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BJ Bueno

The Power of Cult Branding – Book

How 9 Magnetic Brands Turned Customers Into Loyal Followers (and Yours Can, Too!)

(Random House 2002)

>>Like religious cults that attract thousands of devoted disciples, is it possible for company brands to build legions of loyal followers?

>>Can certain products with the right combination of positioning and branding take on magnetic characteristics and galvanize die-hard customers who become walking, talking viral marketers? It’s a marketer’s dream come true!

>>Can your company harness the power of Cult Branding without blowing a fortune on advertising?

According to authors Matthew W. Ragas and Bolivar J. Bueno, the answer is “Yes.” In fact, you need not look much further than a Harley-Davidson rally, a Star Trek convention, or a Jimmy Buffett concert to see the Cult Branding phenomenon at work: thousands of passionate, faithful fans spreading the good word and spending lots of money.Not all brands have the dash of edginess, the devoted fan base, or the niche positioning to manifest Cult Brands. But those that do tend to share similar characteristics, the Seven Golden Rules of Cult Branding, that make them successful.Through meticulous research and scores of interviews, Ragas and Bueno have uncovered the remarkable, untold stories behind nine very successful Cult Brands:

These nine brands follow the Seven Golden Rules and have millions of fans and billions of dollars in revenue to show for it. Now, you can learn first hand what these special brands did to set themselves apart and how to apply the Seven Golden Rules to your own marketing strategies.Written for advertisers, marketers, sales executives, and business owners who want to thrive in an increasingly competitive marketplace, The Power of Cult Branding is the ultimate guide to creating a loyal core of repeat customers and winning the positioning battle.

 

Praise for the Power of Cult Branding

“Who wants a cult brand? After reading The Power of Cult Branding, you are going to want to create one as soon as possible. The logic, the strategies, and the tactics are spelled out for you in comprehensive detail.”

—Al Ries, author of The 22 Immutable Laws of Branding and chairman, Ries & Ries Inc.

 

“Ragas and Bueno have not only demystified branding in their brilliant book but also revealed the heart of how to do it with aplomb. And, at the same time, it’s fun to read.”

—Jay Conrad Levinson, author of the Guerrilla Marketing series

 

“Cult brands, while not easy to create, are among the most powerful. This book will show the way.”

—Jack Trout, coauthor of Positioning: The Battle for Your Mind and president, Trout & Partners Ltd.

 

“The most insightful look at brand positioning since The 22 Immutable Laws of Marketing.”

—Roy H. Williams, author of The Wizard of Ads series

So what is branding really all about?

Listen in as brand expert BJ Bueno educates the Newspaper Association of America on the essence of branding.

Harness the Power of Your Brand (Pt. 1)



Harness the Power of Your Brand (Pt. 2)

The Organic Brand

How Misperception Can Hurt Your Business

Whether you’re a health nut or hate the thought of eating anything green, you’ve no doubt noticed a growing awareness of organic foods. What was once reserved only for the specialty health food stores catering to the granola community are now intermingled on the average supermarket shelves with products like Sweet N’ Lo, Diet Sprite, and Crest toothpaste.

What’s your perception of organic foods? What facial expressions do you think you’ll find if you ask a random sample of average people how they feel about organic foods? For many, the assumption is that an organic item might be healthy, but it is invariably less tasty. Actually, the assumption is generally that organic food tastes like crap.

Do you know what it actually means for a product to be “organic?” Despite common perception, a product holding the United States Department of Agriculture stamp of organic approval tells you nothing about the taste of the product. Here’s what it means from the USDA website: “Organic food is produced without using most conventional pesticides; fertilizers made with synthetic ingredients or sewage sludge; bioengineering; or ionizing radiation. Before a product can be labeled ‘organic,’ a Government-approved certifier inspects the farm where the food is grown to make sure the farmer is following all the rules necessary to meet USDA organic standards.”

Essentially, organic foods don’t have pesticides or chemicals in them. Organic foods can still have sugar (organic sugar), milk (organic milk), or any other ingredient that might contribute to the taste of the product. Don’t believe it? Try Paul Newman Organics’ version of Oreos. I was amazed too—they’re just as good!!!

Remember what we discussed a few issues ago? We said that what a person perceives is that person’s reality and perception is unique for each individual. We each hold different perceptual filters based on factors like beliefs, values, behaviors, experiences and senses. The organic food industry has a unique branding opportunity for raising the awareness of organic foods for the organic farmers.

