Take cars, for example. We all know that dozens of options exists that can deliver all the rational benefits: engine size, price range, fuel efficiency, horsepower, and amenities like navigation or premium sound. While I may have many rational reasons for buying a car, the emotional benefits play a huge role in helping me choose one model over another: the look, the way it handles, how safe I feel, etc. Which benefits, though, should be touted in marketing to convince the target audience to buy? Rational benefits might actually have a stronger play in helping sell a premium or luxury car, after realizing that the emotional benefits are obvious. Here’s where consumer context too often gets left out of the mix.

The question marketers ought to ask is this: How does the consumer want to feel about purchasing this product? Our research suggests that certain verticals make big mistakes by telling consumers how they should feel about their brand. A low-interest category like residential electricity, for example, might misfire by trying to differentiate its brand based on emotional benefits, because consumers don’t want to feel loyal to a utility company. Understanding the way your target wants to feel about your brand will help in deciphering which RTBs make their way into your marketing message. Another low-interest category like insurance, however, must lead with emotional benefits if it’s not differentiating on price; the consumers who will pay more for insurance are doing so because of the way they want to feel about their choice: like they’re “in good hands.” While the rational benefits are relevant for insurance, they’re secondary for premium brands of insurance, but primary for low-cost competitors, simply because the consumer context drives different RTBs within this particular category. Marketers of premium brands need to understand that, in order to convince consumers that you’re worth more, having a real understanding of want your target wants to be told is critical to influence purchase.

I know this: My wife doesn’t like it if I tell her, “Don’t be upset,” or “You should be happy about this.” My experience is that consumers don’t like it, either. And I think I’m premium, by the way.

So, while knee-deep in indexing products within the grocery, home, software, and health & beauty categories, I began to wonder what would happen if I indexed the popular sites YouTube, MySpace, and Facebook against each other. Taking information from Mediamark Research & Intelligence® (MRI), Google analytics and other special goodness (we’ll never tell!), our system plotted these guys on a scale of 0 to 100 in what we call “premiumness.”

Not all too shockingly, MySpace came in as the least premium with a score of 5 out of 100, while Facebook ranked at 49, and YouTube at a whopping 96! Among other factors, the interesting details that surface include the knowledge that 49% less information is consumed on MySpace than it’s counterparts. Also, 45% of MySpace users also use Facebook, which, if talking about cream cheese, we’d consider to be a brand loyalty problem.

The data also reveals interesting trends in the buy styles of these media consumers—20% of YouTube users fall into the category of “Buyers of the Best.” This generally denotes that they are brand loyal and tend to be willing to spend that extra dollar to get it. YouTube users also tend to have a higher overall income and have the most loyal following in incomes of $200K+.

While all this data is wonderful, how do we apply it to marketing in the real world? It may not seem too far-fetched from our current assumptions that YouTube is pandemic, Facebook is getting there (if China will let them), and MySpace is just plain sad. However, when structuring a marketing plan for a brand that utilizes these three modes of social media transportation, it is emperical evidence that it does matter which brands advertise where.

For instance, even though my last post indicated that 18–22 year olds are now purchasing more specialty food items, a such brand should not inherently push all their efforts into a MySpace campaign. We learn in this study that not only are MySpace subscribers less loyal to brands, they also aren’t the 18–22 year olds with the cash to spend. Also, they tend to lean toward coupon purchases, which most specialty foods cannot afford to do.

So, while this exercise is not 100% fool-proof—and is done mainly as an illustration (we charge for the real thing!)—it does convey the general idea that not all entities within a category can be premium. There are definite factors determined by the consumer’s perceptions, behaviors and experiences that shape what your brand is. And doesn’t it just make you the least bit curious to find out how premium your brand is?

One interesting seminar I attended features the NASFT 2009 Specialty Food Consumer Information. Without giving the farm away, there were some staggering realizations in this handy dandy little book that raise some very good questions. When I think of advertising in the specialty food category, I immediately envision those ads targeting older women and their family, making great choices for the home with a little extra expendable income. However, the latest data seems to show some staggering shifts in consumer trends.

