Marketing Canvas - Budget

Last update: 10/12/2024

In a nutshell

Discover the importance of a well-structured marketing budget in our comprehensive guide. We delve into the critical role of budgeting within the Marketing Canvas method by Laurent Bouty. Learn how to track and manage marketing expenses, whether you're a multinational corporation or a budding startup. Understand the significance of budgeting in terms of industry benchmarks, and discover strategies to spend wisely. Our guide offers practical tools to translate your budget into action, from understanding your audience to tracking expenses effectively. Moreover, learn to evaluate and improve your budgeting practices with our score-based self-assessment. Lastly, get inspired by a real-life example of green clean use case. Whether you're a marketing novice or an entrepreneur seeking new insights, this article offers an essential exploration of the powerful tool that is your marketing budget.

In the Marketing Canvas

The Marketing Canvas is a powerful tool for entrepreneurs and non-marketers to build a robust marketing strategy. It consists of six meta-dimensions, each with four sub-dimensions, for a total of 24 sub-dimensions defining your Marketing Strategy. One of these sub-dimensions is BUDGET, which falls under the METRICS meta-category.

Defining Budget

The Marketing Canvas model proposed by Laurent Bouty offers an in-depth methodology to conceptualize and structure your marketing plan. The fundamental section Bouty underscores is "Metrics," and the sub-dimension "Budget" within it. This sub-dimension serves as a barometer to quantify and keep track of your marketing expenditure, a crucial determinant of your company's marketing efforts' overall success.

The Budget dimension's relevance is ubiquitous, regardless of your company's size. For larger conglomerates, where tracking expenses becomes a standard protocol, marketing becomes an essential cog in the wheel. Conversely, smaller entities like startups or SMEs may not implement such stringent measures, overlooking the importance of earmarking a designated marketing budget, which could potentially hinder growth.

Renowned benchmarks, Gartner and CMOsurvey, offer a broad understanding of how companies, across industries and sizes, allocate their marketing budgets. These benchmarks divulge that, on average, about 11% of the yearly budget is dedicated to marketing expenditure. An alternative way of approaching this is by calculating the ratio between your marketing budget and your revenue. The marketing budget generally represents 6% to 10% of your revenue, a number that can fluctuate depending on your revenue size.

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Marketing Canvas Method by Laurent Bouty - Marketing Budget

As per the industry suggestions, startups could consider setting aside up to 20% of the anticipated gross revenue for the marketing budget. However, the crucial takeaway here is that it is not solely about allocating funds to marketing, but ensuring that these funds are utilized judiciously. This involves associating your expenses with your actions – if you plan to perform action X to achieve objective Y, how much will Z (the budget) amount to?

Underutilizing your marketing budget can pose problems. It may create a negative impression of your leadership, indicating a lack of execution on planned strategies. Similarly, if your marketing budget falls below the market average, it may indicate under-investment compared to your competitors, acting as an impediment to your business's growth.

A survey by Sortlist conducted in 2021 revealed that the Covid19 pandemic had either positively or negatively impacted the marketing budget for SMBs. On average, the annual budget hovered around a maximum of 10,000€ for 50% of the companies surveyed. However, this figure only accounted for media and content expenses, excluding human resources and platform investments.

Tools for Budget

Having a well-planned budget is a keystone to any successful marketing strategy. However, to implement this successfully, certain tools can provide a great deal of assistance. Software platforms like QuickBooks, Zoho Books, or Sage 50cloud are excellent options for maintaining and tracking your budget. They not only help you keep your budget in check but also ensure the finances are appropriately aligned with your marketing goals.

Spreadsheets can also play a significant role in managing your budget. They provide a straightforward and uncomplicated way to input and track your budget figures. Excel or Google Sheets, with their various functions, can aid in organizing and categorizing your budget.

Moreover, platforms like HubSpot offer a dedicated Marketing Hub that includes budget management tools within their software. This feature enables companies to plan, track, and measure their marketing budgets and ROI from a single platform.

Translating Budget into Action

Translating your budget into action entails strategic decision-making. It involves a deep understanding of your audience and consistent engagement, preparedness for budget variability, consideration of the marketing lifecycle, tracking expenses, and balancing creativity with cost.

For instance, if your target audience is primarily online, then directing a significant portion of your budget to digital marketing would be a wise decision. However, for a local audience, traditional advertising methods, such as billboards or local press, may be more effective.

Maintaining consistency in your marketing approach can result in more significant outcomes than sporadic, high-cost campaigns. This strategy requires planning for sustained engagement with your audience.

Marketing budget needs can change with time. It is vital to remain flexible and adapt your budget based on business needs, market trends, and campaign results.

In marketing, some initiatives, like SEO or content marketing, may take a longer time to deliver results. It's crucial to account for these long-term strategies in your budget, alongside short-term ones.

By using accounting or budgeting software, you can keep an accurate record of your marketing expenditures. This data can provide valuable insights for future budgeting decisions.

While high-cost campaigns may appear more attractive, the most creative ideas are often the most cost-effective. Always seek to balance creativity and budget constraints.

Statements for self-assessment

Is your Marketing Budget helping you achieve your goals?

Evaluating the effectiveness of your marketing budget is a critical step towards its optimization. Here, you assess if your budget is helping you reach your goals.

For a comprehensive evaluation, rate your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. Your marketing budget allocation is based on several factors, including your industry sector, your business capacity, your goals, and how quickly you need to make an impact.

2. Your marketing budget is a component of your overall business plan, outlining the costs of how you are going to achieve your marketing goals within a certain timeframe.

3. You constantly monitor your marketing efforts. If something in your marketing plan is not working, you move that spending into another area.

4. You leave a portion of your budget (10%?) in exploring new ways, figuring out what works and what doesn’t, and exercising your creative muscles

Each of these statements evaluates a critical aspect of your marketing budget. Your scores would indicate which areas need improvement, and which areas are effectively managed.

Marketing Canvas Method - Question - Marketing Budget

Interpretation of the scores

• Negative scores (-1 to -3): Indicate significant gaps in your budgeting process. Resource allocation may lack strategic alignment, monitoring may be insufficient, and there may be little or no investment in innovation.

• A score of zero (0): Reflects partial effectiveness. While the budget is functional, it may not be fully aligned with goals, flexible, or innovative enough to drive optimal results.

• Positive scores (+1 to +3): Suggest a well-optimized budget strategy. Allocation is strategic, monitoring is robust, and there is a deliberate focus on testing and innovation.

Case Study: Green Clean’s Budget strategy

• Misaligned understanding (-3, -2, -1): Green Clean allocates its marketing budget without clear alignment to business goals. The budget lacks flexibility, with no resources reserved for experimentation, leading to stagnation in results.

• Surface understanding (0): Green Clean allocates a functional budget aligned with its business plan but struggles to reallocate funds from underperforming initiatives. There is minimal investment in innovation, limiting growth potential.

• Deep understanding (+1, +2, +3): Green Clean’s budget is strategically allocated across campaigns, aligned with business goals, and includes 10% for experimentation. Performance is closely monitored, with resources reallocated dynamically to maximize impact.

Conclusion

The Budget sub-dimension emphasizes the importance of strategic allocation, continuous monitoring, and innovation in marketing. A well-structured budget not only aligns with business goals but also ensures flexibility and encourages creative exploration, enabling sustainable growth and competitive differentiation.

Sources

1. Gartner CMO Spend Survey 2020-2021, Gartner, https://www.gartner.com/en/marketing/research/annual-cmo-spend-survey-research

2. CMO Survey 2020, Deloitte, pdf, https://www2.deloitte.com/content/dam/Deloitte/us/Documents/CMO/us-cmo-survey-highlights-and-insights-report-feb-2020.pdf

3. Sortlist, 2021 Marketing Survey: Budgets, Trends and Inspiration for SMBs, https://www.sortlist.com/blog/marketing-survey-smbs-budgets-trends-inspiration/

4. Medium, 5 Steps to Creating a Small Business Marketing Budget, https://medium.com/@the_manifest/5-steps-to-creating-a-small-business-marketing-budget-2f807065068a

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Marketing Canvas - Lifetime

Last update: 10/12/2024

In a nutshell

This comprehensive guide delves into the significance of Average Revenue Per User (ARPU) as a potent metric in business success. Through this exploration, businesses can better understand how much revenue they generate per user and how they stack up against industry competitors. The article not only explains how to calculate and evaluate ARPU but also provides practical strategies to leverage it for sustainable growth. This includes segmenting customer bases, forecasting revenues, and even assessing the effectiveness of various growth strategies like upselling or price optimization. To illustrate the concepts, the article incorporates a real-world case study from the green cleaning industry. Whether you're an entrepreneur, marketer, or non-marketer interested in business strategy, this guide equips you with the knowledge and tools to transform ARPU from a simple number into actionable business insights.

In the Marketing Canvas

The Marketing Canvas is a powerful tool for entrepreneurs and non-marketers to build a robust marketing strategy. It consists of six meta-dimensions, each with four sub-dimensions, for a total of 24 sub-dimensions defining your Marketing Strategy. One of these sub-dimensions is LIFETIME, which falls under the METRICS meta-category.

Defining Lifetime

Customer Retention has become a pivotal concern for subscription-based businesses in recent years. The idea of prolonging your subscribers' association with your business becomes indispensable if the ultimate objective is to generate profits. The long-established belief is that retaining existing customers is more cost-efficient than acquiring new ones, typically by a ratio of 1 to 6. Although the ratio might differ, we can all concur that spending money to acquire new customers is higher than retaining existing ones. Either way, the effect on your customer base is the same (+1 customer -1 lost or evading the loss of 1 customer). We often use the concept of churn (or attrition) to gauge the number of customers departing from your service during a specified period.

Churn rate, a critical metric, represents the percentage of customers discontinuing a company's product or service over a given timeframe. This metric is critical because it provides insights into the health of a company's customer base and its ability to retain its customers. Calculating the churn rate involves dividing the number of customers lost during a specific time period (e.g., a quarter) by the number of customers the company had at the beginning of that time period.

Monitoring churn rate is paramount for companies as it offers a clear image of the number of customers leaving the company, which directly impacts the company's profitability. A high churn rate could signify subpar customer service, inadequate product offerings, or even stiff competition in the market. Hence, it becomes imperative for companies to pinpoint the reasons behind a high churn rate and initiate corrective measures to curtail it.

