Deciding on the Right Brand Strategy

Brands are comprised of three components: symbols, attributes and associations. So much attention is focused on symbols--the logo, color and design. I get a bit irritated when someone tells me that their organization has a new brand and then proceeds to show me their new business cards with a new logo and colors. "Anything new about what the company believes in or any engagement with employees in a different brand promise"? I often ask. The answer is typically no, or a blank stare.

The real importance of brands is in their attributes and associations. We judge brands by whether or not the attributes meet our needs. We look at the associations brands have--whether other people "like us" are wearing or using the brand, and who the brand associates with. It is through engagement that brands become powerful, not through art and design. The symbols are there to highlight the attributes of the brand--they are not the brand.


Another mistake that companies make is that they think that the brand is differentiated with a cool name or by making bold claims of difference through marketing communications. You cannot spin a brand. It either has or does not have the desired attributes in the eyes of target customers. It is here that brands get their perceived value--why someone is willing to pay more for the brand vs. another product.

Consumer companies use what is called Unique Selling Proposition (USP) to differentiate what might otherwise be similar products. Toothpaste might all be the same, but some are whiteners, others have mouthwash, some have tarter control, etc. These subtle differences are designed to attract to the product those for whom these USP are important. They are not attracted to the ingredients, but rather to what the differentiated ingredients do for them to reduce risk of bad breath or yellow teeth. The USPs segment on the basis of psychological needs rather than functional ones.

For non-consumer products companies, differentiation can be found in what can be called Value Proposition. That is, the rationale for buying the product over another in the same competitive set. But, companies often mistake why someone buys the product. I was talking with a company that is trying to sell foam mattresses to hospitals. What's the value? They said it was weight, comfort, etc. The real value is that it eliminates bed sores, possibility of bed bugs, etc. Let's understand, though, that the marketplace of non-consumer products is very different from that of consumer products. That is, the needs of the customer are different, the competitive marketplace is different, and the sales engagement is different. Despite these differences, many non-consumer products companies follow consumer products principles in their branding activities. How can you make decisions about your brand strategies?

The best way is to look at the product from the outside-in, the way the customer sees it and to understand the needs and interests that determine the buying decision. I would suggest that there are two basic variables driving buying decisions: 1) the amount of fear, uncertainty and doubt (FUD) that the customer has in making the decision to buy; and 2) the complexity of the buying decision. Consumer products elicit little FUD and there is little complexity in the buying decision. If I want a Coke but the restaurant only sells Pepsi, there is little FUD or complexity. In contrast, if I am the CIO of a company buying 20,000 desktop computers for my company, there is a great deal of FUD and complexity. I could jeopardize or lose my job if my decision is wrong, and the decision may need the input of others who are more expert that I am. It helps for a company to draw a 2x2 matrix, with one axis being FUD and the other complexity, and to determine where their products and company value proposition lie. The more FUD and complexity, the greater the interest in corporate brand. The customer wants to know that the company behind the product is viable and strong. Consumer products have less need for corporate brand and focus on product brands. The same matrix can be used to determine the right marketing communications mix to support the branding decisions. Consumer products can be driven by advertising and marketing public relations. Non-consumer products brands need strong relationship management since they often build their brands at the point of sales.