Is brand building with consumers an art or a science? And how should ad agencies build brands? Angel Martinez answered these questions during his keynote presentation at the AHAA (Association of Hispanic Advertising Agencies) media conference where he told the story of his arguably “American Dream” life of growing up in the Bronx, becoming CMO of Reebok, building it into a sports powerhouse and more recently joining the Deckers Outdoor Corporation, maker of the Uggs and Teva shoe brands, as CEO and Chairman.
Born in Cuba, Mr. Martinez and his family moved to the South Bronx where he spent his teenage years. In 1967, during the height of the summer of love, his family moved to the Bay Area. He summed up those two different worlds with two different versions of the same shoe: A black pair of high-top “Cons,” or Converse’s “Chuck Taylor” shoes, versus a white pair of low-top “Chucks.” Wear the white low tops in the Bronx and you’ll get beat up. Wear the black high-tops in the Bay Area and you’ll get beat up there. It was the purchase of his first pair of “Cons” that ultimately drew him to the footwear industry and build his success in understanding consumers no matter what their background.
Growing up in the two different worlds of the South Bronx and the Bay Area gave Mr. Martinez insights into his work today as CEO of a trend-setting shoe and fashion marketer whose goal is to understand consumers needs and deliver upon them. He shared 15 “key insights” for what all brand stewards – Hispanic or in the general market – ought to follow.
1. Pay attention: What is your product doing around the country? How is it being used and understood by consumers? At one time, Larry Bird, Magic Johnson and Dr. J all were all spokespeople for Converse and yet they lost market share. Why? Because Converse lost touch of their brand value to basketball players and what those players needed.
2. Stick to what comes naturally: Maximize what you are good at. Know your limits but don’t stop dreaming.
3. Love what you do and do what you love: Mr. Martinez cited advice back from his days studying at UC-Davis that he gave to one of his fellow runners who didn’t like running – stop! If you don’t like it, you’ll get injured.
4. Marketing is the rhetoric of business: Rhetoric, or the art of speaking or writing effectively, parallels marketing in every way. Follow the three main rhetorical styles, as expressed in Latin: Logos, ethos, and pathos; or meaning, purpose and empathy.
5. “The last 3 feet of the sale”: When Reebok was first getting started and only had $300,000 in revenues its first year, they were up against the 800 pound gorilla – Nike – with its $60MM ad budget. Reebok decided to let Nike’s ad budgets bring consumers to shoe stores and then worked to communicate to shoe sales people that Reebok was the “fun shoe to sell.” So, Reebok put its entire marketing budget towards point of sale, or “the last 3 feet of the sale,” that wall of shoes facing consumers in stores. Not long after that, Reebok surpassed Nike in sales. Reebok has sold 31MM pairs of their trademark aerobics shoes worldwide.
6. Aerobics had nothing to do with shoes: The most important thing to remember is to learn about consumers from the marketing process. Back in the 80’s, it was un-feminine to sweat. Women weren’t supposed to have muscles. Reebok offered women the possibility to discover their physical potential through aerobics. Also, women buy 8x as much footwear as men. That should have been obvious to everyone. But it wasn’t. There is a five step process for consumers evaluating shoes. One, how do they look? Second, does the shoe feel good? Third, how much does it cost? Forth, will this help my running and will it make me look cuter? And fifth, do they have it in my size?
7. Have a story that can change someone’s life and stick to it. Every great brand is built on a great product that represents the values of company like Nike, Apple or Porsche. And they avoid falling prey to the “F” Word – Fad. As an example in the shoe business, Mr. Martinez cited Crocs, the brightly colored plastic clogs, which he compares to making muffins since they are literally baked in a mold. Crocs are in the muffin business! That company grew from nothing to almost $300MM in 3 years…and then their sales fell dramatically.
8. Eventually, all brands become irrelevant and obsolete without reinvention
9. Brands endure because a creative vision stays intact. Steve Jobs, Bill Gates, and Ralph Lauren all kept their creative visions intact for their respective brands, and therefore created long-term value. What is “North” for your brand, or the strategic intention? That’s a key role for an agency. Ensure that companies stay true to the “North” for the brand and delivery clarity of vision for what the consumer wants.
10. You learn more by observing what not to do than what to do
11. Without brand vision, we are blind to opportunity: When we come across new products or stories, we all need to be clear on why and how. The agency is the brand steward for managing that process.
12. Core brand values are the DNA of any marketing organization: They cannot be altered without a significant price.
13. Build your strategy on those core values: Duh! Don’t be tempted
14. Resist the temptation to “Dumb it down”: That’s the result of being greedy and power hungry.
15. An agency should be the keeper of the Eternal Flame: That is what makes a great brand.
In conclusion, Mr. Martinez asked, “Is brand building an ART or a science?” By highlighting his preference, he answered his own question. Then, he asked why did Aristotle title his classic, “The Art of Rhetoric” and not “The Science of Rhetoric”? Because it is an art and marketing, like rhetoric, is an art as well.
Source: Joe Kutchera
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