Misperception can hurt your brand, especially when it starts from within the industry. The current perception says: Organic = Tastes Like Crap. This reality should send a signal to everyone in the industry to communicate more clearly to the customer. Fortunate for the organic industry, increased awareness for disease-free, healthy living will continue to drive sales despite the poor brand image. As a consequence of good quality, tasty organic products, word-of-mouth will continue to increase the awareness of this misperception. The newspaper industry, however, doesn’t afford this luxury.

Intel Corporation was faced with a similar challenge because no one had any awareness of what the Intel processing chip was—or did. Intel sells a computer chip. Ask most people to locate the Intel chip in an open computer and they’ll shrug their shoulders. most people can’t even show you what “Intel inside.” Yet, customers want their computers to say, “Intel Inside.” Simple. Intel did an amazing job of building a brand outside the computer box.

The newspaper industry faces a similar problem. The perception is misaligned. Readers are transitioning into different mediums. Newer mediums like the Internet, PDAs, cell phones, interactive TV have positioned newspaper as old and old fashion, slow and all the other nice names I am sure you know more than I. As and outsider to the newspaper industry, I see numerous opportunities to build powerful, meaningful brands. Today, more than ever, people are interested in meaningful interactions, and are no longer in search for “stuff,” but for experiences.

The newspaper industry has just started to discover itself outside of a physical product. This endeavor is not about building something that is not there, but like the Organic movement, just embracing what you are already. It takes courage to break the mold of an industry because there are many conventions to overcome. For example, the newspaper is inside of the brand, not the brand inside of the newspaper. Someone has to have the courage to break away from past and build for the future.

Onward!

Where to go from here

Let’s Give ’em Something to Talk About

Amazing customer experiences will start conversations

ORLANDO, Fla. – Last summer, in an article titled, “I Sold it Through the Grapevine,” Business Week reported that marketing powerhouse companies like Procter & Gable were using legions of moms to help promote their products. In behind-the-scenes word-of-mouth campaigns, these moms share products and coupons with co-workers and friends based on talking points suggested to them by the company, helping the company introduce new products and extol the virtues of current products.

BJ Bueno, marketing expert and a partner at Nonbox Consulting, believes hiring “pretend fans” often backfires. His newest release, Why We Talk: The Truth Behind Word-of-Mouth (Creative Crayon Publishers, February 2007, ISBN: 0971481539, $24.95) explores word-of-mouth marketing and how to generate, not manipulate, customer conversation. Bueno introduces seven principles to create amazing customer experiences and generate authentic product gossip, steering marketers away from buzz agents and freebies, as well as other techniques that do not build lasting brands.

As word-of-mouth becomes a more accepted and popular marketing practice, most marketers have focused on WHAT people talk about but have failed to address 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. Bueno advocates learning how to serve your customer better, instead of investing time and energy trying to manipulate and influence customers to talk.

There is no magic formula to get people to start jumping around and telling the world about a new product or service,” says Bueno. “If you give someone something to talk about, they will. Create experiences for your customers through your products and services that give them something to talk about.”

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., which provides consulting services for companies interested in discovering the secrets to creating beloved brands. 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.


The 7 Principles of Why We Talk

So how do you produce authentic word-of-mouth? You work hard to create amazing experiences for your customers—experiences worth talking about. Here are seven principles to help you better understand your customers’ World of Talk:

1 – The Principle of Integrity: They know that you know that they know

People know you have an intention and that you know that they know you have an intention. What this means from an advertising standpoint is they know you are trying to sell them a product, and they know that you know that they know you’re trying to persuade them. Unless you are very adept at meeting their needs, you’re going to encounter an impenetrable barrier. Don’t think you can deceive them into believing they’re not being coerced into buying a product. Even if you think the advertising is solid, they’re still going to know. People are much better at detecting deception than they are at being the deceiver.

2 – The Principle of Status: People share what makes them look good

Both negative and positive information reflect positively on the person conveying the information, as both are useful to decision-making. Negative information is perhaps more useful because it is perceived as being highly diagnostic. Supplying accurate information benefits the conveyer, as it confers status upon the conveyor. Supplying inaccurate information quickly erodes the reputation of the conveyer.

3 – The Principle of Cool: Ride in front of the “Cool Wave” or wipe out

In the Hypersonic Word-of-Mouth World, the search for cool is quickly focusing on The Ignored. This means if you see something cool today, you can almost bet it’s on its way out and something else will be cool very soon. But remember, in not-too-much-time, that won’t be cool either. Pogs—the milkcap game that originated in the 1920s—reemerged and was all the rage in the early ‘90s, but has now all but disappeared. Technological advances in communication shorten the cycles of “cool.” Listen to your customer. In order to be on top, you must know what’s cool before it becomes cool. Just like a wave, if you jump too late, you’re not going to catch it.

