Monozukuri for Sustainable Brands in the 21st Century

The word Monozukuri has only been in use for almost 15 years. In 1998, the Japanese Prime Minister’s Office set up a "Monozukuri Kondankai", in order to reverse the trend of deindustrialization and hollowing out that Japan was experiencing after the end of the Japanese financial bubble by affirming Japan’s strengths in manufacturing. In general, monozukuri  is the "art, science and craft of making things." While monozukuri is used to describe technology and processes integrating sustainable development, production and procurement, it also includes intangible qualities such as unique craftsmanship and dedication to continuous improvement. In the Japanese tradition of Monozukuri, when an item or human effort is taken into use, there needs to be a benefit for the society as a result while, at the same time, the balance between production, resources and the society should be maintained. Monozukuri should therefore be an inspiration for most global organizations in the 21st century in their effort to create strong, innovative brands, which deliver compelling content through their media channels, especially then it comes to branding and brand storytelling.

Toyota and Nissan lead the way

Companies such as Toyota and Nissan have already tried to elevate their brands or the company’s core interests by creating unique content that exceeds infomercial-like self reverence.

Back in 2011, Toyota chairman Fujio Cho said that Toyota’s mission is to “preserve the Japanese Monozukuri". What does "monozukuri" mean here? It probably captures the Toyota perception of sustainability. According to Toyota monokuzuri, the person doing the making is de-emphasized and the attention is on the ‘thing’ being made. This subtle difference reflects the Japanese sense of responsibility for using ‘things’ in production and their deep respect for the world around them both animate and inanimate. In its application of Monozukuri to the production of automobiles, Toyota has pursued a sustainable method of making its cars ever more safe, environmentally friendly, reliable and comfortable and circulating this perception to its customers.

At Nissan, brand storytelling has been dubbed “kotozukuri,” complementing the Japanese manufacturers’ mantra of “monozukuri”. Brand agnostic stories, intentionally omitting reference to the parent firm or its competitors, or in Nissan’s case, look to raise the profile of the people, products, technologies and relationships as part of infotainment. 

 

Why? Actually, it's about Nissan's recognition that traditional media and consumer engagement face more challenges as well as expense amid a growing range of choice. Meanwhile, internal communications, often constituting corporate media or house TV units until now, have expanded from a parochial approach to include more content for mass distribution. The relationship with broadcasters and print media, who often have their own on-line presence, has evolved to include video embeds, undeniably showing return on investment versus the cost of similar paid media exposure. Use by the blogosphere or consumers also has powered the metrics of successful marketing, as “shares” and “likes” offer potential for viral exposure.

It seems that every organization may perceive Monozukuri in a different way. However, "Many names now describe the trend such as brand journalism, corporate narrative or 21st Century Kotozukuri, but all require more sophisticated storytelling and delivery, making ties to traditional agencies"  (Dan Sloan, Nissan Global Media Chief).

Back to storytelling

Storytelling is a well known and ancient art form. Persona-focused storytelling is essential to branding. When it comes to creating a powerful brand narrative, the persona – the articulated form of the brand’s character and personality – comes first, and all other elements unfold from there. A compelling brand starts with a strong, well-drawn, and quickly recognized persona, the essential connection between what a company says and what it does.

This brand persona creates a long-lasting emotional bond with the audience because it is instantly recognizable and memorable, it is something that people can relate to, and it is consistent. Nike, McDonald’s, FedEx are all examples of brands with personas that fit these criteria. In each case, there is a clear personality associated with the brand. These companies understand that it is their clear articulation of their brand persona and their discipline in placing that persona into stories that work with and help strengthen that brand persona is what makes the difference between strong and weak brand associations.

That long-lasting and implicit trust is what distinguishes the great brands from the rest of the pack. It will also protect the brand when it makes a misstep. Nike has a strong brand persona that is all about performance and winning. Their long-used tagline, ‘‘Just do it,’’ is instantly recognizable as is their logo, the swoosh. In 2006, Nike teamed up with skier Bode Miller, which seemed like a good idea at the time. After all, he had won two silver medals at the Olympics in 2002, four gold medals and a silver medal at the World Championship in 2003, and in 2005, he became the first American in 22 years to win the World Cup title. His performance trajectory was clear. If anything, it seemed that the difficulty would be in finding words to match his expected performance.

There was no shortage of words: in TV spots for the 2006 Winter Olympics, Miller was shown talking about performance, talking about his attitude, and talking some more. But there was not much ‘‘doing’’ – he fell short in all five medal attempts. Worse, he did not even seem concerned with winning, an attitude that did not match well with the Nike brand persona. This created a disconnect between the audience and the brand, since the fit between Bode and Nike clearly was not right. Monozukuri here, as a unique value proposition for the consumer, through storytelling, went wrong.

