Micro Class on Laddering and Apple's Strategy on Privacy (video)

Prof G Micro Class: Laddering

L2inc.com video above published Jun 21, 2018: Laddering, from cigarette brands to Apple $AAPL, Scott Galloway says smart brands use this brand strategy to one-up their competition.

Sources:
(00:04) Source: “Smoke Gets in Your Eyes,” Mad Men, July 2007. https://imdb.to/2yvu80O
(01:07) Source: Bush-Cheney ‘04, Inc. https://bit.ly/22TVORK
(02:24) Source: “Tim Cook Calls Privacy a ‘Fundamental Human Right’,” Bloomberg Markets and Finance, Jun 2018. https://bit.ly/2IbsC3n

Transcript:
00:01 how do you make your cigarettes we
00:04 breed insect repellent tobacco seeds
00:06 grow it cut it cure it toast it there
00:10 you got it there you go but everybody
00:15 else's tobacco is toasted ... no, everybody
00:17 else's tobacco is poisonous, Lucky
00:21 Strike's is toasted. Well gentlemen I
00:25 don't think I have to tell you what you
00:26 just witness here, I think you do ... In my
00:29 brand strategy course at NYU Stern we
00:31 talked about laddering and it's an
00:33 attempt to D position your competition
00:35 by saying we're this they're this and
00:37 then figuring out what attribute you
00:39 want to talk about that not only
00:40 reflects you in a positive light but
00:42 just as importantly D positions or shed
00:45 your competition in a negative light the
00:47 ultimate laddering and D positioning was
00:49 in 2004 when George Bush's campaign went
00:52 through a series of attributes and
00:53 settled in on that he was resolute even
00:56 when he was wrong he was resolute this
00:58 was the perfect deep positioning of
01:00 Senator Kerry who was seen as a
01:02 flip-flopper this is that ad that one
01:04 George Bush the presidency in which
01:07 direction would John Kerry lead Kerry
01:09 voted for the Iraq war opposed it
01:12 supported it and now opposes it again he
01:15 bragged about voting for the 87 billion
01:18 to support our troops before he voted
01:20 against it he voted for education reform
01:23 and now opposes it he claims he's
01:25 against increasing Medicare premiums but
01:28 voted five times to do so John Kerry
01:30 whichever
01:33 so what does apples key push in terms of
01:36 strategy and communications over the
01:37 last three months its 2d position and
01:40 ladder the rest of big tech the
01:42 Cupertino firm is on a PR tour to
01:44 convince people that unlike its big tech
01:46 brethren its concerned about your kids
01:48 the commonwealth and your privacy Tim
01:51 Cook's privacy is a basic human right
01:54 statement puts a finger squarely in the
01:56 eye of Facebook and Google and was
01:59 convenient because Apple hasn't been in
02:01 the business of collecting data it's a
02:03 little bit like Starbucks saying they're
02:05 worried about offshore drilling it's not
02:06 going to cost them anything to be
02:08 sanctimonious with other people's
02:10 decisions anyways it will be interesting
02:12 to see if Apple's position on privacy
02:15 holds when they start advertising in
02:18 their app ecosystem and their
02:19 advertisers demand the same data on the
02:21 audience they are paying for we see
02:24 privacy is a fundamental human right and
02:27 so to us it's right up there with some
02:31 of the other civil liberties that make
02:35 Americans what they are you as defines
02:38 us as Americans Apple also has said they
02:40 too are looking for a new headquarters [second campus]
02:42 but are not going to engage in a beauty
02:44 contest the results in a win-lose for
02:46 municipalities this is essentially
02:48 sticking their finger in the eye of you
02:50 guessed it Amazon saying hey guys we're
02:53 better than you finally Apple has built
02:55 the most addictive technology for kids
02:57 but at the recent Worldwide Developer
02:59 Conference what took center stage the
03:01 iPhone the home pod no the start with
03:04 safeguards for children's framed as
03:06 digital wellness which includes a
03:07 families page with educational material
03:10 for parents and a downtime app which
03:12 allows parents to put usage limits on
03:14 different installed apps Apple is
03:17 consciously uncoupling from the rest of
03:18 big tech it's a passive-aggressive sure
03:20 so is buying your wife an amazing
03:23 Mother's Day gift and while you're
03:25 saying with that gift I love you you're
03:27 my partner for life you might also be
03:28 saying your gift for Father's Day just
03:31 didn't cut it remember me the guy who
03:33 woke up in the middle of the night to
03:35 feed those little monsters so you could
03:37 head off to Goldman Sachs at 5:30 in the
03:38 morning and be a master of the universe
03:40 which by the way is pretty damn
03:41 emasculating well it's time you stepped
03:43 up with a great gift for
03:45 big dog ruff we'll see you next week I
03:51 can't believe people actually watch that
03:53 stuff
03:55 [Music] Song: “I Woof You” by Heiakim https://bit.ly/2IeAp0A

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Brand Building & Brand Strategy vs Decline in Advertising (video)

Professor Scott Galloway's Micro Class on Brand Strategy

L2inc.com video published Mar 1, 2018: Forget about traditional advertising, here's where you should be investing your advertising budget instead.

