Branding: Five Key Questions
By Tom Cramer
One of the most pervasive topics in today’s discussions about marketing is that of branding. That reality makes it even more intriguing that the elements of branding remain largely misunderstood by many. It is easy, of course, to recite a definition of what is meant by the term “branding.”
According to the American Marketing Association, “A brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.” While that seems straightforward, it introduces a series of questions. In this discussion, we will explore five of those issues to gain more actionable insights into the concept of branding your company and its products and services.
Why is branding important?
Many doctoral thesis has been written and many shelves filled full with books explaining why branding is important. In the simplest statement, however, your brand is what occupies the mind space of your customers and stakeholders when they think of your company. In a hyper-competitive marketplace, anyone can copy any product or service. However, the brand you develop is the most unique element of your enterprise, and it allows you to stand apart. No one confuses Coke with Pepsi or Nike with Adidas when it comes to brands, although the products of each company are actually quite similar.
There is a very key point to contemplate here. While the questions below talk about what you can do to create a brand, the effectiveness of those efforts is not measured by you or your company. The ultimate value of a brand is determined by that customer – how they perceive your success in developing the brand you have defined and desire.
What goes into branding?
The process of branding is developing a character for your products and services. It is the sum impact of a myriad of actions and investments of your firm over time. The elements of branding include:
- Values, promises, and stated purpose of your enterprise
- The identity developed with logos, colors, typographies, and all physical presentations of the company
- Packaging and product design, development, and execution
- Customer service strategies and effectiveness
- Physical experiences in-store and online
- Relationships, sponsorships, and partnerships
- Advertising, Marketing, and PR investments
- Pricing strategies and policies
- Stakeholder relationships (investors and team members)
Of course, this is only a partial listing. Yet, you get the idea that everything that your customers see, feel, or experience related to your company forms the brand they do or do not relate to.
Who does branding impact?
It is worth noting that while most branding discussions focus on customers, it is a dimension that also impacts employees, shareholders, vendors, and a range of other third parties. The idea of “brand connection” makes the impersonal concept of business for profit more of an actualized personal experience. Increasingly, people want to feel good about the brands they purchase or with which they are associated.
How do you value your brand?
It is standard today to speak of brand equity. While a relatively new term, the value of a brand is often a major point of valuation in acquisitions and mergers, and even in other forms of financing and stock valuations. Take, for example, the name Polaroid. For several generations, that name meant instant photography. Today, the licenses for use of the name Polaroid generate millions of dollars a year in revenue although the original company hasn’t produced cameras for decades.
How do I improve my branding?
As with every aspect of your business, a periodic review and critical analysis is a necessary discipline.
Take time to evaluate the effectiveness of your branding strategy and start with these questions:
- Do you have a compelling story and do you tell it well?
- Who is your primary customer and what are you saying to them every day?
- What are the core values you promote and expect from your employees? Does your brand communicate these values and promises?
- What do your lead customers “feel” about your firm? If you don’t know, take the time to find out.
- How does my branding stack up against my main competitors?
- How does my branding stand up against the brands you most admire? Where do they fall short?
Your answers to these and related questions will provide you with actionable insights that you can utilize to maximize the value of your brand.