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What Is
Branding?
Branding is the sum
total of a company’s identity—from its name and
logo to every piece of communication, internal or
external—to every encounter every customer or
potential customer has with it.
Branding is the foundation of marketing and is
inseparable from business strategy. It is
therefore more than putting a label on a fancy
product. Nowadays, a corporation, law firm,
country, university, museum, hospital, celebrity,
and even you can be considered as a brand.
As
such, a brand is a combination of
attributes, communicated through a name, or a
symbol, that influences a thought-process in the
mind of an audience and creates value.
As
branding is deeply anchored in psycho-sociology,
it takes into account both tangible and intangible
attributes, e.g., functional and emotional
benefits. Therefore, those attributes compose the
beliefs that the brand's audience recalls when
they think about the brand in its context.
The
value of a brand resides, for the audience,
in the promise that the product or service will
deliver. Clearly, a brand can recall memories of a
bad experience. The value for the audience then
would be to avoid purchasing that brand.
From
the perspective of the brand's owner, the value of
the brand often lies in the security of higher
future earnings, but may also be assessed in terms
of votes for a politician, career for an
executive, foreign direct investments (FDI) for a
country, etc.
In
conclusion, branding is the blend of art
and science that manages associations between a
brand and memories in the mind of the brand's
audience. It involves focusing resources on
selected tangible and intangible attributes to
differentiate the brand in an attractive,
meaningful and compelling way for the targeted
audience.
Brand management
then becomes the organizational framework that
systematically manages those customer-centric
processes. It aims at gathering intelligence,
allocating resources, and consistently delivering
the brand promise over time at each contact-point
with the customer.
Coca-Cola, for example, has become a cliché of
brand management. Before branding or even
management emerged as disciplines, the
Atlanta-based company was already spending over
US$ 11,000 on a mass advertising campaign as early
as 1892. Its trademark was officially filed in the
US that year and has consistently been displayed
with the same script to this day. Over time, it
also associated its brand with a bright red color,
the hour-glass shaped bottle (1915) and the ribbon
logo (1970). Together these aspects contribute to
differentiating Coke from rivals such as
Pepsi-Cola, which has applied a competitive
pressure since 1898.
Is Branding Different from Naming?
Naming is a subset of branding. Any combination of
sounds, or phonemes, can compose a name, and
perhaps be unique enough as to identify a product
or service without ambiguity. But that is not
enough to make it a brand.
For
internal purposes, engineers or designers often
use code names to identify their projects, such as
PN96. To become a brand, however, a name has to be
able to fit in its audience's memory in a way that
will make the brand's attributes recalled. Thus,
"PN96" turns out to be the best selling vehicle in
the US, the F150 truck, "Built Ford Tough."
Nevertheless, naming is a critical step of
branding, and it would be a missed opportunity to
leave it to Tarzan or the CEO's spouse. Deprived
of access to the Brandchannel, Tarzan sought
common nouns from his limited vocabulary to name
his adopted son and quickly ended up with "Boy."
Little he knew! If new parents cringe at the idea
of getting the new name past their mothers-in-law,
brand managers have to deal with a long battery of
naming tests (and eventually the CEO's
mother-in-law). On the bright side, a well-chosen
name can be so powerful as to become a one-word
commercial. It is especially critical for small
businesses, which often lack of the necessary
marketing budgets to promote their brand
effectively.
The
story of a small business of California
marvelously illustrates this situation. Until
1991, the airport of San Diego, California, was
served by Supershuttle, the franchise of a largely
undifferentiated shuttle operator. Its brand
experience was no more than four wheels under a
van, lacking any emotional appeal. As a result,
even former customers arriving at the airport were
about as likely to call a competitor, such as
Sureride. That was good for the competition, but
not for Supershuttle.
Loaded with debt, the operator filed for Chapter
11 bankruptcy protection, restructured its balance
sheet, left the franchise network and changed its
name. Since its phone number was 1-800-9-Shuttle
and San Diegans live in a corner of paradise, the
name Cloud-9-Shuttle came to mind. (To be on
"cloud nine" means to be in paradise.)
At
first, the new name seemed crazy and
unbusinesslike, but it was clearly differentiated
and San Diegans came to love it. Bearing its new
identity, Cloud-9-Shuttle flew out of the rubble
to quickly grab a 75 percent share of the local
shuttle market.
Does Branding Apply to Us?
The
concept of branding applies to any individual,
organization, product, or service, as long as
there is a transaction between human beings.
Indeed, branding relies on fundamental principles
of psycho-sociology – essentially the way our
memory processes, stores, and recalls information.
