【Satoshi Akutsu × Takashi Asaoka Dialogue】 Brand Marketing for the Future (Part 1)

What changes are occurring for companies and customers
What changes are occurring?

 

The development of social media and other factors is challenging the very nature of brand marketing. Where can we find clues to decipher this? Professor Satoshi Akutsu of Hitotsubashi University's Graduate School of International Corporate Strategy and Takashi Asaoka, Head of the Consulting Department at Dentsu Consulting Inc. Marketing Design Center, held a dialogue on the future of brand marketing, which will determine corporate growth strategies.

"The Concept of Designing Customer Brand Experiences"

The focus has become harder to pinpoint

 

Asaoka: The Dentsu Consulting Inc . engages with corporate executives and strategic planning departments from the perspective of "branding as a management asset." Recently, I've noticed changes in the nature of inquiries and consultations, sparking new concerns within me. In the world of brand marketing, there's a significant shift from "things (product value)" to "experiences (brand experience value)." How do you interpret this transformation, Professor Akutsu?

Akutsu: The phrase " from product to experience" has been around for a while. Before delving deeper, let's clarify the definitions from a marketing perspective. "Product" refers, of course, to the tangible item itself. Previously, appealing to customers meant creating good or innovative products.

In contrast, "experience" can be understood in two phases. The first type of "experience" is an individual experience. For example, time spent at a luxury hot spring resort is an experiential value enjoyed within the harmony between oneself, the resort, and its surroundings. The second type of "experience," however, centers on a group. Consider the excitement at a national "yuru-chara" (mascot) competition, where fans rally to get their local character to win. In current brand marketing, this second type of "experience" is increasingly emphasized.

Asaoka: You're absolutely right. Over time, the added-value elements for brand differentiation have changed. We've moved from the era of product value to the era of individual experiential value, and now to the era of collective experiential value. The proliferation of social media has advanced collaboration (co-creation) between companies and customers, making it easier for individual experiences to spread outward.

Akutsu: However, we must be careful. While information diffusion has certainly grown, the "individual" experience remains crucial, and the "product" perspective is also important. In recent years, striking that balance has become increasingly difficult, and I think it's become harder to see where the focus of branding should lie.

 

Things remain important, and experiences are also crucial in this era

 

Asaoka: When we talk about " shifting from products to experiences, " there's a tendency to think, "The era of products is over. Now it's all about creating experiences." But as you pointed out, Professor, that might be too simplistic. Take environmental issues in the automotive industry, for example. Without manufacturing that adapts to these changes, the experiences customers have won't change either. There's that kind of interdependence. Rather than a complete shift from "things to experiences," isn't the accurate understanding that "things remain important, and we've entered an era where experiences are also important"?

Akutsu: " Experiences," meaning brand experience value, can take many forms. However, when trying to create a shared story, companies deeply rooted in manufacturing might find greater resonance by emphasizing their passion, philosophy, and principles behind the products. Sometimes, starting from "experiences" leads back to the "philosophy of manufacturing." The idea that "products remain important, and we've entered an era where experiences are equally important" is absolutely correct.

 

The key lies in how well we support customer communication

The depth of a company's embrace in welcoming customers is put to the test

 

Asaoka: If product-centric brand marketing—focused on the "thing," or product value—is "company-centric," then experience-centric marketing—emphasizing the "thing," or brand experience value—can be called "customer-centric." How customers perceive the brand becomes the crucial benchmark. Of course, a clear brand identity is a prerequisite. What are your thoughts on this "customer-centric" approach?

Akutsu: The core principle has long been that while an unchanging identity must be clearly defined, the points of contact with customers must constantly evolve. That is the "secret to brand management." However, I believe it's easier said than done. For fashion brands, linking identity to customer needs is relatively easy to understand as the most critical task, but this isn't necessarily the case for brand management in general companies. In that sense, customer-centric marketing can be said to steer management toward linking identity with customer needs. For example, it encourages active participation in communication via social media, enabling constant listening to consumers' real voices about "what is being demanded right now." This naturally heightens awareness of the connection between identity and customer needs.

Asaoka: Indeed, with the development of social media, we can now analyze customer comments through tools like social listening, not just count "likes." The ability to visualize and quantify customer feedback represents a significant shift.

Akutsu: Conversely, when enormous amounts of data become easily accessible to anyone, there's also the risk of being swallowed up by a sea of information. That's why the importance of grounding yourself by clearly defining "who you are" – your identity – increases. In fact, I feel like requests from companies wanting to discuss brand identity have increased again recently. With the advancement of information technology enabling companies to establish numerous direct touchpoints with customers, brand management seems to have returned to its roots, focusing on establishing a solid identity.

Asaoka: Regarding customer touchpoints, when speaking with clients, I often use the expression "depth of understanding." When a company possesses this depth, customers can truly connect with it. Many customers—particularly those with strong information-sharing capabilities—are adept at creating context from multiple sources of information. When such customers share content on social media, it becomes a story. This story can amplify at the points of contact with the company, potentially becoming a source for expanding word-of-mouth. A clear identity and deep pockets—meaning deep points of contact. Building brands in this way will likely become increasingly important going forward.

 

Simply providing a stage for customers isn't co-creation

 

Akutsu: So, the design capability that connects a brand's identity with customer needs and perceptions through context is what constitutes "brand communication." Technological advances have created a situation where, once customers are drawn into the fold, they themselves create the context. Companies increasingly take on a supporting role, making customers the protagonists. However, the recent trend is that even as supporting actors, companies must now also play leading roles and supporting roles. In this context, continuously creating mechanisms and ideas that attract customers becomes crucial. Yet, brand managers who have long focused primarily on "products" often find their thinking limited. It's not uncommon for them to find themselves scratching their heads, wondering, "What should we offer?" Nevertheless, I believe the current landscape shows that companies succeeding are those that don't give up easily and instead cultivate creative, flexible thinking.

Asaoka: The "stagehand" perspective is crucial for companies . Previously, stagehands were expected to prepare the stage for the protagonist—the customer—but that approach doesn't foster co-creation. Now, their role is to support customer information sharing and communication within the community. This shift in the stagehand-protagonist dynamic is essential when considering customer-centric brand marketing. Hearing your insights really brought that home.

 

The next installment is scheduled for Wednesday, January 29.