We believe that a company’s brand is the value promise they make to their customers.  Branding should be all about ensuring the consistent fulfillment of the value promise in everything the company does.  Once that is achieved, it is also important to develop a brand image (logo, naming, color scheme, “look and feel”, etc.) that adds credibility to and supports the value promise.  It is also important that brand communication (through collateral, advertising, sponsorships, etc.) convey the value promise to the marketplace in a consistent fashion, so as to not confuse the message.  Positioning is defining the unique universe of customers (markets) for which your offering applies, and aligning the “whole product” solution required to serve the needs of that universe.  Differentiation is clarifying what makes your offerings better than those from others who solve similar problems for the same universe.  We also believe that differentition can only take place on an individual basis, not contrived through messaging or products.  While defining an appropriate brand image and ensuring consistent brand communication can be important and useful activities, they are a complete waste of time if they are not based on a value promise that is attainable (based on the companies fulfillment capabilities), relevant (to your target stakeholders), and differentiated (from your major competitors).  Image and communication are also a waste of time if the company does not make the consistent fulfillment of the value promise (across all aspects of the company) a top operational priority.

 

Common mistakes technology companies make:

 

1.      Failure to ensure consistent fulfillment on value promise across entire company

2.      Belief that marketing is the only group that communicates brand (value promise)

3.      Over-emphasis on brand image vs. fulfillment on the value promise

4.      Inconsistent brand image or brand communication clutters the value promise

5.      Failing to define a finite universe of common buyers who share a problem you can solve.

6.      Developing a solution for which the universe of common buyers is too small to justify a market and meet revenue targets

7.      Failing to understand the company’s role/position in the “whole product” solution

8.      Unwillingness to accept existence of alternate solutions

9.      Claiming differentiation that isn’t unique in the market or (worse) doesn’t exist

10.Claiming differentiation which isn’t relevant to buyers, or whose relevancy is clouded by technical jargon (feature support vs. business problem solved).

 

Past Articles in the Series

 

Value Engine - Defined 

http://blueprint.eponym.com/blog/_archives/2006/3/15/1821171.html

 

Uncovering the Value Engine - Part 1 Product Managment Cluster

http://blueprint.eponym.com/blog/_archives/2006/4/14/1886252.html

 

Uncovering the Value Engine - Part 2 Business Plan and Corporate Strategy

http://blueprint.eponym.com/blog/_archives/2006/4/21/1901388.html

 

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