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MINDSPACE November 7, 2005 Page 1 MINDSPACE THE STREAM OF CONSCIOUSNESS By Rommey Hassman MBA Translated from Hebrew by Lori Bull Originally published in GLOBES Brand Index 2005, pgs 98-105 Recently I had a conversation with a good friend, an employee of the formerly known cable company TEVEL, now known as HOT. To my amazement, he explained that he still receives his paycheck from TEVEL. The merger of the three Israeli cable companies wrapped up in a new brand name sounds outwardly impressive. The logo is nice, the slogan attractive, and both are formulated based on accepted principles from the gospel of branding 1 . But it's no wonder that some of us are confused, and ask ourselves, "Am I connected to TEVEL now or to HOT?"; "Is my home cable converter box TEVEL digital or HOT digital?". They say the merged company paid a million and a half dollars to experts who wrote the HOT brand book. At the end of the day it appears that the public has been convinced: there is a new company, a new name, a single customer service telephone number, but are the employees completely convinced? According to their paychecks, one can't be sure. LOGO VS ESSENCE The issue of an organization deciding to undergo a process of re-branding leads to a very basic model that answers the question, what is the depth of the selected branding process? At the shallow end of the pendulum, the concept of Brand LOGO dominates. Within its framework, the company decides to change its name, logo and slogan, and the process ends here. This is what happened with the leading American accounting firm, ARTHUR ANDERSEN, following the ENRON stock market crash scandal 2 . The company was divided into two separate units, each one given a new name, but everyone is still confused. The same thing happened with the local Israeli specialty retailer with the new name: GOLF & Co. "So you can buy clothes at GOLF, and you can buy house wares at GOLF, and…what? What's the connection?". Mainly the attempt to contract the GOLF apparel chain's enhanced image, and transfer it to the area of house wares, like RALPH LAUREN did in the USA. This is a strategic step that doesn't always prove to be successful or correct. At the other end, the deep end of the pendulum, the concept of Brand Essence dominates 3 . Within this framework, the company decides to adopt the idea of branding into the soul of the organization. Not only outwardly, but a new organizational-managerial concept. This is how STARBUCKS works – all of its employees believe that they are working in an industry of "rewarding everyday 200 METERS 3 METERS The Brand Essence Model

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Recently I had a conversation with a good friend, an employee of the formerly known cable company TEVEL, now known as HOT. To my amazement, he explained that he still receives his paycheck from TEVEL. The merger of the three Israeli cable companies wrapped up in a new brand name sounds outwardly impressive. The logo is nice, the slogan attractive, and both are formulated based on accepted principles from the gospel of branding1. But it's no wonder that some of us are confused, and ask ourselves, "Am I connected to TEVEL now or to HOT?"; "Is my home cable converter box TEVEL digital or HOT digital?". They say the merged company paid amillion and a half dollars to experts who wrote the HOT brand book. At the end of the day it appears that the public has been convinced: there is a new company, a new name, a single customer service telephone number, but are the employees completely convinced? According to their paychecks, one can't be sure.

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  • MINDSPACE November 7, 2005

    Page 1

    MINDSPACE THE STREAM OF CONSCIOUSNESS

    By Rommey Hassman MBA

    Translated from Hebrew by Lori Bull Originally published in GLOBES Brand Index 2005, pgs 98-105

    Recently I had a conversation with a good friend, an employee of the formerly known cable company TEVEL, now known as HOT. To my amazement, he explained that he still receives his paycheck from TEVEL. The merger of the three Israeli cable companies wrapped up in a new brand name sounds outwardly impressive. The logo is nice, the slogan attractive, and both are formulated based on accepted principles from the gospel of branding1. But it's no wonder that some of us are confused, and ask ourselves, "Am I connected to TEVEL now or to HOT?"; "Is my home cable converter box TEVEL digital or HOT digital?". They say the merged company paid a million and a half dollars to experts who wrote the HOT brand book. At the end of the day it appears that the public has been convinced: there is a new company, a new name, a single customer service telephone number, but are the employees completely convinced? According to their paychecks, one can't be sure. LOGO VS ESSENCE The issue of an organization deciding to undergo a process of re-branding leads to a very basic model that answers the question, what is the depth of the selected branding process? At the shallow end of the pendulum, the concept of Brand LOGO dominates. Within its framework, the company decides to change its name, logo and slogan, and the process ends here. This is what happened with the leading American accounting firm, ARTHUR ANDERSEN, following the ENRON stock market crash

