Introduction
In it's simplest form our marketing world can be divided into two classes: strong brands and non-brands. A brand that is not strong, that is to say a brand that is not thoroughly understood by the consumers, is not a brand in any real sense of the word. It may be a reputable company or it may be a great product. But until there is a clear, consistent and meaningful understanding of how the product and the company relate to the consumer and his or her world, there is no brand.

Why bother with "the brand"?
The brand understanding enveloping a product determines its comparative value to the consumer. The difference between the absolute cost of manufacturing the product and the amount the consumer will be prepared to pay for it is determined by the brand understanding. In other words, the brand strength is the ultimate determinant of profit margins. By extension, brand strength is an important determinant of the long-term profit potential of the company, and in this capacity becomes a valuable (if intangible) component of the balance sheet.

It is also true that brand understanding colours the way consumers experience a product. If there is a positive brand understanding, consumers approach the product or service in the expectation of a positive result. Being human, this strongly influences how we perceive and evaluate the actual experience.

What is a brand?
A brand is an abstract construct in the minds of consumers. It exists only in the minds of consumers. It is the understanding of, and belief about, the name and/or symbol attached to the product, and it results from the internalization of information from three sources. First, the product and category itself -- what the individual knows about the product, what his or her experiences of the product are, and how they perceive this in relative (comp[etitive) terms, etc. The second source is the hertiage, mission, vision and values of the company that makes the product (generally represented by the name, trustmark or logo). The third source is the consumer's own values and beliefs structures, and how these amplify or cloud their perceptions of the world around them. These three information sources are referred to as the three elements of the brand Trinity.

Who owns the brand?
Brands only exist in the mind of consumers, and therefore belong to them. A company has only a limited ability to control the brand, and does so under license to consumers. The more strongly established a brand is, the less tolerant consumers are of changes. Internationally, Coke learned this at great cost when they tried changing the product -- people throughout the world loudly said they would not tolerate any changes to the Coke brand, which was defined by, among other elements, a very specific brown fizzy liquid. When Coke asked people if they preferred a different tasting product, the answer in all the research, was a resounding "Yes." However, Coke did not ask people if they would accept changes in the Coke brand. In the event, the strength of the brand transcended the product itself so strongly, that the message came back: "If you change the taste, you change the brand. And we won't let you do that." Currently, in Canada, companies like Eaton's and The Bay are learning that Canadian consumers are equally intolerant of attempts to change icon brands.

How does a brand become a brand?
In order for a brand to exist, there must be three elements: there must be a product; there must be a company that makes the product, and there must be a consumer. As soon as these three elements come together, a brand is born. Interestingly, when these three components come together, there is always a brand -- whewther we, as marketers, like it or not. Consumers are going to judge our product or service one way or the other, and they will transfer that judgement to the company that produces the product. Voila: a brand is born!

Can a company influence a brand?
Companies can and must influence brands -- primarily (and, in the end, solely) by ensuring that the product meets the needs of the customer functionally, emotionally and experientially. Ensuring that this happens, and happens consistently, is the heart and art of brand strategies.

The first step to taking the reigns of the brand, is understanding the Brand Trinity: the three key components that together comprise a brand.

Component 1: The company , it's heritage, mission, vision and values

Component 2: The product and the category it competes in

Component 3: The consumers and the world they live in: beliefs, attitudes and behaviours

Only by researching and understanding how each of these three components relates to the brand experience, can managers influence the way customers judge their products and services. And, ultimately, affecting the way the marketplace judges the product or service will determine satisfaction, loyalty, advocacy and revenue.


 

Laurence Bernstein has been fine tuning the art of converting features, attributes and benefits into dynamic, experiential brands for 20 years. He is an acknowledged thought leader on understanding customers and presents an e-seminar on this subject on Businessexpertwebinars.com. He is the founder and managing partner of BC3 Strategies in Toronto. He can be reached by email at bernstein@bc3strategies.com. www.bc3strategies.com