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Copyright © 2007 Scott Hrdlicka

Sparkplugging:
Jumpstarting and Managing Brands in an
Over-Proliferated Market
by

Scott J. Hrdlicka

A Thesis Paper Submitted

to the Milwaukee School of Engineering

in Partial Fulfillment of the

Requirements for the Degree

Master of Science in Engineering Management

Milwaukee, Wisconsin

October 2007
Copyright © 2007 Scott Hrdlicka ii

Table of Contents
List of Figures................................................................................................................. v
Abstract ......................................................................................................................... vi
Introduction .................................................................................................................. vii
Chapter 1: Branding........................................................................................................ 1
Brand Experience........................................................................................................ 3
Benefits to Brands....................................................................................................... 5
Brand Equity............................................................................................................... 6
Brand Awareness and Brand Presence..................................................................... 6
Brand Identity ............................................................................................................. 8
Brand Identity Traps................................................................................................ 8
The Brand Image Trap ............................................................................................ 9
The Brand Position Trap ....................................................................................... 10
External Perspective Trap...................................................................................... 10
Product Attribute Trap........................................................................................... 11
Line Extension.......................................................................................................... 12
The Category ................................................................................................................ 12
Defining the Brand Category..................................................................................... 16
Positioning.................................................................................................................... 19
Positioning Essentials................................................................................................ 20
Frame of Reference................................................................................................... 21
Point of Difference.................................................................................................... 21
Functional Benefits ............................................................................................... 21
Emotional Benefits................................................................................................ 22
Sustaining the Brand Position.................................................................................... 22
Positioning Strategies................................................................................................ 23
The Anti-Position.................................................................................................. 23
The “Not” Position................................................................................................ 24
The How We Got Here Trap ................................................................................. 24
Brand Names ................................................................................................................ 25
Company Names....................................................................................................... 26
Egomaniac Naming Trap....................................................................................... 26
Generic Category Name Trap................................................................................ 27
Brand and Company Name Selection ........................................................................ 28
Capital Letter ........................................................................................................ 28
Change a Generic Name into a Unique Word ........................................................ 28
Attribute Names .................................................................................................... 29
Industry Terms...................................................................................................... 29
Early in the Alphabet............................................................................................. 29
Unique Names....................................................................................................... 29
Name Trends......................................................................................................... 30
Initials................................................................................................................... 30
Appeal to the Senses ............................................................................................. 30
Short and Direct .................................................................................................... 31
Names and Line Extension........................................................................................ 31
Price ............................................................................................................................. 32
Copyright © 2007 Scott Hrdlicka iii

Price Expectation and Experience ............................................................................. 34


Price and Client’s Loyalty......................................................................................... 35
Price Shoppers ...................................................................................................... 36
Price Promotion .................................................................................................... 37
Section Summary.......................................................................................................... 37
Chapter 2: Promotion.................................................................................................... 38
The Evolution of Advertising.................................................................................... 39
Advertising Cost Trends........................................................................................ 40
Consumer Perceptions of Advertising ....................................................................... 42
Advertising in an Overcrowded Disruptive Society ................................................... 43
Advertising for Brand Building and Brand Maintenance ........................................... 43
Advertising Product Introduction, Case Study: Crest WhiteStrips.......................... 46
Advertising Brand Maintenance ................................................................................ 49
Advertising Brand Image Changes and Line Extension ............................................. 51
Case study: Volvo, The ReVolvolution ................................................................. 52
Advertising and Creativity ........................................................................................ 55
Case Study: Nissan................................................................................................ 57
Creativity and Animals Ads .................................................................................. 58
Public Relations............................................................................................................ 60
Forms of Public Relations ......................................................................................... 61
The PR Hook ............................................................................................................ 62
The Pitch................................................................................................................... 62
Eight Rules of Pitching.......................................................................................... 63
Quantifying Public Relations..................................................................................... 64
Marketing Research ...................................................................................................... 66
Section Summary.......................................................................................................... 67
Chapter 3: Internet Marketing ....................................................................................... 69
Internet Marketing Advantages ................................................................................. 72
Building a Web Presence .............................................................................................. 73
Domain Names ......................................................................................................... 74
Domain Name Selection........................................................................................ 75
Website Development ............................................................................................... 75
Simplicity.............................................................................................................. 76
Design................................................................................................................... 76
Content ................................................................................................................. 78
User Involvement.................................................................................................. 79
Speed .................................................................................................................... 80
Search Engine Optimization.......................................................................................... 80
Search Results....................................................................................................... 82
The Importance of Search Engine Optimization ........................................................ 84
The History of SEO Search Engine Optimization...................................................... 85
Meta Tags ............................................................................................................. 86
Modern Search Engine Optimization......................................................................... 87
Designing a Search Engine Friendly Site................................................................... 88
Text-Based Content............................................................................................... 89
Text Links and Buttons ......................................................................................... 89
Copyright © 2007 Scott Hrdlicka iv

Valid HTML ......................................................................................................... 90


Simple Page Layout .............................................................................................. 90
Fresh Content........................................................................................................ 90
Keyword Prominence............................................................................................ 90
Doorway Pages ..................................................................................................... 91
Spamming Keywords ............................................................................................ 91
Meta Tags ............................................................................................................. 91
Keywords.................................................................................................................. 91
Links......................................................................................................................... 92
Popularity ................................................................................................................. 92
Website Promotion ....................................................................................................... 93
Paid Per Click Advertising (PPC).............................................................................. 94
Research PPC Keywords....................................................................................... 96
Writing an Effective Description in a PPC Ad....................................................... 97
Pay-Per-Click and Google Adwords...................................................................... 97
Banner Ads ............................................................................................................... 98
Internet Directory Advertising................................................................................... 99
Affiliate Programs..................................................................................................... 99
Paid Affiliate Program Services........................................................................... 100
Building an In-House Affiliate Program.............................................................. 101
Shopping Engines ................................................................................................... 102
Froogle................................................................................................................ 102
Yahoo Shopping.................................................................................................. 103
BizRate/Shopzilla................................................................................................ 103
Paid Search Inclusion.............................................................................................. 104
Section Summary........................................................................................................ 105
Conclusion.................................................................................................................. 106
Executing a Sparkplugging Strategy............................................................................ 107
The Branding Phase of Sparkplugging .................................................................... 107
The Promotion Phase of Sparkplugging .................................................................. 108
The Internet Marketing Phase of Sparkplugging...................................................... 108
Glossary ..................................................................................................................... 110
Bibliography............................................................................................................... 112
Copyright © 2007 Scott Hrdlicka v

List of Figures

Figure 1.1: Brands more than a Product or Service.......................................................... 5


Figure 1.2: Order of Entry and Relative Market Share................................................... 14
Figure 2.1: Crest WhiteStrips Advertisement. ............................................................... 48
Figure 2.2: Volvo Safety Advertisement. ...................................................................... 53
Figure 2.3: “The Volvo ReVolvolution”........................................................................ 54
Figure 2.4: Nissan Toys Advertisement......................................................................... 57
Figure 2.5: Animal Advertising and the Result.............................................................. 59
Figure 3.1: Advertising and User Involvement. ............................................................. 72
Figure 3.2: Search Engine Results................................................................................. 84
Figure 3.3: Yahoo! Sponsored Search. .......................................................................... 95
Figure 3.4: Samples of Adwords in Google Search........................................................ 98
Copyright © 2007 Scott Hrdlicka vi

Abstract

Sparkplugging is a process of developing and jumpstarting brands that stand out

and out perform the competition. It builds focused brands and promotes these brands in

ways that minimize the common costs associated with marketing. Sparkplugging draws

many parallels between small and large businesses because marketers can learn from the

large marketing budget mistakes of many Fortune 500 companies. Although,

Sparkplugging strategy is designed for small and medium businesses, large organizations

can also benefit by using a Sparkplugging strategy when launching new and emerging

brands. For those looking to advertise, like Microsoft, Starbucks, and Subway,

Sparkplugging will demonstrate that advertising is not the marketing activity that made

these companies successful.

The Sparkplugging process begins with branding, and then it takes marketers on a

journey that endows brands with personality, identity, and a brand experience. In addition

to the internal development a brand, Sparkplugging addresses brand development in the

external environment by giving marketers strategies for positioning brands that will lead

their category. After marketers Sparkplug their core brand, Sparkplugging offers the

marketers a revolutionary approach to promoting their brands by using public relations

and Internet marketing as alternatives to classical advertising.


Copyright © 2007 Scott Hrdlicka vii

Introduction
“Operational effectiveness means you’re running the same race faster. But strategy is
choosing to run a different race because it’s the one you’ve set yourself up to win.”
- Michael Porter
Sparkplugging is a method for jumpstarting businesses and brands in modern,

over-proliferated markets. Addressing key attributes commonly missed or confused by

many businesses and marketers today, Sparkplugging by design is used to get a brand

started or back on track quickly. However, is not a quick fix, nor is it intended to be a

quick solution. Instead, Sparkplugging is a practice, a set of marketing strategy resources,

a mantra, that is not a silver-bullet solution for all businesses and brands. It is designed to

help new and emerging brands with fixed budgets and often fits businesses and brands

that are looking to fight complacency and to gain upon competition without always

following the common laws of marketing strategy.

Although this thesis is about a marketing strategy for new and emerging brands

running on fixed budgets, Sparkplugging can be read from front to back; however,

reading in such a manner is not its functional intent. Instead, the intent of this thesis is to

provide reference to those looking to build and develop, reinvent, or change their

businesses or brands. This process is typically not linear; therefore, reading this thesis

front to back may not be as beneficial as the reference it can provide when building

brands.

Sparkplugging was designed after the realization that several organizations

operating on fixed marketing budgets suffer from marketing strategy. This problem is

often apparent in promotional activities performed by small businesses. The unfortunate

truth about marketing is that poor marketing, in general, often spreads from the internal

staff to the outside world. Businesses looking to adapt a Sparkplugging strategy should
Copyright © 2007 Scott Hrdlicka viii

focus on three core areas when developing their strategy and related marketing activities

for their businesses: Branding, brand promotion using advertising and public relations,

and Internet marketing to jumpstart marketing.

Although branding has been around for thousands of years, marketers and

business people frequently misunderstand it. Today, the understanding of branding for

marketing success is a must. Because of over proliferation across common marketing

channels, marketers have increasingly less time to get their messages into the minds of

the consumers. This over-proliferation of communication channels also reduces the

probability that a prospect may retain that message because of this over-proliferation of

mass advertising; a brand with laser-like focus is a must.

The second section of Sparkplugging covers brand promotion using advertising

and public relations. A commonplace myth in the marketing community is that

advertising dollars do not work as they once did and that the results from marketing

campaigns sometimes even have adverse effects on an organization or its brands.

Sparkplugging covers the issue of low marketing budgets and shows alternatives to

common media channels for jumpstarting a brand.

Lastly, the final section covered in Sparkplugging covers Internet Marketing, and

how businesses and brands can use this new medium to jumpstart their marketing

strategy, while on a fixed budget. Sparkplugging offers focused direction regarding

Internet marketing by offering tips on design, search engine optimization, and web

promotion. This chapter stresses how essential understanding and using the Internet for

competitive advantage is for a business’s survival and growth.


Copyright © 2007 Scott Hrdlicka ix

Those looking to adopt a Sparkplugging marketing strategy should find that a

sound marketing strategy often works worldwide and requires little change from

geographic area to geographic area. Although certain geographic areas might use

different products, the message or space targeted in the consumer’s mind often remains

the same. Time and time again, excuses for lack of sales or effort, like “this is a different

market,” and “this city needs its own identity,” are wrong: ninety-nine percent of

successful marketing strategies work everywhere.

Sparkplugging offers the understanding of how a good marketing strategy

ultimately shakes the halls in each department in the building and the ground of the

competition and creates awareness in the marketplace, eventually building a strategic

harmony around the brand.


Copyright © 2007 Scott Hrdlicka 1

Chapter 1: Branding

“Branding: It’s about meaning, not marketing … about deep company logic, not fancy

new logos.”1 – Tom Peters

Branding is probably the most essential ingredient in formulating a Sparkplugging

marketing strategy. Brands influence nearly every buying decision because they create a

space in the mind where the consumer can identify with an organization’s products or

services. In Sparkplugging, branding is the most important phase. A common phrase in

today’s culture is “brand new.” Many consumers even use the following terms to describe

used products: “The car is so clean it’s almost brand new,” or, “I just bought a brand new

1985 Chevy Camaro.”

Businesses now more than ever need to establish a brand identity or meaning in

the mind of the consumer. As the market continues to be flooded with advertisements

businesses cannot afford to lack focus when branding the organization. When the brand

fails to create understanding or make a spark with the customer, the customer cannot

identify with the brand and goes elsewhere.

Today, it seems that organizations fail to understand the overall scope of what is

changing in the market and sometimes what is going on inside their own organizations.

Employees are becoming more and more disconnected because it appears top executives

are confused and lacking direction. Direction from corporate leadership must be managed

and distilled in all communication to and from the organization. When organizations fail

to create clear, focused, and consistent communication regarding their brands, employees

1
Tom Peters, 2003, Re-imagine! (London: Dorling Kindersley Publishing), p. 158.
Copyright © 2007 Scott Hrdlicka 2

and prospects alike become confused and the organizations lose brand strength in the

minds of consumers.

This unclear vision of marketing brand strategy by marketers is often a result of

poor strategic planning by executives. Such practice results in conflicting agendas and

poor communication throughout the organization. When members of many executive

staffs plan strategy, most of the strategy is based on lengthy descriptions of industry

competition, personal interests, how to get a little extra market share here and there, or

how to cut costs on current operations. Marketing strategy must be shared and understood

throughout the organization by everyone from the janitor to the CEO. Each employee

must embrace and understand the identity of the organization. If the employees cannot

understand what a brand stands for, odds are prospective clients will not either.

Brand strategies, like many marketing strategies, end up as plans that are seldom

different from past failures and usually include a long list of goals and initiatives, with a

full budget, fancy graphs, and lengthy and unclear, spreadsheets. Many times,

organizations fail to understand and communicate with prospective clients what the brand

actually offers or why it exists. Many failed brand strategies appear to rely on previous

unsuccessful communication filled with jargon and unclear communication about the

brand’s identity, this jargon is normally found in much of their media advertising.

Organizations must strive to create an association or difference in the mind of the

prospective client about what their brands really are and what they offer. Brands today

need to find their point of difference and focus on that difference in all communications.

When building brands, organizations must understand that no brand can truly be more

than one thing in the mind of the consumer. A brand should be focused. Many brands that
Copyright © 2007 Scott Hrdlicka 3

attempt to be everything to everyone become nothing to anyone.2 Those brands that try to

be everything to everyone seldom lead their categories or succeed in the marketplace.

Business professionals must clearly understand that, from a business perspective,

a branding program, by design, should differentiate a product or service from that of the

competition. Branding is not a logo, nor is it the product’s name. Branding ultimately is

what the mind associates with a product or service. It takes time, research, and patience.

Brands are not built to mass market a product nor to create a conglomerate of line-

extended brands. Instead, they are built to associate a desired thought in the minds of the

clients or prospects when they see or hear of the brand.

Brand Experience

Branding is the difference between selling a Rolex watch and a Timex. For

example, is the Rolex of better quality? Maybe. Does it keep time better than a Timex?

Probably not. Do most businesses focus branding campaigns on quality? Yes, but they

should avoid focusing campaigns on quality alone.

Quality does not sell products nor build brands. Quality is an expectation, yet so

many organizations focus on branding efforts offering the selling proposition of better

quality or better customer service.3 Many businesses look at such practices in marketing

and become confused about the place for quality in marketing. It is important for

marketers to create perceived quality because consumers buy what they perceive is best;

however, quality should still remain an internal focus, otherwise, employees may think

and start to communicate that the firm does not care about quality. Organizations should

2
Alan Deutchman, October 2004, “The Gonzo Way of Branding,” Fast Company, p. 93. A copy of
this article is in the student's possession and may be consulted by contacting the student at
hrdlicks@msoe.edu.
3
Al Ries and Laura Ries, 2002, The 22 Immutable Laws of Branding: How to Build Protect or
Service into a World - Class Brand (New York, NY: HarperCollins.), p. 34.
Copyright © 2007 Scott Hrdlicka 4

create a brand that makes the customer feel the value in the product or service, like a

Rolex watch priced at $10,000.00 versus Timex, its competitor in time-keeping. With the

Rolex, marketers make customers feel better about their timepieces. Rolex has a strong

position, or spark, which is the connection made with the customer. Remember that

Rolex does not sell watches: Rolex sells the experience of their brand. Simply speaking,

Rolex sells more than a watch. Rolex sells the experience of being able to afford one of

their watches.4

Many brands today still speak of customer service or product quality, yet few are

successful in doing so.5 Brands have evolved from a want or need fulfillment to a

lifestyle or experience perceived in the mind. Successful branded companies today

understand there is much more for sale than what is on the surface. In today’s competitive

marketplace, quality and customer service are expectations, not tiebreakers.6 Brands, such

as Starbucks, offer the customer an experience. Obviously, the experience offered by

Starbucks is worth more than what a quasi competitor, such as Maxwell House, can offer,

and the experience is much more profitable. Brand experiences allow an organization to

live with their customers, and they allow organizations to understand more about why

their customers buy their products. Living with the customer allows organizations to

understand how their customers use the organization’s product or service. Most brands

that create memorable experiences attach many “soft attributes,” like comfort, warmth,

4
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 37.
5
Peters, p.113.
6
Jack Trout and Steve Rivkin, 2000, Differentiate or Die: Survival in Our Era of Killer
Competition (New York, NY: John Wiley & Sons.), p. 28.
Copyright © 2007 Scott Hrdlicka 5

trust, and luxury, to a product or service.7 For example, Figure 1.1 shows tangible versus

what consumers are actually investing in when they choose a brand.

Company Product Value Proposition Experience


The ability for a professional to dress up in leather and drive
Harley Davidson Motorcycle through small towns making loud noise. Rebel Lifestyle
Club Med Resort Ability to discover or reinvent oneself. Rebirth
Starbucks Coffee A place that is not work or home. A place for refuge. Refuge
Guinness Beer Bringing people together and telling stories. Community
McDonalds Food A place to get food and leave quickly. Fast
Apple Computers Ability to challenge modern thinking, change the world. Creativity
BMW Cars Drive fast and be in control. Ultimate Driving
Rolex Watch Appear rich; impress those that do not know you. Ultimate Luxury

Figure 1.1: Brands more than a Product or Service.


SOURCE: Peters, p. 116.

Benefits to Brands

Building differentiated brands in today’s over-crowded market that floods

consumers with thousands of disruptive messages daily is critical for non-commodity

market survival. Brand names influence consumers’ behaviors either logically or

illogically, for those consumers buy the same products almost all of the time based on

brand awareness, even if the product is of inferior quality. In a study conducted by

Wayne D. Hoyer and Steven P. Brown, respondents tasted three different brands of

peanut butter. The leading brand with the highest awareness that consumers choose in the

supermarket 73 percent of the time was selected inferior 70 percent of the time in blind

testing.8 In the mind of the consumers, the winning brand had superior perceived quality;

therefore, it won in sales. However, the superior quality product does not always win. It

is the product with the superior quality perception that wins in the market. The perception

of quality, service, and any other attribute of a brand equate to a brand’s equity.

7
Peters, p. 114.
8
David A. Aaker, 1996, Building Strong Brands (New York, NY: The Free Press.), p. 11.
Copyright © 2007 Scott Hrdlicka 6

Brand Equity

According to David Aaker, brands typically have four major equity builders

relating to a product or service in the mind of prospective or current clients:

1. Brand Awareness
2. Brand Loyalty
3. Perceived Quality
4. Brand Associations9

Brand Awareness and Brand Presence

Brand awareness refers to the strength of a brand by the ability for a consumer to

recall the brand name as stored in the prospect’s mind; conversely, brand presence

stresses a higher level of awareness when the consumer has familiarity of a brand’s

promise.10 Consumers’ minds today are filled daily with thousands of marketing

messages, and brand awareness relates to how well a message is recalled and how much

of the prospect’s mind is filled with that brand’s message. Not all branding messages are

mass-market messages, nor should they be. Branding messages should be narrowly

focused, thereby, allowing marketers to spark brand category recognition. Such focus

leads to a branding advantage enhancing brand presence in the mind of the consumer.11

To create awareness and enforce brand presence, a focused niche message should target

only specific groups and sectors of consumers. The first brand to come to mind when

relating to a specific category of product or service is considered “top of mind”

awareness.12 Top of mind awareness is the ideal position for a brand because the first to

9
Aaker, p. 8.
10
Nigell Hollis, Fall 2005, “Branding Unmasked,” Marketing Research, Vol. 17 (3), p. 26. A copy
of this article is in the student's possession and may be consulted by contacting the student at
hrdlicks@msoe.edu.
11
Hollis, p. 26.
12
Aaker, p. 10.
Copyright © 2007 Scott Hrdlicka 7

mind is typically the first to sale; however, first to mind does not mean the only brand to

sale.

