The Importance Of Branding In The 21st Century
1931 marked an important moment in history; Neil McElroy of Proctor and Gamble, penned a 3-page memo which would later be identified as the fuel that created the discipline of brand management that we know today. There has been numerous academic literature written on the concept of branding. According to literature, “brands are among a company’s most valuable assets”, and companies are benefiting from building a successful brand image, which has allowed them to become far-reaching, charge premium prices and build long term customer loyalty.
Brands have existed for decades, they are ubiquitous in today’s marketing landscape and have come to define modern marketing. The 21st century has seen an explosion of branded offering, that present the consumer with an overwhelming amount of choice. The appeal of a brand is greater than it has ever been. When we think of brands, we usually think of the products that we buy (Apple, Coke, Nike), but just about anything can be branded.
Marketers have recognised that building and reinforcing the image of their brand is key to growth and profitability. Consumers have an extraordinary amount of choices and those brands that are well known and trusted, create touch points that help consumers to simplify their decision-making process.
Brands however, are unlike any other product or service; products have life cycles, but brands can last forever. A brand is not solely a name: it’s a name with the power to influence, which exists only when it has acquired power to influence the market. Brands are no longer about applying a name and a logo. A brand is a promise; it is something to aspire to, avoid, or something we can outgrow. Consumers do not just buy products and services from a brand, they buy the image of the brand to create better versions of themselves.
Over the last five decades, the concept of brands and branding has developed almost out of all recognition. Its importance has not gone unnoticed by pioneers and marketers alike. The importance of brand management has become more relevant in today’s competitive market. In today’s changing brandscape, building a brand is all about creating a narrative – telling a story that ultimately sustains and engages customers. Successful branding focuses on the development of adding value as brands are intangible assets – assets that produce added benefits for businesses that can aid communication, add credibility and legitimacy, and enhance visibility.
However, there is no real consensus on how to measure how vital branding is. One way to express the impact branding has had is to look at arguably the most well-known brand in the world, Coca-Cola. Coca-Cola has existed since the early 1890’s, it owns the recipes and intellectual property, but not the factories where the actual products are made. If a disaster were to destroy all of Coca-Cola production assets, the company would survive, however if all their customers were to suddenly forget everything related to Coca-Cola, the company would go out of business. This helps with the notion that a brand is not just a name. It’s a name with the power to influence.
The Good Marketer believes branding should be at the forefront of your companies marketing strategy so if your company is looking unify your brand image and increase opportunities for customers to convert to your brand, then get in touch by submitting an enquiry using the contact form below or by calling 0203 963 0810