Saturday 15 December 2012

Summary: Brand-Leadership - David Aaker and Erich Joachimsthaler


Key management summary of Brand Leadership text


Avoid viewing the brand too narrowly. Instead, have a broad and rich brand identity which is aspirational.Read more at location 102
As far as possible, always link the brand to one specific functional benefit which is compelling and expressive. Everything else should then be linked to that benefit by association.Read more at location 103
Ignore the temptation to use too many dimensions in defining a brand. Instead, focus on just one or two key dimensions that fit and help the building of the brand identity. Ignore everything else.Read more at location 105
Understand how competitors have positioned their brands and create a differentiated identity which takes into account whatever those competitors are doing. Understand their approach and do something different.Read more at location 109
Wherever possible, have a single brand identity which applies across the entire range of products and in every geographic marketplace. Often, this involves having a single brand identity but emphasizing different elements in different markets.Read more at location 110
Project the brand identity. Don’t let it become ambiguous. Be definitive in stating precisely what the brand stands for. Do this well and the brand identity will influence every decision the organization makes in the future.Read more at location 114
Role models capture the emotion of a brand and say something about its vision. Internal role models can personalize the brand and build a heritage within the organization of actions which make up the company culture.Read more at location 117
Visual metaphors which are aligned with the brand identity are powerful emotive devices. They can add depth and color to the way the brand is viewed. Strong visual metaphors are memorable and provide strategic direction for the brand identity.Read more at location 120
Many brands are complex with a number of attributes, dimensions, associations and more. A good brand identity will set priorities, deciding which single attribute is most important in representing what the brand stands for. The brand identity will also help determine which legacy attributes should be maintained and which should be updated.Read more at location 122
“In order to be communicated effectively, a brand identity needs to be punchy, memorable, focused and motivating.”Read more at location 133
Create visibility. Brand visibility is a mix of three factors: Recognition – “Have you heard of this brand?” Awareness – “What brands do you know?” Top-of-mind status – “What do you think of?” Generally, brand builders strive for a mix of all three factors when attempting to create high visibility.Read more at location 204
Understand customers and frame the brand in such a way it addresses factors which are central to their lives. This is the concept of “hitting them where they live”.Read more at location 215
Rise above the clutter by having one single driving idea which resonates deeply with customers.Read more at location 216
Reach target customers as intimately as possible. To do that, you’ll need to segment the broader market very tightly. Brand building always falters when segmentation becomes fuzzy. Delight, surprise and, if necessary, shock the customerRead more at location 219
A good brand building organization will operate globally within a culture and organizational structure which nurtures and build the brand. That generally requires four elements: A brand champion who will oversee the long-term progress of the brand – avoiding ad-hoc decisions. An international communication system – allowing sharing of insights, ideas and best practices. A common global brand planning process. The ability to execute effective brand-building programs.Read more at location 277

Tuesday 11 December 2012

The Power of Habit by Charles Duhigg



Fascinating insights into how habit loops get triggered and how to adjust them, you can't break them just shift the harmful action to something else.


