disclosure.

There is greater and increasing pressure for authentication online. Ironically, proponents of an authenticated world do not always appreciate the severity of privacy abuses nor how such a move hinders concepts such as freedom of speech. The minor majority believes the Internet is well past a need for authentication.

The reality is that online privacy is collapsing under the weight of uncoordinated, unrelated, and unlikely allies. There is pressure from communicators who chastise anonymity, pressure from governments and businesses to investigate dissent, and a general willingness of the public to surrender privacy for the smallest of carrots. The question is not whether online privacy will no longer exist, but when and to what extent.

The full study, The Future of the Internet IV, can be found at the Pew Internet & American Life Project. The project is supported by the Pew Research Center, which is a nonpartisan "fact tank" that provides information on the issues, attitudes and trends shaping America and the world.

Changing Constants: Fresh Content

Communication is in a constant state of change. The tools are different. The news is different. How we find out about something is different. Even approaching blog content is different than it was a few years ago, given the impact of social networks.

But with all that is different, some things are even more different than we imagine and other things are surprisingly the same. The challenge for communicators is to give up on one thing they've relied on for the better part of 20 years. Assumptions.

Best Fresh Content In Review, Week of February 8

• The Future Journalist: Thoughts from Two Generations.
Sree Sreenivasan, professor and dean of student affairs at Columbia Journalism School, paints a picture of what new skill sets young journalists need to develop in order to keep up with the evolution of online media. At the same time, Sreenivasan underscores that fundamental skill sets are still critical in a changing profession: great reporting, great writing, ethics, specialization, investigation, and news judgement.

• Cleveland Cavaliers “Watergate” May Be Dumbest Business/PR Move Ever.
Sometimes people say that having fewer journalists to vet information is a good thing. I don't agree. Left to their own devices, organizations are sometimes tempted to present revenue generating schemes into a public service story much like the Cavaliers did when they shut off water fountains. Bill Sledzik rightly calls it like he sees it.

• 2010 MarketingSherpa Social Media Marketing Guide.
By combining several studies, Brian Solis offers up a comprehensive snapshot of the world through the lens of the Internet. Within each country profiles, there are dramatic and subtle differences in how social media is employed by different countries and cultures. For example, the United States is much more passive about content creation on blogs than China. Expect all of it to change again.

• Stop Adding Value.
Valeria Maltoni reveals that the buzz of adding value is only one part of the social media equation. When all content creators attempt to out value each other, nobody wins. To build a platform (or community), communicators need to consider how they can help other people's ideas, especially customers, shine as much as their own.

• The Albert Einstein Guide to Social Media
Considering how great communicators of the past might approach social media has been a fun and worthwhile mechanism for many writers, bloggers, and journalists. Amber Naslund chose the right one by applying the finer points of Albert Einstein to social media. As a scientist, he was consistent in presenting his ideas in a clear, concise, accurate manner. As a human being, he married intellect with wisdom. Amazingly, wisdom remains constant.

Writing For Public Relations: What Makes News

I never learned how to pitch a story like a public relations professional. I learned the hard way, sending query letters to editors in the hope of an assignment.

Sometimes the letter was more important than a contract. Without one, it was harder to secure interviews. And even with one, you knew the story had to be good. Stories written on speculation were only bought if they were really good or great. If they weren't bought, you would have to rework the story and try to peddle it elsewhere. If they were great, editors were very open for more.

When I was asked to write my first news release, it never occurred to me to write one much differently than a news or feature story (with the exception of following an inverted pyramid lead for those familiar with the term). Writing format aside, I always believed that if editors paid writers for news stories then there was a chance they would accept some for free.

Writing For Public Relations: What Makes News

View more presentations from Rich Becker, Copywrite, Ink..

The above deck is one of the teaching tools I'm using this year for Writing For Public Relations at the University of Nevada, Las Vegas. The intent is to teach students how to find news within their organizations rather than resort to pitching into the wind. Enjoy.