Winning brands connect emotionally

Gavin Etheridge

“In the face of technological innovation, globalisation and a bewildering array of traditional and online media, brands can and often do win, now more than ever before,” says Gavin Etheridge, Cape Town director of Epic MSLGROUP, “When a deep emotional connection is cultivated between companies and customers, it is brand loyalty, and not improved features, augmented services or innovative designs, that protect their market share.

“Few markets display this phenomena better than the pharmaceutical industry. Almost entirely driven by product promotion in the past, doctors were considered the only target market. In a push marketing strategy, medical representatives would persuade clinicians to prescribe their medicine on the basis of specific product features and medical benefits.”

However, expiring drug patents, increased demand for generics, globalisation and an increasing number of empowered consumers, has forced pharmaceutical companies to relook this approach.

On expiration of a patent, competing pharmaceutical manufacturers are permitted by law to produce a generic drug, identical in chemical composition and efficacy as their patented counterpart, yet much cheaper.

“The patent owner has only a limited time of exclusivity to market its original branded pharmaceuticals. In South Africa the law stipulates that, despite the doctor’s prescription, the pharmacist must inform their patient if a cheaper generic equivalent is available."

“The empowered consumer is increasingly expecting more for less, and can switch between products faster than ever before. This, and the deregulation of many over the counter medicines, has forced pharmaceutical companies to rethink how they connect with consumers. This is an example of only one sector and the game is changing for all industries locally.”

Power of recommendations

A recent study published in September 2015 by Nielsen suggests that all industries will soon need to start reconsidering how they communicate with their target market and stakeholders. Empowered consumers are fast losing their faith in all forms of traditional paid advertising. According to the study, six in 10 global respondents say they do not trust adverts on TV, newspapers and magazines, yet eight in 10 (83%) say they completely or somewhat trust the recommendations of friends and family.

In a 2012 CEB study, done by Saatchi & Saatchi, 64% of respondents in the cited ‘shared values’ as the primary reason to build a relationship with a brand.

“Under these circumstances the reputation of companies, encapsulated within the intangibles of their corporate brand and not the tangible benefits of their products, will become the main determinant of consumer choice."

“If we accept that a brand is your company’s promise, then surely trustworthiness is the foundation of any branding strategy. In one sense, a brand is a form of assurance; a promise of legitimacy and security that differentiates your offering from the noise and the clutter created by your competitors."

“If you want the market to trust you, there needs to be an emotional connection not only between the company and its target market, but with each and every stakeholder."

“Coca-Cola is not the best tasting cola. Microsoft does not have the best operating system. However, it is about the position these brands hold in the mind of the consumer,” says Etheridge, quoting Steve Tobak of Entrepreneur Magazine America.

“South African consumers don’t buy products, but instead they buy the benefits they derive from them. Loss of market share will not be as a result of uncompetitive products, but a company’s inability to establish an emotional connection with their market.”