“All our life, so far as it has definite form, is but a mass of habits,” William James wrote in 1892.Read more at location 149
Squire’s studies would show that even someone who can’t remember his own age or almost anything else can develop habits that seem inconceivably complex—until you realize that everyone relies on similar neurological processes every day.Read more at location 290
One of Squire’s assistants visited the house one day and asked Eugene to draw a map of the block where he lived. He couldn’t do it. How about where his house was located on the street, she asked. He doodled a bit, then forgot the assignment. She asked him to point out which doorway led to the kitchen. Eugene looked around the room. He didn’t know, he said. She asked Eugene what he would do if he were hungry. He stood up, walked into the kitchen, opened a cabinet, and took down a jar of nuts.Read more at location 386
This process within our brains is a three-step loop. First, there is a cue, a trigger that tells your brain to go into automatic mode and which habit to use. Then there is the routine, which can be physical or mental or emotional. Finally, there is a reward, which helps your brain figure out if this particular loop is worth remembering for the future:Read more at location 490
Over time, this loop—cue, routine, reward; cue, routine, reward—becomes more and more automatic. The cue and reward become intertwined until a powerful sense of anticipation and craving emerges.Read more at location 495
Habits never really disappear. They’re encoded into the structures of our brain, and that’s a huge advantage for us, because it would be awful if we had to relearn how to drive after every vacation. The problem is that your brain can’t tell the difference between bad and good habits, and so if you have a bad one, it’s always lurking there, waiting for the right cues and rewards.”Read more at location 508
Researchers have learned that cues can be almost anything, from a visual trigger such as a candy bar or a television commercial to a certain place, a time of day, an emotion, a sequence of thoughts, or the company of particular people. Routines can be incredibly complex or fantastically simple (some habits, such as those related to emotions, are measured in milliseconds). Rewards can range from food or drugs that cause physical sensations, to emotional payoffs, such as the feelings of pride that accompany praise or self-congratulation.Read more at location 599
In one set of experiments, for example, researchers affiliated with the National Institute on Alcohol Abuse and Alcoholism trained mice to press levers in response to certain cues until the behavior became a habit. The mice were always rewarded with food. Then, the scientists poisoned the food so that it made the animals violently ill, or electrified the floor, so that when the mice walked toward their reward they received a shock. The mice knew the food and cage were dangerous—when they were offered the poisoned pellets in a bowl or saw the electrified floor panels, they stayed away. When they saw their old cues, however, they unthinkingly pressed the lever and ate the food, or they walked across the floor, even as they vomited or jumped from the electricity.Read more at location 607
Hopkins had helped establish toothbrushing as a daily activity. The secret to his success, Hopkins would later boast, was that he had found a certain kind of cue and reward that fueled a particular habit. It’s an alchemy so powerful that even today the basic principles are still used video game designers, food companies, hospitals, and millions of salesmen around the world. Eugene Pauly taught us about the habit loop, but it was Claude Hopkins that showed how new habits can be cultivated and grown. So what, exactly, did Hopkins do? He created a craving. And that craving, it turns out, is what makes cues and rewards work. That craving is what powers the habit loop.Read more at location 726
shelves. The key, he said, was that he had “learned the right human psychology.” That psychology was grounded in two basic rules: First, find a simple and obvious cue. Second, clearly define the rewards. If you get those elements right, Hopkins promised, it was like magic. Look at Pepsodent: He had identified a cue—tooth film—and a reward—beautiful teeth—that had persuaded millions to start a daily ritual.Read more at location 774
Studies of people who have successfully started new exercise routines, for instance, show they are more likely to stick with a workout plan if they choose a specific cue, such as running as soon as they get home from work, and a clear reward, such as a beer or an evening of guilt-free television.13 Research on dieting says creating new food habits requires a predetermined cue—such as planning menus in advance—and simple rewards for dieters when they stick to their intentions.14Read more at location 781
Schultz watched a new pattern emerge: craving. When Julio anticipated juice but didn’t receive it, a neurological pattern associated with desire and frustration erupted inside his skull. When Julio saw the cue, he started anticipating a juice-fueled joy. But if the juice didn’t arrive, that joy became a craving that, if unsatisfied, drove Julio to anger or depression.Read more at location 970
