Sensory and social approaches for getting inside the minds of today's Generation X and Generation Y consumers. Hardhitting marketing that emphasizes stimulation of the five senses and social needs and values of GenX and GenY. Includes a section on both effective and ineffective advertising and promotions to reach the GenX and GenY.
Linked (MYSE:LNKD) Q3 2011 Earnings Call, November 3, 2011
A Manifesto On Neuromarketing, Or How To Get Inside The Mind Of Today's Consumers And Win Them Over
1. PBT Consulting
Strategic Marketing, Business Planning, Research, Venture Capital and Financing
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04/11/2011
A MANIFESTO ON NEUROMARKETING, OR HOW
TO GET INSIDE THE MIND OF TODAY'S
CONSUMERS AND WIN THEM OVER
MY OTHER ONLINE SITES
LinkedIn: turk5555
MySpace: tooshyniceguy
Other...:
http://www.pointblankbusinesstechnology.com/BusinessPlanInquiry.htm
Twitter: turk5555
YouTube: cabrone5555
RECENT POSTS It takes more than a fancy logo, fancy catch phrase or brand character to connect
with today's consumers. Today, what counts far more than a puma, a monkey, or a
FACEBOOK AND BAIDU, snarling aardvark is the cross-sensory experience your brand offers. It's not just the
CHINA'S SEARCH ENGINE
emotion, beliefs, personality and desires your brand evokes, but its feeling, touch,
GIANT, FORM PARTNERSHIP TO
BUILD A NEW CHINESE SOCIAL view, sound and smell, of which the logo is just one small part.
NETWORK
When marketing to today's Generation Y (a.k.a. Millennials) and Generation X consumers
NUCLEAR POWER PLANT it's very important for marketer's to use a sensory marketing approach that appeals to the
CONSTRUCTION PLAGUED BY five senses: sense: hearing, sight, touch, smell, and taste and fulfills their social needs or
COST OVERRUNS, LONG
values.
DELAYS AND LACK OF
PRIVATE FUNDING The sensory marketing approach has given rise to the science of neuromarketing, a new
OUT-OF-HOME ADVERTISING field of marketing that studies consumers' sensorimotor, cognitive, and affective
SPENDING UP BY 4.1% IN 2010, response to marketing stimuli. In effect, getting inside the head of the consumer.
BUT 'EYES ON' MEASUREMENT Neuromarketing has often been equated with brainwashing, an evil concept if there ever
METRIC NOT WITHOUT was one, which results in the forced modification of human behavior by repeatedly
CONTROVERSY
exposing individuals to the same stimuli over-and-over again.
WINKLEVOSS TWINS' SECOND
LAWSUIT AGAINST ZUCK AND Neuromarketing has been used very successfuly in the political arena, where candidates
FACEBOOK DISMISSED BY U.S. for public office use "negative" advertisements that paint their opponent as "soft" on a
COURT OF APPEALS popular political issue (e.g. national defense, crime enforcement, etal) or "for" an
FORRESTER RESEARCH: unpopular political issue (e.g. abortion, universal healthcare, etal). If voter's are continually
MOBILE APP REVENUE TO told that Barack Obama is not a legal American citizen or is a muslim, a lot of people will
REACH $38 BILLION BY 2015 eventually believe that as true. Both parties are guilty of using negative ads, but I won't
DUE TO EXPLOSION IN get into political issues.
SMARTPHONES AND TABLETS
INFOGRAPHIC: 150 YEARS OF
Without reallly realizing it, marketer's have been using neuromarketing for quite some
MASSACHUSETTS INSTITUTE OF time. When you come to think about it, a firm's brand equity, is really the sum of all the
TECHNOLOGY (MIT) ALUMNI influences, both sensory, emotinal and social that consumer's connect with a brand. No
where is this more importan5t than when marketing to Generation X and Y. This is based
A MANIFESTO ON
NEUROMARKETING, OR HOW TO on my observance of human behaviors especially among Millennials and Gen-X because
GET INSIDE THE MIND OF they are both sensory and social animals. They are very susceptible to sensory
TODAY'S CONSUMERS AND WIN stimulation and place very high value on social interaction and relationships. In fact, I
THEM OVER have developed a manifesto or marketing strategy built on two pillars:
NBC'S 'SATURDAY NIGHT LIVE'
l Sensory Approach - A marketing approach that involves the five senses: sight,
ADJUSTS PROGRAMMING TO
APPEAL TO A GROWING BABY
hearing, smell, taste and touch.
