Branding

Branding entails much more than simply affixing a clever logo to a product. In fact, the act of branding encompasses a wide range of marketing activities such as product design, name, packaging, advertising, and image projection—all of which are designed with one core purpose in mind: To differentiate a seller's own product from competitors' offerings. When effectively orchestrated, branding enables a product to stand out from a sea of products that otherwise might appear similar to consumers.

If brand managers focus on developing and conveying the points of distinction that matter most to consumers, the brand is likely to thrive and consumers are inclined to pay a premium price to acquire that product. A powerful brand, therefore, is one that commands a large brand premium and engenders a deep level of loyalty among its dedicated users. The best brands, according to marketing guru Philip Kotler, are ones that appeal to consumers on some higher emotional level, not just on the basis of a specific product attribute or benefit sought. While a product feature often can be easily imitated, it is more difficult for competitors to replicate a feeling generated by a compelling brand. Consumers may buy Coke, for instance, not for the taste alone, but also for the positive images and feelings that the product conjures through the company's successful marketing and advertising campaigns.

Indeed, branding is all about good “story-telling,” as former English professor James Twitchell emphasizes. He means this not in a derogatory sense—not in the sense of brand managers creating malicious fictions. Rather, by “story-telling,” Twitchell means that the best marketers develop convincing and engaging narratives that suffuse their products with such vitality that consumers want to believe in them, use them, and endorse them to others. Consumers enjoy and trust their favorite brands, and the most passionate of them also will act as brand apostles, spreading the word about their brand's perceived strengths.

It is easy to perceive why branding holds such appeal to sellers: Done right, branding offers them significant financial benefits. By eliciting consumers' attention and generating positive interest as well as repeat sales, branding facilitates the selling of a greater number of products. Moreover, sellers generally can command higher prices for stronger brands than weaker ones.

But what about the advantages to branding for buyers? Critics maintain that branding is disadvantageous to consumers. As they argue, the process of creating and maintaining a brand is quite expensive, [Page 180]and those costs are invariably passed on to consumers. Critics also point out that branding, by making an emotional connection with consumers, can encourage irrational purchases, tricking consumers into buying what they do not need or what they cannot truly afford.

A defense of branding, however, also can be made: Branding can be good for consumers. Advocates emphasize that branding, by calling attention to the differences among products, plays a valuable role in helping overwhelmed consumers make decisions in a crowded marketplace. If consumers are pleased with a product's performance, branding also can help consumers identify that product again, facilitating a repeat purchase and a very similar experience as their first time using it. Branding encourages product consistency and uniformity. Viewed in this light, brands therefore may be worth what consumers are willing to pay for them.

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