iPhone Deja vu

Ads proclaim, “The iPhone killer is here!” People are lining up,, eagerly waiting to be the first with the coolest new phone in the world. It sounds like déjà vu. This time, however, it’s not just happening in the US; it’s happening all around the world—and at the same time.

What product launch can be so big to get people in 21 countries to camp outside of their favorite store? Apples re-launch of the iPhone, of course.

With Apple’s launch of the 3G iPhone, the company is making their powerful brand even more accessible to the entire world. Apple’s worldwide success is not a coincidence; their brand stays true to itself across all of its touch points. With the iPhone’s 3G capabilities, multiple language keyboards, an exchange program that promises to be easy for all to use, and a beautiful design, it is no surprise that Apple is getting the same reaction as they always do.

New Zealand

The phone first went on sale in New Zealand where hundreds of people lined up outside stores in the country’s main cities to snap it up right at midnight (8 a.m. Thursday on the East coast ).

Japan

iPhone fever was strong, More than 1,000 people lined up at the Softbank Corp. store in Tokyo. The phone quickly sold out. Although Japan has phones that provide significantly greater functionality than the iPhone, people still gravitated to the iPhone’s magical allure.

“Just look at this obviously innovative design,” Yuki Kurita, age 23, said as he emerged from buying his iPhone, carrying bags of clothing and a skateboard he had used as a chair during his wait outside the Tokyo store. ”I am so thrilled just thinking about how I get to touch this.”

US: New York

Enthusiasm was running high in anticipation for the 8 a.m. launch of the new phone with a line numbering in the hundreds encircled the block at Apple’s Fifth Avenue store.

Apple learned a lot from their experience with the iPod and its dominance in the mp3 market. They are taking the same approach with the iPhone and making it the only real choice in the phone market. “The iPhone is just a superior user experience,” said Alex Cavallo, age 24, lined up at the Fifth Avenue store.

Apple has become a master at building anticipation and delivering killer products. This new release of the iPhone not only catered to those who didn’t have an iPhone but also for those who already have one. With the release of third party applications even the 1st Generation iPhone users have new toys to play with.

It’s not Déjà vu, and it certainly is not a coincidence. Apple announced after the first weekend that 1 million iPhone 3G devices have been sold, with earnings being reported at around $350 million in the first weekend. Apple continues to dominate their markets because they continue to provide their customers with unique products and experiences that can’t be found anywhere else in the world.

August 20, 2008 by

Making the Case: Is eBay worthy of Cult Brand status?

I first started using eBay when I was in graduate school. Being a hopelessly price-conscious student, I was always looking for the best deal. Alas, I found my way to eBay. After winning my first auction, I was hooked.

The thrill of winning an auction is like hitting the jackpot. You place your bid, hawkishly watch the official eBay clock, and monitor the other bidders every move. Even after getting embroiled in a bidding war and losing by a mere 50 cents, you walk away from your computer and silently remark, “Good game.”

What I love most about my eBay experience is the absolute accountability buyers and sellers have for their actions. With their simple rating system, you leave positive, neutral, or negative feedback, depending on the transaction. If a seller promotes false advertising or doesn’t follow through with their promises, they are rated accordingly. This gives buyers the power to decide whether or not to patronize a seller. Customer service is built in, and it upholds the gold standard to consumerism.

But does my love for eBay substantiate its spot as a Cult Brand? Or is it merely a powerful, iconic brand? Let’s see …

The Golden Rule of Courage: In 1995, Omidyar launched eBay in an experiment to see how “equal access to information and opportunities would affect the efficiency of a marketplace.” He envisioned an online market that allowed real people to compete head-to-head with big corporations. Omidyar, disturbed about the potential takeover of big businesses, stated “I wanted to give the power of the market back to individuals.” Through his revolutionary vision, Omidyar successfully tackled the corporations and did exactly what he intended to do—he leveled the playing field and helped ordinary folks like you and me control the marketplace.

