T THE SCIENCE OF GETTING TJACO WALVIS BRANDING REALLY IS ALL IN THE MIND J – AND THIS BOOK PROVES IT A CUSTOMERS TO CHOOSE C YOUR COMPANY O What has neuroscience got to do with Think about the last time you branding? The latest fi ndings from the bought something. Do you know W frontiers of scientifi c research reveal that why you chose that particular A our brains select brands in much the same product or brand? Probably not. L V way that Google selects websites. Clever You can rationalise with hindsight, I companies play on Google’s algorithm to but the fact is our brain makes S make sure their site appears as high up in ABOUT THE AUTHOR these decisions without us really customers’ search lists as possible. In the thinking about it. This is why the same way, brand-conscious businesses can TJACO WALVIS is a partner at THEY, most successful brands appeal to play on the brain’s algorithm to make sure an international brand management customers on the basis of emotional their brand is at the top of their customers’ consulting and communications fi rm based associations, images and experiences minds at the moment they choose which in Amsterdam, the Netherlands. Previously, rather than just on the back brand to buy. he was a strategy and research director with of their product specifi cations. BBDO. Tjaco is a leading expert on brand As one Harley Davidson executive Branding with Brains explains how the strategy issues, including brand positioning, describes it in one of this book’s intricate workings of our brains infl uence extensions, portfolio management and convention-shattering case studies: our buying behaviour. It uncovers the location branding. He has worked with “We don’t sell motorbikes. What we hard, scientifi c truth about why customers boards and marketing executives of sell is the ability for a 43-year-old choose some brands over others. And it companies such as Amsterdam Airport Schiphol, accountant to dress in black leather, shows you how to apply the three most DaimlerChrysler, Doritos, Getronics, GMR ride through small towns and have powerful laws of branding – relevance; India, ING, Leica, Mars, McKinsey &Company, people be afraid of him”. coherence; participation – to give your brand Nutricia, Robeco and Sanoma Publishers. a much greater chance of being chosen by He has served clients in a broad range of Branding with Brains exposes the customers than your competitors’ brands. industries, including fashion, fast mover hard, scientifi c truth about why consumer goods, fi nancial services, customers choose certain brands In this radical new book, Tjaco Walvis government, insurance, media, pharmaceuticals, over others. It gives you the three presents a daringly different approach private banking, postal services, publishing, most powerful laws of branding to to brand strategy and tells the stories of retail, telecommunications and world make sure your brand is the fi rst in a diverse range of companies who have expositions. He has published many articles your customers’ minds, every time used it to powerful effect. Read about the and lectures regularly on branding and holds they buy. brands that have captured the attention two Master degrees, in economics (MSc) of our brains, from Leica, McKinsey and and philosophy (MA). Starbucks to Volkswagen, ‘brand’ Barack Obama and the Batman fi lm, ‘The Dark To read Tjaco’s blog, go to Knight’. Then use these insights to build www.brandingwithbrains.org your brand strategy in a way that infl uences customers’ unconscious choices in your THEY is this years winner of the Ad Age Small brand’s favour. International Agency of the Year award 2009 Cover by Heat Design BUSINESS Visit our website at www.pearson-books.com Visit our website at