Insights Marketing & Branding is brought to you by BrandExtract

22 Smart Business Dallas | April 2009

Insights Marketing & Branding

In a world where business as usual is nolonger usual, you need to know how todrive growth despite the down econo-

my. Branding and positioning can helpyour business thrive in the midst of change.

“Your product or service fills a need,” saysBo Bothe, President and Chief CreativeOfficer of BrandExtract. “A clear positiondefines the need for consumers.”

Smart Business asked Bothe how toassess, develop and strengthen your brandand position to capture a larger market share.

Why are branding and positioning essentialto business growth?

Effective branding helps a company bondwith its customers in a way that builds loyal-ty and differentiation. When a brand really‘connects,’ it not only creates a barrier forcompetitor entry but also develops a premi-um situation where consumers perceive ahigher product value, such as Apple. When abrand emanates from an organization’s mis-sion, it reflects marketplace value and com-municates and operates in a manner that sup-ports that position. A position is the essenceof what a brand stands for and when clearlydefined, it is easier for the consumer to makethe correct decision.

What are some of the possible outcomes ofan effective branding campaign?

Goals for any branding initiative should bedefined at the onset. What equates to successwill be different for every organization, butthe following are examples of results goodbranding initiatives achieve:n Clear differentiation and value

proposition n Customers purchasing your product

faster and for a premiumn More focused and efficient operationsn The right customers and prospective

employees knocking at your doorn Your entire organization knowing what

you do and ‘selling’ for youn You connect immediately because

people know what you stand forn Improved insulation between down

cycles and negative newsn Improved perception and increased

firm value

How does positioning differ from branding?

Your position is where your company andproduct intersect with your target market.Positioning is capturing the story yourorganization has to tell and packaging it ina consistent and memorable way that con-nects with the audience and explains howyou will fulfill their need. On the otherhand, branding is the experience your con-sumers have with the product or service.

The more unique the position, the easier itis for the brand to stand alone. Companiesthat actually stand for something rather thaneverything tend to succeed in building tangi-ble brand value. IBM, Coca-Cola, Google andApple are examples of companies that peo-ple connect with. For these brands, successcomes from more than the product they sell;it is the experience they provide that givesthem an edge.

How can you evaluate the effectiveness ofyour current brand?

Listen frequently. Take action often. Abrand should be a conversation. It is not

about talking at your customers, it is abouttalking with your customers. By talking andlistening to your key stakeholders, you canunderstand where they place you in yourmarketplace. Employee retention, premiumpricing, increased traffic or leads, andreduced cost of sales are metrics you canexamine to gauge the effectiveness of yourbrand.

What are the first steps in developing andimplementing a brand strategy?

To begin, you need to understand thattoday you don’t own your brand — you man-age it. True competition now comes from theclutter in the marketplace. Consumers havemore confusion than confidence around theproducts and services they consider buying.Here is a basic outline of how to effectivelybuild and manage a valuable brand:

Assess your position in the market-place. A brand assessment is critical in defin-ing the right place to start, identifying gaps inexpectations, and defining how you willmeasure the effectiveness of your marketingand sales groups. Do people know and iden-tify us correctly? Are our products and serv-ices relevant? What is the current marketopportunity?

Develop the tools you need. Determineyour position in the marketplace: What spacedo we want to own? How will we communi-cate this effectively to our target audience?Then, a marketing plan should outline thetactics needed to achieve these goals andobjectives. Finally, you need a visual ‘tool kit’to effectively and cohesively communicateyour brand’s position and value proposition.

Track your results and know when toreassess. You’ll have to decide who isaccountable and how to measure effective-ness based on key indicators outlined inthe assessment phase. You’ll also need todetermine key times, survey tools andother opportunities to gather informationabout the perception of the brand in themarketplace. This continual process willguide you on whether you need to adjust oralter your position. <<

Bo BothePresident and Chief Creative OfficerBrandExtract

BO BOTHE is the President and Chief Creative Officer of BrandExtract, an integrated branding and communications firm that guides

growing companies by providing strategic branding solutions, marketing communications, advertising, print and interactive services.

Reach him at bbothe@brandextract.com or (713) 942-7959 or go to the company’s Web site at www.brandextract.com.

How to create customer loyalty through strategic branding and positioning Interviewed by Elizabeth Grace Saunders

Positioned for success