Chapter 1

What Is Branding Really About?

A Classic, Ubiquitous Misunderstanding of “Branding”

Branding is hot. You cannot read a newspaper, magazine, or blog these days without coming across some reference to “branding.” Branding has indeed become a universal benchmark for something noteworthy or successful. This recognition is certainly warranted. Research from McKinsey & Company supports the importance of good branding, finding that companies with strong brands achieve returns 1.9 times higher than their industry average.

Everyone seems to want to enhance their “brand,” do more “branding,” or simply “re-brand” these days. However, these terms are usually misused because managers don’t really understand the basic concept of “branding.” As a result, they miss the real opportunity to distinguish their product or corporate brand.

How many times have we heard statements by executives like “we must start a branding campaign,” or “our problem is one of branding,” or “branding is only good for consumer goods.” What they’re really talking about is a communications or marketing execution issue (e.g., building awareness, lead generation initiatives, changing the name, or reaching a wider audience). This is not branding per se. Instead, it is a misconception that distracts from the real opportunity to build their business or resolve a marketing problem.

In a 2010 blog “We’ve Branded Ourselves to Death,” Seth Godin, a reputable marketing blogger, prudently recognized the “glut of brand advertising … and customers no longer want to be spammed with information about the product or service; they want to feel the connection of it.” What he means is that most advertising and even selling initiatives communicate a diatribe of product “features” and do not offer a distinctive value proposition or a focused, compelling benefit. It’s called “clutter!”

So What Really Is “Branding”?

It certainly is trendy today to depict anything and everything as a brand. But how can one really apply the concept of branding in a way that practically helps managers when there are so many interpretations of this elusive concept or tool. Yes, it really is a tool, and a valuable one if fully understood and used strategically.

Trying to define a “brand” is similar to the challenge of explaining “charisma.” The dictionary defines charisma as “a personal magic of leadership arousing special popular loyalty or enthusiasm for a statesman or military commander.” Fine in theory, but I think it is extremely difficult to apply this concept except by use of an analogy. For example, Kennedy had charisma, while Nixon didn’t. Many feel the same way about Obama having it, while Romney lacked this quality.

The dictionary definition of a brand is even more elusive: “a mark (made by burning with a hot iron or with a stamp), or a class of goods identified as the product of a single firm or manufacturer.” Actually, the word brand comes from the old Norse word, “brandr,” meaning to burn, which was how early man stamped his ownership on livestock. Today, a brand also consists of some form of identification, a name and/or some kind of a logo/symbol. But it is what such a name or symbol means to people, which will determine the value and strength of a brand.

In general, marketing can be a challenging discipline because ultimately you are trying to understand and shape human behavior, an extremely complex and unpredictable subject. Learning the basics of branding can be easier if one focuses on the fundamentals, and is not distracted by subtle, subjective interpretations. In particular, marketers can be significantly more productive and innovative if they concentrate on the perceptions of their target customer.

There are many succinct definitions for a “brand”—a promise, an expectation of performance, a reputation, a mark of trust—but a compelling product or corporate brand description should start with a clear positioning, one that strategically addresses the target customers’ needs and distinguishes it from competition. Even a company’s vision and/or mission statement, and especially its values and brand image, should ideally emanate from the research and analysis that goes into a brand positioning.

Branding is not about one’s product offering or marketing effort. It is more about the customer, and how to develop a meaningful relationship with the customer—what is often called the “customer experience.” Peter Drucker, a famous business philosopher and author, once said “the purpose of business is not to make money; it is to create a customer and to satisfy that customer.”

In their annual report on the most influential brands in the United States, the brand specialist firm, Ipsos, clearly summarized the following important link between brands and people:

A brand breathes life into a positioning strategy so that customers can naturally trust it, feel comfortable with it, and ultimately be loyal to it. As Seth Godin puts it, branding is not marketing—instead “it should inspire, lead, and tap into the brand’s passions so you’ll tap into your customers’ passion and build a committed following.” Zig Ziglar, a famous marketing philosopher, added “people don’t buy for logical reasons. They buy for emotional reasons.”

These customer-centric principles are essential to understand what branding is really all about. It is a discipline that has many dimensions to it, although there is always a risk that students of branding will try to memorize specific brand definitions instead of understanding these principles and how to develop or use brands as a tool. In any case, here are some succinct explanations of the lexicon of branding found in various textbooks; these are best absorbed within the context of a strategic business development initiative:

In this book, the term “branding” will be discussed in a way that embraces all these various definitions. You will undoubtedly find these or similar definitions used by other business consultants and academicians. Trying to memorize these particular definitions can be a distraction from the real intent of this book, that is, for you to understand the basics of branding so that you can apply these principles to your own business or personal needs. It is far more important to learn how to develop strong brands.