Brand my brain

Brain studies have shown dramatic effects of branding. In one famous study, researchers used functional magnetic resonance imaging (fMRI) to see how subjects’ brains responded when they were given Coke or Pepsi. Some of the subjects were given the soda without knowing which brand it was, and were asked to give their preference on taste alone. Others were given the soda and then an image of Coke or Pepsi was flashed at them before they took a sip.

The result? The blinded tasting resulted in no preference for one brand over the other in the group, some preferred Pepsi, others preferred Coke, but they did not know which was which, so the overall results were what you would expect in two chemically and physically similar drinks. The unblinded tasting was something else altogether. While there was no influence of brand knowledge for people who thought they were drinking Pepsi, there was a very strong brand influence when they were shown an image of Coke. Their belief that they were drinking Coke actually altered their experience to the point where some areas of the brain lit up only when they believed it was a Coke that they were drinking. Clearly, branding is a real, measurable effect. Coke lit up the hippocampus and the dorsolateral prefrontal cortex, areas of the brain related to memory, control of action, and self-image. Our brains love Coke even more than our taste buds do.

How is it connected to storytelling? Actually, a lot of it has to do with the fact that Coke has been telling a good story, using an exciting yet accessible brand persona that people easily relate to. Storytelling has been engaging listeners and readers for ages and Coke figured out how to make that work to their advantage. Researchers have shown that successful storytelling (as a correct Monozukuri version) strengthens the connections consumers have to brands to a great extent.

Conclusion

When it comes to brand development, a unique perception of Monozukuri for each organization may lead our audience in the brand story and its actions. Marketing strategists should always perceive and apply Monozukuri in the optimum way to genuinely connect with the audience and ultimately convert them into loyal customers.

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Smart Brands - Economic Depressions 1-0

An economic depression affects everyone. During the Panic of 1857, the Post World-War I Crisis, the Wall Street Crash of 1929, the Great Recession of 2008-2009 or even the "Greek Crisis", the basic mechanisms of consumer attitudes were similar. Both the value perceived by consumers and shareholder value were heavily influenced by brand. Brand can drive growth in an up market or protect the company’s value in a down market. But, what really happens we enter a recession phase and what are the impacts? Actually:

• Investors become very risk-averse. They are quick to criticize companies’ performance, resulting in decreasing share prices.

• The labor market is easily depressed causing employees to regard the organizations they work for with a more critical eye.

• Falling consumer confidence leads to heralding either lower prices or sales, but in either case falling profits.

Just steal

Brand development reaches far beyond traditional forms of consumer advertising. However, most still confuse the discipline of branding with ad communications. This interpretation ignores that:

• Brands are strategic assets rather than purely symbolic tools.

• Effective branding is a matter of profit, not just market share.

• Competitive advantage branding is a matter of sustainable investment rather than cost.

During a recession, brands that focus on value, rather than price, can reassure consumers with greater confidence. The moral support that is provided by brands during a recession helps to rebuild that enduring bond between brand and former consumer. As consumers begin evaluating their purchases on a different set of priorities, heritage brands can use the emotional connections that already exist to regain past consumers that have moved on to “higher end” brands. A recession can unlock the relevance trapped within the brands of people’s youth.

The necessity for a clear brand proposition is more important than ever as consumers recognize the need for new ways to work within their shrinking budgets. The companies who recognize and seize the opportunity to steal market share while others are in shutdown mode, will find the benefits far outweigh the costs.

The Buy Down Effect

A comScore survey revealed that one in five shoppers converted to less expensive, generally private label brands to save money. The figures below show the change by market segment after the end of the Great Recession of 2008-2009. Housewares realized no net shift for buying less expensive brands, but a prominent 6 point gain in buying other brands on sale. It is possible that in the case of durables consumers are more hesitant to try a cheaper brand but are still looking to save money by buying premium brands when they are on sale.

comScore, SymphonyIRI

Losing money to other brands? Invest in your brand. Decisions should be focused on spending wisely, but too often companies do nothing at all. A company’s typical reaction to a slowing economy is to cut back and wait things out. Ironically, those companies end up damaging their most valuable assets—their brands. Actually, research concerning economic depressions reveals some interesting findings:

• 1.5 point increase in market share among businesses increasing ad spending during recessionary periods (Cahners)

• 2.5 times increase in market share vs average of all businesses in post-recession period for those who aggressively increased media expenditures during last recession (CARR Report)

• 256 percent relative sales growth for businesses which maintained or increased media spend over those who did not (McGraw-Hill research analysis)

In times of recession it is better to tighten the belt and cut marketing and branding expenditures. However, when companies cut their outreach, they also begin to cut the ties that bond consumers to those brands. For smart companies, opportunity beckons. As we see competitors cutting back, we must now recognize that is the time to strike. If funds are too tight to make an all-out attack,we should just cut less than the competitors. Remember, in a recession both our marketing money and our message go further.