4 – The Principle of Groups: Small groups—the critical few—dictate the large

Customers can be broken down into two subgroups: the trivial many and the critical few. Avoid focusing on the trivial many and find out who comprises your brand’s critical few. They are the ones who truly influence their subcultures. The same principle that applies to individuals applies to groups—you need the influence of many small groups to create a movement.
A small group of particular importance is teenagers. Do not ignore them because they don’t fall within your target demographic; when you’re not looking, they will eat you alive. They are more Internet-savvy than their parents. They know how to access information, and their parents rely on their opinions about purchasing decisions because teens know how to get around on the Internet. In many respects, teens are both the gatekeeper and the bridge to influencing your customer.

5 – The Principle of Influence: Everyone is influential—especially on the Internet

Connectivity changed the landscape of influence. Everyone is able to influence people in some way, on some subject. No one can affect people’s decisions in every category. Those who provide more useful input gain more status, and are more likely to be listened to. Knowledge is power, especially on the Internet, where normal social cues like body expressions and facial reactions are not in place. As a result, anyone can say what he or she is thinking. Comments are judged by their accuracy and value rather than the person’s background.

6 – The Principle of Meaning: People talk about what’s meaningful to them

Listen carefully to the critical few to find out what they care about, and give them something to talk about. If you can find ways to amuse them, surprise them, or give them information that will give them esteem among their peers, they will talk. Everyone else will follow.

7 – The Principle of Surprise: People love to share what surprised them

Never underestimate the power of surprise. Let the consumer discover the best thing about you instead of hearing you shout it from the rooftops.

The above is an excerpt from Why We Talk: The Truth Behind Word-of-Mouth. (c) 2007 by Bolivar J. Bueno.

Beware of “Word-Of-Mouth Marketer”

Talk is cheap. Gossip is priceless. And while manipulated talk can be useful if you’re selling a film or a novelty that doesn’t need any staying power, it’s practically worthless if you’re hoping to build a brand.

Yet Word-of-Mouth (WOM) Marketing has become all the rage, with “water- cooler talk” becoming a barometer companies use to judge the success of their marketing and advertising campaigns. What were our numbers yesterday? How can we improve them today? If we can’t meet the short-term goals, who cares about the future? Unfortunately, these companies haven’t stopped to consider how driving short-term numbers may be killing their opportunity for long-term success.

Word-of-mouth is like any other form of media. Television is favored for its combination of sight and sound. Billboards are revered for their stopping power, print for its permanency. All forms of media, including word-of-mouth, disseminate information. Word-of-mouth is different from all other forms of media, however, because it is owned by the consumer. They control its content.

Some word-of-mouth marketers claim you benefit from word-of-mouth during specific windows of opportunity. That’s nonsense. Promotions and events have windows; brands have permanence. As long as consumers are benefiting from a relevant experience with the brand, they will talk. Consumers don’t need to be given a marketing cue card; they need an environment that allows them to draw their own conclusions and to define their own experience.

The problem with modern marketing is its overwhelming urge to quantify everything. If it can be measured, you can charge for it, and yes, size does matter: the bigger the measurable impact, the larger the monetary compensation for generating the result. The newest playground for metric maniacs is word-of-mouth marketing. The Word-of-Mouth Marketing Association declared in 2005 that it was now using word-of-mouth units to measure the effect of word-of-mouth on ROI. This is further proof that, to its own detriment, marketing has evolved into an industry more focused on making short-term money than on making long-term sense.

Numerous books on poker have been written to teach players the best ways to behave in certain situations, based on available statistics. However, watch any game and you’ll see that even experts stray from these rules. Why? Because the players in the game aren’t playing statistics, they’re playing other people. The best way to play isn’t always revealed by statistics.

Statistics reveal a glimpse of where people are, but they don’t tell you where people are going or how they will get there. It’s one thing to know what movies are making the most money, but that’s not the same as predicting which ones are going to make the most money. If someone could forecast that, the movie studios would be a lot happier.

Look at what’s happening: Big brands are paying big money to create “buzz” about their products. These companies then insist they don’t pay people to talk, which technically is true—they only give their “buzz” agents free products, coupons, and “points” if they do their homework and report back to the mother ship.

