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The End of aXle

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This post is especially for all of you that have helped aXle Branding (Now Distility Branding) over the years.

It is to let you know that big changes are afoot...

> aXle Branding has transformed into a new breed of branding firm - one with a technology twist. Our first patent for a brand development business method and software system is being prepared as you read this.

> MaRS, Toronto's foremost technology center and incubator, invited us into their program. We moved in two months ago.

> We've renamed the company "Distility" because we need a trademark that was unique worldwide.

> We're still working the kinks out of this site (www.distility.com) and you can reach us at 416-413-7777 (lucky sevens!)

If you are reading this, there is a good chance you are a client, friend, partner, member of the team, or one of the many people who were so gracious to be interviewed for our research regarding this transformation. Thank you so much for your support.

Please keep in touch. If you want to be kept in the loop, subscribe to our blog (on the upper left).

All the very best,

 - Axle

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Brand Positioning Fundamentals - Point of Difference

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Marketing amateurs believe that positioning is just about what makes a brand different. As I’ve explained in previous posts, it is far more. To recap, positioning done right, includes:
 
1. Your target customer
2. Their need
3. Their frame of reference
4. Your point of difference(s)
5. Your reason(s) to believe

Why is the point of difference so important? Because it is why a customer will chose to resolve their need with your promise instead of the competition's.

What's the diff?
What does your idea do better than the competition? What feature or quality makes your idea unique? Perhaps your idea takes place in a one of a kind permanent location. Maybe you’ve acquired a patent for a unique material or process. Or, perhaps your idea stands out for something simple that may not sound revolutionary - but is dramatically different in your industry or niche. (Like decent customer service or rates for wireless in Canada!)

Unique, Compelling, Relevant, Credible
A great point of difference is hard to come by. It needs to be unique, compelling, relevant, and credible. By "compelling" I mean the point of difference forcefully engages the customer's attention. By "relevant" I mean it is very important or significant to the customer. By "unique" I mean exactly that. No one else is delivering on the difference, and you can convince people that only you can do it. By "credible" I mean solid, not an abstract fluffy idea that has no teeth nor authenticity.

The biggest blunder right off the bat
It is sad that so many people misunderstand the basic concept of positioning. The term itself implies "positioning" against something else. The customer's need and frame of reference are not what is being positioned. What is being positioned is your brand's difference against other brands' differences. Don't make the all too common mistake of leaving the competition out of the question. And saying that there is no competition is no excuse. Defined honestly, even if you are the only game in town, the customer’s need should be able to be fulfilled – however partially -- by alternatives.

This is how we do it
In our Distility 1day1brand sessions, we make sure everyone understands how positioning works. Only then do we go forth and...
  1. The team brainstorms all the emotional benefits, functional benefits and key features the competition credibly promises the customer.
  2. We brainstorm what additional benefits and features we might credibly promise the customer.
  3. We extract the features, emotional benefits and functional benefits that we think are most different than the competition.
  4. We review each one and ask "How well does this resolve the need we identified for the customer?"
  5. We brainstorm fresh differences, purely from the customer's perspective. This is because sometimes the client is so steeped in the details of their brand that they can't see the most brilliant point of difference because it is so blindingly obvious.
  6. We promote the differences that are compelling, relevant, unique and credible. We demote those that are not.
  7. We rinse and repeat until we settle on one point of difference.
Occasionally, if a very strong case can be made that two differences are equally strong and important, we choose both.

Innovation is a dangerous point of difference
Sometimes our clients are so enamored by their innovation that they can’t think of anything else they would rather have for their point of difference. We have to work hard to remind them that what they perceive as a positive difference, Ex. First use of X technology, may be seen as a negative by the target customer. Most customers don’t want to buy something that is different because it is new. To the contrary, they want to buy solutions that are proven, and no risk.

More on this in my next post: Innovation and the Point of Difference

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Breaking Brand News - iPhone Killer from Germany - The xPhone

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We don't normally do breaking news over our blog but this is too important to ignore. It is a serious game changer! Apple and Motorola will need to change their branding strategies for sure.

The SMS to Toast feature has still got us wondering... how do they do it?

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Brand Positioning Fundamentals - Innovation and Frame of Reference

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brand positioning model 

We're now half-way through my mini-series on Brand Positioning Fundamentals. You'll recall the key elements:

1. Your target customer
2. Their need
3. Their frame of reference
4. Your dramatic difference(s)
5. Your reason(s) to believe

In my last post, we covered the customer's frame of reference. Let's go a bit deeper here because it is especially easy to get this wrong if you are marketing a highly innovative or disruptive brand.

Take a look at the iPhone. When Steve Jobs introduced it what frame of reference could he have used? He could have invented any term for the frame of reference and the fanboys would have internalized it instantly. Internet Telephone Device? Web Handset? Superphone? What term did Apple use? The video below makes it pretty clear.
 
The iPhone frame of reference 



Apple took great pains to make the frame of reference the dumb old "phone", showing 70+ years of cinema stars answering them. Apple understood that using the phone as a frame of reference made the device instantly familiar to the masses. Notice that they didn't use a frame of reference for their fanboys. They were focused on the mass market opportunity. Too many innovators overlook this most basic piece of brand positioning hygiene - focusing on the right target audience.

