Facts and History

Some facts and definitions of brands and branding :-)

KEY FACTORS

- Brands are not just trademarks and visual identifiers of products and services. They have grown to become cultural and financial entities, representing societies visual perceptions and economic situations. In other words, the visual parameters of a brand, at a specific point in time, reflects the social, cultural and financial parameters of that period.

- There are two ways in which a brand can have an impact on people:

The brand image, which is more symbolic. It represents all the impressions and connotations that the visual aspect of the brand provokes to the public. For example, the brand image of Coca Cola. The red color, packaging and look of the drink itself, in association with the look of some TV ads and promotional material, contribute to the creation of an aesthetic explanation of what the Coca Cola brand stands for.

The brand experience is a more experimental aspect of the brand. It has to do with the actual human experience that someone has when consuming a specific product or service. It has a broader and less rigit sense. Every successful brand nowadays, has the ability to approach consumers touch points, to create a more personal relationship with the target audience.

- Branding must be the creator of added value. Modern consumers are not buying the actual product, but the brand as well. The added value produces more profit. A branded T-shirt for examples costs 40 dollars (while manufacturing it costs 4 dollars).

- Brand parity is the perception of the customers that all brands are equivalent.

- Attitude branding can also be described as "experience" branding. It is more about representing feelings, a whole experience, a "larger feeling".

- Iconic branding is interesting. They target not only on the consumers experience while consuming them, but on their personal expression and personalities. This kind of branding strategy started to emerge in the beginning of the 00's. Ritual like behaviors are included when buying or consuming the brand. The brand becomes a myth. According to Douglas B. Holt, "There are four key elements to creating iconic brands (Holt 2004): 1. "Necessary conditions" - The performance of the product must at least be ok preferably with a reputation of having good quality. 2. "Myth-making" - A meaningful story-telling fabricated by cultural "insiders". These must be seen as legitimate and respected by consumers for stories to be accepted. 3. "Cultural contradictions" - Some kind of mismatch between prevailing ideology and emergent undercurrents in society. In other words a difference with the way consumers are and how they some times wish they were. 4. "The cultural brand management process" - Actively engaging in the myth-making process making sure the brand maintains its position as an icon."

- "NO BRAND" brands :-).

Deriving from the anti-branding movement, (Starbucks branding example at the end...) these brands (i.e. Japanese brand MUJI), spend little or no money on marketing and advertising. Their success lies in their reputation and "word-of-mouth" of the public. Still, the MUJI example is somehow branded, as one of the first "No-Brand" brands. (Corporate ethics is important for successful branding).

- Brand extension is the expansion of a company's product line with other non relevant products, that compliment or "accessorize" the initial product. (Adidas produces perfumes, Ferrari manufactures some clothing as well, etc.)