    scandal2. The company was divided into two separate units, each one given a new name, but everyone is still confused. The same thing happened with the local Israeli specialty retailer with the new name: GOLF & Co. "So you can buy clothes at GOLF, and you can buy house wares at GOLF, andwhat? What's the connection?". Mainly the attempt to contract the GOLF apparel chain's enhanced image, and transfer it to the area of house wares, like RALPH LAUREN did in the USA. This is a strategic step that doesn't always prove to be successful or correct. At the other end, the deep end of the pendulum, the concept of Brand Essence dominates3. Within this framework, the company decides to adopt the idea of branding into the soul of the organization. Not only outwardly, but a new organizational-managerial concept. This is how STARBUCKS works all of its employees believe that they are working in an industry of "rewarding everyday

    200 METERS

    3METERS

    The Brand Essence Model

  • MINDSPACE November 7, 2005

    Page 2

    moments", and not in coffee sales. In Israel, for some reason, the company wasn't that successful. Why not? If the company chooses the shallow end of the branding model, in most cases it won't catch on and won't stick. The employees won't believe in the process, nor will management, and the public certainly won't believe them. The only way to succeed in the branding process in particular is via the deep side path of the pendulum and not by middle-of-the-road fakery. The question of brand depth is the first in the series of challenges that brand managers, admen and media agents face today. Another challenge is the death of mass marketing4, as we have known it up-to-date. We have seen a continuing downward trend in the effectiveness of mass advertising in Israel5, particularly in light of Channel 2's policy, during the height of prime-time, to barrage us with five minutes of advertising for every 15 minutes of broadcast time, which has increased the phenomenon of zapping channels and a resistance to ad messages. After this, the anti-globalization movements came on the scene and shouted "No LOGO" 6, and many adopted this gospel. At the beginning of the 21st century, the new buzzword in the marketing world became "Nation Branding"7, and following this, knowledgeable experts came to the conclusion that advertising is beginning to disappear and that the solution lies in public relations8. Due to the upward trend in the penetration of the TiVo DVR device in the USA, the solution that appears on the horizon is intensifying product placement and branded entertainment in the media. If so, what is the domain of our challenge? What is the competitive domain? Up to now we have dealt mainly with the technological dimension. We have seen the great potential of the internet, but only recently has it begun to

    materialize. Now, the belief is in the increasing potential of the new cellular communication systems, although Israeli cellular companies are the most locally despised corporations in the market. It is true that over 960 million people across the globe are connected to the internet9, 720 million people to CNN10. It is also true that 1.75 billion people own cellular phones11, but technology is not necessarily our answer. More than 15% of the population of the earth may know what is happening at the other side of the globe in real time, and this has a major impact on the development of the consciousness of modern man, especially over the last 5 years. But the question is Is the technological space the competitive space, or perhaps only the channel, the means of transport? Indeed, real competitive space is found in the changing consciousness of man, of the consumer, and it is not cyberspace or outer space, but MINDSPACE. This is where the real competition is conducted12. THREE DIMENSIONS OF REALITY IN CONSCIOUSNESS Now that we have defined the essence and the domain of the challenge, we must characterize the competitive space. The first and central characteristic of MINDSPACE is the fact that the consciousness of modern man is divided into 3 dimensions of reality. The first dimension of reality is the VIRTUAL dimension. This is the outer dimension of consciousness, which collects information via a mediator, such as radio, newspapers, television, internet, road signs, or mail. All of these mediators feed us experiences, events and information in an indirect manner. What does this mean? Let's take the 2004 Indian Ocean tsunami, for example. Someone who experienced the tsunami via the news on TV, the internet or newspapers, has experienced the event in the virtual dimension.

