Is Brand a Scam . . . or the Real Deal?

Before a business owner invests the time, energy, and resources to systematically build a brand, some skeptics need to be persuaded that all this talk about branding is not a scam on the part of ad agencies and other marketers out to make money.

For starters, no less an authority of the business world than renown entrepreneur Warren Buffett of Berkshire Hathaway fame was recently quoted as saying about the power of brands:  “Give me a $10 billion budget and ask me to bring out another Coca-Cola that makes a dent in Coca-Cola and I can’t do it.”  By inference, this statement seems to suggest that the branding of Coca Cola has a value of at least $10 billion (perhaps more).

Frankly, branding has a longer history than most people realize.

Do an Internet search for the term “history of branding,” and you get an extremely wide variety of responses.  Some talk about the cattle branding done in the 19th century wild west. An organization called Skyward traces the origins back further, saying, “The term derives from the Old Norse word brandr or ‘to burn,’ and refers to the practice of branding livestock, which dates back more than 4,000 years to the Indus Valley.”

Most sources seem to agree that some form of the concept can be attributed to the Egyptians (and ancient B.C. times) with some credit being given to the Chinese, the Greeks, the Romans, and more due to the marks put on items such as pottery to provide information about the creator and creations.  (For a good historical overview, read Skyward’s essay, “What Is Branding? A Brief History” found at https://www.skyword.com/contentstandard/branding-brief-history/.)

Obviously, the term branding has assumed a much different and more complex identity during the second half of the 20th century.  As Taylor Holland notes in the Skyward essay, “The meaning of the word has evolved so much over the centuries that even people who do it for a living have never made the connection between modern marketing and livestock.”

Contemporary branding is a 20th century phenomenon.  The advertising industry is generally credited with broadening the definition to include establishment of a corporate identity and promotion of sales.  During the “Golden Age of Advertising” in the 1950’s and 60’s, the concept started to encompass the creation of a unique personality for products – giving them qualities that often elicited an emotional response that helped foster brand loyalty.

More recently, we have seen the concept expand even further to focus on something called “the brand experience” with customer service and ease of use playing increasingly prominent roles in effective branding.  (For a quick overview of this process of evolution, see “20 milestones in the history of branding” – https://www.creativebloq.com/branding/milestones-history-branding-91516855.)

So . . . What Conclusions Can Be Drawn?

If the act of branding is, indeed, an elaborate scam, the charade is one that dates back thousands of years, has hoodwinked one of the 20th century’s most astute businessmen, and has evolved to reflect the needs of a changing world.  While the act of branding has certainly become more complicated (as has the modern world), the process still involves quick identification of a product through visual symbols such as a logo and the association of those symbols with positive attributes.  These characteristics will, in turn, always be useful to companies that must continually reprove themselves to their existing customers . . . while constantly being on the lookout for new ones.

Not Convinced?

Perhaps you are one of those people who need some numbers before you can believe.  For instance:
“Consistent branding across all channels increases revenue by 23%.”
From 80+ Branding Statistics You Should Know For 2020
– Ryan McCready, June 19, 2019.

If you are one of them, check out these 80 facts and many others found in articles made available by searching “data proving the importance of branding.”

Social Media: One More Reason to Bother! (Betting on the Long Shot)

Recently, my blogging partner published an article about getting started on Facebook, and she also set up a page for our blog – Brand Building for Small Business.  If you followed our lead and did similarly (creating your own site), you’ve probably posted several messages by now . . . and seen little tangible reason for continuing this exercise.

Well . . . the entire message of this article is “Stay the Course!”; you never know who might be paying attention and the kind of impact that person might have on your ultimate success.

Who knows? One day, you just might get kind words from the Oracle of Omaha or some other noteworthy individual that you’d like to pass along!!  Keep posting to get your social media platform ready.

My best real-world example that offers proof of the wisdom of this advice happened just a few short years ago.  I was working for GUARD (my employer at the time and an affiliate of Berkshire Hathaway).  We were just getting started with social media (an intentional delay on the part of our company), and we were experiencing slow growth in the numerical results usually used to measure success – likes, followers, visitors, shares, etc.

We had established a regular schedule (at first weekly; then twice a week shortly thereafter) for posting new content.  At that time, my employer was in the middle of a five+ year stretch of 25% per year growth and had new infrastructure needs to accommodate hiring.  As part of that process, the company had applied to the state for a significant economic development grant.  While that request seemed to have a decent chance of success because many new jobs would be created, lots of viable projects were competing for the same dollars.

Fortunately, we had just closed the books on a very good year. In fact, our run of success had been good enough that the Chairman of our ultimate parent company (Berkshire Hathaway) had elected to give us a “shout out” by name during the heavily publicized and well-attended Annual Meeting of the Shareholders in Omaha, Nebraska.  Turns out that when that gentleman, an individual by the name of Warren Buffett, chooses to praise you, people stop and take notice.

Recognizing an opportunity, we transcribed the sound bite and posted a social media mention of the message, quoting Mr. Buffett’s generous remarks.  While this content generally got more attention than our low norm at that time, the first person to “like” our message was the individual who would be responsible for evaluating our worthiness for the grant we were seeking!

Did our social media posting make a difference?  While we will probably never really know, I can’t help but believe some good was done that more than justified the entirety of the time and effort we had devoted to date to social media.

So . . . the moral of the story (especially during the early stages) is this:  you don’t have to produce eye-popping numbers for your effort to be worthwhile and totally justify the invested time and energy.  You just have to keep using the platform you’ve created to communicate your message (. . . AND YOUR BRAND!) in a number of new ways . . . and hope that somewhere along the line the right set of eyes will read your words.  (Rem:  Strong preparation creates opportunity.) 

Frankly, I’m an optimist . . . so I’m always imagining all sorts of interesting people reading my words on the other end.  Every once in a while, the imagined even becomes reality (and that IS fun)!! 

I hope you have a happy and successful New Year in 2020.   My partner and I would love to hear from you and explore suggested ways in which we might be of help.