Was that it then? Decided and done? No. As mentioned in previous posts, brand positioning must be ready to change with the competition, the market and the customer. When the iPhone as familiar phone-like object was successfully embedded in the minds' of the masses, the company then expanded its' frame of reference to include browsing the web, email, music, applications, and much more.
 
Motorola Droid frame of reference
Jump ahead three years to the recent launch of the Motorola Droid. As previously posted, I've intuited the droid brand positioning at launch to be:
 
For the technology leader who needs the latest and greatest device, the Motorola Droid is the iphone killer, with a giant screen and the ability to run multiple applications with ease. 

Notice the frame of reference in the video below...
 

 

In the subsequent commercials, the brand gets way more creative and I have to admit to being a little uncertain. Is the frame of reference iPhone or "robot"? The robot theme is played hard, saying "Instead of a smartphone, we made a robot phone."
 
  
But without getting into the semantics of artificial life, I think they are simply saying they made a phone that kicks iPhone butt. (comments welcome).
 
This is something Blackberry or Windows Phones don't have the feature set to do, but the Droid does. If you really can take on the number one player, and their brand is ubiquitous like the iPhone, you can make them your frame of reference with brilliant results.
 
Palm Pre - Missed positioning opportunity 

Sadly, this is a tactic Palm could have taken with the Pre. Instead, their frame of reference was just like Apple but two years too late: the plain old phone. And now, as the Droid grabs mind share with their strategic brand positioning, Palm, Windows, Blackberry and other smartphone players are getting pushed down the brand ladder, while the Droid gets comfortable (at least for now) in the number two customer loyalty spot behind the iPhone.

Brand Positioning is not some abstract concept. It is a set of simple, plug and play rules that you can ignore or exploit to your advantage.
 
Ask yourself (especially if your brand is innovative):

  • Is my frame of reference designed for my target audience?
  • Is it instantly familiar and orienting?
  • Am I missing a massive brand positioning opportunity? One where I could use a ubiquitous competitor as a point of reference, and in so doing slingshot my brand into greater awareness?

 

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Brand Positioning Fundamentals - Frame of Reference

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Brand Positioning Model 
In my last post on brand positioning fundamentals, I reviewed the target audience need. The Motorola Droid was used as our example to illustrate the key elements in a classic positioning statement which are:

1. Your target customer
2. Their need
3. Their frame of reference
4. Your dramatic difference(s)
5. Your reason(s) to believe
 
Together they give us a positioning statement such as the one I've intuited for the Motorola Droid:
 
For the technology leader who needs the latest and greatest device, the Motorola Droid is the iphone killer, with a giant screen and the ability to run multiple applications with ease. 

You'll note that we've set the Droid's frame of reference as "iPhone". Before we explain why, we need to cover the fundamentals.

Frame of reference can be dead simple or hard - it depends on the nature of your brand. As the name suggests, it is the target audience's in-built mental frame of reference for your brand. Your frame of reference for Coke-a-Cola is likely "soft-drink". Your frame of reference for Nintendo Wii is likely "gaming system".

Bad frame. Bad brand.

The wrong frame of reference reduces brand awareness because your target audience doesn't immediately "get it." Perhaps the most famous example of this situation is TiVo. Today the idea of a PVR - Personal Video Recorder - is a commonly understood frame of reference. But when TiVO launched they ignored the importance of frame of reference. They should have used "VCR" as the customer's frame of reference saying, "TiVO is like a VCR that can also...". Sure it may have hurt their pride to lump themselves into the category of the technology they were disrupting, but it would have increased awareness and consideration of their brand. Instead, it took a long time, too long, for their brand to catch-on.

Frame of reference frames the competition too

One very helpful quality assurance test of your frame of reference is the competitors it creates. This is because the frame of reference determines the competition. So if TiVO had used VCR as its' frame of reference, buyers would have seen other VCR brands as the competition and TiVO could have given their marketing some bite. But without a quality frame of reference, buyers weren't sure with what to compare TiVo. This is also a great reminder of the essence of positioning: to position your brand against others.

Closer to home, a marketing agency client of ours was of two minds - some felt that they were a "branding agency", others a "digital agency". So we had to have a conversation about their frame of reference. It was the discussion about competitors that resolved the split. I said "If you are a branding agency, then you are going to compete against Interbrand, BBDO, and JWT. And you are going to compete for television spots, direct mail, and lots more. Is that the kind of business you want to pitch?" The answer was a clear "no." Their portfolio was perfect for winning against digital agencies like Organic. Thus "digital agency" became the frame of reference they use for their positioning statement.

When considering your frame of reference ask yourself:

1. Is it one your target audience can instantly grasp without explanation?
2. Is it the right frame of reference?
3. Does it define competitors for your brand?

In my next post, I'll tackle the frame of reference used for the Apple iPhone and the Motorola Droid. Both are great examples of strategic positioning wherein frame of reference plays a critical role.

 

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