Building brands that last

(This article first appeared in The Marketing Brief 2021-22, the annual marketing magazine at FMS)

It’s never been easier to launch a brand.?

Technology has enabled anyone to become a creator. From infrastructure, manufacturing, logistics, payments, distribution, promotion, analytics… all the resources required to build a business or a personal brand are easily available online at ever-lowering prices. Venture capital and investors are constantly on the lookout to fund the next big idea.

Conversely, it’s never been more difficult to build a brand that lasts.??

Established businesses and celebrities struggle to stay relevant and don’t command the same adulation like they once did. Pick any category and the most happening brands are not the established ones but those that have launched in the last few years. Yet we also see many new brands come and go like shooting stars. Many influencers and startups are able to deliver a few hits, attract a large audience and make a huge impact upon launch - but vanish just as quickly.?

Marketing is misunderstood or underestimated.?

We generally think of marketing as the set of actions needed to promote or sell something (or someone). The objectives of marketing are typically to increase awareness, trials, sales or brand perception.? All of which is true. But there’s more to marketing than that.

Never forget the need.

Marketing starts with identifying the needs (stated and latent) of the potential customer. Every startup or new product is essentially solving a customer need or marketing problem. Which is why it’s crucial for a new business to get product-market-fit (PMF) to succeed.?

However brands become risk averse as they succeed, focusing more on protecting what they have built. They make incremental changes to satisfy customers but miss out on the larger opportunities that can take them to the next level. Marketing becomes a battle to promote your brand on the most happening channels, platforms, celebrities or influencers, to project a trendy and innovative image. That may help brands to drive growth in the short-term, but they eventually get disrupted.

Brands that leverage evolving cultural insights and technological trends, are more likely to build products that solve customer needs in new, innovative ways.?

The whole truth, nothing but the truth.

Brands that are able to fulfill your needs over time, build trust. With rampant misinformation and disinformation around us, trust is a brand’s most valuable currency.

However we see brands exploiting their hard earned trust to mis-sell or mislead their customers. Brands resort to shortcuts in their products and half-truths in their communications to gloss over their shortcomings. This no longer works in a world where it takes a few clicks to discover the truth. And in a world where consumers can easily become creators and build a competing brand that’s more trustworthy than yours.

Brands that are honest in the way they build their products and communicate to consumers, are more likely to keep growing their trust reserves over time.

Do what’s right, even if it hurts you (a lot).

Brands that do not compromise on their values, are able to win customers for life. This is probably the only sure shot way for consumers to use your products, even if they are not the best in the market.

In recent times, we see more and more brands claiming a higher purpose. They invest a lot of time, effort and money in trying to build a stronger emotional bond with their audience. But the true test of a brand’s character comes at the times when they need to take a stand. When staying true to your values may result in consumer backlash and loss of sales. But more often than not, brands back down - taking down their ad, firing an employee or apologizing when they are not at fault. What they end up losing is far more valuable - the long-term loyalty of the people who believed in them.

Brands that live up to their values in both the easy and hard times, are more likely to earn the respect and die-hard loyalty of their customers.

Marketing is a brand’s conscience.

We assume that a brand only needs to appeal and satisfy the needs of its target consumer. But most? brands have to manage multiple stakeholders with differing interests: investors, distributors, lobby groups, Governments, activists, employees etc. Every brand is under pressure to sell (more) and grow fast(er) to enjoy the continued support of all stakeholders. And they need to do this in an increasingly polarized world where it’s no longer easy to distinguish between what’s (or who’s)? right and wrong. As a result, most brands play safe, resort to shortcuts and compromise on their values. Great for the short-term, disastrous for the long-term. Having said that, it’s not possible or practical to build a brand that’s always long-term focused, always ‘honest’, always taking a stand. That too is a recipe for disaster.?

Brands are like humans - they are not meant to be perfect. Like humans, brands need to have a conscience as well. Marketing is best suited to act as a brand’s conscience.

The onus is on us to balance the business’ need to grow at any cost and the brand’s need to stay true to the consumer and its values. Perhaps then, we can hope to see more brands that keep growing while also winning the hearts of their consumers over time. Brands that last.

#branding #brandequity #brandstrategymatters #marketing #startups