Page 109 - MYM 2016

What is trust?
Trust comes from the Old Norse word ‘traust’ meaning ‘con dence.’ Trust is the con dence customers have that a brand will live up to its promises. Trust is the con dence suppliers have in doing business with you. It is the con dence employees have in your leadership. It is the con - dence investors have in your business future.
Trust has been at the basis of business since the beginning of business. A trademark, hallmark, maker’s mark was a trusted sign of quality: a sign giving you con dence that the silver was truly ster- ling; the pewter was the correct mixture of alloys; the cloak was from the expert tailor you preferred; the silks were from China; the dinnerware from Del ; the beer from your favorite brewery.
e trusted mark not only identi ed and pro- tected the reputation of the maker but protected the purchaser as well. A creator could trust that others would not get a free ride on his or her hard-earned reputation. A buyer could trust the origin and qual- ity of the work. Now, centuries later, this is still the big challenge of brand management: make your brand a mark you can trust.
how do we build Trustworthy brand valueTM?
Marketing is about creating value for custom- ers. Yet, marketers are o en misguided in how
to de ne value. Marketers tend to assess brand worth by asking customers whether a brand is a “good value for money.” As a brand evaluator, this generic metric is killing perceived brand value understanding.
Our recent research posits a new approach: it shows that asking whether a brand is “good value” does not correlate with price sensitivity. It is too general. It is too vague.
On the other hand, Trustworthy Brand Value is more discriminating. It correlates with price sensitivity. As Trustworthy Brand Value increases, customers are less price sensitive and are willing to pay more.
In our most recent book, Six Rules of Brand Revitalization: Second Edition (Light and Kiddon, March 2016), Rule #5 is Rebuild Trust. How can brands create and build Trustworthy Brand Value?
Here are seven common sense marketing actions for building Trustworthy Brand Value. ese principles focus on guiding brands to pro tability.
Seven actions for building Trustworthy brand value
1: To be a leader, act like a leader
Be a trustworthy leader. Trust leadership is not about how big you are; it is about how big you act. Leadership is not about the size of the business. It
fig. 2: a brand’s “good value” doesn’t correlate with price sensitivity, but trustworthy brand Value does
Good value for money Trustworthy Brand Value
sPotlight oN braNDiNg
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Price Sensitivity
Price Sensitivity