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.
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.
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.
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.
When we talk about marketing, we always have the idea of generating campaigns or strategies so disruptive that they change the course of marketing and how it is perceived. However, not all campaigns achieve this, and not all campaigns withstand the test of time. That’s why we bring you 5 marketing campaigns that may not last forever but definitely change the way we see a marketing campaign.
Surreal, recommended by celebrities
Surreal is a high-protein cereal brand focused on functional foods, a company from England that has managed to make disruptive and different campaigns like their fake celebrities campaign.
In their fake celebrities campaign, they found people who share names with famous celebrities and had them try the cereal. After tasting it, they gave some comments or opinions that were used for the campaign, always clarifying that it was not the celebrity you thought it was.
This campaign is extraordinary because they took an element already known as the use of celebrities and with this in mind, they sought out celebrities with the same name to create a campaign using their names but not their images, managing to give a twist to the well-known campaigns of using celebrities without spending what it would cost to hire a real celebrity.
Vicio Burgers with Neighbors
when opening a new branch that involved distributing flyers locally, but as it is known, flyers quickly become trash.
With the task of executing an effective marketing campaign, Vicio created flyers that mimic the typical neighborly complaint found in condos or buildings, and with that, they promoted their new branch.
This changes the way we view advertising because instead of invading space, it becomes part of it and integrates, achieving a more effective campaign.
Although not the first to do so, Barbie, the doll that adapts to any season or job it faces, decided to launch its movie in 2023, which, like its dolls, was a success.
The movie is an excellent marketing tool because it is not only an eternal product placement but also managed to increase doll sales by 3%, representing the sale of 1,538 million dolls and a 16% increase in profits.
The movie not only manages to place the product well but also repositions it as a doll concerned with current issues, making it a benchmark in cinema for product placement, something Lego had previously achieved with its movie.
Burger King Real Size
How many times have you seen a burger on a billboard that looks giant, making you crave something that big? Burger King has bet on honesty with this advertisement by creating billboards that show the real size of the burger, and you can compare it with your hands.
This advertisement not only draws attention by achieving a typographic design that catches the eye but also invites users to interact with a billboard that normally does not interact. It is disruptive from the traditional advertisement, thus changing the perspective of burgers and their marketing.
Distance Steal Them If You Can
The brand Distance decided to run a campaign where you can steal sneakers from the store and keep them for free only if you manage to escape from the security guard, who is Mickael Zeze, a 100m runner in just 9.99 seconds.
This campaign attracted more than 100 visitors, and only one person managed to escape. This campaign is completely disruptive because it not only invites participation in an activity but also encourages people to do sports and face a different challenge with its campaign.
These campaigns are completely disruptive, either by the way they were done or by the quality with which they were executed. We have a lot to learn from them, both in terms of campaign style and openness to doing things differently. Sometimes it’s not a lack of ideas but a lack of courage to start doing them.
And you, are you willing to do something different?
Creating a logo and having a company does not mean you have created a brand. Building a brand is more complex compared to other elements that are needed.
To understand how to create a brand or branding, we first need to understand the difference between a logo and a brand.
What is a logo?
A logo is the symbol or identifier that represents a company, which can be presented in different forms, such as a logotype, isotipo, imagotipo, or isologo.
What is a brand?
A brand is the set of actions and strategies that penetrate a market to make users recognize and fall in love with the brand.
What to do to create a brand?
Creating a brand requires a lot of work and vision. Coherent, clear brands that know where they are going help users to identify and connect with them, and for this, we must work on the background. Here are the points to evaluate:
Define a value proposition
Having a well-defined value proposition will serve as a guide, as it will allow you to focus efforts to clearly reflect what the brand represents and why it exists.
Create your mission
Having a well-written mission allows you to define the brand’s reason for existence and what we want to achieve with the company. A company’s mission sets the path for the short and medium term.
Define your vision
The vision will allow you to achieve the impact you want to reach in the long term.
Brand persona
Create a brand persona in which you manage to define how the brand talks, how it looks, who it is, what it likes, what it fears, and what it wants to be. Defining the brand as a person gives you clear tools to treat it as such and thus achieve a very good connection with the end buyer.
Create a graphic system and communication system
Having a clear structure of graphic elements and a clear structure of tone of voice and communication is a super useful element to achieve a very good brand.
Having all these elements is not enough; you must also start creating clear strategies for communication, advertising, and even experience, to achieve all this and make it work properly you should use the guides or tools we talked about a moment ago.