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    The second dimension of reality is the REAL dimension. In this dimension, information comes to us directly, via the five senses. These are events that we experience within the square meter of our lives. Something we have seen, heard, tasted, smelled or felt. For example, someone on the island of Phuket during the tsunami experienced the event in the REAL dimension, directly. The third internal dimension is Factor X: the depot of the consciousness. This depot contains everything we define in psychology as ego, super-ego and id, or soul, spirit and the higher-self by New Age definitions. What does it do? It stores all the information received in the past, as well as all genetic data, and mixes them all together. The result? An independent scenario system that is often totally disconnected from reality, as transferred to us via the VIRTUAL or REAL dimensions. In the case of the tsunami, terrifying dreams of monster waves washing away half of Tel Aviv into the Mediterranean.

    It is important to state that the given size of any one of the three dimensions of reality is fluid and can change as a result of a decision or a situation that is beyond our control. And what does this mean? A situation may be created where the VIRTUAL dimension dominates the

    central portions of our consciousness. This happens, for example, if we decide to rent a DVD of a full season of the TV series "24" and watch all 24 episodes back to back. We'll pick up a pizza on the way home and disconnect ourselves from the world outside. The REAL will be set aside, Factor X will be totally repressed and we'll live only the VIRTUAL dimension. The opposite may occur if we decide to cut ourselves off from the VIRTUAL dimension. We won't read newspapers, surf the web, or watch Channel 2. Factor X can also dominate the consciousness. When? Under the influence of drugs, in psychotic episodes, while dreaming, or even during a daydream. Who hasn't experienced leaving the house late, troubled by the events of the day, and then suddenly remembering before getting into the car, "Did I lock the house? Turn off the gas? Shut the water?". In this tiny moment, Factor X dominates the consciousness and the REAL dimension disappears. TOOLS FOR THE COMPETITIVE SPACE The first immediate tool at the service of the marketer is the tool of SPIN13. Spin is an articulation that within its framework contorts reality a little, but isn't actually a lie. It is said that one who has been caught in a spin can be forgiven, but one who is caught in a lie would not be. When McDonald's tries to convince us that their junk food is healthy, this is a kind of spin. When Bill Clinton was asked by Larry King in an interview for CNN: "Monica claims you two were in the room alone, and you claim there were others in the room. Who's telling the truth?". He answered: "There's Monica's truth and there's my truth, and both truths can exist side by side!". This is classic spin. When Bibi Netanyahu says that within a decade Israel will become one of the ten leading economies in the world, this is also pure spin.

    The MINDSPACE Model

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    The reaction to spin differs among nations. The British are really sick of spin, Americans still suffer the phenomenon, and in Israel, you're a "mensch" if you've managed to spin the media. The difference between spin, marketing communications and propaganda is measured on the ladder of truth and lies. In marketing communications we do not tell the entire truth. With spin we navigate ourselves within the range between truth and lies. With propaganda, however, most of it is just lies. HOW TO ENTER MINDSPACE The central tool we will work with in the operation of MINDSPACE is the BLOCKBUSTERS model14. Within the framework of attempting to simplify strategic thought processes, this model assumes that we must address four basic questions.

    WHERE? This question provokes us to conduct a SWOT (strength, weaknesses, opportunities, threats) analysis of the brand, the product, the company, the competition, the environment, future trends and the consumer that will assist in drawing a current map. It is clear that the operating space is found within the MINDSPACE, but the

    question is in which one of the three dimensions of reality? If we have located a problem of lack of knowledge among brand consumers, it is a sign that there is a logic problem. Logic problems are expressed in the VIRTUAL dimension. For example: Green tea has healthy qualities that fight cancer, and this is information. If there is a problem of, say, lust or fear, this is an instinctive issue. The dimension of reality within whose framework we deal with instinctive issues is the middle dimension, the REAL dimension of real life. For instance, the threat of terror makes us fear flying. Here we have a problem that can be overcome by building a safe environment, as El-Al has done in its messages to the public. However, if we have a problem of, say, desperation, hatred or anger, the brand deals with an emotional issue, and emotional issues are expressed within the innermost dimension of consciousness, in Factor X. Here, we express all burdens of the past and everything is mixed together. An example is the present consumer anger in Israel at the cellular corporations. This is an issue whose resolution is not yet clear definitely not by the one-sided raising of rates or by messages that are difficult to believe, such as that Cellcom will bring us love. WHERE TO? After we have answered the "where?" issue, we must answer the "where to?" Where do we intend to take the brand? What are its targets - the brand's goals, ambitions and desires? If we don't provide an answer to "where to?" any direction we take will lead nowhere15. If we discover that the brand must deal with an emotional issue, what we will want to do is to make the consumer public believe in a new idea or a dream. We do this by planting a vision an ideal image of the future16. One of the classic examples of vision placements for human beings over the last century is the dream

