Build a brand by delivering on the promise it makes
Written by Shirley Lichti, for The Record, May 18, 2005
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The concept of branding may well be one of the most misunderstood areas of marketing. Ask 10 people, "What is a brand?" Chances are you will get 10 different answers.
So let's get clear about what a brand is not. A brand is not a corporate name, product, logo, website, brochure or positioning - although all of these elements can help to build your brand and communicate what it stands for.
Some of the confusion may stem from textbook definitions of a brand as "a name, symbol, design or some combination which identifies a product as having a sustainable differential advantage."
The definition works, but limits the concept of branding to products. Even more confusing is that with the right marketing effort, a product can become a brand.
Many people view packaged goods company, Procter & Gamble as a good brand builder. It has developed popular brands such as Tide laundry detergent, Pampers diapers, Pringles potato chips and Secret deodorant.
Most consumers would easily recognize these brands, yet not know the name of the company behind them. This is because Procter & Gamble has focused on product brands rather than promoting the corporation as a brand.
Note that our textbook definition doesn't encompass the notion of branding at a corporate level. But firms such as IBM, Sony, and Coca-Cola emphasize the corporate brand first and build products under it. Imagine the corporate brand as an umbrella with the spokes being product brands.
Thus, a broader definition of branding is required. I like to think of a brand as a perception resulting from experiences with, and information about, a company or a line of products or services - in other words, all of the experiences, encounters and perceptions a consumer has with a brand.
Perhaps Michael Eisner, the former Disney CEO, said it best with: "A brand is a living entity and it is enriched or undermined overtime, the product of a thousand small gestures."
A Canadian Marketing Association study last year noted the definition of brand has evolved to become a customer experience concept. It found that 73 per cent of Canadian companies define brand as the "holistic customer experience of product, service and organization."
A brand represents a promise to customers. For example, Crest promises cavity prevention, Volvo promises safety, and Campbell's Soup promises high quality. To create a successful brand, a company has to deliver on its promise. Campbell's has become one of the most trusted brands because it consistently delivers on its promise.
In a national survey of "best managed brands" conducted by The Strategic Counsel in 2004, the top three factors found to contribute to a successful brand were the ability to consistently deliver on the customer promise, customer service quality, and clarity of the customer promise.
The message to companies here is that you've got to walk the talk. As Bill Moir, Tim Hortons' executive vice-president of marketing, was quoted as saying: "People don't experience our brand through our radio and TV spots. They experience it every time they order a coffee, knowing they are going to get it fast, fresh and at a good price."
Branding has become much more important than in the past. Consumer awareness of brands is higher than ever due to increased media attention. Today consumers are much more aware of brands, even those with which they have no experience.
People often use the expression brand equity to talk about the value of a brand. But their real value is reflected in the fact that companies with strong brands rarely have to compete on price. When was the last time you saw price promotions for Tim Hortons?
The stronger your brand, the more value you can drive to the bottom line, instead of having to discount to build sales.
Building a successful brand starts with an understanding of what your brand promises. This message must then be clearly communicated. Everyone in your organization must be committed and empowered to consistently deliver that promise.
Branding helps companies to differentiate products from those of competitors. But strong brands go much further.
Strong brands exist in people's hearts and minds. Nike doesn't sell shoes. It sells the authentic athletic performance. Starbucks has established an emotional connection with customers that goes far beyond a good cup of coffee.
Successful brands sell an experience.
So let's get clear about what a brand is not. A brand is not a corporate name, product, logo, website, brochure or positioning - although all of these elements can help to build your brand and communicate what it stands for.
Some of the confusion may stem from textbook definitions of a brand as "a name, symbol, design or some combination which identifies a product as having a sustainable differential advantage."
The definition works, but limits the concept of branding to products. Even more confusing is that with the right marketing effort, a product can become a brand.
Many people view packaged goods company, Procter & Gamble as a good brand builder. It has developed popular brands such as Tide laundry detergent, Pampers diapers, Pringles potato chips and Secret deodorant.
Most consumers would easily recognize these brands, yet not know the name of the company behind them. This is because Procter & Gamble has focused on product brands rather than promoting the corporation as a brand.
Note that our textbook definition doesn't encompass the notion of branding at a corporate level. But firms such as IBM, Sony, and Coca-Cola emphasize the corporate brand first and build products under it. Imagine the corporate brand as an umbrella with the spokes being product brands.
Thus, a broader definition of branding is required. I like to think of a brand as a perception resulting from experiences with, and information about, a company or a line of products or services - in other words, all of the experiences, encounters and perceptions a consumer has with a brand.
Perhaps Michael Eisner, the former Disney CEO, said it best with: "A brand is a living entity and it is enriched or undermined overtime, the product of a thousand small gestures."
A Canadian Marketing Association study last year noted the definition of brand has evolved to become a customer experience concept. It found that 73 per cent of Canadian companies define brand as the "holistic customer experience of product, service and organization."
A brand represents a promise to customers. For example, Crest promises cavity prevention, Volvo promises safety, and Campbell's Soup promises high quality. To create a successful brand, a company has to deliver on its promise. Campbell's has become one of the most trusted brands because it consistently delivers on its promise.
In a national survey of "best managed brands" conducted by The Strategic Counsel in 2004, the top three factors found to contribute to a successful brand were the ability to consistently deliver on the customer promise, customer service quality, and clarity of the customer promise.
The message to companies here is that you've got to walk the talk. As Bill Moir, Tim Hortons' executive vice-president of marketing, was quoted as saying: "People don't experience our brand through our radio and TV spots. They experience it every time they order a coffee, knowing they are going to get it fast, fresh and at a good price."
Branding has become much more important than in the past. Consumer awareness of brands is higher than ever due to increased media attention. Today consumers are much more aware of brands, even those with which they have no experience.
People often use the expression brand equity to talk about the value of a brand. But their real value is reflected in the fact that companies with strong brands rarely have to compete on price. When was the last time you saw price promotions for Tim Hortons?
The stronger your brand, the more value you can drive to the bottom line, instead of having to discount to build sales.
Building a successful brand starts with an understanding of what your brand promises. This message must then be clearly communicated. Everyone in your organization must be committed and empowered to consistently deliver that promise.
Branding helps companies to differentiate products from those of competitors. But strong brands go much further.
Strong brands exist in people's hearts and minds. Nike doesn't sell shoes. It sells the authentic athletic performance. Starbucks has established an emotional connection with customers that goes far beyond a good cup of coffee.
Successful brands sell an experience.
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