What’s in a Brand Name?

Naming a new brand without taking enough in consideration the main target market may lead you to unexpected surprises. Here is an interesting NYT article on such a case:

What better way to honor the brash origins of this city, the owners of Houston’s new professional soccer franchise reasoned, than to name their team “Houston 1836,” a nod to the year when two entrepreneurial brothers from New York arrived here to build a city atop the swampy bayous of southeast Texas.

Many Latinos in Houston, though, greeted the unveiling of the team’s name this week with a shudder. Eighteen thirty-six also happens to be the year that a group of English-speaking interlopers waged a war of secession that resulted in Mexico’s loss of Texas, ushering in more than a century of violence and discrimination against Mexicans in the state.

Read full article here. (via)

9 Components of Corporate Identity

Marcia Yudkin author of Internet Marketing for Less Than $500 Year and 6 Steps to Free Publicity has an interesting list of 9 components of small business identity:

1. Values.
Do you stand for stability, like Prudential insurance? Innovation, like 3M? Educational curiosity, like the Discovery Channel? Social consciousness, like Ben & Jerry’s Ice Cream?

2. Personality.
From the company’s personality can flow ad campaigns, kinds of special events to sponsor, company colors and typefaces, corporate gift selection, even the talent chosen to record company voice mail messages.

3. Behavior.
Your company’s image includes not only how you promote yourselves but also how you act toward customers and the public. Things like how you answer the phone, how you greet shoppers, how cheerfully you correct mistakes or accept returns, how aggressively you negotiate contracts all become bound up in one composite image.

4. Price.
How much you cost in comparison to competitors often becomes part of your image. If you’re tempted to keep price out of the equation until someone expresses a desire to buy, think twice.

5. Range.
Customers should understand the spectrum of products and services that you sell.

6. Geographical roots.
Where did your company come from? If you’re a locally owned family business competing with multinational giants, make sure people know that. If you’re selling nationally but rooted in a picturesque corner of the country, make hay out of that.

7. Longevity.
Moody and Regan, a printing company in Waltham, Massachusetts, wisely and impressively uses as its tag line, “Established 1898.” Whenever you’ve been around much longer than competitors, you can profitably incorporate that into your image.

8. Slogan.
Which brand “tastes good like a cigarette should”? Which car is “the ultimate driving machine”? Even local or specialized companies can achieve this kind of awareness with their clientele.

9. Benefits.
What do buyers get when they purchase from you? Most companies provide intangible, emotional benefits as well as tangible, practical ones (Burger King: inexpensive, satisfying meal; Boston Pops: a fun night out; Kodak: photos with true-to-life colors).

Marcia Yudkin is the author of 6 Steps to Free Publicity and ten other books hailed for outstanding creativity. Find out more about her new discount naming company, Named At Last, which brainstorms new company names, new product names, tag lines and more for cost-conscious organizations, at http://www.NamedAtLast.com.

Managing a Brand Under Fire

Even though is dealing with pharmaceutical industry branding, I spotted a very intersting article, over BrandWeek, that deals with how to manage your branding when your company, or even your whole industry is under fire, and has to face negative reactions to some aspects, whether from the public or the media.

Strategically, a shift is needed throughout the industry—from corporate brands to their agency partners—toward a better understanding of consumers. The industry must know how consumers truly feel (as patients, as caregivers and as family members), what they want, how they react and what drives them to action.

Well so far, is a little general, but here is a list with some practical strategies ideas that help: Continue reading

Key Branding Trends in 2006

Robert Passikoff is president/founder of Brand Keys, which has published the Customer Loyalty Index of leading companies in 26 product and service categories since 1996., has an interesting article over at Chief Marketer about what he calls the five key trends that will determine the difference between success and failure for brands and marketers for 2006:

1. An emphasis on “engagement.”
Inserting itself between traditional marketing activities and an increasing demand for return on investment assessments, engagement will become the Holy Grail for marketers and advertisers. Defined as the outcome of ad and marketing activities that substantively increases a brand’s strength in the eyes of the consumers, engagement will be used more and more to allocate marketing budgets. Continue reading

Instant Branding Through Viral Email

Martin Lindstrom, author of several best-selling branding books including his latest, including Brand Sense : Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound provides some information on what he calls instant branding key ingredients, here are some of them:

  • Values. Define the values your brand’s communication is based on, if you didn’t when you designed the brand. Your brand’s values are what define your brand’s identity. These values will lead you to discover interesting instant branding opportunities and enable you to make the most of them when the opportunity arises.
  • Insight. Dedicate someone in your organization or agency to identify breaking news stories or news-driven trends. Be prepared to grasp opportunities as they appear. The faster you react, the better the distribution you secure. So, select people to keep an eye and ear on popular culture, current affairs, and personalities.
  • Courage. Create an instant branding team of two or three creative people. The team should meet, brainstorm, and generate five or six ideas to propel news-driven instant branding campaigns. Then, be prepared to accept the consequences of whatever they come up with.
  • Judgment. Be extremely critical. Can the idea create the right momentum and generate the right distribution for your brand? Always ask yourself: would your competitor send the e-mail on because of its irresistibility? Be critical about the message. Test the idea among a range of friends who represent a spectrum of personalities, religious persuasions, nationalities, and backgrounds.
  • Prudence. Don’t be overtly promotional. If your message is tainted by even a fraction of self-promotion, no one will forward it. The message must feel authentic.