www.pearson-books.com 9780273719953_WALVIS.indd 1 25/1/10 13:06:01 A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page i Branding With Brains A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page ii Inanincreasinglycompetitiveworld,webelieve it’squalityofthinkingthatgivesyoutheedge–an ideathatopensnewdoors,atechniquethatsolves aproblem,oraninsightthatsimplymakessense ofitall.Themoreyouknow,thesmarter andfasteryoucango. That’swhyweworkwiththebestmindsinthe businessandfinancetobringcutting-edge thinkingandbestlearningpracticetoa globalmarket. Underarangeofleadingimprints,including FinancialTimesPrenticeHall,wecreateworld- classprintpublicationsandelectronicproducts bringingourreadersknowledge,skillsand understanding,whichcanbeappliedwhether studyingoratwork. TofindoutmoreaboutPearsonEducation publications,ortellusaboutthebooksyou’dlike tofind,youcanvisitusat www.pearsoned.co.uk A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page iii Branding With Brains The science of getting customers to choose your company Tjaco Walvis A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page iv PEARSONEDUCATIONLIMITED EdinburghGate HarlowCM202JE Tel:+44(0)1279623623 Fax:+44(0)1279431059 Website:www.pearsoned.co.uk FirstpublishedinGreatBritainin2010 ©PearsonEducationLimited2010 TherightofTjacoWalvistobeidentifiedasauthorofthisworkhasbeen assertedbyhiminaccordancewiththeCopyright,DesignsandPatentsAct1988. ISBN:978-0-273-71995-3 BritishLibraryCataloguing-in-PublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloging-in-PublicationData AcatalogrecordforthisbookisavailablefromtheLibraryofCongress Allrightsreserved.Nopartofthispublicationmaybereproduced,storedina retrievalsystem,ortransmittedinanyformorbyanymeans,electronic, mechanical,photocopying,recordingorotherwise,withouteithertheprior writtenpermissionofthepublisheroralicencepermittingrestrictedcopyingin theUnitedKingdomissuedbytheCopyrightLicensingAgencyLtd,Saffron House,6–10KirbyStreet,LondonEC1N8TS.Thisbookmaynotbelent,resold, hiredoutorotherwisedisposedofbywayoftradeinanyformofbindingorcover otherthanthatinwhichitispublished,withoutthepriorconsentofthepublisher. 10987654321 1413121110 DesignedbySueLamble Typesetin9.5ptMeliorby30 PrintedandboundbyAshfordColourPress,Gosport Thepublisher’spolicyistousepapermanufacturedfromsustainableforests. A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page v Contents Wordofgratitude/vii Publisher’sacknowledgements/viii Introduction/ix Howadisturbingcomplimentgaverisetoabook 1 Where branding gets it wrong / 3 Brandingsuffersfromaflawedmodelofhowcustomers decideandmisconceptionsabouthowstrongbrandsarebuilt 2 Persuading subconscious minds / 21 Customersmakebrandchoicesusingasubconsciousbut stablealgorithmthatfavoursbrandsbuiltaccordingtothree laws:relevance,coherenceandparticipation 3 Law No.1: Relevance / 47 Brandsbuilttobedistinctivelyrelevantaremorelikelytobe chosenbythebrain 4 Making your brand uniquely rewarding / 65 Knowyourcustomers’subconsciouscocktailsofgoalsandbe radicalinhowyourbranddeliversuponthem 5 Law No.2: Coherence / 85 Brandsbuilttobecoherentthroughtimeandspaceare pickedbythebrain’salgorithm A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page vi vi nts 6 Aligning the business with the brand e ont strategy / 113 C Integrateeverythingyoudobyworkingfromaspecificbut flexiblebrandconceptthatismeaningfulforeveryone,from customerstotheCEO 7 Law No.3: Participation / 139 Brandsthatareopenandparticipatoryarefavouredbythe brand-choicealgorithm 8 Getting your audience to enter the game / 165 Makeparticipationimmediatelyrewardingandrethinkevery mediumtobemoreengaging 9 Is this book morally wrong? / 191 Users–andnotideas–carryethicalresponsibilities,soitall comesdowntoyou 10 Come again? / 209 