Take a look at a few of the big branding successes of the current decade – Amazon, Disney, Apple, Google for example.
Each has developed a successful, world-wide brand image that drives both sales performance and shareholder value. How has branding accomplished these goals? Hint: not with a colorful logo or clever slogan.
Branding is a combination of marketing communications, product characteristics, and product differentiation. For a brand to be successful, the product must:
- have some unique characteristics
- provide the primary benefits promised
- deliver the benefits consistently over time.
Marketing must then reinforce the consumer’s experience with the product.
Virtually all products can be branded. Small business owners in greater Cleveland don’t have to be Disney or Amazon to reach brand-recognition. Think well-known local favorites like Slyman’s corned beef, the Westside Market or the Rock and Roll Hall of Fame. They’ve all met the test for brand success: they’ve managed to achieve positive brand equity. Positive brand equity allows the marketer to charge a premium for the branded product, earn greater long-term benefit from marketing investments, and to create higher profitability.
Three core attributes of branding are:
- Brand knowledge – what consumers recall about the brand
- Differential effect – the impact of that brand knowledge on future purchases
- Consumer response to marketing – the impact brand equity has on consumer response to sales promotions, line extensions, etc.
Fair or not, knowledge of the brand allows the consumer to avoid a fundamental barrier to purchase or risk of disappointment. The brands out front have earned that position. That’s evident in such markers as the buyer’s knowledge of the brand, prior purchase and experience, and marketing communications about the brand.
In other words, a higher level of brand equity will result in consumers more likely to respond to a specific offer or promotion, more willing to sample an improved or evolved version of the product, and far more likely to sample a new product bearing a familiar and trusted brand.
For example, loyalty to an automaker’s brand can result in consumer willingness to purchase new models.
One example of successful automotive branding is BMW. Once a small automobile manufacturer, BMW has grown and built its customer base by rigorous brand management. Its products are instantly recognizable, continue to provide enthusiasts with superb road holding and handling, and convey luxury, performance and excellence. Every BMW, from the least expensive to the most expensive models, conveys the same brand value.
The marketing message alone is not sufficient to create differentiation; the product must substantiate the marketing message by providing repeated confirmation of its truth.
Companies— whether small or large — that neglect to understand, measure and manage their brand attributes and image will find themselves less competitive and less profitable than others in their industries who actually pay attention to this vital aspect of marketing.
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