a useful guide to the

brand utility ingmar de lange / mountview @idelange

2014 version!

i love marketing.i hate marketing. !marketing can be annoying. but it can be meaningful as well.it can do nice things.even good things. !the brand utility is an example. i hope this extensive guide inspires brands to do good. !i originally wrote it in 2010. this is a new, updated version.!ingmar

part 1.the background

in the old days, marketing made sense. take a bakery in a small village.!the baker had a personal relationship with his customers. there was a daily dialogue between them.there was a shared context, everyone lived in the same village. it was a special experience to visit the bakery.

the industrial revolution disrupted marketing.the bakery turned into a factory, the village became a city.!the factory had no relationship with its customers. there was no dialogue between them. city life was anonymous, there was no shared context. it was just about the product, there was no experience.

now marketing goes back to basics. big brands behave like little bakeries.!they initiate personal relationships with their customers. their marketing is less about sending and more about dialogues. they create shared contexts with their customers. they do not only offer products, but brand experiences as well.

in other words, marketing makes a u-turn.

scal

e

meaning

olddays

industrialage

now

but brands tend to forget the bakers main question.

how can i help you?

the brand utility is about this question.

!9

part 2.what is it?

productsare useful.

promotionsare intrusive.

marketing has a split personality.

it isuseful

it is apromotion

the brand utility combines the two.

homeplus turns billboards into stores.

dominos shows the status of your order to promote its delivery service.

amazon uses its advertising budget to subsidize a free delivery service.

the brand utility promotes a brand by helping people.

chevrolet offers test drives to stranded motorists.

nokia connects people by offering silence booths at music festivals.

ibm helps people with its billboards.

stiegl offers a free public transport ticket to curb drunk driving.

nationwides app helps you on the spot after an accident.

volvos app finds and locks your car, shows its data and starts the heater.

car2gos app helps you to book, find and inspect your rental car.

klm uses twitter to quickly help its customers, 24/7.

tesla offers free charging for life to model s owners.

offer a service

attract attentionspectacular

service

a brand utility is a combination of a medium and a service.

but again, this approach is not new. !it is marketingback to basics.

michelin has helped you to find the best restaurants since 1920.

shell has offered extensive sets of road maps for decades.

part 3.what isthe effect?

a brand utility can increase brand preference

preference

because a brand that helps you, is more likable.

sales

but it can also directly influence sales

!34

because a brand utility can remove purchase barriers.

orientation purchase

browse and buy at amazon while you are in a bookstore

uber's app makes it easier to book a taxi.

albert heijn manages your shopping list, making it easier to buy groceries.

heinekens bar approaches you, so you can buy a beer more easily.

tesco sells products at airports, delivered at your home upon your return.

!40

a brand utility can also stimulate usage.

usagepurchase

nike+ helps you to use the shoes you bought

amex helps you to manage your receipts after your purchases.

eneco shows you how much energy you use.

in short, a brand utility can make a brand friendlier. but it can also improve the customer journey.

!44

part 4.why is itpopular?

reason 1: advertising becomes less effective.

brands try to get closer to consumers by helping them out

because you cant always be funny, but you can always be useful.

nike is useful for you, every minute of the day.

reason 2. digital media can do so much more than advertise

apps and social media become service channels for brands

these service channels become very intimate

since digital services are very scalable, they become mass media.

in short:digital services are discovered as a new form of advertising.

!54

part 5.what doesthis mean?

digital is changing the face of marketing.

!56

most products are alike, there are not that many reinventions.

the best route seems to be the emotional differentiator

SERVICE

COMMODITY

PRODUCT

EXPERIENCE

but digital creates great opportunities for basic reinventions.

SERVICE

COMMODITY

PRODUCT

EXPERIENCE

ebay reinvented classified adds.

SERVICE

COMMODITY

PRODUCT

EXPERIENCE

airbnb reinvents the hotel industry.

SERVICE

COMMODITY

PRODUCT

EXPERIENCE

netflix reinvents television.

SERVICE

COMMODITY

PRODUCT

EXPERIENCE

digital brands are successful with a functional differentiator.

SERVICE

COMMODITY

PRODUCT

EXPERIENCEthe experienceis added value

added value is the experience

google introduced a search engine that was functionally better.

SERVICE

COMMODITY

PRODUCT

EXPERIENCE

facebook introduced a better social utility.

SERVICE

COMMODITY

PRODUCT

EXPERIENCE

in other words, digital turns the marketing hierarchy upside-down.

DIGITAL AS AN EXPERIENCE

DIGITAL AS A SERVICE

DIGITAL AS A PRODUCT

DIGITAL AS A COMMODITY

now the basic differentiators have the biggest impact

DIGITAL AS AN EXPERIENCE

it is not that difficult to create a digital experience for a brand.

digital offers many tools to quickly create a brand experience.

DIGITAL AS A SERVICE

a new, digital service is more challenging

a digital service directly influences a brands business model.

DIGITAL AS A PRODUCT

the experience economy is turned upside down.the impact is even greater when digital changes the product

this changes the core principles of the value chain.

DIGITAL AS A COMMODITY

the experience economy is turned upside down.the biggest challenge is to invent new, digital commodities

digital reservation systems were so successful they became a necessity...

in short, digital makes it easier for brands to make an elementary difference.

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part 6.some tips

tip 1: make daily things easier.

kelloggs helps you to lose weight...

starbucks offers one of the most successful mobile payment services

simple shows how much you can still spend.

xbox claims to have the most responsive twitter feed in the world

patagonia shows you how to repair your gear.

tip 2: for advertising, brand involvement is always the same

insurance

toilet paper

travel

beer

low

hi

gh in

volv

emen

t

negative positive

2. bookticketsremove

frustration

3.arrange practicalities

remove irritation

1. make plans

support aspiration

4. share pictures support

fun

for a brand utility, the involvement differs per step

low

hi

gh in

volv

emen

t

negative positive

so study the involvement with your brand utility.

remove frustration

remove irritation

supportaspiration

supportfun

low

hi

gh in

volv

emen

t

negative positive

tip 3: check whether useful is really useful

your brand utility is useful when people would pay for it.

advertising effectcampaigns

brand utility effect tipping point

bothcombined effect

tip 4: advertising can be a catalyst for a brand utility.

but advertising should go back to basics and share usefulness.

tip 5: brand utilities are not about nouns, but about verbs.

shoe run

tip 6: a brand utility should have six characteristics.

tip 7: the best brand utilities eventually become a commodity...

part 7.round up

be useful

!95

more inspiration?

www.socialmedia247.net

http://www.brandutility.net

thank you! ingmar de lange ingmar@mountview.nl@idelange

mailto:ingmar@mountview.nl