Demystifying “Branding”—A Long-Term Investment
The world of business can be filled with jargon, and "branding" can sound like a mysterious force wielded by marketing gurus. As an “ice-breaker” in client kick-offs for branding projects, I like to quote Jeff Bezos: “A brand is what other people say about you when you are not in the room.” Nope, a brand is not a logo… although a logo is often the “flag” that represents the brand. But that’s a topic for another day.
If you dig a little deeper into Bezos’ notion, you can clearly make the connection between the word “brand” and other perhaps more familiar terms that business leaders might have a bit more of that worn-in comfort for—like, “goodwill” and “culture”. In truth, branding represents all of the above: reputation; goodwill; and culture. But it’s probably the clearest and simplest to think of your brand as your company's reputation. As Bezos’ implies, it’s the image that pops into someone's head when they hear your name. This reputation is built over time, through every interaction a customer (or a potential customer) has with your business. It encompasses your company culture, values, the quality of your products or services, and the overall customer experience. It’s a promise that meets an expectation.
Of course, branding and marketing are often lumped together. But they are very different, and each serves a distinct purpose. Here are the key differences between branding and marketing:
Branding is an investment. It's like building a strong foundation for your house. You invest in the materials and construction because you know it will support the structure for years to come. Branding efforts aim to create long-term value and customer loyalty. It's something you see reflected on your balance sheet as an asset, just like a building. It’s all about the big picture and the long game.
Marketing, on the other hand, is more like paying the rent (or maybe the utilities). It's the tactical execution, the activities you use to generate sales and achieve short-term goals. These activities, like advertising campaigns or social media promotions, are recorded as expenses on your general ledger. Marketing is all about response. While marketing is crucial, it's not a long-term investment in the same way branding is. Think of it as the furniture and decorations in your house – they can be changed or updated without affecting the foundation.
Here's the good news: Strong branding makes your marketing efforts more effective. Strong branding also does most of the heavy lifting. Think of how many iPhones have been sold purely on the reputation the Apple brand has maintained over the years. When your brand has a clear and compelling story—one that is authentic to the realities of whom you are trying to reach or convince—your marketing messages will resonate with customers on a deeper and more effective level. They'll be more likely to remember your brand, trust your company, and choose you over competitors.
So, the next time you hear "branding," think of it as building a strong, valuable, asset for your business. It's something that leadership (right up to the C-suite) should be invested in, because a well-established brand is one of the most important assets a company can have. When done right, it thrives on the balance sheet. It’s not an expense that may be the first to get cut, but a foundation for long-term success.