Not to actively manage one’s brand name is
therefore the equivalent of putting one’s head in
the sand and wishing for the best.
Many
law firms, for example, assume that branding would
negatively impact their reputation. However,
branding should not be confused with television
commercials. Whereas relationships and quality
work are still fundamental to the success of a law
firm, brand management can help a law firm in many
ways, including (1) making clients more loyal to
the firm as a whole than to specific professionals
within the firm; (2) communicating a focused
message to attract new clients, who increasingly
shop around for razor-sharp legal expertise; (3)
retain talent and attract bright new graduates,
for whom the reputation of a firm is often an
important non-cash factor.
Along
the same lines, branding can usefully help David
defeat Goliath when an asymmetry of resources
makes the battle seemingly one-sided.
In
1981, the mighty IBM Corp launched the IBM
Personal Computer -- the smallest IBM computer to
date -- at the aggressive introductory price of
$1,565. The IBM PC became an immediate success and
an industry standard, epitomized as Time
magazine's 1982 "Man" of the Year.
Apple
Computer needed something radically novel to
counter the new IBM PC. Unfortunately, Apple's own
new products, the Apple III and Lisa, missed an
opportunity to make much of an impact and were
received with a cold shoulder. Working with Frog
Design, an industrial design firm, Apple decided
to wrap its innovative technology into an equally
innovative product design that would contrast with
the boxy IBM PC. This collaboration gave birth to
the original Macintosh, which is now part of the
permanent collection at the Museum of Modern Art (MoMA)
in New York.
There
are branding steps that can have a considerable
impact on revenues without the need for big
budgets, such as the brand positioning strategy,
the naming of the product, the packaging design,
the delivery process of a service, the consistency
of the brand experience at each contact-point with
the customer, to mention a few.
How Long Does It Take to Build a Brand?
It
takes as much time to build a brand as it takes a
person to build a reputation. The difficulty is
not as much to perfect a strategy as to be
focused, differentiated, and consistent
everywhere, every time. Will it take one, five,
ten or over twenty years? That essentially depends
on the memory and openness of the brand's
audience.
For
instance, it took about 15 years for Nike to build
one of the strongest global brands, thanks to (1)
a focused brand positioning, (2) consistent
360-degree delivery, and (3) its association with
All-Star basketball player Michael Jordan. BRS
(Blue Ribbon Sports) first used the Nike brand in
1971, and introduced the Air Jordan in 1985. By
then, all the pieces fit well together, from the
brand strategy to the product's air technology to
distribution in over 40 countries. Revenues soared
from about $1 billion (1985) to over $9 billion
(1997).
Nike
truly distinguished itself in its ability to
deliver a consistent message across 360 degrees.
Indeed, over a long period of time, Nike
consistently delivered its brand message at each
contact-point with its customers, from product, to
advertising, to distribution, to merchandising, to
website. For example, fans of Michael Jordan's
Chicago Bulls could enjoy a remarkable consistency
between Niketown and Nike's TV commercials, as the
gothic atmosphere depicted on the small screen
could also be experienced three-dimensionally by
the visitor at the Niketown store on North
Michigan Avenue in the Bulls’ hometown.
How Can Non-marketers Contribute to Branding?
Marketing and its sister branding are too
important to be left to marketers alone. In a
corporation, it is everybody's business to be
cost-conscious as well as customer-driven. In
fact, it is the purpose of brand management
to transform a company into a customer-centric
organization to the point where the traditional
walls that separate functions become permeable.
In a
customer-centric organization, management
can thus be defined as a discipline of action that
integrates holistically all the corporate
functions to deliver systematically value to
customers beyond their expectation.
Although the development of a brand strategy
typically involves a limited number of executives
and their aides, the successful implementation
of a strategy is everybody's responsibility.
Indeed, a major source of failure in the attempt
to build a great brand is the lack of consistency
among all the contact-points with the customer. In
such a case, the brand message makes a promise on
which the organization does not fully deliver. A
sure way to ensure that the customer will
consistently enjoy the brand experience is to
implement processes throughout the organization.
In
the demanding hotel industry, for instance, the
Ritz-Carlton has demonstrated that -- with
customer-driven targets, metrics, and processes --
the same high quality of service can be delivered
all over the world, day after day.
Although the word process may connote
something cumbersome, most processes can be (and
should be) simple to the point of becoming second
nature. As such, processes become like the syntax
that children learn to align words into meaningful
sentences. They allow entire organizations to
communicate with their customers more effectively
and convincingly. |