What is a brand?

What is a brand?

“Products are made in a factory but brands are created in the mind.”
— Walter Landor

Take a look at the image above.

Both pairs of shoes have the same design and are made from identical materials.

Yet while many people will happily pay £120 for the shoes on the right, they probably won’t pay more than £30 for the ones on the left.

Logically this makes little sense. But human behaviour is rooted in emotion rather than logic.

The shoe on the right appears more valuable because the Nike “swoosh” logo evokes a series of thoughts and feelings in our minds.

The “personality” that emerges from this complex interplay of associations is the brand, and it adds a value that goes far beyond the physical or functional properties of the product.

This is why we’re happy to pay more for a pair of Nike shoes (and may even sometimes feel like a pro athlete while wearing them 😉).

Successful brands establish a ‘collective’ meaning, where even those who don’t buy the brand understand what it stands for.

This shared meaning is built over time from repeated exposure and requires consistent and focused marketing.

A compelling, distinctive brand identity provokes an emotional response - as with any personality we are attracted to, we seek to build “relationships” with our favourite brands.

Once formed, these relationships can be powerful and enduring.

An example of this durability came in the aftermath of the Thomas Cook travel company’s collapse.

While the 555 Thomas Cook high street shops were sold for a total of £6 million, the “Thomas Cook” brand fetched a price of £11 million!

Want to get rich? Then learn to pay attention.

Want to get rich? Then learn to pay attention.

What is confirmation bias?

What is confirmation bias?