BOOMER PRIME-TIME TV l Social Approach - A marketing approach that involves the social needs of the
AUDIENCE individual.
VENTURE CAPITAL INDUSTRY It has been my experience that employing only a sensory approach will not prove as
COOL ON THE IDEA OF THE SEC successful, and that marketer's must integrate a social approach into the equation. Trust
EASING RULES ON SALES OF
me, you do not want to get this part wrong.
PRIVATE COMPANY STOCK
MARKETER'S BEWARE: In developing my manifesto, I discuss the general marketing principle's I have employed in
MARKETING TO BABY marketing to Gen-Y and Gen-X, and the best and least successful advertising and
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at-counts-f.html
2. BOOMERS REQUIRES PATIENCE, promotions strategy's that should be used for both demographics.
TACT, RESPECT AND THE RIGHT
APPROACH Marketing To Gen-Y and Gen-X
RECENT COMMENTS
GENERATION-Y MARKETING APPROACH
Tommy on HOW MUCELL®
MICROCELLULAR FOAMING
TECHNOLOGY FOR INJECTION
MOLDING MAKES THINGS Gen-Y consumers are the most ethnically diverse of all demographics. Gen-Y’s are interested in pop
STRONGER AND LIGHTER culture, being part of the latest fad, things or activities that are trendy, hip and cool, experiencing new
tastes, listening to the latest music, wearing the trendiest clothes, playing the latest online games,
MTD Micro Molding on HOW
interacting and communicating with their friends, expressing their opinions and showing off. Their friends
MUCELL® MICROCELLULAR
are very important and part of their social DNA. They ignore traditional advertising and rely more on word-
FOAMING TECHNOLOGY FOR
of-mouth. Gen-Y’s are the “we want it now” generation and interested in immediate gratification. Gen-Y’s
INJECTION MOLDING MAKES
work hard until they get bored. Gen-Y’s are less brand loyal and always looking for a good value. These
THINGS STRONGER AND
qualities require a marketing approach that is both sensory and social.
LIGHTER
chandler defense lawyer on
FOLLOWING THE TRAIL OF
KNOCK-OFF DESIGNER
HANDBAG FROM CHINA TO THE
The Sensory Approach The Social Approach
U.S.
Emery Sprau on EILEEN FISHER:
HOW THE WOMEN'S FASHION
DESIGNER BUILT A $300
MILLION EMPIRE The sensory marketing approach involves the five The social marketing approach involves satisfying a
Emery Sprau on UNIQLO, senses: sight, hearing, smell, taste and touch. Gen-Y’s need for social interaction and being part of
JAPAN'S TOP FASHION social groups or communities.
