A company's message must be grounded in reality and its reputation is built over years.
In the late 1990s, investors began to recognize reputation was in part responsible for the sky-high market values of the likes of Cisco Systems and Amazon.com Inc., companies with relatively few brick-and-mortar assets such as factories, machines and real estate. Reputation is a big reason Johnson & Johnson trades at a much higher price-earnings ratio than Pfizer, Procter & Gamble than Unilever and Exxon Mobil than Royal Dutch Shell.
During the late 1970s, Thetford Corporation, the company that produces the "Porta Potti" brand of fresh water flushing portable toilets for camping, RVs and boats, noticed that many people in rural locations within the U.S. were buying their product by mail order through the Sears Roebuck Company.
Since Thetford corporate management knew why people purchased their sanitary products for recreational use away from home, they were interested in learning why some buyers were using the product in the home in rural locations.
To determine if there was an in-home market grounded in reality, the company decided to employ a number of school teachers in rural counties of Michigan to go door-to-door selling the Porta Potti during the summer months.
Although a number of Porta Potti's were sold during this market research, the sales results did not prove to be a large new market for the product. However, it did help to explain the reason why so many Porta Potti's were sold through the Sears catalog: Purchasing the portable toilets remotely by phone or mail order allowed the purchaser to bypass having to talk face-to-face about the product with a sales person in the store. In other words, it allowed the purchaser to bypass his or her "toilet fright" when discussing the intended use of the product with a salesperson.
Having a deep understanding why consumers buy your products and/or services keeps you and your employees grounded in reality and creates a leadership brand for your organization. Asking the question, "When you think of my company, what comes to mind?" can help you gage the reputation and market presence that you have developed over time.