Read more here

2005 Top Brands – Brandchannel Readers’ Choice Awards

Brandchannel published its fifth Annual Reader’s Choice Award, a top of the brands that had the most impact in the passed year.

Over 2500 people from 99 countries voted in the 2005 poll. The greatest number of voters fell in the age range of 26 to 35 year olds, with about a third more men voting as women.

Brandchannel conducts the study each year under the following conditions:

  • Readers are instructed to vote for the brands that had the most impact on them that year.
  • Impact is defined as good or bad. (Bad impact might be a brand like Enron.)
  • The study runs online and is open to the public during November and December.
  • Votes can be cast for up to five brands per region; respondents can only vote once per region but no section is mandatory.

Here is the Global top 10 brands that have the most impact on us in 2005 (in brackets are the previous year positions):

  1. Google (2)
  2. Apple (1)
  3. Skype (new)
  4. Starbucks (4)
  5. Ikea (3)
  6. Nokia (10)
  7. Yahoo! (new)
  8. Firefox (new)
  9. ebay (9)
  10. Sony (new)

Read full article in Brandchannel

Interactive Brands

The brand – the collection of sentiments, concepts, ideas, myths, whatever, surrounding your product or commercial offering – is beholden to the needs, desires and tastes of consumers. Your brand had better be able to adjust or it becomes irrelevant. What your target consumers consider a relevant message is even more shifty and unstable than what they consider a relevant product.

The brands are interactive in the sense that the web in general, and blogs in particular, are making the feedback loop between consumers and marketers incredibly tight. But the only thing new about the situation is its immediacy; the loop has shrunk from a traffic circle to a wedding ring. The “brand stewardship” model of marketing, in which the brand is dictated to the consumer and only grudgingly changes course under threat of absolute ruin, has always been wrong-headed. You can’t completely and totally manage, control and broadcast your brand or its perception. Immediate feedback and reactionary blogging have only amplified what has always been the case. Brands are creatures of relevance and relevance is incredibly unstable. If a brand can’t intelligently react to maintain relevance (in a way consistent with its history) then it will fail.

It’s our job to look ahead, determining relevance and the appropriate means of communication for our clients. But first we must understand that it’s interaction, not broadcast.

Well said.

Five-level Brand Leadership Model

The BBDO’s five-level brand leadership model provides a systematic approach to developing brands. This model comprises five development stages that function as building blocks for brands to reach or be elevated to.

Level 1 – Proprietary goods

At this level, the functional aspects of a product are in the foreground. Typical of a proprietary good is the fact that, though it literally has been “branded” with a label (in the physical sense), no advertising efforts is expended for it. In this context, the product is branded to indicate its provenance and affix a “seal of quality” that comes from its manufacturer. This quality pledge allows consumers to clearly associate any deviation from the expected quality with a specific manufacturer. The supplier commits itself to a pledge on which consumers can call the company at any time and which they expect – if not demand – that company to deliver.

Level 2 – Branded products

In addition to the characteristics of a proprietary good as outlined above, this level also includes success factors as yardsticks of “major brands.” Besides bearing the basic manufacturer’s mark, a branded item fulfills certain criteria such as constant, above-average quality, above-average price level and a high level of awareness created by way of advertising pressure. A branded item is characterized by the fact that it is widely distributed and enjoys major recognition on the market. One characteristic of brands at this level is the fact that, while their consumers have access to additional information, the quality of this information has achieved neither mind share nor heart share. In other words, these brands have not yet succeeded in forging emotional bonds with consumers.

Level 3 – Positioned brands

The brands clustered here are set apart by their emotional and cognitive impact on consumers in addition to their functional utility.

At this level of development, consumer attitudes and associations are extremely important. Expertise about preferences and purchase patterns, coupled with cognitive and emotive positioning efforts, is used to evoke certain associations among consumers. To this end, the consumer must, however, also interpret the message conveyed by the brand. To elevate a brand to this level and keep it there – to actively involve consumers – brand management must position the brand cognitively and emotionally by way of a brand-building program. Positioning efforts on the part of brand management, plus integrated communication measures, make it possible to create brand strength and cultivate brand personality.

To elevate a brand to this level and keep it there – to actively involve consumers – brand management must position the brand cognitively and emotionally by way of a brand-building program. Positioning efforts on the part of brand management, plus integrated communication measures, make it possible to create brand strength and cultivate brand personality. The result of these measures can then be seen in a product’s ability to capture a certain position on the market and hold its own against the competition.