Brand recognition is an inferior but similar form of brand awareness that takes

place in the minds of consumers. If a brand is not top of mind, consumers may still

recognize the brand. Psychology has proven, that, at a minimum, the consumer will often

feel more positive toward a brand if they have awareness of it because they commonly

feel like they somehow have a connection with the brand.13 This type of brand

recognition holds true for movies, music, products, services, similar terms, and similar

products that develop into positioning and category questions in developing a brand

strategy later. It is critical for organizations to understand that if a brand is not the first to

mind, positive thoughts still typically occur through awareness alone; however,

awareness and presence alone may not necessarily lead to a product’s sale unless the

perception of the brand is that of a category leader or of perceived higher quality.14

Brand awareness and presence are triggered by thoughts or relationships that

occur in the mind of consumers. Consumers typically produce positive feelings of

recognized brands because the general perception by consumers is that most businesses

will not spend money soliciting inferior products or services. A perception of superiority

of products or services typically occurs in the mind of the consumer and is often much

more than an attribute of superiority alone. Perception of superiority is more of an

experience produced by the brand’s overall design, perceived quality, or leadership.15

When design is consistent and clear to consumers, they comprehend messages about a

13
Aaker, p.10.
14
Aaker, p.10.
15
Al Ries and Laura Ries, 2004, The Origin Of Brands: How Product Evolution Creates Endless
Possibilities for New Brands (New York, NY: HarperCollins.), p. 255.
Copyright © 2007 Scott Hrdlicka 8

brand quickly. They will also typically perceive feelings of brand association just by the

brand’s design.16 Clear design and consistency are ultimately important for retention

purposes in brand strategy. Consumers who experience advertising often perceive any

recalled marketing communication as good, even if they have little trust in

advertisements.17

Brand Identity

A brand’s identity, which is similar to the identity of an individual, serves the

purpose of direction and giving meaning to the organization, product, or service. Brand

identity also creates associations in the minds of consumers. The purpose for creating

strong brand identity is to establish new relationships between prospects and brands by

focusing on functional, emotional, and self-expressive benefits to which the consumer

can relate. Brand identity typically follows a structure of a core identity that is a timeless

essence created by the brand’s values and extends its identity and dynamically adapts to

elements like texture, traits, categories, and completeness.18 Furthermore, a brand should

stay focused, keeping its core purpose in mind; this core purpose should never change to

aid in avoiding many brand identity traps.19

Brand Identity Traps

Businesses commonly fall into one of four major traps when attempting to

reinvent or create new brand identities. The four common traps are:

• The Brand Image Trap


• The Brand Position Trap
16
Bryan LiBrandi, July/August 2005, “Use Creative Design to Build Brand Equity,” ABA Bank
Marketing Vol. 37 Issue 6, p. 4. A copy of this article is in the student's possession and may be consulted
by contacting the student at hrdlicks@msoe.edu.
17
Aaker, p.11.
18
Aaker, p. 69.
19
Marty Neumeier, 2007, Zag: The #1 Strategy of High-Performance Brands (Berkeley, CA: New
Riders), p. 53.
Copyright © 2007 Scott Hrdlicka 9

• Product Attribute Trap


• External Perspective Trap20

The Brand Image Trap

The brand image trap is one of a consumer’s perceptions. This type of branding trap

typically does not occur with an obviously troubled brand but with one that may be

sustaining its growth. The core issue with the brand image trap is that it allows a

prospect’s perception to dictate the identity of the brand.21 The brand identity trap

typically occurs with established brands that are looking to grow and extend or to lose

their category specific focus by converging or line extending.22 For example, many small

organizations pitch the common communication blunder “for all your needs.” The

problem with such a pitch is first that consumers and business do not buy what they need;

instead, consumers typically buy what they want. If consumers purchased what they

needed, Apple iPod’s would be rare.23 The second problem with such communication is

that it allows the consumer to create whatever identity for that need as their perception of

the brand. If a business were in the information technology services industry and offered

a portfolio of services, such as printer repair, pc repair, cabling, computer networking,

and phone system integration, and communicated “for all your technology needs,” the

first question the consumer may ask is, “do I need, and, if so, what are all my technology

needs? I just want to get my printer repaired.” Communication using the statement “for

all your needs” is too ambiguous and allows the prospect to dictate what the organization

does or offers. In this case, the consumer would probably tell others, “They repair

20
Aaker, p. 70.
21
Aaker, p. 70.
22
Ries and Ries, 2004, The Origin of Brands, p.175.
23
Seth Godin, 2005, All Marketers Are Liars: The Power of Telling Authentic Stories in a Low-
Trust World. (New York, NY: Portfolio Hardcover), p. 7.
Copyright © 2007 Scott Hrdlicka 10

printers,” because that was his or her need. Ultimately, such ambiguous communication

from a firm allows consumers to dictate what the brand is and how others perceive it.

The Brand Position Trap

The second common trap businesses fall into when building a brand identity is brand

positioning. Brand position traps often occur when the search for identity becomes only

attempts to find a position relative to their competitors. The common symptom of

businesses falling into the brand-positioning trap is found when the organization, instead

of defining its identity, focuses on an advertising tag line that does not contain enough

depth and character to create a brand identity.24 AVIS, for example, is number two in

rent-a-cars; therefore, they claim they must “try harder,” although this AVIS campaign is

a great positioning slogan that gave AVIS a way to carve some space into the mind of

prospects.25 Brand positions not only have to speak of what a brand is, but also a position

can also be defined by telling consumers what a brand is not. Although AVIS has

achieved moderate success with this campaign, it may also communicate to some

consumers a failed strategy or inferior product/service to the category leader. Consumers

who identify in such a manner may ask themselves, “If they are number two, who is

number one?” or “Who is it that is better since they do not lead their category? Let’s try

them.”

External Perspective Trap

The external perspective trap occurs when organizations overlook the role of brand

identity and substitute other attributes in searching for the basic brand values and

purposes. The problem with overlooking core values and purposes in brand identity

24
Aaker, p. 71.
25
Al Ries, and Laura Ries, 2002, The Fall of Advertising and the Rise of PR (New York, NY:
HarperCollins.), p. 104.
Copyright © 2007 Scott Hrdlicka 11

creation is the possibility for employees to adapt brand communication as they see fit.

This trap often occurs when employees lack understanding of what the firm stands for

and why it exists. When this trap occurs, it confuses employees and consumers alike, and

they may start thinking the organization is only about increasing sales because of

corporate greed.26

Product Attribute Trap

This final trap is the product-attribute fixation trap, which occurs when the brand

fails to differentiate between a product’s attributes. Attribute reasoning typically is based

in part on the assumption that product attributes are the only relevant basis for purchasing

decisions and are the true differentiators in competitive dynamics. Such beliefs often lead

to less than optimal brand strategies and even to branding failures. This trap is also often

a result of corporate brand research that focuses on product attributes; therefore, the

research tells the marketers what they set out to prove. When research is conducted, it

often must be quantified. Research typically finds attributes it can quantify when results

are quantified because decisions are based on tangible logic. Research is often popular

because of its simplicity and the ability to offer logical decisions; however, research also

creates the following brand identity issues:

• Failure to differentiate.
• Easily duplicated.
• Assumption that the prospect thinks logically.
• Encourages line extension, by balancing brand equity.27

All issues listed simply create major issues with strategic flexibility and fail to spark

the space in the mind the brand owns. When the branding follows product attributes, it

limits the organization’s ability to offer new products because of the recognition of the

26
Aaker, p. 72.
27
Aaker, p. 75.
Copyright © 2007 Scott Hrdlicka 12

brand based on their former research of product attributes. Such failure also inhibits the

organization’s ability to offer any statements of leadership, which, in advertising, allows

the messages to become lost in the clutter of advertising hyper-disruption.

Line Extension

Often organizations will create brand extensions based on existing successful

brands; this process is called line extension. Line extension typically occurs when a firm

attempts to save money by developing a new brand using the power of the existing brand

name. Ultimately, line extension typically costs organizations more money in the long

run because they lose focus on the brand’s identity.28 Line-extension is one of the worst

decisions marketers can make when launching a brand. Line-extended brands almost

never own categories or overthrow incumbents because line-extended brands are

unfocused. As the brand extends the meaning, the brand means less in the consumer’s

mind. Imagine a well-known dentist who decides he or she knows enough about the oral

regions of the head, so he or she may as well practice brain surgery, too. Like the medical

field, the mind can only relate so many things to a brand, and consumers buy from

focused specialists, not generalists.

The Category

In developing a brand, it is critical for marketers to understand how the

consumer’s mind works as they categorize brands and products. In general, consumers

segment products into categories that they create in their minds in order to sort and

understand similarities and dissimilarities between brands and their physical and

28
Ries and Ries, 2004, The Origin of Brands, p. 221.
Copyright © 2007 Scott Hrdlicka 13

emotional attributes. This activity essentially allows consumers to save time in

understanding what a brand is or does.29

Empirical research shows that brands that are first in their category are typically

those that hold the largest amount of market share because consumers build their

definition of that category around that brand. When build their perceptions in this

manner, the leading brand sets the rules of the category, and smart marketers can use this

leadership advantage to increase barriers for competition. Interestingly, as competitors

enter a category, they typically allocate shares in order of entry. For example, the fourth

competitor in a given category will have the fourth most market share and the second

brand in the category will hold the second most market share.30 Figure 1.2 shows a graph

representing order of entry relative to market share with the first in the category, relative

to itself.

29
Piyush Kumar, July 2005, The Impact of Cobranding on Customer Evaluation of Brand
Counterextensions, “Journal of Marketing” Vol. 69, Issue 3, p. 2. A copy of this article is in the student's
possession and may be consulted by contacting the student at hrdlicks@msoe.edu.
30
Alice Tybout and Tim Calkins, 2005, Kellogg on Branding: The Marketing Faculty of The
Kellogg School of Management (Hoboken, NJ: John Wiley & Sons, Inc.), p. 74.
Copyright © 2007 Scott Hrdlicka 14

Figure 1.2: Order of Entry and Relative Market Share.


SOURCE: Alice Tybout and Tim Calkins, 2005, Kellogg on Branding: The Marketing
Faculty of The Kellogg School of Management (Hoboken, NJ: John Wiley & Sons, Inc.),
p. 75.
Although the sixth entrant to a category obtains a fair amount of market share,

just below fifty-percent, the creator of the category retains much size advantage through

market share, making it almost untouchable.31 Brand leaders typically outsell and outlast

number two brands by a large margin.32 Brand leaders also have the option later to create

their own competition in a category by using a multi-brand strategy.33

Owning and leading a category is the ultimate position and the most powerful

differentiator for a brand; however, organizations that historically attempt to broaden

appeal to capture additional market using line extension find their market-share

diminish.34 For example, the CEO of McDonald’s claimed, “If we served beer and wine

we might eventually have 100 percent of the food-service market.”35 However, when

categories expand, they weaken, but when brands focus or specialize, they strengthen.

31
Tybout and Calkins, p. 75.
32
Al Ries, and Jack Trout, 2001, Positioning: The Battle for Your Mind (New York, NY: McGraw
Hill.), p. 43.
33
Ries and Trout, p. 49.
34
Trout and Rivkin, p. 107.
35
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 56.
Copyright © 2007 Scott Hrdlicka 15

For example, when McDonald’s attempted to launch “high-class fast food,” they lost

considerably with the Arch Deluxe sandwich because what their brand represented in the

category and in the consumer’s minds. Consumers rejected the new position because it

conflicted with their existing association with the McDonald’s brand.36

Category leaders must be careful and tolerate and welcome competitors into their

category. The best thing that happened to Coca-Cola was Pepsi-Cola because of the

resultant public relations from their battles over the use of the “Cola,” name. These wars

allowed Coca-Cola to gain mindshare from Pepsi using “Cola” which was already

associated with Coke and in turn, allowed Coke to position themselves in the category

they already owned as “The Real Thing.” Choice induces demand because it increases

category noise levels, which increases publicity and result is increased sales in the

category.37 Typically, it is wise for category leaders to promote their category even over

their own brand because if they are perceived as the leader of the category, their name

already means the brand in the prospect’s mind. In this case, consumers became more

aware of Coke and Pepsi cola products than ever, and this recognition led to increased

awareness of the cola category and increased overall cola consumption.38 Unfortunately

in this case, because Coca-Cola’s slow response to category promotion and support for

the cola wars, Coke’s market share lead over Pepsi diminished from 37% to 10%.39

Oftentimes, the issues that arise with category competition are because

competition threatens a company’s business, reduces profits, and evens the field. Many

organizations do not want a fair playing field or a fair market price; however, consumers

36
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 56.
37
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 57.
38
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 5.
39
Mark Hughes, 2005, Buzzmarketing: get people to talk about your stuff (New York, NY:
Portfolio), p.165.
Copyright © 2007 Scott Hrdlicka 16

do and are aware that they benefit from such situations. Businesses cannot own an entire

market unless it is a government-sanctioned monopoly; therefore, they must get used to

category competition as a result. Often, when competition enters a category, the

incumbent stands to win because the category is validated in the consumer’s mind as

another company enters. Category expansion typically decreases the consumer’s doubt

because the consumer now has a point of reference to pricing and product attributes,

ultimately this allows the consumer to make an active choice. Incumbents should

embrace competition and adjust their brand’s promotion to that of leadership because

consumers typically purchase the category leader. Consumers often believe higher quality

products will win in a competitive market; therefore brands can begin to communicate

their perceived quality with such tactics. When category competition arrives, the rule is to

own the category, be first to mind and promote leadership, and welcome the competition

and market-share. Being first in a category causes sparking between the brand and the

prospect. Leadership is not caused by attributes but perceptions of the brand in the

consumer’s mind.40

Defining the Brand Category

Categories give business the ability to define who, what, and where they are

relative to competition. Categories can be used to position a brand relative to their

competition. Categories enable brands to communicate what they are by showing by what

they are not. Organizations like Dell, Tesco, and Toyota have successfully taken a

common, non-differentiated product and grown their brands into corporate superpowers

40
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 57.
Copyright © 2007 Scott Hrdlicka 17

by defining their categories with better focus than their competition.41 Categories give

organizations purpose and focus. A category gives a brand the ability to claim dominance

based on its strategic selection. Using the size of an existing category as the basis for

judgment to entry, using the size of an existing market, or selecting from historical

performance and empirical data are poor marketing practices. Most often, the most

provocative categories are those that may seem the most risky, and those that are not yet

in existence.42 For example, the following new market categories and their respective

leaders have emerged over the past few decades by creating new markets for those

willing to focus and bet everything on the unknown:

• The market for expensive vodka before Stolichnaya.


• The market for expensive cars before Mercedes-Benz.
• The market for home delivery pizza before Domino’s.
• The market for inline skates before Rollerblade.
• The market for online auctions before E-bay.
• The market for free online e-mail before Hotmail.
• The market for legal audio downloading before i-Tunes.
• The market for safe cars before Volvo.
• The market for the personal computer before Apple.43

Even after several years, organizations that were willing to create the market are

still the market leaders, with some exceptions, such as Apple in personal computers.

Regarding these exceptions, the organizations’ strategies were not the process of taking

bigger share of an existing market; instead, it was taking all the share of a new undefined

market. Sometimes business are created by accident, such as in the case of E-bay, which

41
Alan Mitchell, August 2005, “Differentiate all you want, but I’d back the basics every time,”
Marketing Week (UK) Vol. 28 Issue 32, p. 28. A copy of this article is in the student's possession and may
be consulted by contacting the student at hrdlicks@msoe.edu.
42
Ries and Ries, 2004, The Origin of Brands, p. 248.
43
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 39.
Copyright © 2007 Scott Hrdlicka 18

was originally built so that founder Pierre Omidyar’s girlfriend could support her PEZ

candy container-collecting hobby on the Internet.

For the most part, consumers do not really pay attention to new brands: they pay

attention to new categories. When a brand is the first in the category, not only does it lead

the category, but also it has the ability to write the rules and create the barriers to entry

for would-be competitors.44 Categories do not need to be a complex innovation, just

simple changes to the way business is already conducted. For example,

• Callaway created oversized golf drivers.


• Domino’s delivered pizza to the home in 30 minutes.
• Little Caesars limited staff and expense reducing cost for pizza pickup.
• Boston Market focused on rotisserie chicken.45

None of the organizations listed created new products; instead, they created new

categories by narrowing their focus and changing an existing product. When

organizations focus and become the specialist in a given category, big things happen. For

instance, Starbucks focuses all their efforts on coffee and has the sales to prove it. In

2004, Starbucks had net sales of $508 million, and is predicted to continue growing for

the next three years at a rate of 20-25 percent.46 Starbucks is one of the organizations that

have created a spark between themselves and their prospects. Starbucks has created spark

by dividing and focusing on the coffee category. Using a spark-like focus, Starbucks has

even differentiated their brand from close competitors like Caribou.

44
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 40.
45
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 39.
46
Forbes.com Inc., 2005, Starbucks Set For 20-25% EPS Growth Over Next 3 Years [Internet,
WWW, Computer progam], Available: Forbes.com, 90 5th Avenue, New York, NY, 10011; ADDRESS:
http://www.forbes.com/markets/economy/2005/09/01/starbucks-earnings-coffee-0901markets16.html
[Accessed: 18 February 2007]. A copy of this article is in the student's possession and may be consulted by
contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 19

Positioning

Positioning is the process of establishing and creating a space for a brand in the

mind of the consumer. A few examples of category ownership obtained by positioning

strategies are Coca-Cola with Cola, Xerox with copiers, Dell with PCs, and 7UP with

uncola. Successful positioning strategies like those listed have built these businesses into

category leaders. Positioning strategies create everything from new categories to new

ways to reference old and dry businesses.

Because category leadership is the strongest position possible when branding,

organizations should always be searching for a category of their own in which they can

take the leadership position. Creating or developing a new category is the easiest way to

dominate a position. Winning positions are not always a possibility in existing markets

and creating a new category is not always a possibility; therefore, describing what a

brand is not is sometimes the best move. For example, 7UP understood they needed a

new position because they were in the soft-drink category competing with colas for years,

and were only minimally successful until they found a unique position relative to their

competition: 7UP became the “uncola.” Uncola successfully differentiates 7UP from

competitors and by doing so plants them in the uncola leadership position in the mind of

consumers. Commonly, the simplest way to move a position into an existing category is

to communicate to the consumer what the brand is not. In this case, 7UP was successful

when communicating it was not cola.

To position a brand, product, or service, organizations must find a niche and

exploit any and all of their differences in order to create a new category or to position

themselves relative to other leaders in that category. A brand position should also
Copyright © 2007 Scott Hrdlicka 20

articulate the benefit the customer will obtain by using a brand and how using the brand

is the superior choice in achieving this goal.47

It is possible to obtain a winning position in existing categories. For example, a

company that has successfully created a relative position without developing a new

category is Avis. Avis rent-a-car found a winning position by relatively positioning itself

against the category leader Hertz with the slogan “Avis is only No. 2 in rent-a-cars, so

why go with us? We try harder.”

Positioning started mostly in advertising where in an overcrowded society a

unique position in the mind helps brand recognition dramatically. Positioning, first used

in advertising, typically consisted of advertising agencies or marketing professionals

attempting to describe where they fit relative to any type of competition. Early

positioning statements directly addressed slogans like

• “Seven-Up: the uncola.” - 7UP


• “Avis is only No. 2 in rent-a-cars, so why go with us? We try harder.” -
Avis
• “Tastes great, less filling.” – Miller

Positioning Essentials

Positioning, essentially a statement of what the product is to achieve in the mind,

should entice the consumer to take action. Positioning can take place in a few ways. First,

positioning builds off a frame of reference, second by creating a point of difference or

differentiation, and third by sustaining a unique position in the mind of consumers. The

strategies involved in completing positioning tasks include laddering, leveraging, and

changing positions.

47
Tybout and Calkins, p. 11.
Copyright © 2007 Scott Hrdlicka 21

Frame of Reference

Brands can establish a frame of reference by claiming membership to a new or

existing product category.48 Many businesses use frames of reference because framing is

a simple way of educating the consumer what it is the brand offers or how it shall

perform. For example, Subway positioned its brand as a healthy fast-food restaurant,

allowing Subway to signal to consumers that it is quick like Mc Donald’s, but the

strategy also allows Subway to later create later a point of difference in that referenced

category by offering healthier fast food.49

Point of Difference

Point of difference uses references to the frame created by the position created in

the mind and is used to indicate how the brand is superior for a functional attribute or for

emotional reasoning.50 Differentiation, another name for point of difference, ultimately is

used to set a brand apart from competitors either by direct comparison or with a unique

selling proposition. Differentiation results in sparking between the prospect and the

brand, which is the goal of a Sparkplugging strategy.