With a good communication and marketing strategy that is coherent and clear, touching elements that excite or generate empathy with your ideal buyer or user, you will start to create an impact and over time if you continue with this, you will manage to create a brand.
Are you already working to create a brand? Or do you still have questions about how to achieve it?
The Hot Sale is excellent because it benefits thousands of businesses, and this event occurs every year to encourage and boost online product sales. Having good strategies for the Hot Sale is crucial to increase your sales; the Hot Sale is designed for Mexico and Latin America.
What is the Hot Sale?
The Hot Sale is an event that promotes online product sales and is designed to boost e-commerce and benefit thousands of brands and businesses in Mexico and Latin America.
This event generates an economic impact of 29,949 million pesos, according to 2023 data. You can read the full AMVO report here.
This event is driven by the Mexican Association of Online Sellers (AMVO), which has over 600 registered brands.
Should I participate in the Hot Sale?
If you have online sales, it’s important to know that participating in the Hot Sale is necessary because it will bring you many benefits:
It allows you to increase your average ticket size.
It increases your potential customers.
It improves your community.
You achieve better visibility.
Here are some tips to start participating in the Hot Sale and make your participation effective:
Analyze your competitors
Identify all your competitors and what they have done for the Hot Sale, and see if there’s anything you can learn about what not to do or how to propose something better.
Pre-plan your Hot Sale
Plan your marketing strategy for your Hot Sale, thinking from the discounts you will offer to the marketing strategy itself.
Publish before the Hot Sale
Announce that you will be participating in the Hot Sale in advance and what they will be able to purchase so that your users are prepared to participate.
The Hot Sale is a great opportunity to push your brand to a new level and attract new customers who, if you do it right, could become regular customers. Are you already participating in the Hot Sale?
When working in marketing, one of the most important points is to achieve very good results within each strategy, and one of the best ways to obtain excellent results and know what is good for the company is to measure the ROI.
What is ROI?
ROI, which stands for Return on Investment, is a foolproof metric or tool to validate whether what you did has given you a return on investment. It is important not to confuse it with ROAS.
What is ROAS?
ROAS stands for Return on Advertising Spend. It is a metric that allows you to measure the return on investment of your advertising campaigns.
Difference between ROI and ROAS
Although they may seem similar, they have small differences. For example, ROI is not only a metric for marketing or advertising but applies to any area, unlike ROAS, which applies only to ads. Another big difference is that ROI already considers the payment of taxes unlike ROAS, which measures gross money.
Best Platforms for Your ROI or ROAS
First of all, if you’re reading this, it’s because you’re looking for shortcuts, and unfortunately, there aren’t any, but we’ll guide you on how to choose the best platform to get better ROI in your advertising campaigns.
First of all, we need to understand how our business works and know who we sell to. For this, you can read our blog about buyer persona or target market, or simply identify if your business is B2B (Business to Business) or B2C (Business to Consumer).
Knowing the above, it’s time to identify what each platform is useful for. Be aware that each platform has its focus and achieves different things, but we will land them in the B2B and B2C models.
Below you will find a list of networks and platforms you should use depending on your business:
Web = B2B, B2C LinkedIn = B2B Instagram = B2C Facebook = B2C Facebook Merchant = B2C Instagram = B2C TikTok = B2C TikTok Shop = B2C X (Twitter) = B2C Pinterest = B2C Mail = B2B, B2C Google = B2B, B2C Google Merchant = B2C
Once you identify which channel works for you, select the ones you can start using. It is very important that you consider the following factors: the budget you have for your campaign, the trained personnel to manage that account, and the tools your sales team has.
If you have defined the channel you are going to use, it is time to start creating your campaign and measuring. It is important to consider testing no longer than 3 months on each platform. The important thing here is that you measure each action you take and start seeing your ROI and ROAS at each step. Once you manage to measure it, it’s time to assess where or where you should invest all your budget.
Now that you know which platform works for you, your business, and your target market, it’s time to direct your budget to this platform. Always thinking that when you have more possibilities, you expand the channel to obtain more conversions in other channels, because it is necessary to be everywhere, all the time.
This strategy is a summarized form of a book called Bullseye Marketing written by Louis Gudeman. It’s an excellent book that I recommend for achieving effective marketing strategies that will allow you to achieve effective results.
It’s time to achieve your goals and obtain excellent ROI and ROAS. Start today and begin seeing results.