    The BLOCKBUSTERS Model

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    of the late Walt Disney of a better world, conveyed to us up to today via the films, TV programs and theme parks he founded, and which are expressed under the roof of the brand concept "Fun Family Entertainment" 17. If we have come to the conclusion that we are dealing with an instinctive issue, what we'll want to do to generate movement is to cause the consumer to dare. The way to do this is to plant a mission within the REAL dimension. An example of a super mission is expressed in Nike's slogan Just do it, which instills in its customers the courage to try what they haven't dared to do before. If we have come to the conclusion that we are only dealing with a logic problem in the VIRTUAL dimension, what we'll want to do is to make the target audience come to a decision. There is no need for them to believe in a new idea or to try to do something they've never dared before. An example: the longstanding Israeli campaign of "every drop is a waste" within whose framework our consciousness was instilled with the need to conserve water. BARRIERS? Now we move to the third question in the model, which is the question of barriers: what are the blocks the brand faces in reaching its goals? Or in other words, what prevents us from getting to the "where to?". Just like the computer's firewall the mechanism to prevent entry of viruses, the MINDSPACE also has a firewall to prevent the entry of new ideas into the consciousness18,19. In the VIRTUAL dimension, the capacity blocker operates. It isn't likely that all 2500 communication messages that we are bombarded by daily will succeed in penetrating our consciousness. Zapping is another information blocker, or the TiVo device, which enables us to digitally record TV programs and automatically skip over commercials. This also explains the

    existence of the attention blocker, in cases where the information transmitted to us does not interest us. In the REAL dimension, the principal barrier is the physical block. Our inability to see the entire range of colours, or the whole expanse of space, or to detect the entire range of sounds and decibels. And in the reality dimension of Factor X, information processing blockers are the principal operators. For example, information that comes too swiftly or too slowly from what we are used to, or in too great a quantity for the capacity of the memory mechanisms in our consciousness to absorb. Here we also have the information block: mostly preconceived opinions or attitudes which prevent the entry of ideas that oppose the database of existing information. HOW? The fourth question, how, is the dream question of every businessman "How to bust the blocks? Break the barriers?". This is the question that usually trips us up if we haven't provided a sufficient answer to the first three questions. If we have reached the conclusion that we must deal only with the VIRTUAL dimension, we will relay a logical message containing information to our audience, thus inducing our consumer to come to a decision that in the end will be expressed in action. However, we must understand that although it is very easy to instill a logical message, its rejection is also easy. Another problem is that a logical message is not always appropriate, nor does it always work. For years, environmental activists relayed logical messages: "If we don't switch the type of fuel we use to run our automobiles, we'll raise the level of carbon dioxide in the atmosphere, which will create a hole in the ozone layer, causing the earth to overheat, changing weather conditions, melting icebergs, raising sea levels and leading to the disappearance of major coastal cities".

