Tag Archives: business brand

Golden Rules of Brand Value– Get Relevant, Get Focus, Get Edgy… or, Get Lost in Competitive Noise…

Brand value; everybody wants it; many struggle to achieve it… Few brands truly attain it… According to Seth Godin; brand’s value is merely the sum total of how much customers will pay extra, or how often they choose– the expectations, memories, stories, relationships of one brand over alternatives… And opposite of value is when an item or service has little or no perceived value… which means customers are not seeking it out and when they do, it’s merely one of the many choices… so, very likely, the cheapest offering will get the sale…  

An organization’s ‘brand value’ is promise of reputation, experience, quality… It encompasses everything about an organization, which is sometimes good, sometimes bad… and it all depends on the consumer’s perception. Brand value is progressive– it  gets multiplied every time a consumer chooses a specific brand over other brands… Hence, a clearly defined brand value gives consumers something to connect to, something to stay loyal to, something to stand-up for…

In the article Core Brand Values  by Julia Melymbrose writes: Value stand at the very core of a brand. Value is the center from which everything radiates, including; brand’s look (design), message (voice), relationships (customer service)… A brand is much more than a simple logo; a brand consists of two main ‘external’ aspects– Visual Identity, i.e., logo, colors, typography… Voice Identity, i.e., tagline, tone, styles…  Plus, a very important third ‘internal’ aspect: Brand Value... Brand value captures the three Ps of brand: Purpose, Proposition, Personality… 

For example; When you say brand value, you usually think about a monetary sum, e.g.; no-name pair of jeans could be worth $19, while Levi’s branded pair of jeans could be worth $119… Clearly there’s a difference in value based on the brand. A brand’s value is not simply how much people pay extra, e.g.; $100 more for pair of Levi’s over a unbranded pair, but also how often they choose the brand and the reason(s) they choose it… remember repeat business is tightly tied to value…

In the article How Much Are Brands Worth? by Paul Hague writes: A brand clearly has value to an organizations, because the value of the brand leverages the organization’s position in the market… Also the monetary value of a brand (worth in dollars) has become part of an intangible ‘asset’ known as ‘goodwill’, which is the extra worth of an organization over and above the value of physical assets… This means that many major brands are capitalized with monetary (dollar) value, and included as an ‘asset’ on the balance sheet of the organization…

According to ‘BrandZ Global Top 100 Most Valuable Brands 2016′ Report; the brand value is defined as the dollar amount that a brand contributes to the overall value of an organization… In 2016, the value of the world’s 100 biggest brands saw a high growth of 133%, totaling $3.4 trillion... According to the Report; these organizations tend to leverage ‘innovation’ as their key differentiator for brand success… and that meant improved consumer experiences, greater revenue.

In the article How to Calculate Brand Value by Laura Lake writes:  What is a brand really worth? There are various ways to approach the valuation of a brand but since the concept of value means something different for different people, it’s difficult to get a consensus on one  methodology. However, it’s probably fair to say that brand valuation is more of an art than a science… But it’s important for organizations to identify, develop value for their brand, as well as, a value proposition for the brand. There are various methods for valuing brands and here are a few:

  • Cost-Based Brand Valuation: This method of valuation uses the accumulation of costs that were incurred to build a brand since its inception, and it includes items such as; historical advertising expenses, promotion expenditures, cost of campaign creation, licensing, registration… While costs can be collected and used, the total dollar amount does not necessarily represent the current value of a brand… The brand value using this method may be equal to historical or replacement costs for a brand, but not necessarily its market value…
  • Market-Based Brand Valuation: This method of valuation uses a comparison of an organization’s brand to other similar brands that were valued… It uses comparable market transactions like a specific sale of a brand, comparable company transactions, and/or stock market quotations… It’s the market-based value that a brand can be sold for on the open market… The brand value is equal to market transaction price, bid, or offer for identical or reasonably similar brands, but not necessarily its replacement value…
  • Income-Based Brand Valuation: This method of valuation is often referred to as the ‘in-use’ approach. It considers the valuation of future net earnings that directly attribute to the brand to determine the value of the brand in its current use… The brand value is equal to present value of income, cash flows, or cost savings actually or hypothetically due to the asset…

Brands are psychology and science brought together as a promise of value… Brand value conveys– quality, credibility, experience… Many companies assigns a monetary value to the brand as an asset on the balance sheet, and it becomes part of the overall value (net worth) of the company… Branding is fundamental, it’s basic, it’s essential… and without a brand with value, it’s probably a good indication that the organization is valueless… According to Scott Goodson; brand value inspires millions of people to join communities… brand value activates passions that can change the fortunes of organizations…

The greatest brand value is built on a strong idea… an idea that an organization can hold on to, can commit to, and can deliver upon. But brand value needs to permeate the entire organization. When the entire organization is clear on the value of a brand and delivers on the promise of a brand– it fuels increased customer awareness, loyalty… and greater revenue growth.

