Research: Melissa Davis - The Fundamentals Of Branding

The Fundamentals Of Branding
Melissa Davis

AVA Publishing; 1st edition
12 Oct. 2009
Rue Des Fontenailles
Case Postale
1000 Lausanne 6
Switserland

Look at: Interbrands best global brands poll of 2008

Defining branding

A brand encompasses the perception of it and its reputation, as well as its tangible 'look and feel'. It relates to the behaviour of a company as well as to the customer experience of it. Its impact is quantifiable. The brand itself applies both within and outside of an organization - to customers and employees. Successful brands are those that are dynamic and adaptable, that are able to evolve as markets change and audiences segment. A brand is not simple about looking good.

In recent years, branding has become a fundamental part of companies, organisations and even individuals. It is now so closely linked to the workings of a company. On the other hand, a strong brand will boost the value of a company

A brand is much more than a logo or a name. A brand represents a full 'personality' of the company and is the interface between a company and its audience. A brand may come into contact with its audience in various ways: from what we see and hear through to our physical experiences with  the brand and have general feelings or perceptions we have about a company. A brand encapsulates both the tangible and the intangible and can be applied to almost anything.

Brand History

Brands have been around for a long time. They were used centuries ago as an identifier for ownership - from branding horses to slaves. The emergence of brands in the commercial worlds most probably started at the end of the 19th century after the industrial Revolution.

The concept of brand management and marketing systems, like that of research and development, emerged around the 1920s and 1930s. However it was undoubtedly the growth of post-war economies and an expanding middle class that gave impetus to brands and a rising consumerism.

Branding has shifted from being simply about 'identity creation' - that is, designing a logo, name and 'look and feel' for the brand - to a period of attempting to emotionally connect with audiences.

Apple - Think Different

MacDonald's - Lovin' it

Nike - Just do it

Brand experience

A brand experience endeavours to engage people with the brand at a level that captures the audience's sense. This idea also helps competing brands stand out from one another - airlines, for example, may offer similar prices on a route but promise different flying experiences.

In a leaner economic climate, the functional attributes of a brand, such as its quality, service and ability to deliver on its 'band promise' will also stand out.

Brand strategy

A brand strategy is critical to determine the direction for the brand. A strategy should detail areas such as understanding the brand's audience, its market (including competitors) and should also integrate with the vision of the company. A company may also commission research into audience needs and experiences of the brand.

Adverts

Brand implementation will involve advertising and design agencies. Advertising agencies still play a very powerful tole in brand execution, often working in long-term collaborations with companies.

Brand architecture

Brand structure is also known as brand architecture and provides a map of relationships between all of the brands in a company's portfolio. It helps companies to define the relationship between the different brands and provides an overview that is easily managed. The brand structure will cover a picture of the whole brand 'family' including the relationship between the parent brand and it's sub brands, the relationships among sub-brands themselves and also brand extensions.

Corporate brand

Brand hierarchy structures can be used to group brands into families.

The corporate brand role depends on how prominent the company is in the brand proposition. it may include elements of social or business conduct, the relationship with suppliers and distribution channels and also be the employee brands.

EG General Electric

Phillips

Brand Positioning

A brand's position represents the brand's place in the market. it comes from developing the product of service image so that it occupies a distinct and valued place in the mind of the customer. The positioning will present a distinct proposition to the market that is in line with the brands values and the needs and desires of the customer.

To determine a brand's position, it is essential to understand what the brand means to a customers as well as having knowledge of the brand strategy.

Brand Values

Brand values are a set of attributes that customers experience as the basis of 'brand promise'. They give the brand personality and an emotional connections that drives trust and loyalty with the audience. Brand values are core to any brand - any deviation from a brand's values will run contrary to the original 'brand promise;

Greenwashing

Many large brands are now asking consumers to reconsider their perception of the brand, based around their ;sustainability' credentials. Brands such as UK retailers Marks & Spencer and Sainsbury's encourage people to buy more ethically produced goods.

Marks and Spencer' launched it's PLAN A initiative to showcase its intentions around sustainability and social issues with a 100-point plain to its customers.

