A strong brand:

• is authentic and focused.
• will understand its target audience and actively address its needs
• will differentiate itself from its market context
• makes its employees and customers happy while earning money.

The most basic definition of a brand provided by the American Marketing Association is: “name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers… A brand may identify one item, a family of items, or all items of that seller.” So a brand may be responsible for just one, or any number of products; potentially competing against itself. Though this may help explain very roughly what is meant by the term, a strong brand is something worthy of its own definition. Although it fits under this general explanation, a strong brand is authentic and overtly clear.

John Moore, who has ten years’ experience working deep within marketing teams at Starbucks and Whole Foods, boldly asserts, “When a company (a) makes money, (b) makes employees happy, and (c) makes customers happy … it makes a strong brand.” Each component is integral in fostering a strong brand. If a brand doesn’t address each aspect of Moore’s statement, it isn’t strong. Sure, a brand can get by on 1 out of 3, or sometimes even 0 out of 3 (think airlines), but without all qualities being satisfied, it will not be truly strong. This simple definition provides a good starting point for thinking about what makes a brand strong.

Beyond these three factors, others argue that a brand is made strong by its core values and its alignment with corporate identity. Clearly defined values result in strong directionality and purpose. Having overtly clear principles in addition to a company culture that allows for and rewards adherence will inform brand quality. In order to be truly strong, brand ideals must be understood and practiced at all levels. All aspects of business must be informed by behavior.

Further contributing to the mix, others suggest that brand value can be measured by earnings and context. David Muir of WPP builds upon the simple definition given above in “The Power of Brands.” He explains that strong brands generally:

• Have greater revenue growth
• Have sustainable gross margins
• Exhibit less systematic business risk

The result of these qualities means that a strong brand will generate more consistent cash flow and add greatly to shareholder value. Another way to think about this is to calculate brand value using overall intangible earnings, brand driven intangible earnings and a variable that takes market valuations and growth potential into account.

• Brand value = intangible earnings x brand contribution x brand multiple

What a Strong Brand Looks Like

Having successfully pulled off one of the greatest rebranding efforts in recent market history, Starbucks can teach us that purpose driven brands are strongest. Even though Starbucks started out as a small independent coffee company, after 30 years in business it had become a goliath. Despite its long period of financial gains, the brand lost touch with its original goal; to act as a friendly neighborhood coffee house and to provide a quality experience. It had instead become a running joke due to its highly real-estate driven business model and mass produced beverages. In order to return to those values, the company emphasized higher attention to detail and drink quality, as well as a friendly and open atmosphere. Their approach shifted from quantity to quality in an effort to re-establish their image as purveyors of fine coffee and espresso drinks. Following this change in values, an aesthetic overhaul and rebuilding of their classic logo represented the new (or old) Starbucks. By removing “coffee” from their name and making their image more universal, they were able to better represent their renewed purpose-driven approach to business.

The authenticity in purpose behind this approach is what made it successful. Management was truly dedicated to re-imagining the brand and creating a culture-centric experience. The customer-oriented approach at the heart of the renovation resulted in A, B and C of Moore’s assertion; customers were happier, employees were happier, and profits increased exponentially.

Resources

• Allen Adamson discusses how a strong brand will motivate its workforce through purpose in his blog entry on Forbes titled, “Define Your Brand’s Purpose, Not Just Its Promise.” A clear, narrow focus will result a driven team and effective marketing. In another entry on Forbes, he interviews Starbucks’ chief marketing officer, Annie Young-Scrivner. Here, Adamson and Scrivner discuss the Starbucks brand and what it stands for.

Before it is possible to create a stellar brand that delivers a quality product, companies must know their target audience. The demographics are important, what age, class, gender/sex, and personalities do they have? What do they value? Aligning brand position with audience is important to successful marketing.

