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What is the Golden Circle?

What is the Golden Circle?

The Golden Circle is a concept presented as a circle, like its name suggests, with layers similar to onions and ogres. The three layers represent the questions: why, how, and what. The theory suggests that by answering these three questions, a company can understand the purpose of its business.

The Golden Circle is mentioned in the book Start with Why by Simon Sinek. In the book, Sinek discusses how crucial it is for brands to know why they were created and how this understanding helps them grow.

The 3 Layers of the Golden Circle

Each layer represents the questions: why, how, and what. Although they seem simple, they are a great exercise to understand a company’s purpose. In Start with Why, Sinek advises companies or their leaders to use the Golden Circle starting by addressing the why.

The Golden Circle and its sections Why, How, and What help define clear focus and processes for your business and  create customer loyalty.

Golden Circle: Why?

In the first layer of the Golden Circle, Simon Sinek suggests that this is where you need to write down the purpose of your business. We must identify the reason for the existence of this business or venture, what drives and motivates all actions. This is the company’s purpose.

If the company truly identifies its why, everything moves naturally and flows. For this reason, it is the starting point for businesses—if you know why you are doing it, it gives you a direction for your entire business or venture.

Golden Circle: How?

In the middle layer of the Golden Circle, we determine and establish the strategies we will apply to achieve results aligned with the company’s purpose. This is where the company’s action or work plan is located and should always align with the company’s values.

Golden Circle: What?

In the last layer of the Golden Circle, Simon Sinek points out that this is where we must specify what the company sells or does. This layer of the Golden Circle is the easiest to understand because it involves the product or service the company sells.

Why Have the Golden Circle?

Having the Golden Circle is essential for an organization, especially if it is not clear about the reason for its existence. Having this information and understanding it allows you to conduct various marketing and communication campaigns, thus achieving better results.

By leveraging the Golden Circle, we can achieve various objectives and facilitate decision-making and good outcomes. Some of the impacts on your business include:

Inspiring Communication

Starting with the why can make all your communication exciting, impactful, and inspiring, increasing loyalty through a sense of belonging.

Example: Apple doesn’t just sell computers; it promotes challenging the status quo and innovation, resonating with a certain profile of customers.

Brand Strategy

Having a why helps the brand to be strong and coherent, achieving omnichannel presence as previously shared, which allows you to have a brand narrative that communicates clearly and maintains good communication.

Example: Patagonia, the clothing brand, achieves good communication focused on its purpose of sustainability and environmental protection, reflected in all its corporate actions, marketing, and products.

Differentiate from the Market

When you compete only by product (the “What”), you will likely compete on price. However, if you have a “Why” and “How,” you begin to compete on different variables.

Example: Southwest Airlines is distinguished not only by its low-cost flights (the “What”) but also by its commitment to friendly service and the democratization of air travel (the “How” and “Why”).

Customer Loyalty

Customers are more likely to become loyal and advocates for the brand if they can identify with the purpose, the Why of the company. This simplifies customer satisfaction.

Example: Tesla customers feel part of a larger mission towards sustainability and innovation in mobility.

Do you already know your Why, do you know why your company does what it does? If not, we recommend you start today and begin applying it.

Welcome to the new norm.

¿Qué es el golden circle?

¿Qué es el golden circle?

El golden circle es un círculo, como lo dice su nombre, con capas como las cebollas y los ogros. Las tres capas representan las preguntas ¿por qué?, ¿cómo? y ¿para qué?. La teoría dice que resolviendo estas tres preguntas, una empresa puede entender el propósito de su negocio.

El Golden Circle es mencionado en el libro Start with Why (empieza con el porque), un libro escrito por Simon Sinek, en el libro Sinek habla de lo relevante que es para las marcas conocer el porqué comenzaron a crearse y cómo esto les permite crecer. 

Los 3 círculos del golden circle 

Cada capa representa las preguntas ¿por qué?, ¿cómo? y ¿qué? Y aunque parecen preguntas sencillas, es un gran ejercicio para entender el propósito de la empresa. En el libro Start with Why (empieza con el porqué) Sinek recomienda que las empresas o líderes de las mismas utilicen el golden circle empezando por resolver el porqué. 

Golden circle ¿Por qué?

En la primera capa del círculo dorado, Simon Sinek indica que aquí es necesario escribir el propósito de tu negocio. Debemos identificar el motivo de la existencia de este negocio o este emprendimiento, lo que empuja y motiva todas las acciones. Este es el propósito de la empresa.

Si la empresa realmente identifica el porqué todo se mueve naturalmente y fluye, por este motivo es el punto de partida de los negocios, si sabes por qué lo haces te da un norte para todo tu negocio o emprendimiento.

Golden circle ¿Cómo?

En la capa intermedia del círculo dorado es donde debemos de determinar y bajar las estrategias que vamos a aplicar para lograr los resultados y que estén alineados con el propósito de la empresa, ese es el por qué. Aquí es donde está el plan de trabajo o acción de la empresa, debe de estar siempre alineado a los valores de la empresa 

Golden circle ¿Qué?