M&S provides an example of creative execution that runs right across the brand - affecting the quality if the product and its sourcing, the stores and the marketing. It has been a very successful positioning for M&S

Brand Audience

Central to the brand process is to understand the brand's audience. Like people, brands grow and transform. There was a time when brands communicated to their audiences in a one-sided manner. The audience could be divided into simple categories that described a person's wants and consumer needs  based on their age, profession, martial status and social class.

Some decades later, the world has moved on. Audience have changed, diversified and segmented, just as the means and mediums to reach them have broadened. People are no longer necessarily loyal to one brand - they may be willing to try many- but they will buy into those brands that they identify with and associate as matching their own values.

Brands use many ways in which to encourage loyalty among customers. Loyalty schemes, store cards, point systems. Some brands, such as those that are associated with a country;s heritage - Ford Motors, the UK's Royal Mail or national airline, for example - court an ingrained trust in the brand because their identity is deeply routed in the national psyche.

Building trust in a brand must run deeper that using tactics such as customer incentives and marketing. A brand must stay true to its core values and not change these to attract new audiences of markets.

We are very promiscuous as a brand audience. Our loyalties change. Traditionally we were 'buying into' the brand; now we can decode all this and emotional engagement on its own is not enough.

Audiences want a more practical relationship with brands, where reality and functionality matter. Robert Jones & Wolff Olins

Personal Beliefs

In this new brand context, a brands values and what it contributes to a person's belief system had become the decisive choice factor for many. This applies to what car people drive, what clothes they wear, what food they eat. Price and location also matter, but values can be the differentiator for the discerning consumer or for the one making a choice between similarly priced brands. Those values can be anything from demonstrating wealth and being a part of a particular elite class (insert example)

Many consumers accuse brands of greenwash - when  - when the good deed done by a single campaign or promotion is not reflected across the whole company or brand lines. if a brand is to adopt any element of sustainability, then that much be acted upon and reflected across the whole company, from its operations to its communications.

Collaboration

The past decade had seen a huge increase in celebrity endorsement and brand collaboration - including celebrities introducing their 'own brand' ranges. Celebrity endorsement will often aim to make the product or service more visible  or credible - lead to an increase in scales by enhancing its reputation and image.  It can also offer shoppers anew range of good while extending the brand affiliation between the company and its consumers. In other cases, the joining of two brands can boost  new product or service - if the idea is good enough.  Example: Jamie Oliver for Saindburys

Practising value-chain brand management is essential to establishing brand as a strategic business tool in the boardroom. This means using crunchy analytics of customer divers to help shape brand strategies that are executed. These improvements are then tracked and integrated into the ongoing business management.

Iain Ellwood

Head of consulting/Interbrand

Rather than stirring up wants and creating false needs, successful brands will be those that provide the greatest positive contributions to those who are affected by their creation

Kristina Dryza. Trand Forecaster

Conclusion

Essentially, however, branding is about communicating on many different levels. The brand must communicate to the audience in a relevant and effective way. A strong brand will also encourage its audience to communicate positively about it.

branding is not about following a trend or particular way of speaking. Its about innovation, translating ideas, understanding your audience and communicating int he most effective way possible.

Glossary

Brand Experience - A terms used to refer to creating an experience when people come into contact with the brand. An experience may aim to reach all the sense

Brand Mark - The 'mark' or 'marque' that identifies the brand. it is also known as the logo and can include a strap-line.

Brand Perception - How a brand is perceived or viewed by its audience.

Brand Values - The values reflect the core of a brand. these are usually around 5 words that are used to embody and describe the brand to its employees. Values must be supported by behaviour.

Brand Architecture - The topology of how an organization structures and names the brands within its portfolio. This may involve product or service brands that sit under the corporate (company) brands, as well as sub-brands.

Look & Feel- The visual style of a brand which encompasses the brand mark, colour font and images. Together, these create the overall 'look and feel' of a brand.

Parent Brand - The main brand owner or holding company.

Tone of Voice - The 'vocabulary' and style for a brand, which also plays into the brand's style.

Positioning - A tangible, marketable item that it often the basis for the brand.

Visual Identity - What a brand looks like including, among other things, its logo, typography and packaging.