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In my experience, PR and third party validation will build a brand, not advertising. I do agree that the person who wins the perception of being first in peopl
by davemel37 12y ago
In my experience, PR and third party validation will build a brand, not advertising.
I do agree that the person who wins the perception of being first in peoples minds will win the branding battle...but I do not agree that the second place competitors won't build strong, viable companies.
In fact, there are many examples of big brands being overtaken by smart positioning.
Avis claimed, "we are number two so we try harder." to overtake hertz.
Enterprise overtook avis by differentiating itself with a different distribution channel (central biz district instead of airports)
IF you aren't the first mover, you need to position yourself opposite the first mover and you will gain market share. This doesnt mean you shouldn't try. It means you should be smart about how people perceive your brand and your competitors.
- nostrademons 12y agoIn my experience, rental cars are commodities. I search on their websites for the lowest price and go with that. On my last 4 trips I have used all four of Avis, Hertz, National, and Enterprise. If they're trying to build a brand, they suck at it. (I guess that what they have managed to do is distinguish themselves from no-name budget operators...I wouldn't really consider going with a rental car I haven't heard of, even if it's mentioned in the press. But then, that's validating the original article's point, first-mover advantage is immensely important, and no amount of spending is changing that.)
- davemel37 12y agoYou are right, They are commodities, and commodities are where branding matters most. I guess I should differentiate two types of brands. There are category defining brands (i.e. Kleenex, Xerox, Google) and there are recognizable brands. The fact that you dont differentiate between avis, hertz, enterprise, and national, but exclude rent-a-wreck, which is almost always cheaper tells me that the commodity you are convinced you buy in price, is in fact driven by your perception of those brands. Being first in peoples minds is the BEST way to build a brand, but it's not the only way. The fact that Enterprise overtook Hertz as number one, even though they were late to the game...and the fact that you don't buy from only one brand, tells me that being first mover is not the only way to win a market. Although,to be fair, enterprise was a first mover in the "central business district" car rentals. I guess my point is that every business has the opportunity to define themselves in their own category, regardless of market conditions. That is the job of your branding. To create the perception that you are first.
- deleted 12y ago[deleted]