Furthermore, tracking customer churn enables companies to evaluate how effectively they are retaining their customer base, thereby helping them adjust their customer retention strategies. Companies can exploit customer data to better comprehend their customers' needs, preferences, and behaviors, and modify their offerings and services to meet those needs. By proactively addressing the factors driving churn, companies can cultivate a more loyal customer base and secure long-term success.

Lifetime is an alternative perspective on this phenomenon. Lifetime refers to the duration (often in months) a customer stays with you. The exact specification of this definition can vary across different industries. For instance, in the mobile business, a customer must have received or made a call/SMS/data transaction during the specified period to be considered "active." One method to estimate the lifetime is by dividing 1 by your churn rate percentage. Lifetime is indicative of how successful you are at satisfying existing customers.

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Marketing Canvas Method by Laurent Bouty - Lifetime

In the Marketing Canvas framework, we consider Lifetime as a pivotal metric. It's not a standalone number but tied intricately to your business objectives. Let's explore how it works in a scenario.

Imagine owning a business that generates €1000 a month from 1000 customers, with each spending €1. If you have a churn rate of 10%, you would lose 100 customers by the end of the first month, reducing your customer base to 900. Consequently, your revenue for the month drops to €900, presuming that the remaining customers continue to spend €1 each.

If the trend continues, you'll witness another 10% reduction in customers, leading to the loss of 90 more customers, and leaving you with only 810 customers. The impact on your revenue will be corresponding, reduced to €810. This continuous decline in revenue has a direct bearing on your business goals, making it increasingly challenging to generate profits, let alone achieve growth, when the customer base is shrinking rapidly.

To balance the loss of customers and stabilize revenue, you would need to acquire new customers at a rate faster than you are losing them. This, however, can be a costly and time-consuming task. Therefore, customer retention becomes a cornerstone for the long-term sustainability of your business.

Tools for Lifetime

A plethora of tools exist in the market today, aimed at aiding businesses in calculating and improving the lifetime of their customers.

1. Customer Relationship Management (CRM) Systems: CRM systems like Salesforce or HubSpot help businesses track and manage customer interactions, allowing them to understand better and increase customer lifetime value.

2. Subscription Management Platforms: Platforms like Chargebee or Zuora help businesses manage their subscription billing and provide insights into metrics such as churn rate and customer lifetime value.

3. Customer Analytics Platforms: Tools like Mixpanel or Amplitude allow businesses to track user behavior and engagement, enabling them to identify potential churn risks and take proactive measures.

4. Customer Feedback Tools: Tools like SurveyMonkey or Qualtrics allow businesses to gather feedback directly from customers, helping them understand the reasons for customer churn and find ways to improve customer retention.

Translating Lifetime into Action

Transforming the concept of 'Lifetime' into tangible action involves a thorough understanding of your customer base, their needs, their behaviours, and effectively addressing their pain points.

1. Segment Your Customers: Divide your customer base into segments based on their behaviour, usage, or revenue generated. This allows you to understand the different types of customers you have and develop strategies tailored to each segment.

2. Develop Customer Retention Programs: Develop strategies aimed at improving customer loyalty. This could be through a loyalty rewards program, personalized communication, or by improving customer service.

3. Identify At-Risk Customers: Use predictive analytics to identify customers who are at risk of churning. Once identified, you can take proactive measures to retain them.

4. Improve Customer Experience: Regularly review and improve your product or service based on customer feedback. Ensuring a high-quality customer experience is one of the best ways to improve customer lifetime.

Statements for self-assessment

Is the Lifetime of your users helping you achieve your goals?

It is crucial to evaluate whether your user lifetime is aiding you in achieving your business goals. For a comprehensive evaluation, you can rate your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. You are capable to measure user's lifetime (1/churn) because you know who is buying and using your products and services.

2. Your churn level is below or equal to average market churn level

3. The historical trend of your churn evolution is positive (growth) and present a positive outlook for next year. 

4. Your CRC (Customer Retention Cost) is aligned with your CAC (Customer Acquistion Cost). CAC+CRC is 20-30% for mature business and 50-70% for startups (% of revenue).

Your scores can help pinpoint areas of strength and those requiring attention. The higher the score, the more effective your customer retention strategy is, and vice versa. It's always a good practice to revisit these scores periodically to gauge improvement or diagnose worsening situations.

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Marketing Canvas Method - User Lifetime and Churn

Interpretation of the scores

• Negative scores (-1 to -3): Indicate significant gaps in measuring or optimizing customer lifetime. High churn rates, poorly aligned CAC and CRC, or negative historical trends suggest the need for immediate intervention.

• A score of zero (0): Reflects partial effectiveness. While some aspects of lifetime strategy are functional, inefficiencies in retention efforts or unclear data may limit overall impact.

• Positive scores (+1 to +3): Suggest a well-optimized lifetime strategy. Churn is low, retention costs are aligned with CAC, and historical trends indicate sustainable growth and profitability.

Case study: Green Clean’s Lifetime strategy

• Misaligned understanding (-3, -2, -1): Green Clean does not track churn accurately and struggles to identify who is using its services. Retention efforts are costly, uncoordinated, and misaligned with CAC, resulting in unsustainable operations.

• Surface understanding (0): Green Clean measures churn but lacks actionable insights. While CAC and CRC are within acceptable ranges, historical trends show inconsistent retention efforts, limiting future growth potential.

• Deep understanding (+1, +2, +3): Green Clean accurately measures churn and tracks customer lifetime. It reduces churn through personalized engagement and aligns CAC and CRC efficiently. Historical trends show consistent improvement, supported by sustainable retention strategies.

Conclusion

The Lifetime sub-dimension emphasizes the importance of tracking and optimizing customer lifetime to ensure sustainable growth and profitability. By reducing churn, balancing CAC and CRC, and analyzing historical trends, businesses can build stronger customer relationships and achieve long-term success.

Sources

1. HUBSPOT, What is customer churn, https://blog.hubspot.com/service/what-is-customer-churn

2. HBR, The Value of keeping the right customers, https://hbr.org/2014/10/the-value-of-keeping-the-right-customers

3. Hubspot, Here’s Why Customer Retention is So Important for ROI, Customer Loyalty, and Growth, https://blog.hubspot.com/service/customer-retention

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Marketing Canvas - ARPU

Last update: 27/12/2024

In a nutshell

This comprehensive guide delves into the significance of Average Revenue Per User (ARPU) as a potent metric in business success. Through this exploration, businesses can better understand how much revenue they generate per user and how they stack up against industry competitors. The article not only explains how to calculate and evaluate ARPU but also provides practical strategies to leverage it for sustainable growth. This includes segmenting customer bases, forecasting revenues, and even assessing the effectiveness of various growth strategies like upselling or price optimization. To illustrate the concepts, the article incorporates a real-world case study from the green cleaning industry. Whether you're an entrepreneur, marketer, or non-marketer interested in business strategy, this guide equips you with the knowledge and tools to transform ARPU from a simple number into actionable business insights.

In the Marketing Canvas

The Marketing Canvas is a powerful tool for entrepreneurs and non-marketers to build a robust marketing strategy. It consists of six meta-dimensions, each with four sub-dimensions, for a total of 24 sub-dimensions defining your Marketing Strategy. One of these sub-dimensions is ARPU, which falls under the METRICS meta-category.

Defining ARPU

ARPU, an acronym for Average Revenue Per User, holds significant weight in mobile telecom businesses and, indeed, any business that operates on a user-based model. This value-oriented metric is calculated by dividing the total revenue by the number of active users within a specific time frame, typically a month. The active users, in this context, generally refer to paying customers.

At its core, ARPU is a simple and unambiguous measure that facilitates direct comparisons with competitors, customer base segmentation, and financial forecasting. A business with a higher ARPU, assuming all other factors are constant, enjoys superior profitability.

ARPU's importance is twofold. Firstly, it serves as a testament to a business's customer-centricity, if measured accurately. A company that keeps track of its ARPU has a precise understanding of which clients contribute most significantly to their revenues (the top 10%), and those whose contribution is more modest (the bottom 10%). This metric also reveals the elements contributing to the revenues for each client.

Secondly, a strategy that focuses on improving ARPU is an effective approach to business growth. In the Marketing Canvas framework, we assess whether your ARPU aligns with and advances your business goals. A low ARPU, in comparison to your competitors, implies that each new customer acquired will generate less revenue than a new customer for your competitors. This scenario represents a hurdle that may be overcome by attracting more high-value customers through a stronger brand and value proposition.

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Marketing Canvas Method - Metrics - ARPU

Guidelines

• ARPU provides an easy, high-level benchmark to compare how much revenue one company generates from its users relative to another.

• Examining ARPU by customer segments can yield valuable insights, particularly when paired with other metrics.

• Many financial models start by forecasting your user numbers based on customer acquisition and retention assumptions. By multiplying this number by your ARPU, you can generate a revenue forecast.

Tools for ARPU

Calculating and tracking ARPU is straightforward, but requires the right tools. Revenue tracking software and business intelligence platforms can facilitate the process by automatically calculating ARPU over a given time period. Tools like Tableau, Microsoft Power BI, or Google Analytics are widely used for this purpose. It's crucial to ensure that these tools integrate seamlessly with your accounting or CRM systems to deliver accurate results.

Customer segmentation tools can also be helpful in analysing ARPU across different groups. For example, you might find that customers in a particular geographic area or of a certain age group have a higher ARPU. You can then focus your marketing efforts on attracting more of these high-ARPU customers.

Translating ARPU into Action

After calculating and analysing ARPU, it's time to leverage this metric to inform strategic decisions. A high ARPU relative to your competitors suggests a strong value proposition and efficient monetization. Conversely, a low ARPU may indicate the need for improvement.

If your ARPU is lower than desired, consider strategies such as upselling or cross-selling to existing customers. You could also revise your pricing strategy or explore new revenue streams. For instance, a SaaS company with a low ARPU might consider launching a premium tier of service.

Another way to increase ARPU is by refining your marketing efforts to attract high-value customers. By analyzing customer segments, you can identify the characteristics of your highest-value customers and then target similar prospects.

Statements for self-assessment

Is the ARPU of your users helping you achieve your goals?

Assessing ARPU is vital to gauge whether it aids in attaining your objectives. To evaluate comprehensively, rate your agreement with the below statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. You are capable to measure Average Revenue per User because you know who is buying and using your products and services.