By focusing strongly on a particular group, marketing is more effective.  Now over twenty years old, Comedy Central has clearly been directed towards a younger crowd. Aiming for a primarily male audience between 18 and 34, the channel makes every move based on how it will be received by their audience. In a New York Times article, channel president Michele Ganeless is quoted, “We have never wanted to be all comedy to all people.” Instead of attempting to reach everyone, a clearly directed approach has resulted in great success. The sarcastic, tongue-in-cheek mock news shows that are hosted by Jon Stewart (The Daily Show) and Stephen Colbert (The Colbert Report) are representative of its talent as well as its direction. Ringing especially true with those who are frustrated with traditional media, Comedy Central provides a singular, consistent perspective for its young, male audience. By selecting a clear demographic, the channel has both differentiated itself from others and been able to keep viewers entertained.

Often, companies vie for the attention of similarly young demographics, yet there remain many other marketable groups. Marketing towards those aged 50 and higher is often overlooked, despite the growing need. Brands interested in such an audience might focus on what members of that audience are likely to have in common; children in college, mortgage payment, or a shared past. For instance, a brand may incorporate cultural symbols into an advertisement, or harken back to the rebellious spirit of the 60s. This does not necessarily mean success, however. Such an approach may too easily become arbitrary or inauthentic. If there is a noticeable gap between what is expected of an audience and what is real, an entire brand personality can be destroyed. Though appealing to a specific demographic can be the key to success, inadequate research or inauthenticity can quickly cause major problems. Marketing must remain relevant; it should appeal to some essential characteristics, but can’t rely too heavily on superficial or nostalgic influences.

By creating advertisements or otherwise employing a brand strategy that addresses the values and wants of one specific demographic, marketing is made more effective. Understanding different demographics and their interests is extremely powerful. By knowing how an audience will respond to a particular approach, it is possible to create products and marketing campaigns that will be mutually beneficial.

Resources

• A guest post on FutureBrand’s blog titled “Comedy Central Brand Strategy No Joke,” takes a look at how the channel is able to succeed with its strong focus on audience. Allowing talent to do what it does best and emphasizing a singular point-of-view, Comedy Central has seen great success.
• Brent Green, author and marketing consultant, explains how to market to the Baby Boomer generation in “A Case for Generational Marketing and Baby Boomers.” Different approaches such as “Ageless Marketing,” “Life-Stage Marketing” and “Generational Marketing” are discussed in terms of their strengths and weaknesses.
• Brand systems are powerful visual and verbal means of representing a brand. The Rebranding Branding blog at Distility explains that brand building is the value of commitment.

Even with the best intentions and a clearly defined purpose, effective strategies have to be utilized in creating a strong brand. Strategy should be guided by values, but the art of strategy is a complex form that involves verbal and visual branding, as well as techniques that address narrative and issues of exposure.

Positioning

A company’s approach to the market is among the most important aspects of branding. It will determine advertising methods, demographics, and the look and feel of the product’s representation. Positioning is also responsible for creating an emotional, personalized experience for consumers. A brand’s positioning should place it beyond its direct services; how does it fit into a larger whole? Appealing to a grander ideal may help an audience see that your brand represents more than just its product. It may represent a way of life, or an ambition. Master of Starbucks, Howard Schultz affirms this saying, “A great brand raises the bar — it adds a greater sense of purpose to the experience.” A brand is much more than its product.

Naming

The most obvious name is not always the most obvious choice. Companies tend to name themselves after what their product does or what business they are in, but this is not always to their benefit. What such companies fail to understand is that this information will be transmitted through context.  On its website, the Igor Naming Agency explains, “There is simply no imaginable circumstance in which a name will have to explain itself.” A brand name should differentiate it from the competition, but a descriptive name will only lump it in with them. Context generates meaning, so a company’s name doesn’t have to.

What is more important in naming is creating something evocative. Not something entirely random, but something that distances it from the naming conventions of its market context. In the midst of the computer revolution, a name like Apple Computers (whose competitors were IBM, DEC, ADPAC and so on) stood out. The name distanced it from everything else in the market, allowing consumers to see their innovative approach to computers (they applied a graphical user interface, and introduced the mouse). The name of a brand represents its positioning and a powerful name can be a great marketing advantage.