What do you think happens when the buzz campaign ends? Do you really think consumers keep yakking about a product when the incentive to do so disappears? Worse yet, the next product sample shows up in the mail and they’re asked to buzz on a new client’s behalf. That’s not pure word-of-mouth. It’s promotion attempting to use word-of-mouth as a media vehicle, which is no different than using radio, television, or direct mail. Ultimately, it runs into a dead end and is enormously risky for companies wanting to build lasting brands.

Promoting products is a totally different discipline than creating brands. True word-of-mouth is totally different than word-of-mouth marketing. Marketers are in control of communicating a message, but consumers are in control of building brands.

So pick your poison. If you want to sell product in the short term and aren’t worried about building a brand, if you’ve exhausted every other medium known to mankind, pick up the phone and call any of the self-proclaimed word-of-mouth marketers and buzz practitioners. They’ve got the metrics on their side.

But be cautioned: Once you pollute the word-of-mouth pipeline, there’s no turning back. If you’re marketing movies, selling novelties or liquidating books, have at it—these things are not likely to become brands and you will not need the power of word-of-mouth in its purest form. If you are relying on the consumer to turn you into a brand that is embraced by a legion of loyal evangelists, however, don’t pollute the best marketing tool ever to roam God’s green earth.

The above is an excerpt from Why We Talk: The Truth Behind Word-of-Mouth. (c) 2007 by Bolivar J. Bueno.

Customer Loyalty Research Consultancy Unveils New Brand Model for the Retail Sector

Innovative brand model uncovers the psychological motivators that drive the purchase behavior of large businesses’ most profitable customers.

Orlando, Florida, March 18, 2009 – The Cult Branding Company, a premier brand loyalty research firm led by brand strategist BJ Bueno, recently unveiled a new innovative brand model. Dubbed “Brand Lover Model 2.0,” this complex methodology centers on uncovering a business’s best customers, or Brand Lovers.

“Smart retailers know that brand loyalty is the primary driver of profitability,” Bueno explains, “but unraveling the loyalty code has, until now, remained elusive.” To uncover the reasons why some customers build long-lasting relationships with certain brands, Bueno and his team borrowed tools and insights from humanistic psychology, psychoanalysis and comparative mythology.

“Brand Lover Model 2.0 helps retailers decode the key psychological drivers of a business’s best customers,” says Bueno. This comprehensive qualitative and quantitative analysis takes approximately 90 days, limiting the number of clients the 9-person Orlando-based firm can serve each year.

Numerous successful businesses are embracing the Brand Lover Model, including Kohl’s Department Stores, Scheels and Turner Classic Movies (TCM).

ABOUT BJ BUENO – Branding strategist, lecturer, and author BJ Bueno pioneered the Cult Branding concept for marketers, documenting his research as the co-author of the highly-acclaimed The Power of Cult Branding(Random House, 2002). Bueno advises major retailers as a board member of the Retail Advertising & Marketing Association (RAMA) and a member of the Chief Marketing Officers board for international retailers.

ABOUT THE CULT BRANDING COMPANY – The Cult Branding Company is the recognized leader in cultivating authentic customer loyalty. Using its trademarked Brand Lover Model 2.0, The Cult Branding Company helps businesses understand, connect and serve their best customers. Visit: cultbranding.com/blog.

Brand Loyalty Expert Kicks Off the Retail Advertising Conference

BJ Bueno to open for RAC 2009

Orlando, Florida, February 16, 2009 – Author, creative strategist, and creator of Cult Branding Bolivar J. Bueno will be opening for this year’s Retail Advertising Conference (RAC). This annual 3-day event in Las Vegas, Nevada (February 25-27), is attended by the heads of top retail brands like Best Buy, eBay, Kohl’s Department Stores, Macy’s, JCPenney, PetSmart, Target, Toys “R” Us, and Home Depot.

Mr. Bueno will be joined on stage with Jennifer Dorian, Senior Vice President, Network Strategy and Brand Development for Turner Entertainment Networks, which includes TBS, TNT, and Turner Classic Movies (TCM).

Together, Mr. Bueno and Ms. Dorian will share how to build an authentic brand while growing a more profitable business.

ABOUT THE CULT BRANDING COMPANY – The Cult Branding Company is the recognized leader in cultivating authentic customer loyalty. Using its trademarked Brand Lover Model, The Cult Branding Company helps businesses understand, connect, and serve their best customers. Clients include Kohl’s Department Stores, Scheels, Turner Classic Movies, and LA Lakers.

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.