Functional Benefits

Functional benefits are used in creating a point of difference from the framing that

takes place in the consumer’s mind. This tactic typically uses product or service

attributes. For example, in 2005, Gillette introduced the M3Power razor, which was the

only battery powered wet shaver on the market. The claim from this introduction is that

the client received a closer shave than from the competitor, Schick Quattro the four-blade

48
Tybout and Calkins, p. 14.
49
Tybout and Calkins, p. 14.
50
Tybout and Calkins, p. 18.
Copyright © 2007 Scott Hrdlicka 22

response to Gillette’s Mach 3 razor.51 Recently, Schick fired back at Gillette with the

Schick Quattro Power, a “me-too” response to Gillette, the category creator and leader in

powered disposable razors.

Emotional Benefits

Differentiation via functional benefits is typically attractive to marketers because

of its ease of communication. Emotional benefits, however, attempt to create an

emotional benefit or tie to using the brand. McDonald’s has differentiated successfully

using emotional benefits by promoting “good-tasting” consistent fast food and

cleanliness. The idea behind promoting these emotional attributes is to communicate the

fun of McDonald’s.52 Others, such as Chanel’s make up for women, have used the same

emotional branding techniques by positioning the classic luxury and acceptance of the

“upper-class” when using their “superior” product.

Sustaining the Brand Position

A brand achieves the ultimate goal in positioning by achieving the leadership

position in a category; however, the work is still not completed. After a brand achieves

recognition as a category leader, it must continue to promote this attribute whenever

possible to keep the barriers to entry in their space protected in their behalf. In recent

years many category leaders have shied away from this activity. Now people assume that

if a product or service is the category leader, it must be the best because everyone else is

using it.

The true test for a sustaining leadership position is to remove the leading brand

from the selection of choice in a given environment. If the consumer leaves in search of

51
Tybout and Calkins, p. 18.
52
Tybout and Calkins, p. 19.
Copyright © 2007 Scott Hrdlicka 23

the brand for they are looking, then instead of purchasing a competitor, the brand has

category leadership and loyalty. The strategy for category leaders is to remain consistent

and to raise the barriers of entry in their category by using defense tactics like advertising

and promotion of their leadership. Sparkplugging uses advertising of leadership as a

brand’s defense mechanism.

Positioning Strategies

Positioning experts often talk of “laddering,” which is a very simple concept once

the basic idea is explained. Each rung on a ladder is a place for the position the business

ranks in terms of sales in the category. Positioning strategy concepts include movement

on rungs of a single ladder and the creation of relative positions to other ladders or

categories.53 Laddering diagrams help organizations to understand where they fit relative

to their competition, and to visualize basic strategic marketing communication of where

they are, and to understand what they are not.

The Anti-Position

The anti-position is typically held for those businesses that are not in a leadership

position in their category. For example, a well-known anti-position used by Avis rental

cars is “Avis is only No. 2 in rent-a-cars, so why go with us? We try harder.” Anti-

positioning campaigns have worked extremely well for Avis although prior to their

positioning strategy, Avis had 13 years of losses. This positioning helped Avis define

what they are to the consumer while clearly stating what they are not. The first year the

campaign ran Avis turned a profit. Avis sales continued to rise until later purchased by

53
Ries and Trout, p. 32.
Copyright © 2007 Scott Hrdlicka 24

ITT. After the purchase, the strategy changed as they attempted to become number one

and failed.54

The “Not” Position

Seven Up created a classic successful positioning strategy that simply explained

why their brand was not relative to other brands in similar categories. It selected to

differentiate with the term “uncola,” which earned 7UP a “not” position for the 7UP

brand because they were able to position 7UP in a new category relative the their

competitors by saying not what they were in the category of colas but by saying what

they were not. This strategy allowed 7UP to own the position in the category of non-cola

soft drinks in the mind of consumers to come first to mind whenever a consumer did not

want a cola because they were the uncola. The strategy was really no more than stating

what they were not; however, brand-positioning strategies tend to have the highest

success when they clearly and simply define what the brands are not instead of

attempting to explain what they are.55

The How We Got Here Trap

Sometimes it seems that after a brand achieves even the slightest success,

management and marketing forgets what made the brand successful in the first place.

Many organizations fall victim to such thinking or repositioning as brand egos grow. For

example, Avis fell victim shortly after they were purchased by ITT. When ITT looked at

the recent successes of Avis’s legendary positioning campaign that positioned them

relative to the leader Hertz, the new executives decided Avis in the number two position

was unacceptable and set out to be number one. Unfortunately, Avis’ new ownership

54
Ries and Trout, p. 33.
55
Ries and Trout, p. 34.
Copyright © 2007 Scott Hrdlicka 25

forgot why their strategy had worked in the first place, and the repositioning failed.

Another reason for the failure was that Hertz felt that Avis was not a threat when its

statement focused on the No. 2 position, so Hertz left the second place company alone.

When Avis executives went after the number one spot, they awakened Hertz, which

already owned the mind for being number one, and Hertz quickly defended. The result is

that Avis is still number two in the rent-a-car business.56

Brand Names

Would a restaurant named Gutter sell as well as a restaurant named Subway?

Obviously not, and the worst part, the sales probably be based on name alone.57 People

and organizations alike depend on names to identify who and what they intend to

become. In business, a brand, product, company, or service’s name is one of the most

difficult and important decisions executives must make. In time, brands are literally no

more than a name identity in the mind of consumers; therefore, the name must stand for

something worth remembering.58

In naming a brand, product, or service, marketers must find a name or word that

should be open for ownership in the mind of consumers.59 Consumers often forget

general names that already represent something in their minds.

Organizations need to define their category and position with the name they

select. For example, Kleenex owns tissue for a few reasons. First, Kleenex was the first

brand name in a new category of disposable tissue. This category creation gave Kleenex

an advantage of first to come to mind awareness and with the strong brand relationships

56
Ries and Trout, p. 35.
57
Ries and Trout, p. 71.
58
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 44.
59
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 44.
Copyright © 2007 Scott Hrdlicka 26

they created between the Kleenex name, and the new category, Kleenex owned the word

and the category in the minds of the consumers; the positioning was organic because they

created the category. This strategy quickly informed the consumer of the new category

and leadership position, and shortly thereafter, consumers began calling the category by

the leading company’s name. Pass the Kleenex or pass the disposable tissue?

Company Names

Selecting the best possible company name is important for the success of an

organization. Commonly, organizations fall into two traps when creating the corporate

name: the egomaniac name trap and the generic category name trap. Company names,

like brand names, are critical for business success. For example, when citizens enter polls

to vote, many select on name recognition alone. This selection process is truly no

different than when a consumer selects an organization.60 The critical task of selecting the

perfect name often fails because businesses try too hard and often end up choosing

jargon-based names that confuse instead of those that create perceptions in the mind of

prospects.

Egomaniac Naming Trap

When organizations look for names, often they begin searching for ways to make

them look and feel superior. This naming trap typically occurs because of a lack of

creativity or a feeling that quality or leadership is somehow expressed through words like

“professional, quality, superior, or international.” The problem with these egocentric

names is that they are hardly believed by consumers and tend to blend in because of wide

60
Harry Beckwith, 2000, The Invisible Touch: The four keys to modern marketing (New York,
NY: Warner Books.), p. 113.
Copyright © 2007 Scott Hrdlicka 27

spread usage. Many of the names found in corporate bankruptcy notices are those of self-

expressed named superiority.61

Generic Category Name Trap

Historically, many firms have named their organizations after a generic category. A

short list of those which have been successful with generic names include

• NBC – National Broadcasting Company


• American Standard
• Standard Oil
• IBM – International Business Machines
• Standard Register Company
• General Electric
• General Foods62

The success of the generic named organizations listed is caused by their category

leadership, not their generic category names. They did not create a spark between their

name and potential prospects, but their names worked and made them exceptions that

prove the rule. Because they were first in their respective categories, they were first to

mind in assisting the handicap created by their names. In addition to their leadership,

many organizations used such generic terms like “national, international, standard, and

general” to downplay smaller regional competitors. The generic extension on the name

helped to differentiate these organizations from their competition. In today’s markets,

naming method does not work like it once did because there too many choices for

consumer, and category specialists get the vote of confidence when consumers are in

doubt.63

The issue with generic terms today is that with so many choices, brands, and

organizations using names like “general, standard, national, and international,” they are

61
Beckwith, p. 119.
62
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 61.
63
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 62.
Copyright © 2007 Scott Hrdlicka 28

ignored, because they no longer add value to the offering. They no longer create the spark

they once did, jumpstarting the consumers’ actions to buy or learn about the product or

service. For example, a Midwestern computer networking company, the LAN Installation

Company, had slight success until they decided to change the name to Geek Squad. The

name change to Geek Squad did far more than replace a generic sounding name: it gave

the company purpose. The organization was now seen as fun. As a result, the former

LAN Installation Company went from 2 percent market share to 30 percent market

share.64 The reason for such success after the name change is that the name was the first

step in the customer experience. After the organization stated the position in the mind as

a fun, talented company, it became talk worthy by customers.

Brand and Company Name Selection

Many successful organizations have used the following steps to create powerful

business names.

Capital Letter

When companies name themselves using lowercase letters, news reporters do not

know how to start a sentence with the company name. Starting with a lower case letter

also makes it difficult to find the company name in blocks of text.65 If it is desirable to

start a name with a lowercase letter in a business name try to use a capital letter at least as

the second letter in the name to help break apart the text.

Change a Generic Name into a Unique Word

When Lexus executives used a play on the word “luxury,” they were able to play

off the sound and feelings one assumes with the generic. Intel also successfully used a

64
Peters, p. 121.
65
Guy Kawasaki, 2004, The Art of the Start: The Time-tested Battle-hardened Guide for Anyone
Starting Anything (New York, NY: Portfolio.), p. 36.
Copyright © 2007 Scott Hrdlicka 29

similar strategy when they used a play on the generic word Intelligent.66 The closer the

name fits to the category or experience, the better it reinforces the utility of the name.

Attribute Names

Staples used an attribute name to effectively communicate that they sell office

supplies.67 When the name communicates what the company offers, the mind of the

prospect is instantly able to relate, and the consumer has a better chance of recalling the

company when looking for their offering. Attribute names can also aid brands in category

recognition or assist consumers in the mental brand to category mapping.

Industry Terms

Blockbuster Video successfully selected this naming strategy by utilizing the

word blockbuster, which is a word that is commonly used in the movie industry.68

Early in the Alphabet

Although this tactic has arguably lost significance because of Internet searches,

this tactic remains the ultimate in the yellow pages or any type of directory listings.

Companies that select names beginning in the first third of the alphabet benefit in

directory listings because they typically appear on the first page. Businesses should

remember that many consumers only call the first three numbers in a category when they

use the phone book.69

Unique Names

Unique names stand out to consumers who, on average, spend nine times as much

of their time watching TV or listening to the radio than they do reading any form of

66
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 65
67
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 66.
68
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 65.
69
Kawasaki, 2004, p. 35.
Copyright © 2007 Scott Hrdlicka 30

print.70 When a name sounds unique, many consumers subconsciously feel it is worth

recalling. When names, such as Linux and Unix, sound alike, consumers cannot

differentiate whom the message is about or worse, they assume the products are the

same.71

Name Trends

Several organizations that started in the late nineties used .com after their names.

This naming convention was great at first, because the .com at the end of their name

placed them placed into a desirable category. This naming worked well for many firms

until many of the major .com companies failed. Later, when consumers heard .com on a

name, they assumed the organization was destined for failure.72

Initials

Typically, if consumers reference a company by their initials, it means that the

other words in the name were not important enough to remember or that the name is too

long. Initials can also make a company sound generic because acronyms or initials may

not have any significance to the brand or the category.

Appeal to the Senses

A strong name that appeals to as many senses as possible creates an instant

relation in the prospects mind. When names appeal to the senses, consumers know more

than the name of the product: they feel it.73

70
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 63.
71
Kawasaki, 2004, p. 36.
72
Kawasaki, 2004. p. 36.
73
Beckwith, p. 114.
Copyright © 2007 Scott Hrdlicka 31

Short and Direct

Consumers often find a way to shorten any name. For example, when consumers

shortened Federal Express to FedEx, Federal Express later officially changed its name.

When names are too long, they are difficult to remember. Keep the name short, and it

will be more likely to be remembered.74

Names and Line Extension

Over 90 percent of new products found in United States’ supermarkets are line

extensions.75 Line extensions are products or services that share a common name

attempting to use the strength of one of their brands to carry others. Organizations of all

sizes tend to loose focus typically after their first success in building a name for

themselves. Line extensions rarely create enough spark to survive.

Line extensions frequently create temptation for marketers looking for a quick

sales increase along with the cost savings associated with building a brand. This incorrect

rationale typically occurs because marketers tell themselves that the consumer can

identify with the name already or that the brand can be further extended to grow into new

markets quickly. Others have argued successful line extensions at the following

organizations:

• GE has multiple businesses and extended their name.


• Wal-Mart sells a lot of different products.76
• Mitsubishi has over 16 brands.77

If brands are successful with line extensions and in some cases lead their

categories, why is line extension bad? It does not create a strong enough spark between

74
Beckwith, p. 124.
75
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 49.
76
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 215.
77
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 46.
Copyright © 2007 Scott Hrdlicka 32

the brand and the consumer to jumpstart an action because the spark is often sent in more

than one direction. When a spark is sent in more than one direction, the ends of the spark

lose power. The strongest spark is focused. As a brand loses focus, it loses what the name

means in the mind of the consumer. When brands lose their focus, their sales and profits

often fall. In comparing the top 100 brands in Japan and the United States, the top three

Japanese brand names manufacture over 32 brands. In Japan, the first mega-brand is

Mitsubishi with 16 brands, Matsushita with 8 brands, and Mitsui with 8 brands. Sales

figures between the United States and Japan ring in close with the U.S. at $3.2 trillion

and Japan at $2.6 trillion. The difference in brand extensions does not truly exist in sales

volume. The difference in line extensions is in the profitability. One average between all

top 100 brands in each country the United States averaged profit at 6.2 percent of sales

and Japan at only 0.8 percent of sales.78

Price

“Any damn fool can put on a deal, but it takes genius, faith and perseverance to create a
brand.” – David Ogilvy
Pricing in marketing strategy frightens many of the most elite strategists. This fear

of pricing is common because of the fear that prices will become the focus of the

differentiating message, and the brand will loose its uniqueness.79 Price itself

communicates almost everything about a product or service, yet most businesses refuse to

discuss price in their marketing strategy. Several businesses today believe that price must

be as low as possible to represent “value” to the customer; yet lean margins kill almost

every business except for Wal-Mart. Aggressive pricing often is a trap in which the value

represented by the price itself begins to carry the connotation of “discount”. Price

78
Ries and Ries, 2002, The 22 Immutable Laws of Branding, p. 47.
79
Trout and Rivkin, p. 45.
Copyright © 2007 Scott Hrdlicka 33

strategy is directly responsible for brand growth or demise. Price often tells the prospect a

story and can silently tell the consumer more about the product or service than years of

publicity or advertising campaigns can tell them. It most cases, for services and products

alike, most consumers assume the higher the price, the higher the quality.80

When consumers see product in stores with a high price tag relative to similar

products, they often assume the higher price is for a reason. Their perceptions may

change, but ultimately, most consumers feel a better product commands a higher price.

Consumers often justify higher prices when they compare similar products. Commonly, a

brand leader or product of superior quality product commands a higher price. Price

communicates several attributes, including image, experience, prestige, and venue;

however, when used correctly, price can be the ultimate tactic in communicating quality

perceptions. To use price for advantage in marketing strategy, marketers must typically

throwaway most economic reasoning, especially when they are looking to command or

decipher what the market may bear. Marketers must forget what the existing market bears

and create their own markets and categories.

The price of a product or service can ultimately change consumer expectations,

how they perceive a brand, and, ultimately, their overall experiences. Consumers

typically appreciate low prices because a low price may be all the consumer can afford;

however, many consumers find ways to afford a higher priced product if they perceive

the added value. Although consumers welcome savings and value, then they tend not to

then appreciate the quality of a product. They assume if a product is discounted or low

80
Beckwith, p. 84.
Copyright © 2007 Scott Hrdlicka 34

priced, then the product or service “could be better.” Businesses should be aware of what

their pricing communicates to consumers about their products and services.81

Price Expectation and Experience

A flaw commonly found in marketing books today is the term “price resistance”

Many marketing books discuss price resistance only as a barrier to entry. Alternatively,

price resistance can also be an opportunity to entry. Businesses today must understand

that a high price for a product says the product is worth the additional money.82 In several

circumstances, a great deal of the population does not want to look frugal, and many

consumers like to look just the opposite. For example, in taverns some specialty taverns

carry rather exotic drinks and liquors from all over the world. When dining with friends

or family, many consumers like to show their great taste through product cost alone.

Imagine a bar that offers both $10.00 bottles of beer and $3.00 bottles. If a person were

trying to make an impression, the $10.00 bottle appears much more impressive to the

guests. The problem is does a $10.00 bottle of beer taste $7.00 better than a $3.00 bottle?

Probably not. How many times are drinks purchased in this manner, and everyone gathers

around asking to taste the high priced product? How often do consumers naturally

respond with “Wow, that’s good” or “Impressive. I’ve never had a $10.00 bottle of beer

before”? How many consumers would respond the same with the $3.00 beer? Would the

beer taste as good knowing it’s a $3.00 beer? Most likely, the response would be less than

impressive. Many people might not have any interest in a common $3.00 beer because

almost anybody can afford one. Additionally, some consumers may feel that a beer only

slightly higher priced, for example, at $4.00, may be superior based on price alone.

81
Beckwith, p. 79.
82
Trout and Rivkin, p. 55.
Copyright © 2007 Scott Hrdlicka 35

Price creates expectation of a product or service in the mind of the consumer. The

consumer sees an outlandish price and assumes there must be a reason to command such

a high price, and if they have extra money, the product might be worth trying. High

prices do a great deal more than tell a customer the product or service is better. They also

tempt consumers into trying the product or service.83 When consumers are not technically

informed of a product or service and its quality, typically, that with the highest price

commands the highest expectation from the consumer and represents the most value to

the consumer. Most consumers are very poor judges of quality and base their

expectations solely on other cues, such as price. The most obvious attribute to many

consumers is price.84

Price and Client’s Loyalty

Price influences the type of consumers the products and services will attract.

Discount prices obviously attract discount shoppers. High prices typically attract

customers looking for more than a product or service. This type of customer typically is

buying into an experience. Discount shoppers come and go to the next bargain on the

market and leave brands often without question. Customers that alternatively purchase

higher priced products and services find perceived value in the offering. This type of

customer typically does not fall under temptation to leave for another brand, for they are

buying more than a product or service: they buy into the culture. This connection is

where a brand’s spark actually gives motivation to users of that product. If all attributes

are the same, the higher price would make no sense, and a customer, not getting the

desired spark from a brand, would save his or her money.

83
Beckwith, p. 80.
84
Beckwith, p. 82.
Copyright © 2007 Scott Hrdlicka 36

Price Shoppers

Price shoppers are typically difficult to obtain for marketers today. The sad truth

about this type of client is that they are the most difficult to obtain and the easiest to lose.

This type of customer will research everything from production cost to delivery cost and

will haggle until they pay no more than cost for a particular product or service. Price

shoppers do not typically refer additional clients to a business, and if they do, they expect

the same bargain they received, thereby, resulting in loss for an organization.

Typically price shoppers perceive nothing more than face value of an item

because they are buying a price and not a brand or experience. Price shoppers typically

buy only one thing, the item’s price. They are generally not interested in a long-term

relationship with an organization, nor are they interested in the true quality of a product

or service.85 Most likely if a lower priced alternative to Wal-Mart were to arrive on the

market with better pricing, even most of Wal-Mart’s best price shopping clients would

leave. For every Wal-Mart that succeeds in the market, another hundred have failed using

discount pricing strategies usually because their customers are not loyal to a brand but to

a price tag.

Price shoppers are typically very poor judges of quality; if they were good judges,

they would not be shopping on price alone. Businesses should avoid targeting only price

shoppers because they represent no more than minor cash flow to an organization, based

on low profit margins required to attract such consumers.86 Typically, this type of client

is the first to complain of a product or service for which they paid little, ultimately

costing the organization further.