2. The average purchase frequency of your users is above industry average and above direct competitors. 

3. The average spending of each purchase of your users is above industry average and above direct competitors. 

4. The historical trend of your ARPU evolution is positive (growth) and present a positive outlook for next year. 

In addition to these statements, consider how ARPU interacts with other important metrics like Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV). For example, a high ARPU is even more beneficial if it is combined with a low CAC, leading to a high CLTV/CAC ratio.

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Marketing Canvas Method - Metrics - ARPU

Interpretation of the scores

• Negative scores (-1 to -3): Indicate significant gaps in understanding or optimizing ARPU. You may lack the data or strategies needed to measure purchase behavior, spending, and trends effectively, resulting in missed growth opportunities.

• A score of zero (0): Reflects partial effectiveness. While ARPU is tracked, there are inconsistencies in measurement or missed opportunities for improvement. Additional focus on frequency, spending, or sustainability is needed.

• Positive scores (+1 to +3): Suggest a strong ARPU strategy. Metrics are well-tracked and aligned with business goals, exceeding industry benchmarks while supporting long-term customer value and sustainability.

Case study: Green Clean’s ARPU strategy

• Misaligned understanding (-3, -2, -1): Green Clean lacks clear data on who buys and uses its products. Purchase frequency is sporadic, spending per transaction is low, and historical ARPU trends show stagnation or decline.

• Surface understanding (0): Green Clean measures ARPU but struggles to align it with industry benchmarks. While some strategies to improve purchase frequency or spending exist, they lack consistency or long-term planning.

• Deep understanding (+1, +2, +3): Green Clean uses customer data to track ARPU effectively. The brand encourages frequent purchases through a subscription model and increases average spend with bundle offers. Historical ARPU trends show steady growth, and future projections align with the company’s sustainability goals.

Conclusion

The ARPU sub-dimension is critical for understanding and optimizing revenue per user. By accurately measuring ARPU, analyzing trends, and implementing strategies to improve frequency and spending, businesses can drive growth and ensure long-term success. Aligning ARPU with sustainability principles further reinforces customer loyalty and brand integrity.

Sources

1. Definition, Investopedia, https://www.investopedia.com/terms/a/average-revenue-user-arpu.asp

2. HUBSPOT, ARPU: How to Calculate and Interpret Average Revenue Per User, https://blog.hubspot.com/service/arpu

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Marketing Canvas - Influencers

Last update: 1 January 2021

In a nutshell

In today's digital landscape, influencers play a significant role in shaping consumer perceptions and buying decisions. This comprehensive guide dives into the world of influencer marketing, discussing different types of influencers and their potential impact on your marketing strategy. It examines how influencers fit into the Marketing Canvas, a framework for conceptualizing and structuring your marketing strategy. Practical examples are provided to illustrate the potential of effective influencer collaborations. Furthermore, the guide highlights essential tools for influencer management and ways to translate influencer activities into tangible actions. The guide concludes with an emphasis on the need for continuous evaluation and improvement of your influencer strategy, providing a robust assessment framework and practical tips for scoring and improvement. The information in this guide is indispensable for marketers seeking to harness the power of influencers in their marketing strategy.

In the Marketing Canvas

The Marketing Canvas is a powerful tool for entrepreneurs and non-marketers to build a robust marketing strategy. It consists of six meta-dimensions, each with four sub-dimensions, for a total of 24 sub-dimensions defining your Marketing Strategy. One of these sub-dimensions is INFLUENCERS, which falls under the CONVERSATION meta-category

Defining Influencers

In the vast and evolving landscape of digital marketing, the role of influencers has grown exponentially. These influencers span various types, each with unique attributes and reach. According to Hubspot[1], there are five different types of influencers:

1. Micro-influencer: With a modest following ranging from thousands to tens of thousands, micro-influencers can have a profound impact within their specific niche. They have developed trust and rapport with their followers, making them highly effective in influencing their followers' decisions.

2. Celebrity influencer: With enormous followings usually in the millions, celebrity influencers are famous individuals known across many industries. They have the power to influence people through their fame and high public visibility.

3. Blog influencer: Blog influencers have a loyal readership that subscribes to their content. They are skilled in crafting narratives that can engage, inform, and influence their readership.

4. Social media influencer: These influencers have significant recognition across social media platforms such as Instagram, YouTube, Facebook, or Twitter. They interact with their followers directly and shape opinions and trends.

5. Key opinion leader: KOLs are high-level experts on specialized topics within a particular field. They have in-depth knowledge and expertise, making their opinions highly respected and influential. 

Hubspot[1] is defining influencers (also brand influencers) as:

A brand influencer refers to someone who has a following within a specific niche that they engage with regularly. Because of this, they have the power to impact their purchase decisions. The major types of brand influencers include micro-influencer, celebrity influencer, blog influencer, social media influencer, and key opinion leader (each of which we’ll define momentarily).

Introducing the Influencers dimension to the Marketing Canvas was a deliberative decision. While it's easy to group influencers under the Media umbrella, such an approach could underestimate their unique roles and significance in shaping public opinion and influencing consumer behaviors.

A brand influencer is a person who commands a following within a particular niche and engages with them frequently. This relationship allows them to exert considerable influence on their followers' purchase decisions.

In an era where people's trust in brands is increasingly mediated through personal relationships, influencers play a crucial role. They create user-generated content (UGC), a key form of communication thanks to social media and digital publishing tools.

Influencer marketing, therefore, becomes a critical dimension of a business's marketing strategy. It's not just about establishing a specific influencer strategy, but recognizing the important role influencers play within your overall marketing strategy.

To realize the potential benefits of influencer marketing, businesses need to evaluate if and how an Influencer Strategy aligns with their brand purpose, customer profiles, and value proposition.

Examples of successful influencer strategies include Gleam's Electric Adventures campaign for EDF Energy, which reached over 1 million people in the UK through 59 pieces of unique content, and Dell Technologies' influencer-hosted podcast, which fostered strong relationships with industry influencers.

Tools for Influencers

Identifying and engaging with the right influencers necessitates the use of specialized tools. These tools help you discover influencers, manage relationships, track metrics, and more. Examples of such tools include:

1. BuzzSumo: This tool helps businesses find influencers related to specific topics or industries. It also tracks your brand's mentions and engagement across various social media platforms.

2. Hootsuite: Beyond its well-known scheduling capabilities, Hootsuite can assist in identifying influencers by monitoring mentions and hashtags related to your brand or industry.

3. Traackr: This is an influencer relationship management tool that helps you manage and track your engagement with influencers.

Translating Influencers into Action

Influencer marketing is more than just gaining visibility—it's about translating that visibility into actionable results. To do this, consider the following steps:

1. Set Clear Goals: Establish what you want to achieve through the influencer partnership. This could be increased brand awareness, lead generation, or direct sales.

2. Collaborate on Content: Work with the influencer to develop content that aligns with your brand values and message, but also resonates with the influencer's audience.

3. Track Metrics: Monitor the performance of your influencer marketing campaigns, tracking metrics like engagement rate, click-through rate, conversions, etc.

4. Adjust Strategy: Based on the metrics and feedback, adjust your influencer strategy as needed.

Examples

Gleam created Electric Adventures – a standout consumer-focused social media video series that enabled personal stories to be brought to life whilst busting the common myths around electric vehicles and maintaining EDF Energy’s reputation. The campaign created far more in-depth brand engagement than a 30-second TV advert could achieve, reaching more than 1 million people in the UK via 59 pieces of content (source: 2020, https://influencermarketingawards.com/winners/).

Dell Technologies launched a podcast hosted by influencers featuring conversations with technology visionaries. The interesting thing about this program is that Dell is able to develop strong relationships with industry influencers. (source: https://artplusmarketing.com/5-b2b-influencer-marketing-strategies-you-should-try-149e369fd4ae).

Statements for self-assessment

Are your INFLUENCERS helping you achieve your goals?

Evaluating your influencer strategy helps you understand its effectiveness in achieving your marketing goals. Consider the following statements, rating your agreement on a scale from -3 (completely disagree) to +3 (completely agree):

1. You are working with influencers that match your brand purpose and are your brand ambassadors.

2. You have defined clear and actionable goals for your influencer strategy aligned with your marketing strategy goals.

3. You let your influencers develop content that tells a story for their audience in their voice while highlighting your brand.

4. You have set long term metrics for your influencers, preferably annual ROI target in brand image and community engagement.

5. You are working with influencers showcasing a sustainable behavior and you are optimizing the sustainability impact of your influencer strategy

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Marketing Canvas Method - Conversations - Influencers by Laurent Bouty

Interpretation of the scores

• Negative scores (-1 to -3): Indicate misalignment or ineffectiveness in your influencer strategy. Influencers may not represent your brand purpose, and your goals, content, or sustainability efforts may be unclear or poorly executed.

• A score of zero (0): Reflects partial effectiveness. While some aspects of your influencer strategy are functional, others require improvement to maximize impact and alignment with your brand purpose.

• Positive scores (+1 to +3): Suggest a well-rounded and effective influencer strategy. Your partnerships align with your brand’s purpose, deliver meaningful content, and prioritize sustainability, driving long-term engagement and ROI.

Case study: Green Clean’s Influencer strategy

• Misaligned understanding (-3, -2, -1): Green Clean collaborates with influencers who lack alignment with its sustainability mission. Campaigns are disjointed, with no clear goals or metrics, resulting in low engagement and limited brand impact.

• Surface understanding (0): Green Clean partners with influencers who share its values but fails to set clear objectives or provide creative freedom. As a result, campaigns generate moderate traction but lack authenticity and measurable outcomes.

• Deep understanding (+1, +2, +3): Green Clean partners with eco-conscious influencers who embody its mission. Campaigns include compelling stories about sustainable living, measurable goals for engagement and brand awareness, and a strong focus on reducing environmental impact.

Conclusion

The Influencers sub-dimension underscores the importance of thoughtful collaboration with individuals who align with your brand’s purpose and sustainability goals. By setting clear objectives, empowering authentic storytelling, and measuring long-term impact, your influencer strategy can drive meaningful engagement and reinforce your brand’s values.