Consumers and Cost Control

Recessions usually trap brands between low priced competition and rising raw material costs.  Faced with narrowing margins, such brands may consider raising their unit prices, reducing the quantity or size of the product, or reducing the quality of the ingredients used.  Consumers-respondents in the aforementioned survey by comScore were asked to choose between these three options.  Specifically, they were asked, "Which action would you most want your preferred brand within each category to take, if it had to take a cost controlling action?"

Consumers prefer, if necessary

Consumers  indicate a preference for quantity reduction vs the other stated alternatives.  However, this strategy is not without risk. One additional question in the survey explored the reported effect that this downsizing of products had on consumers‘ buying behavior.  Four out of five respondents indicated they had noticed product downsizing in the categories they regularly shop. Perhaps more concerning, more than half of the respondents reported occasionally changing their behavior.  Thus, while consumers claim to prefer product downsizing, it does appear to have at least an occasional effect on brand choice for many shoppers and should be approached with caution.

Conclusion

Finally, brands can win economic depressions by successfully differentiating their product versus lower priced competitors in order to maintain preference and reduce price sensitivity of consumers. Decades of research on advertising have demonstrated that the use of brand differentiating messages is highly effective at increasing preference for the brand. Therefore, to optimize the impact of continued marketing support during hard economic times, advertisers need to make sure their efforts are effective at differentiating the brand from the competition. Yes, i know, Porter is always right!

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5+1 mistakes B2B marketers should avoid

1. TARGETING THE WRONG LEADS

Many marketing campaigns are simply targeted at the wrong people. Completely understandable, given that the companies we are marketing into may have a hundred thousand employees or more. Being a "data junkie” is the key here – make sure you’re obsessed by the data the campaign will be sent out to. Its relevancy and its quality.

In a B2B company, LinkedIn and sometimes Facebook and Twitter are necessary; these channels are so popular that most people assume a company doesn't exist if they are not on social media.

Also, take the time to build a brand strategy. You may be on all the right channels, but you may not have an identity consistent enough for people to relate to. A brand strategy will help you decide who your target audience is and how to best speak to them.

2. FORGETTING YOUR BRAND

With all the talk about the importance of engagement, many marketers get so caught up in sharing that they forget to speak for their own brand.  Yes, we need to engage, but we also need to have an identity. Think of it as a conversation. You want to contribute to the conversation by listening and talking, not just one or the other. Make sure that you, and every other employee, are clear on what your brand identity is and start promoting it.

3. NOT FOLLOWING UP ON LEADS

Sometimes, the sales team will commit to follow up on your campaigns themselves. As they get busy, or as other leads turn into bids, the salespeople can become distracted and drop the lead follow up. We need to have a plan if this starts happening. Furthermore,develop a strategy for “slow burners”, also known as the people who have expressed an interest but are not ready to move forward yet. How will the campaign keep them warm until they are ready to buy?

4. BUSINESS PEOPLE ALWAYS WANT PERSONALIZED MARKETING

Personalization has always been a very effective marketing strategy to nurture and relocate potential customers. If a potential customer and the brand have a relationship, then personalization is helpful and thoughtful.

However, personalization should be voluntary. Making personalized outreaches to a customer who does not give permission destroys trust and invades privacy. A recent study shows that before a relationship is built up, if the dissemination of information of a brand is too personal, it will do harm to the brand.

5. FAILING TO INTEGRATE WITH OTHER ORGANIZATIONAL ENTITIES 

Partnerships are marketing gold and yet many businesses fail to take advantage of them. Let's partner with a charity, a like-minded company or local businesses and both parties will reap the benefits. With social media, B2B partnering is easier than ever. Simply create a place on your website that talks about your partnership and then both parties will use social media to promote one another. This will lead to greater exposure for everyone and showcase that our company is committed to helping others succeed.

6. MISSING OPPORTUNITIES TO RE-ENGINEER CRM

The convenience and low cost of social media offer the most advantageous opportunities for cost-effective, high-performance customer service and customer relationships since the inventions of the internet and customer relationship management (CRM) software. Companies can offset the cost of social media implementation by re-engineering.

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Synergistic Marketing Campaigns

There are probably two important developments that helped evolve the media mix concept into what we now think of as multi-channel synergistic marketing campaigns:

• A transition by marketing and advertising professionals toward integrated communications. 