Google and Facebook dominance forecast to rise | ft.com: "Tech duopoly to account for 84% of online advertising spend this year, forecasts report." Editor's note: But how effective is it? source: Statista

Auto-generated transcript via YouTube.com:
00:01 this week a summary of the first few
00:04 classes in my brand strategy course so
00:06 loosely speaking think of a brand as all
00:09 the touch points that create emotional
00:10 and tangibles surrounding a product
00:13 there are three basic categories or
00:16 three basic ways to build a brand
00:17 there's pre-purchase purchase and post
00:20 purchase pre-purchase advertising public
00:23 relations the things we typically
00:25 consider brand building purchase where
00:27 you actually buy the product
00:29 distribution in the store and then post
00:31 purchase loyalty programs customer
00:34 service warranties what do we see
00:36 happening pre-purchase which has been
00:38 massively over invested is in structural
00:41 decline why because advertising stocks
00:43 and the advertising industrial complex
00:46 is collapsing young wealthy people ie
00:48 anybody a brand wants to reach have
00:50 decided to opt out of advertising which
00:52 has become the tax that the poor and the
00:55 technologically illiterate pay what does
00:56 this mean for you it means if you're a
00:58 brand you need to reallocate capital out
01:00 of pre-purchase into purchase or post
01:02 purchase so we take that capital out of
01:04 pre-purchase which is the Ricky move and
01:07 brand strategy and we allocate it
01:08 towards the medium whose death has been
01:10 greatly exaggerated and that is stores
01:12 the gangster move of the last 20 years
01:15 that has created more shareholder value
01:16 than any decision in the history of
01:18 business with Steve Jobs crazy
01:20 irrational decision to zag while everyone
01:23 was zigging and take money out of
01:24 advertising and allocate it into a
01:26 medium that was dying specifically store
01:28 this is our store and the first quarter
01:32 of the store has our home section and
01:35 our Pro section with all our great Pro
01:37 products and every product we make is in
01:40 this first 25 percent of the story and
01:42 see the whole product line stores are
01:44 the consummation of a relationship you
01:47 hear about somebody a good family nice
01:49 fun to be around and pre-purchase
01:51 through advertising but the physical
01:53 interaction the first kiss sex with the
01:57 product who we personify and have a
01:58 relationship with is at the store you
02:01 have sex with Tom Brady or Giselle you
02:03 go into an Apple store you go into a
02:05 Samsung store Samsung distribution which
02:07 is an AT&T; or Verizon store that's
02:09 having sex with a guy named Roy with a
02:11 nametag in bad lighting
02:13 you know what this is yes that is a ten
02:16 times larger than life replica of your
02:17 penis that's how the various point of
02:21 distribution stores are more and more
02:23 strategic and wealth
02:25 square footage and stores will decrease
02:27 the amount of money spent on each square
02:30 foot relatively will increase the other
02:32 gangster move post purchase warranties
02:35 some sort of guarantee some way of
02:37 getting data it's really post purchase
02:40 intelligence where we take data from the
02:42 purchase and use it as a means of
02:44 whipping the consumer back around to
02:46 that purchase funnel again think of the
02:48 clock as being an axis unfurled across X
02:53 Y or an x axis pre purchase purchase and
02:57 post purchase we want you to have a bias
02:59 we want to lean the axis this way
03:02 take money and allocation in your own
03:04 human capital out of pre purchase and
03:07 either put it in to purchase the stores
03:09 are under invested you can still make
03:10 money in retail in stores as long as
03:12 there's an omni-channel and we do click
03:14 and Collect but really try and get to
03:16 post purchase who are the best brand
03:18 builders in the world hands down Tobacco
03:20 take a product whose primary benefits
03:22 are death disease and disability and
03:25 turn them into the most aspirational
03:26 brands that make us bill tough and cool
03:29 and you have the best branders in the
03:30 world why are they the best brands in
03:32 the world because we turn them into the
03:34 best brand builders in the world when
03:35 they were advertising on television our
03:37 mothers our sisters and our daughters
03:38 kept dying and so we said that's it
03:41 we're pissed off you can no longer
03:43 advertise so what do they do they took
03:45 all of this capital and they allocated
03:47 it to purchase and they put cute
03:48 pictures of camels and bodegas at
03:50 distribution just about the time this
03:53 was losing its effectiveness good for
03:54 them but here's what happened our
03:56 sisters our daughters and our mothers
03:58 kept dying so we said that's it no more
04:00 cute camel Joey points of purchase just
04:03 as this was starting to lose some
04:04 momentum and they built the largest
04:06 databases in the world and when they
04:07 since you were stopping smoking they
04:09 started sending you Marlboro points or
04:10 coupons to get you back into the
04:12 franchise the original CRM database
04:15 marketers tobacco companies there are
04:17 exceptions to every rule pre purchase ad
04:20 supported media is not going away it's
04:22 just going to be a place to work or in
04:24 as a matter of fact I'll be watching at
04:26 supported media tonight I'll give you
04:29 one hint we'll see you next week
04:47 [Music]

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