Sources

1. Hubspot, 2019, Ultimate Guide to Influencer Marketing, https://blog.hubspot.com/marketing/how-to-work-with-influencers

2. Adweek, 2018, http://www.adnews.com.au/news/people-trust-people-but-they-don-t-necessarily-trust-brands

3. SproutSocial, Influencer Marketing, https://sproutsocial.com/insights/influencer-marketing/

4. Harvard Business Review, 2019, https://hbr.org/2019/04/how-brands-can-build-successful-relationships-with-influencers

More on the Marketing Canvas

• Marketing Canvas and Job To Be Done

• Marketing Canvas and Aspirations

• Marketing Canvas and Pains/Gains

• Marketing Canvas and Engagement

• Marketing Canvas and Purpose

• Marketing Canvas and Positioning

• Marketing Canvas and Values

• Marketing Canvas and Visual Identity

• Marketing Canvas and Features

• Marketing Canvas and Emotions

• Marketing Canvas and Pricing

• Marketing Canvas and Proofs

• Marketing Canvas and Moments

• Marketing Canvas and Experience

• Marketing Canvas and Channels

• Marketing Canvas and Magic

• Marketing Canvas and Listening to

• Marketing Canvas and Content & Stories

• Marketing Canvas and Media

• Marketing Canvas and Influencers

• Marketing Canvas and Acquisition

• Marketing Canvas and ARPU

• Marketing Canvas and Lifetime

• Marketing Canvas and Budget

Marketing Canvas - Media

Last update: 15/6/2023

In a nutshell

This comprehensive guide delves deep into the role of media in marketing, helping entrepreneurs and marketers, novice or experienced, understand the subtleties of different media channels and how they can be leveraged for success. We explore Owned, Earned, Shared, and Paid media, providing examples and practical tips for each. This guide also outlines how to translate these theories into effective actions and offers a scoring system for evaluating your current media strategy. It covers potential reasons behind scores and offers insights for strategic improvement. The article concludes with a case study from Green Clean to illustrate how a well-executed media strategy can propel a business forward. This guide serves as an essential read for anyone looking to harness the power of media in their marketing strategy.

In the Marketing Canvas

The Marketing Canvas is a powerful tool for entrepreneurs and non-marketers to build a robust marketing strategy. It consists of six meta-dimensions, each with four sub-dimensions, for a total of 24 sub-dimensions defining your Marketing Strategy. One of these sub-dimensions is MEDIA, which falls under the CONVERSATION meta-category

Defining Media

In any given relationship, communication is vital. The same is true for your business, where the exchange of messages is constant between you and your audience—your prospects, clients, customers. You initiate conversations using your stories and content. But where do these discussions take place? This leads us to a rather colossal industry that encapsulated $629 billion in 2018: media advertising.

A look into the past reveals how companies carpet-bombed potential and existing clients with advertising—a unidirectional monologue that is now more commonly referred to as "Push Communication." As times evolved and technology advanced, the internet and digital marketing gave birth to a more targeted and pertinent approach, transiting towards a pull mechanism.

In today's world, you could adopt a minimalistic approach requiring almost no budget, or you could choose a more sophisticated and expensive strategy. Your media strategy depends entirely on your business's scale, budget, audience, and objectives.

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PESO model from Spinsucks (credentials: https://spinsucks.com/communication/peso-model-breakdown/)

To comprehend this vast landscape, we employ the PESO model. As a business, you already possess some media assets—your website, an email database of your clients or visitors, business cards collected during events, and more. This is your Owned Media. You don't need to shell out extra money to publish content on these channels. This is an excellent start for any business, particularly startups or SMEs.

The second type is Earned Media. Earned media refers to publicity or media relations. It's when you secure a mention in a newspaper or a trade publication, or you make an appearance on a news show to discuss your product. This has been the traditional domain of PR.

Shared Media, also known as social media, is the next facet. It has evolved beyond just marketing or customer service, becoming a primary means of communication both internally and externally for many businesses.

Finally, we have Paid Media. These are channels that you pay for to distribute your content. It could be mass media like TV, billboards, newspapers (also known as above the line), or direct marketing media like mailing lists (referred to as below the line media). Social media platforms such as Facebook also offer paid advertising options.

Your media strategy should be in alignment with your customers, your purpose, and the touchpoints of your journey. An imbalance in your efforts across these four media types, or a lack of alignment of your media strategy with your customers and goals, can compromise the effectiveness of your campaign.

Tools for Media

In the constantly evolving digital era, having the right set of tools is key to managing and optimizing your media presence. Here, we delve into some of the tools essential for each type of media.

For Owned Media, a CMS (Content Management System) like WordPress or Squarespace is necessary to manage your website. Email marketing software such as MailChimp or Constant Contact can assist with email campaigns.

For Earned Media, consider tools like HARO (Help a Reporter Out) to connect with journalists looking for expert quotes or BuzzSumo to analyze which content performs best.

For Shared Media, social media management tools like Hootsuite or Buffer can help manage and schedule posts. Social listening tools such as Sprout Social or Brandwatch can monitor mentions of your brand across various platforms.

For Paid Media, platforms like Google Ads or Facebook Business Manager can help with ad creation and tracking. Tools like SEMrush or SpyFu can provide insights into your competitors' ad strategies.

Each of these tools helps manage different aspects of your media strategy, making your campaigns more effective and efficient.

Translating Media into Action

The effective usage of the media mix is not an end in itself. It's about converting that usage into concrete actions – which ultimately results in achieving your organizational goals.

Firstly, Owned Media, if used effectively, can create a strong brand identity and serve as a reliable information source about your products or services. An action point here is to optimize your website and other owned media to convert visitors into leads or sales.

For Earned Media, the goal is often to build credibility. Positive press mentions can be leveraged to foster trust among your audience. The resultant action would be to convert this trust into customer loyalty and advocacy.

In Shared Media, the action can be twofold. Firstly, it can serve to foster a community around your brand, driving engagement through shares, likes, and comments. Secondly, it can be used to provide customer service, addressing concerns and queries in real-time.

Lastly, Paid Media can drive a variety of actions, from awareness to conversions. The key here is to design the creative and copy in a way that resonates with your target audience and prompts them to take the desired action.

Statements for self-assessment

Is the current Media strategy helping you achieve your goals?

To understand whether your Media strategy is helping you achieve your goals, comprehensive evaluation is critical. Rate your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. Your owned media are solid, consistent with your goals and serve as the foundation for your media strategy.

2. Your earned media strategy helps you to secure authority and credibility of your business to your audience.

3. You have created engagement and community for your customers through your shared media strategy.

4. You have amplified your targeting for achieving your goals through paid off-line and on-line media.

5. Your media strategy is compatible with the concept of sustainability

This scoring system will help you identify areas where your strategy is strong, as well as areas for improvement. For instance, a low score in the earned media strategy may indicate a need for stronger PR efforts.

Remember, media strategy is a dynamic process that requires constant refinement. Regularly evaluating your strategy and making necessary improvements can lead to better alignment with your business objectives, ultimately improving your return on investment.

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Marketing Canvas Method - Conversation - Media Strategy

Interpretation of the scores

• Negative scores (-1 to -3): These scores suggest significant gaps in your media strategy. Your owned media may lack consistency, your earned media efforts may fail to build credibility, and your shared or paid media may not engage customers effectively or align with sustainability.

• A score of zero (0): A neutral score indicates partial effectiveness. While some media aspects may work, others are underdeveloped, limiting the overall impact of your strategy.

• Positive scores (+1 to +3): Positive scores suggest a well-rounded and effective media strategy. Your owned, earned, shared, and paid media are aligned with your goals and sustainability principles, creating a cohesive and impactful presence.

Case study: Green Clean’s Media strategy

• Misaligned Understanding (-3, -2, -1): Green Clean’s owned media (e.g., website) lacks regular updates and optimization. Earned media efforts are sporadic, and shared media fails to engage customers meaningfully. Paid campaigns are generic and do not target specific audience segments effectively.

• Surface Understanding (0): Green Clean has a functional website and earns occasional media coverage but lacks a cohesive strategy. Shared media posts generate limited engagement, and paid campaigns are not optimized for ROI or sustainability.

• Deep Understanding (+1, +2, +3): Green Clean uses a regularly updated, sustainability-focused website as the cornerstone of its strategy. Earned media features testimonials from eco-conscious influencers, while shared media fosters a community through engaging posts about reducing waste. Paid campaigns use targeted ads promoting green initiatives, all while minimizing environmental impact.

Conclusion

The Media sub-dimension ensures that your marketing efforts are strategically aligned across owned, earned, shared, and paid channels. By focusing on integration, engagement, and sustainability, you can amplify your brand's reach, credibility, and impact, fostering stronger connections with your audience and supporting your business goals.

Sources

1. PESO Marketing Model, https://iterativemarketing.net/peso-model-marketing/

2. Spinsucks.com, https://spinsucks.com/communication/peso-model-breakdown/

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Marketing Canvas - Content and Stories

Last update: 15/6/2023

In a nutshell

The Content & Stories sub-dimension in the Marketing Canvas emphasizes the importance of crafting compelling narratives that reflect your organization’s goals, resonate with your audience, and inspire action. Effective content and stories are built on a deep understanding of how users think and speak about a subject, leveraging appropriate mediums to maximize impact. Furthermore, these stories should be truthful, align with sustainability principles, and contribute to building trust with your audience.

For example, Green Clean might tell stories of families creating healthier homes by choosing eco-friendly products, illustrating both the emotional and practical benefits of sustainability.

Introduction

The Content & Stories sub-dimension within the Conversation category focuses on how organizations communicate with their audience. Stories and content are powerful tools for sharing your brand’s purpose, values, and solutions. To be impactful, they must address user needs, convey clear messages, and inspire desired actions while remaining authentic and aligned with sustainability.

Content and storytelling are not just about information—they are about connection, inspiring loyalty, and reinforcing your brand's relevance.

What are Content & Stories?

Content and stories are integral components of a successful marketing strategy. They represent how your brand communicates value, connects with its audience, and inspires action. Content marketing takes a strategic approach to creating and distributing valuable, relevant, and consistent content to attract and engage a clearly defined audience. Its ultimate goal? To drive profitable customer actions.

"Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action."

The true power of content and stories lies in their ability to act as catalysts within your Marketing Strategy. Reflecting on the concept of inbound marketing, the idea of engaging with suspects, prospects, or customers through an ongoing, positive dialogue immediately resonated with me. By designing thoughtful inbound funnels, we can craft compelling stories and create meaningful content that adds value and aligns with customer needs.

