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Jane Cavalier

Management

Six Things Every CEO Needs to Know About Branding

Managing the human side of business in a volatile world

Published: Tuesday, June 7, 2022 - 12:02

We live in an upside-down world where the old rules no longer apply. Many call it a VUCA world—volatile, uncertain, complex, and ambiguous. Mass consumerism is being challenged by a new consumption paradigm. People are driven by a new essentialism where things matter less, and relationships, experiences, and self-being dominate all. In this new world, workers are restless, customers fickle, investors skittish, and the public has an appetite to cancel.

In order to rally customers—and employees—to stand behind a company and its path during all the ups and downs, leaders must draw upon emotions because rationality will not carry the day. They have one tool at their disposal to do this delicate work: the brand.

Although often associated with marketing, brands are actually cultural icons that carry symbolic meaning. In just a nanosecond, they evoke common, immediate meaning and emotions across all people. Think BMW, John Deere, Chanel, Apple, and American Express. In a world where everything is uncertain, brands can be trusted to stand true.

Now, if you don’t have a brand, you can build one. Anyone can. It takes commitment to people to tell their story and represent their interests—not your own—with your brand. If you create a brand that represents the highest common denominator between your people (e.g. customers, employees, investors) and your products or services, then you can forge an enduring powerful partnership that will yield surprising dividends for your business. It all begins with understanding the basics of what a brand really means for a business.

A brand resides in the mind, not in a logo

Although expressed in a logo and a tagline, a brand is actually a mental construct that gets into the mind and lives in people’s memory. Branding is the process of creating the brand in the minds of people. It is typically done by creating things and experiences that “express” the brand, such as marketing materials and product design. Brands also live in the culture. Powerful brands like Nike become social concepts and exist in the culture, where they continually give people cues and establish the brand as a part of society.

Brands set meaning

Brands give meaning to products. Is an antilock braking system (ABS) a breakthrough in performance (as with BMW) or safety (Volvo)? That depends on the brand. The brand is a mental lens that provides immediate meaning. A Snickers bar is a snack. Tiffany means quality and luxury taste. Apple is about unleashing creativity, while IBM is about improving productivity. The brand provides context that tells people why a product is important to them.

Brands carry emotional power

Like great art, brands are designed to elicit a response, both emotional and rational. Like art they can enchant and often captivate people, which creates desire. Marlboro was the first filter-tipped cigarette and was initially launched as a woman’s cigarette, which failed. The same product was rebranded as the ultimate masculine smoke, and with the swagger of the Marlboro man, remains one of the most powerful brands in the world. Powerful brands are mythologies that evoke emotions that swell to desire.

Brands are fiction, not fact

Branding is poetry, not journalism. Messaging matrixes and value propositions belong to marketers and are fact-based. Branding is another world that is concept-based. Branding brings out the big gun—an idea, a powerful, transcendent, mind-tweaking idea designed to engage the mind and heart at another level. The idea is what catalyzes new behavior and thinking. When Tide gets clothes clean, it means that Mom and Dad are good parents and conveys that message. The Home Depot is a large hardware store, but the brand makes it a home center for any current and aspiring do-it-yourselfer.

Brands defy logic

When you have a powerful brand, you’ll be surprised by what it can do. You will see strong conviction and commitment across employees, customers, and investors despite challenges. People tend to defend the brands they love and stay loyal against all odds—including better alternatives, cheaper alternatives, and easier alternatives. To achieve that kind of priceless cohesion, you must build and continually maintain the brand campfire and make it into a bonfire for the whole world to see. At John Deere, they say people bleed green because the brand is so deep.

Brands deliver business value multiple ways

Because powerful brands are sticky, they can build a moat around the business. Customers remain loyal even in the face of superior-performing or lower-priced competitors. People forgive and forget product and corporate errors, which mitigates losses. People are more willing to try new products, services, and experiences from brands they love, which accelerates sales. If you have a vision to build an empire, create a brand to amplify the upside and mitigate the downside.

Many corporate executives view the brand as simply a marketing asset. Others, like Steve Jobs, Bill Gates, Richard Branson, and Elon Musk, view it as a corporate asset, part of the business strategy. Once built, a powerful brand can be used to wield influence in many circumstances, from Main Street to Wall Street to Capitol Hill. While products and executives may come and go within a company, the brand can endure forever as long as it is well maintained.

In a world of fake news, where people are becoming increasingly unmoored, and where constant shocks and disruptions seem to prevent “normal” from ever being a reality, brands are a reassuring presence that people can depend on. Powerful brands nurture the people who come to work, buy products, and invest in these companies. Business always comes down to connecting with people on a human level.

Powerful brands are creative concepts that stimulate the imagination and emotions in ways that most CEOs can’t. With a powerful brand, the CEO has a tool to open minds, raise hearts, command attention, bring everyone together, and protect the business in a volatile, uncertain, complex, and ambiguous world.

Discuss

About The Author

Jane Cavalier’s picture

Jane Cavalier

Jane Cavalier, CEO and founder of BrightMark Consulting, is a nationally recognized brand strategist, board member, blogger, and author of a best-selling business book, The Enchanted Brand (Amazon). Cavalier helps organizations conquer a changing world with powerful brands and reputations. Recognized for creating breakout brands such as Snapple and Qwest, Cavalier has worked with more than 100 organizations, including American Express, Johnson & Johnson, ExxonMobil, and the U.S. Navy.