En la última capa de círculo dorado Simon Sinek nos comenta que en este punto debemos poner lo que vende la empresa o lo que hace, esta capa del círculo dorado es la más fácil de entender de todas ya que es el producto o servicio que vende la empresa 

Por qué tener el circulo dorado 

Contar con el círculo dorado para una organización es esencial, especialmente si no tiene claro el motivo de su existencia. Contar con esta información y entenderla te va a permitir hacer diversas campañas de mercadotecnia y comunicación teniendo así mejores resultados  

Cuando aprovechamos el círculo dorado podemos lograr varios objetivos y facilitarnos la toma de decisiones y buenos resultados alguno de los puntos que impactan en tu negocio son: 

Comunicación inspiradora 

Si comienzas con el Why (por qué) podrás lograr que toda tu comunicación sea emocionante, impactante e inspirador, logrando mayor lealtad a través de un sentimiento de pertenencia

Ejemplo : Apple no vende computadores, promueve desafiar el status quo y la innovación, esto resuena con cierto perfil de clientes

Estrategia de marca 

Contar con un Why (por qué) ayuda a la marca a ser fuerte y coherente, lograr la omnicanalidad como ya te hemos compartido con anterioridad, lo que te dejará tener una narrativa de marca que comunique claramente y logres tener una buena comunicación 

Ejemplo: Patagonia la marca de ropa logra tener una buena comunicación la cual se enfoca en su propósito de sostenibilidad y la protección del medio ambiente y esto se refleja en todas sus comunicaciones en todas sus acciones corporativas, mercadotecnia y sus productos

Diferenciate del mercado 

Cuando compites solamente por producto (el “What”), muy seguramente vas a pelear por precio, pero si cuentas con un “Why” y “How”  comienzan a competir con otras variables

Ejemplo: la aerolínea Southwest Airlines se distingue no solo por sus vuelos baratos (el “What”), sino por su compromiso con el servicio amigable y la democratización de los viajes aéreos (el “How” y “Why”).

Lealtad de clientes

Es más posible que los clientes se vuelvan leales y defensores de la marca si logran identificarse con el propósito, el Why de la empresa, esto vuelve más simple la satisfacción del cliente.

Ejemplo: Clientes de Tesla se sienten parte de una misión más grande hacia la sostenibilidad y la innovación en la movilidad.

Tu ya conoces tu Why, sabes por que tu empresa hace lo que hace, si no es así te recomendamos empezar hoy mismo y comenzar a aplicarlo 

Welcome to the new norm

Marketing in Politics

Marketing in Politics

This year, elections will take place in several countries around the world, and these elections will have a significant impact on the direction of those countries in the coming years. This raises the question of what will happen with the elections and, specifically, what happens with their marketing. We will focus on the marketing of Mexican politicians because that is what we know best.

To understand political marketing, let’s first clarify that in the political case, it’s called advertising since advertising focuses on ideals and marketing on business. Having said this, we would also like to clarify some important points about political marketing.

Some characteristics of political marketing:

  • It has a defined and limited market, as it already works with adults.
  • It has a specific predefined period and an assigned budget.
  • It is adaptable and studies the impact of actions.
  • It combines traditional and digital marketing.
  • Having a solid personal brand is essential for achieving good results.

Political marketing sometimes takes place with practices that are not very ethical. If you are working in political advertising, it’s important to know the guidelines set by the authorities so you don’t get into trouble, in addition to considering the ethical and moral implications of these practices.

Unethical practices in political marketing:

Fake news

Social media and search engines are full of fake news, and this is not always accidental; some politicians promote the creation of campaigns with fake news. It’s important to distinguish between fake news and biased news; fake news provides false information, and biased news only loads the information with real data where it suits. Although this strategy, if well done, can achieve great success, it is not ethical and can get you into trouble.

Bots for positioning

The use of bots to position important topics is not new and surely will not disappear; bots position topics or news you want to put in the dialogue quickly and consistently. This tool has been used for years with great results, but like the previous one, it is unethical and will get you into trouble.

Gifts or vote buying

This practice happens less than it used to, but it still happens. In these practices, political marketers give away or deliver food, gifts, or some kind of incentive to vote for the desired politician.

Political marketing makes use of management, research, and communication to profile the “ideal product” for the “consumer – voter”, taking advantage of both traditional and digital marketing. Political campaigns require innovation, a multidisciplinary team, and detailed planning of messages to ensure effectiveness and emotionally connect with the audience. In this context, social media plays a crucial role, not only for spreading political projects but also for facing the challenges of fake news.

With this in mind, we bring you some political marketing campaigns from 2024 in Mexico.

Political campaigns in Mexico:

Mariana Rodríguez – Fosfo fosfo

Mariana is betting on becoming the mayor of Monterrey, with this in mind, she does what she knows best: being a great public figure who perfectly understands how social media works and using something that would have sunk anyone, which was her fosfo fosfo video, is now part of her campaign just as it was for her husband’s campaign.

Maynez Maynez president

Maynez is one of the candidates who appears not to participate significantly in the presidential competition, but with this in mind and knowing that nobody knows him, they have made a great political campaign so that his name is remembered and heard everywhere, to such an extent that my students sing it in classes, even if they do not vote for him, they are positioning him in an extraordinary way.

Xóchitl Gálvez

Xóchitl Gálvez’s campaign is betting on her story, what she is, what she has been, and a lot of work with technology. In her campaign, she is being very upfront against the current president Andrés Manuel López Obrador.

Claudia Sheinbaum

Candidate Claudia Sheinbaum is focused on leveraging the current presidency and pushing what Morena has done in this six-year term and how she represents the continuity of the current presidency with clarity and presidential support.

These are the beginnings of political campaigns, and from this, we get to see how they create fun campaigns and others not so much, but in the end, it’s political advertising, which works extraordinarily today thanks to social media.

What do you think, which are the best campaigns of these elections?

WELCOME TO THE NEW NORM