Image

Popular brands establish strong (unique) visual cues and aesthetics. What does an Apple product look like? What is it like to be inside of a BestBuy? Distinctive features separate products and brands from the rest. Creating a visual aesthetic or personality behind the brand is essential. Personality determines the way that a brand will be perceived.

Everything from font to product design greatly influences the overall perception of a brand. For instance, the shape and appearance of letters may indicate specific values or feelings. A highly stylized cursive font may better indicate eloquence, while more rounded letters may convey fun or accessibility (think Coca-Cola versus Koosh). When Nokia decided to change its font in spring 2011, it received a lot of attention, some bad and some good. Though the old Nokia Sans is highly recognizable, an attempt at rebranding has resulted in the creation of Nokia pure, a font Nokia describes as “beauty in supreme usability.” Detail, right down to the font, should match a brand’s purpose. Logos and visual branding have to be thoroughly thought out in order to be most effective. A strong, focused brand strategy will improve consistency as well as quality of operations.

Resources

• Lisa Valuskaya addresses how to choose appropriate fonts for achieving a specific feel in “Ask a Designer: Choosing Fonts.” As an experienced designer, she informs readers about the relationship between font and effect.
• Visual-branding.com details creating a brand personality in order to achieve greater market success. Part of an eight part series, Tom Dorresteijn explores the ways in which brand identity and values interact.
• More information regarding Frame of Reference and context can be found at the Distility website. Here they look at the importance of Frame of Reference; this post clarifies the role of positioning and market context in brand strategy.

Branding is a highly psychological and literary arena. Evoking an emotional reaction is a complex natural process and some strategies are more conducive for this than others. Neuromarketing is among the “holy grails” of the advertising world; seeking to understand the processes of the brain behind advertising will elucidate, in more concrete terms, how branding works. Current knowledge in the field tells us that our brains react in the same way when we observe brands as when we use products of that brand (mirror neurons). Brands can create somatic markers that can be reactivated later. The smell of coffee or fresh bread can be used to create a memorable sensory experience. Incorporating a narrative into a brand, or taking advantage of sensory perception can result in a powerful emotional/neurological connection.

Narrativity in positioning produces an interesting and differentiated brand that addresses emotion. A brand that utilizes narrative is beyond its products. It is a living, breathing personality that represents clearly defined ideals and produces an emotional response. Why should anyone buy what a brand is selling when there are plenty of other companies to choose from? By clearly displaying how a brand is unique or different, it will attract consumers. Bill Bernbach, one of Madison Ave’s most respected and innovative admen explains, “The difference between the forgettable and the enduring is artistry.” Creativity plays a significant role in developing a unique personality and narrative in brands.

A post on the Black Dog Strategy Blog titled You’re Too Good for Boring states, “If you’re distinct, worthy of note, and you hide behind  the same humdrum look, feel, sound, and practice as everyone else, no one will ever know you’re worthy of their time or attention.” A compelling brand narrative will complement or inform consumers’ own narratives and how they define themselves. People convey their personality through their goods; a product with a narrative that fits their world view is more valuable to them than one that is simply utilitarian, unless that happens to be part of their personality.

Building brand equity and recognition is one of the most powerful means of marketing. Utilizing narrative and appealing to emotion are among the best ways to ensure brand loyalty. Creating a following that is built to last will ensure long-term commitment and continued success.

Resources

• Storytelling and Brand Buying: A Note for Buy.ology – Incorporating neuroscience and narrative aspects of marketing, this blog post explores the connection between emotion and brand personality. Using Martin Lindstrom’s book Buy.ology as a jumping-off point, the author further explores psychological aspects of marketing.
• Entrepreneur hosts “The Art of Rebranding” which explains different types of rebranding and instances where it is appropriate to rebrand. Successes in rebranding such as Aunt Jemima and Sprint are included along with failures such as New Coke.
• Lisa Arthur addresses issues of brand loyalty, especially in the context of the digital marketplace in her article titled, “How to Build Brand Loyalty in a Digital Marketplace.” She points out ways in which loyalty can be retained when faced with adversity.

