There are seven main factors of a successful brand.
There is plenty of evidence to prove that customers will pay a premium for a good brand and remain loyal to that brand. Brand identity and the quality associated with it secures that relationship.
This brand equity also adds non-tangible value to the business.
But, how does one build and maintain brand equity?
Quality
Have you ever purchased a lousy product or service and gone back for more from the same vendor?
Of course you haven’t. Quality is a vital ingredient of a good brand and the surest way to build customer loyalty. For the sake of positive brand identity, the core benefits of your product or service must be articulated easily and consistently.
Have you ever purchased a lousy product or service and gone back for more from the same vendor?
Of course you haven’t. Quality is a vital ingredient of a good brand and the surest way to build customer loyalty. For the sake of positive brand identity, the core benefits of your product or service must be articulated easily and consistently.
Market Positioning
Did you know that, for many years, the lowest-rated car brand was the most popular in Pittsburgh? Now, why is that?
It has nothing to do with Pittsburghers and everything to do with positioning the product to the right audience in the right language. A blue-collar product was well-targeted to the Pittsburgh market. Consistent brand identity was forged and loyalty followed.
With most consumers, perception is everything. What matters is the position a brand occupies in the minds of the consumers. Strong brands have a clear, often unique position in the target market.
In addition to an identity that clearly distinguishes the brand from competitors, successful positioning usually requires a combination of:
Did you know that, for many years, the lowest-rated car brand was the most popular in Pittsburgh? Now, why is that?
It has nothing to do with Pittsburghers and everything to do with positioning the product to the right audience in the right language. A blue-collar product was well-targeted to the Pittsburgh market. Consistent brand identity was forged and loyalty followed.
With most consumers, perception is everything. What matters is the position a brand occupies in the minds of the consumers. Strong brands have a clear, often unique position in the target market.
In addition to an identity that clearly distinguishes the brand from competitors, successful positioning usually requires a combination of:
- Brand name;
- Service standards;
- Product guarantees;
- Testimonials;
- Packaging, and more.
Flexibility
If you think you’ve eaten at Kentucky Fried Chicken in the last five years, you are mistaken. You ate at KFC.
Sometimes consumers’ tastes change or a brand becomes "tired." A good brand should be flexible enough to adapt to evolving markets without losing its equity. Kentucky Fried Chicken identified market trends away from fried foods, successfully retooled their name and modified their menu to reflect the market dynamic. Today, KFC still uses familiar icons, like Colonel Sanders, in their promotions to preserve their core identity.
If you think you’ve eaten at Kentucky Fried Chicken in the last five years, you are mistaken. You ate at KFC.
Sometimes consumers’ tastes change or a brand becomes "tired." A good brand should be flexible enough to adapt to evolving markets without losing its equity. Kentucky Fried Chicken identified market trends away from fried foods, successfully retooled their name and modified their menu to reflect the market dynamic. Today, KFC still uses familiar icons, like Colonel Sanders, in their promotions to preserve their core identity.
First-mover Advantage
Do you have a Xerox machine in your office?
Is that machine really from Xerox?
A wealth of evidence shows that the first successful brand in a market creates a clear positioning in the minds of target customers before the competition enters the market. These first movers typically define the market that others will follow. However, without proper brand management, they run the risk of “commoditizing” their name and diluting their brand.
Yes, copy-cats will also enter the market and change the competitive dynamic. Flexibility and aggression within the marketplace, product diversification and good brand management can help keep the brand from becoming “Xeroxed,” “Kleenexed” or “Band-Aided.”
Do you have a Xerox machine in your office?
Is that machine really from Xerox?
A wealth of evidence shows that the first successful brand in a market creates a clear positioning in the minds of target customers before the competition enters the market. These first movers typically define the market that others will follow. However, without proper brand management, they run the risk of “commoditizing” their name and diluting their brand.
Yes, copy-cats will also enter the market and change the competitive dynamic. Flexibility and aggression within the marketplace, product diversification and good brand management can help keep the brand from becoming “Xeroxed,” “Kleenexed” or “Band-Aided.”
Internal Marketing
How many times have you gone to a restaurant where your server didn’t know anything about the menu?
Successful brands are marketed “internally” as well as externally. The entire organization should understand the value propositions and positioning so they can talk to the “company line.” You must have buy-in at all levels of the organization. If not, your employees will visibly be going through the motions, which will compromise the brand. This staff training is especially important in service businesses.
How many times have you gone to a restaurant where your server didn’t know anything about the menu?
Successful brands are marketed “internally” as well as externally. The entire organization should understand the value propositions and positioning so they can talk to the “company line.” You must have buy-in at all levels of the organization. If not, your employees will visibly be going through the motions, which will compromise the brand. This staff training is especially important in service businesses.
Communications
Why does McDonald’s do so much advertising?
We know what they sell and can find one virtually anywhere.
Perception is critical to market positioning, with communications playing a key role in building and maintaining a successful brand. You have to build and retain a clearly defined position in the minds of your target audience. The right language to the right audience.
Initially, McDonald’s challenge was to build awareness, then to develop the brand personality and reinforce the perception. Today, they use every promotional tool to develop and sustain customer perceptions. If they stopped tomorrow, they would risk being conspicuous in their absence.
Companies like McDonald’s have mastered brand management, which is a key part of any product strategy, particularly those operating in highly competitive consumer markets.
Why does McDonald’s do so much advertising?
We know what they sell and can find one virtually anywhere.
Perception is critical to market positioning, with communications playing a key role in building and maintaining a successful brand. You have to build and retain a clearly defined position in the minds of your target audience. The right language to the right audience.
Initially, McDonald’s challenge was to build awareness, then to develop the brand personality and reinforce the perception. Today, they use every promotional tool to develop and sustain customer perceptions. If they stopped tomorrow, they would risk being conspicuous in their absence.
Companies like McDonald’s have mastered brand management, which is a key part of any product strategy, particularly those operating in highly competitive consumer markets.
Long-term Perspective
It’s nearly impossible to become a millionaire by just saving money.
Just like building one’s personal wealth, successful brand building requires long-term commitment and the willingness to take chances. Building customer awareness, communicating the brand’s message and creating customer loyalty takes time. This means that management must avoid the trappings of risk aversion and appropriately “invest” in a brand, perhaps at the expense of short-term profitability. The cost of bringing a product to market must be properly funded and part of any initial budget.
It’s nearly impossible to become a millionaire by just saving money.
Just like building one’s personal wealth, successful brand building requires long-term commitment and the willingness to take chances. Building customer awareness, communicating the brand’s message and creating customer loyalty takes time. This means that management must avoid the trappings of risk aversion and appropriately “invest” in a brand, perhaps at the expense of short-term profitability. The cost of bringing a product to market must be properly funded and part of any initial budget.
Portions borrowed from Professor David Jobber of the Bradford University School of Management.
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