What is a brand?

Summary

A brand is much more than just a logo or product; it's the emotional connection people have with your company. A strong brand is focused, standing for one key thing, like Volvo's commitment to safety or Harley-Davidson's representation of freedom. Brands are experienced, not just seen, and companies like Starbucks have mastered creating a community around their product. A brand's value is significant, and it requires constant care—being different, vigilant, and relevant. Most importantly, customers own your brand, and their feedback helps ensure its success. Building and nurturing trust is crucial for maintaining a powerful, lasting brand.

Takeaways

• 😀 A brand is the emotional and rational perception people have about your product, service, or organization.
• 😀 A strong brand can recover from mistakes, while a weak brand struggles to regain trust after errors.
• 😀 Focus is key to building a strong brand; successful brands stand for one thing clearly and consistently.
• 😀 Volvo's brand is defined by 'safety,' and Harley-Davidson's brand is defined by 'freedom,' illustrating the power of a single, strong value.
• 😀 Brands like Starbucks offer an experience that connects emotionally with customers and creates a community of loyal brand ambassadors.
• 😀 A brand can have significant monetary value—up to 61% of Coca-Cola’s value comes from its brand.
• 😀 Protect and nurture your brand by ensuring it stands out, remains vigilant, and stays relevant to changing market conditions.
• 😀 Brands are now owned by the people, as customers have more influence through feedback and direct engagement.
• 😀 Companies must be vigilant about not letting their brand engage in activities that could harm its reputation, as with Gateway Computers.
• 😀 Great brands are experiential, meaning that their customers do more than just see or hear about them—they actively engage with them in unique ways.
• 😀 To maintain a healthy brand, be different, vigilant, relevant, and always listen to and earn the trust of your customers.

Q & A

What is the primary definition of a brand?

A brand is the emotional connection people have with a product, service, or organization. It's not just about rational qualities but primarily the feelings it evokes in consumers.

How does the emotional aspect of a brand influence its success?

Emotions play a significant role in a brand's success. People are more likely to forgive a strong brand for mistakes if they feel emotionally connected to it, as seen with New Coke, whereas a weak brand struggles to recover from mistakes.

Why is focus crucial for a strong brand?

Focus is crucial because great brands stand for one clear thing, not multiple things. This helps consumers easily understand what the brand represents. For example, Volvo has focused on 'safety' for decades, which has helped define its brand.

Can you provide an example of a brand that focuses on an experience rather than just a product?

Starbucks is a great example. Starbucks differentiates itself by offering a unique experience and building a community of coffee lovers, rather than just serving coffee. They focus on serving people, not just products.

What is the importance of relevance in maintaining a strong brand?

Relevance ensures that a brand adapts to changing market conditions and consumer needs. This keeps the brand valuable over time, as failing to remain relevant can lead to a loss of consumer interest.

How do brands create value beyond just their products or services?

Brands create value through their emotional impact, experiences, and the unique identity they cultivate. For instance, Harley-Davidson stands for freedom, not just a more powerful engine, which taps into deeper consumer emotions.

What role do customers play in owning a brand?

In today's world, customers play a crucial role in shaping a brand. Through feedback and engagement, they influence how a brand is perceived. Brands are no longer controlled solely by the company; they are co-created with customers.

What percentage of Coca-Cola's value comes from its brand according to Interbrand?

According to Interbrand, about 61% of Coca-Cola's total company value is attributed to its brand.

What key actions should companies take to maintain a healthy brand?

Companies should focus on being different, vigilant, and relevant. These actions ensure that the brand stands out, avoids mistakes, and adapts to market changes to maintain its strength.

What is the relationship between a brand's logo and its true value?

A brand's logo is just a visual representation. The true value of a brand lies in the emotional connection and experiences it provides, not just its appearance or design.