Branding: A New Era In Corporate Identity

Over the past decade, branding has evolved from a cool design created and incorporated into all of your marketing collateral and packaging materials into a force that drives strategic business decisions. A brand is an intangible yet critical component of what a company stands for. When a consumer thinks of a brand, it should own a place in the consumer's mind, and when the brand is mentioned, everyone should think of the same thing: Hallmark stands for caring, HP stands
for innovation, Nike stands for athletic performance.

Smart companies work hard to ensure that their brand is consistently as good as
it can be, even after the sale has been made. The sales tools, public relations efforts and follow-up customer service all must reflect brand values and impart
a consistent brand image. Imagine visiting a Nordstrom store, being ignored by salespeople as you shop a department and getting a roll of the eyes when
you ask a salesperson to check the stock room for your size. This would be inconsistent with the image Nordstrom has masterfully captured, as the retailer that delivers exceptional customer service.

The customer's knowledge and perception of a brand is formed by the actions, behaviors, activities and contact with every manager and employee. The brand
is owned and should be managed by every employee in the organization. This means the brand must be enhanced and guarded at every point where the organization touches the customer, regardless of industry or company. These touch points build the consumer's perceptions about the brand, good or bad.

Savvy companies have evolved their brand development to include important components such as establishing a corporate "persona" or identity, developing a brand-based customer model, determining a brand asset management plan, and developing materials and advertising that support and promote the brand. Further research indicates the importance of a strong brand:

 • 72% of customers say they will pay a 20% premium for their brand of choice,
   relative to the closest competitive brand. 50% of consumers will pay a 25%
   premium, 40% will pay up to a 30% premium.
 • 25% of customers state that price does not matter if they are buying a brand
   that owns their loyalty.
 • Over 70% of customers want to use a brand to guide their purchase decision
   and over 50% of purchases are actually brand driven.
 • Peer recommendations influence almost 30% of all purchases made today,
   so a good experience by one customer with your brand may influence
   another's purchasing decision.
 • More than 50% of consumers believe a strong brand allows for more successful
   new product introductions and they are more willing to try a new product from a
   preferred brand because of the implied endorsement.
Source: Brand Asset Management, Scott Davis, Copyright 2000

According to John Hagel, chief strategy officer at Twelve Entrepreneuring in San Francisco, "We are on the cusp of a major shift in how we think about branding. Historically, a brand has been a promise that says, 'If you buy this product or
buy from my company, you can rely on me because of the attributes attached to the brand.' We're going to see a new kind of branding where the promise is, 'I know you as an individual customer better than anyone else, and you can trust me to assemble the right products or services to meet your individual need."
One company that has successfully embraced this new branding philosophy is Amazon.com, using its profiles of customers to customize the recommendations
it provides for future purchases.

Many companies take the role of developing the Brand Positioning Statement
and Advertising Strategy Statement upon themselves. Smarter companies will not only lead the development of the Brand Positioning Statement and Advertising Strategy Statement but will also include their advertising agency personnel as partners in the process. The Advertising Strategy Statement provides guidance and direction for the development of the brand's advertising campaign. It consists of the Who (target), What (benefit), and Why (reason-why support for the benefit) in addressing a specific brand marketing issue or objective.

Ideally the company includes not only the agency account manager in the strategic process, but they also find a way to get the creatives involved. Good strategists are creative, and good creatives are strategic. The earlier the creatives are brought into the process the sooner they will embrace the brand and will develop creative that is based on a combination of knowledge, intuition and insights.

In the new millennium there are more factors than ever before to consider in
brand development and management. It is an important effort that is best developed, administered and properly utilized with the input and expertise of many. The branding process can take months or years depending on the size
of the company and the responsiveness of senior management. Finding an agency that can be a partner in the process; supporting the company in the development of the brand strategy and leading the execution of the advertising and marketing efforts; will result in more effective advertising that hits the target and generates the emotional connection and loyalty necessary for a successful brand.