Branding and Marketing

It would be remiss if one does not try to understand “branding” in the context of “marketing,” which begs the question—how to accurately and meaningfully define “marketing.” While most business people have a good idea of what marketing is all about, many in the B2B world, especially in highly technical industries, tend to be more sales and product driven. Their sense of branding is not nearly as sophisticated or progressive as in the B2C world, although they are becoming more sensitive to the need for stronger corporate and product brands.

Most marketing definitions tend to be more theoretical, and not practical. And they usually don’t acknowledge the integral role of branding in their definitions. Some examples of noteworthy definitions of “marketing” demonstrate this (underlining is mine):

None of these definitions are incorrect. In fact, most share a common element that is important for understanding marketing (see underlining above):

What is noteworthy, however, are some integral features that are missing from these definitions, which would help one better understand the more meaningful, practical applications of marketing, especially the role that branding plays in this discipline. For example, not one of these definitions included the word “brand,” but instead referred to “products” or “services.” Also, none are very simple. At its core, “marketing” is ultimately about influencing or causing change in behavior. Other critical aspects that should be recognized when trying to understand and apply marketing, which are essential for branding, include the following:

The founders of Business Development Network, Richard Czerniawski and Michael Maloney, offer a definition that is more target specific, behavioral, competitive, and brand driven, which I personally favor:

Branding and Positioning

No one can appreciate the usefulness of branding as a tool without first understanding how it relates to the strategic process of positioning. From the standpoint of a proactive marketer, positioning is how one describes something (e.g., a product service, organization, individual, country, event) so that your audience will distinguish it from competition in terms of how it fits a compelling and relevant need. Or from the customer’s perspective, how you want your audience to perceive and feel about your product/service.

The brand is an extension of the positioning, the “net impression” or essence of what the positioning means to its audience. What makes a brand so vital is that it is the basis for an emotional bond between the customer and this special meaning of the product. The key is the relationship. The brand brings the positioning to life, so it becomes easier for a person to perceive and feel more attached to an appealing brand.

It is simple human nature for people to respond more strongly to other people—the “chemistry” between people, rather than the main qualities of a “thing”—for example, a product or service. This is why it is helpful for one to think of a brand as a human “personality” (other common descriptors include brand character, identity, image, and soul).

Webster’s concise definition of personality is perfect for understanding how a brand personality should be described: “Individuality, distinctive personal qualities.” A brand should create an impression that reflects the complexion, temperament, and spirit of a personality, the brand personality. The relevance and appeal of these special personal qualities will also determine the perceived value of the brand. The personality will often mirror the profile of the primary user as well. These meaningful personality qualities will form the basis of a relationship, ideally based on emotions and feelings, between the brand and the customer. Examples of concise brand personality descriptions are as follows:

Product Positioning Versus Brand Positioning

It is important to also recognize the difference between product positioning and brand positioning. The former focuses on what a product does on a functional or basic level. In the pharmaceutical industry, for instance, such a product positioning simply describes the indication (functional role) of a special compound. A true brand positioning describes the entire offering, encompassing both the tangible and the intangible elements to create a genuine experience and an emotional connection between the brand and the customer. This relationship should build over time as marketing continues to reinforce these important intangibles in different forms and media. For example, every time a customer has a Starbucks experience, he or she is exposed to an array of innovative offers that solidify a unique brand impression of being “novel, hip, and cool.” There are other characteristics that demonstrate how good brand positioning can ideally become more enduring:

Common Threads for Smart Branding

Branding is a term that is definitely over used and/or often used inappropriately. Sure, anything with a name and/or logo by the most minimal definition is technically a “brand.” But is it a good brand, something special, meaningful, and adding value for the customer, and hence worthwhile for the manufacturer?

While brands are used to describe so many phenomena today—products, services people, places, events—successful brands do have some common attributes. These are some key ingredients and critical building blocks for good branding:

Why Branding Is So Critical Today?

