Can I let you into a secret? I’m pretty sceptical when it comes to discussions of strategy that centre on branding. 

This might seem an odd thing for a marketer to admit to – it would be my bread and butter, surely? I do believe that branding is important, it’s just that sometimes the discussions about it enter the realms of complete nonsense and the actual core of the business (the product or service being sold) becomes lost under the flurry of ‘higher order’ promises. 

Tom Fishburne sums it up brilliantly. 

To me, good branding is neither the very basic ‘let’s do a logo’ or the completely-detached-from-reality focus group retreats on ‘brand purpose’ (when your company sells paper clips). It should run deeper than that.

Take the article that revealed that Queen Elizabeth’s personal brand has been valued at $50 billion. 

It’s a meaningless statement. If I had $50 billion I wouldn’t be able to buy ‘the brand’ because the Queen is an intrinsic part of it. And I don’t think her majesty would either allow or appreciate being bundled up in the deal as ‘goods and chattels’. 

Back to the world of business. There are many high-profile start-ups which rely on an over-hyped brand to generate the income needed to scale – and hopefully become profitable. If it works out, then the brand ‘promise’ has made good. And if it doesn’t – then the effort that went into the branding may just be revealed as part of a fraud (as with Theranos). 

When does a focus on branding over product pay off?

In a fiercely competitive market, where the products have little to differentiate them, then this focus on branding makes perfect sense. It’s not bullshit – it’s a competitive strategy. 

Take perfume. At its core, it’s a concoction of about 90% alcohol and 10% perfume oils. These oils may be based on anything from plants, chemicals or animal secretions (nice!) The benefit it offers is the fragrance, which is completely subjective. Some people will like it – others will hate it. 

Apart from the colour of the liquid and the bottle, the fragrance is all the actual product has to help it differentiate itself from all the other perfumes in the market. 

This is a highly competitive industry, worth billions – and ‘branding’ is the only real battleground the companies have to win market share or differentiate themselves. No wonder so much energy goes into creating statements about brand purpose and promise to ensure the messaging is correctly aligned across all the ranges and really ‘resonates’ with the target consumers – billions of dollars are riding on getting it just right. 

So when Ralph Lauren promises ‘dreams of a better life’, it’s a real strategic move to ensure the company’s success. 

How can a typical B2B SME make the most of branding?

The situation for many of these small business to business companies is that they are very product-based. (I’m not talking here about the small agencies or service providers, which are a whole different story.)

Because these products are, in the main, practical, low-key and functional, the area of competition is usually based around the product features. And the main route to market will be via a sales team – either on the phones or out ‘doing the rounds’. 

There will be a logo on the products, stationery and the literature (brochures, datasheets). They may even be a set of guidelines for colours, font and logo use in adverts and the like.  

This is worlds – galaxies – away from the focus on branding in the luxury end of consumer goods. The full annual marketing budget of a small B2B company would not even be a rounding error for one of the consumer brands. 

But – after beginning this post describing my scepticism of ‘branding bullshit’ – I want to put in an argument that a stronger focus on branding is important even for the tiniest company. And by ‘branding’ I mean taking an holistic approach and moving beyond the logo and graphic design elements to encompass the broader purpose – while keeping clear of the bullshit.

Never underestimate the importance of intangible assets

My first lesson in business was when I was about eight and my father and his colleague bought the business they worked for when the original owner retired. Being a nosy child, I listened in on the discussions between my parents and asked lots of questions. 

The term ‘good will’ really caught my imagination: as well as the stock, tools and all the other equipment, this was something else that had a price and was part of the deal. At the time it was explained to me in terms of paying for the existing customers, suppliers and the good reputation that had been created over the years. 

Seems to me like there’s a lot of crossover with ‘brand value’. Customer loyalty, and the intangible asset of a ‘good reputation’. 

Once they were running the business, what came first, second and third was the work. Doing the best job possible for the customer, with pride and dedication. Meeting – and usually exceeding – expectations day after day, year after year and really building the ‘good will’ they had bought. 

Maybe it was just a focus on doing the work, or maybe it was a canny sense of creating a deeper ‘brand story’, but they made very few changes to the way the premises looked, and even kept the old owner’s name.  Photocopied pages from late 19th Century street directories blu-tacked to the wall made the discrete statement ‘We’ve been here for years. You can rely on us.’ Possibly returning customers felt reassured that although it had changed hands, there was a strong sense of continuity.

Even if it was accidental, this low-key ‘brand story’ suited the business because it was based on a traditional hand-craft. But it came after the core offering: providing customers with an excellent service. Without that part, the old-fashioned, shabby office and cluttered workshop would have been seen as tatty and disorganised, rather than a charming time capsule of a bygone age.  

What I’m getting at here, is that no amount of brand consultancy or work on vision statements is going to help a business if that core offering (also known as hard work) isn’t there. The intangible assets are only valuable if they are built on a very solid foundation. 

What can small B2B companies learn about brand equity? In a practical way?

You can describe success in hundreds of ways, but what it really boils down to in business is this:

A successful brand or company has more customers and/or bigger profits than its rivals. 

Once a company is established and is operating in a competitive consumer market, having a distinctive brand is going to give them an edge in gaining new customers and help to retain loyalty. But few companies can sustain long-term growth or success if there is no substance behind the branding. 

For a small business to business company ‘brand substance’ is even more critical. Yes, people who buy for businesses are people and emotion will come into the decision. But they are also often professional purchasers who have targets and a boss who will pull them up if they start to make doubtful decisions based on a fuzzy warm feeling. Even if they are not purchasing professionals, most often the decision to buy will be run past a large number of people before final approval. The brand might catch attention, but that alone will rarely seal the deal. 

These buyers are also often less forgiving of a bad experience because it may have left them exposed to criticism. 

Paying lip service to branding in the form of a generic mission and vision statement plus the a logo and colours that form the brand identity is only skimming the surface. If it’s just seen as a marketing exercise and doesn’t touch the core of the business, it’s probably going to be a waste of time. 

The real purpose of the mission and vision statement is to define how the whole company acts and forms a promise of the level of service a customer can expect. It’s there to guide all employees, in all departments and all levels, along the same path.

If a company’s mission statement is ‘We go above and beyond for our customers’, but these customers are left waiting for deliveries and can’t get hold of anyone in support there is no substance behind the branding statement. The company’s reputation – and goodwill – are damaged as a result. 

For a small B2B company, I believe the most important part of their offering is going to be centred on their core service offering. Getting this right is what will establish their reputation and build a strong customer base. 

Developing these relationships is the next critical step – and this is where the brand values and brand purpose come in because it relies on all employees being aligned with the purpose. The mission and values statements are there to guide everybody’s actions at all levels. This is from how people answer phones, to the care they take in answering emails all the way to selecting the right candidates during recruitment. 

‘Brand strategy’ should be inseparable from ‘business strategy’ – and this is why I am sceptical if the focus is on brand alone. 

But what do you think? I’d love to hear your comments – or Tweet me  @sarahllawrence_