The Golden Rule of Fun: The proverb, “One man’s trash is another man’s treasure,” echoes throughout the portals of eBay. If you’ve ever held a garage sale, tag sale, or rummage sale, you experientially know the joys of getting rid of your “trash” and being able to make money in the process. If you’ve ever been to one of these sales, you also know the thrills of finding that certain “treasure” you’ve always been looking for. It’s the high of the hunt and the pleasure of the purge that makes buying and selling more than a mere transaction.

The Golden Rule of Openness: Prior to eBay, auction houses conjured up associations to elite organizations such as Christie’s and Sotheby’s, showcasing items that were only accessible to the top echelons of wealth. eBay brought the auction house to the people’s doorstep and gave them a community that was different, approachable, and inclusive. If you’re looking to sell your Goonies lunchbox, your Prada handbag, your vintage Bulova watch, your Star Wars collectibles, or even your house, post it on eBay. There’s an eager buyer out there somewhere. Whether you’re an individual buyer or seller, a small business, or an enterprise—whether you want to shop for the fun of it or harness eBay as your primary source of income—the eBay community welcomes you with open arms.

The Golden Rule of Freedom: eBay, by overturning traditional commerce, gave power back to the consumers who determined what price they were willing to pay. Not only did eBay promote personal freedom for its community of buyers, it did the same for its community of sellers. Can you think of another company that has influenced hundreds of thousands of people to create their own businesses? eBay inspires this process by offering free online courses through the eBay University Learning Center where members learn about the art of buying and selling. The entrepreneurial spirit reigns supreme at eBay, where the phrase “becoming your own boss” is not just paid lip service, but a sweet reality.

The Golden Rules of Contribution: Since the beginning, eBay members have embraced a powerful spirit of camaraderie. The eBay Community hub is the online forum where members join “neighborhoods” to connect, find experienced mentors, share their best practices, or just socialize. Whether you’re a dog lover, a coffee connoisseur, a jewelry collector, or a motorcycle maven, eBay connects you to like-minded folks who share similar passions.

Most importantly, philanthropy has always been an instrumental part of eBay since its inception. In 1998, eBay Foundation was established to support the economic and social enterprises of local communities. Staying true to their mission, the Foundation has provided $2 million in grants each year to sustain charitable giving and volunteer efforts around the world.

The Golden Rule of Human Needs: Listening to the Choir: Former CEO Margaret Whitman stated, “The best ideas and the best feedback come from our community of users.” Ten times a year, eBay invites buyers and sellers to the corporate headquarters in San Jose to take part in their “Voices” program. It’s the ultimate forum where members voice their likes and dislikes about their eBay experiences, and are actually heard, sometimes with the CEO’s own ears. These marathon focus groups often last two days and nights, and contact with Voices members continues even after the program’s end.

A recent effect was the revised rating system, which established that buyers can no longer receive negative or neutral feedback from sellers. This allows buyers to have more freedom in providing honest and accurate feedback without fear of retribution. This unilateral feature has undoubtedly made some sellers nervous, given the occasional scam artist and remorseful buyer. However, the new rating system appears to be raising the bar for customer service and pressing sellers to provide the best possible online shopping experience.

A final thought to ponder: There are more than 150 million people around the world who trust virtual strangers with every eBay transaction. Trust is the driving force, the essential ingredient that makes eBay work so effectively. Without it, the entire system would collapse. Abraham Lincoln once said, “The people when rightly and fully trusted will return the trust.” Thirteen years after Omidyar’s modest experiment, eBay has proved time and time again that the reciprocity of trust is at the heart of its virtual community.

Happy Bidding, and remember, you found it on eBay!

Where to go from here
August 18, 2008 by

Godin, Are You Serious?

