Branding in the 21st Century
Imagine you yourself walking into Starbucks and buying a cup of coffee for RM 18 and enjoying the ambience of the coffee house. Now, imagine yourself in another scenario whereby you walk into a normal ‘mamak’ store and get yourself a cup of coffee for only RM 2.20. The differences between the two separate environments would be the huge gap; from prices, to the ambience, to taste, services and more. The fact is that Starbucks is not just about selling coffee, but the Starbucks lifestyle, experience and the Starbucks brand. The keyword to focus here is the ‘Brand’.
Branding
Malaysian companies are undervaluing their intangible assets. As the global economic paradigm shifts from one that values tangible assets to one that increasingly favours intangible assets, developed economies are relying more on intangible assets to generate economic value. The intangible asset I am talking about here is Branding. Hence, in order for Malaysian organizations to compete effectively in the global economy, Malaysia has to step up efforts to recognize and invest in intangible assets.
Changing From the Knowledge Based Economy to The Experiential Economy
The world economy is changing rapidly and we have now moved from the Knowledge-Based economy into the Experiential Economy. So you might ask what is the difference between the two and their definition? To simply put it, during the knowledge based economy, consumers were hungry for knowledge and information about goods and services. During this era, advertisements were loaded with know-how information. However, as times passes consumers got smarter and were better equipped with knowledge and information. This spurred the experiential economy, as consumers progressed by having the need to feel and experience the goods and services after receiving the knowledge and information. The Starbucks illustration explains the experiential economy in action.
As for business owners, it is crucial that you take note of these changes and be prepared for a big hurdle, as the market is not going to be a fair and nice place. So put on your thinking cap and start to plan and ponder for the best to your organization.
Understanding all that, we are here to share with you a few impactful pointers that may be simple and beneficial to you and your organization.
Misconception of Branding
Branding is one of the most misunderstood terms in business, many people think of branding as a series of process that involves developing logo designs and a lot of advertising run time. But in actual fact, your company branding is the sum total of your company’s identity, from its name and logo to every piece of communication, internal or external, to every encounter of your every customer.
It is also apparent that in Malaysia, branding is mostly done by Multi National Corporations (MNCs) and seldom executed by Small and Medium Enterprises (SMEs). One of the main reason or perception is that branding activities involves hundreds of thousands, if not millions of ringgit to execute. Again this is a serious misconception and an old school of thought.
As mentioned before, the shift in the economy and customer behavior has influenced the shifts in branding strategies as well. Conventionally, graphic design firms and advertising agencies has often positioned themselves as the ‘Miracle man’ in branding that would perform for a company’s brand image – these activities translates to spending millions of ringgit on prime time TV slots, gigantic billboards and radio time capsule. This also explains why only MNCs can afford it while SMEs cannot.
Why Pay Millions?
Now the question is, why pay millions to activities like this when you can execute your brand image activities effectively with a fraction of the cost? Many smaller companies have failed in their effort to rebrand or do brand enhancement as they relied too much on the media placement that cost hundreds of thousands. Attractive as it maybe, however media placements alone do not deliver the expected results any more. The thing is people now are very forgetful, the moment the advert stops so will their memory of you. It is not just about advertising for awareness anymore; your strategies in creating an experiential advertisement plays a more critical role in the 21st century.
If you are still wondering whether it is important for you to know and differentiate your Brand, let me illustrate this to you. Let say, you pump in millions of dollars strategizing on your advertising campaign just to beat your competitors. Think that for a moment. If you focus only building or advertising your corporate brand and forget about your own, and should your company fail in the first few years, you will disappear with it. A distinctive and compelling Brand adds enormous value to your business. Someone can steal your trade secrets and technology will change. However, there is one particular thing your competitors cannot take away that is you. You are know for certain distinctive values and attributes that you contribute to your customers. This is what we call your Authentic Brand. The big question is are you branding yourself the way it should be? Is your corporate brand public image doing you justice?
Many businesses today face diluted budgets for advertising and promotion. This is even more so in small to medium size business. With that said, good branding can help you direct your money more effectively. The more distinct and clear your brand is, the less you will spend on advertising and able to keep loyal customers.
Impact of Our Branding
In short, if branding is done correctly, it makes the buyer believe and trust you over your competitors. Branding is the reason why people perceive you as the only solution to their problem and even willing to pay extra for your products or services. However, in our current situation, perception of brands is in decline. Sure, branding may be more common, apparent, colourful, loud, and wilder than ever before, but it accomplishes less, almost in inverse proportion to the corporation/invention behind it.
I believe it is time to start asking a different set of questions, starting with the acknowledgment that “branding as awareness” may no longer be a valid starting point for your marketing strategy. Shouting out loud about awareness is no longer a norm, but transforming branding into a series of activities, services and promises is.
We live in a world that is driven by a perception and brands represent customer’s perception of a company’s credibility, products, reputation and customer service. A brand strategy is essential because it provides clarity about landscape, market position and customers’ expectations. This information is critical to develop effective marketing strategies. It also fine-tune marketing messages to maximize your competitiveness and build strong brands. Branding significantly enhances the brand’s market performance and profitability by improving name recognition, builds credibility and trust, increases advertising effectiveness and inspires employees. As entrepreneurs, business owners, stakeholders or corporate person, you need to stand out from the myriad of others so that the world is able to differentiate you from your competitors. You must be aware that within every brand is a product but not every product is a brand. Products are made in the factory but brands are created in the mind.
Branding In Action
Now, to communicate your brand through actual behaviours the involvement of your people is a must. It is what takes consumers from just being aware to making repeat purchases. A Brand is first and foremost a series of behaviours—not ideas or creative copy— that companies and their customers both share, and exhibit.
You can no longer afford to just talk about brands and branding in this era anymore. You must translate it into action. Brands are words, images, ideas, logos, colours, emotions, expectations, promises, people and more people- well, you get the idea.
The question is, as a property developer are you still stuck in the past, branding the old way? Or are you ready to move with the times and embrace 21st century branding?
