Design Management 6. Marketing & Brand

design management

6. Marketing & Brand

06Design Management University of Kansas, Department of Design ADS 750 (3 credits) Fall Semester 2014 Thursday 6:00-9:00p, Edwards (BEST245), Lawrence (CDR, West Campus)

design management

Week/ Date LECTURE & DISCUSSION Supplemental

Readings or Exercises

Wk 6 Oct 2 Marketing & Brand Chapter 5. Marketing & Brand

Communication

Wk 7 Oct 9 Design & Innovation 6. Design & Innovation

!“The Consumer Decision Journey”

McKinsey !

“A place at the table: Taking design from service to corporate function”,

Fluharty

COURSE SCHEDULE

TONITE

NEXT WEEK

Text Reading

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1. Discuss Chapter 5 "Marketing &

Communications" from Best text.

2. Discuss "Service Tools For Innovating

Chronic Disease Management"

3. “BB&D” Reference Cards exercise

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Chapter 5 Marketing & Brand Communication

© HumanCentered 2007, All Rights Reserved! design management

Gaining “Shop Sense”

Are we making money? What are people buying?

What’s not selling? What should we make/offer?


Your business audience

What do designers have to offer?

design managementdesign management

http://vimeo.com/12370894

www.brainsbehavioranddesign.com

http://vimeo.com/12370894

http://news.google.com/nwshp?hl=en&tab=wn&q=

http://www.brainsbehavioranddesign.com

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design management

Reference Cards

!

Concept Ecosystem Poster

!

Irrational Situations Guides

!

Strategy Cards

!

Loss/Gain Worksheet

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design management

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Reference Cards

!


!


!

Strategy Cards

!

Loss/Gain Worksheet

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a. Review and discuss decision-making factors. Select factors potentially relevant to subject. Report

a. Review and discuss decision-making factors. Select factors potentially relevant to subject.

40 minutes

1a.decision-making factors

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Reference Cards

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•Anticipation of

Rewards

•Impact Bias

•Placebo Effect

•Surprise & Adaptation

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Reference Cards

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• Attentional Collapse

• Decoupling

• Hyperbolic Discounting

• Impact Bias

• Inter-temporal Choice

• Optimism Bias

• Planning Fallacy

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Reference Cards

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• Commitment

• Hedonic Framing

• Loss Aversion

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Reference Cards

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• Actor-Observer Bias

• Endowment Effect

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Reference Cards

!


!


!

Strategy Cards

!

Loss/Gain Worksheet

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1b.

b. Review and discuss decision-making shortcuts. Select shortcuts relevant to subject. Report.

a. Review and discuss decision-making factors. Select factors potentially relevant to subject.

40 minutes

decision-making shortcuts

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• Bandwagon Effect

• Status Quo Bias

Reference Cards

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Reference Cards

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• Business v. Social Norms

• Choice Bracketing

• Framing

• Identity

• Mental Accounting

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Reference Cards

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• Diagnosis Bias

• Information Avoidance

• Resolving Cognitive

Dissonance

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• Ambiguity Effect

• Anchoring

• Availability

• Certainty Bias

• Clustering Illusion

• Diagnosis Bias

• Representativeness

• Segregation Effect

Reference Cards

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Differentiation By Design

On marketing


“Marketing consists of those activities involved in the flow of

goods and services from the point of production to the point of

consumption. –AMA, 1937


"human activity directed at satisfying needs and wants through exchange processes" – Kotler.

"Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing customer

relationships in ways that benefit the organization and its stakeholders."

!–AMA, 2007


"human activity directed at satisfying needs and wants through exchange

processes" !

–Phillip Kotler


"...management process of anticipating, identifying and satisfying

customer requirements profitably". –CIM


the social and managerial processes by which products, services and value are

exchanged in order to fulfill an individual's or group's needs and wants.

!–Adapted from Kotler, Armstrong, Brown Adam & Chandler, 1998


Know Thy Customer∫ ∫

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“With a career in marketing research you will provide businesses with the information necessary to market their products or services effectively. You can expect to analyze data on products and sales, design surveys, conduct interviews, prepare forecasts and make recommendations on product design, advertising, pricing and distribution.“

http://www.business.ku.edu/degrees/marketing/bsb/path



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http://interbrand.com/assets/uploads/Interbrand-Best-Global-Brands-2013.pdf?_ga=1.62046185.495343233.1412279444

http://interbrand.com/assets/uploads/Interbrand-Best-Global-Brands-2013.pdf?_ga=1.62046185.495343233.1412279444

design management

design management

Malcolm Gladwell on Spaghetti Sauce

http://www.ted.com/talks/malcolm_gladwell_on_spaghetti_sauce

http://www.ted.com/talks/malcolm_gladwell_on_spaghetti_sauce

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Engineering can set up how you will cook and jar the sauce

Marketing can come up with ways to advertise, distribute, and promote it.