Leander Kahney’s latest book Inside Steve’s Brain, a look at what makes Steve Jobs tick, made me stop, jump out of my seat, and shout, “Are you serious?” It wasn’t caused by a sudden revelation or a scandal; it came from a passage clipped from an interview with Seth Godin:

Not everyone loves Apple’s advertising. Seth Godin, author of several best-sellers about marketing, said Apple’s advertising has often been mediocre. “I’m underwhelmed by most of Apple’s advertising,” he told me by phone from his office in New York. “It’s not been effective. Apple’s advertising is more about pandering to the insiders than acquiring new users. If you have a Mac, you love Apple’s advertising because it says ‘I’m smarter than you.’ If you don’t have a Mac it says ‘you’re stupid.’”

Apple’s advertising is not effective. Really? Are you serious?

On an anecdotal level, I’m sure most of you know someone who has switched to an Apple computer in the past few years. But, how many of you know someone who has switched back? I don’t. Recently I watched a friend, who doesn’t own a cell phone, drop to floor in the middle of an iPhone commercial and start to proclaim how much he needs one.

Anecdotes are one thing and market numbers are another. But in this case, they both show the same thing. The first fiscal quarter of 2008 showed a 35% year-over-year growth in revenue, up $2.5 billion from the previous December, posting the most successful quarter in Apple’s history. The second fiscal quarter results surpassed Apple’s first quarter predictions with a 32.9% year-over-year growth, marking the strongest March quarter in Apple’s history. And, remember, this growth is occurring during an economic downturn.

Surely this growth isn’t coming at the hands of lifelong, hardcore Apple loyalists. Twenty-five percent of our office last year used Apple Computers; this year it’s 100%. We’re not the only ones: Investment bank Morgan Stanley reported that 40% of college students plan to make their next purchase an Apple computer, a full 25% increase in that market share over current statistics, which is likely to have an effect on the work force after these students graduate. And, even Godin has recognized how ubiquitous Apple computers have become.

If it’s not the advertising, then, surely it must be the technology. But, if the history of inventions is any indication, the best technology doesn’t always win. And, it seems Godin would agree. In a 2006 talk for Google, Godin told Google: “What I want to sell you really hard on is not that technology wins, ‘cause I don’t think it does, I think what technology does is that it gives you a shot at marketing. And, if you don’t buy into that then I believe that the company sooner rather than later is going to smash into a wall.”

So Godin’s essentially saying that Apple’s advertising isn’t effective, but technology only succeeds if the marketing works. And, Apple’s obviously succeeding. I’m not sure I follow the logic.

Rather than being ineffective, I’d consider Apple’s advertising brilliant. Most new converts got hooked into the Apple brand through the iPod and the silhouette-dancing ads. These ads are some of the most inviting ads in the last decade: anyone can picture themselves as the faceless figures rocking out to their own tunes. The message is obvious: if you love music, come in.

Once you’ve already bought into the brand, why wouldn’t you want to stand out as a person making the best choice? This is what the advertising for these computers reflects: Apple is the better choice. And, sooner or later, if you don’t already have an Apple computer and you’ve already bought into the Apple brand, you’re going to want one to go along with that iPod or iPhone. Apple stores are even set up with this in mind: try the iPod or iPhone and while you’re at it why don’t you play with that pretty computer sitting next to it.

Apple’s advertising, as I see it, is really a two-pronged approach: (1) invite you in with the iPod advertising and (2) keep you there with the computer advertising. One makes you want to come in, and the other makes you want to stay there, all while keeping true to the brand’s identity.

Ineffective? Anything but.

April 11, 2008 by

Talk is Cheap. Gossip is Priceless

Beware of Word-of-Mouth Marketing

ORLANDO, Fla. – From water-cooler conversations about American Idol to once-popular-but-quickly-forgotten products like Beanie Babies, what makes consumers talk about some brands and not others? One study by the Keller Fay Group, a word-of-mouth market research company, revealed that over 32 million consumers are considered WOM leaders and generate 1.5 times more conversation about products than a normal consumer. As the emphasis on word-of-mouth marketing increases are there secrets to harnessing the power of word-of-mouth marketing?

