Why branding doesn’t work

In this well-researched and sharply written article, I place my arguments on why branding doesn’t work for Small and Medium Enterprises (SME) and where the business owners to focus.

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Can you answer which is the world’s second-largest brand?

Xerox

Do you know who innovated Cloud Computing Technology for commercial use?

Xerox

Can you tell who is No 1 is in Cloud computing technologies?

Amazon (AWS),

Yes, Amazon, an e-commerce retailer in B2C, is the leader in the Cloud computing space (B2B) and that’s where they make huge profits.

Xerox, being the de facto brand in photocopiers, failed to do anything with its invention just not cloud computing, Xerox was the first one to invent Personnel computers. They easily give it to Apple.

Xerox lived its brand reputation but failed to sense the golden opportunities which would have made them No1 corporation, despite having the world finest sales force, Xerox is fumbling to find a space in business; the people who got inspired with Xerox inventions, Amazon, and  Apple are ruling the world

Does Brand building is important, especially for the SME business?

Not really

To write an article against some popular beliefs is not a simple task, but I have the courage to be disliked. Do you also have the courage to question your own beliefs, ready to do some deep thinking for your business?

Do you have the courage to read further?

In these zoom days, brand consultants make their half-baked theories around some successful brands and some failures and make their case for themselves. My arguments are only against the examples not on the principles of Branding.

The biggest risk is in all these webinars attended by SME owners are, we made them believe the brand lessons will work for them too.

Brand Consultants are talking about the legacy brands like Hero Honda, Lux, Kalyan Jewellers, all these brands are created by heavy advertising,  which an SMB cannot even think of.

It won’t work, because we are trying to copy what they are now,

Before going further, lets a see what a brand is and how it changed in the digital age

In the pre-digital era, the company created the brand through products and advertising then the brand attracted customers and customers made repeat purchases.

And also remember a brand is not a logo, or tagline, or any pictograms, all these are only a representation of the brand.

To explain the new model of Branding, I take the help of Marty Neumeier, brand authority and an original thinker. I am copying his words.

The new model of Branding :

“The new model of the brand is similar, but with one important difference: Instead of creating the brand first, the company creates customers through products and social media, then the customers create the brand through purchases and advocacy, and the brand sustains the company through customer loyalty.

This model considers a profound and counterintuitive truth: a brand is not owned by the company, but by the customers who draw meaning from it.

Your brand isn’t what you say it is. It’s what they say it is.”

There is a shift in brand power what Marty calls Brand Flip. From company to consumers.

Do you understand what our Brand consultants are missing; they wholly miss an important element, the power shift and the dominance of  Social Media.

Let’s look at the new-age digital age brands, Ola, Uber, Canva, Zoom, Zappos, all understood the Brand Flips, they have not followed the old school of thought, dint went for heavy advertising, or one messaging pattern, innovation, differentiation, one identity, nothing they don’t fit into any branding theories. They aggressively focused on acquiring customers and serving them well, the customers amplified the brand.

Are you asking me what’s the problem with the branding lessons taught here?

Branding taught here is self-centered about my messaging, my values, and what I think I am a Brand, something that Xerox did.

Marketing strategies are Customer-centric, great marketers, understand their customers well and make their products, that’s why Steve Jobs is considered a great marketer, not a brand architect. (Do you know Apple is building driverless cars, how are you going to term it, brand extension and avoid it, or do you love driving Apple cars).

Next to marketing strategies, modern-day brands focused on customer loyalty & customer delights, delighted customers made repeated purchases and not by hearing repeated messages by brands.

In conclusion,  to call you a brand, the power has shifted to the consumer.

And what’s in your control and where the SME owners should focus is on the Fundamentals

1. Customer-Centric Marketing &
2. Customer Delight

These are the foundation pillars on which we could build a small business to become a brand. Then brand will rise automatically.

As said By Marty Neumeier Your brand isn’t what you say it is. It’s what they say it is.

Do you agree Marketing strategies and Customer delight are more important than branding activities?

I know I stirred a conversation; at GreatWorks we are always open to taking your feedback, please pass it on to the website so others could also see and comment on your views.

References: Brand Flip by Marty Neumeier