Unlike marketing, branding is a two-way street

February 22, 2008

John Foligno (jfoligno@cubismbranding.com) is managing director of Cubism Branding, a full-service, integrated marketing communications firm.

By John Foligno

When I ask people to define branding, I am still amazed that I receive so many varying responses.

In this first column on branding, in which I'll discuss how making branding your No. 1 priority will ensure the future success of your business, I offer this definition as a starting point: Branding is establishing a two-way relationship by matching the needs of the core competencies of your business with the needs of specific, selected market segments. The emphasis is on building a two-sided relationship.

It's knowing your prospective customers and their needs, both physical and emotional. It's fulfilling those needs and helping them achieve their desires. The first step in establishing your brand is finding those segments and channels through which you can serve customers better than your competitors can.

In our industry, a brand can encompass many entities: A jewelry store is a brand, a retailer is a brand, and a vendor who designs and markets a product is a brand. What distinguishes one from the next? How can you differentiate your brand from your competitors' and stay relevant?

Let's first compare marketing and branding. Marketing is generally thought of as one-way communication, from the brand to the consumer. This includes all the traditional techniques you're probably familiar with—advertising via print, radio, outdoor, direct mail, etc.

Branding, on the other hand, is about developing a two-way communication, or relationship, with your intended audience. It means understanding and getting to know them in a much deeper way and not assuming you already know what they need. It also means learning how the audience wants to do business with you and being open to changing the way you conduct business with them.

The marketplace is too competitive for you not to be reinventing your brand and the channels in which you operate. For example, instead of telling yourself that the Internet is not a way you wish to do business, consider whether or not your customers would appreciate this as a viable channel in which to interact with you.

Your brand's value Let's consider that aside from your physical inventory, your employees are your greatest asset.

Without them, your business could not function at a quality service level or with any level of efficiency. But let's also consider a fact that many overlook: Your brand is your second greatest asset.

A brand often accounts for between 50 percent and 70 percent of an organization's total financial value. If a brand is not treated with the same respect and attention that you give to your staff, it can virtually break your business. Successful brands are built with consistency and discipline: consistency in the look of the brand and the messages that touch the respective audience; and discipline in the way the brand's integrity is considered when making all decisions.

The goal of building a strong brand is to own a position in the mind of the customer. Regardless of the current branding of your product or service, remember that the customer dictates how they want to do business with the brands they purchase. Only a select number of brands ever reach a level of success that is considered great. How does your brand measure up?

Editor's note: This story first appeared in the February 2008 issue of National Jeweler.