What is a brand? What does it have to do with wealth creation?

If you talk to one hundred marketing executives you’ll get one hundred and ten definitions of brand. Those definitions range from logos and graphic design to page long definitions about consumer insight and essence.

To me a brand is the bundle of benefits, both emotional and physical, that customers buy from a company every day, profitably.  In the section “resources” you will find some approaches to how this process is created and managed.

At the end of the day, it is the sum of the experience every customer has with a company or even an individual entertainment personality. So company leaders either work hard at defining how they want to be perceived by customers, vendors and employees or they will define their experiences. All together, it is those impressions that form product’s or company’s brand. The pillar of this belief is my consistent experience that 90% of purchasing is emotional, 10% rational, even for hardened engineers.

 At one end of the brand spectrum company automated answering systems describe how a call is important to them, provide ten key options, keep the caller on hold forever and then have a semi – fluent person try to address issues. Net, net, my opinion is those specific companies do not get branding because they are not customer focused.

On the other hand, I visited a company one of my friends led. After checking into the building, one of the administrators was taking me to Jack’s office and said; “I love my job. This is the best company in the world to work for.”  Wow.  They go it and lived it. The company was all about good health, good health for consumers, good health for employees, good financial health.

From my perspective, a company owner’s wealth is derived from establishing a strong brand. If nurtured over time that strength translates to sustainable profitability through economic cycles. It also enables that experience to be translated into the financial community or to executives in companies that are potential buyers of the business when the time comes to transition away from the business.

Thus, strongly branded companies are the platform for sustainable wealth creation.

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