For those monkeys who hadn’t developed a strong habit, the distractions worked. They slid out of their chairs, left the room, and never looked back. They hadn’t learned to crave the juice. However, once a monkey had developed a habit—once its brain anticipated the reward—the distractions held no allure. The animal would sit there, watching the monitor and pressing the lever, over and over again, regardless of the offer of food or the opportunity to go outside. The anticipation and sense of craving was so overwhelming that the monkeys stayed glued to their screens, the same way a gambler will play slots long after he’s lost his winnings.Read more at location 976
“There is nothing programmed into our brains that makes us see a box of doughnuts and automatically want a sugary treat,” Schultz told me. “But once our brain learns that a doughnut box contains yummy sugar and other carbohydrates, it will start anticipating the sugar high. Our brains will push us toward the box. Then, if we don’t eat the doughnut, we’ll feel disappointed.”Read more at location 991
To understand this process, consider how Julio’s habit emerged. First, he saw a shape on the screen: Over time, Julio learned that the appearance of the shape meant it was time to execute a routine. So he touched the lever: As a result, Julio received a drop of blackberry juice. That’s basic learning. The habit only emerges once Julio begins craving the juice when he sees the cue. Once that craving exists, Julio will act automatically. He’ll follow the habit:Read more at location 995
Because Hopkins’s success was driven by the same factors that caused Julio the monkey to touch the lever and housewives to spray Febreze on freshly made beds. Pepsodent created a craving.Read more at location 1132
“Consumers need some kind of signal that a product is working,” Tracy Sinclair, who was a brand manager for Oral-B and Crest Kids Toothpaste, told me. “We can make toothpaste taste like anything—blueberries, green tea—and as long as it has a cool tingle, people feel like their mouth isRead more at location 1149
clean. The tingling doesn’t make the toothpaste work any better. It just convinces people it’s doing the job.”Read more at location 1152
Want to craft a new eating habit? When researchers affiliated with the National Weight Control Registry—a project involving more than six thousand people who have lost more than thirty pounds—looked at the habits of successful dieters, they found that 78 percent of them ate breakfast every morning, a meal cued by a time of day.32 But most of the successful dieters also envisioned a specific reward for sticking with their diet—a bikini they wanted to wear or the sense of pride they felt when they stepped on the scale each day—something they chose carefully and really wanted. They focused on the craving for that reward when temptations arose, cultivated the craving into a mild obsession. And their cravings for that reward, researchers found, crowded out the temptation to drop the diet. The craving drove the habit loop.33Read more at location 1157
“Champions don’t do extraordinary things,” Dungy would explain. “They do ordinary things, but they do them without thinking, too fast for the other team to react. They follow the habits they’ve learned.”Read more at location 1210
His coaching strategy embodied an axiom, a Golden Rule of habit change that study after study has shown is among the most powerful tools for creating change. Dungy recognized that you can never truly extinguish bad habits. Rather, to change a habit, you must keep the old cue, and deliver the old reward, but insert a new routine. That’s the rule: If you use the same cue, and provide the same reward, you can shift the routine and change the habit. Almost any behavior can be transformed if the cue and reward stay the same.Read more at location 1220
Asking patients to describe what triggers their habitual behavior is called awareness training, and like AA’s insistence on forcing alcoholics to recognize their cues, it’s the first step in habit reversal training. The tension that Mandy felt in her nails cued her nail biting habit.Read more at location 1434
It wasn’t God that mattered, the researchers figured out. It was belief itself that made a difference. Once people learned how to believe in something, that skill started spilling over to other parts of their lives, until they started believing they could change. Belief was the ingredient that made a reworked habit loop into a permanent behavior.Read more at location 1601
For most people who overhaul their lives, there are no seminal moments or life-altering disasters. There are simply communities—sometimes of just one other person—who make change believable.Read more at location 1678
But we do know that for habits to permanently change, people must believe that change is feasible. The same process that makes AA so effective—the power of a group to teach individuals how to believe—happens whenever people come together to help one another change. Belief is easier when it occurs within a community.Read more at location 1687
