Getting it right with branding
Strong brands boost sales, improve margins and reduce cash flow volatility.
Branding is therefore a powerful risk management tool for firms.
When people share values they’re more likely to hang with their like-minded friends. And so it is with brands. The ultimate power of a brand lies in the fact that it has acquired meaning with customers (shared values), which are carried deep within their minds. The meaning is stored in a person’s long-term memory driving decisions when making a choice.
Once upon a time, in fact not so long ago, it was about brands reaching people with their message. With the advent of the internet and the social explosion of recent times, it is now about fostering engagement through relevant content. Just like Google algorithm, brands continuously work to appear high up on search listings. But you should pay attention on the brain’s algorithm to ensure your brand is at the top of mind at the moment of purchase. Scientific research has revealed that our brains select brands in much the same way Google selects websites; we call it a subconscious algorithm.
How you might ask? Consistent brand repetition and messaging throughout the years across all touch points becomes effective because it makes it easier for the brain to recall, therefore a brand is more likely to win the battle of choice upon purchase. Think Apple, Harley Davidson, Bunnings Warehouse and Nike to name a few.
Once brands are aligned with the subconscious algorithm and achieve brand choice, they enjoy a sustainable competitive advantage of higher returns and lower risk. Your mantra should be that brand strategy is business strategy – business strategy is brand strategy.