Canyoupleaserepeatwhatyoujustsaid? Notes/221 Index/237 A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page vii Word of gratitude ToRolandvanderVorst,KimDingler,SanderBakker,Patrickvan derGronde,ZwierVeldhoen,RubenEsser,BorisNihomand everyoneatTHEYforyourhelpandenormoussupport. ToProfessorDrWiepvanBunge,DrAndreasKaufmann,Erikvan derMeijden,HuibMorelisse,LizGooster,RupertMorris,Professor DrJackVroomenandProfessorDrFredvanRaaijforyourtimeand invaluablecommentsandsuggestions. ToHarjo,DienekeandTjeerdWalvis,SvenvanderSteenand AlfredvanBungeforencouragingmetopushboundaries. ToJolene,Maudy,MareandJetteforbeingthemostimportant, heartening,encouragingandlovelywomeninmylife. Toeveryonewhohelpedmealongtheway,thankyouall! A01_WALV9953_01_SE_FM.QXD:Layout 2 15/1/10 12:04 Page viii Publisher’s acknowledgements Wearegratefultothefollowingforpermissiontoreproduce copyrightmaterial: Screenshots Screenshotonpage176fromContestdatesforpreliminaries, http://edition.cnn.com/ELECTION/2008/primaries/results/scorecard/, CourtesyCNN TheFinancialTimes Graphiconpage116fromStarbucksarticle,Dec12th2008, www.ft.com,FinancialTimes Thepublisherwouldliketothankthefollowingfortheirkind permissiontoreproducetheirphotographs: (Key:b-bottom;c-centre;l-left;r-right;t-top) ArchitecturalAssociationPhotoLibrary:SuzanneSchmelcher 157;Corbis:CNRI/MedNet212cl,Images.com212cr;DKImages: 20-21;GettyImages:AFP101,124,147,169,AFP101,124,147, 169,AlanThornton64-65,JunkoKimura201,NicoletteWells 164–165,Smari84-85,Time&LifePictures39,55,138-139;GNU FreeDocumentationlicense:2-3,179cl,190-191;Pearson EducationRoyalty-Free/Commissioned:MedioImages31, Photodisc37,Photodisc/Photolink/S.Meltzer208-209;Press AssociationImages:MattSlocum112–113;RuflanzAdvertising Agency:RufLanz,MarkusRuf,DanielleLanz88;TheAdvertising Archives:94,106,122,123,152;TheCoffeeCompany:179c; THEY:LiesMusch@WitmanKleipool97 Allotherimages©PearsonEducation Everyefforthasbeenmadetotracethecopyrightholdersandwe apologiseinadvanceforanyunintentionalomissions.Wewould bepleasedtoinserttheappropriateacknowledgementinany subsequenteditionofthispublication. A01_WALV9953_01_SE_FM.QXD:Layout 2 14/1/10 10:16 Page ix Introduction Y ‘ ouknow,Ireallyadmireyouguys’,aclienttoldusafterour finalpresentationtotheboardhechaired.‘Itisan achievementhowyoumakesuchavaguesubjectlike brandingthisconcrete.’Itwasaniceenoughcompliment,butit worriedme.Itwasthefactthathesocasuallyandconfidently describedourdisciplineas‘vague’! Noteveryoneisascandid,ofcourse,butthisexecutiveisbyno meanstheonlydecisionmakerwhoseesbrandingthisway. Indeed,inmyexperience,thehigheryougoupthehierarchythe morelikelyyouaretomeetpeoplewhoseebrandingasan intuitiveandratherunprofessionalfield,drivenbyfads,jargon, unsupportedassumptions,anuncomfortablerelianceonpopular cultureandanunclearrelationshipwiththebottomline.Itisnot thattheseexecutivesdonotunderstandthevalueofbrands.They seethatsomebrandsinfluencethechoicesofcustomersand stakeholders.Manyknowthatstrongbrandscanbeworthupto 75percentoftheentiremarketvalueoflistedcompanies.But,in theirthinking,thosearethebrandsofothers.Andmanyexecutives assume(incorrectly)thattheyareconsumerbrandsthatinvest hugesumsinadvertising.Inshort,thereisabiggapbetweenthe economicvalueofbrandsandtheprofessionalismandimageofthe disciplinethatbuildsthem.Thepointisthatinmanyboardrooms allovertheworld,thereisnocommonframeworkforclearand intelligentdiscussionsabouthowbrandstrategycontributesto growth.Andmarketershavefounditveryhardtochangethis. Letmegostraighttooneoftherootcausesofthisproblem,andthe coresubjectofthisbook,byaskingyouaquestion.Whenyoulast boughtasoftdrink,acar,apairofjeans,acopier,corporate bankingservices,oranyotherbrandedproductorservice,didyou knowwhyyouchosethatparticularbrand?Thinkaboutitfora