New Rules of Branding in Business– Golden Rules: Get Edgy, Get Relevant… or, Get Lost in the Competitive Noise…

Branding is a promise of quality, reputation, value– It encompasses everything about a company– sometimes good, sometimes bad, depending on public’s perception… branding is what you do– not what you say… it’s a promise to deliver on– what’s wanted, desired, expected… branding is the sum-total of all customers ‘experiences’… branding is about shaping perceptions…

Branding is the idea that anytime, anyone hears the name of the business, product… they will know exactly what it stands for… branding, simply put, is a ‘promise’, which is derived from– who you are, who you want to be, who people perceive you to be…

According to Frank Strong; branding isn’t a company name… it’s not a tag line… it’s not a logo… it’s an expectation of an experience… The company tag line, logo, colors… only exist to call that experience to mind… The essence of a brand lies within its meaning– words have meaning but ‘actions’ create the brand… According to Beau Phillips; brand is the identity– it’s what people say about you… the value of the brand changes daily– nurture the brand, care for it… Live up to the brand promise every day…

According to Steven Donaldson and Michael Zinke; if you do anything, realize that the company (brand) has to stand out against the vast expanse of competitive– brands, options… Know and understand your competition, but don’t do what they are doing– be different, be relevant! You’ll get noticed… This is the mantra of the ultimate marketing guru, Seth Godin, who says– be a Purple Cow… The more truly unique (but still real) the brand is, the more interesting it will be…

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According to Jonathan Salem Baskin; Steve Jobs was a magician capable of casting a ‘reality distortion field’ on anyone in his presence… he ruined branding as we knew it… Jobs blew up the rules of branding simply because he didn’t recognize them… he didn’t follow the approved checklist… he knew that someone else’s success wouldn’t be his own, not because of his ego, but because it’s a fact that imitating others has never resulted in great successes…

Jobs’ insight was that you can never connect emotionally, meaningfully with customers by conceiving great marketing… no segmenting, strategy, technology, psychological… insight delivers a great brand… But, in fact, you must deliver a ‘great business’. The brand will be the words, emotions people use to narrate it… Jobs focused on the ‘cart’, yet even today, most marketers confuse it for the ‘horse’…

According to Drypen; branding takes place in minds of customers not in the real world. And whatever the mind perceives to be true is true. You may object but that’s the way it is: Perception is reality… No body likes Schizophrenic brands. That’s why the brand must be absolutely consistent in how it behaves, delivers… If it’s erratic, customers will be confused and will move to opposite camps… To build strong brands, businesses must provide a reason for its existence, and justify why it deserves to live…

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In the article Rules for Branding in New World by john k. grace writes: There is a basic shift in culture… a ‘new world’ is emerging in brand strategy for building relationships– with customers, employees, media, financial community, and other important audiences… Corporations have become places where employees are uncertain about messages from leadership– knowing that there is different agenda than their words often indicate…

In traditional times, two things can occur: First, brands tended to amplify and exaggerate the ‘brand promise’– in order to have their voices heard above the crowd. This amplification of claims are often filled with over-promise, which can become unbelievable to customer audiences… Second, brand marketers become insecure about their strategy and begin making random promises wishing that some will resonate with someone, somewhere…

These sit of the pants actions creates an atmosphere of uncertainty, wariness… For success in the ‘new world’, the rules for branding must be shaped in new ways: These new rules are ‘filters’ used to create, evaluate… brand communications, behaviors…  Here are a few rules for consideration:

  • Rule 1: Value must be communicated… Today, customers have much larger magnifying glass to evaluate price/value comparisons and they will find it hard to justify purchase without a very strong reason– why. So value becomes a very important filter…
  • Rule 2: Functional performance is more important than ‘benefits’... Each are looking for more communication about the functional value that brands bring to them…
  • Rule 3: Transparency, honesty are mandatory. There are two aspects to transparency – being transparent, communicating transparency… Questions; a) is the company/brand being transparent? b) how is the transparency communicated? This is a new filter for many companies…
  • Rule 4: Messaging must be simple, clear… brands must shed multiple claims, over-promises, implied benefits… and bring a new simplicity and clarity to messaging. It means creating new filters to evaluate messaging, and developing communications strategies to isolate what is important and what can be shed…
  • Rule 5: Express confidence, optimism through identity. An identity is visual expression of a brand, it should reflect a company’s core beliefs and strengths, and also signal an optimistic and positive attitude…
  • Rule 6: Communities are critical to brand acceptance. The evolving shift from top-down to bottoms-up brand influence is being further accelerated. ‘Communities’ have become the place where we can find– information, validation, security, new types of partnerships… social networks are part of larger concept of the integration for specific audiences to– bond, evaluate, determine, share…
  • Rule 7: Customer service can be a brand-defining attribute. Successful brands embrace the importance of this interaction… think about building world-class customer service rather than adequate, competitive levels of service…