RETAILER, GOES BACK TO
BASIC FUNCTIONAL CLOTHES
AND EXPANDS
INTERNATIONALLY
Marketers must be aware of the importance of the Gen-Y’s are social animals so marketers must
Tommy on DISCOVERY: 70
five senses in reaching Gen-Y’s. Gen-Y’s must be incorporate social elements into the design of a
LITTLE ANCIENT BOOKS WITH
sold on the great taste, texture, aroma, look and business whether it is a website, retail or eating
LEAD PAGES BOUND IN WIRE
quality of a food product (taste, smell, sight and establishment. Businesses are no longer solely for
COULD REVEAL THE REAL
touch). By the same token, Gen-Y’s would be shopping, eating or drinking, but places to meet friends,
TRUTH ABOUT CHRISTIANITY
attracted to a new electronic music gadget by its hangout, read a book, surf the Net, socialize and
Bible Girl on DISCOVERY: 70 overall design, sound quality and features (sight, exchange gossip. Facebook, MySpace and YouTube
LITTLE ANCIENT BOOKS WITH touch and hearing). The Internet with its are excellent examples of social networking sites that
LEAD PAGES BOUND IN WIRE compelling digital imagery, video and sound is a appeal to a Gen-Y’s need to network and interact with
COULD REVEAL THE REAL natural media channel for Gen-Y’s as it offers others. Starbucks, Abercrombie & Fitch, Borders,
TRUTH ABOUT CHRISTIANITY elements of all five senses. Gen-Y’s are among Steve Madden, American Eagle and Best Buy are
the heaviest users of the Internet for news, excellent examples of retail establishments that
what is water pollution on
information, entertainment and interacting with incorporate social design elements like cool and trendy
INFOGRAPHIC: THE WORLD'S
others. store interiors, the latest in fashion and electronic
DRINKING WATER CRISIS,
gadget’s, piped in music, visual displays, and in-store
POLLUTION AND WATER
food and beverage facilities.
SCARCITY REACHING EPIDEMIC
PROPORTIONS
what are the effects of global
warming on INFOGRAPHIC: A
GLOBAL WARMING MAP THAT In the case of a business establishment, whether Gen-Y’s are notorious multi-taskers who communicate
SHOWS HOW COUNTRIES ARE brick-and-mortar or digital, Gen-Y’s must be sold with their friends and relatives by telephone, text
BEING AFFECTED IN 2010 AND on the convenience, product selection, atmosphere messaging, instant messaging (IM) and mobile devices
WILL BE BY 2030 and total experience that the business like smartphones and iPhones. They interact by sharing
Charles on IMAGE OF WHAT establishment offers (sight, hearing, smell and video’s and music, rating products, services and
APPEARS TO BE JESUS CHRIST touch). The success of eBay, Starbucks, business establishments and posting comments over
APPEARS ON LEAD BOOK Facebook, Myspace and Borders are excellent the Blogosphere. Gen-Y’s have an insatiable desire to
COVER, VATICAN REFUTES examples of brands that have capitalized on the interact with others and are the driving force behind
AUTHENTICITY importance of the five senses in developing online social networks like YouTube, MySpace and
successful products and services. Facebook and Starbucks.
ARCHIVES
April 2011
GENERATION-X MARKETING APPROACH
March 2011
February 2011
January 2011
December 2010 Gen-X marketing requires elements of high perceived value, quality, purity, less hype, more facts and a
marketing message that is honest and straightforward. Gen-Xers are cynical about advertising. Less
November 2010
likely to be taken in by fads or product hype, and more likely to say, “show me”. Their tastes and
October 2010 preferences overlap with both Gen-Y’s and Boomers, making them an elusive target. They are less brand
loyal that boomers, and more likely to experiment with other brands, new drinks and foods. Gen-Xers are
September 2010
very technologically savvy. They tend to be first adopters of the latest electronic gadgets like iPods and
August 2010 iPhones. Gen-Xers support social causes like the environment and world hunger. They enjoy social
events, leisure activities and get-togethers with family and friends. They are known as the “family-first”
July 2010
generation because they value their family over their jobs. Success with Gen-Xers requires a marketing
More... approach with less hype, more facts and a social approach centered around quality of life, social
causes and importance of friends and family.