85
Beckwith, p. 85.
86
Beckwith, p. 85.
Copyright © 2007 Scott Hrdlicka 37

Price Promotion

Many organizations fall into a trap when attempting to over-expand. When many

brands begin to take off, marketers begin to line extend and forget what made them

successful. In attempting to gain new clients, marketers often discount the existing

product or service. The problems with such tactics are twofold. First, in discounting

existing products and services, customers will assume extra margin exists and the product

is not worth the original price. The second issue arises from price discounting is that

consumers are led to believe the product or service is overpriced when it is not available

at a discount price.87

Section Summary

In summary, the selection of brand categories, names, positions, and pricing are

crucial for brand success in developing the brand’s personality and identity. When

Sparkplugging a brand, marketers should pay careful attention during the planning and

the branding process to ensure consistency across all attributes of a brand’s dynamic

mental linkages.

After a firm defines the brand’s identity, the time comes to promote and take the

brand to market. Promotion of today’s new brands is rapidly changing and shifting

because of the over-proliferation in common media. The role of advertising and public

relations are also changing. Sparkplugging to jumpstart growth of a business or a brand is

difficult in today’s market; therefore, leveraging brand communication through a

combination of advertising, public relations, and the Internet will be essential for brand

growth in the future.

87
Beckwith, p. 87.
Copyright © 2007 Scott Hrdlicka 38

Chapter 2: Promotion

Advertising’s role in marketing strategy is undergoing a major revolution.

Advertising has evolved from the ultimate means of introducing new brands to a function

of sustaining a brand’s leadership position. The market today has become overcrowded

with the increase in the number of disruptive messages, thus, over-saturating the minds of

consumers. As a countermeasure, many consumers have subconsciously built up defense

mechanisms to avoid advertising’s disruptions; some consumers even subconsciously

block out entire advertisements, while others are now skipping 92% of television

commercials.88 With this over-saturation of advertisements, consumers have lost trust in

the messages told by markets. Many consumers today perceive advertising as one-sided

or self-fulfilling.89 Advertising once had the ability to sparkplug or jump-start brands;

now advertising’s role has shifted to that of brand maintenance. Few brands introduced in

recent years have achieved above-average returns or growth from advertising alone.

Small and medium enterprises have fallen victim to advertising agencies that use old

promotion tactics often found in large enterprises like Crest and Volvo. These agencies

still try to use advertising as a primary source to introduce and build their brands.

Today, firms looking to sparkplug their brands must understand one simple rule

for advertising: if large enterprises are doing something with their promotion, it is usually

the wrong thing for a business that hopes to sparkplug its brand. When Sparkplugging,

marketers should not attempt to act like large enterprises in their marketing messages or

ever claim that they want to market like them. An animal that is much smaller than an

800-pound gorilla but acts like one will be destroyed in minutes in the jungle, no matter

88
Neumeier, p. 22.
89
Neumeier, p. 21.
Copyright © 2007 Scott Hrdlicka 39

its orientation. Brands must focus on what they are and what they wish to become, not

pretend to be something they are not.

The Evolution of Advertising

Shortly after World War II, mass media advertising became the preferred channel

for building and introducing brands in corporate America. Much of this popularity traces

back to the introduction and popularity of television that exploded disruptive messages

across the country. Television enabled businesses to advertise and introduce their brands

quickly. When firms used the mass channels, the results were phenomenal. The

advertising usually created more revenue, an asset that could grow the brand rapidly. In

that period, almost all a company had to do to create some demand for the new product or

service was to run an ad on television. The reasons for such success via mass media

advertising were twofold. First, there were fewer programs and channels, and consumers

were not flooded as heavily with advertisements for new products. Advertisements were

a valid way for consumers to become aware of new brands. The second reason was that

of the power of messages told by advertisers was strong. They requested consumers to

take action. The best brands told compelling stories and asked for a call to action.90

By the early 1970s, the per capita expenditure on advertising was $110.00; today

the per capita expenditure is up to $865.00.91 Such an influx of disruptive messaging has

flooded the traditional communication media and reduced the effectiveness of advertising

media, such as television, print, and radio, all of which became the staple media for

almost all growing brands. Beside the common mass medium channels, today there are

90
Godin, 2005, All Marketers are Liars, p. 19.
91
Al Ries and Ries, 2002, The Fall of Advertising, p. 6.
Copyright © 2007 Scott Hrdlicka 40

also other alternative media, such as the Internet, which is rapidly changing advertising’s

role in marketing strategies.

In the aftermath of World War II, advertising entered its second era, which

focused on product attributes. In this era, companies essentially needed only to “build the

better mousetrap” and have some funding to back it. If the product appeared better or

improved when compared to its competition the product it sold. At this time, there were

fewer ads, which meant message retention overall was higher. The third era of

advertising occurred in the 1960s when it entered the image era, which dealt with product

or corporate reputation and less on the product itself. Today, advertising is in the fourth

phase, the positioning and category era. Organizations need to create unique positions in

the mind of the prospect because of over-communication and noise in the common

existing markets.92

Advertising Cost Trends

As of 2005, businesses in America spent over $230 billion on advertising.93 The

cost of mass media advertising appears to be immune from typical price decreases. As the

amount of exposure for an advertisement has decreased in the past few years, the rates

have continued to increase. For example, in 1972 a thirty-second Super Bowl commercial

sold for $86,000 and reached 56,640,000 consumers equating to a cost of $1.52 per

thousand. Today, the same ad costs $2,100,000 and reaches 88,465,000 consumers, at a

cost of $23.74 per thousand. In addition, the raw advertising costs of production for a

typical thirty-second TV advertisement costs around $343,000.94

92
Ries and Ries, 2002, The Fall of Advertising, p. 110.
93
Hughes, p.121.
94
Ries and Ries, 2002, The Fall of Advertising, p. 8.
Copyright © 2007 Scott Hrdlicka 41

The unfortunate news for new brands and businesses is that, today, consumers are

flooded with disruptive messages and the costs to send these messages are growing. For

example, in 1997 advertising expenditures were up 7 percent from 1996, in 1998 up 8

percent, and in 1999 up 10 percent. In 2002, U.S advertising expenditures exceeded $244

billion a year, almost catching the U.S defense budget in 2000 at $291 billion.95 This

annual advertising spending at $244 billion translates to $2.37 per person every day, most

of which is television advertising with a cost about $10 per thousand, or one cent per

person. The average consumer is exposed to 237 advertisements daily.96 With such

disruption to normal daily life, most consumers have trained themselves to

subconsciously ignore most traditional advertising. Advertisements that consumers retain

today remain commonly un-trusted. The content of the advertisements consumers see and

hear are a reflection of the lack of buzz about a product; therefore, commercials are used

to tell the new products’ stories.97

Although advertising prices are on the rise, so is the amount of advertising from

business. In 2005, businesses were expected to spend $279 billion, up 5.7 percent from

2004.98 Businesses are cluttering traditional media in any effort to be found in the over-

disruptive market. Fundamentally, marketing strategies must change for new and

emerging brands because consumers are finding new ways to avoid advertisements all

together.

95
Ries and Ries, 2002, The Fall of Advertising, p. 8.
96
Ries and Ries, 2002, The Fall of Advertising, p. 9.
97
Godin, 2005, p. 20.
98
Daniel Gross, August 2005, Birth of a salesman, Fortune Magazine, Vol. 152, No. 3, p. 40. A
copy of this article is in the student's possession and may be consulted by contacting the student at
hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 42

Consumer Perceptions of Advertising

One of the main issues with advertising today is that advertising itself lacks

credibility. 99 Consumers often view advertisements as one-sided self-fulfilling messages

attempting to fool them into a purchase. Before advertising flooded all mediums, people

used to read advertisements and discuss the brands with enthusiasm. Advertisements

were the way consumers were educated about new brands.100 Times have changed, and

with the average consumer unable to process all new communications from

organizations, many consumers subconsciously block out almost all advertising.

Over-saturation has hit almost every mass medium in today’s market. Old media

like TV, radio, and print have increased their advertising saturation because of their

decrease in popularity caused by the Internet. In doing so, media like TV, radio, and print

have increased advertising so greatly that some programs are almost all advertising. It is

estimated that 25% of all TV time is ad-related. Furthermore, most television shows get

one-tenth the ratings they did in the 1970.101 Advertisements today fill TV programs,

video games, and movies with ads or product placements in television programs, video

games, and movies, using product placements that function as indirect advertisements.

In modern times, advertising has become more disruptive than ever. Because of

this disruption, consumers are finding any way possible to avoid such messages. For

example, with the Internet, advertising new programs called “pop-up” blockers are

available for every web browser as a free download. Some advertisers have even gone to

the point of hijacking consumers’ PCs with spyware, small modules that track what

advertisements web browsers view and their responses to the advertisement.

99
Ries and Ries, 2002, The Fall of Advertising, p. 45.
100
Ries and Ries, 2002, The Fall of Advertising, p. 11.
101
Hughes, p. 120.
Copyright © 2007 Scott Hrdlicka 43

Advertising in an Overcrowded Disruptive Society

Although almost all of America’s 15,000 advertising agencies are still committed

to growing brands and businesses through disruptive advertising, almost all successful

new businesses used little to no advertising in developing their brands. Even more

shocking than the fact that almost all new successful brands have not used extensive

advertising budgets in growing their brands is the fact that most advertising agencies do

not advertise. Instead, they have become obsessed with building ad campaigns that will

generate huge amounts of publicity for their firms, a venture that, in turn, helps them to

grow their own identities. In a major market like Chicago, no advertising agencies pay for

any full color or even quarter page directory ads.102 Conversely, compared to the

computer section several advertisements can be found.103

Advertising agencies do not advertise because they know what they sell is no

longer effective, nor is it often worth the money spent. The age-old saying from CEOs

was one that the CEO wondered what half of their advertising was wasted. Now, many

executives are starting to wonder if not all of it is wasted.104 In a recent study performed

on executives by the American Advertising Federation, only 6.8 percent of companies

were very satisfied with their advertising efforts.105

Advertising for Brand Building and Brand Maintenance

Many marketing professionals confuse brand building with brand maintenance.

Brand building is a task of creating buzz for an organization in order to develop a

trustworthy story the prospect believes and retells about a brand. With the exception of

102
SBC Yellow Pages, 2005, Chicago: Since 1886 (Chicago, IL: R.H. Donnelley Publishing &
Advertising of Illinois Partnership.), p. 25.
103
SBC Yellow Pages, p. 339.
104
Trout and Rivkin, p. 39.
105
Trout and Rivkin, p. 39.
Copyright © 2007 Scott Hrdlicka 44

few companies and markets, many marketers today are beginning to use only publicity to

introduce their new brands. Brand maintenance is about protecting the position of

leadership by increasing the barriers of entry. When a brand has achieved leadership by

utilizing techniques of brand focus and growth communication via public relations,

advertising category leadership is typically advisable. A short list of organizations that

have grown enormously without advertising in their early stages include Microsoft,

Subway, Starbucks, and Wal-Mart.106 Although these organizations now advertise, they

do so as a brand maintenance function because their brand positions have become that of

the category leader, which is one exception and a valid reason to advertise. Advertising

increases the barriers of entry to competitors in the same or similar category.

Organizations should consider advertising like a country’s defense budget that

allocates resources into the program for the brand’s protection. Using advertising for

brands should be used only to protect an organization from losing market share, not to

gain market share by extending the name across categories. Advertising is the best

defensive attack by category leaders because it raises the barriers of entry for competitors

in their category. Although publicity today has the best potential for business and brand

growth, eventually there is not much new to talk about. At this point, the advertising

engine starts to churn. Advertising and publicity have separate but equal functions today;

however, organizations must understand when to use each of these functions. The general

rule today is first publicity and then advertising.107

Advertising today is solely for category leaders. Advertising leadership should be

used to defend the leaders’ positions and to increase the barriers of entry into their

106
Ries and Ries, 2002, The Fall of Advertising, p. 14.
107
Ries and Ries, 2002, The Fall of Advertising, p. 18.
Copyright © 2007 Scott Hrdlicka 45

categories. Advertising should be reserved for category leaders because it is expensive.

For example, Super Bowl ads today start around $2 million, but without category

leadership, an organization is forced to focus advertising on product attributes only.

Advertising category leadership should be bold because the leadership statement of

leadership is one that creates assumptions by consumers. When the consumer makes

assumptions of product superiority because of perceived leadership, this perception

ultimately induces favorable feelings toward the brand by the consumer. The following

are examples of category leaders advertising leadership:

• “Heinz, America’s favorite ketchup” – Heinz


• “So easy to use no wonder it’s #1” – America Online
• “Budweiser, king of beers” – Anheuser-Busch
• “Coca-Cola, the real thing” – Coca Cola
• “Visa, it’s everywhere you want to be” – Visa
• “Goodyear, #1 in tires” – Goodyear108

The reasoning behind advertising leadership is that almost everyone shares the

perception that a superior product will succeed in the marketplace. When consumers see a

leader, they assume most individuals want the best product; therefore, the leader must be

the best choice. Another assumption that validates advertising leadership is that many

consumers believe that an organization will not advertise a substandard product. If the

product is #1, it must be the best. When category leaders fail to use leadership as the

primary attribute in advertising, success of a campaign often diminishes. Typically, this

failure is caused by the market research conducted by the organizations. This research

usually provides the firm with the following results:

• Customers do not buy a brand only because it is the leader.


• Customers are not loyal to a brand and can be persuaded by price.
• Customers want the same products but bigger, better, faster, and cheaper.
• Customers want more features; show them the benefits of the features.
108
Ries and Ries, 2002, 22 Immutable Laws of Branding, p. 19.
Copyright © 2007 Scott Hrdlicka 46

What typically happens after such research is that advertising departments compile all

this data and find that the customer said “They do not buy only because a product is a

leader,” so they focus advertising efforts on product attributes instead of category

leadership. The practice of using a firm’s examination of sales data or consumer behavior

instead of the marketing research often leads to the advertising of category leadership.

Watching and living with consumers typically contradicts communication tactics

recommended by market research. When researchers observe consumer behavior and ask

customers why they purchase a particular product, although it may cost more or be

positioned next to a generic or store brands, the common response is, “Because it’s

better.”109 Leadership creates expectations in the mind of consumers. Advertisers today

must understand that leadership is an attribute that tells more than sales figures to

consumers. It tells them a story that the product is superior.

Advertising Product Introduction, Case Study: Crest WhiteStrips

In 2001, Proctor & Gamble, the creators of Crest toothpaste, decided to introduce

a new product, Crest WhiteStrips, to the market using mass media advertising. The

campaign budget of $90 million, was all for use in traditional mass media disruptive

advertising. P&G reserved $40 million for TV and print advertising alone.110

WhiteStrips to date has achieved moderate success according to IRI sales reports

from March 18, 2005: with $49 million in sales in 2004 (not including Wal-Mart).111 In

developing WhiteStrips, Crest made two major mistakes. The first mistake was that the

Crest line extended the Crest toothpaste brand name. At this point, the strength in the

109
Ries and Ries, 2002, 22 Immutable Laws of Branding, p. 21.
110
Ries and Ries, 2002, The Fall of Advertising, p. 112.
111
Ries and Ries, 2002, The Fall of Advertising, p. 112.
Copyright © 2007 Scott Hrdlicka 47

Crest toothpaste name diminished because the name Crest has another category of

product using its brand name. Second, Proctor & Gamble relied heavily on classical

advertising. For the same $90 million at $44 per unit; they could have sent 2,045,454

sample packages to every news reporter in the United States and created nationwide

trusted product buzz almost overnight.112 After all, most consumers do not trust what they

read in advertisements, because they often feel advertising is one-sided.113 If a product is

worth talking about, consumers usually feel it is worth trying.

Many of the advertisements used in the campaign for WhiteStrips offered no true

reason to try the new product. Instead, Crest relied on advertising with celebrity

endorsement to introduce the brand and to create trust commonly found when using

publicity.

112
Ries and Ries, 2002, The Fall of Advertising, p. 112.
113
Ries and Ries, 2002, The Fall of Advertising, p. 11.
Copyright © 2007 Scott Hrdlicka 48

Figure 2.1: Crest WhiteStrips Advertisement.


SOURCE: Ad Flip LLC, 2005, Crest WhiteStrips Advertisement [Internet, WWW,
Computer program], ADDRESS: www.adflip.com [Accessed: 7 October 2005].

In launching its campaign, Crest spent a lot on advertising and focused little effort

on public relations. Doing so has cost the organization ownership in whitening products.

Instead of introducing the brand with PR, Crest introduced it with advertising that created
Copyright © 2007 Scott Hrdlicka 49

a buzz for whitening products as a whole, thereby, benefiting the whitening product

category with their $90 million in advertising that started in 2002. The Chicago Tribune

reported that sales of products with “whitening” in the name jumped 22 percent to $570.3

million, in the year 2002. On average, the brands that failed to jump on the whitening

curve all together saw their sales drop 10.5 percent to $780.1 million.114

Looking at sales data across the category, it appears Crest and their $90 million

dollar budget did not effectively introduce the brand Crest WhiteStrips; instead, Crest

shook the industry with buzz about teeth whitening and promoted this new category. The

growth of the new whitening category has created financial gain for P&G; however, it

has also attracted many “me too” competitors. The pharmaceutical company, Pfizer Inc.,

recently introduced Trident White gum that also claims to whiten teeth. P&G recently

teamed up with Wm. Wrigley Jr. Co. to produce confectionery products with oral-care

benefits.

In summary, P&G achieved fair sales success with their advertising and category

creation with the WhiteStrips product; however, because they used advertising as the

product introduction medium, they created more buzz about the whitening category in

general. The advertising funds did more for the whitening category than it did for the

Crest product.

Advertising Brand Maintenance

Of the 15,000+ advertising firms in the United States, almost all will tell

businesses the only way to build a brand is through advertising; however, these claims

114
WOAI, 2002, Teeth whiteners cleaning up in oral-care business [Internet, WWW, Computer
program], Available: WOAI, 1031 Navarro Street, San Antonio Texas, 78205; ADDRESS:
http://www.woai.com/guides/beauty/story.aspx?content_id=82A5A0A0-51D2-45A4-ADC0-
3AADA1E2EAC9 [Accessed: 18 February 2007]. A copy of this article is in the student's possession and
may be consulted by contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 50

could not be further from the truth. With Sparkplugging, advertising is not about building

brands, and alone, it is not about creating spark. The era of brand building and creating

spark with advertising alone is over. Advertising today is about maintaining the brand’s

position and mind share. Advertising is not a shortcut; it is for brand maintenance after a

brand achieves category leadership. Advertising’s role is now to continue what public

relations campaigns started. It should deliver the same messages delivered by the public

relations campaign. Advertising should reinforce all the ideas and concepts from the

public relations campaign and maintain the consistency of the message. When the

publicity about a brand is over, the strategy should shift from public relations to

advertising.115

When brands grow up, there is simply not much for consumers to talk about. At

this point, the consumers are already aware so the publicity engine takes a back seat to

advertising. Mature brands, like Coke, cannot run any more publicity campaigns about

their innovation of cola. Everyone knows Coke invented cola; however, Coke should

remind consumers and advertise, as they have in the past by stating their leadership, that

they are “the real thing.” The real thing reminds consumers that Coca-Cola is the leader

and that they invented cola; therefore, it must be the best. When leadership is

communicated consumers are reminded that everything else is an imitation of Coca-

Cola.116

Reminding, educating, deepening, and protecting are reasons to advertise an

existing brand. Advertising reinforces leadership in the category and reminds the

consumer why the brand is the leader. Advertising can also work to generate buzz among

115
Ries and Ries, 2002, The Fall of Advertising, p. 197.
116
Ries and Ries, 2002, The Fall of Advertising, p. 203.
Copyright © 2007 Scott Hrdlicka 51

leaders again. It is proven, especially with higher priced items, that consumers who

already own a product will pay more attention to the ad if they already own the

product.117 Leadership is the most important of attributes because consumers know that a

superior product will lead or win in the marketplace. Leadership enforces creditability.118

Beyond leadership, the attributes used in adverting must stay consistent with

previous perceptions of the brand developed from public relations, reassuring the

prospect of what they know and believe. Consumers, like everyone else, do not like being

wrong. Advertising new attributes of a brand will dilute the brand and subsequently tell

the consumers their initial perceptions of the brand were wrong. Consumers do not like

being told they are wrong.

Advertising Brand Image Changes and Line Extension

Unfortunately, when brands mature from the brand building using public relations

to advertising, many organizations forget what got them there. More times than not, an

organization will begin to look at the strength of a brand and decide to broaden the scope

or extend the line. In a perfect world, this move would be the perfect reward to a brand

for succeeding. Unfortunately, advertising does not have the power to change minds or

can it change brands. Judging the strength of a brand name is within the position in the

mind of the prospect. Advertising cannot replace an existing perception with a new

perception. Advertising can only support the existing position in the mind of the

consumer. Advertising can deepen the perception, not broaden perception.119

117
Emanuel Rosen, 2002, The anatomy of Buzz: How To Create Word-of-Mouth Marketing (New
York, NY: Doubleday), p. 208.
118
Ries and Ries, 2002, The Fall of Advertising, p. 202.
119
Ries and Ries, 2002, The Fall of Advertising, p. 200.
Copyright © 2007 Scott Hrdlicka 52

A short list of those that have line extended or attempted to change brand image

with advertising include the following:

• Nike shoes, Nike Golf Clubs.