Design addresses the question "what will people love?"

Many companies give their marketing group responsibility for determining what people will like, but marketing must focus on customers and their purchase decisions.

This differs subtly from design's concern with users and their satisfaction. To succeed with a spaghetti sauce for children, you need marketing that will motivate adults to buy it, but designers need to give it a flavor that appeals to children.

Marketing and design apply different skills to different problems.

–Jonathan Korman, Cooper

Possible & Feasible

engineering

Sellable & Distributable

marketing

Useful & Desirable

design

*

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Where does Design fit?

Design as cognition: Thinking, perception, problem-solving

Design as emotion: affect

Design as message: semiotics

Design as relation: sociology of objects

Design as context: situational and cultural context

The responsibility for

desirability and usefulness?

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Mass

Community

Individual

The lens of conventional market research operates on the assumption that people

are conscious of their reasoning, their motives, and

will tell the truth. !

(Paul Matthaeus, 2002)

top-down push

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"Work to understand the psychology of the lifestyle of your target demographic. You look at how technology has effected their

behavior. you look at how they communicate with one another. And you

may have to strike entirely different bargains with them to get what you want."

–Patrick Whitney

bottom-up pull

Mass

Community

Individual

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"I am funny. I run, sing, and play. I like dogs. I'm a sister."

Without designing for the exceptions, brands are rarely exceptional

"I Am Me" by Becky Werner

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A. Study and Analyze the Experiential World of the customer: Understand the context of consumer life, how the gamut of issues and offerings fit. Look for and identify natural patterns of need, want, desire!!B. Model the Experiential World of the customer: A “high-definition” descriptive model of current-state audience perceptions, conceptions and interactions. This “Experience Space” model articulates psychological social, cultural, physical and even spiritual human factors operating in consumers. Meet your archetypal customer in all her subtlety and complexity.

{Discover "What is"!(current state dynamics)!

TODAY1

Discover, Then Create

!C. Create Innovations to fit and enhance natural life patterns. Offer new channel scenarios, relevant brand interactions that align with existing platforms and business objectives. !!D. Communicate the Ideas. Rapid prototype the most promising experiences and market test.

2 {Create "What if"!(goal state models, scenarios)!

TOMORROW

~ LaSalle & Britton

So What!What can I do with this stuff?

>

receiver

sender

message

>

Source, Rick Robinson, Frameworks and Organizational Perception

>

receiver

sender

message

>

Classical communication model: simple, linear, descriptive

Joe’s framework

individual

social

cultural

>

>


Joe’s framework

cultural

social

individual

>

>

organization, products, services


Joe’s framework

>

>

cultural

social

individual

organization, products, services


Objects, messages, brands are interpreted, not merely received. The individual’s personal framework is built up of cultural, social, and

individual frameworks that, in turn, shape the experience. People, meanings, and contexts are all more interactive than in the

classical model.

© HumanCentered 2006, All Rights Reserved

Why Brands Matter

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Companies seem to finally understand there are three kinds of identity to recognize, aimed at three distinct audiences: !1. Investors care about corporate identity 2. Employees and close collaborators care about

organizational identity 3. Customers and prospective customers care

about brand identity.

Three Levels of Identity

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Organizational Identity

Corporate Identity

Brand Identity(ies)

Core Identity

Layers of Identity

– Larry Keeley, Doblin

Employees & Collaborators

Investors

Customers & Prospects

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1.Brands are crucial wherever supply dwarfs demand. 2.Brand excellence comes principally from customer

relevance. 3.Brands that have rich interactions with their

customers have advantages over those that don’t. 4.Brands that are in discretionary-interest categories

get a boost. 5.Brands that are perceived as first movers have an

advantage. 6.Brands priced at the top and near the bottom of a

category have the advantage over those in the middle. 7.Brands with greater focus have an advantage over

those with broad focus. !


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Identity and brand compared


The principal function of company identity is to foster recognition. It is developed thru consistency and repetition in all communications

Identity {


A shorthand for the customer face of an entity, designed to be understandable and appealing. Brand touch points can and must be managed appropriately and engagingly wherever possible

brand {

“Brands and richly complex brand strategies must be in the

ascendance wherever a category has lots of choices.”


“As choices become abundant, as life gets more complex and free

time declines, brands we like and trust help us make shortcuts.”

