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Branding is one of the most important aspects of any business, large or small, retail or B2B. A brands strategy is a formal plan used by a business to create a particular image of itself in the minds of current and potential customers. When a company has created and executed a successful brands strategy, people know without being told who the company is and what they do. Companies as large and established as Coca-Cola as well as small brands and even businesses that sell services to other companies all benefit from a carefully created brands strategy. As a result of brands strategy, people develop a particular feeling or opinion about a company -- a feeling that drives their buying decisions. This feeling equates to brands equity. The stronger people feel about brands, the stronger the brands equity. Effective brands strategy gives you a major edge in increasingly competitive markets. But what exactly does "branding" mean? Simply put, brands are the promise to customers. It tells them what they can expect from your products and services, and it differentiates your offering from your competitors'. Marketing may contribute to brands, but the brands are bigger than any particular marketing effort. The brands are what remain after the marketing has swept through the room. It’s what sticks in your mind associated with a product, service, or organization—whether or not, at that particular moment, you bought or did not buy. The brands are ultimately what determine if you will become a loyal customer or not. The marketing may convince you to buy a particular Toyota, and maybe it’s the first foreign car you ever owned, but it is the brands that will determine if you will only buy Toyotas for the rest of your life. The brands are built from many things. Very important among these things is the lived experience of the brands. Did that car deliver on its brands promise of reliability? Did the maker continue to uphold the quality standards that made them what they are? Did the sales guy or the service center mechanic know what they were talking about? Marketing unearths and activates buyers. Branding makes loyal customers, advocates, even evangelists, out of those who buy. This works the same way for all types of businesses and organizations. All organizations must sell (including nonprofits). How they sell may differ, and everyone in an organization is, with their every action, either constructing or deconstructing the brands. Every thought, every action, every policy, every ad, every marketing promotion has the effect of either inspiring or deterring brands loyalty in whomever is exposed to it. All of this affects sales. Is marketing a cost center? Poorly researched and executed marketing activities can certainly be a cost center, but well-researched and well-executed marketing is an investment that pays for itself in sales and brands reinforcement. Is branding a cost center? On the surface, yes, but the return is loyalty. The return is sales people whose jobs are easier and more effective, employees who stay longer and work harder, customers who become ambassadors and advocates for the organization. Branding is as vital to the success of a business or nonprofit as having financial coherence, having a vision for the future, or having quality employees. It is the essential foundation for a successful operation. So yes, it’s a cost center, like good employees, financial experts, and business or organizational innovators are. They are cost centers, but what is REALLY costly is not to have them, or to have substandard ones.
“Creating customers” is a strategic act in itself. It is one reason why the “creating customers” approaches to brands are so powerful. It is inherently strategic. It aligns company and customers in a shared context from the get-go. A brands strategy should transform the narrow context of “buyer-seller” into the mutually-rewarding context of “team.” That in itself is a key competitive advantage because it frames the brands in a customer context. Many brands don’t have strategies. While there are a great many brands in the world, not all brands have brands strategies. Instead, they have sales strategies wrapped in marketing schemes. Such brands are constructed as calculated identities to be flogged by media campaigns, in which the “brands” operates as a stylized sales stimulant. Such brands are synthetic creatures of marketing and sales–and nothing more. They’re part of a persuasion package whose mission typically ends at the cash register. Are they creating strategic customers for the future? No. Brands applications gain strategic advantage. Brands developed as customer-facing applications---where the brands are a method to create value---gain strategic advantage from the get-go. They build on brands synergy, the joint powers of company and customer structured and deployed to defeat competitors.
The foundation of the brands is the logo. Your website, packaging and promotional materials--all of which should integrate the logo--communicate brands. Brands strategy is how, what, where, when and to whom you plan on communicating and delivering on the brands messages. Where you advertise is part of your brands strategy. Your distribution channels are also part of the brands strategy. And what you communicate visually and verbally are part of your brands strategy, too. Consistent, strategic brands leads to a strong brands equity, which means the added value brought to your company's products or services that allows you to charge more for your brands than what identical, unbranded products command. The most obvious example of this is Coke vs. a generic soda. Because Coca-Cola has built powerful brands equity, it can charge more for its product--and customers will pay that higher price. The added value intrinsic to brands equity frequently comes in the form of perceived quality or emotional attachment. For example, Nike associates its products with star athletes; hoping customers will transfer their emotional attachment from the athlete to the product. For Nike, it's not just the shoe's features that sell the shoe. Defining your brands is like a journey of business self-discovery. It can be difficult, time-consuming and uncomfortable. It requires, at the very least, that you answer the questions below: What is your company's mission? What are the benefits and features of your products or services? What do your customers and prospects already think of your company? What qualities do you want them to associate with your company? Do your research. Learn the needs, habits and desires of your current and prospective customers. And don't rely on what you think they think. Know what they think. Because defining your brands and developing a brands strategy can be complex, consider leveraging the help of an expert.
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