• Nike shoes, Nike Hockey Skates.
• Nike shoes, Nike clothing.
• Country Crock butter, Country Crock instant potatoes
• Chevrolet Cars, Chevrolet Small Cars “Chevrolet Chevette”
• Chevrolet Cars, Chevrolet Geo Metro
• Heinz ketchup, Heinz salsa
• Oldsmobile, “It’s not your fathers Oldsmobile”
• IBM Mainframes, IBM PC’s
• IBM PC’s, IBM PC Jr.
• Mercedes Benz luxury sedans, Mercedes Benz Sports Cars
• Xerox Copiers, Xerox Mainframe computers
• Volvo safe family sedans, Volvo Sports Cars “The ReVolvolution”120

Case study: Volvo, The ReVolvolution

In the case of Volvo, its previous public relations and advertising campaigns (see

figure 2.4) promoted safety. Safety was the attribute Volvo owned in the mind of the

consumer, and the company was highly successful promoting this attribute. However,

after all the public relations and supporting advertising from Volvo on safety, which they

owned in the mind of the consumer, the company’s marketers changed their minds and

started the Volvo ReVolvolution.

Many brands fall into this trap. Instead of reinforcing what the brand stands for,

several organizations start looking around for new, fresh ideas. These organizations either

internally develop what they wish they could have been, a new creative idea the

advertising agency, or the organization features just another poor CEO trying to make a

name for himself/herself. For example, Volvo owned the word and categories of

“automobile safety.” Figure 2.2 below promotes this idea, and was moderately

successful.
120
Ries and Ries, 2002, The Fall of Advertising, p. 216.
Copyright © 2007 Scott Hrdlicka 53

Figure 2.2: Volvo Safety Advertisement.


SOURCE: Ad Flip LLC, 2005, Volvo Safety Advertisement [Internet, WWW, Computer
program], ADDRESS: www.adflip.com [Accessed: 7 October 2005].

In the early 2000’s Volvo decided they want to make sports cars. At this time,

Volvo shifted their brand identity from safety to sports cars as displayed to the ad in

figure 2.3 “The Volvo ReVolvolution”.


Copyright © 2007 Scott Hrdlicka 54

Figure 2.3: “The Volvo ReVolvolution”.


SOURCE: Ad Flip LLC, 2005, The Volvo ReVolvolution [Internet, WWW, Computer
program], ADDRESS: www.adflip.com [Accessed: 7 October 2005].

Safety and sports cars do not go together, and the Volvo name in the mind of the

prospect now has been diluted to the point where it means almost nothing. Volvo decided
Copyright © 2007 Scott Hrdlicka 55

to advertise polar opposites and almost destroyed its safety identity.121 If a consumer

were to ask any insurance agent if he know of any safe family vehicles created on the

notion that “a 247 horsepower turbocharged engine that can get four hearts racing as

easily as one,” he would laugh. How has such a change affected Volvo’s sales? Consider

the market for those people who shop for safe vehicles (think of the five million soccer

moms in the market) and those shopping for sports cars. With annual sales in America

just over 100,000 vehicles a year in 2001, Volvo would have been best advertising safety

to the five million soccer moms. Looking for a modest 10 percent saturation in this

category, Volvo would have achieved five times the sales. Sales into this category may be

much easier as Volvo already owns the safety position in the prospects’ minds. Instead of

trying to change minds of consumers into believing that it was now sporty and fast,

Volvo should have maintained its spark with safety. Starting mid-2005, Volvo shifted its

advertising and positioning back to safety, validating that no amount of advertising can

change the mind of prospects and that organizations should stay in the same position.122

Advertising and Creativity

Several advertisements created today are often ineffective because understanding

what the advertisement is attempting to sell is difficult to understand.123 Advertising

agencies have evolved since the 1950s when they were effective because there was much

less noise and consumers perceived truth in advertising. In the 1960s advertising

continued its successes with the use and development of the unique selling proposition by

an advertising agency chairman named Rosser Reeves. Reeves defined the unique selling

proposition into three parts:

121
Ries and Ries, 2002, The Fall of Advertising p. 198.
122
Ries and Ries, 2002, The Fall of Advertising p. 201.
123
Trout and Rivkin, p. 37.
Copyright © 2007 Scott Hrdlicka 56

1. Advertisements should make a proposition to the consumer. It should not only be


words, images, or self-promotion, it should communicate to the reader “Hey, buy
this product and you will get this specific benefit.”
2. The proposition must be a different than what the competition is offering, or
different than anything the competition has the ability to offer. The proposition
should be a unique trait, claim, or attribute of the brand. This claim should be
unique from all others in the category’s advertising.
3. It must be so strong that it can pull the target market to the product.124

Presently, most advertising firms refuse to use what has worked in the past

because they feel campaigns of the past often lacked creative expression or were too

aggressive and intrusive. A problem is that advertising today has become too creative and

fails to inform the prospect and fails to ask for the prospect’s action. Many marketers are

afraid to ask for action in their advertising and have instead used creativity in their

advertising. The problem with this behavior is that it often seems to make the advertising

itself famous instead of the brand.125

In modern times, many marketers are using advertising as entertainment in an

attempt to fool consumers into watching their ads. Marketers now do this because they

know many consumers feel advertising is just something they must put up with in order

to view their favorite shows or read their favorite articles, and this method if successful

will keep the consumer watching instead walking away.126 Advertising agencies know

consumers feel this way so advertising has evolved into creative entertainment to appear

as less of a disruption. Several firms every year have great entertainment advertising;

however, creative advertising does not offer unique selling propositions and, thus, often

fails to increase or maintain sales. The problem with creative or entertainment-based

advertising is that while consumers are entertained, the advertising itself does not

124
Trout and Rivkin, p. 12.
125
Ries and Ries, 2002, The Fall of Advertising, p. 27.
126
Ries and Ries, 2002, The Fall of Advertising, p. 24.
Copyright © 2007 Scott Hrdlicka 57

increase sales, nor do consumers typically recall the brand message of the advertisement

because their minds are busy being entertained and not being sold on a product or asked

to take action.

Case Study: Nissan

In 1996 Nissan launched a creative advertising campaign, later called by Ad week

as “the most talked about ad campaign in 1996,” Adage’s “The Best Award,” Time

magazine’s “#1 commercial of the year,” and Rolling Stone Magazine’s “Best

Commercial.” It even ranked in Entertainment Weekly’s “Top 50 Commercials.” 127

The Nissan toys commercials featured dogs, dolls, and a smiling Japanese man with

a tagline at the end, "Enjoy the Ride." One commercial had an action figure pick up his

Barbie look-alike date in a toy car while playing Van Halen's "You Really Got Me." This

ad campaign cost Nissan about $330 million.128

Figure 2.4: Nissan Toys Advertisement.


SOURCE: Forbes.com, 2001, Speed Bump [Internet, WWW, Computer program], Available: Forbes.com,
90 5th Avenue, New York, NY, 10011; ADDRESS:
http://www.forbes.com/forbes/2001/0430/113.html [Accessed: 18 February 2007].

127
Nissan North America, 2005, Nissan Corporate: Heritage [Internet, WWW, Computer
program], Available: Nissan North America, 333 Commerce St., Nashville, TN, 37201-1800; ADDRESS:
http://www.nissannews.com/corporate/heritage/nissan_heritage.shtml [Accessed: 18 February 2007]. A
copy of this article is in the student's possession and may be consulted by contacting the student at
hrdlicks@msoe.edu.
128
Forbes.com, 2001, Speed Bump [Internet, WWW, Computer program], Available: Forbes.com,
th
90 5 Avenue, New York, NY, 10011; ADDRESS: http://www.forbes.com/forbes/2001/0430/113.html
[Accessed: 18 February 2007]. A copy of this article is in the student's possession and may be consulted by
contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 58

With credentials and awards supporting the creativity of campaign from Time

Magazine and Ad week, the ad, however, failed to sell any Nissans. The same year the ad

ran, Toyota’s sales increased by 7 percent; Honda by 6 percent; and the industry average

sales growth were up by 3 percent. Alternatively, with such a highly publicized

campaign, Nissan was down by 3 percent.129 Shortly after the ads began their run,

Nissan’s sales declined despite the mass success of the commercials popularity.

That same year, Nissan posted a $518 million loss in North America for its fiscal

year, which ended in March 1998. By 1998, the dealerships finally had enough and

wanted to see the actual vehicles return to the forefront of the company’s advertising. The

campaign ended in 1998 with much rejoicing from frustrated dealerships. At this point,

Nissan had also fired the ad agency.130 Later, when confronting members from the

advertising agency, which still received recognition for creative excellence in advertising,

the agency responded with “We don’t design the cars.” By this time, Nissan USA cut 450

white-collar jobs, or 18 percent of their white-collar workforce. Practically forced out the

door, Nissan’s president left for another opportunity.131

Creativity and Animals Ads

A new creative trend in advertising is to include animals in advertisements. The

logic is that people like animals; therefore, cute and funny animals must help get the

consumers’ attention. Figure 2.5 shows a short list of animals in advertising and the

results of the attention.

129
Ries and Ries, 2002, The Fall of Advertising, p. 27.
130
Forbes.com, 2001.
131
Ries and Ries, 2002, The Fall of Advertising, p. 27.
Copyright © 2007 Scott Hrdlicka 59

Company Animal Result


Taco Bell Chihuahua Chihuahua breed popular
Energizer Bunny Energizer Bunny became famous
Pets.com Dog Sock Puppet Famous Sock Puppet
Budweiser Frog Frog Famous
Geico Gecko Famous Gecko
Coca-Cola Polar Bear Polar Bears “Cute”

Figure 2.5: Animal Advertising and the Result.

In Sparkplugging a brand, the function of advertising is to reinforce or maintain

the existing perceptions in the prospects’ minds.132 No level of creativity can work as

well as raw facts offering a consumer a true reason to buy. For example, review the

slogan used by Tylenol: “Tylenol is the pain reliever hospitals use most.” Most

consumers believe that Tylenol must be better because hospitals use it most. This ad is

not creative nor does it feature cute, funny animals; however, it is effective because it

boldly states the leadership Tylenol owns in the pain reliever category.133 As a result,

Tylenol continues to sustain leadership in the pain reliever category.

Creative advertising tends to sell the prospect on the organization’s advertising

versus the product or brand. For example, years ago Coca-Cola placed an advertisement

with polar bears around the holidays. The result? Consumers loved the ad, but it didn’t

sell any more Coca-Cola. Creative advertising is expensive from a design standpoint and

more often than not does not pay for itself in sales revenue. When Sparkplugging a brand,

advertising is and should be reserved for those maintaining leadership in a category and

not for those trying to become category leaders.

No matter how enjoyable, entertaining, creative, funny, or clever the ad, the

message typically is lost when advertisements become too creative, cute, or entertaining.

132
Ries and Ries, 2002, The Fall of Advertising, p. 204.
133
Ries and Ries, 2002, The Fall of Advertising, p. 204.
Copyright © 2007 Scott Hrdlicka 60

True advertising value is brand retention. Consumers have difficulty retaining the

message of an ad when advertising becomes to creative because the creativity drowns the

selling proposition. An effective Sparkplugging advertisement it must be direct and

creditable, not creative and passive-aggressive.134

Public Relations

In many organizations, the public relations team takes a backseat to the driving

force of the advertising department. Such a structure for Sparkplugging brands is

problematic because public relations departments are those that should be in the driver’s

seat of brand building and creating awareness. Public relations, unlike advertising, are

typically viewed by consumers as a trustworthy source of information because consumers

often view advertisements as one-sided. The public relations function today is to build a

brand’s awareness through relevant, non-disruptive channels, like word of mouth and

other story telling means across news media and the Internet.135

When marketers started researching the power of public relations, they began by

looking at how consumers communicated about products or services. They found that

when consumers shared their stories, these stories would help the consumer reinforce the

brand’s association in the consumer’s mind. 136 Consumers speak about the product or

service from their points of view, and when these stories are shared, they carry emotion,

use of the product or service, and creditability. Sparkplugging uses public relations for

brand introduction and brand building because consumer channels using word of mouth

134
Ries and Ries, 2002, The Fall of Advertising, p. 30.
135
Richard Laermer, 2003, Full Frontal PR: Getting People Talking About Your Business, Your
Product, or You (New York, NY: Bloomberg Press.), p. 211.
136
Iris Mohr, and Larry Chiagouris, July/August 2005, “Get the Word Out,” Marketing
Management Vol. 14 Issue 4, p. 52. A copy of this article is in the student's possession and may be
consulted by contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 61

are more trusted and can spread faster on a much lower budget than conventional

advertising.

Many executives today still choose advertising as a quick effort to introduce or

build brand awareness; however, surveys performed by the American Advertising

Federation show that only 6.8 percent of these executives were satisfied with their

advertising efforts.137 Considering advertising is changing, many executives are electing

to use public relations to introduce new brands. Several organizations have introduced

and built their brands, products, and services primarily with public relations. A short list

of some of these firms includes Microsoft, Ikea, and Starbucks.

It can be said that the birth of the Internet is killing the disruptive advertising

media, such as television, radio, and print. Today, what is commonly known as word-of-

mouth or buzz travels worldwide in seconds through the Internet. The Internet has

connected consumers, allowing them to share their opinions, which are accessible to

anyone in seconds. Unlike advertising, public relations have adapted to the changes in

technology; however, in the case of public relations, technology has enhanced the need

for publicity when building and communicating brands. Advertising once drove the

public relations cart. Today, public relations are changing advertising with live online

news reporting, blogs, and pod casts.

Forms of Public Relations

Publicity campaigns appear in several forms, including word-of-mouth, analyst

meetings, product or beta testing, crisis management, special events, wire services,

interviews, media tours, press releases, surveys, and press conferences. In addition to all

the forms listed, there are specific tactics marketers can use to land or increase exposure.
137
Trout and Rivkin, p. 39.
Copyright © 2007 Scott Hrdlicka 62

These include exclusivity, embargos, and information leaks. It is common for marketers

to integrate several of these tactics into successful publicity strategies.

The PR Hook

After a firm chooses the media for its publicity campaign, the next challenge is

creating interest in the organization’s story. To peak the interest of consumers and

journalists, organizations must have a clear and catchy story hook. In short, hooks are

simply the shortest reason why a journalist or consumer should pay attention to the

message in the first place. They can be compared to the subject line of an email because

their time for acceptance is short.

When crafting a compelling hook, organizations can use several tactics from

looking at their own previous releases to scoping out their competition. Understanding

what the competition is doing does not mean an organization must understand every

move a competitor is making. Instead, it is often more valuable to know what they are

doing wrong.138 Other times, organizations can look inside their organization for bad

news or problems. Even bad news can make a great story for awareness if it’s presented

properly. Journalists are often highly attracted to stories that have a clear problem that

needs to be resolved.139

The Pitch

When pitching a story, the first step is to make initial contact with an email, letter,

or phone call in attempt to contact the journalist. Public relations communications are

similar to sales because the business must sell the journalist on why the story is

newsworthy. The job of public relations is purely to sell the journalist on why the story is

138
Laermer, p. 78.
139
Laermer, p. 78.
Copyright © 2007 Scott Hrdlicka 63

worth telling and to get the greatest amount of exposure for their story. Understanding the

background of the journalists, topics they cover, and how to approach them is the first

step in the story pitching process.

After completing the research of finding out all background information about the

journalist, including their interests, the organization must have a clear and solid pitch to

sell.140 The task of public relations is to develop a compelling story, one that people want

to share, one that is uniquely consistent and can capture the imagination of an audience.

Public relations stories should be consistent and simple and fulfill some want that is

satisfied by the organization’s product or service. The stories should fulfill this want in an

exceptional way that entices consumers to want to share the story. Public relations

commonly open more room for exaggeration by consumers. The benefit is that

consumers take ownership when they retell the story. Stories marketers manifest and

deliver through publicity channels are commonly more trusted than advertising.141 As

brands develop and take on a leadership positions, it is important to control more details

in storytelling. Spelling out all details for established brands when possible is important

to maintaining the brand’s image.

Eight Rules of Pitching

• Do not bribe journalists. To get media coverage, a business should not have to,
nor should they, bribe a journalist. They should not send thank you gifts or cards
to the journalists for covering their stories. When a journalist writes a story, they
are doing their jobs and the story is their obligation when reporting on the
news.142
• Find a unique spin. Reporters are paid to report news; however, most want new
and unique stories to print. Some publications will only take the story if they are

140
John Guinlven, July 2005, “PR Professional, Not Telemarketer, The Do’s and don’ts of
pitching,” Public Relations Tactics Vol. 12, Issue 7, p. 6. A copy of this article is in the student's possession
and may be consulted by contacting the student at hrdlicks@msoe.edu.
141
Godin, 2005, p. 79.
142
Laermer, p. 116.
Copyright © 2007 Scott Hrdlicka 64

the first to feature it. If a similar story appeared in another publication, find a
different way to twist the story. Few journalists are interested in old news.143
• Always on record. When a business does not want something printed, they
should not say it at all. Many people like to attempt to strengthen their
relationship with journalists by adding information off the record. The problem is
that this “off the record” information is often found printed later. This is because
journalists do not have to honor “off the record” statements. The job of the
journalist is to report news.144
• Watch the length of the pitch. Many business professionals write in letter
format. Although the pitch may look good in a lengthy letter, it is often better to
respect the journalist’s time with communication that is direct and to the point.145
Direct communication also helps to reduce errors.
• Like advertising, have a call to action. Similar to news headlines, or
advertisements, marketers should have a call to action or a reason for a journalist
to take interest in what the story is about. The subject line is the perfect place for
calling the journalist to action.146
• Next question. Terrell Owens has not had much success with this and neither do
marketers. When businesses reply with “No Comment” or “I don’t know” this
type of reply appears incriminating. Business professionals and marketers are
better to reply with comments like, “Let me check on that,” or “I’m not sure, I’ll
get back to you.”147
• Remove techno jargon and buzzwords. Industry-specific terms and buzzwords
will send the average reader into OZ. Even the New York Times is written at a
comprehension level for an eleven year old reader. Keep the message simple so
everyone can understand the proposition.148
• Respect the time and pressure on a journalist. Many journalists are under
extreme time constraints. Phone calls should be quick and acknowledge the time
pressure journalists are under. The better a marketer takes care of a journalist, the
better the journalist will take care of the marketer.149
Quantifying Public Relations

Like any marketing function, businesses like to know what amount of the funding

going into a program is producing results. In the public relations sector, measuring

143
Laermer, p. 119.
144
Laermer, p. 121.
145
Guinlven, p. 6.
146
Margo Mateas, July 2005, “Advice on Pitching and working with the media.” Public Relations
Tactics Vol. 12, Issue 7, p. 7. A copy of this article is in the student's possession and may be consulted by
contacting the student at hrdlicks@msoe.edu.
147
Laermer, p. 121.
148
Laermer, p. 123.
149
Guinlven, p. 6.
Copyright © 2007 Scott Hrdlicka 65

common results can be somewhat difficult. Public relations take much more time than

advertising to produce results, and with public relations, results simply do not happen

overnight. Publicity messages are for long term and introductive communications, not as

a quick marketing fix.150 Businesses running publicity campaigns must first educate the

organization that the publicity campaign is fundamentally different than advertising.

To begin quantifying any publicity campaign’s success or failure, organizations,

in developing their programs, should set objectives that correlate to their corporate

objectives.151 When the objectives for a publicity program are clear, organizations can

use the following measurements to better gauge the success of their programs:

• The number of stories appearing in key publications.


• The number of people that attend a special event.
• Number of press releases appearing in online media.
• The increase in web traffic, quantified by linking sources in reporting.
• The money saved compared to an advertising campaign with similar exposure.
• Number overall number of consumers exposed to the brand by the program.152

Overall, public relations offer an alternative to disruptive business communication

and bring much flexibility to an organization’s communication strategies. Today, as other

media, such as conventional advertising, have become evermore saturated, publicity

offers organizations a solid foundation on which to build brands or a valid support

integrated into their advertising campaigns. When Sparkplugging, marketers should not

150
Laermer, p. 210.
151
Kerry Martinek, July 2005, “Safeguarding your PR measurement budget: How to effectively
show value,” Public Relations Tactics Vol. 12, Issue 7, p. 20. A copy of this article is in the student's
possession and may be consulted by contacting the student at hrdlicks@msoe.edu.
152
John Pilmar, July 2005, “Small business? How to measure for success,” Public Relations
Tactics Vol. 12, p. 23. A copy of this article is in the student's possession and may be consulted by
contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 66

become over involved in quantifiable metrics either, using methods of measurement, or

of market research. Instead they should understand proper usage of both options.