Larry Keeley

Brand strategies are having troubles. Recently, the epitome of well-managed brands, Nike, has had young people avoid the firm’s products in droves. Nike’s omnipresent swooshes plastered all over athletes—along with their $33 million-dollar gym-shoe cathedrals—now seem passé. !There is a nagging accumulation of signs that regular Joes and Josephines have developed advanced and subtle defenses against the current communications assault. They avoid pollsters like poison ivy, screen callers through exotic electronic defenses, and routinely lie on surveys administered in malls and at Web sites everywhere. !Suddenly, both identity and brand strategies seem rudderless. What on earth is going on? – Larry Keeley, Doblin

but…


Netgear, LaCie, Maxtor

storage 2008


storage 2014


Saucony, Adidas, Reebok

running 2008


running 2014

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Managing Brands

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Bonnie BriggsCaterpillar Inc.

Bonnie B. Briggs Corporate Identity & Communications Manager, Caterpillar, Inc., USA

“Operating within a decentralized company, I see my role as one of integrator, influencer, teacher, and facilitator. I’ve worked for Caterpillar Inc. for thirty years in a variety of positions. All of the positions involved creativity of one kind or another. None of the positions existed before I had them. My title is Manager, Corporate Identity & Communications, and the position resides within the Global Brand Management Group, which reports to a Group President. The work (if I must call it that) involves brand strategy, communications strategies, and education.

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!“Brand management/strategy has at its foundation a fundamental grounding in design principles. Those principles come into play as we look at new ways to apply our brand or trade dress; influence the quality and visual effectiveness of our communications; and challenge our organization, suppliers, licensees, and distributors to continuously improve and innovate.


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!“My work involves extensive worldwide travel because Caterpillar’s 680 manufacturing, marketing, and service support employees reside in every continent. And 210 Cat dealers, with a combined total of 900 employees, represent the brand, selling and supporting equipment, with a presence in every country around the world.


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!“My team functions as a critical resource to anyone who is driving new businesses, making choices that affect the Caterpillar brand, or communicating on behalf of the brand. The Global Brand Management Group has access to all operating units and is involved in every brand decision initiated worldwide.


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!“Developing a common language and understanding what our brand stands for was a five-year process––and continues today. The concept of communicating with one voice was the result of a grassroots initiative that began following the company’s decentralization in 1992. I let a team effort that drove a comprehensive assessment of our values, competencies, attributes, and communications positioning.


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!“Though that information, we were able to create a more objective set of tools for evaluating all brand-related decision. We then created an education program to show people how to use the tools. Over time, the concept of “One Voice” spread throughout the organization. Now, it’s very much a part of our corporate culture. Employees, dealers, and suppliers are familiar with the term and respect its meaning. !“I love what I do...and I’ve never had a dull day.”


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design management

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on brand


http://uxmag.com/articles/walt-disney-the-worlds-first-ux-designer




environment

The role of brand!Brand can be expressed through all media

pricing products

service standards

packaging

advertising

print collateral

corporate identity

userspublic relationsweb sites

reputationstaff

history

promotions

sponsorship

BRAND


Brand...!• provides meaning to the organization!• differentiates you from the competition!• provides a long-term competitive advantage!• solves commercial challenges!• increases customer loyalty!• drives efficiencies!• unifies the organization’s products, services, and

divisions!• attracts, inspires and retain the best people...


Brand Promise...!• Great stories told well!• Tell one story with innovation and the highest quality!• Excellence creates great memories


1. Know your audience!2. Wear your guests' shoes!3. Organic flow of people and ideas!4. Create a weenie (visual magnet) icons!5. Communicate with visual literacy (reinforce

consistency)!6. Avoid overload (create turn-ons)!7. Tell one story at a time!8. Avoid contradiction - maintain identity!9. "Ounce of treatment - Ton of Treat" (attention to

detail)!10.Keep it up (maintain it)

Mickey’s 10 Commandments


7. Tell one story at a time...!• Every project begins with a story!• Keep your message, theme, story consistent!• Every story has a beginning, middle, and end


5 Imagineering challenges...!• Maintain a culture of risk taking!• Consistently deliver great ideas!• Nurture your talent!• Maintain the Disney difference!• Never rest on your laurels

© HumanCentered 2005, All Rights Reserved!

Successful brands derive their meaning from the culture,or from values that are strong in the culture now and are likely to remain strong. These carefully crafted brand meanings can be added to, subtracted from, and finessed—in a word, managed.!

– Bill O’Connor, Source/Inc.

© HumanCentered 2005, All Rights Reserved!

design management

6. Marketing & Brand

06Design Management University of Kansas, Department of Design ADS 750 (3 credits) Fall Semester 2014 Thursday 6:00-9:00p, Edwards (BEST245), Lawrence (CDR, West Campus)