CATEGORIES
Advertising
Less Hype, More Facts Approach The Social Approach
Aeronautics and Space
Agriculture
Apparel and Accessories
Archaeology Gen-Xers are interested in less hype and more Gen-X have a social need that is grounded in placing a
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at-counts-f.html
3. Architecture and Construction facts and figures. They are interested in knowing premium on quality of life, leisure activities, social
the nutritional value of a food product: How many causes, strong parental and family values and
Art and Design calories, how much fat, cholesterol and nutrients a spending time with family and friends. They enjoy
Automobiles and Transportation product contains. Gen-Xers look for products with family get-togethers, activities and socializing with their
high perceived value and quality like the fuel- friends. Marketers must incorporate social elements
Beauty and Hair efficiency of Japanese cars and durability of whether they are an online, retail, eating or
Bicycles German-made automobiles. Gen-Xers take delight entertainment establishment. Businesses that have
in experiencing new foods, beverages, films and succeeded in doing this include McDonald’s (children’s
Bioscience products. It is best to deal with Gen-Xers in an playgrounds), Las Vegas Hotels & Casino’s (electronic
Blogs honest, respectful and straight forward manner. games, rides and attractions), Disneyland (family-
Gen-Xers seek products and services that are oriented rides and attractions), Gymboree (early
Books relevant, solve a problem or fill a real need in the childhood development programs), Target (family-
Childrens Social Development marketplace and offer a high value-added oriented merchandise and refreshments),
component: Superior quality, design, durability, DisneyOnlineForFamily.com (Disney entertainment for
Computers and Accessories features and convenience. the entire family) and BabyCenter.com (Young mothers
Consumer Packaged Goods with infants), Advertising that works with Gen-Xers
include ads depicting the crash safety of Volvo cars
Consumers and high performance of Michelin tires fit in perfectly
Crime with Gen-X’s strong parental values.
crowdfunding and
crowdsourcing Advertising & Promotions Strategy
Current Affairs
Although there is some overlap between Gen-X and Gen-Y, they differ in lifestyle and are
Demographics and Lifestyle
difficult to reach through traditional media channels, requiring: 1) commercial messages
Segmentation
and content that is relevant to their social and psychological needs, 2) selecting the
Digital and Video Content Sharing appropriate media channel for each group and 3) carefully targeting our advertising and
Earth and Environment promotions to insure we reach them most cost-effectively.
eCommerce REACHING GENERATION-Y
Economy
Education and Information MOST EFFECTIVE MARKETING CHANNELS
Energy and Green Technology
Entertainment
Espionage
l Internet Advertising - Gen-Y’s spend l Viral Marketing - Gen-Y’s go online and
Fashion and Style more time online than watching rely on word-of-mouth to obtain product
Film television, reading publications or and information, so it is vital that firms have
newspapers. 62% of Gen-Y’s watch TV a great website that is fully-optimized for
Finance programs episodes online. Gen-Y rank the search engines and listed in all the major
Firearms and Armaments highest in joining social networking search engines. Firms should have a
communities, viewing and uploading online promotional page on popular social
Food and Drink videos, downloading music, playing online networking sites like MySpace, Facebook
Foodservice games sending instant and text messages and Twitter and video sharing sites like
and reading online blogs. Popular Gen-Y YouTube.
Franchising
sites include:
Furniture l Street Marketing – Gen-Xers enjoy new
l Online Social Communities: MySpace , experiences and street marketing is a great
Games Facebook and Bebo way to create marketing buzz and reach
Geography l Video Sharing: YouTube, Veoh, Break, them face-to-face. Street marketing include
ManiaTV, Hulu and MetaCafe. neighborhood promotional stunts, free
Government and Regulatory product samplings, and rollouts in specific
l Online News and Information: Diggs,
Health and Medical Technorati and StumbleUpon. venues (street fairs, music festivals,
concerts, college campuses, bars and
History l And a large broad array of Blogs.
clubs, etc). This is also a great way to
Hospitality Marketers can achieve success reaching Gen-Y’s by pass out flyers, free offers and discount
targeting websites where they are likely to coupons.
Household Consumer Items
congregate and socialize.
Information Technology
Insurance
International
Internet l Contests and Sweepstakes – Gen-Y’s are
wild about winning a contest or receiving a
Inventions
gift, especially something meaningful like an
IPO's and Investments iPod, concert tickets, vacations, cell phones
and FREE sample servings. This is a great
Legal
way to increase store traffic, create brand
Luxury Goods awareness and get them to try a product.
l Flyers and Discount Coupons – These
Magazines, Newspaper and
should be incorporated into a firm’s street
Publications
marketing as a way to create excitement,
Management and Human interest and additional traffic. “ONE FREE
Resources PIZZA” and “BUY-ONE, GET ONE FREE”
Manufacturing and Prototypes coupons work the best.
