Of all the speakers at the 2009 Masters of Marketing in Phoenix, only one stayed up all night playing guitar with Alice Cooper. Richard McDonald, senior vice president of global marketing at Fender Musical Instruments Corp. Although he walked onto the stage unrehearsed, McDonald delivered one of conference’s more memorable and inspiring presentations.

McDonald began by noting that between 1946 and 1964 there was no better time to establish a music brand. With rock and roll storming the airwaves and music stages across the country, and electric instruments finding their way into that new sound, Fender established itself as a go-to brand for serious and amateur musicians alike. “By 1965, Fender was an American icon,” McDonald said. “It was on par with Marilyn Monroe, Elvis, and apple pie.”

That same year, Leo Fender, the company’s founder, sold the business to CBS for $13 million, but the brand suffered. For obvious reason: CBS didn’t know how to build a quality musical instrument. “It’s important to know who you are as a company. It’s equally as important to know who you’re not,” McDonald noted. “To be successful, you have to know who you are.”

Under CBS, Fender suffered from what McDonald called brand arrogance. “Fender had lost its way,” he explained. “The product stunk. And no one was listening to the consumer.” In 1985, McDonald’s mentor, William Schultz, sought the financial help of family and friends to purchase Fender. “Schultz put people who knew how to play guitar down on the production line,” McDonald noted. “He gave everyone the authority to stop production if they saw something that wasn’t up to snuff.” When Schultz bought the company, only three guitars a day were coming off the line. He set out to turn the brand around and make it a viable, quality name again.

In particular, the company started listening to customers. “It’s stupid not to hear from customers,” McDonald asserted. “And there’s no excuse for not listening to the ones who don’t like you, who don’t want to buy your product, who hate your brand.” Why? It gives a company an opportunity to figure out how win them over, McDonald noted.

That said, a company runs the risk of alienating its loyal customer base, McDonald warned, because they can tell when you’re being disingenuous. “Don’t sell them on something,” he said. “Open up to them. Help them run your company. Work for your customer, not your boss. That’s how you win a loyal following. Do something genuine and you’ll create positive buzz.”

To illustrate his point, McDonald pointed to a Fender promotion called “Show Us Your Strap.” Every guitar strap has a story, McDonald explained, and Fender wanted to hear customers’. For several days, the company received thousands of pictures of guitar players and their straps.

McDonald heralded the use of the Internet to follow how customers perceive brands. “Technology is all about connectivity,” he stated. “It’s important to know how you can differentiate yourself above the ambient noise.”

“Our philosophy is that when you hear our products, touch our products, experience our brand in an environment that drives your personal passions, you’ll want to be a Fender player,” McDonald added. “We want to fuel that passion”.

Today, Fender distributes 23 brands globally. “Our sole vision is to champion the spirit of rock and roll throughout the world,” McDonald said.

Stepping out from behind the podium, McDonald posed a question to the audience: Who knew someone passionate about guitar? From those who raised their hand, he presented a shiny, turquoise electric Fender guitar to a woman who said her 13-year-old neighbor plays nonstop. “Give it to your neighbor,” McDonald said. Moved by the gesture, the woman began to tear up. Just then, a rift from Stevie Ray Vaughan’s “Pride and Joy” could be heard over the sound system.

Within moments, half a dozen Twitter posts were describing McDonald’s act of generosity. Every tweet used the name Fender.