Month: January 2006

Branding Is Strategy

Few independent business owners have the time and resources to dedicate to the level of detail big corporates do in their branding. But there are plenty of things the big companies do well that small-business owners should consider as they strive for long-term survival:

1. Establish a strong brand position

Defining a market position is the most critical step in developing a brand. You must know who you are before you can get to where you want to be. Brand positioning characterizes the way a company wants its target audience to think about its brand. It is the core message you want to deliver in every medium, and it creates clarity, consistency and continuity in the way the organization speaks to the market. Essential to an effective positioning statement is the concept of narrowing rather than broadening a company’s focus. The secret to a good brand-positioning strategy is a clear message that talks about your strengths and explains to customers why your product is the best in your category or industry.

2. Use market research to create a strategic plan

When most of us think of market research, we think of statistics, focus groups and expensive surveys. In most cases, that is overkill. Market research needs to answer only a few key questions — the simpler, the better. Big businesses take feedback and apply it to a strategic plan. They evaluate sales and segment performance, predict sales growth, compile market trends and consumer insights, identify key drivers from the previous year’s successes and failures, set firm marketing objectives for the coming year, estimate costs and craft tactical programs and marketing initiatives to achieve those objectives. Good planning allows companies to continuously measure, refine and optimize their marketing mix. You should demand that all programs have financial benefits and amplify sales. Spend wisely, and know your cost per generated lead.

3. Everything you do communicates, so be consistent

The perception of your company and brand is defined by the interactions people have with your company. Your message must be consistent and compelling at all points of contact with customers.
Take a look at any coupon, print ad, television commercial or Web site for IBM Corp. Every message is marked by a vivid blue color, graphic elements influenced by the geometric shape of the logo, a single-minded tagline, uniform font type in headlines and the same tone across all printed material.

4. Being unique is crucial, even if you’re coming in second

Companies that grab market share first often grab the glory, but they aren’t always the last one standing. At one time, The Procter & Gamble Co. was second to Union Carbide Corp. in marketing disposable diapers. Dell Inc. unseated Compaq Computer Corp. by marketing to the upcoming college generation. The secret to second-mover advantage: You can’t propose just a me-too idea; you need a unique angle to spin. Me-too businesses rarely survive. They usually end up in price wars because they don’t have anything unique that establishes value in the minds of their prospects. They are left with only one competitive weapon: price. Unless you have a significant cost advantage over your competitors, you will lose.

5. Speak to the consumer and create value

Does your marketing material directly address the value of doing business with your company? Can it answer any consumer’s basic question, “What’s in it for me?” Some companies forget communication is about getting consumers to see brand benefits for themselves. To get that across, a brand must speak from the consumer’s point of view, not the marketing department’s. Remove all those meaningless benefits from your Web site and other communications materials. Replace them with the added value customers are after.

Posted on by Daniel

3 Questions to Ask Yourself Before Develop Your Brand

Before you begin developing a brand, you must have a solid understanding on who your customers are and how do you intend to serve them. Details can be extracted from your marketing plan or mission statement, but after all there everithing goes to asking yourself the next questions:

How do I want consumers to view my company? – Is the identity you want to portray friendly and personable? Professional? Efficient? Creative? Innovative? Appropriate for your target market? To begin choosing your branding direction, it may be helpful to write a list of characteristics that people would ideally use when describing your business. Identify the words you want consumers to recall when your business comes to mind.

Who are my customers and how does my product or service address their needs? – You need a strong understanding of your customer base to create an effective branding strategy. The idea of branding is to tell a consumer in as few words as possible how you will fulfill their needs. Knowing their needs is the first part, and communicating how you intend to fulfill those needs is the second.

Who are my competitors and why is my product or service better? – Sometimes looking at the competition can give you food for thought. You can see what is working for them and what is not working, and keep that information in mind as you create your own brand. Study people’s perceptions of other businesses. Use your personal experience as a consumer to guide you. Emphasize what is unique about your business that makes it a better choice than the competition.

Posted on by Daniel

3 Elements of an Effective Brand

In order for your brand to be effective, it must be visible, and consumers should be able to recognize it wherever they see it, they hear about it or think about it. It should stand out in a crowd and always create the same look and feel. In order to achieve these goals, your brand should be:

  • Consistent
    Using your brand consistently is imperative. The logo should never differ, and your mission statement or slogan should carry through to every element of your business. This is also true of consistency between the online and offline sectors of your business. Your bricks and mortar presence should be interchangeable with the image you project on the Web.
  • Visible
    The more you reinforce your brand identity, the more memorable it becomes. For example, each page of your Web site should feature your logo. Market your business with advertising, using your logo and slogan. Get your brand out there whenever possible-on your company vehicles and on the products themselves.
  • Unique
    The business world is a sea of brands. In order to develop successful marketing strategies using your brand, your business has to stand out. Emphasize what you have that the competition doesn’t. Tell your consumers what makes your business different than all the rest

.Effective branding carries the message of your business succinctly and consistently wherever consumers encounter you. Your logo, look and feel, and slogan reinforce the values of your business and project your image efficiently to customers. Following these guidelines will help you create a brand that makes you stand out in a crowd-and stay fresh in the minds of consumers.

Tags: effective branding

Posted on by Daniel