| 
One of the most interesting problems in branding is the word “branding” itself. The word has different definitions and relevance depending on the person using it and their context. A designer with a strong consumer orientation will rightly have a different perspective than a senior manager of a large business-to-business concern. Yet, “branding” may be no less relevant to either of them.
The other factor is the devotion with which one follows the “branding” debate. To many, the word still holds the old definition of a name and logo, which is certainly still valid. On the other hand, many that work with “branding” have started using it to mean a much more holistic view encompassing diverse marketing issues as well as corporate culture and even operational performance. I think the only solution is to expect little of the word “branding” and to instead talk about companies, products and product ranges using standard business terms. If we are talking about naming and visual identity, let’s talk about that. If we are talking about differentiation, let’s talk about that. And, the same goes for operational performance or functional product attributes and benefits.
The risk here is that I use the word “brand” in a way that won’t mean the same thing to your readers. Accepting that risk, I would say that brands in themselves make people do very little. However, good companies and products can have dramatic impacts. A good name and well-executed communication platform will always be supported or limited by the truth and relevance behind it. Thus, brands are like signposts, which rarely are as interesting or relevant as the destination itself when you are making an effort to get somewhere.
The leadership transition you refer to is that today companies and products can have excellent performance, and excellent reputations, but unless they actively refresh their signposts and set new ones in the right locations, they will not grow as well as those that do. Companies today need to put more effort into staking their territory, guiding people and differentiating themselves from alternatives. Unless they make this their number one priority, they will struggle to compete for customers and talented employees. That said, all the signposts in the world will not make a dull or static destination interesting to those who find it. For the companies I have experience with, industry leadership has meant turning their differentiation into a driver of their entire value chain. I call this “strategic differentiation.”
Volvo is a good example that everyone has a sense for. Volvo’s strategic differentiation originates from their genuine belief in the value of human life described by their founders in 1939. The three-point seatbelt, the child car seat, the wide-angle rear-view mirror and many other safety systems were are all invented by Volvo. Volvo dealerships know how to make families comfortable and Volvo communications appeal to those that put safety high on their list of buying criteria. However, although this is a good example, a company does not need a 66 year history to achieve strategic differentiation nor is the importance of it limited to consumer products.
Industry leaders are companies that have excellent performance, but have also decided to focus on building a genuine, focused position in the minds of their own people and their market. They try to reinforce their differentiation with every decision they make. Their people, from their R&D and production to sales and service, understand how they contribute to strengthening their differentiation. And, participants in their value chain, from suppliers and distribution partners to endusers of their products, recognize the relevance of the company’s position.
This can also be related back to the change in industry leadership you asked about. The more companies rely on “best practices” to improve their performance, the more similar they become. Over the last twenty years, this has probably had the greatest influence on the importance of achieving strategic differentiation. Strategic differentiation attracts the right customers to a company and makes competitors move out of their way, allowing industry leaders to have greater control of pricing and volume – the real purpose of this whole discussion.
Michael Sherain,
Brand Management Consultant, Quadric |
en.jpg)