Creating impactful content requires more than just originality. Beyond producing your own content, alternative approaches include:

• Curating: Sharing content from trusted sources that align with your brand values.

• Co-creating: Collaborating with others to produce content that reflects your shared vision.

A quote from the CMO of General Electric encapsulates the essence of effective content:

"Content that tries to sell, doesn’t! Content that tries to help, does!"

Your content should resonate with your Purpose, align with your customers' Job-to-Be-Done and Aspirations, and consistently reflect your Value Proposition. Most importantly, it must integrate seamlessly into your funnels and customer Journey.

Marketing Canvas by Laurent Bouty - Stories

The role of storytelling

Storytelling elevates content by weaving narratives that captivate and resonate with your audience. It’s an age-old art that combines facts with engaging delivery to communicate a message effectively. Stories can be grounded in reality or creatively enhanced to emphasize core messages.

What makes a good story? According to HubSpot, great stories share these qualities:

• Entertaining: They capture and hold attention.

• Educational: They provide value and new insights.

• Universal: They appeal to diverse audiences.

• Well-Organized: They follow a clear, logical structure.

• Memorable: They leave a lasting impression.

A strong story keeps readers engaged, ignites curiosity, and establishes an emotional connection. For example, Green Clean could share a customer’s journey toward sustainable living, highlighting how their products played a transformative role.

Aligning Content and Stories with strategy

For content and storytelling to be effective, they must align with your audience’s needs and aspirations. A fragmented or irrelevant strategy will fail to resonate and drive action. When aligned, content and stories:

• Reflect your brand’s Purpose and connect to your audience’s identity.

• Address the Journey by mapping to critical moments.

• Reinforce your Value Proposition with relevance and authenticity.

The power of stories and content lies in their ability to make your brand unforgettable, fostering loyalty and driving sustainable growth.

Content & Stories: an in-depth perspective

To create effective content and stories, businesses must:

1. Align goals with needs: Ensure that storytelling serves both organizational objectives and user expectations, striking a balance between informing and inspiring.

2. Adopt a user-centric approach: Understand how your audience thinks and communicates to ensure your stories resonate authentically.

3. Include clear CTAs: Guide users toward meaningful actions that align with your goals, such as making a purchase or signing up for a newsletter.

4. Optimize medium selection: Choose the right channel or format to maximize the story’s impact, considering both the audience and resource constraints.

5. Communicate sustainability: Use truthful, engaging content to share your sustainability efforts without exaggeration or greenwashing.

For example:

• User-centric: Green Clean’s content addresses common questions about eco-friendly cleaning, reflecting customer concerns and language.

• Sustainability focus: The brand publishes blog articles about reducing plastic waste through refillable packaging.

Translating Content & Stories into action

Content and stories should seamlessly connect organizational goals with customer expectations. To achieve this:

• Plan strategically: Ensure all content aligns with both business objectives and audience aspirations.

• Engage authentically: Use user-friendly language and relatable narratives.

• Inspire action: Include clear, actionable CTAs to guide customers effectively.

• Leverage the right channels: Adapt your content to the medium that maximizes impact.

• Maintain transparency: Build trust through truthful storytelling, especially around sustainability.

Questions to consider:

• Do your content and stories reflect both your organization’s goals and your users’ needs?

• Are your content and stories structured based on how your audience thinks and speaks?

• Do your stories include clear and actionable CTAs?

• Have you chosen the right medium for your content, balancing impact with resource constraints?

• Are your stories truthful and aligned with sustainability principles?

Statements for self-assessment

For a comprehensive evaluation of your understanding and application of the Content & Stories concept, rate your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. Your content and stories goals are reflecting your organisation's goals and user's needs.

2. Your content and stories are created and structured based on your understanding of how users think and speak about a subject.

3. Your content and stories have clear calls to action. You know exactly what you want your users to do after reading.

4. You have chosen your content and stories medium adequately in function of your type of story as well as resources, like time and money.

5. Your content and stories are truthful and communicate about sustainability.

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Marketing Canvas Method - Conversation - Content and Stories by Laurent Bouty

Interpretation of the scores

• Negative scores (-1 to -3): Negative scores indicate that your content and stories are disconnected from your goals, fail to meet user needs, or lack clarity and credibility. These issues can lead to disengagement, confusion, and mistrust. Immediate action is needed to realign your storytelling with audience expectations and organizational values.

• A score of zero (0): A neutral score reflects partial alignment of your content and storytelling efforts with user needs and organizational goals. While some aspects may be effective, gaps remain in structure, messaging, or authenticity. Additional effort is required to refine your approach and ensure consistent impact.

• Positive scores (+1 to +3): Positive scores suggest that your content and stories are well-aligned with organizational goals, user needs, and sustainability principles. They are structured effectively, include clear CTAs, and leverage the right mediums to maximize engagement and impact.

Case study: Green Clean’s Content & Stories

• Misaligned understanding (-3, -2, -1): Green Clean’s content is generic and fails to connect with its audience. The brand uses overly technical language that alienates users and lacks clear CTAs, making it unclear what actions customers should take after engaging with the content.

• Surface understanding (0): Green Clean’s content addresses some user needs but lacks consistency and focus. For example, while blog articles discuss sustainability, the storytelling is not user-centric, and calls to action are vague or absent, limiting engagement.

• Deep understanding (+1, +2, +3): Green Clean creates compelling content that reflects user concerns about sustainability and provides actionable insights. Stories about families using eco-friendly cleaning solutions are shared through engaging videos on social media, with clear CTAs to subscribe to the brand’s services. The content is authentic, transparent, and highlights the brand’s commitment to sustainability.

Conclusion

The Content & Stories sub-dimension is vital for crafting narratives that connect with your audience, inspire action, and reinforce your brand’s values. By aligning storytelling with organizational goals, user needs, and sustainability principles, businesses can create impactful content that fosters trust, loyalty, and engagement.

Sources

1. Download first chapter of ebook on content here

2. Download ebook on content: https://qualifio.com/blog/en/content-marketing-professional-practical-guide/

3. Ultimate guide of storytelling (Hubspot), https://blog.hubspot.com/marketing/storytelling

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Originally published August 2019, updated December 2020

Marketing Canvas - Visual Identity

Last update: 03/06/2023

In a nutshell

Your visual identity is how you translate your purpose into visible elements. It can be defined as the collection of all brand elements that you create to portray the right image of your brand. While the Values will help your employees taking the right decisions and having the right behaviors, the Visual Identity will ensure your customers/clients to recognize (without any doubt) who you are and why you exist.

In the Marketing Canvas

The Marketing Canvas is a powerful tool for entrepreneurs and non-marketers to build a robust marketing strategy. It consists of six meta-dimensions, each with four sub-dimensions, for a total of 24 sub-dimensions defining your Marketing Strategy. One of these sub-dimensions is VISUAL IDENTITY, which falls under the BRAND meta-dimension

Enhancing and Understanding Visual Identity

Visual Identity is more than just a logo or a specific color palette; it's an amalgamation of all tangible elements that help consumers distinguish one brand from another. More importantly, it serves as a visual representation of a brand's core values, mission, and personality.

Consider a company operating in the clean, green, and sustainable business sector. Its visual identity may embody elements of nature, using earthy colors, and organic shapes, alluding to its environmental stewardship.

Brand is your logo and visuals, too. A great brand deserves a great logo and great graphic design and visuals. It can make the difference when the customer is choosing between two great brands. But these alone cannot make your brand great. [2]

Tools for Visual Identity

Crafting a resonant visual identity requires a deep understanding of a brand's core philosophy and aspirations. Subsequently, these insights are transformed into a coherent visual language. The tools for achieving this comprise of:

1. Logo: A well-crafted logo should be instantly recognizable, conveying the brand's ethos in a visually appealing manner.

2. Color Palette: Colors elicit emotional responses and help create brand associations. A well-chosen color scheme can enhance a brand's message and connection with its target audience.

3. Typography: Fonts often subtly communicate a brand's personality. For instance, a modern, clean typeface may suggest a forward-thinking, innovative brand.

4. Imagery: Consistency in the style of imagery used, whether it’s the use of photographs, illustrations, or graphics, adds another layer of depth to the brand identity.

5. Brand Guidelines: To ensure consistent application across all mediums, a comprehensive brand guideline document is necessary. It serves as a rulebook, detailing everything from logo usage to color codes and fonts.

Visual Identity and its Relationship with other Marketing Canvas Sub-dimensions

The real power of visual identity becomes apparent when viewed in context with the other sub-dimensions of the Marketing Canvas. All dimensions are interconnected, and each can impact the other.

• Purpose and Values: These drive the creation of the visual identity. A brand with a purpose centered around sustainability will have a visual identity that reflects this commitment, possibly with green color schemes or nature-inspired logos.

• Positioning: Your positioning in the marketplace should be echoed in your visual identity. If you're positioning yourself as a luxury brand, your visual identity should exude sophistication and elegance.

• Experience: Visual identity plays a significant role in shaping customer experience. It helps in setting the right expectations and evoking desired emotions from customers, thereby influencing their overall experience with the brand.

• Pricing : Your product and its pricing strategy can influence your visual identity. If you sell premium products at a higher price point, your visual identity should align with this to convey a sense of exclusivity.

Translating Visual Identity into Action

Translating visual identity into action requires consistency and strategic integration across all brand touchpoints:

1. Brand Consistency: All visual elements, from the website to packaging, should represent the brand accurately, fostering trust and recognition.

2. Strategic Partnerships and Collaborations: By aligning with like-minded brands, events, or influencers, you can further reinforce your brand's visual identity and expand your reach.

3. Product and Service Design: The design of the products or services should also resonate with the visual identity. For a green business, this could translate to sustainable materials in their product design or eco-friendly packaging.

4. Brand Evolution: As brands grow, their visual identity should also evolve to stay relevant and appealing, while still maintaining a connection to the original brand ethos.

Statements for self-assessment

The visual identity of your brand plays a crucial role in shaping how consumers perceive and connect with your brand. It extends beyond just a logo – it includes color schemes, typography, imagery, packaging, and even the layout of your physical or online presence. It should be consistent and aligned with your brand values, resonating with your target audience while differentiating you from competitors.

To evaluate the effectiveness of your visual identity, measure your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

• Your brand identity is consistent throughout the customer touch points.