Level 4 – Identity-building brands

This identity is the product of interplay between producer and consumer to create a suitable brand environment. The brand is integrated into the consumer’s personality.At this level of brand leadership, consumers define themselves via the brand (and the brand via its loyal customers), relying on it for self-expression and identity formation.

The suitable drivers at this level are communication tools with specific attributes – for instance, emotionality, interactivity or virtuality – that support the process of building brand identity particularly well.

Level 5 – Mythological brand

As with the level of identity-building, a “mystique brand” helps provide customers with a social orientation, and most of all with a metaphysical orientation. Increasingly, such a brand assumes the function of a guide or mentor offering insight into the meaning of life, helping consumers better process the social and the existential, and offering them support when it comes to finding their place within the “collective self.”

No drivers can be identified for this level because the timeframe for brand development is extremely long and special societal factors are indispensable. This brand status is not desirable for all brands and can only be achieved in isolated cases. A brand at this level, virtually having attained a cult or “religious” status, is difficult to manage; the danger of falling down to earth is extremely high due to the risk of disappointing followers or alienating a portion of them. In addition, such a brand is vulnerable to potential value shifts within a society that are completely beyond a company’s control.

6 Most Common Branding Systems

Branding systems, or architectures, can take various forms that emphasize the corporate name and image, de-emphasize the corporate name, create new brands apart from the company brand, or combine these approaches. Here is a list of the most common branding systems:

Corporate brand
Strong corporate image is synonymous with product class. Not that common in shelf goods, becoming more popular with technology companies.

Licensed brand
Used commonly in the fashion industry. Manufacturers license the name for clothing goods and brand extend into areas such as sunglasses and umbrellas.

House brand
Includes several product classes. Used by diversified companies allowing each subsidiary to operate as its own entity and target specific market segments Also used when two product lines are incompatible (i.e. Honda and Acura — economy and luxury).

Dual brands
Combining the corporate brand with strong subbrand. Subbrands can help differentiate and boost corporate brand and drive brand preference. Subbrands can become umbrella names for a family of products extensions (there are now several versions of Cheerios and almost 40 Herbal Essence product choices). Nestle added its corporate name to Kit Kat.

Co-brands
Aims to benefit both brands by raising the perceived quality of each brand. Follows rational that the very act of branding can raise familiarity and perceived quality of a product. Allows a brand exposure in product class that it could not enter on its own.

Mono brands
Strong single product brand identity without use of corporate brand. Each product identifies specific customer need. Used by large conglomerates in diversified lines such as P&G, UniLever, Beatrice. Useful when extending product line vertically to gain shelf space/market share.

Risk and Rewards for Global Brands

Very interesting Interbrand white paper which explores the attraction and risks associated with brands that are going global.

Successful global brands achieve a high degree of consistency in visual, verbal, sonic and tactile identity across geographies. They deliver a consistent customer experience worldwide, often supported by an integrated global marketing effort.

The risks of taking a brand global must be carefully weighed or the damage to the brand can be irrevocable. These risks include, but are not limited to:

  • Erroneously assuming the brand communicates the same meaning market-to-market, resulting in message confusion
  • Over-standardizing or over-simplifying the brand and its management, resulting in a culture of discouraged innovation at the local level
  • Use of the wrong (or tried and true) communications channels, resulting in inappropriate spending and ineffective impact
  • Underestimating the investment in spending and time for a market to become aware of the brand, try it, and adopt it
  • Not investing in internal brand alignment to ensure that regional employees understand the brand values and benefits and are able and willing to communicate and deliver consistently
  • Failing to modulate performance metrics based on local variables

Interbrand has identified a consistent set of principles shared by successful global brands.

Recognition
Well-performing brands enjoy strong awareness among consumers and opinion leaders. These brands lead their industry or industries.

Consistency
These brands achieve a high degree of consistency in visual, verbal, sonic and tactile identity across geographies. They deliver a consistent customer experience worldwide, often supported by an integrated global marketing effort.

Emotion
A brand is not a brand unless it competes along emotional dimensions. It must symbolize a promise that people believe can be delivered and one they desire to be part of. Through emotion, brands can achieve the loyalty of consumers by tapping into human values and aspirations that cut across cultural differences.

Uniqueness
Great brands represent great ideas. These brands express a unique position to all internal and external audiences. They effectively use all elements in the communications mix to position within and across international markets.

Adaptability
Global brands must respect local needs, wants and tastes. These brands adapt to the local marketplace while fulfilling a global mission.

Management
The organization’s senior leadership must champion the brand, ideally with the CEO leading the initiative. A leader’s continual articulation of the brand philosophy and the brand’s view of the world is meant to give the business strategy a recognizable face.

Download the full white paper (PDF)