This marked a shift in focus from transactions to customer relationships. Even outside the marketing arena, engineers and statisticians were contributing by following the lead of successful Japanese industries that re-engineered business processes around customers’ needs. Power was then shifting to the consumer and the management of  communication processes was being elevated to strategic levels to help build customer relations and drive business results.  In addition, other market realities continued to fuel the trend toward relationship marketing through expanded communication and sales channels, such as:

1. Competition increased while the cost to acquire new customers soared, making it increasingly important to establish solid customer relationships, especially with those who projected high lifetime values.
2. Customers in a satisfied business relationship became clearly recognized as the best source of new business.
3. Privacy concerns and governmental actions placed greater focus on establishing true relationships rather than trying to blindly attract buyers with hit or miss, mass-communication tactics.

• The number of channels available to marketers increased. 

Not only was there now recognition of the importance of building customer relationships and integrating communications, but new electronic media such as web sites and e-mail also added channels. What’s more, there was less distinction between pure communication channels and sales channels. Increasingly,the two were becoming one and the same. What is evident is that consumers prefer personalized communications:

CAP VENTURES DATABASE

The New Era of Marketing: Personalization Über Alles

New methods of marketing are emerging that seek to more effectively use prospect and customer data to filter target lists, construct personalization rules and produce and execute marketing campaigns across and among the full range of media  channels available. The most successful campaigns reach consumers in a sequenced and extremely consistent manner. This creates an indirect benefit of enforcing and enhancing corporate branding.Therefore, organizations that can harness the power of other marketing channels and produce more personalized communications could put themselves in a good position to capture market share from those that don’t. There are two critical components to effective multi-channel marketing campaigns: Creating relevant offers via personalization and coordination and management of multiple marketing channels.

In a multi-channel marketing context (emails, newsletters, printed brochures, social media, etc.) personalization means using what is known about the recipient to create the offer, customize the messaging and deliver it to them in the form at requested. For channels other than telemarketing, this can include personalized greetings, relevant messages based on demographics and compelling graphics. Actually, response rates increase dramatically with an increase in the number of personalization elements. As the number of personalization elements increases from one to seven ,the click through rate more than triples, increasing from 4. 7% to 14. 8 % .

Source:YesMail

The other critical element lies  in the design and execution of campaigns that coordinate among the full breadth of channels available to reach prospective buyers. Much like personalization, this requires strategic and tactical planning. When marketers can sequence communications and “hit” prospective customers with consistent communications through various media channels, the effectiveness of campaigns increases greatly.

Data and Content Management

More than half the battle in effective marketing campaigns is acquiring and maintaining good prospect and customer data. It is important for sellers to build a repository that allows them to effectively utilize unique attributes to segment prospects and customers. Using these attributes, marketing managers can build the personalization rules and determine which prospects should receive proscribed offers, and more specifically, which messages. Once the campaign is designed, in many cases the seller (and often a third-party service provider such as an advertising agency) creates the content to support the marketing campaign.

Traditionally, sellers have created content specifically for each campaign in a tactical fashion, failing to leverage the messaging and graphical elements for other channels. Sellers are increasingly developing and managing content in a more strategic, collaborative fashion that enables content to be shared not only among media channels, but also across campaigns.

Strategies for Synergistic Marketing Campaigns

The Customer is King 

Just as an oil company would not blindly drill small holes in the earth in search of oil, your organization shouldn’t contact millions of consumers blindly, banking on a very small portion accepting your offer. Rather, seek out or build a repository that identifies which consumers are more likely to find your offer compelling.

Get Customers to Opt-in  

Companies that can build their own opt-in lists, or use qualified industry opt-in  resources, are  in  a  better  position to  communicate  and  market to  both  consumers and businesses. Explore methods, such as periodic e-mail newsletters, that provide valuable information and purchase opportunities simultaneously.

Invest in Personalizing Communications

The overwhelming response to the “do not call” registry underscores consumer frustration with intrusive, irrelevant communications. Research shows that by a ratio of over 3:1, recipients prefer personalized communications. Research also shows that the more personalized an offer is, the higher likelihood of response. It will require an increased investment in creating content and designing campaigns, but you can expect double-digit response rates.

Leverage More Effective Customer Channels 

Design and execute new marketing campaigns that leverage the full spectrum of marketing channels. Personalized direct mail, permission-based e-mail and Int e r n e t technologies can be employed to dramatically increase the returns on the marketing dollar. Coordinate marketing  campaigns using multiple  channels and take advantage  of the “multiplier effect.”

Simplify the Transition by Using Service Providers 

Personalizing communications and running multi-channel campaigns can be a challenge for those selling organizations that do not currently have the technology or process infrastructure to develop multi-channel strategies, manage customer data, manage marketing content and execute integrated campaigns. Sellers will find that there are several service providers that can help them transition from their current practices to leverage more effective marketing practices.

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