Brands fail often and for many reasons. This section looks at two of the major reasons that brands don’t enjoy success. All too often, brands attempt to adopt the look, feel and values of the brands that surround them. Not being able to differentiate a brand from the rest of the riff-raff is a nail in the proverbial coffin. Another common issue involves unnecessarily rebranding. At the first signs of trouble, some are eager to rebrand. What they fail to consider is that it is an expensive, time consuming process that destroys brand equity.

No Personality

Brands that fail to differentiate themselves from others through clear brand strategy and personality are doomed. The modern marketplace makes it possible to choose from an almost endless number of brands. Globalism and the presence of the Internet mean that any given brand may be placed next to hundreds of competitors. Product presentation down to brand logo and even font may mean the difference between success and failure. Of course, product quality and innovation factor heavily in creating a successful brand, but how will customers know what makes a company’s product different if it is not clearly communicated. Strong brands will use narrative based on core values in order to reach out to consumers. In a veritable sea of brand names and products, looking or feeling like everything else will result in lost opportunity. A clear, consistent and meaningful brand personality will stand out.

Unnecessary Rebranding

Often, executives are all too hasty to simply re-brand in hopes of recouping losses or revitalizing a product. While rebranding can be a life-saver, it is not always the answer. Rebranding is a surefire way to reduce brand equity, making it less recognizable and causing serious damage to its market value. In some cases, this can be like a total reset; highly undesirable for a well-established brand and insufficient for a severely tarnished reputation.

A bad rebranding is expensive, hurtful for PR and potentially dangerous to business. In April 2009, Pizza Hut temporarily changed many of its location’s names to Pasta Hut. Having kept the new names for the duration of the month, they claimed that it was an April Fools’ Day prank. In October, many locations in Britain were renamed to Pasta Hut as well. Perplexing some and annoying many, the move didn’t seem to do much good. After 50 years in the business, Pizza Hut added “The Hut” to their branding repertoire. A PR stunt intended to make the brand seem more hip or culturally centered, the campaign lacked real change. Aimed at the young crowd, the new name was supposed to have resonated with impatient teenagers. The company emphasized spin over substance and its rebranding was quickly spotted as a marketing ploy. Suffering damage to its brand equity, customer loyalty and tying up considerable chunks of cash, time and effort, Pizza Hut’s attempt at rebranding was a total failure. Though it has its time and place, companies should avoid hastily remodeling their brand strategy.

Resources

• Brad VanAuken and Derrick Daye consider 41 common brand problems and how to conquer them in their “Overcoming Brand Problems.” A problem is introduced, analyzed and then expounded upon. Just some of the many issues include: ego versus analysis driven branding decisions, limited channels of distribution, and not remaining innovative.
• Ruth Mortimer of MarketingWeek examines the lame attempt at rebranding made by Pizza Hut in her article titled “Pizza Hut’s Rebranding is Stale.” The Pasta Hut fiasco and superficial brand facelifts are argued against.

For all of the time and energy that is focused on increasing financial gain and addressing the concerns of the customer, ethics in business is somewhat overshadowed. Often, doing the “right thing” seemingly conflicts with the goals of business leaders. With some of the more shocking recent breaches of ethics in business (such as the BP oil spill), the debate over ethical practices rages on. In the world of marketing, ethical breaches may be less egregious than other sectors, yet they remain a serious concern.

Ethical Awareness

One approach to realizing stronger ethics in marketing is to emphasize the importance of legal and company-wide responsibilities. Raising awareness of what constitutes ethical behavior may improve the decision making process of those involved in marketing. When challenged by an ethical quandary, leaders should make deliberate well-considered choices. The problem with this approach is that it increased awareness may not translate to ethical behavior. Recognizing a problem and resolving a problem are very different things.

