The Branding Process

Despite the trials and tribulations of some of the truly great old-school brands, like Coca-Cola, as well as those created during the new economy, such as Google.com, several consistent attributes of brands and the branding process have gelled. Consequently, an activity once relegated to consumer product companies hawking packaged goods, branding now applies to every aspect of business, including employees and executives who seek to establish and maintain their own brand names.

Branding is critically important to businesses, both large and small, because it contributes to business success. Consider the neighborhood toy store that is forced to compete with a recently opened franchise giant such as Toys R' Us. Toys R' Us orders greater quantities of each product than the single, local toy store and therefore can sell the identical product for less. It might also boast a greater variety of products. However, the local store can keep its customer base if has branded itself well. Branding attributes that enable some businesses to be successful include a comfortable atmosphere and shopping experience, friendly local characters behind the counter that everyone seems to know, and a long-standing presence in, and commitment to, the community.

According to The Evolving Nature of Branding: Consumer and Managerial Considerations, six stages of brand evolution exist. ^[2] These stages have not only been an integral part of the most valuable brands in the world, but they also continue to influence these brands' mind share, stock price, and, in the case of sports, corporate and everyday fan bases. Most organizations, including sports teams and leagues, aspire to stage five of the following branding process.

^[2] de Chernatony, L., and McEnally, M. © The 1999 Academy of Marketing Science. The Academy of Marketing Science.

Stage one consists of unbranded goods that are typically treated as commodities. Rarely a part of developed economies, producers make little effort to distinguish or brand their goods with the result that the customer's perception of the good is utilitarian. In this stage commodities are fungible, interchangeable goods that customers are unable to distinguish between. When was the last time you cared about what brand of ice you were buying?

In the second stage, the "brand as reference" stage, the brand name is often that of the producer or manufacturer. The name is used for identification; any advertising support focuses on rational attributes (i.e., "gets clothes cleaner"). Over time, the name becomes the guarantee of quality or consistency, such as Gold Medal Flour. When a brand has reached this stage, a consumer might decide to purchase the known brand (Q-tip) over the identical supermarket variety, believing that the brand name is of better quality.

In stage three, the "brand as personality" stage, the brand name might "stand alone," with its marketing support focusing on emotional appeal or product benefits. An example of this would be that "Caring mothers use Ivory Soap." This stage in the branding process begins to link the product with customer attributes, providing an added dimension to the purchasing process.

In the fourth stage, the consumer now "owns" the brand. This is known as the "brand as icon" stage, in which the brand taps into higher order values of society and its advertising assumes a close relationship with consumers. Often established internationally, the use of symbolic brand language is prevalent. The legendary Marlboro Man falls neatly into this category. Local businesses reach this stage when the community readily recognizes its logos, mascots, or taglines with no further reference to the company.

"Brand as company," the fifth branding stage, is highlighted by brands that have a complex identity, and consumers tend to assess this identity very carefully. Because consumers are actively involved in the brand-creation process, the company needs to focus on its consumer base and utilize an integrated communication strategy to embrace them. For instance, customers at IKEA participate in all stages of the planning and purchase process. They are willing to be involved in the product design process by designing their own kitchen cabinets from modular units or choosing fabrics for the furniture they are purchasing. They further participate in the process by transporting and assembling their own product.

Few companies have sought and entered the sixth stage, the "brand as policy" stage, which is defined by a strong alignment of the company with ethical, social, and political causes. "Spokes-companies," such as Benetton which says it believes that "all human beings are born free and equal in dignity and rights" are essentially owned by customers who are committed to the company's philosophy. Many consumers purchase the products of brands such as Ben & Jerry's or the Body Shop because they agree with and support the political and social positions taken by these companies.

For a corporation to successfully brand itself and fall into the "brand as icon" or "brand as company" category, it must consistently and over time deliver and reinforce the marketing message and product attributes. Successful branding takes time and long-term commitment. Establishing a brand requires investment spending, including both the allocation of financial and human resources. It also helps to have a visionary leader at the helm.