Marketing
Mental Health and Psychology
Military and Wars
l Paid Search – Nearly 90% of Gen-Y’s use
Mining, Metals and Minerals online search engines like Google, Yahoo
Mobile and MSN Live Search to find online
information, news and entertainment sites.
Music l Radio Advertising – Radio ranks third for
Natural Catastrophe's and Gen-Y’s in hours per week behind the
Events Internet and TV as their preferred media.
Marketers should incorporate targeted radio
News and Information into its media mix picking stations with the
Nuclear Energy and Radiation largest reach and most effective CPM’s.
Oil
Outdoor Products
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at-counts-f.html
4. Parenting
l Mobile Advertising – Gen-Y’s are the biggest users of iPhones, Smartphones and portable
Pet Products and Health Care multimedia devices like iPods. Gen-Y’s prefer text message over email and this is a great way to
Pharmaceuticals reach them through one of their most preferred methods of communication.
Photography
Politics
Product Design and Development
LEAST EFFECTIVE MARKETING CHANNELS
Public Relations
Radio Frequency Identification
RFID
Real Estate
l Television, Direct Mail, Publications and Newspapers – Gen-Y’s cannot be reached
Relationships and Marriage effectively through traditional marketing channels. Direct mail, magazine ads, newspaper ads and
Religion television advertising does not work well with Gen-Y’s. They do not respond to he marketing
messages that appeals to their parents and grandparents. A Gen-Y’s favorite TV programs
Restaurants include sitcoms Friends and Seinfeld, reality TV shows Survivor and Project Runway,
Retailing Animated TV shows The Simpsons, Music contest shows like American Idol, music video
programs like MTV and TV comedy shows like The Daily Show With Stewart., just to name a
Robotics
few.
Science
Search Engines
Security Systems and Devices
Sex and Mature Content REACHING GENERATION-X
Social Causes
Social Networks MOST EFFECTIVE MARKETING CHANNELS
Software
Sports
Technology
l Internet Advertising - Gen-Xers are No 2
Telecommunications behind Gen-Y’s in spending time online
than watching television and reading l Street Marketing – Gen-Xers enjoy
Television
publications or newspapers. 57% of Gen- new experiences and street marketing is
Textiles Xers watch TV programs episodes online. Gen- a great way to create marketing buzz and
Xers are just behind Gen-Y’s in joining social reach them face-to-face. Street marketing
Toys
networking communities, viewing and uploading include neighborhood promotional stunts,
Transportation online videos, downloading music, playing free product samplings, and rollouts in
online games sending instant and text specific venues (street fairs, music
Travel
messages and reading online blogs. Gen-Xers festivals, concerts, college campuses,
UFO's and Extra-Terrestrial over forty represent the largest segment online etc). This is also a great way to pass out
Beings gambling. Popular Gen-X sites include: flyers and discount coupons.
Utilities
l Online Social Communities: MySpace ,
Venture Capital and Facebook, Twitter and Bebo
Entrepreneuring l Video Sharing: YouTube, Hulu, Veoh, Break,
Weather ManiaTV and MetaCafe.
l Online News and Information: Diggs,
Web/Tech
Technorati and StumbleUpon.
Weblogs l And a large broad array of Blogs.
World Affairs l Viral Marketing - Gen-Xers trust themselves
and the opinion of their friends and rely
World Records testimonials and word-of-mouth on product and
services. It is important that firms have a great
website that is fully-optimized and listed in all
Add me to your TypePad People the major search engines. Firms should have a
list promotional page on popular social networking
sites like MySpace, Facebook and Twitter, and
run online ads on popular video sharing sites
like YouTube and Hulu.