• Your brand identity is in line with brand purpose, positioning and values.

• Your brand identity characteristics are different from other competitive brands and are easily attributed to your brand.

• Your brand identity has high like-ability rating with your target audiences.

• Your brand identity accurately reflects the sustainable nature of your products or

  services.

If you find yourself disagreeing with these statements, it's time for a reassessment. This might involve refining your logo, re-evaluating your color palette, redesigning your website or packaging, or even embarking on a complete rebranding journey.

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Marketing Canvas Method - Brand - Visual Identity

Example: Suncharge

To elucidate this further, let's consider a practical example in the context of a clean, green, or sustainable business. Suppose we have a start-up that aims to revolutionize the renewable energy sector by introducing portable, solar-powered chargers for electric vehicles, named "SunCharge". The purpose of the start-up is clear: to promote sustainable energy usage and reduce reliance on non-renewable sources.

The creation of the visual identity for SunCharge, like any brand, starts with understanding its core values, target audience, and unique selling proposition. The brand aims to convey innovation, environmental responsibility, and reliability. With this in mind, the creation of visual assets, such as logos, color palettes, and typography, should all be aligned with these principles.

1. Logo: The logo is the most crucial aspect of visual identity. A logo should be unique and must encapsulate the brand's essence. For SunCharge, the logo could be a sleek, modern design combining a stylized sun and a charging symbol, hinting at the renewable energy source and its application.

2. Color Palette: The choice of colors significantly affects how a brand is perceived. Greens and blues are typically associated with environmental friendliness and trust, making them a good choice for SunCharge. Additionally, warm yellows or oranges could symbolize the sun, bringing a positive and energetic vibe to the brand.

3. Typography: This should reflect the brand's character. For a modern, innovative brand like SunCharge, clean and straightforward sans-serif fonts might be the best choice.

4. Images and Graphics: These should consistently follow the chosen aesthetic. This might include images of clean energy sources, modern technology, and graphics with a simple, modern design.

5. Brand Guidelines: This document ensures consistency across all visual aspects of the brand. It should define the logo usage rules, primary and secondary color palettes, typeface choices, and more. This will serve as a reference for anyone creating materials for the brand, ensuring a unified and coherent brand image.

Conclusion

In conclusion, a strong visual identity does more than making your brand look good. It communicates your brand's values and personality, creates a memorable impression, and fosters a deeper connection with your stakeholders. It's a demanding process, but when done right, the result is a brand that is not only visually appealing but also communicates its essence at a glance.

Sources

1. Woven Agency, https://woven.agency/blog/what-is-the-brand-identity-prism/

2. Harvard Business Review, A logo is not a Brand, https://hbr.org/2011/06/a-logo-is-not-a-brand

3. HowBrandsAreBuilt, https://howbrandsarebuilt.com/blog/2018/12/21/the-brand-identity-prism-and-how-it-works/

4. Inkbotdesign, https://inkbotdesign.com/kapferers-brand-identity-prism/

5. Marty Neumeier's Brand Gap

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Marketing Canvas - Values

Last update: 25/12/2024

In a nutshell

The Values sub-dimension of the Marketing Canvas represents the core principles that define your brand’s identity and guide its actions. Brand values influence every decision, shaping how a brand interacts with customers, stakeholders, and society. Strong, clearly defined values help differentiate the brand from competitors, foster customer loyalty, and ensure consistency in behavior and messaging.

For example, a company like Green Clean might adopt values such as sustainability, transparency, and health. These values not only reflect the brand’s commitment to its mission but also resonate deeply with its eco-conscious customers.

Introduction

The Values sub-dimension in the Marketing Canvas plays a critical role in establishing a brand’s identity and aligning it with its purpose, positioning, and customer expectations. Brand values articulate what the brand stands for, serving as a compass for decision-making and a foundation for building trust and loyalty.

Values are not just words on a page—they are actionable principles that must be consistently demonstrated in the brand’s behavior, communications, and offerings.

What are values?

Brand values are the core beliefs and principles that define what your brand represents. They influence every aspect of your operations, from how you treat customers and employees to how you address societal and environmental challenges.

For example:

• Sustainability might drive decisions about materials, suppliers, or packaging.

• Integrity might ensure transparency in advertising and customer communications.

• Customer focus might prioritize delivering exceptional service.

Green Clean’s values could include:

• Sustainability: A commitment to eco-friendly practices and products.

• Health: Ensuring safe, non-toxic cleaning solutions for families.

• Transparency: Being honest and clear about the ingredients and processes used.

These values help customers understand what the brand stands for and why it matters to them.

Translating Beliefs into Values

Ideally, your Values should be a perfect reflection of your Purpose, or the fundamental beliefs that drive your organization. This consistency allows the values to amplify your brand's purpose, guiding its actions and decisions.

Consider, for example, a green, clean-focused company, which operates under the belief that sustainable practices are paramount to our future. Its core values may include sustainability, accountability, and innovation. These values are the bridge between its purpose - promoting environmental responsibility - and its day-to-day operations, whether it's in product development, supply chain management, or customer service.

Values: an in-depth perspective

Frabrikbrands proposes that effective core values should be Memorable, Unique, Actionable, Meaningful, Clear, Timeless (MUAMCT). This is not a mere acronym, but a mantra for brands to assess the strength and relevance of their values. Each attribute plays a crucial role:

• Memorable: The values should resonate with your team and your target audience, making them easy to remember and internalize.

• Unique: Your values should set you apart from the competition, demonstrating your unique perspective and approach.

• Actionable: They should translate into concrete behaviors and processes within your organization.

• Meaningful: The values need to be significant, appealing to the emotions and beliefs of your stakeholders.

• Clear: Clarity avoids confusion. Your values should be understood by everyone.

• Timeless: Despite market changes, your core values should remain constant, reflecting enduring principles.

For example:

• Internal Alignment: Green Clean’s values guide employee behavior, ensuring all actions align with the brand’s mission.

• External Perception: Customers see Green Clean’s values reflected in its products, marketing, and partnerships, reinforcing trust and loyalty.

When values are authentic and consistently upheld, they strengthen the emotional connection between the brand and its audience.

Translating values into action

Defining brand values is only the first step; the real impact comes from living those values every day. From product development and customer interactions to advertising and community involvement, values must be evident in every touchpoint.

Questions to consider:

• Are your brand values clearly articulated and consistently communicated?

• Do your values align with the current and future context of your industry?

• How do your values differentiate your brand from competitors?

• Are your values evident in your brand’s behavior and interactions?

• How do your values reflect a commitment to sustainability?

Statements for self-assessment

Evaluating your values is as essential as defining them. Ask yourself: Are your brand's values helping you achieve your goals? Are they a reflection of your purpose? Are they incorporated into every aspect of your business?

To assess the effectiveness of your values, consider your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. Your brand values are well defined and clearly articulated.

2. Your brand values are relevant with respect to the context your brand is operating in.

3. Your set of brand values allows to differentiate what you stand for with compared to your competitors.

4. Your brand values are reflected in your brand behaviour and what you.

5. Your brand values are all focusing on sustainability

If you find yourself disagreeing with these statements, it's time to revisit your core values. This might involve a re-examination of your purpose, a re-interpretation of your values, or even a complete overhaul of your organization's culture. Remember, the relationship between your purpose and values should work as an accelerator, not a brake.

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Marketing Canvas Method - Brand - Values

Interpretation of the scores

• Negative scores (-1 to -3): Negative scores indicate a lack of clarity, relevance, or alignment in your brand values. This suggests that your values may not be well defined or communicated, leading to inconsistencies in behavior and customer perceptions. Without clear values, the brand may struggle to differentiate itself or build trust with its audience.

• A score of zero (0): A neutral score reflects uncertainty or incomplete articulation of your brand values. While some values may be present, they lack depth, relevance, or alignment with customer expectations and sustainability goals. Further refinement and integration are needed to make values a meaningful part of your brand identity.

• Positive scores (+1 to +3): Positive scores indicate that your brand values are clearly defined, relevant, and consistently demonstrated. Customers and stakeholders understand what the brand stands for, and its actions align with these principles. Strong values help differentiate the brand, inspire loyalty, and reinforce its commitment to sustainability.

Case study: Green clean’s values

• Misaligned understanding (-3, -2, -1): Green Clean lacks clearly defined values or fails to articulate them effectively. Customers and stakeholders are unsure of what the brand stands for, leading to weak differentiation and limited trust. The absence of a focus on sustainability further disconnects the brand from its eco-conscious audience.

• Surface understanding (0): Green Clean has a general sense of its values but does not consistently reflect them in its behavior or communications. While customers may recognize some alignment with sustainability or eco-friendliness, the values lack depth and differentiation, limiting the brand’s ability to build loyalty or stand out.

• Deep understanding (+1, +2, +3): Green Clean has well-defined, relevant values centered on sustainability, transparency, and health. These values are consistently demonstrated across all touchpoints, from product design to customer service. By emphasizing its commitment to these principles, Green Clean differentiates itself from competitors and builds trust and loyalty with its eco-conscious audience.

Conclusion

Brand values are the foundation of a brand’s identity, guiding its actions and shaping customer perceptions. Clearly defined and consistently demonstrated values differentiate the brand from competitors, foster customer loyalty, and ensure alignment with societal and environmental priorities. By living its values, a brand can build meaningful, lasting relationships with its audience and create a positive impact in the world.

Sources

1. Harvard Business Review, 2002, Make your values mean something

2. Frabrikbrands, https://fabrikbrands.com/how-to-define-brand-values/

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Marketing Canvas by Laurent Bouty

Marketing Canvas - Positioning

Last update: 29/05/2023

In a nutshell

The Positioning sub-dimension in the Marketing Canvas helps define how a brand is perceived by its target audience. Effective positioning differentiates the brand from competitors, conveys unique value, and aligns with the needs and aspirations of its customers. A strong positioning strategy shapes the brand’s identity, supporting its place in the market and creating a meaningful emotional connection with its audience.

For example, a company like Green Clean might position itself as “the eco-friendly cleaning solution prioritizing family health and environmental impact,” highlighting its unique benefits and commitment to sustainability.

Introduction

The Positioning sub-dimension is an essential element of the Brand category in the Marketing Canvas. It establishes how a brand is perceived compared to competitors, how it fulfills customer expectations, and the unique values it communicates. Positioning is more than a slogan or tagline; it’s an overall strategy that guides a brand’s communications, customer experience, and market identity.

