Role of Advertising in Building Brands

Role of Advertising in Building Brands

© Sabari Ganesh; “All Rights Reserved” 
authorsabariganesh@gmail.com

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Branding – Birth:

            The elasticity available to companies in differentiating their products based on tangible features has been rapidly shrinking due to increase in the competition. The effectiveness of companies in providing excellent services associated with the products, resulted in the commoditization of services.

This has eventually created the necessity for companies to explore new and unfound areas in their strife to project the superiority of their products among intense competition. The result observed is experimenting product promotion to associate with intangible values like fun, luxury, youthfulness etc.

This phenomenon was propelled by the quest of the prospective customers to perceive and project better stature in society resulting out of purchasing such products.  Such a quest of the prospective customers is guaranteed by their higher education levels, rising incomes, and increased purchasing power.

The phenomenal economic success of first movers, in differentiating their products based on intangible values generated a rapid following. When most of the companies started differentiating their products based on intangible values, the process that we now call ‘Branding’ took shape.

It was in the nineteenth century, in the field of marketing, with the onset of packaged goods, emerged branding.

Branding – Early Life:

            The early stages in the life of branding was very primitive and at the distal end of the marketing gimmick. Branding for a very long time remained a remote activity. It was never perceived to be a part of the core corporate strategy.

Early branding was a synthesis of a crafty logo, astute advertisements, and extravagant commercials in the media during popular shows on an enormous currency spend.

Since any brand proposes a personality, character, feelings and identity that is very unique and belonging to a particular company; it has to be nurtured like a human being!

Branding – Purpose:

The essential responsibility of a brand thus nurtured is to enable the customers experience the benefits and values, as proposed by its owner - the company. The ensuing result shall be the economic betterment of the company; which in turn nurtures the brand.

The terminal purpose of a brand identified with a unique, social intangible value is to seek and retain the mind share of customers by reminding them the product and the company; as and when they experience the specific social value in their day to day life.

The success of a brand in retaining the top of mind of customers is significant when the personality and stature of the brand synchronizes with the vision and ideals of the company.

Branding – Yuppie Stage:

            The innate ability of a brand to distinguish the products of the company from its competitors; and the guarantee of non-duplication has led to the proliferation of brands in the market place.

            The nurturing of a brand like a human being, has been very effective in developing a psychological chord of fondness and relationship; thereby assimilating like-minded social animals with the company’s products.

            The undercurrent of branding lies in its promise to the customers that a specific level of value, quality and service shall be provided; apart from its unique intangible stature.

            The above factors make the cultivation of brand a long term corporate strategic issue than a short lived tactic.

A well-defined brand personality that snugly represents the vision and ideals of the company earnestly influences the positioning of the company in the minds of customers.

Branding – Merit & Limitation:

The projected nature of every product associated with the brand contributes positively or negatively to the stature of the brand. The contribution is positive and meaningful, when the projected nature of the product synchronizes with the character of the brand; else negative.

Hence, it becomes mandatory that all the products associated with the brand focus the same direction, in a synchronized fashion. In practice it is found that this exercise curtails the scope and width of promoting the vast variety of products grouped under a brand.

Advertisements & Branding:

The main purpose of advertisements is to create awareness on the entry of a new brand, and to remind the existence of brands. Advertisements created over a period of time for various products under the same brand must essentially fall within the agenda of the brand personality to strengthen it effectively.

Such advertisements that project the brand personality even though created for a variety of products; jackhammer the brand personality in the customer’s minds; and also create an invisible memory link among all the products of the brand.

Immaterial of the ad spend, idea or strategy; any advertisement that fall within the framework of the brand must trigger this emotional chord positively. This is significant because, brands are actually vectors to an emotional connection people wish to make.

            Marketers must tactically strive to own this portion of responsive ‘real-estate’ existing in the minds of customers in a sensible manner.

The psychology of Branding:

More than the power of wealth, the building of a brand requires a clear focus and premeditated intent. If wealth were the basis of brand power, then successful brands would be owned only by the world’s richest.

A brand can be bought by the wealthiest; however the nourishing that a brand requires; can be provided only through sensible spending of the time, effort and involvement required.

The psychology of branding is a tricky and elusive issue. Unless the exercise of branding rests on visible and measurable parameters; customers may not believe the brand promise!

For instance; success for brands that rests on measurable business performance promises are comparatively easy than those that stress the company’s vision, mission and passion.

Business & Brands:

            The intrinsic objective of advertisements is to create brand awareness and market the brand than the product. The value shift has moved from products to brands. Successful companies no longer manufacture products; rather buy products and brand them.

In short, these companies have created a logo, a social image that sells the product; to an extent that if the entire operation of the company is ripped off leaving just the brand; one could effortlessly build the company.

In the reverse case, the company intact with the brand removed; the company heads towards extinction. This is because, everything about the company; from management to advertising to customer service to employee welfare; everything is derived from the emotional double helix – the Brand!

Advertisements minus Brands:

The major gridlock in advertisements is to evaluate their success ratio in terms of increase in sales or revenue or brand awareness; that could be attributed to specific advertisements.

The case of brand ‘Le Sancy’ is a classic example. In spite of aggressive advertising, it sunk without a trace. One possible reason could be that the ad claimed a unique bathing experience pitching on the peculiar shape; which is short lived as the product being soap.

Similar is the case of Daewoo’s Cielo. The technology behind multi-point fuel injection system was pitched in advertisements. However, any amount of advertisement could not reverse the perception of customers doubting its fuel efficiency. The positioning thus became a failure; and when they came out with their small car, it was positioned as a family car.

Even so; advertising is never an exercise in futility. As a matter of fact, however excellent a product or service may be, cannot be sold unless and otherwise its existence is known that is achieved by advertisements; proving its indispensability.

 “Advertising does help in building brand recall, but advertising alone does not sustain a brand!”

VikramBakshi, MD, McDonald’s

Successful Brands without Advertisements:

History indicates that brands can be successful even without advertising. ‘Gokul Santol’ and Mysore Sandal Soap are couple of brands that have a strong following in the market. The company does not stage promotional campaigns or spend a huge ad budget. These are success stories because the customers like the product.

Also, today’s customers are no longer dependent on advertisements for information regarding the product. The internet and other interactive media have made the customer an active participant in the process of information exchange.

Brand Resurgence:

In today’s business scenario, marketing is multidimensional and not just a simple trick. The traditional approach to brand management necessarily requires a complete reorientation.

Brands of the eighties built upon heavy advertisements that were once adored and seemingly invincible have lost their sheen. ‘Dalda’ – Vanaspati; ‘Weston’ – Television; ‘Polson’ – Butter; ‘Murphy’ – Radios; ‘Campa Cola’ – Beverages; ‘NP’ – Bubblegum are a few to name.

However, some of these brands have been revived like the ‘Detroit Electric’ – Electric Cars in the US and ‘Dalda’ – vanaspati in the Indian scenario. The tact here lies in ensuring that the customers perceive a new economic value in these products and brands.

Markets for Resurgent Brands:

The brands that are successful in a specific slot in a particular region could not command the same positioning in another region.

For instance, ‘Kellogs’ – corn flakes which is targeted at the ageing segment that could not eat meat in the US; targets the kids segment in India. The US car ‘Buick’, which is a value for money automobile, is a big brand in China.

Repositioning of a brand has been very successful in these cases.

Conclusion:

            Advertising in its role of building brands commands inevitability; however its effectiveness has to be guaranteed by other promotional and PR tools which are part of the overall branding strategy.

            Advertising in its transition from product features to services to the ultimate character of brand is successful when complimented with the other tools of marketing.