Do brands still matter?
Do brands still matter?
When my in-laws were in town a few weeks ago, we broached the topic of the importance of brands, or lack thereof, in the current economic climate. Their point of view: branding is dead because of the commoditization of products and services. Consumers now place so much emphasis on low price, the significance of brands is far less significant than it used to be.
Has our culture become so entrenched in finding bargains that potentially higher quality, branded products are part of the past? I can’t argue that consumer expenditures are down and can’t predict how/when buying habits will evolve as we creep our way out of the recession. But I don’t think brands are dead. Here’s why:
1. Trust in brands is eroding, but not completely gone. I’ll still buy my Asics running shoes, not because they are less expensive, but because they never let me down on the quality front. My knees mean too much to me to settle for the low cost alternative. I’ll also buy Hellman’s mayonnaise and Heinz Ketchup because they taste better than private labels.
2. The brand landscape is evolving, but not disappearing. With advances in technology and the personalization of products and services, the brand business is not what it used to be. There’s a reason why there are over 100,000 iPhone applications available today (and still counting).
3. Branding is no longer just about advertising. Media fragmentation has changed the landscape, too. For example, the proliferation of ESPN and its universe has not just altered the sports world, but it has influenced the restaurant industry, too. (Hint: Think Buffalo Wild Wings).
4. Portability is changing the landscape. With iPhones, Kindles and microcomputers, the old “hardware” (e.g., newspapers and magazines) is seeing a serious decline in circulation. This presents new opportunities to reach customers and communicate with them.
5. Social networking is here to stay. Though I’ll always argue that social networking is part of the marketing mix versus the entire marketing plan, there’s no debating the power of social networking. With a potentially explosive word-of-mouth network, companies of all shapes, sizes and industries can’t ignore a trend that’s here to stay.
6. Consumer advocates are more important than ever. What people think of a product, service or image will influence a person’s or company’s ability to succeed. News gets around fast these days (just ask Tiger). There’s never been a better time to understand customers’ opinions, needs and interests.
7. Brands still matter, they just need to be created, evaluated and updated differently than in the past. Companies used to rely heavily on TV commercials to build brands. Those were the days when Rolaids taught us how to spell relief and Oscar Meyer had a way with B-O-L-O-G-N-A. Not that advertising is now irrelevant, there are new and different strategic issues to consider in today’s brand new world.
Branding is not dead. It’s just different. And that means it’s important to understand your brand within the context of a whole new competitive landscape, economic climate and age of information.
