February 6, 2013

Rolf M. Wulfsberg, PhD

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+ 43 years as a survey researcher and executive

+ Prior to joining S+G, worked at Enterprise IG, several leading survey research firms and the US Government

+ An author and frequent speaker at professional conferences

+ An expert witness before the U.S. House of Representatives and the Pennsylvania Supreme Court

+ Holds a PhD and an MA in statistics from American University, and a BA (summa cum laude) in mathematics and economics from Luther College

+ A former Rhodes candidate, Woodrow Wilson Fellow and NCAA Postgraduate Fellow

Rolf M. Wulfsberg, Ph.D. Global Director Quantitative ResearchSiegel+Gale

Agenda

+ What is fact-based branding?

+ What is the compelling truth of your brand(s)?

+ Predicting ROBI in advance of implementation

+ Warning signs of potentially “bad” research

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What is fact-based branding?

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What is “fact-based branding”?

+ “The use of rigorous quantitative measurement and forecasting techniques to make better branding decisions.”

+ Fact-based branding covers the entire customer life cycle—from the acquisition of new customers to the retention and expansion of existing customer relationships.

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1. It builds consensus within your organization.

Five reasons to embrace fact-based branding

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2. It could add years, if not decades, to your tenure as CMO.

Five reasons to embrace fact-based branding

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3. It provides concrete metrics for evaluating the effectiveness of brand-building initiatives.

Five reasons to embrace fact-based branding

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4. It elevates brand and communications to a vital role within the organization.

Five reasons to embrace fact-based branding

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5. It’s really fun!

Five reasons to embrace fact-based branding

What is the compelling truthof your brand(s)?

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The role of brand in the acquisition process

“Have I heard of your brand?”

“Do I know what category your brand is in?”

“Does your brand meet my needs?”

“Does it meet my needs better than others?”

“Did you deliver your promises?”

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Potential “centers of gravity” for the compelling truth of a brand

1. Infrastructure

2. Products/Services

3. Process/Approach

4. People/Skills

5. Mission/Purpose

6. Emotional connection

7. Emotional projection

8. Personality

There are several methods researchers use to determine the importance of brand attributes

1. Ask decision makers how they make choices

2. Derive importance through simple statistical tools such as correlation and regression

3. Use more complex trade-off techniques such as conjoint analysis or discrete choice modeling

4. Construct a “micro-model” built on decision makers’ brand perceptions

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A chip allocation exercise that compares brands head-to-head establishes both preference and strength of preference

“Suppose you had 11 points to allocate between Exxon and BP to indicate how much you prefer one brand of gasoline over the other.

How many of these 11 points would you give to Exxon, and how many would you give to BP?”

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Chip allocation results can be very informative

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Unlike conjoint or discrete choice analysis (shown below), this model bases preference on brand perceptions rather than forced disclosure

Perceptual maps demonstrate how various brands perform on key preference drivers

Noncompetitive StrengthsDrivers you are perceived to deliver well, but not as well as another brand(s)

Potential EquitiesDrivers that you don’t “own” but you can talk about credibly

Core EquitiesDrivers that you “own” and are perceived to deliver well

WeaknessesDrivers on which you are perceived as weak

Unmet NeedsDrivers on which you lead, but no brand is perceived to deliver well

PERFORMANCE RELATIVE TO BEST IN CLASS

AB

SO

LU

TE

PE

RF

OR

MA

NC

E

HIG

H P

ER

FO

RM

ING

B

RA

ND

LOW

PE

RF

OR

MIN

G

BR

AN

D

NOT COMPETITIVE WITHIN REACH BEST IN CLASS0–0.3

6

0

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The brand maps reveal how the brands are positioned in decision makers’ minds

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AC

TU

AL

PE

RF

OR

MA

NC

E

PERFORMANCE RELATIVE TO BEST IN CLASS

Brand A (Americas)

7

0

~~

ProfessionalC

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NOT COMPETITIVE WITHIN REACH

Long heritageL

Leader in low voltageL

Leader in UL assembliesL

Leader in UL componentsL

C Dependable and reliable

Meet/exceed standardsP

L Leadership

C

A

S

P

V

Character

Added Value

Service/Support

Products

Value for Price

Value for priceV

Responsive serviceS

Local mfg.S

Full supportS StraightforwardC

KnowledgeableC

EthicalC

Knowledgeable employeesC

Easy cataloguesS

Effective, prompt responseS

Delivers when neededSLeader in medium voltageL

Global leaderL

High quality productsP

BEST IN CLASS

Note: Only Key and Secondary Drivers are shown

Predicting return on brand investment (ROBI) in advance of implementation

A simplistic model for measuring ROBI

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There are other factors that affect the business condition

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An improved model for predicting ROBI

Warning signs of potentially “bad”research

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1. Inappropriate respondents

2. Inappropriate level of detail

3. Compound attributes

4. Failure to recognize different use of scales by some cultures

5. Inappropriate combining of scores or ratings

6. Inadequate analysis

Warning signs of potentially “bad” research

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