Marketing Research

With thousands of marketing research firms in the United States. Marketing

research as a practice has been well accepted for years, however widely accepted

marketing research is one of the weakest tools a Sparkplugging brand can use when

exploring the new brand or market. In Sparkplugging, the fundamental problem with

marketing research is that observation alone affects behavior of people. The Hawthorne

plant studies first proved this idea by proving that the changing of light intensity alone

affected worker productivity because the workers felt the attention paid to them.

When organizations use direct surveys and focus groups the results are weak, at

best, for a few reasons. First, when clients feel like guests, they are not likely to insult a

brand; therefore, they will commonly give an average rating at worst. Secondly, when

prospects are directly surveyed, employees are aware and their behaviors change, thereby

affecting the overall customer experience. For this reason, direct surveying often

produces worthless results. Both parties are aware of the research and their behavior

changes.153

Written surveys tend to produce misleading data because most written surveys

contain hypothetical questions. Such hypothetical questions are those that also contain

hypothetical time and money. This research commonly produces results about what

consumers may do with hypothetical time and money, but it has little to do with how

consumers will spend in reality.

153
Beckwith, p. 7.
Copyright © 2007 Scott Hrdlicka 67

The second issue with written surveys is that they often contain “Would you like”

questions. The common “Would you like” questions usually deal with highly innovative

products that the subject does not understand and produce two typical results. The first

common result in this case takes place when the subjects have no idea what the idea is,

much less whether or not they would like it. Many consumers have limited imaginations;

therefore, survey results on innovative products or services are typically misleading

because most responders answer with “no,” and “no” is not a very meaningful answer.154

The second reason surveys of this type produce misleading data is that the more

innovative the idea, the more uncomfortable the respondent will feel. Most people resist

change, and because they resist change, they will often resist the idea.155 Did any

consumers know they wanted an iPod before the product was released?

Finally, researchers often tend to find what they are looking for, no matter of the

method or sample. When research has a predisposition or is looking for particular

information, it is often found because researchers lose their ability to see other

information from the research, especially information that could contradict or draw other

conclusions. Research simply confirms most biases and convictions hiding the truth.156

Research often supports average ideas and stops great ideas. The more rejection from

research, often, the more potential success for the idea.157

Section Summary

Sparkplugging a new brand on a limited budget is a difficult task. Many large

firms fail with huge budgets, so the odds are against sparkpluggers. Marketers and

154
Beckwith, p. 10.
155
Beckwith, p. 11.
156
Beckwith, p. 8.
157
Beckwith, p. 11.
Copyright © 2007 Scott Hrdlicka 68

business professionals Sparkplugging brands must keep focus on their category and

remain consistent in introducing the new brand. Public relations are a great tool to tell a

story that can travel at the speed of light in modern times via media like the Internet. In

developing the promotion strategy while Sparkplugging, it is important to remember that

the return on investment when funds are allocated using advertising versus public

relations.

The next section, Internet marketing, introduces a set of best practices and the

relevancy of the Internet when building, promoting, and Sparkplugging a brand. The

Internet offers great opportunity for brands looking to jumpstart their existence and

almost immediately allows small firms with fixed budgets global visibility. When

Sparkplugging, the Internet, like most media when Sparkplugging, takes laser focus and

introduces risks; however, the Internet can be the best friend of a new brand when

executed correctly.
Copyright © 2007 Scott Hrdlicka 69

Chapter 3: Internet Marketing

The birth of the Internet in the early 1990s has fundamentally changed the way all

businesses compete. The Internet is now creating a paradigm shift in advertising for

businesses and their brands.158 The Internet has empowered consumers with mass

amounts of information at near the speed of light, and at the same time cluttered their

worlds with more disruptive marketing. Research varies today, but it is estimated that the

average consumer is exposed to between 1,500 and 3,000 marketing messages a day

among billboards, telemarketers, TV, radio, and the Internet.159 With the proliferation of

disruptive advertising and the influence of the Internet, marketers are now using both

offensive and defensive tactics to increase consumer talk time of their brands.160 Today

seventy-five percent of all Americans have access to the Internet, and because of this

access, the Internet is rapidly becoming the media of choice for both advertising agencies

and entrepreneurs.161 Of this seventy-five percent of Americans with access to the

Internet, 92.7 percent cite the Internet as their primary source for information on items

they plan to purchase, 87 percent have made or have plans to use the Internet to complete

their purchases, and 73 percent say that Internet forums and messages boards influence

their buying decisions.162

158
Gross, p. 40
159
Mitch Meyerson, 2005, Success Secrets of the Online Marketing Superstars (Chicago, IL:
Kaplan Publishing.), p. 35.
160
Mohr and Chiagouris, p. 51.
161
Joseph Jaffe, 2005, Life after the 30-Second Spot: Energize Your Brand with a Bold Mix of
Alternatives to Traditional Advertising (Hoboken, NJ : John Wiley and Sons, Inc.), p. 110.
162
Todd Horne, October 2005, “Internet appeal offers new sales avenue,” Aftermarket Business,
Vol. 115, Issue 10, p. 11. A copy of this article is in the student's possession and may be consulted by
contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 70

In the new market or age of the Internet, the number one reason consumers go

online is to obtain information.163 Juniper Media Matrix, an Internet research company,

found that 28 percent of consumers go to a search engine and type the product’s name as

a search query when they are looking to purchase a product online.164 Marketers today

must embrace this “search” reasoning when developing market strategy for the World

Wide Web. Because web search gains exposure, marketers need to understand that web

searchers are not random visitors, and that they are often actively seeking a specific

product or service.165

Sparkplugging embraces the Internet as a medium to introduce and grow new

brands. Businesses and marketers alike must obtain an Internet presence if they want to

compete for any sustainable future. The Internet has grown beyond a source for

information and become a source for mass commerce. Large and small organizations can

benefit from Internet marketing with even the most basic presence. For example, MSN

now reaches more people on a daily basis than the top U.S. newspapers combined, and

iVillage.com reaches 14,819,000 more people than Vogue and Vanity Fair magazines.166

Additionally, according to searchenginewatch.com among the major search engines,

Internet users perform about 213 million searches daily. Of this 213 million, 91 million

are with Google, while Yahoo and MSN are in second and third places with 60 and 28

million daily searches respectively.167 With the growth in the ability to reach the masses,

163
Meyerson, p. 23.
164
Shari Thurow, 2003, Search Engine Visibility (Indianapolis, IN: New Riders Publishing.), p. 10.
165
Thurow, p. 10.
166
Jaffe, p. 112.
167
ClickZ, 2006, Searches Per Day [Internet, WWW, Computer Program], Available: ClickZ,
Incisive Media Plc., 270 Lafayette Street, Ste. 700, New York, NY, 10012; ADDRESS:
http://searchenginewatch.com/showPage.html?page=2156461 [Accessed: 18 February 2007]. A copy of
this article is in the student's possession and may be consulted by contacting the student at
hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 71

businesses and marketers are now looking to the Internet as a valid form of advertising.

In 2000, Internet-based companies accounted for 69 percent of web marketing; however,

in a study conducted by Forrester Research, the results predicted that traditional business

advertisers would account for 84 percent of web advertising by year-end 2005.168

Part of the reason the Internet is growing faster than any other medium is the

interactivity it offers the prospect. Businesses today must understand and embrace this

fact and use the interaction the Internet offers to their advantage. As seen in figure 3.1,

radio only has sound, print has only sight, television combines sound and sight; however,

the fourth medium, the Internet, interactivity with both sight and sound.

168
Fiona Ross, May 2001, “Make the most of Web Marketing,” Ziff Davis Smart Business Vol. 14,
Issue 5, p. 64. A copy of this article is in the student's possession and may be consulted by contacting the
student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 72

Figure 3.1: Advertising and User Involvement.


SOURCE: Jaffe, p.119.

Internet Marketing Advantages

There are key strategic advantages to those who embrace the new world of Internet

marketing, but those who fail to adapt remove themselves from the opportunity of a

hypercompetive-growing mass marketplace. Industries that have not yet begun their

adoption of Internet marketing have the most to gain, for many businesses fear this new

way of strategic marketing.

Like the idea of market positioning, to be first in the mind in a new category, an

organization that is first to market or to the Internet has the best chance of winning the

mind of the customer in that category. This rule has fallen true with current brands like

Dell, Amazon, and iTunes. What is known about these category leaders, other than that

they were first in their respective category? Of these Internet giants, none of them
Copyright © 2007 Scott Hrdlicka 73

developed a new or revolutionary product or service; instead they only changed the

experience or delivery with soft changes to an existing category. Dell, Amazon, and

iTunes all found a new medium to execute their marketing and business strategies. The

Internet allowed these firms to grow quickly while their competition ignored it.

At present, several markets are being “Amazon’ed” because their leadership wants

to run the organization the way they did in the 1980s. Many business owners cite their

reasons as something along the lines “because that is how we do business.” Fortunately,

many businesses that buy into that type of thinking today are not performing well and

will most likely not sustain growth. Conventional thinking has changed with the

introduction of the Internet. For example, look at the book market: “Why would someone

buy a book on the Internet when they can’t even sample it?” or “Nobody would ever

purchase an automobile on the Internet because it cannot be test-driven.” It’s safe to say

that when an organization’s marketing is stuck in the past, often their profitability is also

a thing of the past.

The Internet has opened the world up to a new information sharing market where

consumers are typically educated and know what they want. Business, especially small to

medium or new businesses and those Sparkplugging, must start acting on the opportunity

of the Internet and stop competing like they did in the 1980s and capitalize on the

opportunity of the Internet before their competition does.

Building a Web Presence

Sparkplugging a company or brand on the Internet does not mean an organization

must instantly list all of its products online with a full service e-commerce shopping cart,

nor must they accept credit card payment for sales of their widgets. What an organization
Copyright © 2007 Scott Hrdlicka 74

must understand is the opportunity the Internet brings to its business. For example, if an

organization manufactures large bottling machines, maybe having a web presence stating,

“Hey we're out here, and yes we do that,” is enough; alternatively, maybe it’s not. What

an organization must first find out is how its prospects are looking for their type of

products online; if they can reinvent a business process in this example, maybe they

should pursue selling spare parts online. Consumers today can almost find information

about anything on the web, even with the most obscure businesses or products. If the

business is unique, the site will take less effort in keyword research and optimization

because the category is less populated with competition.

Markets must consider several factors in choosing to expand their business to the

Internet. The four main considerations in developing an online presence include domain

names, site development, online branding, and site promotion.

Domain Names

Web presence starts with a domain name, also known as a URL or Universal

Resource Locator. Many domain names are as simple as www.companyname.com; others

are much more complex, placing keywords in the domain name as a form of site

optimization or positioning. Many small to medium enterprises today find that their

companies’ names may already be taken when searching for a domain name so they must

search for an alternative domain name. There are several domain name registrars that are

helpful in searching for a domain name on the web. Domain name registrars hold a

domain name that can be used for a variable amount of time for a fee. Common domain

registrars include www.godaddy.com, www.register.com, and

www.networksoluitons.com. Most registrars are pretty much the same; however, some
Copyright © 2007 Scott Hrdlicka 75

differentiate by offering lower prices while others attempt other value add-ons; however,

almost any registrar will get the job done. Many registrars also suggest some alternate

names if the specific name an organization is being searched for is taken.

Domain Name Selection

Some search engine marketers select domain names as a way to add keywords to

a site. For example, many search engine marketers feel that typing a keyword like “ford”

into a search engine, the URL containing the word “ford” is likely to list before any

others. The idea or methodology of placing keywords in a domain name or URL is not

proven to increase site or page relevancy to a search. Many marketers become frustrated

when they find their company name is taken and fail to realize that many people

searching the web use search engines instead of directly typing in a URL when they are

browsing the web. If a company name is taken, businesses should start to look for

keywords or search engine input of their offering. For example, a computer networking

service company in Chicago, IL, may use a domain name

“computernetworkingchicago.com”. The reason using a domain name like this example

versus a derivative of the company name is that the website will now have a URL

keyword advantage that may place better in search results for the keywords “computer”,

“networking,” and “Chicago.” Other than using keywords in URLs, the other advantage

of a descriptive domain name is that it explains the service performs.

Website Development

Because the web is constantly evolving, so should an organization's website be

evolving as well. The Internet contains much duplicate content, and search engines like

Google are starting to reward webmasters for fresh unique content. A good practice for
Copyright © 2007 Scott Hrdlicka 76

businesses is to add roughly one page of fresh content per day.169 It can be said that

customers used to judge an organization’s health by the size or upkeep of their building.

Now the same can be said about an organization’s website; however, most customers

never see an organization’s physical building. There are five basic concepts that help in

developing an online web marketing presence: simplicity, design, content, user

involvement, and speed.

Simplicity

Websites should be simple; they should have clear text, relevant graphics, and a

clean layout. Research shows that when consumers are presented with too much choice,

they become confused and leave a website.170 Furthermore, research has also found that

the convenience or simplicity of a website directly affects the prospect’s purchasing

amounts and duration of time viewing the site.171 Therefore, each page should be simple

and targeted toward one topic. Such spark-like focus on a specific topic may later

increase a site’s relevancy on a specific subject, thereby, increasing its ability to drive

specific qualified traffic from search engines naturally.

Design

Websites should not be about showing pictures of an organization’s building, flashy

graphics, or animations, because websites are about content. The content of a website is

what search engines match to search engine queries. With this in mind, organizations

should minimize excessive use of flash animation, buttons, music, and images from the

169
Tara Calishain, and Rael Dornfest, 2003, Google Hacks: 100 Industrial-Strength Tips & Tools
(Sebastopol, CA: O'Reilly.), p. 420.
170
Meyerson, p. 27.
171
Wen-Jungl Chen, September 2005, “The Impact of Web Site Image and Consumer Personality
on Consumer Behavior,” International Journal of Management, Vol. 22, Issue 3, p. 490. A copy of this
article is in the student's possession and may be consulted by contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 77

existing website. Over-animated or graphical sites often frustrate users, harm basic site

navigation, impair the chances for a site to be indexed by search engines, and cause the

site to load slower. Additionally, when websites contain too many images, they often load

slowly, and the over-usage of images can confuse users because their eyes cannot find a

clear landing point on the page.172 This does not mean that an organization cannot have a

great looking site; however, this point is to emphasize that unless the organization

requires such features, remaining simple for the sake of usability and speed is often

better.

Marketers to understand that a site should not have a lot of animation for the sake

of speed and usability, but the site must appear professional and clean. Designers and

marketers must find a balance for the sake of users and search engines; this balance

consists of content and art. Because many consumers judge a site within the first three

seconds of opening it, the balance between design and content is critical.173 Pages should

be simple, focused, clean, and easy to navigate for users. When site designers fail to

please users, the users often become confused and leave the site.

Most sites do not benefit from animation, and if the site must contain many

graphics or images, they should be relevant. Alternate text tags should be used to describe

the pictures incase they do not appear in a browser, thereby, helping the user with site

search optimization and site usability. Marketers and designers should also keep away

from a home page landing that offers a designer’s dream “animated intro page” because

web surfers want information quickly, and this type of page typically contains little to no

172
Lisa Spinelli, October 2005, “Effective Web sites proving a valuable marketing tool,”
Accounting Today, Vol. 19, Issue 18, p. 23. A copy of this article is in the student's possession and may be
consulted by contacting the student at hrdlicks@msoe.edu.
173
Meyerson, p. 26.
Copyright © 2007 Scott Hrdlicka 78

content for search engines to read.174 Another factor regarding images is that marketers

must understand that graphics and images increase page load times, and web surfers

typically demand website speed.175 When images are used, the pictures should also be

optimized to reduce file sizes in order to keep the site’s pages loading quickly.

Content

The Internet is built of text and links. The reason most users visit a website is to

read the content; therefore, marketers should be aware that content is the critical mass for

a website and later search engine optimization. To interact with the user, websites should

focus on unique, fresh, and deliberate content. A website should have compelling, fresh,

and interesting content. The content should give the visitor a reason to want to bookmark

the website.176 A website’s pages should contain specialized targeted content, on a per

page basis. It also is advisable to have a page per subject or a page per product. Content is

the most important component to any website because it tells the user an idea of what the

organization or brand does, and it gives search engines a way to match web surfers’

searches to a site. Search engines work by indexing and storing a site’s content; later they

match this text with the text they have stored in their database. They then match

relevancy of content amongst other things to product search results.

In writing website content, marketers should be aware that they need to use clear

statements with the same keywords that a customer may use to find the organization,

174
Chris Pearse, April/May 2003, “Web Marketing - - The Basics,” Engineering Management,
Vol. 13 Issue 2, p10. A copy of this article is in the student's possession and may be consulted by
contacting the student at hrdlicks@msoe.edu.
175
Hillary Bressler, September 2001, “Make Your Web Marketing Click,” Credit Union
Management Vol. 24, Issue 9, p. 56. A copy of this article is in the student's possession and may be
consulted by contacting the student at hrdlicks@msoe.edu.
176
Diane Anderson, Summer 2005, “The Customer Connection: Understanding how to appeal to
your niche audience with both substance and style is important if you want to be a successful affiliate site,”
Revenue The Performance Marketing Standard Vol. 2, p. 84. A copy of this article is in the student's
possession and may be consulted by contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 79

product, service, or brand. Businesses should avoid long paragraphs and break down

information into snippets on all pages. It is recommended that the maximum size of a

paragraph should not be greater than three sentences for a standard webpage. Every page

on the site should only have one subject except for the homepage. The more focused a

site, the better the page will rank in the search engines because of the extreme relevance

of the content. Marketers should also not substitute graphics for heading tags because text

in all headings is readable by a search engine where text in an image is not.

In the case of sites or businesses selling products on the web, marketers must

understand the natural impatience of web surfers. If a site is attempting to sell a product

to a prospect via the web, all information regarding that product should be listed on the

product page. When web surfers are required to skip around to other pages for details,

they are prone to leave the site.177

User Involvement

Many sites are quite successful at attracting new prospects, and they may even have

great design and content; however, they fail to get the consumer involved. Unlike many

forms of marketing, websites have the power to interact with each prospect on an

individual basis. Research has found that there is a direct correlation between a user’s

involvement and his or her intent to purchase.178 Organizations should allow consumers

to sign up for a newsletter, enter a contest, review a page or product, or join a newsgroup.

Any way an organization can find to get the prospect involved is a way for the marketer

to stay in the mind of the prospect, for involvement helps to keep users coming back to a

177
Jim Rapoza, February 2005, “Good Web design pays dividends,” EWeek, Vol. 22, Issue 9, p.
54. A copy of this article is in the student's possession and may be consulted by contacting the student at
hrdlicks@msoe.edu.
178
Chen, Wen-Jungl, p. 491.
Copyright © 2007 Scott Hrdlicka 80

site. Online marketing should be “give-and-take”; the site should give something away in

turn for the customer’s business.179

Speed

Many web designers feel, and for good reason, that speed is the most important

attribute of a website. Statistically, a site response that takes greater than three to four

seconds loses roughly 10 percent of web surfers and roughly an additional 10 percent per

second after that.180 To make sure a site loads fast, it is important to review the site’s

design. Ways to keep pages loading quickly include reducing image file sizes, reducing

unnecessary animation, and limiting use of sound unless absolutely necessary.

Search Engine Optimization

A few fundamental inputs are required for a user to search the Internet.

Understanding these terms, differences, and ideas are the premise for search engine

optimization, which became almost an $8 billion dollar business by 2005, up 15 percent

from 2004.181 How and when a company is found in search engine results is determined

by many variables, including the amount of traffic the site receives, content to search

relevancy, keyword density, keyword prominence, link popularity, and topic focus on a

certain product or service. For marketers, search engine placement in the top five results

is almost as important as being in the top three listings for a relevant category in a Yellow

Pages directory. Often, if a business is not in the top five search results they are out of

luck when it comes to attracting customers via search results.182 Where a business falls in

search results can also create a lot of perceptions in the mind of the consumer, including

179
Meyerson, p. 27.
180
Calishain and Dornfest, p. 413.
181
Gross, p. 40.
182
Jaffe, p. 236.
Copyright © 2007 Scott Hrdlicka 81

those of category or brand leadership.

There are three fundamental ways of finding an organization on the Internet. The

first method is to type in the site URL into a web browser like Microsoft’s Internet

Explorer, Mozilla’s Firefox, or Apple’s Safari. The second is to use a web directory like

Yahoo. The third is to use a search engine like Google.

