The Timeless Nature of Branding in an Ever-Changing Era (Part 1)

In today’s dynamic business landscape, while adults are open to multiple viewpoints, varying definitions of a "brand" can dilute the effectiveness of brand management. Take, for example, a hypothetical discussion in brand management where differing opinions might lead to the following debate:

Person A argues that LG has the best brand, thanks to its slogan "Life’s Good," which is not only easy to pronounce but also meaningful.

Person B claims that Highland Coffee’s brand is superior since it has become a staple in office workers’ lives, with customers flocking to new store locations even to the point where malls reduce rent for them.

Person C contends that Xiaomi excels in branding as every product it launches, from smartphones to toothbrushes, is embraced by consumers.

Person D believes that P&G leads in branding, with its Brand Managers overseeing the entire process—from research to production and finance—making their brands leaders in the consumer goods sector.

So, which of these brands is better? The truth is, all of them are correct, but each is only seeing part of the bigger picture. These individuals are each talking about different aspects of what makes a brand successful:

• Person A focuses on LG's creative brand identity.
• Person B highlights Highland’s brand recognition and customer loyalty.
• Person C speaks to Xiaomi's ability to expand and grow its brand assets.
• Person D emphasizes P&G’s organizational structure and management efficiency in brand governance.

Such discussions are common in businesses, where everyone has their own perspective, but often they aren’t discussing the same thing. Without a unified understanding, a well-planned debate can quickly spiral into a disjointed conversation.

In today’s information-driven world, where everyone can be a media influencer and KOLs position themselves as branding experts, consumers’ perceptions are easily shaped by opinionated columns and fleeting trends. New terminologies and marketing tactics challenge traditional understandings of branding and often confuse businesses.

However, despite the constant evolution of brand strategies, the fundamental nature of a brand remains unchanged. Much like how people in the past used horses or carriages and today use cars, the essential concerns—speed, safety, convenience, and status—remain the same.

When it comes to branding, there are four core principles that form the foundation for all brand theories:

A Brand is a Distinct Name and Symbol

A brand is fundamentally a name or logo that distinguishes a company and its products. (This corresponds to Person A’s comment about LG.)

A Brand Reflects Customer Perception

A brand represents the image it holds in the minds of consumers. (This aligns with Person B’s view of Highland Coffee.)

A Brand is a Commercial Asset
A brand accumulates value over time and contributes to the company’s overall business worth. (This mirrors Person C’s view of Xiaomi.)

A Brand is a Framework for Organizational Management
A brand helps guide the company’s operations in marketing, production, and business strategy. (This reflects Person D’s perspective on P&G.)

1 - A Brand as a Distinct Name and Symbol

The English word "brand" originates from the Old Norse word "Brandr," meaning to burn. In ancient times, farmers would brand their livestock with hot iron to distinguish their property from others.

During the Middle Ages, European artisans adopted similar practices, stamping their goods with unique marks to help customers recognize the source of the product. For example, whiskey distillers would seal their barrels with a distinctive brand to prevent fraud and assure quality.

The Oxford Dictionary defines a brand as "used to indicate ownership, as a mark of quality, or for other purposes." In its earliest form, a brand served as a trade symbol, differentiating products and providing legal protection for the producer while helping consumers identify unique offerings.

In some cases, a brand’s logo or name can determine the fate of an entire business.

2 - A Brand as Customer Perception

When a brand is simply a logo, it’s no different than a signboard in a crowded marketplace, easily overlooked by customers. However, when consumers engage with a brand, make a purchase, and form an emotional connection, that brand begins to represent a perception—this is what we truly refer to as branding.

For example, when you see "Trung Nguyen," you think of strong, affordable coffee. When you see "Highland," you associate it with premium prices and a corporate office vibe.

Why do we react differently to these brands? Each brand creates a unique mental connection. This connection is built over time through various stimuli that form specific emotional and behavioral responses in customers.

For instance, the luxury cosmetics brand Estée Lauder once had Chinese actress Yang Mi as their ambassador. Her elegance and beauty shaped consumer perceptions of Estée Lauder. Even after her role ended, Estée Lauder continued to evoke these associations of beauty and sophistication.

A brand rooted in customer perception goes beyond products; it reflects the creative partnership between a company and its consumers. The positioning theory by Al Ries and Jack Trout is based on this concept.

As business evolves, so do the layers of meaning within a brand.

When companies want to capture a specific market need, they use advertising, design, and media to establish customer perception. For example, Mỹ Hảo owns the perception of dishwashing liquid, and Thiên Long owns the perception of office supplies.

No matter how loudly brands advertise on Facebook or YouTube, the core of their strategy remains the same: building a strong brand perception in the minds of consumers.

(Continued in Part 2...)

By Mr. Feng | November 18, 2020