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    This still doesn't convince us. The same goes for the Swiss STOP AIDS campaign that relays a simple message: "Wear a condom and stop the spread of AIDS". This suited the Swiss very well, who don't have a problem with sex, with condoms or with AIDS. However it isn't suitable for Israelis, who have a problem with all three. In this situation, we must move to a higher dimension in our consciousness, and relay our message in the REAL dimension of reality. If we load our consumer's consciousness with an impulsive message containing passion, instinct or something sensual, our mission will be complex, but so will its rejection. For example: a message of fear regarding saving the environment, as expressed in the film "The Day After Tomorrow", highlighted the destructive personal significance of overheating the earth: a tsunami in Manhattan. As fate would have it, the film hit the screens six months before the actual tsunami in south-east Asia. Despite this, what happens when we deal with a company like PHILLIP MORRIS, the manufacturer of MARLBORO cigarettes, who for decades have instilled in our consciousness a message of passion via the macho cowboy riding his horse in the western plains? The logical message working against him in the VIRTUAL dimension has no chance. The only option is to relay a message either in the same dimension or in a higher one. The solution is a message of fear, of which we must also be very careful, because as we raise the level of fear, the message's effectiveness also increases until we reach the apex, beyond which the effectiveness drops and the message becomes a source of ridicule. Where is the apex? No one knows. If we have reached the conclusion that the region to be dealt with is not in the given dimensions but in Factor X, we will have to use other tools. For example, emotional message, like hope, love or

    joy. It is very difficult to instill a message like this, but as soon as we have done so, it is internalized and deeply hidden. Music can be an amazing tool for the instilment of emotional messages into our consciousness. This is what the Americans are trying in their attempt to instill emotional messages in the hearts of Islamic youth in the Middle-East when they launched Radio SAWA (Together Radio), relaying pro-Western messages while broadcasting the music of Britney Spears and Janet Jackson20. Another effective tool is film. Within the framework of the film "I AM SAM", starring Sean Penn, and relating the story of a mentally challenged father fighting for custody of his daughter, Penn works at STARBUCKS. For long moments we see him working behind the counter in his uniform, repeating company product names over and over. This is classic branded entertainment and product placement, because as the film viewers relate emotionally to the film they also relate emotionally to the brand, the company, to its employees, to its products and its messages. A contrasting example brings us back to NIKE, which has managed to instill a message in its most loyal of customers African American youth living in inner-city neighborhoods in the USA a message of hope in the Factor X dimension, and a message of courage in the REAL dimension. "Convince your mother who's on welfare to give you $150 to buy the last pair of NIKE AIR JORDAN running shoes and you can fly out of your neighborhood like your all-star national basketball hero." It is very difficult to counter these messages. A logical message from human rights organizations explaining to these same kids that destitute youth in the Philippines, in Indonesia and today in China as well, work for starvation wages under inhuman conditions to manufacture your shoes does not work and is not internalized.

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    A logical message in an emotional environment has no effect at all. This is how REMEDIA dealt with the recent crisis involving its major product breast milk substitutes resulting in the deaths of two babies and the hospitalization of several others which shook Israel: with a logical message: "It wasn't us, it was the Germans, there was an error in the wording". Why doesn't this work? Because a crisis usually awakens fear, on the one hand, stirring up the REAL dimension, and it then awakens anger, which stirs up the Factor X dimension21. A classic example of proper crisis management was displayed by Rudy Giuliani, the mayor of New York City, during the 9/11 terrorists attacks22. Moments following the attacks we saw him wandering through south Manhattan under clouds of dust, urging residents to move north. It was an enormous display of courage, which worked in the REAL dimension against the horrible fear which froze the city's residents in their tracks. At the same time, he exhibited great sensitivity, both towards the victims and the rescue teams. NATION BRANDING In 1997, Britain launched its first branding campaign, Cool Britannia. The campaign tried to deal with Britain's problematic international image as a conservative country, and emphasized only the new, and not the old. The world at large didn't quite get the messages, although London is truly a global center representing cultural and culinary progress, as well as advances in fashion, design and the arts. They were unable, however, to detach the old from the new. The Cool wasn't internalized and received cries of derision. Not Cool Britannia, but Cruel Britannia. In 2001, the campaign was halted, and in 2002 a new campaign was launched, UK OK, stressing the commonalities between the old and the