How do habits change? There is, unfortunately, no specific set of steps guaranteed to work for every person. We know that a habit cannot be eradicated—it must, instead, be replaced. And we know that habits are most malleable when the Golden Rule of habit change is applied: If we keep the same cue and the same reward, a new routine can be inserted. But that’s not enough. For a habit to stay changed, people must believe change is possible. And most often, that belief only emerges with the help of a group.Read more at location 1736
The evidence is clear: If you want to change a habit, you must find an alternative routine, and your odds of success go up dramatically when you commit to changing as part of a group. Belief is essential, and it grows out of a communal experience, even if that community is only as large as two people.Read more at location 1747
“Every time I looked at a different part of the government, I found these habits that seemed to explain why things were either succeeding or failing,” O’Neill told me. “The best agencies understood the importance of routines. The worst agencies were headed by people who never thought about it, and then wondered why no one followed their orders.”Read more at location 1909
Studies have documented that families who habitually eat dinner together seem to raise children with better homework skills, higher grades, greater emotional control, and more confidence.11 Making your bed every morning is correlated with better productivity, a greater sense of well-being, and stronger skills at sticking with a budget.12 It’s not that a family meal or a tidy bed causes better grades or less frivolous spending. But somehow those initial shifts start chain reactions that help other good habits take hold.Read more at location 1992
Poor teacher training, the officials working with O’Neill finally figured out, was a root cause of high infant mortality. If you asked doctors or public health officials for a plan to fight infant deaths, none of them would have suggested changing how teachers are trained. They wouldn’t have known there was a link. However, by teaching college students about biology, you made it possible for them to eventually pass on that knowledge to teenagers, who started eating healthier, and years later give birth to stronger babies. Today, the U.S. infant mortality rate is 68 percent lower than when O’Neill started the job.Read more at location 2173
Then, in 2009 a group of researchers funded by the National Institutes of Health published a study of a different approach to weight loss.24 They had assembled a group of sixteen hundred obese people and asked them to concentrate on writing down everything they ate at least one day per week. It was hard at first. The subjects forgot to carry their food journals, or would snack and not note it. Slowly, however, people started recording their meals once a week—and sometimes, more often. Many participants started keeping a daily food log. Eventually, it became a habit. Then, something unexpected happened. The participants started looking at their entries and finding patterns they didn’t know existed.Read more at location 2192
And at Alcoa, O’Neill’s legacy lives on. Even in his absence, the injury rate has continued to decline. In 2010, 82 percent of Alcoa locations didn’t lose one employee day due to injury, close to an all-time high. On average, workers are more likely to get injured at a software company, animating cartoons for movie studios, or doing taxes as an accountant than handling molten aluminum at Alcoa.Read more at location 2289
Students who exerted high levels of willpower were more likely to earn higher grades in their classes and gain admission into more selective schools. They had fewer absences and spent less time watching television and more hours on homework. “Highly self-disciplined adolescents outperformed their more impulsive peers on every academic-performance variable,” the researchers wrote. “Self-discipline predicted academic performance more robustly than did IQ. Self-discipline also predicted which students would improve their grades over the course of the school year, whereas IQ did not.… Self-discipline has a bigger effect on academic performance than does intellectual talent.”Read more at location 2371
“If you want to do something that requires willpower—like going for a run after work—you have to conserve your willpower muscle during the day,” Muraven told me. “If you use it up too early on tedious tasks like writing emails or filling out complicated and boring expense forms, all the strength will be gone by the time you get home.”Read more at location 2473
At KIPP, or the “Knowledge Is Power Program”—a collection of charter schools serving low-income students across the nation—teaching self-control is part of the schools’ philosophy. (A KIPP school in Philadelphia gave students shirts proclaiming “Don’t Eat the Marshmallow.”) Many of these schools have dramatically raised students’ test scores.12Read more at location 2510
Put another way, the patients’ plans were built around inflection points when they knew their pain—and thus the temptation to quit—would be strongest. The patients were telling themselves how they were going to make it over the hump.Read more at location 2576
