Spring 2005: by Brent Banda

Branding Your Business: More Than Just a Name

Branding is a term that all business owners come across but few truly understand. Branding is similar to branding on a ranch. You leave your mark on your customer's mind.

A brand can be defined as a name, term, symbol or special design (or some combination of these elements) that is intended to identify a company or its product. The most effective way to accurately describe the strength of a brand is by the feeling you get when you see or hear all components of the company's image truly represented within the brand. For example, McDonald's has established a strong brand identity by evoking feelings representative of a fun and cost-effective family dining experience. The phrases 'Two all beef patties special sauce lettuce cheese pickles onions on a sesame seed bun' and 'I'm loving it!' have lasting staying power as they invoke similar feelings of what McDonald's represents.

Customers purchase one brand over another for one main reason... the perceived quality of the product or service meets the customer's expectations for the price charged.

A strategy based on developing a strong brand identity is an effective way to stand out from competitors. If you do your job right, potential customers will know what you have to offer and think of you when the time comes to make a purchase. Take Kleenex for an example. The actual term for the product is a facial tissue, however everyone relates this soft, strong, high-quality product to the brand name. By focusing on creating a successful brand a company starts to create equity, which generates value to the customer that can emerge either as a price premium or as enhanced brand loyalty. If you are still sceptical of the power of branding, ask yourself whether you use facial tissues or Kleenex.

Defining Your Brand
Branding is the action of portraying the image you believe will attract your target market. When defining what your brand should be, consider why your customers purchase from you. This is much more complex than it first appears. The trick is to clearly define what is important to your customers and then build your competitive advantage around meeting those needs more effectively than the competition. Once you have defined what your competitive advantage is, it should then be communicated (message and tone) and reinforced in all exposure with the target market. For example, McDonald's communicates its fun family atmosphere and good, fast, affordable food in everything from advertisements and layout of the store to the company's pricing strategy.

How Do I Build A Strong Brand?
A brand is built through a customer's personal experience with the company or product, through company's advertising and public relations and by how many times the customer is exposed to the product or logo. When branding a company, product or service, you must consider all elements that will impact the customer's buying experience. This can include everything from the graphic images of your logo and in advertisements, to word of mouth or even where you choose to sell your products. For instance, imagine if BMW was to show a 16-year-old driver with green hair and a nose ring in a TV ad. This would not fit with your image of a typical BMW owner, and could make current BMW owners a bit concerned that their status symbol is in jeopardy. BMW targets high-income adults, and must reinforce this with every experience their customers have with the company.

Although it can take years to successfully build a brand, it will only take fifteen seconds to be destroyed. Once the brand is established, it is then sustained through advertising. This type of advertising is usually broad, image-based advertising. Take Wal-Mart, who advertises 'everyday low prices' instead of weekly specials. If Wal-Mart suddenly started to sell high-end premium priced furniture, its loyal customers would become confused and perhaps think that everyday low prices may not apply to everything in the store.

What Makes One Brand Superior to Another?
Customers purchase one brand over another for one main reason... the perceived quality of the product or service meets the customer's expectations for the price charged. In order to create a lasting brand name, you must ensure that all elements of your brand reflect the reason your customers buy from you. Marketing is not rocket science, but it does take some focused thought to promote your company effectively. A focused branding strategy is one effective component of a comprehensive marketing plan.

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