Deceptive and Unfair Practices

Deception in advertising is a leading concern in marketing ethics and is responsible for much of the legal activity surrounding the field. It is the job of the Federal Trade Commission (FTC) to regulate such tactics and keep brands honest. They are also responsible for publishing policy statements on advertising, as well as overseeing its adherence. The 1983 Policy Statement on Deception establishes that a policy is deceptive if:

• There is representation, omission, act or practice that would mislead consumers acting appropriately under the circumstances and that the given representation, omission, act, or practice is material.

Though this summary remains a bit dense, this basically means that advertisements can’t grossly misrepresent products or brands. Proof of deception rests upon juxtaposing actual product qualities with the message provided to consumers. In one case, hard drive makers Western Digital, used a definition of gigabyte that did not match modern operating systems resulting in a deceptive claim. If the FTC thinks what a company says about its product is malarkey or intentionally misleading, they will request that specific actions be taken (pretty much leaving the advertiser with no choice). Such actions typically include a Cease and Desist Order or Affirmative Disclosure.

Similarly, practices considered otherwise “unfair” are also under the jurisdiction of the FTC. An especially general term unfair once meant, “Immoral, unethical, oppressive, or unscrupulous conduct.” Thankfully, today the definition is mostly limited to acts that will possibly cause unavoidable substantial injury that is not outweighed by the overall benefit provided to consumers.

Marketing to Children

An especially vulnerable market, there are many regulating institutions for overseeing advertisements intended for children. Emphasizing TV as a medium, advertisers must be careful to adhere to the policies put into place by organizations such as the FTC and FCC. One area that receives special attention is the marketing of food to children. Many are concerned over aggressively advertising unhealthy foods to children due to the possible lasting health implications.

Why Systems to Ensure Ethical Marketing are Important

An infrastructure for dealing with ethical problems must be created at the company level. Rather than attempting to retroactively cover up scandals, preventative measures will result in fewer cases of misconduct and ethically questionable practices. By actively sniffing out and quashing the wild fires of issues such as price fixing and fraudulent marketing techniques, companies can avoid full blown controversy. Beyond simply doing “what’s right,” ethical practices will maintain brand PR and avoid the many legal fees associated with fighting cases of ethical breaches.

Resources

• David Rock discusses the teaching of ethics in business schools in his post on the Harvard Business Review blog titled “The Business of Values.” Here he explains the three major approaches to teaching ethics, pointing out concerns along the way.
• The Fairness Doctrine: A Solution in Search of a Problem – Adrian Cronauer, Senior Associate at Maloney and Burch and the inspiration for the film Good Morning, Vietnam, writes this account of the history of the Fairness Doctrine. Examining the Federal Trade Commission, law and questions of ethics and free speech in advertising, Cronauer argues for First Amendment rights.
• Dr, Linda Ferrel provides this survey of Marketing Ethics that addresses major concerns in the field as well as potential sources for unethical behavior. Offering insight into ethical marketing through subsections dedicated to ethical decision making, organizational ethics, and the relationship between ethics and reputation, Ferrel explains the ins and outs of responsible marketing behavior.
• The Oath Project is an initiative aimed at encouraging strongly ethical behavior for business school students. Its goal is to see an increase in responsible business practices in future business leaders.

Building a brand that matters – Alfred Lin former COO and CFO of Zappos details how to build a brand that is significant. Highly successful in Internet marketing, he has been dubbed as having the “Midas touch,” boasting a minimum acquisition deal of $265 million. In this lecture, Lin details the marketing approach that made Zappos and some of his other companies so successful.

Using rituals to generate word of mouth – The Branding Blog examines how ritual and emotional experience interact in order to create an effective marketing campaign. Good marketing plants seeds in the minds of its audience.