There are basically two types of search engines found on the Internet today. The

first type started by listing websites in directories so people could find a site on a topic

for which they were looking even if they did not know the site’s name. This solution is

called a directory. Directories on the web were organized much like a phone book’s

Yellow Pages. An example of a popular web directory is Yahoo! found at

www.yahoo.com. This solution still works; however, it has become more difficult to

maintain because directories are human reviewed and the information on the web is fast

growing. For this reason, search engine software was initially developed to crawl, index,

and rank search queries on the web automatically.

The second type of search engines use software called spiders, which essentially

treat the Internet like a very large database. The spiders, or crawlers, bounce around the

Internet following links, ultimately placing their content in the search engine’s database.

The spiders read and index text while crawling the web, and this text is used to generate

results for terms entered into a search engine. The goal is to get a spider to the site as

often as the content changes. If a spider recognizes that content frequently changes, it is

more likely to update its index of the site more often. Some marketers believe they can

tell a spider how often to index a site or particular page using a Meta-Revisit tag. The

truth is that no programmer can force a spider to do anything; frankly, spiders typically
Copyright © 2007 Scott Hrdlicka 82

ignore this tag.183

A spider works by starting at a site that was recently linked by a popular site or

submitted for indexing. As the spider works its way around the Internet following links it

collects information about each site it visits. When the spider has enough information

about a site, it is then able to offer information about the site in search results. Most

search results are based on content relevance, keywords, popularity, and inbound links to

a given site. The goal for marketers is to have their site appear in the top of search engine

results or rankings; therefore, search engine optimization is the craft of tuning a site to

obtain more visibility by search engines.

At present, two major competitors, Yahoo and Google, handle most web searches.

Although MSN is truly attempting to break into the market with MSN Live, it is still

significantly behind in the daily number of searches. Understanding the roles both major

search engines play in marketing is critical for a successful Internet marketing strategy.

Search Results

After a user types a search query into a search engine the search engine will output

matching or relevant websites to the user. This listing of results is pulled from the

database of indexed, or snapshot, content from the spider’s last crawl of the web. The

results are derived from the keywords that were indexed from the site’s content. The

search engine then matches the content of the query to its database. After content is

matched, the search engine evaluates additional information about each matching site,

such as page ranking, links and site popularity, the density of the matching content, and

the prominence of the matching content.

Search results and the order by which they are ranked vary from search engine to
183
Thurow, p. 80.
Copyright © 2007 Scott Hrdlicka 83

search engine because many search engines have their own algorithm for displaying

matching results. What a user finds on the first page of results on Google may not match

what is found on Yahoo or MSN. The results in a search may also be different for several

other factors, such as the geography of the user searching. The results may also depend

on which server the search is queried to, for most search engines consist of thousands of

servers and different databases of information. Because of these factors, search

optimization firms cannot guarantee placement in results; they can only increase the

probability of a site having prominence in search results.184

Search engine results can be confusing for many web surfers because search

engines display advertising or paid results along with natural results on a single page. The

figures below show each area or results in the common search engines, Google, Yahoo,

and MSN.

184
Thurow p. 228.
Copyright © 2007 Scott Hrdlicka 84

Figure 3.2: Search Engine Results.


SOURCE: Google Inc., 2005, Polycom IP500 – Google Search – [Internet, WWW,
Computer program], Available: Google Inc., 1600 Amphitheatre Parkway, Mountain
View, CA, 94043; ADDRESS:
http://www.google.com/search?hl=en&lr=&q=Polycom+IP500&btnG=Search
[Accessed: 7 October 2004].

The Importance of Search Engine Optimization

Search is one of the best ways for prospects to find a business of which they are

unaware. Because prospects searching the web are already actively looking for specific

products and services, search is the perfect opportunity to introduce them to a new

business.185 A consumer searching for specific keywords also means that they are

searching for something highly targeted and are most likely more motivated to buy and a

185
Yahoo! Inc., 2007, Key Statistics [Internet, WWW, Computer program], Available: Yahoo!
Inc., 701 First Avenue, Sunnyvale, CA, 94089; ADDRESS:
http://searchmarketing.yahoo.com/srch/keystats.php [Accessed: 18 February 2007]. A copy of this article is
in the student’s possession and may be consulted by contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 85

standard web surfer following links from one site to another.

Search Engine Optimization (SEO) is not an add-on for a website, nor is it

something that can be added to a poorly developed site. SEO focuses on achieving above

average results in natural search results found in common search engines like Google,

Yahoo, and MSN. Natural search refers to search engine results that appear without

payment from an organization.

SEO or search engine optimization has been the talk of marketers for some time

because many feel that conventional methods of advertising like TV, radio, and print are

loosing their effectiveness. When a website is search engine optimized, the site has the

ability to attract naturally millions of visitors, depending on search criteria and demand.

SEO primarily deals with a website’s content and code and how the spiders or software

that indexes the web used by search engines will index and rank a particular website.

The History of SEO Search Engine Optimization

Historically, to have a poorly designed website with irrelevant content appear

prominent in search engine rankings was possible. Unfortunately, oftentimes a truly

relevant site did not appear in search results because unethical webmasters and marketers

took the best positions. A marketer’s or Webmaster’s intentional attempt to trick a search

engine into ranking an irrelevant site is commonly considered search engine spamming,

or SPAM.

The cause of many of the search engine’s spam problems was inexperience and

new technology used by search engine designers. In the period from 1993 to about 2000,

the Internet grew at such a rapid rate that it was often difficult for search engines to keep

up with indexing of existing web pages, much less factor and calculate the true relevancy
Copyright © 2007 Scott Hrdlicka 86

of a particular search topic. In the early days of search engines, many search engines like

hotbot.com relied on a site’s meta tags, which are tags manually entered by the

programmer. Because the tags could be modified, they often fell victim to spamming.

Meta Tags

In an age in which search engines were not intelligent enough to understand what a

site was about by only indexing its content, they relied heavily on Meta tags. Meta tags

were designed to give a search engine a general description of the page's theme or

content. The problem with Meta tags was that programmers could write in any terms they

wanted, leaving the search engine at the mercy of the keyword or content suggestion by

the programmer. Eventually web designers found ways of overloading the frequency of

keywords in Meta tags to make a page look relevant to a search topic, when, indeed, it

was not.

As Meta tags were losing creditability, search engine designers had to find a way to

again best index the content of the Internet. The next idea was to use existing Meta tags

but to check for overloading of keywords. For a while, this method seemed to work

because several search engines were able to calculate frequency of keywords and detect

spamming. As search engines became more intelligent, they started looking at both the

content of a page and its Meta tags to check the consistency and relevancy of the page.

Again, this practice was ruined for most by the unethical practices of other marketers and

webmasters. Knowing the practices of search engines, web developers, looking at such

algorithms, decided they could hide keywords in the background of sites or create what is

called a “doorway page” that flashed up momentarily before the real site is loaded.

Sometimes doorway pages were even used to even display a different page to the search
Copyright © 2007 Scott Hrdlicka 87

engine, again to gain search position by spamming.

Modern Search Engine Optimization

There are several reasons for the build of today’s search engines, many of which

result from mistakes in the past and the past inabilities for the common web surfer to find

relevant information. Today organizations like Google, Yahoo, and MSN fight the daily

clutter, or as Google would say the “evil” practices of many marketers and webmasters.

The goal for search engine designers today is to create the most accurate index of the

Internet’s content based on the site’s relevancy, popularity, and content.

Today each search engine company approaches SEO a little different; however,

fundamentally, they are somewhat the same in their approach by targeting Google, the

leader in search engine traffic. This approach is why many highly ranking sites rank well

across all search engines. The primary weight for ranking results is no longer on meta

tags but on criteria like keyword frequency, site or page popularity, page name, number

of pages linking to the site, or overall site traffic. There are several tactical approaches

that can be taken in today’s search engine optimization. A list of key factors include

• Site content (uniqueness)


• Meta tags
• Keyword Density
• Keyword prominence
• Number of inbound links
• Site to topic popularity
• Keywords in the URL i.e. http://www.searchengineoptimization.com/seo

A well-built, search-optimized website typically will target one or several different

search engines by site design. Because each search engine weighs ranking factors

differently, both organizations and site builders must understand where their prospective

customers search for products or the services that the products have to offer. Because of
Copyright © 2007 Scott Hrdlicka 88

overall popularity, many marketers choose to target Google’s search engine specifically

because of its raw popularity amongst web surfers.

Designing a Search Engine Friendly Site

Search-optimized web design is somewhat different from what most individuals

view as common, or artsy, web design. In the past few years, several developers have

focused much of their development around programs like Macromedia’s Flash and

JavaScript because these programs help a site look nice. Although tools like these are

beneficial and do help the appearance of a site, they have some major drawbacks because

search engines often cannot index the content embedded in using these programming and

development languages.

Web developers and marketers alike should realize that if the site does not contain

useful content. People and search engines will not read it. If the site does not contain text,

the search engine has no way to match the site to search queries. When search engines

have nothing with which to match the query to site, they do not list the site. Oftentimes,

the better a website appears graphically, the more unfriendly it is for search engines to

read. Although graphic artists can control the way text looks using graphics, search

engines cannot see what a picture says or see what the picture looks like. Telling a search

engine what is displayed in a picture is performed through image alt tags; however, the

search engine cannot be certain of the image. Therefore, the alt text scores lower than

plain text. The same rules also apply to links because search engines cannot read a

graphic button other than its alt tag.

Many developers do as they are told, and marketing often tells them to make the

site more graphically appealing and to animate it. Marketers need to realize the true value
Copyright © 2007 Scott Hrdlicka 89

in a site is the content or the written copy on the site. Designers and markets alike should

understand the balance between website graphic usability and content readable by the

search engines.

Key Practices of SEO Web Design

When developing a search optimized website, developers and marketers alike must

be on the same page. Modern search optimization has several commonly accepted

practices. Alternatively, there are also several practices that can damper the optimization

of a site. Commonly search optimization practices include nine key factors all addressing,

copy, links, and images.

Text-Based Content

If the text copy on a site is not keyed as text, the spider or bot cannot read it:

therefore, a site should contain as much relevant text and content as possible and do not

use pictures with text because search engines cannot read a word embedded in a picture.

They can only read the alt tag, which is scored lower than pure text. If images are a must,

always use alt tags to describe the picture to the search engine in order to help with

website’s usability.186

Text Links and Buttons

Button animation should be completed in a style sheet using CSS. Often many

developers choose to use JavaScript or Flash for unique button animation or to control the

look of fonts across browsers because with such practices, search engines have difficulty

following links inside Flash and JavaScript code. Alternatively, text links carry much

value to a search engine and are easy for the spider to read.187

186
Thurow, p. 98.
187
Thurow, p. 104.
Copyright © 2007 Scott Hrdlicka 90

Valid HTML

It is important for all sites to follow the standards and to use HTML code, not only

for support across browsers and platforms but also to make it easy for the spiders to read

the site. Designers should be careful not to use HTML hacks to modify layout results

because they may confuse the spider and impair its ability to index the site. Developers

should validate their HTML using web based HTML validation tools. Code validation

tools are available online at: http://validator.w3.org/

Simple Page Layout

Not all browsers or computers are created equally; therefore, it is important for

designers to keep the layout simple while supporting lower resolutions of older platforms.

Fresh Content

Content is critical to keep users and spiders visiting a site. Webmasters should keep

their keywords dense, relevant, and prominent because content is what is matched by the

search engine to produce search results. To figure a page’s keyword density, simply

divide the keyword or keyword phrase by the total number of words on the page.188

Keyword Prominence

Title and heading tags serve two core purposes. First, heading and title tags are a

good place for a page’s keywords because they are prominent and weighted heavily by

search engines. To further a site’s heading and title tag optimization, make sure these

words are prominent and appear at the beginning of the paragraph in bold, italic, and

underline if possible. Do not just repeat the keyword; find ways to use it in ways people

may search in search engines.

The second core purpose for title and heading tags are that search engines, such as
188
Thurow, p. 85.
Copyright © 2007 Scott Hrdlicka 91

Google, commonly use these tags when listing results to a search query. Descriptive tags

that communicate what the page is about will help to gain clicks from search results in

search engines. Many marketers forget that search optimization is not only about listing

in search results; it is also about getting people to click on the listing in the search results.

Doorway Pages

Do not use doorway pages, gateway pages, or hallway pages.189 Because people

used these types of pages to redirect web surfers and most importantly crawlers, most

crawlers will leave the site when they see this type of activity.190

Spamming Keywords

Keyword spamming includes attempting to hide keywords or links in the

background or in small text. Keyword spamming can also include abnormal levels of

keyword frequency on the page or in tags. Keyword spamming can cause a site to be

removed from a search engine’s index.191

Meta Tags

Meta tags are often no longer used by most search engines for keywords or

exclusively for page relevance. Instead, webmasters should save their time and write

more content. If Meta tags are used, they should only give a basic description of what the

page is about. Webmasters should use focused titles that resemble the content.

Keywords

Selecting and determining what keywords to use on a specific site or page can be a

difficult task for marketers and webmasters. In the beginning the process of keyword

selection, marketers must get inside the minds of the prospects. When marketers start to

189
Thurow, p. 227.
190
Calishain and Dornfest, p. 420.
191
Thurow, p. 223.
Copyright © 2007 Scott Hrdlicka 92

think how the prospects will search for their offering or the offering from competitors,

they can start to develop keywords and phrases searchers may use.

After a preliminary list of keywords and phrases are generated, there are some

helpful tools for keyword analysis and research, such as the Overture Keyword Selector

Tool found at: http://inventory.overture.com/d/searchinventory/suggestion/ and the

Google Adwords selection tool found at:

https://adwords.google.com/select/KeywordToolExternal. Keyword selection tools are

useful when marketers are stuck, or if they are looking to expand their reach using search

marketing. When performing keyword research, it is in the best interest of marketers to

find what consumers are looking for when they are looking for a specific product or

service instead of blindly picking their own keywords or phrases.192

Links

Links serve many purposes, including directing users and spiders to a website;

however, not all links are created equally. Some inbound links can actually hurt a site.

Typically links that are inbound to a site cannot, so to speak, hurt the way the site is

ranked in search engines. Linking to “link farms” or “bad neighborhoods” can adversely

affect a website’s rankings. Webmasters should be careful when linking to other sites

because their reputation and relevancy to the page to which they are linking can adversely

affect the linking site.

Popularity

Site popularity is typically calculated by search engines using the number of

visitors, click through percentages, and inbound links to a site. Site popularity is factored

192
Gerry McGoldrick, July 2003, “Searching for the Right Key Words,” Pharmaceutical
Executive, Vol. 23, Issue 7, p. 107. A copy of this article is in the student's possession and may be
consulted by contacting the student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 93

into search engine algorithms because it is assumed that people will not link to or visit

substandard websites. Popularity can be easily verified when searching for a specific

keyword and finding that the top rankings are less keyword dense or prominent than their

competitors although they still rank above more keyword rich sites.

Website Promotion

The web is growing every day, and consumers have more options than ever to find

a competitor. Sparkplugging businesses promoting a site should look into all options

because often natural search engine optimization alone is not enough. In formulating a

web promotion strategy, marketers should factor and complement their current marketing

positioning. Web promotion should extend past the Internet or website and back into the

basic corporate communication. Furthermore, often forgotten key practices for a

website’s promotion include listing the website in the yellow pages, on business cards,

stationary, and in any advertising or public relations. The website should be a living part

of the organization and should reflect its marketing.193

On the web, there are several avenues for promotion beyond natural search engine

optimization, including pay per click advertising, banner ads, directories, affiliate

programs, shopping engines, and paid search inclusion. With all these options available

to marketers and with the click through rates of banner rates at only 0.4 percent, Internet

marketing is moving to qualified search and search engine placement as the primary

source of web marketing.194

193
Meyerson, p. 23.
194
Ross, p. 64.
Copyright © 2007 Scott Hrdlicka 94

Paid Per Click Advertising (PPC)

With the growth and popularity of search engine marketing, businesses have also

found great success by also using PPC campaigns to drive qualified leads to an

organization's site. Pay-per-click allows organizations to bid on keyword search terms for

placement in the search engine results. The results on pay per click vary on each search

engine; however, they are usually visible with controlled descriptions from the bidder.

PPC advertising began in 1998 with goto.com, which was then Overture.com, and

is now Yahoo Sponsored Search. In the market today, there are over five hundred

companies offering pay-per-click advertising solutions, leaving marketers a lot of choice

in forming their pay per click strategy. The two primary players in this market today are

Yahoo with Yahoo Sponsored Search and Google with Adwords. 195

Pay-per-click advertising works by directing relevant traffic to a site based off

keywords a company bids on. Pay-per-click advertisements vary in placement, depending

on the search engine. Some search engines place their pay-per-click advertisements

closely to natural search results, but others, like Google and Yahoo display them slightly

above search results and in the right navigation of their search engine under a heading

stating “Sponsored Links.” The position of a pay-per-click ad varies depending on a

couple factors: the amount paid for the ad and, in Google’s case, ad relevancy and how

often the ad is clicked. Every time a web user clicks on an ad, the company is charged the

rate they bid on the keyword that displayed in the advertisement. Pay-per-click ads are

used for site traffic and are paid on visits, not on converted sales. It is important for

marketers to understand these fees when tracking performance of their advertisements.

Pay-per-click advertising is also convenient because markets can set a budget, and when
195
Meyerson, p. 148.
Copyright © 2007 Scott Hrdlicka 95

that budget is hit for a given period, the advertising will stop until funds are replenished

or until that period expires. Many organizations set daily or monthly budgets in which the

search placement tool will balance the ad flow over a selected period of time.

Figure 3.3: Yahoo! Sponsored Search.


SOURCE: Yahoo! Inc., 2007, +markit, inc. Yahoo! Search Results – [Internet, WWW,
Computer program], Available: Yahoo! Inc., 701 First Avenue, Sunnyvale, CA, 94089;
ADDRESS: http://search.yahoo.com/search?ei=UTF-8&p=%2Bmarkit%2C+inc.
[Accessed: 21 July 2007].

Contrary to popular belief, pay-per-click advertising is cost effective. For example

if an organization pays $0.10 per click through and the typical ad conversion rate is 1%,

then for every $10.00 that is spent on PPC, a sale is converted. Now if the organization

earns more than $10.00 profit from the sale, the ads are considered financially successful.

Organizations must also take into effect the gained visibility in search engines, and the

gained brand awareness of the other 99% of unconverted sales. Of this 99%, if 3% return

to the site anytime to make a purchase, again the organization gains from PPC
Copyright © 2007 Scott Hrdlicka 96

advertising. Another way in which an organization may gain but is commonly

overlooked by advertisers is called a "life long customer." An organization should also

weigh how much an average customer spends in his or her lifetime and look at addressing

customer loyalty in order to maintain the relationship of this newly gained customer.

Research PPC Keywords

Understanding what terms the customer uses in looking for a particular product or

service is fundamentally the most important step with Internet marketing. Organizations

need to research and understand what keywords they want to own in order to attract

business on the Internet. Many organizations bid on part numbers or very specific

services, while other bid on their competitors’ products or services. The more specific the

keyword, the better the chance for conversion; however, at times it may be best to go for

more general keywords in order to attract attention or awareness to a site. Overture has a

great tool to get an understanding of what consumers are searching along with derivative

keyword data that are only one month behind. This keyword selection tool is found at

http://inventory.overture.com.

With a large budget, an organization should start with broad keywords in order to

expand across the Internet. After traffic goals are reached, an organization should filter

out specific keywords that are less successful and begin to optimize the funding on more

successful keywords. A common mistake for first time bidders is overbidding on

keywords: they should start low and work higher after verifying placement at a given

rate. Much of the cost optimization regarding pay-per-click advertising is trial and error

and should eventually paint a picture of what the competition is bidding for the same

keywords and phrases. Another key strategy is to supplement natural search optimization,
Copyright © 2007 Scott Hrdlicka 97

even when a keyword has top placement, in order to maximize exposure. Repetition is

important in advertising. Often the more frequently the organization shows, the better-

perceived product or creditability.

Writing an Effective Description in a PPC Ad

Web marketing takes advertising “back to basics” because all ads need to have a

unique call to action. Ads should have good descriptions and give the prospect a reason to

click on the ad and ultimately take action. Because most PPC offerings allow the

marketer to control the content, the content should be keep it short and to the point.