    new, and this campaign continues to run today. In the area of nation branding, one must take into account that we are operating in the Factor X dimension. Preconceived attitudes and opinions instilled in our consciousness towards countries comprise a very heavy emotional load. A fascinating survey performed many years ago found that people have biases towards the host country of certain products23. We will eagerly consume Bulgarian cheese, but we won't touch German cheese. At the same time, we won't touch Bulgarian beer, whereas German beer is welcome. And all this has nothing to do with the brand or product attributes, but only with the country of origin. In other words: all activity in the area of nation branding necessitates the instilment of emotional messages. For the same reason, an Israeli government official appearing on CNN explaining the professional rationale behind the separation fence in locally accented English and jargon, has no chance against the devastating sobs of a Palestinian mother who, blocked by the fence and the roadblock soldiers, cannot bring her infant daughter to dialysis at the hospital in the neighboring town. A logical message has no chance against a very convincing emotional one. This is how it is, at least before the realization of every marketing communications professional's wet dream: to penetrate Factor X directly, as expressed in the film MATRIX, via total blurring between virtual reality and the real world around us as comprehended in our consciousness.

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    The MINDSPACE MODEL Framework Dimension of Consciousness

    Access to Consciousness

    Where? SWOT Analysis of the three Dimensions

    Blocks? Marketing media must overcome

    Where to? Methods moving Target audience

    How? Busters

    VIRTUAL

    Via mediator, such as the media

    Logical Capacity overload, resistance to receipt or disinterest

    Instilment Goal: to reach a simple decision

    Logical message: passage of information

    REAL

    Direct, via the 5 senses

    Sensual Physical barriers: sight or hearing limitations

    Mission purpose: to dare to do what one has never dared before

    Impulsive message: passion or sensuality

    Factor X

    MIND Depot, via emotions, subconscious

    Emotional Knowledge Limitations or info processing

    Instilment of vision: faith in dream

    Emotional message: love, hope or joy

    The author is a strategic marketing communications expert, lecturer and consultant. He has directed the strategic planning and research departments at the Gitam/BBDO and Fogel-Levine/O&M advertising agencies in Israel, has headed the department of advertising studies at the

    Tel Aviv College of Management, has served as secretary of the Israeli IAA (International Advertising Association) chapter and as Chairman of the Board of the IATF (Israel AIDS Task Force). Contact him at [email protected]

    1 Building Strong Brands/ D.A. Aaker/ The Free Press, 1996 2 Wall Street Scandals at a glance/ BBC News, 26.6.2002 3 A New Brand World/ S. Bedburry/ Viking, 2002 4 The Vanishing Mass Market/ BusinessWeek, 12.7.2004 5 The Israel Advertising Effectiveness Project/ R.H./ OTOT, Feb 1995 6 NO LOGO/ N. Klein/ Picador, 1999 7 Nation Brands of the 21st Century/ S. Anholt/ Market Leader, NTC, www.warc.com 8 The Fall of Advertising & the Rise of PR/ A. Ries, L. Ries/ HarperBusiness, 2002 9 www.internetworldstats.com/stats.htm 10 As reported by officials at CNN International HQ 11 ITU Cellular Mobile Subscribers (2004) 12 Positioning: The Battle for Your Mind/ A. Ries, J. Trout/ McGrawHill, 1986 13 SPIN This/ Bill Press/ Pocket Books, 2001 14 In GITAM/BBDO we developed the BLOCKBUSTERS Model/ A. Kroll/ Globes, 10.2.94, pg 45

    15 Where there is no Visionary, Companies Falter/ S. Marino/ Industry Week, 15.03.99, vol 248, is 6, pg 20 16 The Mission Statement Book/ J. Abrahams/ Ten Speed Press, 1999 17 The Disney Way/ B. Capodagli, L. Jackson/ McGrawHill, 1999 18 The Tipping Pont/ M. Gladwell/ Little, Brown & Co, 2002 19 Spatial Diffusion of Innovations/ T. Hagerstrand, 1967 20 Strengthening US Public Diplomacy requires organization, coordination and strategy/ S. Johnson, H.C. Dale, P. Cronin/ The Heritage Foundation, 5.8.05, no. 1875 21 The Crisis Counselor/ J.R. Caponigro/ Contemporary Books, 2000 22 LEADERSHIP/ Rudy Giuliani/ Miramax, 2002 23 Country of origin as a factor in developing biases towards products in advertising/ R.H., Y. Nevat/ Hebrew U, School of B Management, 1987