Dispelling some branding myths

There is a phenomenal amount of material on branding. There are diverse perceptions of branding, practitioners of marketing use diverse names and terms to discuss the subject.

To learn about branding with clarity, it may be useful to remember the following aspects. Such conceptual clarity enhances practice-oriented approaches to branding.

Myth 1: Branding is all about advertising

It is true that advertising creates brand associations but mere advertising is not branding. Managing associations in a systematic manner is one of the important functions of branding. The coolness of Apple products is just not about its symbolic appeal; it is more about its innovative features that adds on such symbolism.

Myth 2: Branding is only associated with consumer products

Business-to-business (B2B) marketing also is benefited by branding only if product management (profitability analysis, managing similar offerings for several segments, product development and market development) supports branding initiatives that have linkages to brand associations. Branding in B2B marketing is associated with value. Intel's example of ‘Intel Inside' was well known as it had advertised it. A consumer using ‘hi-tech' apparel that reduces the temperature in summer (Van Heusen had introduced such offerings) or a consumer using Samsung Galaxy to have a teleconference with his/her friend using the technology of Polycam are, in fact, using B2B technologies. B2B marketing prevails in several consumer product categories and it is critical for its managers to monitor consumer markets.

Myth 3

This is a continuation of the earlier point. B2B marketing requires extensive advertising such as IBM, Wipro or Accenture does. While B2B marketing is also concerned with creating associations, all companies that advertise had created customer value through their internal processes before building such associations. In fact, there are brands that are little known through advertising and they are as successful as widely advertised brands in their own respective market/s. Some of them are Paris Miki, Lutron Electronics, Chem Station ,Cemex, Anderson Corporation, Wipro, Infosys, TCS, Bandag, Tandem Computers, Eaton (that emphasises innovation and performance in its ads) and Intuit (the software company that created Quicken, the financial package known for its ease of use and speed) are examples of how these B2B companies relied on ‘value' (as experienced by the customer) to create a brand rather than just on their visibility of ads.

Myth 4: Price cutting or providing freebies is branding

This is sales promotion and it is not to be confused with branding. Sales promotion practised by a brand can leave the brand with a “discount” association. But sales promotion by itself is a promotional strategy rather than a branding strategy. One needs to understand what branding principles are and differentiate strategy from the brand using the four Ps of marketing (product, place, price and promotion) to ensure clarity of understanding the concepts of branding. Otherwise any strategy will be mistaken for branding. There is a difference between branding principles and a brand using marketing mix elements as its strategy. Simply because a brand of local manufacturer of an automobile component is using a price discount strategy for his brand, it does not mean that all branding strategies are based on price discounts. This is an important part of learning branding principles.

A branding principle ensures that an offering is unique, gets differentiated from its competitors, maintains the differentiation over time and also sustains the response of the customer (whether it is repeat buying or a positive attitude towards the brand over time). Hence this customer-based brand equity is a dynamic process. The brand develops a “brand knowledge” (that includes several aspects of the brand) among its customers. Several companies that sell components on price do very little to brand themselves.

Myth 5: Branding is a one-time effort of creating associations

Yes, this involves creating associations and also reinforcing and revitalising the associations in tune with the changes inside the organisation and external environment. For example: IBM became a global services company and ceased to be a product-oriented company and successfully communicated this in its corporate ads over a period of time. Wipro did this when it had entered several product categories with its “Applying Thought” campaign.

Myth 6: Branding is all about emotions and hence it is not applicable to B2B marketing

It is very true that consumer marketing is all about emotions, but that does not mean emotions and perceptions do not occur in B2B marketing (though the degree is significantly different). The choice of well-known brands to have the “safe buy” attitude among decision-makers (choice of well-known suppliers for critical components) illustrates the utility of branding in industrial goods. DuPont had charged a premium for its commodity-like chemicals due to its branding effects (which is simply perception based on positive feelings). The consequences of choosing a wrong brand among the decision makers in a B2B setting makes them move towards the emotional security offered by a brand.

Myth 7: Branding industrial products does not matter to consumers

While this may be true of many products, marketers need to remember that given the exponential changes in the environment, there may suddenly arise a need to connect with the end consumers. After all, the demand for industrial products is derived from consumer markets. Recently, a Brazilian company in the business of refrigeration came out with a portable air-conditioner that can be used by the end consumer. The ‘Intel Inside' campaign is also an excellent example.

Myth 8: The concepts of branding and industrial or B2B marketing are completely different.

Philip Kotler, the czar of marketing, in his book on B2B branding discusses some important principles of branding common to both consumer and B2B marketing. Whether it is a new soft drink such as a Minute Maid lemon variant or National Semiconductors that makes chips for several devices and critical sensor applications, awareness needs to be created. Consumers experience performance and form associations; they make judgments that are accompanied by emotions that are appropriate and finally consumers reach a stage of recommending the brand if they are highly satisfied. The conceptual process is the same: the factors and the nature of human elements may be different.

Dispelling myths on branding is as important as learning principles of branding.

Ramesh Kumar is Professor of Marketing, IIM, Bangalore .

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