Branding Overview

Why Branding Works

In times of economic flux, many companies struggle with how much to invest in their brand and how it will affect brand equity. And, will an increase in brand equity translate into revenue generation and profits. In some cases, even the term "branding" is confusing and difficult to understand. To better interpret and address these important issues, we've categorized a question and answer forum below.

What is a brand?

The brand is the "relationship" between a product and/or service and the consumer. Interestingly, the consumer owns the brand not the company. Their perception of what values and promises it delivers dictates the brand's value. The company's ability to manage and grow the brand will determine its sustainability and equity. In overview, anytime a consumer touches your brand via any medium whether phone, interpersonal, print, web, or otherwise, it must consistently communicate the promises and values your product and/or service can deliver. This is called the "moment of truth".

Why manage the brand?

Managing the brand is an ongoing process of defining, positioning, planning, creative, and execution. Without all of these components in proper alignment, the brand will not perform consistently. For this reason it's critical the brand's story is being told consistently from one medium to another. Managing the message and telling your story consistently will ensure that the consumer understands your value proposition. The company that tells the best story consistently throughout all mediums, wins the business. The reward for such measures is called brand clarity, purpose, and value, which ultimately will drive revenue.

"Good" is not good enough

Saying your product or service is a better value is not enough. Many companies find themselves too close to the product or service to best interpret and/or communicate its core values. Unless the story about the product or service is told in a way that consumers will understand and connect with its unique value, the true success of the brand will not be fully realized.

Building and sustaining customer value and long-term revenue generation

The way a brand positions itself in the market affects its growth, market share and value. If a brand isn't focused, clear and offering a true distinct value, it will not succeed. Brand positioning is the foundation of the relationship between the customer and the company. This is true whether it's building a web site, a brand identity or an ad campaign. Each of these components of the brand message build the impression of value to the customer and lead to bottom line revenue generation for the company.

Be a market driver not market driven

In today's marketplace, a clear brand strategy and ongoing management drive the most effective brands. Basing your brand strategy and marketing initiatives in response to competition will leave you perpetually behind in the minds of consumers. Companies that manage the ongoing evolution of their brand by adjusting their messaging to meet consumer value are rewarded with brand sustainabilty. By partnering with a strategic branding company, your company can be a market driver instead of market driven.