Branding 101

An Overview of the Fundamental Principles of Branding

Introduction

Every once in a while, it's a good idea to go back to the basics. Take a quick refresher course and get reacquainted with the essential essence of a particular subject. In this case, that subject is Branding. Branding is one of those words that has been embraced by not just the business community, but by pop culture alike. In fact, when it comes to Branding, many of us have different views on what branding means. The term has been used so often that its meaning has become diluted and often changes depending on who is using it. Its been used to describe everything from logos, collateral, commercials and public relations to how a company actually "presents itself. "

History

Although branding can be traced back to as early as Pompeii, mass-marketed brands began during the Industrial Revolution. Factories established at that time were able to mass-produce goods and ship them long distances to compete with goods produced locally. These packaged goods manufacturers needed to convince people that they could place just as much trust in their products as locally produced products. When shipping their items, the factories would literally brand their logo or insignia on the barrels used, extending the meaning of "brand" to that of trademark. Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats were among the first products to be 'branded', in an effort to increase the consumer's familiarity with their products. Many brands of that era, such as Uncle Ben's rice and Kellogg's breakfast cereal furnish illustrations of the problem

Benefits of a strong brand

Influences the buying decision and shapes the customer experience. Creates trust and an emotional attachment with a company. Helps make purchasing decisions easier. It helps customers trust us and create a set of expectations about our products without even knowing the specifics of product features. Product features may become less significant. Will help protect customers from the competition. Decreases price sensitivity, increases customer loyalty, increases market share, increases stock price,

A good brand summarizes who we are, what we stand for and the experience we deliver

What is a brand? Brand defines the perception that we want people to have of us Who we are What we stand for The experience we deliver Great brands define their categories with a message and personality that is meaningful to their customer and differentiated from competitors This message and personality is their Brand Position A brand is a yardstick from which to judge everything Marketing Materials Advertising How we present ourselves Website Office Space A brand is not a logo, tagline or advertising campaign

Examples of Great Brands

Inspiration & Participation

The third place between home and work

Creative tools for people with creative minds

Safety

Performance

There are several different components that are required to make a brand successful
Brand position is grounded on strong consumer insight and relevant consumer needs Position is meaningfully differentiated from competitors Brand embodies what the company stands for and aspires to Brand positioning is embedded in the company vision, values and operating philosophy CEO is the champion and owner of the brand with all businesses accountable for the brand (not just marketing) Brand guides the customer experience and is used as a filter for key decisions Internal communication of brand is done in an effective way such that employees understand and are inspired by it Employees are given the support, tools and training to ensure activities and behaviour are aligned with the brand Proper metrics defined and put in place to quantify success of the brand both externally and internally

What is a Brand?

To put it most it in its most simple terms, a brand is a promise

A service companys brand is driven by its customer experience

Brands represent personal values

Image Branding Nike Ralph Lauren Coke

Experience Brand British Airways Schwab Starbucks

Strategic Impact & Difficulty to Establish

Brands differentiated by functionality

Functional Branding Tide Crest Threshold Branding Most Banks Utilities

Brands signal threshold quality

Brand Architecture
The general types of architecture are: Corporate Brand Corporate brand is the brand bearing the company name. It is always the highest in a brand hierarchy. Examples are Ford, Hewlett-Packard, IBM, General Motors, 3M, and Kodak. Master Brand Master brand is the dominant, highest level brand in a brand hierarchy. Typically, it is also the only brand in the system. Historically, many corporate brands were also master brands. Today, there are few master brands left. Visually takes top billing The relationship between master and sub-brand is akin to a father-son relationship (bear similarities but there will be some differences) Subbrand A subbrand is a new brand that is combined with a parent or corporate brand in the brand identity system. The subbrand can make the parent brand more vital and relevant to a new consumer segment or within a new product category. Examples are Taurus and Accord. Modify associations of the Master Brand Helps extend master brand into meaningfully different segments Master Brand + sub brand can have its own unique equity Allows for an adjustment in brand image when required Leverages existing brand equity thereby conserving brand-building resources Protects brands from being diluted by over-stretching Signals that an offering is new and different without starting over with a new brand Endorser Brand Gives credibility to the offering A shadow endorser is not connected visibly to the endorsed brand but many customers know about the link A token endorser is substantially less prominent (makes the connection with the endorsed brand visible) Parent Brand Parent brand is a brand that is extended into more than one product category. It may or may not be the same as the corporate brand. Examples are Ford and Honda. Parent brands offer the following advantages: Less expensive new product launches Trust/assurance Marketing economies of scale
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Branding Approaches: House of brands

independent, unconnected brands + permits positioning on functional benefits, + Widens the markets company can compete in +Minimizes channel conflict + can signal breakthrough advantage - No/limited brand leverage

Example

Branding Approaches: Endorser Branding

Provides credibility that the endorsed brand will live up to its claims not independent of the endorser but has enough freedom to develop product associations Endorser brand plays a minor role

Example

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Branding Approaches: Branded House

Master brand dominates and has the potential to maximize clarity because the customer knows exactly what is being offered (the basic difference between Kodak and Calvin Klein) Leverages an established brand and minimizes the required investment on each new offering Maximizes synergy since participation in one product market creates associations and visibility that can help in another. Sub-branding can help offset the firms limited ability to target specific groups

Example

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A brand is the sum of how an organization looks and everything it says and does.

External Commn Sponsorship Brand Standards Advertising Naming / sub-brands Promotion Logos, fonts, colours Collateral Tag lines, icons Web Events PR Brand Brand Internal Position Position Commn Staff HR Offerings Products Services Staffing Training Call Centres Evaluation Sales force Values Client Service

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Branding Positioning

Positioning is a process of ensuring that a brand can fight through the noise in the market and enables the brand to occupy a distinct, meaningful and valued place in the target customers minds.

Brand positioning plays a vital role in keeping a brand on track towards its destination. It pinpoints what makes the brand motivating, different and true for target customers. It is underpinned by brand truths, providing real substance and content that can be the starting point for a compelling and unique story It should inspires and guide employees, giving a clear picture of both the job the brand needs to do. The different elements of positioning (essence, values, personality, promise, benefits, brand truths, consumer insight, market definition, target consumer) must come together as a coherent whole.
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Definitions
Target Insight Brand Promise Emotional benefit Brand Essence Brand Personality The primary audience to whom the brand is designed to appeal

The element of our target and their needs that we are focused on A promise of relevant differentiating benefits How do we want the target group to feel
The heart and soul of the brand expressed as one clear thought

Adjectives that describe the brand as if it were a person

Brand Principles Brand Position

Directional guidelines on howwe should work & behave Spells out the target and the basis for competing

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Who's responsible for creating and maintaining the Brand?

Contrary to popular belief, your Brand isn't just the responsibility of the marketing department. It is the responsibility of every employee. It takes everyone to build it because everyone is capable of destroying it. Your brand encompasses every announcement uttered by the CEO to every comment overheard in the hallways. In a nutshell, it is the sum of the good, the bad , the ugly and the off strategy. Its represented by every great product and/or service and every awful product and/or service as well as every sales person and secretary in between.

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