Globalization, low-cost technologies and saturated markets are making products and services interchangeable and barely distinguishable. As a result, today’s brands must go beyond face value and tap into consumers’ deepest subconscious emotions to win the marketplace.
The Role Of Brands Is Changing
In recent decades, the economic base has shifted from production to consumption, from needs to wants, from objective to subjective. We’re moving away from the functional and technical characteristics of the industrial era, into a time when consumers are making buying decisions based on how they feel about a company and its offer.
BusinessWeek captured the evolution of branding back in 2001:
“A strong brand acts as an ambassador when companies enter new markets or offer new products. It also shapes corporate strategy, helping to define which initiatives fit within the brand concept and which do not. That’s why the companies that once measured their worth strictly in terms of tangibles such as factories, inventory and cash have realized that a vibrant brand, with its implicit promise of quality, is an equally important asset.”
I’d take it a step further and suggest that the brand is not just an important part of the business — it is the business. As Dale Carnegie says:
“When dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion.”