Articles

Branding

By Daniel Oromaner

Editor's Note: This article will comprise the Branding Chapter in the Entrepreneur's Toolkit to be jointly published in 2005 by CTEK and the Denver Metro Chamber of Commerce. Daniel Oromaner is President of The Qualitative Difference.

Branding is a critical part of marketing and should begin at the very first stages of a new business. It includes the careful creation/selection of the company name, logo, corporate colors, product name(s)--and possibly product logos. The names and graphics should be created with a clear image of the audience in mind, and need to convey positive messages to prospects, investors and customers. In addition, the availability of trademarks and website domain names must be used as selection criteria. In some cases international availability and translations must be included in the selection matrix. While many new companies take the "easy" route of using the founder's last name or initials for the company name, unless you are a legend like John Elway, this is often ill advised. Do you think Google, StorageTek, Microsoft or Celestial Seasonings would have been as successful if they had been named after their founders?

Once a product is launched, maintaining the integrity of the brand and its image deserves careful attention. Websites, marketing brochures, newsletters and even business cards need to have a uniform look and feel. Further, the brand image must be nurtured by careful selection of advertising and promotions, public relations, quality control, hiring practices--even corporate sponsorships. The company's brand is the unique representation of that company to the world. Successful brands that have established a position of trust and recognition in the public's minds are immensely valuable. Think of the images that come to mind when you see or hear Dell, IBM, H-P, Intel, Sun, Cisco, Microsoft, Amgen--that's the result of management excellence and strong branding.

Tips for the Idea Stage of a New Business

At the inception of a business or business idea, branding should be considered. Too often the entrepreneur assumes the name doesn't matter, or can be changed. Yet, sufficient corporate will--and budgets--to improve poor initial name/image choices are rarely found as the business matures. Therefore the company name and logo should be right from the beginning. They should be unique, relate to the industry, and should convey one or more positive attributes.

Before advancing to the next stage, be sure that:

1. The company has a name that is available legally and on the web, is easy to pronounce and spell, and provides positive brand imagery.
2. The key products are named in a distinctive manner, with images that contribute to the perceived value and make the creation of advertising easier.
3. Appropriate logos and color theme choices are selected.

Tips for the Development Stage

As the products are being developed, establishment of the brand image and brand positioning should be planned. Key questions are:

• How should these products be perceived by the market regarding price, innovation, quality and effectiveness?
• How can all marketing communications and branding be aligned with the intended product positioning?

Before advancing to the next stage, be sure that:

• The marketing plan includes extensive brand analysis for the products and competitive products and a clear position for the products vis-a-vis competitors has been determined.
• A website, advertisements, brochures and all necessary pieces of marketing collateral have been created and audited by the Marketing Department to make sure they present a consistent brand image and reflect the intended brand positioning.

Tips for the Launch Stage

Marketing research needs to be conducted to determine whether the product and its branding are perceived by prospects as intended. Minor changes in copy and execution should be carried out to better tailor the product's brand image in the minds of the prospects and customers.

Before advancing to the next stage, be sure that:

• All brand and positioning assumptions have been tested in the market place through sales analysis and/or market research.
• The products are satisfying customers' unmet needs.
• Revenues and profits are increasing--and additional marketing funding is available.

Tips for the Growth Stage

By this point, management knows the products have successfully found a market niche, and the numbers of satisfied customers are growing. To take the company to the next level, additional marketing support is required. All previous advertising and promotion approaches should be evaluated on an ROI basis. Non-performing expenses should be cut or eliminated. Additional funding should be supplied to advertising approaches that have worked, and new methods and media should be tried to increase the market penetration of the products and improve the brand recognition amongst all potential customers.

Copyright 2005 CTEK (www.ctek.org) and The Qualitative Difference, Inc. all rights reserved.