Like common Sparkplugging methods in promotion, pay-per-click search

marketing should not be about creativity. Because pay-per-click search marketing is

limited to text, businesses must think in the mindset of the searcher themselves. This type

of shopper has a very literal mindset rather than the abstract mindset of other media

viewers.196 When writing pay-per-click ads, businesses should not use any creative copy;

however, they should reaffirm the search term to show relevance of the search in order to

increase click through percentages. Pay-per-click ads should have relevant landing pages,

which are the pages the user is taken to when clicking on the ad. The more specific or

relevant the landing pages for a particular ad, the better the conversion for that

advertisement.197

Pay-Per-Click and Google Adwords

Google’s Adwords work much differently than natural Google optimization does

because marketers pay for placement in search results. Adwords allow marketers to target

any keyword or phrase and display their content-controlled ad in the right hand

196
Jaffe, p. 234.
197
Jaffe, p. 233.
Copyright © 2007 Scott Hrdlicka 98

navigation of the search results. (See figure 3.4.) Adwords ads also have the ability to

become syndicated to other Google featured sites when their click-through-rates achieve

certain percentages relative to competitors. Syndication for Adwords ads can be both

good and bad, depending on the product, service, call to action, or the type of sites on

which the ad is syndicated. Google allows this feature to be turned off and on. Businesses

should be careful in allowing their paid inclusion ads to syndicate to related pages, for

several sites are now being built just to sell Adwords ads as their source of revenue.

Figure 3.4: Samples of Adwords in Google Search.


SOURCE: Google Search Results. Modified by the author.

Banner Ads

Advertising first started on the web by use of banner ads, which were designed to

be shown to users while they surfed websites. Banner ads were so popular and profitable

for advertisers early in the days of the Internet that whole business models were

developed just to sell banner advertising on the web.

The idea of the banner ad, which is similar to a billboard, allowed the advertiser to

pay a specific rate for a number of ad appearances; however, as time went on many
Copyright © 2007 Scott Hrdlicka 99

advertisers learned that many people viewing or even clicking on the ads were not

converting to sales as they expected.

Internet Directory Advertising

Directory sites have become very common on the Internet. Some sites charge for

inclusion to their directories, and others do not. The benefit of listing with a directory is

that many directories have many frequent users, and being listed for general search

visibility and relevant linking is helpful. Additionally, if the directory is frequently

spidered by search engines and is considered to be a quality link by a specific search

engine, it can have a positive effect on the natural search optimization for the site.

Common directories many successful sites list their business in include

• Yahoo Directory - http://dir.yahoo.com


• ODP - Open Directory Project www.dmoz.org
• Google Directory - http://directory.google.com

Webmasters should be careful to select the proper and best fitting category for the

site, and they should submit only once. Improper categories or category spamming will

prevent a site from being listed in a directory.

Affiliate Programs

Affiliate programs, or “associate programs,” essentially are reseller channels that

refer traffic to a business where the affiliate is paid for converted sales. 198Affiliate

programs are a great way to increase relevant traffic to a website, promoting sales instead

of traffic like pay-per-click. An affiliate program by design is in place to link relevant

visitors from one site that may not sell a specific product to a site that does and earn the

webmaster a commission by doing so. Affiliate programs are especially rewarding when

Sparkplugging brands because they only pay when a sale or specific action is taken.
198
Meyerson, p. 182.
Copyright © 2007 Scott Hrdlicka 100

There are two common types affiliate programs. The first is an outsourced service and the

second option is for an organization to build their own.

Paid Affiliate Program Services

Paid affiliate program services pay a referrer for a click through that results in a

sale or specific action. The delivery of the referral is commonly produced through either

e-mail or website links. Affiliate programs pay the referrer a commission for a click-

through that results in a sale. Common commissions range from five percent to fifty

percent of the sale. Most often, the better the compensation, the more likely a company or

service will want to join the affiliate program. Some of the more established outsourced

affiliate programs on the web include Commission Junction and Performics. Most brands

that sparkplug do not use either of these services because they typically only take on

clients that spent in excess of $10,000 a month.

Typically, paid affiliate services are a great way to increase sales of an

organization’s product or service. When using a paid service, more often than not, the

seller and the service will have the same interest, which is converted sales, and will help

position products in the best areas on the web for sales conversion. Affiliate programs

can, however, become impractical if an organization sells in a very niche market where

they cannot meet a minimum requirement of sales volume or if they cannot afford the

commissions, such as commodities which may only be a starting margin of less than five

percent.

In addition to paying for a sale conversion, some services will charge a small rate

for each click through and a premium rate for a converted sale. The difficulty with such

services is that often an organization does not receive high quality links, thus resulting in
Copyright © 2007 Scott Hrdlicka 101

more traffic to a site but not as great as a sales conversion ratio. The other downfall is

that the organization is left paying for traffic instead of converted sales. Paying for click

through when building an affiliate program often defeats the purpose of the affiliate

program that is focused on sales.

Building an In-House Affiliate Program

Building an in-house affiliate program takes quite a bit of planning and

programming; however, when completed, if executed well, the program can create a great

level of return for an organization. In-house affiliate programs are typically the best

option for brands looking to sparkplug. Building an in-house affiliate program must first

start with the design of a business concept. The organization must ask itself what is it

willing to pay for commission and what is the incentive for someone to join the program.

Finally, if the organization is designing an in-house program, it is possible to pay a

higher commission because the middle-man is removed from the equation. Additionally

considerations must be factored like the cost of development or third party software.

Competing with common paid affiliate programs is often difficult, for businesses

must find affiliate partner organizations on their own. To overcome this difficulty, in-

house affiliate programs must confirm to two things. First, they must be easy to

implement for the webmaster of a given site, allowing them administrative functions,

such as reporting and pay scheduling. The second factor is that the program must pay to

its advantage for the inconvenience of not using the major brand. If the organization is

large, the organization can limit the number of affiliates that will be setup, thereby,

giving them advantage and higher returns on the program as the program gains

exclusivity. Sometimes organizations can setup win-win affiliate programs by promoting


Copyright © 2007 Scott Hrdlicka 102

one another for similar products that each do not offer.

An organization that offers an affiliate program should clearly display the affiliate

program’s offering on the homepage of the site. Additionally, user account setup should

be automated to allow a user of interest to join quickly with very few hang-ups. Other

than a link from the homepage, the offering to join as an affiliate should be offered to

customers, vendors, and indirect competitors of those organizations that understand and

can promote the program best.

Affiliate programs are also a great way for Sparkplugging advertisements before

taking them to a larger medium like Yahoo or Google. A small business can use an

affiliate program to test the conversion on several different advertisements, and once the

test is completed and if any of the ads are performing at a rate that can be afforded by a

larger scale, the company can select that ad and run it larger scale.199

Shopping Engines

Shopping engines are websites that are dedicated to the listing and review of

online merchants. For almost all online stores, it is critical to have placement in at least

one shopping engine. Shopping engines help sites gain exposure, and they often enable

merchants to compete on pricing for a product. The most popular shopping engines

include Froogle, Yahoo Shopping, and BizRate/Shopzilla.

Froogle

Froogle is Google’s free shopping service. Found at www.froogle.com, it competes

against Yahoo’s pay for inclusion shopping product, Yahoo Shopping. Marketers have a

definite advantage in listing products in Froogle because there is no fee for inclusion.

Basically, there are two ways to list products in Froogle. The first is to have a well-built
199
Meyerson, p. 183.
Copyright © 2007 Scott Hrdlicka 103

and popular site that Google indexes frequently. The second option is to create a

merchant store using Google Base and upload a product database according to its

specification. When products are uploaded in the Google Base merchant center, the

merchant has the ability to control what products are listed and control of the frequency

of how often both products and prices are updated.

Another major advantage to Froogle is that the popularity and trust in the Google

brand continues to grow. Since the beginning, and it is said never to change, Google has

kept advertising revenue and natural search separate, thus, creating creditability for its

customers. Additionally, Google and Froogle’s interface is simple to use because it is

designed to load quickly.

Yahoo Shopping

Yahoo Shopping, found at http://shopping.yahoo.com/, is Yahoo’s online

shopping engine. Yahoo shopping is unique because it first lists advertisements from the

Yahoo search-marketing engine and then the product listings that are fed into the Yahoo

Shopping engine. Unlike Froogle, marketers must pay for inclusion to the Yahoo

Shopping engine on a pay per click through basis. In addition to listing products and

pricing, Yahoo also provides users with peer-reviewed merchant ratings as a value added

service.

BizRate/Shopzilla

BizRate, found at www.bizrate.com, is one of the most popular shopping engines

on the web. Shopzilla, a shopping service founded in 1996, operates BizRate.200 BizRate

200
BizRate, Inc., 2007, About BizRate – Building the Best Shopping Search Engine Online with
ShopRank [Internet, WWW, Computer program], Available: BizRate, Inc., 12200 W Olympic Blvd, Suite
300, Los Angeles, CA, 90064; ADDRESS: http://www.bizrate.com/content/about.html [Accessed: 18
Copyright © 2007 Scott Hrdlicka 104

offers shopping review services for almost any product category found online. Like

Yahoo Shopping, BizRate charges a fee per click through for all items listed in their

shopping directory. An advantage BizRate has over other shopping engines lies within its

popularity and ability to leverage product and store review with all listings.

Paid Search Inclusion

Some search engines allow webmasters to pay to have their sites indexed. Paid

search inclusion can be beneficial for sites with rapidly changing content, new sites that

are not yet frequently indexed, and sites that are not very popular. Some drawbacks to

paid inclusion are the search engine does not guarantee premium placement in that search

engine. Another drawback of this type of service is that some search engines charge

additional fees when a listing is clicked through in the search results.201

Paid search inclusion is offered by a few search engines, including the following:

• Inktomi - $39 first URL $25 each additional URL


• AltaVista - $78 first URL, 2-10th URL $58 each, 11+ $38 each additional URL
• Fast / Lycos - $18 annual first URL, $12 annually each additional URL
• Teoma / Askjeeves - $30 first URL, $18 each additional URL202
• Yahoo - $49 first URL, $29 2-10th URL, $10 each additional URL. Plus .15 to .30
per click through fee.203

Like most other paid marketing programs, paid inclusion may have its fit for a

specific business. Marketers should note that before starting a paid inclusion program,

February 2007]. A copy of this article is in the student’s possession and may be consulted by contacting the
student at hrdlicks@msoe.edu.
201
Thurson, p. 159.
202
NetMechanic, Inc., 2003, Paid Inclusion Tips [Internet, WWW, Computer program], Available:
NetMechanic, Inc., Suite 500, 2100 10th Street, Plano, TX, 75074; ADDRESS:
http://www.virtuallyignorant.com/paidinclusiontips.htm [Accessed: 18 February 2007]. A copy of this
article is in the student’s possession and may be consulted by contacting the student at hrdlicks@msoe.edu.
203
Yahoo! Inc., 2007, Paid Inclusion from Yahoo! Search Marketing (formerly Overture) – Search
Submit Express – Pricing [Internet, WWW, Computer program], Available: Yahoo! Inc., 701 First Avenue,
Sunnyvale, CA, 94089; ADDRESS: http://searchmarketing.yahoo.com/srchsb/sse_pr.php [Accessed: 18
February 2007]. A copy of this article is in the student’s possession and may be consulted by contacting the
student at hrdlicks@msoe.edu.
Copyright © 2007 Scott Hrdlicka 105

they should address all natural search and web design in order to get the best results in

the engine after the paid inclusion provider indexes it. Indexing a non-search optimized

site will likely produce below average returns.

Section Summary

The Internet is changing the way new brands and smaller firms are able to

compete with those that have larger budgets. Like all areas of Sparkplugging strategy,

when marketers use a laser-like focus, the results are the best. Integration of consistent

and clear site development, along with fresh content that is readable by search engines

will get marketers on track. It is also important to integrate the areas of Internet

advertising in order to increase exposure while naturally building the online presence of

the brand.
Copyright © 2007 Scott Hrdlicka 106

Conclusion

Developing and managing brands in an over proliferated market is a difficult task

even for marketers with the largest of budgets. Today, the way that smaller firms with

small budgets should build, manage, and promote their brands has changed because the

mass media are rapidly evolving into new media, such as the Internet. Beginning with the

brand building phase, it is essential that marketers look to Sparkplugging to remain

focused while defining what their brands are and are not.

Later, in promoting the developed brand, Sparkplugging marketers should

understand the differences between advertising and public relations and how their new

and emerging brands can maximize exposure. When brands that are Sparkplugging

execute and manage their promotion strategy, they can gain exposure like large brands

have with little to no cost. As the brand grows and evolves, the marketer must understand

how the brand moves through the promotion lifecycle as defined herein.

Lastly, when marketers are looking to gain exposure quickly, they should be

aware of and understand the opportunities the Internet offers to their brand. The Internet

is rapidly changing all mass media and the way businesses compete. Businesses can gain

mass exposure either by optimizing their websites for natural search optimization or by

jumpstarting their products by using some of the cost effective advertising methods

offered like, Google Adwords.

It is important that small to medium enterprises note the mistakes by large

businesses discussed herein when developing and promoting their brands. To aid those

companies with new and emerging brands, an outline is provided to develop and execute

a sparkplugging strategy.
Copyright © 2007 Scott Hrdlicka 107

Executing a Sparkplugging Strategy

Sparkplugging has three core phases: branding, promotion, and Internet

marketing. Sparkplugging is designed for small to medium sized businesses that often do

not have large budgets. The following checklist is provided to keep sparkpluggers on

track when developing their brands.

The Branding Phase of Sparkplugging

1. Develop the brand experience.


a. Think of the existing or new brand in terms of the customer’s experience.
b. Decide how should the brand make the customer feel.
c. Ask questions, such as: “How do we want the customer to feel when they
purchase or use the product?”
d. Remember experience can be an alternative attribute similar to that of
Rolex in which part of the product experience is having enough money to
own one.
2. Develop the brand’s personality.
a. Control personality factors of the brand, and use attributes like attitude,
culture, and temperament.
b. Use personal attributes that the customer can relate to.
3. Define the category.
a. The best strategy is to create a unique category so the rules can be
governed by the brand.
b. A new category does not need to be revolutionary. Instead, it can be
something simple, like changing the attributes of an existing category.
c. Category difference is a great way to instantly differentiate and control
perceptions in the mind of the consumer.
d. If it is not possible to develop a new category, the brand should use one of
positioning strategies outlined in this work.
4. Name the brand.
a. A name can create assumptions and can be the first way of communicating
about the brand.
b. Do not use egocentric names, such as professional or international.
c. Do not use generic names, like general or national.
d. Start the name with a capital letter so it looks correct in print.
e. If possible, take a generic industry term and modify it.
f. Start the name early in the alphabet this helps with directory listings.
g. Avoid trendy names like .com or 2000.
h. Keep the name short. If the name is too long consumers will find a way to
shorten it.
5. Set the price.
Copyright © 2007 Scott Hrdlicka 108

a. Think about how price will create expectations and be part of the product
experience.
b. Think about price promotion strategy and how that will influence the way
people will buy and what they are willing to pay for the product or service.

The Promotion Phase of Sparkplugging

1. Create a story.
a. Find industry specific media.
b. Develop a story about the brand.
c. Tell a story worth sharing with others. Ideally, it should be a story that will
spread across social networks.
d. Remember: messages conveyed through public relations are commonly
more trusted than advertisements.
2. Pitch the story.
a. Find journalists who have interest in the brand. Some journalists specialize
in specific categories; therefore, find as many category specific specialists
as possible.
b. If the story is not exactly new, find a new way to tell it. If the story will go
out to several media, make sure to give each journalist a unique spin on
the story.
c. Pitching is like selling: keep the pitch short and simple.
d. Have a call to action. Find a way to get the target audience to respond.
3. Use advertising as a defense budget or to control perceptions.
a. Sometimes advertising is needed to reinforce public relations. Especially if
the PR message is getting out of control.
b. Advertise once the brand has category leadership and advertise this
leadership. (Everyone likes an underdog but they seldom buy.)
c. When advertising, have a call to action. Ask for the sale. Creative
adverting will get people to talk, but it usually does not get them to buy.
4. Beware of marketing research.
a. Marketing research is often costly in time and money, and usually it
produces only the results of finding what marketers were already looking
for.
b. Because surveys usually consist of hypothetical questions using
hypothetical time and money, they do not always produce relevant data.
c. Market research is time consuming and can delay product or service
launches. Instead of researching hypothetical time and money, find a way
to micro-market the product and see if it works.

The Internet Marketing Phase of Sparkplugging

1. Build a brand specific website.


c. Keep the site focused on the brand.
d. Select a domain name that is easy or that is specific to the offering.
Copyright © 2007 Scott Hrdlicka 109

e. Design the site to be simple, fast, and clean.


f. Get the user involved in the site. The more interaction the better because
the probability of conversion increases with user interaction.
2. Search Engine Optimize (SEO) the website.
a. Research the competition to find when it appears in search engines and for
what keywords and phrases.
b. Look at competitors’ websites and look at their sites’ keyword density and
prominence.
c. Go to a search engine and type in “link:www.markit-inc.com (substitute
markit-inc.com with the competitors domain name) The results will show
who is linking to their site. If possible, get similar links and from better
and more relevant sources.
d. Keep fresh content on the site. (Ideally about 1 page of new content a day)
e. Have unique content. Sites that have similar content tend not to do as well
as sites with unique content in search engines.
f. Do not waste time on meta-tags. Meta-tags are no longer weighed with
importance by most search engines. Instead, spend the time that would be
used on meta-tags on the content.
g. Get inbound text links from relevant sources. Make sure the text links are
keyword rich.
3. Use Pay-Per-Click (PPC) advertising to jumpstart the site.
a. If a site is new, use a service like Google Adwords to get the site
displaying in search engines.
b. Start low on pay-per-click keyword bids and work increase to get better
placement. This pay strategy helps to avoid over-bidding on keywords.
c. Even when the site does well naturally in search engines, keep the pay-
per-click campaign for additional repetition.
Copyright © 2007 Scott Hrdlicka 110

Glossary

Banner Ad – advertisements that are commonly found on websites that contain images
or flash animation. This type of advertisement is similar to a print advertisement.
Domain names – names used to identify a website on the Internet. Domain names use a
Universal Resource Locator (URL) format. For example: http://www.markit-inc.com in
this case “markit-inc” is the domain name.
Domain Registrar – an organization that allows people and businesses to register a
domain name. Domains are typically registered by prepaying for a variable number of
years. Most organizations register a domain name for at least one year with an option to
renew.
Doorway Pages – pages used on websites by developers to redirect search spiders to an
alternative site that is typically used to SPAM keywords.
E-Commerce – otherwise known as electronic commerce, e-commerce is a way to
reference a way of conducting sales or products or service via the Internet.
Flash animation – animation commonly found on websites to display picture slide
shows, animated graphics, or website components.
HTML – Hypertext Markup Language, a language used by web developers to markup
text for the use in websites.
Keyword – a specific word a webmaster or marketer wishes to match with a search
query. For example, a widget manufacturer may want to focus on the keyword “widgets.”
Keyword density – how frequent a keyword appears in text on a website. For example: a
web page with 100 total words that has a specific keyword appearing 10 times would
have a keyword density of 10%.
Keyword prominence – how noticeable is the keyword on a given page. If a webpage
has a keyword in specific areas like the page title or header and is again found early in
text the keyword is considered to have prominence.
Links – are used to direct a web surfer to another website. Links can appear in image
format where users are directed by clicking on an image or they can appear in text format
where users are directed by clicking on text that is usually underlined or highlighted.
Meta-Revisit Tag – was initially designed to instruct the search engine when revisit the
site. For example, a tag instructing a search engine to return in 30 days would read as
follows: <meta name=”revisit-after” content=”30 days” /> Meta-Revisit tags are typically
ignored by search engines.204
Meta-Tag – a tag that was commonly used in the early stages of the Internet as a way for
webmasters to inform search engines about a site’s content.
PPC (Pay-per-click) – a type of Internet advertising that allows marketers to bid on
advertisement placement for specific keywords. When an advertisement is clicked by a

204
Thurow, p. 80.
Copyright © 2007 Scott Hrdlicka 111

web surfer the company advertising is billed by the ad service at the rate they bided for a
keyword.
Search Engine – a service where through which Internet users can search for products or
services using keywords and phrases.
SEO (Search Engine Optimization) – a practice that allows marketers and webmasters
to research keywords and phrases used by consumers and optimize their websites’
contents amongst other attributes in order to attract the highest number of relevant search
inquiries.
Sparkplugging – a strategy for building and promoting brands with a small budget, using
branding, public relations, and Internet marketing strategy to minimize the amount of
paid advertising when building and developing the brand.
Spam – a practice of taking extreme measures to rank highly in search results. Practices
are usually found as over usage of keywords, scripting, or use of doorway pages.205
Spider – software used by search engines to index websites on the Internet.206
URL (Universal Resource Locator) – addresses referring to a location on the Internet.
All document and images on the Internet have a unique URL.207 For example
http://www.markit-inc.com
Webmaster – someone that manages a website’s content. Tasks can include
programming, writing copy, uploading documents, website promotion, and modifying
images.

205
Thurow, p. 259.
206
Thurow, p. 259.
207
Thurow, p. 260.
Copyright © 2007 Scott Hrdlicka 112

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