Why Branding Is the Next Essential Startup Competency
How much is the most valuable brand in the world, Coca-Cola worth? $77.8B, according to Interbrand's annual brand value analysis. That's 45% of the company's market cap.
Often times, winners create advantages in a market through brands. These brands evoke emotions within consumers: feelings of trust (Visa), of aspiration (Nike), of adventure (RedBull). And if the brand is strong enough, it replaces the generic term: tissues/Kleenex, internet search/Google, glass cleaner/Windex.
In Silicon Valley, we tend to believe that better products win markets. It's atypical to overhear a conversation at Blue Bottle Coffee or at YCombinator about brand building - brand attributes, values, positioning. Instead, our exchanges focus more on technology and more recently, design.
But over the next several years, marketing, branding and positioning, all under-appreciated disciplines in the valley will become markedly more important. As barriers to entry continue to fall driven by cloud technologies, competition among startups will increase and the startups that reach their target customer bases with the best messaging, building the most effective brands, will win.
We know storytelling will be the differentiator. Look at every commodity industry to see the value of branding. Nike makes running shoes. Kleenex manufactures tissues. But they each sell something else - they sell an idea. Nike sells excellence: “Just Do it.” Kleenex sells “taking care of family.”
It's logical that cash conscious startups should limit their investment to measurable marketing tactics. But as startups scale and as technologies commodify faster and faster, branding building investments should become a key part of the marketing efforts of the business.
Ultimately, the brand may become half the value of the company and the true differentiator in the market place. That's nothing to sneeze at.
Marketing and advertising
10yInteresting read. Brands now have to give consumers the best experience ever...if marketers want to achieve top of mind recall and "wanting to be associated with " kind of feeling from consumers.. The way the customer interacts/experiences the brand and consistency of that interaction every time they are exposed to it, be it at the stores activations, or sponsorships by that brand, will be what separates the top selling brands from the least selling brands.
There is no denying that those who make it in business are those who understand human behaviour. How our hearts and minds work. Brandmasters have a cutting edge in appealing to our very emotional G-spot if you like. And that's where the difference is. Branding will be king sooner than later!
Creative Project Director. Global Creative & Production. Content Creation and Localisation. Global Creative Services
10yAbsolutely. What I would add to that is not just brilliant branding, but a brand that offer shared experiences for people across cultures. Globally. Scale is important for start-ups.
“A leader takes people where they want to go. A great leader takes people where they don’t necessarily want to go, but ought to be.” – Rosalynn Carter.
11yIncredibly important to keep in the mix, at a minimum. With advertising and outbound marketing efforts highly focused on ROI and "accountable" as solutions, the winners will employ both tactics when taking a brand public.