The report shows that 57% of the 18–24 demographic purchase specialty foods, as opposed to the 38% of those 45–54. Of this large population of youngsters, 64% of them are buying specialty cold beverages (whoo, hoo to Red Bull!), and the majority admit that they buy these items outside of their income bracket mainly to show off to friends—Why, hello, Bill. Would you like a little bit of this brie? Contrary to common sense, the landscape has changed from simply the well-educated foodie, but now it encompasses your average college kid with mom and dad’s expendable income!

This is just yet another example of why it is so important to look at your marketing landscape with more than just assumptions and gumption. There must be more than just a “spaghetti” tactic—an idea we just throw at the wall of consumers and hope sticks to something. Though it is a rudimentary idea, I see so many tv spots, tag lines, etc. that either clients or agencies assume who the audience is, what they want, and how they want it all because that’s how they’ve always done it! Well, let the specialty food industry be an example of how far off target an assumption can be—and how many marketing dollars will be completely wasted.

The other day, Mr. Bossy Boss told me a tale about this Facebook friend calling him and reiterating an interesting conversation he had with “Mr. Boss Man” on Facebook chat. Evidently, “Mr. Boss” had told this friend that he needed money for his cousin but he had been mugged while in the UK. FBfriend replies, “Are you a Nigerian Prince?” The profile hijacker immediately shuts down the chat and unfriends the witty little guy.

Needless to say, Bossy changes his password, and his status to tell everyone about the potential scammer on the loose. Later that night, his wife goes to check his Fbook, and lo and behold … he is not there.

No friends. No profile. No Farmville Animals. Mr. Bossy Boss was Facebook murdered.

Shocking tales like these are occurring more and more within the Facebook realm. Due to its international popularity, Fbook has become the #1 target for spreading viruses, hijacking information and all-around chaotic malarkey! It is an alarming powerhouse in our world today—it has the ability to connect you to anything, but also disconnect you from the world, your fans, and even worse, your consumers—all in the blink of an eye.

Premium brands that don’t engage with newer types of interactive media are like Mr. Bossy Boss and his imposter—someone out there is representing their brand, whether they like or not, and they are taking control. However, if you play the game right, those imposters won’t matter, because, like real-life friends, once you build your relationships, brand advocates will know that you’re not a “Nigerian Prince.” They’ll recognize your brand’s true voice and learn to trust it.

The bottom line to consider is this: Life is scary. And social media is just life happening online. So, learn how to interact effectively with the real world, and you’ll see that being a “victim” online isn’t as easy as it first sounded. Your brand will be able to handle it. Your brand will be better for it.

The video below illustrates just one key component of why it is so hard to do business these days. Basically, the lighter the color of the U.S. of A., the better off we are, the darker, the worse.

Although the “end” date of this downward spiral is a moving target, and one of great debate, if history is any teacher this is a cycle that will turn around. When it does, a generation of Americans who have been forced out of the market for all sorts of creature comforts, or forced to trade down from their preferred brand due to budget constraints, will be ready to spend again.

What should you be doing to build/preserve your premium brand?

• Fish where the fish are today. – Sell where people can buy. Don’t sell where people can’t buy.
• Don’t ignore your legacy customers. – When things turn around, they will be the first to spend again. Do NOT make them feel like you only care about them for their money. Doesn’t work for most relationships, and this is no different.
• Don’t stop promoting. – You have competitors that have cut marketing budgets to preserve margins. This is especially true in public companies that are under intense pressure to hit earnings targets. Take advantage of that to build the perception of your brand as premium in the absence of competition for share of voice.
• Don’t sacrifice your brand quality. – Just because the competition is going down to the 10 oz. box, doesn’t mean you have to. Unless, of course, you REALLY have to. Continue to provide as high a quality product as you can for as long as possible. And when things pick up, you’ll have a reputation of premium quality even through the tough times to fall back on.

Take these principles, apply them, and see what a difference it makes to customer loyalty, brand perception and overall brand equity. Though right now, those valuable assets may seem useless to turn a profit, your brand will be the outlier in the category. These moments of heat are the ones that define your brand’s legacy. Be the bold brand. Be the rebel. Be the premium brand that thrives in tough times, instead of struggling to merely survive.