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In the article Building Brands from Inside by Michael Dunn and Scott Davis write: There’s a trend in the making: Companies across the board are beginning to take a broader view of ‘branding’ as it shifts from its traditional role, as part of the marketing function, to play an integral part in the overall business strategy. To fully integrate brand strategy throughout the organization, companies must take a hard look at what the brand stands for and put internal structures in place to deliver on ‘brand promise’…

Essentially, this means moving the brand’s role, influence… well beyond the marketing department so it becomes an integral part of  company’s way of doing business… Total alignment between business and brand strategy is a crucial starting point… Think about it: Strategies about customers, distribution, pricing, communications… are crucial links between business and brand strategy. Business strategy cannot be developed in a vacuum; neither can brand strategy. The connection between them must be aligned, strengthened…

In today’s increasingly competitive environment, businesses need to find a way to stand-out from the rest of the pack… One sure way is to take a hard look at the brand, what it stands for, and then make sure that the structure is in place to deliver-on that ‘promise’– across entire organization… This realignment pays-off, big time, by creating a stronger brand but, more important, a stronger business…

In the article New Rules for Branding by kordell writes: The biggest enemy of business these days is being ‘average’… With mass customization, free information, and a tight economy, you must drive the branding image to be ‘exceptional’… Here are a few new rules for exceptional branding are:

  • It must have a plot or a storyline: Think Disney… Chipotle has it’s brown bags with stories on them… Harley is about terrorizing small towns…
  • It must be unique to stand out: Unless you have a BHAC (Big Hairy Audacious Concept) you have– beige, average, pedestrian…
  • It must fill a need or create a new mind-set for the customer:  Columbus fought the flat world with a round world idea… Dyson killed the vacuum bag…
  • Rabid fans must be able to ‘join’: Think Blue Man Group…  These fans will experience the brand again, again… and ‘tell others about it’…
  • Repeatable: There are Harley fans who motorcycle between locations just to get a ‘local’ Harley shirt… Another way to see this consumable– or– such a great experience that you just-want-to-do-it-again!
  • Once it’s in place it’s either re-created, destroyed, rebuilt (isn’t that the same thing?):  Just when the McMuffin is copied by everyone else, you have to recreate it in a new format/recipe…

In the article New Rules of Branding by Simon Williams writes: A few simple rules for the new age branding; Brands that influence ‘culture’ sell more; culture is the new catalyst for growth… A brand with no point of view has no point; full-flavor branding is in… vanilla is out… Today’s consumer is leading from the front; it’s a smart generation… Customize wherever, whenever you can; customization is tomorrow’s killer whale. Forget transaction, just give me an experience; the mandate is simple: Wow the customer every day, every way...

Deliver clarity at point of purchase; be obsessive about value… You are only as good as the weakest link; know where you’re vulnerable… Social responsibility is no longer an option; know the cause, prepare your contribution… Pulse, pace, passion… really make a difference… Innovation is the new boardroom favorite…

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Branding is the core of any business… According to Ananth; Be very clear on what you tend to achieve from your ‘branding’ campaign… Clearly define ‘goals’: What must the  ‘brand’ achieve, across which audience… Websites don’t define a branding strategy… Success of a branding campaign depends on the sincerity with which your content reaches across a larger audience, regularly, with clear intention to add real-value to the end users.

Branding is not one time process, its a constant effort to make a positive difference… It’s solution to problems– do it with a ‘face’– ‘humanize’ the brand… According to Kevin Lane Keller; a strong brand is a promise to customers and a means to set expectations and reduce risk… the power of a brand resides in the minds of its customers and it could go away very quickly…

A strong brand is also more than consumer-facing… it gives direction and purpose to its employees– strong brand is one of a firm’s most valuable intangible assets… According to Ashley I; churn out boring, repetitive stuff… and the brand will suffer… Modern brands must allow for– leeway, fun, surprise, playful… even flirtation… A contemporary brand must take leaps of faith, abandon self-obsessions, be flexible, embrace risk … Without such grounding, a brand loses what it’s supposed to be in the first place; a shape-shifter…

According to Jakk; perfecting a branding strategy is more than just having– a logo, attractive slogans… Today, enthusiasts play by a fresh set of guidelines…The fresh rules for business branding are now focused on engagement, interaction, less on presentation… Defining the brand is more like a journey of business discovery… in today’s highly competitive marketplace, a strong brand is really all about relationships, trust, value…