5 Myths of Branding
Many organizations fail to recognize the power of brand in defining and driving business growth. Here, we uncover some of the most common branding myths.
“I have a logo, therefore I have a brand.”
A brand is much more than a logo. A logo is a graphic representation of a business in its simplest form through a mark or icon. It identifies ownership and is one of the primary means by which customers recall a brand. A brand however, is much more complex. A brand is a company’s unique expression of how it behaves and interacts with consumers, a combination of everything it owns, produces and portrays, all of which are a reflection of the corporate values, culture and vision and culminate into an image perceived by consumers.
Branding is the stuff of emotion and whimsy, there’s no real substance to it
It’s true that brands appeal to the emotions and most brands evoke a specific feeling or attitude in the hearts and minds of consumers. However we are emotional beings and are often driven to action by a combination of emotional and functional needs. By pressing emotional buttons, a strong brand can act as a short cut in consumer decision making. Ignoring the power of brands to elicit emotion and connect with customers on an instinctive level is a sure miss at the opportunity to create the strong bonds that lead to brand loyalty and advocacy.
Brands are only for consumer products.
Traditionally, brands have been associated most often with consumer products. But today, a developed, well-managed brand is no longer a nice-to-have for B2B and service-based organizations. It is an absolute necessity, particularly to compete on a global stage. In fact, without a tangible consumer product to see, taste or touch, it’s even more critical to have a brand that conveys a strong, cohesive image, one that is associated with trust, credibility and quality.
Brands compete on price.
Sometimes, but not always, and certainly not as a best practice. Particularly in a commodity-driven environment, finding and maintaining a point of difference beyond price is crucial. A strong brand will encourage brand preference not with a lower price point, but with the intangible benefits a consumer gets when using a brand that makes them appear trendy, smart or fashionable by association.
There’s little to no ROI on branding.
Companies that invest little in their brand fail to realize that the brand sits at the heart of their business strategy and is one of their most valuable business assets. These same companies often treat branding as an output of marketing, when in fact, the brand should guide the behavior that defines the business and culture and be the driver all external communications.
While it may be more difficult to draw a direct line between sales revenue and an investment in a brand campaign than to a product promotion code, brand brings huge value to a company in many ways. Brand is fundamental in increasing awareness, shaping opinion, driving preference and engendering loyalty, all of which ensure long-term business success.
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