We are living in an age of information overload. New technology has advanced so much that we are constantly inundated with communication messages wherever we go, and the number of options to consider for any purchase decision can be overwhelming these days. With all the clutter today, marketers face the awesome challenge of somehow getting their brand to stand out in this overcrowded world. The number and complexity of consumer choices are increasing all the time, yet the hours in a day and our mental capacities remain the same. Just imagine a consumer standing in front of a specific food or a personal-care product section of a supermarket or pharmacy, trying to quickly absorb the differences among a vast array of product brands and their extended types, shapes, sizes, and packages, and having only minutes to make that purchase decision. We’ve all been there, or at least witnessed this scenario. It is a truly daunting and frustrating experience.

It would be far easier if this consumer could immediately identify one element in this diverse product section that would give him/her some degree of instant comfort and assurance. Ideally, it should be a brand name that provides immediate recognition and comfort, or maybe a new brand name but from a well-known corporation, or a familiar symbol or logo next to the name, or perhaps the special graphics and colors on the package.

These triggers for instant identification are called “touch points.” Whatever the particular touch point is, it should conjure up a positive feeling that implies an expectation of performance or even a promise of a predictable experience, hence a sense of trust. This “brand power” that enables the consumer to make this purchase decision more easily and quickly with reduced risk is why branding is so important today, especially in light of all the clutter that surrounds us.

While we may not be so conscious of the extreme clutter that has filled our daily lives, it is useful to understand the main driving forces behind this overload trend, plus the implications for developing relevant and distinct brands:

Today’s Biggest Challenge: CONTENT That Inspires

Even though we are flooded with new digital media options and promotions these days, most marketers seem to be obsessed with simply adding more and more tactical offers or product promises. This is the wrong direction. Instead, more emphasis should be on developing relevant content or a focused message that will reinforce the brand impression and stimulate that desired “WOW” reaction, which will set your company or product apart from the clutter, and may also ensure it is shared and goes viral on digital media. As Chip and Dan Heath write in their recent book Made to Stick, the idea behind a brand story or communications must be “sticky”—simple, concrete, credible, and emotional. People don’t remember a laundry list of features or an abstract concept. They want to relate to a core idea or brand, become emotionally attached to it, and feel comfortable to act on it—even purchase it.

Developing a focused, compelling brand message is not easy. It takes time, intensive research, independent diverse thinking, and especially an effort to generate new, creative ideas. Ultimately, it must define a corporation, product, or service brand in a way that leads to distinctive, meaningful content, ideally with a “sticky hook” that will break through the clutter, become viral, and eventually result in a purchasing action.

Criteria for Powerful Brands

The strength of a brand is relative. Anything with a name is technically a brand, but how effective it is as a marketing tool depends on the strategic positioning of the brand (i.e., the content) and of course how well it is marketed. A good brand must start with the two main requirements for positioning: filling a customer’s need and being different from competition, in reality and at least in perception.

Branding is essentially about developing relationships, and consumers are much more likely to gravitate to a brand if it is perceived more like another human being. In other words, the appeal of a brand is very similar to the mutual attraction between two people, ideally with a trustful, compatible relationship that evolves over time. Like people, brands are complex and should offer many complimentary attributes that help solidify this common bond of friendship. In addition, brand and people relationships take time to develop, and usually become stronger with constant reinforcement of these critical qualities:

Strategic Positioning for Powerful Brands

Positioning defines how you want your brand to be perceived. It provides a relevant value proposition based on the perception as to why consumers should select your product or service instead of a competitor’s. Positioning is analogous to an architect’s blueprint for a building, only here it provides the specifications for developing a brand and also the direction for the marketing implementation and action—from new products to all forms of traditional and internet advertising.

Taking this analogy one step further, visualize a city like New York, which is known for its skyscrapers. Each building provides specific services so that it can fulfill the basic needs of its tenants and visitors. But there are some special buildings that have more character and evoke positive, memorable emotions—The Chrysler Building, The Flatiron Building, The Empire State Building, and The Seagram Building. They stand out in people’s minds because of their unique design and history. Similarly, the most noteworthy brands are those that have a special design as well. This design process is the positioning process.

Positioning is a strategic discipline that will ultimately establish the most important reason for selecting a brand. It addresses the following three essential business purposes:

Summary

While “branding” is becoming more recognized as a vital business tool, it is also misunderstood by many people. Most often, they only think of the brand name or the “look” of the brand. These are important components of a brand, but it is much more than this exterior. Branding is all about creating a distinct, positive impression that will foster a lasting relationship with the target customer, so the basic message and content become the key to successful branding.

Branding is best understood when explained in the context of marketing. Essentially, it is the heart of marketing as all types of marketing and communications initiatives should reflect this core brand positioning.