A well-defined positioning strategy helps a brand build loyalty, stay relevant, and stand out in a crowded marketplace.

What is positioning?

Positioning represents the perception a brand creates in the minds of its target audience. It reflects what makes the brand unique and why customers should choose it over competitors. Successful positioning resonates with customers by emphasizing specific benefits and values that align with their needs and aspirations.

For instance, Green Clean’s positioning might emphasize its commitment to “safe and sustainable cleaning solutions,” appealing to customers who prioritize health and environmental responsibility. By clearly conveying its unique benefits, Green Clean establishes a distinct identity within the cleaning products market.

Positioning: an in-depth perspective

Positioning goes beyond words; it shapes a brand’s identity and influences how customers experience and remember it. A strong positioning strategy aligns with the brand’s core mission, resonates with its target audience, and clearly differentiates it from competitors.

For example:

• Differentiation: Green Clean’s positioning emphasizes its eco-friendly values, setting it apart from traditional cleaning brands.

• Relevance: By aligning with customer priorities like health and sustainability, Green Clean’s positioning appeals directly to its target audience, strengthening loyalty and trust.

When positioning is effectively implemented, customers can easily understand and identify with the brand’s unique purpose and value.

Positioning Types: Leader, Challenger, Disruptor

The 'Positioning' in the Marketing Canvas proposes three potential roles: Leader, Challenger or Follower, and Game Changer or Disruptor.

1. Leader Brand: This is the choice of mass consumers, often at the risk of losing early brand enthusiasts. These brands enjoy substantial mindshare and market share. They represent the category and dominate the space. For example, in the clean energy sector, a leader might be a company like NextEra Energy, known for its extensive wind and solar power production.

2. Challenger or Follower Brand: These brands turn leaders' strengths into their weaknesses. Recognized as viable alternatives to Leader brands, Challengers often leverage differentiation or provide cost-effective solutions. In the context of green energy, a challenger brand could be a new renewable energy startup offering innovative, localized energy solutions that large-scale leaders cannot provide.

3. Game Changer or Disruptor Brand: Disruptor brands find a 'Blue Ocean' market space for themselves, using a unique product, distribution channel, target market, or price point. For example, a clean energy disruptor might be a brand that creates a new technology for harnessing renewable energy, redefining the industry norms.

Translating positioning into action

Positioning is only effective when consistently applied across all aspects of a brand, from marketing and customer service to product development. Ensuring that all brand elements reflect its positioning strengthens its identity and reinforces customer expectations.

Questions to consider:

• How does your brand’s positioning clearly differentiate it from competitors?

• What unique value does your positioning highlight for customers?

• Does your positioning align with customer values and long-term expectations?

• Are you consistently reinforcing your positioning across all brand touchpoints?

Statements for self-assessment

For a comprehensive evaluation of your understanding and application of the Purpose concept, rate your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. You have a well defined and clearly formulated brand positioning.

2. Your brand positioning is very relevant in the company's current and future context, addressing all the influencing trends.

3. Your brand positioning is attainable taking into account resources and limitations.

4. Your brand positioning is aligned with your company culture and capabilities.

5. Every aspect of your positioning is in line with the concept of sustainability

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Marketing Canvas Method - Brand - Positioning

Interpretation of the scores

• Negative scores (-1 to -3): Negative scores suggest that you disagree or strongly disagree with the statements, indicating a lack of clarity, relevance, or alignment in your brand’s positioning. This can result in a weak brand identity, limited customer loyalty, and minimal differentiation from competitors.

• A score of zero (0): A neutral score reflects uncertainty or incomplete understanding of your brand’s positioning. While some positioning elements may be present, they lack cohesiveness or fail to fully resonate with the target audience. Further refinement and alignment are necessary to strengthen the positioning.

• Positive scores (+1 to +3): Positive scores indicate that you agree or strongly agree with the statements, suggesting a clear, well-defined positioning that aligns with customer expectations, differentiates the brand, and consistently communicates its unique value. This strengthens customer loyalty and brand perception.

Case Study: Green Clean’s positioning

• Misaligned Understanding (-3, -2, -1): Green Clean lacks a clear, distinct positioning strategy, failing to differentiate itself from other cleaning brands. Without focused positioning, customers see Green Clean as generic and have little reason to choose it over competitors, leading to a diluted brand identity.

• Surface Understanding (0): Green Clean has a general positioning related to eco-friendliness but does not fully leverage it to create a distinct identity. Although it acknowledges the importance of sustainability, the positioning is vague or inconsistently communicated, which limits customer engagement and weakens brand perception.

• Deep Understanding (+1, +2, +3): Green Clean has a strong, clearly defined positioning centered on safe and sustainable cleaning solutions. This positioning is consistently reflected across all marketing, customer interactions, and product offerings. By emphasizing health and environmental responsibility, Green Clean builds a unique identity that resonates with eco-conscious customers, distinguishing it from conventional brands.

Conclusion

Positioning is essential for defining a brand’s unique place in the market and ensuring it resonates with the target audience. A well-defined and consistently communicated positioning strategy enables brands to stand out, build loyalty, and create emotional connections. By defining and reinforcing its unique value, a brand can establish a strong, memorable identity in the minds of its customers.

Sources

1. DKY, 2016, https://dkyinc.com/2016/06/brand-strategy-leader-vs-challenger

2. Beloved Brands, https://beloved-brands.com/2018/04/11/disruptor-challenger/

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Marketing Canvas by Laurent Bouty

Marketing Canvas - Purpose

Last update: 11/11/2024

Purpose drives firms to find and create new forms of value (Jim Steingel)

In a nutshell

The Purpose sub-dimension in the Marketing Canvas delves into the core reason for a brand’s existence, beyond profit-making. A clear, meaningful purpose resonates with customers on a deeper level, guiding all aspects of the brand’s identity and actions. Purpose defines the why behind the brand, aligning its actions with values and goals that inspire both internal teams and customers.

For example, Green Clean's purpose might be “to promote healthier living through sustainable cleaning practices,” emphasizing not only clean homes but also environmental stewardship and well-being. This purpose aligns with customer values, driving trust and loyalty.

In the Marketing Canvas

The Purpose sub-dimension is foundational within the Brand category of the Marketing Canvas. It helps define the brand's core mission and guiding values, which shape everything from product offerings to customer engagement. A clear purpose enables a brand to stand out, offering not just products or services, but also a vision that inspires loyalty and advocacy.

Unlike functional goals, which focus on meeting specific customer needs, Purpose focuses on the brand’s larger role in the world and its impact on society and the environment.

What is purpose?

Purpose represents the core mission and values that drive a brand's existence. It goes beyond selling products and seeks to make a positive difference, whether through societal, environmental, or personal impact. A well-defined purpose strengthens the brand’s identity, uniting its internal team and resonating with customers who share the same values.

For example, Green Clean’s purpose might focus on environmental preservation, educating customers on sustainable practices, and providing safe, eco-friendly products. This purpose provides a shared goal that connects the brand with its customers and the broader community.

Purpose: an in-depth perspective

In today’s world, consumers are drawn to brands with a clear and compelling purpose beyond just making a profit. PURPOSE is about defining your brand’s reason for being and its contribution to the world—it goes beyond profit, which is simply a result. A clear PURPOSE allows you to articulate why you are in business.

Simon Sinek’s Golden Circle [1] illustrates that great leaders and brands always start with the WHY. Similarly, having a clear PURPOSE enables you to build a purpose-driven brand that inspires loyalty and connects with customers on a deeper level.

For example, Patagonia’s purpose is to help save the planet by offering high-quality outdoor clothing that is environmentally sustainable.

Patagonia Purpose

http://www.ted.com Simon Sinek presents a simple but powerful model for how leaders inspire action, starting with a golden circle and the question "Why?" His examples include Apple, Martin Luther King, and the Wright brothers -- and as a counterpoint Tivo, which (until a recent court victory that tripled its stock price) appeared to be struggling.

Jim Stengel [2], a businessman, author, and professor, proposes that having a purpose means that you have clearly identified and formulated a brand ideal for your activity that is the higher benefit your brand gives to the people. This can include eliciting joy, enabling connection, inspiring exploration, evoking pride, and impacting society broadly. Stengel argues that personal inspiration can come from the most trying times, as he shares the story of his brother Bob, a beloved physician known for his compassion and dedication towards his patients.

• Eliciting Joy: Activating experiences of happiness, wonder, and limitless possibility

• Enabling Connection: Enhancing the ability of people to connect with each other and the world in meaningful ways

• Inspiring Exploration: Helping people explore new horizons and new experiences

• Evoking Pride: Giving people increased confidence, strength, security, and vitality

• Impacting Society: Affecting society broadly, from challenging the status quo to redefining categories

Businessman, author and professor Jim Stengel believes personal inspiration can come in the most trying times. In this striking talk, he shares the story of his brother Bob, a beloved physician known for his compassion and dedication towards his patients.

Your brand’s reason for being and contribution to the world. It goes beyond profit because that is a result.

In today's crowded marketplace, having a clear purpose can help your brand stand out from the competition. By identifying a purpose that resonates with your target audience, you can differentiate your brand and build a strong, loyal following. This can help you to outperform your competitors, as customers are increasingly looking for brands that align with their values and beliefs.

According to a survey conducted by Deloitte in 2014 [3], organizations having a strong sense of purpose are much more optimistic about their ability to stay ahead of industry disruptions and to outperform their competition. These organizations understand that a clear PURPOSE is a key driver of business success.

Best practices of purpose-driven companies

1. Sustainability: Consumers are increasingly demanding that companies take responsibility for their environmental impact. Purpose-driven brands can incorporate sustainable practices into their operations and communicate their efforts to their audience.

2. Social responsibility: Purpose-driven brands can also make a positive impact on society by supporting social causes, such as poverty alleviation, education, and healthcare. Consumers are more likely to support brands that demonstrate a commitment to social responsibility.

3. Ethical branding: Purpose-driven brands should ensure that their messaging and practices align with ethical values. This can include using fair labor practices, avoiding exploitative marketing tactics, and being transparent about their operations.

4. Authenticity: Consumers can easily detect when brands are engaging in purpose-driven marketing for the sake of profit. Purpose-driven marketing must be authentic and align with the brand's values and practices.