When Muraven started exploring why students who had been treated kindly had more willpower he found that the key difference was the sense of control they had over their experience. “We’ve found this again and again,” Muraven told me. “When people are asked to do something that takes self-control, if they think they are doing it for personal reasons—if they feel like it’s a choice or something they enjoy because it helps someone else—it’s much less taxing. If they feel like they have no autonomy, if they’re just following orders, their willpower muscles get tired much faster. In both cases, people ignored the cookies. But when the students were treated like cogs, rather than people, it took a lot more willpower.”Read more at location 2703
Or, put in language that people use outside of theoretical economics, it may seem like most organizations make rational choices based on deliberate decision making, but that’s not really how companies operate at all. Instead, firms are guided by long-held organizational habits, patterns that often emerge from thousands of employees’ independent decisions.16 And these habits have more profound impacts than anyone previously understood.Read more at location 2881
Most economists are accustomed to treating companies as idyllic places where everyone is devoted to a common goal: making as much money as possible. Nelson and Winter pointed out that, in the real world, that’s not how things work at all. Companies aren’t big happy families where everyone plays together nicely. Rather, most workplaces are made up of fiefdoms where executives compete for power and credit, often in hidden skirmishes that make their own performances appear superior and their rivals’ seem worse.Read more at location 2906
Now, imagine what you would tell a new colleague who asked for advice about how to succeed at your firm. Your recommendations probably wouldn’t contain anything you’d find in the company’s handbook. Instead, the tips you would pass along—who is trustworthy; which secretaries have more clout than their bosses; how to manipulate the bureaucracy to get something done—are the habits you rely on every day to survive. If you could somehow diagram all your work habits—and the informal power structures, relationships, alliances, and conflicts they represent—and then overlay your diagram with diagrams prepared by your colleagues, it would create a map of your firm’s secret hierarchy, a guide to who knows how to make things happen and who never seems to get ahead of the ball.Read more at location 2940
Then, one afternoon, a few of Pole’s colleagues from the marketing department stopped by his desk. They were trying to figure out which of Target’s customers were pregnant based on their buying patterns, they said. Pregnant women and new parents, after all, are the holy grail of retail. There is almost no more profitable, product-hungry, price-insensitive group in existence. It’s not just diapers and wipes. People with infants are so tired that they’ll buy everything they need—juice and toilet paper, socks and magazines—wherever they purchase their bottles and formula. What’s more, if a new parent starts shopping at Target, they’ll keep coming back for years. Figuring out who was pregnant, in other words, could make Target millions of dollars.Read more at location 3279
Other companies analyze photos that consumers post online, cataloging if they are obese or skinny, short or tall, hairy or bald, and what kinds of products they might want to buy as a result.Read more at location 3358
we know you’ve got a Target Visa, a debit card, and we can tie that to your store purchases,” Pole told an audience of retail statisticians at a conference in 2010. The company can link about half of all in-store sales to a specific person, almost all online sales, and about a quarter of online browsing.Read more at location 3373
Andreasen wanted to know why these people had deviated from their usual patterns. What he discovered has become a pillar of modern marketing theory: People’s buying habits are more likely to change when they go through a major life event. When someone gets married, for example, they’re more likely to start buying a new type of coffee. When they move into a new house, they’re more apt to purchase a different kind of cereal. When they get divorced, there’s a higher chance they’ll start buying different brands of beer. Consumers going through major life events often don’t notice, or care, that their shopping patterns have shifted.7 However, retailers notice, and they care quite a bit.Read more at location 3411
having someone enter or leave the household,” Andreasen wrote, are life changes that make consumers more “vulnerable to intervention by marketers.” And what’s the biggest life event for most people? What causes the greatest disruption and “vulnerability to marketing interventions”? Having a baby. There’s almost no greater upheaval for most customers than the arrival of a child. As a result, new parents’ habits are more flexible at that moment than at almost any other period in an adult’s life. So for companies, pregnant women are gold mines.Read more at location 3419
New parents are so valuable that major retailers will do almost anything to find them, including going inside maternity wards, even if their products have nothing to do with infants.Read more at location 3436