Subscribe to this blog's feed
Blog powered by TypePad
l Contests and Sweepstakes – Gen-Xers enjoy
Blog powered by TypePad winning a contest or receiving a gift, especially
Member since 09/2010 something meaningful like an iPod, iPhone,
concert tickets and FREE sample servings. This
is a great way to increase store traffic, create
brand awareness and get them to try a firm’s
products.
l Flyers and Discount Coupons – These
should be incorporated into a store’s grand
opening and street marketing as a way to
create excitement, interest and additional store
traffic. Women with children, in particular, are
attracted to discount coupons if there is high
perceived value in the offer. Offers that work
most often include “ONE FREE DESSERT”,
“BUY-ONE, GET ONE FREE” and “BUY-ONE-
ADULT serving and receive ONE-FREE child
serving.
l Direct Mail – Direct mail works best for older
Gen-X (Over 35) men and women, especially
with children. The offer must be compelling,
without a lot of hype, and sold on the basis of
high perceived value or in support of a social
cause. Some offers that work best include
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at-counts-f.html
5. “FREE AIR FARE” or “10% OF PROFITS GOES
TO SAVE-THE-WHALES”.
l Paid Search – Nearly 90% of Gen-Xers use
online search engines like Google, Yahoo and
MSN Live Search to find information, news
and entertainment sites. Paid search is an
effective way to reach Gen-Xers and drive
traffic to a firm’s website.
l Radio Advertising – Older Gen-Xers (Over
30) rank the highest in listening to the radio for
music, news and information. Marketers should
incorporate targeted radio into its media mix,
selecting stations with the largest reach and
most effective CPM’s.
l Mobile Advertising – Young Gen-Xers (25-
30), like their Gen-Y counterparts, are the
biggest users of iPhones, smartphones and
portable multimedia devices like iPods. Younger
Gen-Xers prefer text message over email and
this is a great way to reach them through one
of their preferred methods of communication.
Marketers should incorporate mobile advertising
into its media mix.
LEAST EFFECTIVE MARKETING CHANNELS
l Television, Radio, Direct Mail, Publications and Newspapers – Gen-Xers are stuck in the
middle between Gen-Y’s and Boomers so there are some overlaps with both generations, making
them an elusive target. Younger Gen-Xers cannot be reached effectively using traditional
marketing channels like direct mail, print ads, newspapers, radio and television advertising. Older
Gen-Xers (over 35) can be reached through direct mail, radio and television as their media tastes
are similar to Boomers in many respects. Gen-Xers are impervious to the marketing messages that
appeals to Boomers, who they treat with some resentment. Favorite TV shows of Gen-Xers
include prime-time shows like ER, CSI, Friends, reality TV shows like Survivor and The
Apprentice, animated shows likeThe Simpsons, music video shows like MTV and TV comedy
shows like The Daily Show. With Stewart., and late night talk shows like David Letterman
and Conan O’brien just to name a few.
I first developed my manifesto for marketing to Gen-X and Gen-Y in 2006/2007, at about
the time that social networking really began to take hold, and I realized then that in order
to successfully market to these two generatioins, a social approach was also needed.
So far those observations have proven to be correct. Although my manifesto is albeit a
bit dated, the basic concepts of neuromarketing work for all demographics.
If you are marketing to Millennials or Gen-Xers you might be interested in reading some of
the following blog articles:
l 9/24/10 - "IN ORDER TO ENGAGE WITH TODAY'S GENERATION Y YOU
MUST MAKE IT AN EVENT"
l 10/1/10 - "GENERATION-Y IS QUITE LITERALLY A "WIRED" GENERATION OF
TECH SAVVY AND SOCIAL NERDS"
l 12/18/10 - "MARKETER'S NEED TO CUT THE CLUTTER TO ACHIEVE
SUCCESS WITH TODAY'S COLLEGE STUDENTS"
Courtesy of Tommy Toy, PBT Consulting
Posted at 10:52 AM in Advertising, Consumers, Demographics and Lifestyle Segmentation, Marketing,
Mental Health and Psychology, Social Networks | Permalink
Technorati Tags: advertising, brainwashing, Gen-X, Gen-y, generation x, generation y, marketing,
neuromarketing, online social networks, social marketing, social media, social networks
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at-counts-f.html