Marketing expert and partner at Nonbox Consulting, BJ Bueno believes the answer resides in the kind of experiences a product or service creates for a customer. His latest release, Why We Talk: The Truth Behind Word-of-Mouth (Creative Crayon Publishers, February 2007, ISBN: 0971481539, $24.95), provides seven principles to creating amazing customer experiences–the kind of experiences that prompt customers to talk. Most marketers have focused on WHAT people talk about but have ignored WHY people talk. Based on extensive research into psychology, marketing, and consumer behavior, Why We Talk explores what motivates consumers to spread the word about a company and its products.

“Perhaps the most important skill in business is not strategic planning, or marketing savvy, or risk management, or investment analysis. Rather it is simply the ability to LISTEN,” says Darryl Cobbin, Chief Marketing Officer and Vice President at Boost Mobile. “Why We Talk compellingly and elegantly illuminates why listening to your customers with your eyes, your heart, and your instincts is more important than listening exclusively with your ears.”

As a guest, Bueno can discuss:

  • How to generate authentic product gossip
  • The seven principles to sparking customer conversations
  • Why hiring “fake fans” does not work
  • How to successfully deliver your message in our “hypersonic-word-of-mouth world”

Bueno is the co-author of the popular marketing book, The Power of Cult Branding, which received rave reviews from leading marketing mavens like Al Reis, Jay Conrad Levinson and Jeffrey Fox. Bueno is also a partner in Nonbox Consulting, a consumer insight think tank located in Orlando, Fla. He is a member of the Retail Advertising & Marketing Association (RAMA) and is on the board of the Chief Marketing Officers (CMO) for top international retailers. He has advised companies like Kohl’s Department Store, LA Lakers, Thomas Nelson Publisher, Scheels, and the Magic of David Copperfield. Bueno currently lives in Orlando, Fla.

For more information about Why We Talk: The Truth Behind Word-of-Mouth, please visit cultbranding.com/blog.

June 18, 2007 by

The Forces Behind Customer Loyalty

Understanding how branding influences decisions

(ORLANDO, Fla.) What attracts people to a particular brand? What motivates their loyalty to a product, or to the brands their parents bought? Why do Oprah, Apple, Jimmy Buffet, WWE, and Star Trek have such a huge following? Marketing consultant and cult- branding expert BJ Bueno’s book, The Power of Cult Branding: How 9 Magnetic Brands Turned Customers into Loyal Followers (Random House/Crown Business, ISBN: 0-7615-3694-9, $24.95), is a fascinating look at how some of the most popular brands created the right combination of position and branding to develop remarkably loyal fans.

The Power of Cult Branding is a fantastic guide for marketers or anyone involved in business wishing to reach their target audience and turn them into repeat customers. It is a smart and savvy presentation of what it takes for a brand to win the positioning battle in today’s crowded marketplace. By presenting case studies of highly successful brands such as Harley Davidson, Volkswagen, and Linux, the book uses tangible examples of success that all marketers aspire to achieve.

“A masterfully instructive book on what it really takes to build a powerful brand today. It should be required reading for students at the country’s top business schools. I recommend it wholeheartedly to entrepreneurs, executives, visionaries, and managers, who should not just read it, but also live by it!” – Edward P. “Ned” Grace III, managing director, Grace Venture Partners

As a guest, Bueno can discuss:

  • What makes a product fascinating to consumers
  • The psychology of marketing and branding
  • The values upon which powerful brands are built and how they connect with human needs
  • The roles customers play in determining whether a brand succeeds
  • Why customers and stores become crazed during the holiday shopping season
  • The branding war during the holidays

Bueno is an innovative marketing consultant and cult-branding expert. He has successfully delivered keynote speeches to the Harvard Business School and other top universities throughout the world, as well as Fortune 500 companies. He is a member of the Retail Advertising & Marketing Association (RAMA) and on the Chief Marketing Officers (CMO) board for top international retailers, which advises companies like Target, Wal-Mart, Washington Mutual, Toys-R-Us and JCPenney. Bueno currently lives in Orlando, Fla. where he enjoys studying and helping clients connect and build relationships with their customers.

For more information, please visit: cultbranding.com/blog

March 12, 2006 by