Simon Sinek: Inspiring Action – Simon Sinek, author of Start With Why presents this TED talk about working from the inside out. Starting at the core of a brand or company and working outward allows for the best results. While most take the opposite approach, those who are great have clear direction. He argues that, “people don’t buy what you do; they buy why you do it.”

Five competitive forces that shape strategy – Michael E. Porter is a professor at Harvard University who heads the Institute of Strategy and Competitiveness. In this video, he explains how strategy and competition in the marketplace work through five major forces:

• Threat of new entrants
• Bargaining power of suppliers
• Bargaining power of buyers
• Threat of substitute products or services
• Rivalry among existing competitors

This framework provides a holistic view of a market that helps companies hone in on what causes profitability. It will also make significant trends evident. Porter’s game changing approach to strategy has shaped modern business practice.

The Art of Purposeful Storytelling Peter Guber former chairman of SONY entertainment pictures and current CEO of Mandalay Entertainment Group discusses the role of story-telling in marketing. He explains that every action conveys narrative as well as the emotional qualities of a brand. Creating a positive emotion allows you to render an experience. Eliciting an emotional response makes a product or interaction memorable.

• The Business of Brands – Jon Miller and David Muir investigate the world of brands and brand personality. Addressing the increasing amount of attention that brands are receiving in business, Miller and Muir explain the true value of brands. Drawing heavily from
• Tribal Knowledge – John Moore’s experience within Starbucks’ marketing department provides the basis for this work that examines the secrets behind the company’s amazing success. Seth Godin praises the book saying, “Starbucks is more than a coffee shop… it’s every marketer’s favorite example. John Moore brews up a bookful of great marketing ideas, extra caffeine.” By focusing on creating a particular customer experience, the marketing team behind Starbucks created more than a brand; they created an environment.
• Brand Aid: An Easy Reference Guide to Solving Your Toughest Branding Problems and Strengthing Your Market Position – Brad VanAuken, former Director of Brand Management at Hallmark, explains how symbols capture particular emotions and ideas. Applying practical learned knowledge, VanAuken offers his wisdom in marketing.

Does the Internet and social media mean the death of advertising?

In some ways yes, but in most ways not really. Advertising that is based on telling consumers how to think or feel, is dead. Elaborating claims and statements, also dead. On the whole, it remains alive, but different. The Ganforhire blog claims:

“if you’re talking advertising that doesn’t patronise consumers, that educates without preaching, that engages and invites participation, that shows more than it tells, that is built on emotional triggers and real insights, that provokes change and makes a difference, then tells the honest-to-gosh truth about what a brand really stands for and not something that’s manufactured from thin air, then welcome to advertising as it could be, and will be.”

Why is it important to consider a brand in its context? In what ways is a brand like a book?

Due to the sheer number of brands in the marketplace, it is more useful to consider how each fits into the greater context. In what ways is a particular brand different from others, what does it add to the mix, what makes it special? Nicole Armstrong of More Than a Logo claims,

“To understand how a brand fits, or the role it plays, in the global market, we need to consider the brand’s central idea, or what I call the brand’s purpose. This provides context to what the brand is about, what makes it special, and how we should view it relative to other brands.”

Like books, brands are defined by their context. They are open to individual interpretation; different people will take different meaning from the same source. Opinions rely on life experiences and ways of thinking. Informed by a number of forces such as brand purpose, competing brands and marketplace history, context determines meaning.

Can brand loyalty and company purpose go too far?

Companies with especially strong brands expect brand loyalty from their employees. More than before, this is transforming into living one’s life according to brand policy. In a post on the Harvard Business Review blog, Michael Schrage argues,

“As authenticity, accountability, and social responsibility are increasingly celebrated as essential enterprise virtues, firms will increasingly push their people to live, not just use, their brands. The lines between workplace and lifestyle further dissolve.”

Being central tenets of a company, such values may be expected from employees at all times. At a time when authenticity is seen as an essential component, will companies look to their employees in order to appear legitimate and transparent?