5. Employee engagement: Purpose-driven marketing can also be used to engage employees and build a positive company culture. Companies that prioritize their employees' well-being and work to make a positive impact on society can improve employee satisfaction and retention.

6. Storytelling: Purpose-driven marketing can be more effective when brands use storytelling to communicate their values and mission. Stories can create an emotional connection with the audience and help to communicate the brand's purpose in a compelling way.

Some examples

• TOMS Shoes: TOMS Shoes is a great example of a purpose-driven brand. Their purpose is to improve lives by providing shoes, sight, water, and other basic needs to people in need. For every pair of shoes purchased, TOMS donates a pair to a child in need. This purpose has driven their marketing strategy, as they have built a loyal customer base who are inspired by their mission and values.

• Ben & Jerry's: Another great example of a purpose-driven brand is Ben & Jerry's ice cream. Their purpose is to make the world a better place, through their commitment to social justice, environmental sustainability, and economic equality. This purpose has driven their marketing strategy, as they have built a loyal customer base who are passionate about their values and mission.

Translating purpose into action

Defining purpose is only the first step; the next is integrating it into every aspect of the brand. From marketing strategies to product design, purpose should guide decisions to create a brand experience that consistently reflects its mission.

Questions to consider:

• How is your purpose clearly formulated and communicated?

• Is your purpose aligned with current and future trends?

• How does your purpose differentiate you from competitors?

• Does your purpose inspire stakeholders and instill belief?

• Is sustainability a core element of your purpose?

Statements for self-assessment

For a comprehensive evaluation of your understanding and application of the Purpose concept, rate your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):

1. You have a well defined and clearly formulated purpose.

2. Your purpose is very relevant in the company's current and future context, addressing all the influencing trends..

3. Your purpose stands out from direct and indirect competitors.

4. Your main stakeholders are inspired by your purpose, they believe it.

5. Your company’s purpose is explicitly centered around sustainability.

View fullsize

Marketing Canvas Method - Brand - Purpose

Interpretation of the scores

• Negative scores (-1 to -3): Negative scores indicate that you disagree or strongly disagree with the statements, suggesting that your purpose lacks clarity, relevance, or inspiration. This may result in weak brand identity, lack of stakeholder buy-in, and limited differentiation from competitors.

• A score of zero (0): A neutral score reflects uncertainty or a basic understanding of the brand’s purpose. While purpose may exist, it lacks the depth and alignment needed to inspire stakeholders or differentiate the brand. Further clarity and relevance are needed to make purpose a central part of the brand’s identity.

• Positive scores (+1 to +3): Positive scores indicate that you agree or strongly agree with the statements, meaning your brand’s purpose is well-defined, relevant to market trends, and able to inspire stakeholders. A strong purpose differentiates the brand and creates deeper customer and stakeholder connections, supporting long-term brand growth.

Case study: Green Clean’s purpose

• Misaligned understanding (-3, -2, -1): Green Clean lacks a clear purpose, focusing solely on the functional benefits of cleaning products without a broader mission. This lack of purpose results in minimal differentiation and fails to inspire customers or stakeholders who seek brands with clear environmental or societal commitments.

• Surface understanding (0): Green Clean has a general purpose related to eco-friendly cleaning but lacks the clarity or differentiation to set it apart. Although it recognizes the importance of sustainability, the purpose is not fully integrated or consistently communicated, limiting its impact on customer loyalty and brand identity.

• Deep understanding (+1, +2, +3): Green Clean has a well-defined, relevant purpose centered on sustainable and healthy living. This purpose is clearly communicated across all customer and stakeholder interactions, and the brand’s commitment to environmental responsibility differentiates it from competitors. Green Clean’s purpose inspires trust, loyalty, and advocacy among customers and stakeholders who share similar values.

Conclusion

A strong, clearly defined brand purpose serves as the foundation for building lasting relationships with customers and inspiring internal alignment. By understanding and communicating a meaningful purpose, brands can go beyond transactional relationships, creating a community of loyal customers and committed team members. Integrating purpose into every aspect of the brand ensures that it resonates deeply with both employees and customers, fostering long-term engagement and advocacy.

Sources

1. Simon Sinek, Start with WHY, https://simonsinek.com

2. Jim Steingel, Purpose, https://www.jimstengel.com/purpose/

3. Deloitte, 2014, Culture of Purpose (pdf), https://www2.deloitte.com/content/dam/Deloitte/us/Documents/about-deloitte/us-leadership-2014-core-beliefs-culture-survey-040414.pdf

4. Deloitte, 2022, Unleashing Purpose Across Industries (pdf) https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consulting/us-final-unleashing-purpose-across-industries.pdf

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What is Positioning in Marketing Strategy?

What's the big idea of POSITIONING?

Be clear where you play and how you play! A positioning statement is NOT a brand tagline or a Mantra!

Where do you play?

Where you Play means the category where your products and services will be sold. While the category is something originally designed for managing the relationship between retailer and supplier, the main idea is that you should define the environment where your products/services will be sold (discrete groups of similar products and services).

How do you play?

Positioning could be to make the brand virtually synonymous with the product category so that it is the brand that comes to mind when consumers think of the product. Examples include Xerox, Kleenex, and Scotch tape. Often the brand that stands for the category is the sales and profit leader in that category. In many cases, such a position is gained by being the first brand to aggressively advertise and promote within the product category.

The category is also referred to as frame of reference in the HBR article[4]. 

Brand positioning starts with establishing a frame of reference, which signals to consumers the goal they can expect to achieve by using a brand. In some cases, the frame of reference is other brands in the same category.

A good positioning statement makes it clear who the customer is and what business problem they need to solve. If you do a good job of defining the customer problem, you don’t need to describe your product. The customer will want to learn more in the next conversation. Harvard

Effective positioning should be simple, meaningful, and unique. Simple concepts such as "thickest ketchup" (Heinz), "easy to use" (Macintosh computers), and "tough off-road" (Jeep) are easier than more complex formulations for consumers to process and associate with the brand name.

Positioning must also be meaningful to the target audience. Positioning such as "comfortable jeans for women" (Lee jeans) and "inexpensive air travel" (Southwest Airlines) work well to the extent that these concepts strike a responsive chord with target customers.

A good positioning statement makes it clear who the customer is and what business problem they need to solve (HBR[3]). If you do a good job of defining the customer problem, you don’t need to describe your product. The customer will want to learn more in the next conversation

Finally, effective positioning should be unique within the product category. The positioning "reliable," for example, can be used in a number of product categories such as watches (Timex), appliances (Maytag), and automobiles (Honda). But within any single category, it is difficult for two brands to own the same concept in consumers' minds.

Rules of the Game

1. It is simple, memorable, and tailored to the target market.

2. It starts with the customer problem and not from the product.

3. It has a clear frame of reference.

4. It has clear points of parity with other brands from the same frame of reference.

5. It provides an unmistakable and easily understood picture of your brand that differentiates it from your competitors (points of difference).

6. It is credible, and your brand can deliver on its promise.

7. Your brand can be the sole occupier of this particular position in the market. You can “own” it.

8. It helps you evaluate whether or not marketing decisions are consistent with and supportive of your brand.

9. It leaves room for growth.

Template

For [insert Target Market], the [insert Brand] is the [insert Point of Differentiation] among all [insert Frame of Reference] because [insert Reason to Believe].

For [your target] who wants / needs [reason to buy your product/service], the [your product or service] is a [category] that provides [your key benefit]. Unlike [your main competitor], the [your product/service] [your key differentiator]

Questions you could ask

source: Market Positioning Strategy Guide

Examples

ZipCar: To urban-dwelling, educated techno-savvy consumers [target], when you use Zipcar car-sharing service instead of owning a car [competitive frame], you save money while reducing your carbon footprint [points of difference].

Gazelle: At Gazelle, we pay you for the cell phones, iPads, Macs,and other Apple devices you no longer need—helping you upgrade faster or just putting a little extra cash in your pocket.

Amazon (2001): For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.

Pitfalls as described in HBR[4]

1. Companies sometimes try to build brand awareness before establishing a clear brand position. You have to know who you are before you can convince anyone of it. Many dot-coms know this pitfall well. A number of them spent heavily on expensive television advertising without first being clear about what they were selling.

2. Companies often promote attributes that consumers don’t care about. The classic example: For years, companies that sold analgesics claimed their brands were longer lasting than others. Eventually, they noticed that consumers wanted faster relief more than sustained relief.

3. Companies sometimes invest too heavily in points of difference that can easily be copied. Positioning needs to keep competitors out, not draw them in. A brand that claims to be the cheapest or the hippest is likely to be leapfrogged.

4. Certain companies become so intent on responding to competition that they walk away from their established positions. General Mills used the insight that consumers viewed honey as more nutritious than sugar to successfully introduce the Honey Nut Cheerios product-line extension. A key competitor, Post, decided to respond by repositioning its Sugar Crisp brand, changing the name to Golden Crisp and dropping the Sugar Bear character as spokesman. But the repositioned brand didn’t attract enough new customers, and its market share was severely diminished.

5. Companies may think they can reposition a brand, but this is nearly always difficult and sometimes impossible. Although Pepsi-Cola’s fresh, youthful appeal has been a key branding difference in its battle against Coca-Cola, the brand has strayed from this focus several times in the past two decades, perhaps contributing to some of its market share woes. Every attempt to reposition the brand has been followed by a retreat to the former successful positioning. Brand positioning is a tough task. Once you’ve found one that works, you may need to find a modern way to convey the position, but think hard before you alter it.

In the Marketing Canvas

In the Marketing Canvas Process (more information here), you have to clarify your hypothesis for achieving your revenue goals.

You have 3 potential scenarios, non-exclusive for achieving this: GET, KEEP, and/or MORE (read our article on scenarios).

You should also define the underlying hypotheses of these scenarios: Your positioning as a player (leader, challenger, or game-changer), reasons to believe (brand, differentiation in VP), and your pricing position (cheaper, market price, premium).

More on this...

1. http://blog.ecornell.com/how-to-write-market-positioning-statements/

2. https://blog.udemy.com/positioning-statement-example/

3. https://www.extension.harvard.edu/professional-development/blog/creating-positioning-statement-position-problem-not-product

4. https://hbr.org/2002/09/three-questions-you-need-to-ask-about-your-brand