Last night, while watching my recording of Wednesday’s So You Think You Can Dance (yes, I’m one of those people), the show’s host introduced me to a group called “The Legion of Extraordinary Dancers.” While this seems like a fun name, I was hardly going to believe what a TV show produced by American Idol aficionado Nigel Lythgoe told me. Like any consumer, I had to consider the source.

But as the music began and I saw the opening moments of the performance, there was an immediate sense of pride in making the right decision to stick with the program. The time and effort put into each execution. The attention to detail! They were fantastic. Beyond excellent. They were extraordinary. And I proceeded to go online and watch the YouTube version of the performance below 5 more times that night. And then a few more today.

There were other performers on the show who were great. It’s a dance competition, for heaven’s sake! But these performers stood out because they have created this product, this “brand,” with creativity, something distinguishable, something unique, and, hopefully not to be too trite, something premium. And not every brand can play at this level, but when articulated and executed well, the consumer is hooked. And living up to your claims defines consumer retention.

So, brand managers, before settling with any creative or strategic execution, ask yourself a few things—what is it about your brand that is truly extraordinary? What is it that your product does within its category that is beyond normal? And how can you tell that story in a like fashion? Articulate and demonstrate these assets, and your customers will develop a sense of pride and belief in your brand, as well. And though it may seem basic, it works. Trust us. We at WD create such extraordinary every day.

As I culled through my morning emails, I noticed that of the many emails in my Inbox, 45 were from retailers! And what surprises me the most is there were repeat offenders—3 from Gap, 2 from Overstock.com, 2 from Godiva, etc. How in the world does Gap have enough relevant material to contact me three times in one 24-hour period? And why would I care three different times? Needless to say, I didn’t even open them. And others feel the same way apparently. According to a new poll from the Chief Marketing Officer Council, 64% of consumers say promotional offers dominate both the email and traditional mail they receive, and only 41% view these as must-read communications.

Knowing your customers, especially those who have enough positive disposition towards your brand to give you permission to contact them directly, is essential in building a premium brand. If you can’t be relevant, then why bother? The numbers don’t lie.

Liz Miller, Vice President, Programs and Operations, CMO Council, said “Irrelevant, impersonal communications… (do) not engage a receptive recipient… customers will disconnect and stop doing business with brands who continue to send messages that demonstrate a lack of intimacy, customer insight and individual understanding.”

In the end, there has to be some sort of strategic plan and knowledge of the individual consumer in place. If the powerhouse of social marketing hasn’t proven this already, each consumer wants to have a unique voice, and needs to be marketed to independently.

So, the question a premium brand manager should ask themselves is this: do you manage your information to keep things personal for your consumers? Or, are you just creating opportunities for them to opt-out of engaging with your brand?

I’m definitely not getting a holiday season job at a Microsoft store …

To read more about why brands should be themselves and not fail at pretending to be others, read this blog blast from the past.

Mr. Nese is the perfect example of the fact that just because an opportunity comes along that others have taken and seen success, that doesn’t mean it is the path for every brand out there. His greatest line is that each brand should “set yourself apart and provide your customer with something no one else has.” He did that by offering over 500 premium brands of soda pop rarely found any other place. And from the video, you can tell he’s had fun counting his success as he continues to stick to the ultimate goal of creating something with worth to his customer and not being enticed by every shiny opportunity that comes along.

Just from reviewing and trying to get the social search features activated on my personal Google and Bing searches, it seems to be a lot more complicated than most are letting on. Not only do you have to have an account for each respective engine, but on Google, you also have to submit profile information, links to your social networks, and then be logged in at the time of search. After doing all that, even searching a familiar term like “facebook” yielded no results from my networks. And before you ask, yes, the account was signed up in the Google Lab, the testing section for the feature.

As explained above, these searches only pull up information from the user’s “circle of friends.” So, the doom and gloom of getting any and every negative comment about a brand seems highly unlikely. And although it can be said that a negative comment made within a customer’s social network may be more damaging than one outside, the likelihood of its occurrence diminishes quite a bit when all the filters are in place.

So, brand managers, take heart. The only thing this social search means for your brand is you had better pay attention to what’s being said about your brand online. And I know you’ve heard that one before.