The Real Value of a Brand

From my experience in marketing, companies often invest an exorbitant amount of time and resources on their logos, akin to YouTubers obsessing over their appearance.?

Yet, they miss the mark on what truly defines a brand. A brand isn’t merely a logo or a tagline; it’s a promise, a distinct experience that fosters trust and loyalty. Let’s dive into the essence of branding and why it’s critical for businesses to focus on substance over superficial symbols.

Take Ferrari as an example. If Ferrari opened a restaurant, we could easily envision what it would be like.?

However, if Hyundai ventured into hotels, we’d be clueless about what to expect. This disparity highlights a fundamental truth: Ferrari has a brand, while Hyundai has a logo.?

The core of branding lies in making a promise to your customers. When this promise is clear and distinct, you create expectations and trust. Customers are willing to pay a premium for the assurance that comes with a strong brand. Conversely, if your brand is indistinguishable from the competition, you end up competing on price alone, which erodes value.

Consider the hotel industry. Online booking sites make it easy to sort by price. Why pay extra for a hotel that offers nothing unique? This commoditisation is a pitfall that many businesses fall into. The value of a brand, therefore, is reflected in how much more a customer is willing to pay for your product or service over a substitute.

Brands like Nike understand the power of standing for something. When Nike endorsed Michael Jordan, it wasn’t just a marketing move; it was a bold statement that resonated with their core audience. This alignment with their brand identity reinforced their market position, proving that they stand for something meaningful.

On the other hand, generic brands that focus on logos and slogans without substance fail to create lasting connections with their audience. Effective branding is about delivering work that matters to people who care. It’s about finding your smallest viable market and serving them exceptionally well.

Successful brands invest in the experience they offer. Boutique hotels, for example, charge a premium not for more amenities, but for a unique, hip experience that appeals to a specific audience. They understand that their customers value the ambiance and vibe over the traditional measures of hotel quality.

In essence, branding is about being distinctive and meaningful. It’s about making an impact that goes beyond superficial elements. By focusing on creating a promise and delivering consistently on it, businesses can cultivate loyal customers who see the value in paying a little extra for the experience and assurance that comes with a strong brand.

Much love marketers, see you soon!

Dean