Disney estimates the North American new baby market is worth $36.3 billion a year.10Read more at location 3441
in 1941, they set themselves a goal of systematically identifying the cultural barriers that discouraged Americans from eating organ meat. In all, more than two hundred studies were eventually published, and at their core, they all contained a similar finding: To change people’s diets, the exotic must be made familiar. And to do that, you must camouflage it in everyday garb22Read more at location 3642
“With the pregnancy products, though, we learned that some women react badly. Then we started mixing in all these ads for things we knew pregnant women would never buy, so the baby ads looked random. We’d put an ad for a lawnmower next to diapers. We’d put a coupon for wineglasses next to infant clothes. That way, it looked like all the products were chosen by chance.Read more at location 3722
Whether selling a new song, a new food, or a new crib, the lesson is the same: If you dress a new something in old habits, it’s easier for the public to accept it. IV. The usefulness of this lesson isn’t limited to large corporations, government agencies, or radio companies hoping to manipulate our tastes. These same insights can be used to change how we live.Read more at location 3740
A movement starts because of the social habits of friendship and the strong ties between close acquaintances. It grows because of the habits of a community, and the weak ties that hold neighborhoods and clans together. And it endures because a movement’s leaders give participants new habits that create a fresh sense of identity and a feeling of ownership. Usually, only when all three parts of this process are fulfilled can a movement become self-propelling and reach a critical mass.Read more at location 3835
liked. “Rosa Parks was one of those rare people of whom everyone agreed that she gave more than she got,”Read more at location 3878
Parks’s friends, in contrast, spanned Montgomery’s social and economic hierarchies. She had what sociologists call “strong ties”—firsthand relationships—with dozens of groups throughout Montgomery that didn’t usually come into contact with one another. “This was absolutely key,” Branch said. “Rosa Parks transcended the social stratifications of the black community and Montgomery as a whole. She was friends with field hands and college professors.” And the power of those friendships became apparent as soon as Parks landed in jail.Read more at location 3889
There’s a natural instinct embedded in friendship, a sympathy that makes us willing to fight for someone we like when they are treated unjustly. Studies show that people have no problem ignoring strangers’ injuries, but when a friend is insulted, our sense of outrage is enough to overcome the inertia that usually makes protests hard to organize. When Parks’s friends learned about her arrest and the boycott, the social habits of friendship—the natural inclination to help someone we respect—kicked in.Read more at location 3921
She was a normal mom, with the same highs and lows as everyone else. So the compulsion she felt to gamble—the insistent pull that made her feel distracted or irritable on days when she didn’t visit the casino, the way she found herself thinking about it all the time, the rush she felt on a good run—caught her completely off guard. It was a new sensation, so unexpected that she hardly knew it was a problem until it had taken hold of her life. In retrospect, it seemed like there had been no dividing line. One day it was fun, and the next it was uncontrollable.Read more at location 4409
Gamblers who keep betting after near wins are what make casinos, racetracks, and state lotteries so profitable. “Adding a near miss to a lottery is like pouring jet fuel on a fire,” said a state lottery consultant who spoke to me on the condition of anonymity. “You want to know why sales have exploded? Every other scratch-off ticket is designed to make you feel like you almost won.”Read more at location 4675
Habits are not as simple as they appear. As I’ve tried to demonstrate throughout this book, habits—even once they are rooted in our minds—aren’t destiny. We can choose our habits, once we know how. Everything we know about habits, from neurologists studying amnesiacs and organizational experts remaking companies, is that any of them can be changed, if you understand how they function.Read more at location 4758
Some are simple and others are complex, drawing upon emotional triggers and offering subtle neurochemical prizes. But every habit, no matter its complexity, is malleable. The most addicted alcoholics can become sober. The most dysfunctional companies can transform themselves. A high school dropout can become a successful manager.Read more at location 4763
The framework described in this appendix is an attempt to distill, in a very basic way, the tactics that researchers have found for diagnosing and shaping habits within our own lives. This isn’t meant to be comprehensive. This is merely a practical guide, a place to start. And paired with deeper lessons from this book’s chapters, it’s a manual for where to go next. Change might not be fast and it isn’t always easy. But with time and effort, almost any habit can be reshaped.Read more at location 4858