The business results of the enterprise are outside the enterprise, and only the costs are inside the enterprise.

The core business results of an enterprise are in the minds of customers, which affects their choices. This core business result is the brand.

True productism requires not only having the ultimate product, but also being able to promote the brand and establish the ultimate brand recognition in the minds of customers. Otherwise, a large number of unproductive internal costs will be incurred.

Brands influence customers' choices, and its performance is "mental pre-sales", which are sales completed in customers' brains. "Purchase by name" is the result of mental pre-sale

Consumer goods are products and services that use independent brands to influence the choices of individual consumers.

The sole purpose of a business's existence is to create customers. Mental pre-sales are achieved through brand building, and customer creation is completed through mental pre-sales. The created customers reduce various transaction costs through named purchases. The reduction in transaction costs will eventually turn into excess profits.

Customer value = product value brand value

Product value = intrinsic value Extrinsic value, intrinsic value is the value that does not change due to other people's opinions, and is determined by the physical characteristics of the product itself; extrinsic value is the product value that changes due to other people's opinions.

Brand value = Guaranteed value Demonstrates value. Guaranteed value is the value that a brand has in the purchasing process and only in the purchasing process. It can provide customers with a sense of security and allow them to make decisions quickly with confidence. Demonstrated value means that customers consume the product. The communication value generated by a brand in the minds of others means that customers intentionally or unintentionally convey certain information to others through the brands they consume, such as demonstrating identity, status, wealth, knowledge, taste, beliefs, opinions, attitudes, love, etc.

Customer value = product value and brand value. This formula is to create product value and save transaction costs. Product value = intrinsic value extrinsic value, this formula guides companies to produce high-value products. Brand value = guaranteed value and demonstrated value. This formula guides companies to reduce various transaction costs through branding.

The three major contributions are: 1. The ultimate battlefield of competition is the customer's mind; 2. The basic unit of competition is the brand; 3. The brand is the representative of the category and its characteristics.

Companies cannot change customers' minds out of thin air. They can only construct certain facts on the three physical battlefields of products, channels, and media, thereby influencing and controlling customers' minds and producing cognitive changes that are beneficial to the company on the mental battlefield.

Activities on the product battlefield include all operational activities to produce products, but do not include activities to sell products.

How does the channel battlefield affect the minds of customers? The channel in which a brand appears determines the brand's grade. The coverage and probability of the brand's appearance affect customers' perception of "big brands".

media battlefield

In marketing activities, customers care more about the brand than the company to which the brand belongs.

strategy definition

Brand strategy = positioning

A brand is a name that occupies a certain position and represents a certain category and its characteristics. The three common misunderstandings in brand practice are brand extension, brand image theory, and lifestyle branding.

"What are you?" The answer is a certain category. The category is the last level of product classification involved in the customer's purchasing decision. This category can be associated with the brand, and the corresponding purchasing choice can be completed in this category.

Only by clearly identifying categories can brands effectively meet customer needs. This is because category has another definition, which is a specific means of satisfying needs and is classified by customers in a way that they understand.

"What's different" is characteristics, that is, what differentiates your brand from your competitors. This distinction must be a meaningful competitive difference that customers understand and recognize.

The main criterion for effectively answering the question "What's the difference?" is whether the customer will ask "So what?"

The process of finding out "what's different" about a brand in an existing category is the process of finding a blank positioning or confirming the brand's existing positioning, in order to design a corresponding title to occupy a blank position, or to optimize the title to strengthen the existing positioning of the brand. position.

The most important tool for finding positioning is the customer mind map. Blank positioning can be found through mental research, but companies need to evaluate its value, how many customers value this feature, and the degree to which they value it, that is, their willingness to pay. If it is not economically feasible, scale, then this feature is not worth occupying.

Physical characteristics, that is, the inherent functional benefits of the product, are divided into direct physical characteristics and indirect physical characteristics.

Market characteristics, the market performance that can influence customer choice, are the "market characteristics" of the category

The definition of credence: credence is the fact that makes the brand positioning appear credible. It is not necessarily an objective fact, but can also be a cognitive fact. It can be roughly divided into three categories: brand credibility commitment, customer self-verification, and credible third-party certification.

Create a three-dimensional certificate of trust

The difference between market characteristics and certificates of trust, for example: the concept of hot sales (market characteristics) and the evidence of hot sales (certificates of trust) are two different things

All operational activities that drive a brand to occupy a certain position in the minds of customers are called fit in positioning theory.

Interface grading and non-interface grading are called interface grading. Operational activities that can directly transmit information to customers' minds are called customer touch points. Depending on whether it is a customer contact point, the distribution can be divided into the above two categories.

Universal names and special names, whether a certain operation activity is a common practice among competing brands or a unique practice of a certain brand

Independent names and shared names, whether the names within the company are used by only one brand or by multiple brands?

The business model can become a panorama of fit and function, and can comprehensively guide fit design.

The business model is the transaction structure of the stakeholders, and the transaction structure is what each transaction party pays, gets, how to act, how to deal with unexpected situations, etc.

Because we divide strategy into corporate strategy and brand strategy, when we use business models to develop strategic matching, we should also distinguish between corporate business models and brand business models. When multiple brand business models are superimposed into an enterprise business model, each brand should try to share non-interface configurations to improve resource usage efficiency. From a business model perspective, interface grading refers to the transaction structure between the brand and its customers, and non-interface grading refers to the transaction structure between the brand and other stakeholders.