September 22nd, 2009 — Investment Strategies
Under the Thumb of the Baby Boomer Market At the heart of the Rolling Stones’ entrenchment in our society is the band’s deep connection with baby boomers. In the early years, authorities accused the Stones of decadence, undue influence on teenagers, and anarchy. Whereas sociologists called that cultural conflict, it could also be described as creating a relationship with emerging elements of a new culture. The Beatles had made a significant connection with baby boomers, but they opened the door for the Stones to capture an important part of the baby boomer life soundtrack when they stopped touring and split. Once inside the door, the Stones spent the next four decades creating and nurturing an extrasensory connection with the largest demographic segment of the population.
Branding, when done well, generates profits from consumers’ willingness to buy the brand (often at premium prices) and increased repeat purchases. Therefore, from a branding perspective, the significance lies in the sheer size of the market-76 million people, with varying needs, wants, and problems and differing degrees of ability, willingness, and authority to buy. Yet psychographic similarities- shared interests, opinions, and activities-tie these segments together to form the largest base of purchasing power in the U.S. market. One commonality among the group’s members is that they grew up on a diet of classic rock; it is part of them. Understanding the significance of this market helps explain why legendary rock bands are, for the most part, satisfied with staying relevant to their core market and don’t feel the need to position themselves too heavily to today’s teens. Their focus is on remaining a part of the cultural fabric of baby boomers everywhere, a sentiment shared by many great brands, from CocaCola to Cadillac.
September 22nd, 2009 — Investment Strategies
Just as the Grateful Dead has done with its legions of Deadheads, successful brands reach beyond the minds of consumers and into their hearts. Building a brand on the key values of its customers causes them to connect with the brand at an emotional level, much more than just a cognitive level, evoking strong responses and connections that differentiate customers from fans. Fans feel, perhaps without knowing why, “This is my brand.” When this happens on an individual basis, an extrasensory connection is made; and when it happens en masse, cultural adoption occurs.
Attending a rock concert is a valuable way for marketers to experience firsthand the role that emotional connection plays in acceptance of a product-in this case a band or a particular song. Fans like the familiar-if they know a song, they often sing along or at least dance a bit more fervently than they otherwise might. Even during a Paul McCartney concert, fans will sing and dance to the Wings and Beatles songs they know, and head for the restrooms when he announces that the next five songs are from a new CD. Bands know this happens, but they continue to perform the new material for the obvious reason of selling new CDs. But they perform the new material for less obvious reasons as well-to give fans an emotional and memorable experience to connect to the new song, thereby reinforcing relationships with fans, increasing the likelihood of continued cultural adoption, and increasing their longevity in the market. Had Borden followed this strategy in the 1960s or 1970s when the association between Cracker Jack and baseball was ingrained in the American culture, it might have been able to extend the brand and build other Borden brands by piggybacking on the relationship of generations of consumers to the Cracker Jack brand.
September 22nd, 2009 — Investment Strategies
But a song that makes an emotional connection remains in a fan’s personal greatest hits collection; the loyalty and emotional connection is only strengthened with each song that is added to the list.
Jock Bartley experienced much success in the 1970s when his band, Firefall, topped the charts with a string of hits including “That’s a Strange Way” and “Just Remember I Love You.” But it was “You Are the Woman” that made the biggest connection with fans.
“Every female between the ages of 18 and 24 wanted to be the woman portrayed in that song, and that caused their boyfriends and spouses to call radio stations and subsequently flood the airwaves with dedications of the song and the sentiment,” explains Bartley. “The message was simple and sincere, and the song was easy to sing. It was like our fans let us be a singing version of the Hallmark card that said what they weren’t quite sure how to express.” After 25 years, chances are you’ll hear this song in office buildings or elevators. “I remember, not too long ago, sitting in my dentist’s chair and hearing
September 22nd, 2009 — Investment Strategies
Creating and strengthening relationships with customers has been on corporate America’s radar screen for quite some time-with the need for intimacy creating the largest blip. In recent years, marketers have implemented customer relationship management (CRM) programs and strategies to guide their relationships with customers.
Much progress has been made in terms of creating customer databases that track everything from individuals’ product choices and buying patterns to their birthdays and anniversaries. These data help marketers forecast sales of specific items, narrow customers’ product choices to those they are most likely to buy, and even remind customers it is time to buy a birthday gift.
Even the best CRM software, however, can’t transform customers into fans-that requires an in depth, from the gut understanding of and respect for human nature and behavior. The devotion of longterm fans to their favorite performers and bands, from Tony Bennett to the Kinks or 50 Cent, illustrates that it takes a connection at a deeper level to develop brands that people will not only buy, but incorporate into their lives and daily vernacular. And that is a primary goal of brand strategies-determining how strong those emotional connections are and how they can be reinforced or altered to develop loyalty to the brand among a target group of customers.
Rock and roll bands are notorious for writing lyrics, creating music and rhythms, and putting on shows that mirror what people are doing and what they fantasize about doing-the right mix of which entices certain fans to embrace certain bands. Once a performer makes that connection with a fan, it takes song after song, album after album, and concert after concert to cement the relationship. If a performer veers too far away from what has made a connection with a fan in the past, the connection may be jeopardized.