Ana Andjelic, a veteran brand executive and writer focused on the Sociology of Business, dives deep into the shifting landscape of brand marketing. She tackles the internet's impact on brand competition, emphasizing how traditional advertising has shifted to performance marketing. Ana also discusses the complexities of direct-to-consumer strategies, the importance of storytelling in maintaining brand identity, and how creating real-world experiences can drive genuine demand. She highlights the rise of niche markets, stressing the need for brands to adapt in a rapidly evolving ecosystem.
The internet's influence forces brands to prioritize immediate market responses over traditional brand-building strategies, complicating mass marketing efforts.
Product-led branding is becoming essential as it builds consumer loyalty through meaningful product stories rather than relying solely on performance marketing.
Niche markets are emerging as brands adapt by connecting deeply with specific consumer segments, emphasizing authenticity and unique experiences over mass appeal.
Deep dives
The Shifting Landscape of Brand Building
Building a high-end fashion brand is becoming increasingly complex in a market dominated by performance marketing. Traditional brand advertising is taking a backseat as companies like Nike grapple with maintaining their market share and brand identity amid changing consumer expectations. During the conversation, it was highlighted that companies used to rely on a unified brand message, but they now face the challenge of catering to narrow audience segments, making mass brand building challenging. This shift suggests that merely building a brand is no longer sufficient; companies must also focus on capturing demand through rapid response to market changes.
Understanding Demand Building vs. Performance Capture
The podcast delves into the distinction between demand building and performance capture, suggesting that performance marketing primarily harvests existing demand rather than creating new demand. Brands that thrive today need to focus on identifying market micro-trends, using data to respond quickly to consumer needs. This approach contrasts with traditional advertising strategies that aimed to build lasting consumer connections. The discussion points out that while performance marketing can drive sales in the short term, it lacks the durability required to develop a strong brand identity.
The Rise of Product-Led Branding
Product-led branding is emerging as a crucial strategy, where the product itself tells a brand's story and drives consumer loyalty. The idea is that a well-crafted product with a strong identity can withstand the competitive pressures of performance marketing by fostering a deeper connection with consumers. Nike's historical storytelling around their products illustrates how genuine connections with the target audience can create stronger brand loyalty. The conversation emphasizes that brands need to focus on their core offerings and communicate their unique value propositions effectively to thrive.
Challenges of The Internet on Brand Equities
The impact of the internet on brand building has been characterized as a double-edged sword, where the need for instant gratification conflicts with the slower, more nuanced process of brand development. As the digital landscape becomes saturated, products are commoditized, making it challenging for brands to maintain distinct identities. Brands that focused solely on performance and undervalued their brand narratives risk losing meaningful connections with their audience. This highlights the importance of balancing online strategies with traditional brand-building efforts to avoid being lost in the crowded marketplace.
Embracing Niche Markets and Long-Term Approaches
The conversation acknowledges the resurgence of niche markets as brands narrow their focus and connect more deeply with specific consumer segments. Smaller, specialized brands can thrive by tapping into unique consumer experiences, creating products that resonate on a cultural level. The hosts encourage larger brands like Nike to adopt a portfolio approach, emphasizing the importance of maintaining specialized segments within their broader strategies. This shift reflects a growing consumer preference for authenticity and quality over mass-market offerings in an increasingly fast-paced society.
On this week’s episode of The Rebooting Show, I was joined by Ana Andjelic, a veteran brand executive and writer of the Sociology of Business newsletter. I wanted to try an episode with Ana because we focus on different ends of the media ecosystem. Among the issues we discuss:
The internet’s impact on brands. “It forces you to compete on everything other than on brand. You compete on price, convenience, product recognizability, speed of your supply chain."
Product-led branding. “It’s starting with that iconic original product, using different wear stories, wear scenarios, different subcultures, to give it identity."
Why DTC brands were really performance marketing companies. “A lot of brands, especially in the DTC era when money was free, thought they would build demand by buying Facebook ads, Instagram ads, search and so on."
The limits of performance marketing. "Performance marketing is not going to build your demand. There needs to be something else that tells people to search for it or click on the ad.”
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