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Branding Ideation
What is branding ideation? Why is it so crucial to the success of a business in a winner-take-all- market? Let’s dive in.
Firstly, let’s break down exactly what branding ideation means. What we call branding ideation is the process of empathizing, defining, ideating (forming ideas), prototyping, and testing. Understanding what the consumer is seeking and needs is the jumping-off point of this process and something I’ve seen too many business owners get in the way of. How a business wants to portray itself and what is a market fit can often be two different things. Let’s go through ten important pieces that will allow you to better understand this vital first step to building a long-lasting brand foundation.
1. Differentiation: In a crowded marketplace, branding ideation helps a company stand out from its competitors. It allows a business to create a unique and memorable identity that sets it apart, making it easier for customers to recognize and choose it over other options. As simple as this sounds, it’s surprising how the smallest details can make a large impact, e.g., All the competition is leaning on one color hue for their website so by merely picking a different shade, you already stand out.
2. Identity and Personality: Branding ideation helps define a company’s personality and values. It gives a business a clear sense of who it is and what it represents. This, in turn, attracts customers who resonate with those values and personality traits. I use this example too often but Apple (and much of it still a legacy of Steve Jobs) really set the bar for everyone else, a large reason why their market cap is nearing $3T as I type this. Dell builds fine computers for instance, but Apple can charge 2x because their ethos of, “Think Different,” resonates with their audience that doesn’t merely want to conform. Of course, one could argue they are conforming for buying in, but it works. Sidenote, “Think Different,” was a cheeky response to IBM’s, “Think,” campaign.
3. Consistency: A well-defined brand identity ensures consistency in all marketing efforts, from the logo and color scheme to messaging and tone of voice. This consistency builds customer trust and credibility and helps create a cohesive brand experience. While this might sound simple in practice, it really needs to be thought of early in the ideation process to make a brand not come across as haphazard. When you think of Coca-Cola you likely see the color red in your mind right away and that’s because they are amazingly persistent across all mediums they present themselves.
4. Customer Connection: Effective branding ideation enables a company to connect with its target audience on a deeper level. When customers can relate to a brand’s story, values, and image, they are more likely to become loyal and engaged customers. We are tribalistic by nature, it dates to our basic instincts of aligning with people we would be safe amongst. In this day and age, customers want to understand why you do what you do. What’s the motivating reason for existing? Just to sell something won’t cut it.
5. Perceived Value: A strong brand can command higher prices for its products or services. Customers are often willing to pay more for products from brands they trust and perceive as high-quality. If your audience can understand what makes you different and better, they will pay for the difference. This is the reason certain industries such as insurance or telecommunication have high churn and thus spend an enormous amount on advertising. Since it’s hard for the consumer to truly understand the value proposition between Geico and Progressive, for instance, these companies must come up with never-ending clever marketing campaigns and spend, spend, spend. Geico spent over $1.5B in 2022 across all media channels.
6. Brand Loyalty: Building a strong brand through effective ideation can lead to brand loyalty. Customers who have positive experiences with a brand are more likely to become repeat buyers and brand advocates, helping to drive long-term success. It’s all about lifetime value, repeated often but not always truly understood. Businesses that play the long game of retaining their customers will rise above the others who are just looking at the next quarter’s earnings as their moving target. No matter if your goal is to build and sell or run your company for the next few decades, you want (need) the loyalty of your customers. Plus, they often will do the marketing for you for free!
At the turn of the 21st century, BMW was an engineering-driven company, and they hands-down made the best driving vehicles in their class and thus turned their customers into their spokespeople. One could argue that in 2023 they carry quite a different mindset but to this day they still have one of (if not the largest) gatherings of a brand’s automotive enthusiasts in California every spring, known as Bimmerfest. Most businesses could only dream about having 20,000+ of their customers gather to celebrate their passion for the product.
7. Expansion and Diversification: As a business grows and diversifies its offerings, a well-established brand can make it easier to enter new markets or introduce new products. Customers who trust the brand are more likely to try new offerings from the same company. This position a company finds itself in is a defining point where the integrity of its brand is pressure tested. Can you appeal to a larger market and sell more, without losing sight of your core values? Your brand champions have made an emotional connection with your company, and they don’t want to feel like you are leaving them behind for the all-mighty dollar.
8. Marketing Efficiency: With a clear brand identity, marketing efforts become more efficient. You can create targeted campaigns that align with your brand, making it easier to reach and convert your ideal customers. If you can effectively convey what makes you different and better, along with why you do what you do, you will be able to spend far less to make a meaningful impact. As mentioned earlier in perceived value, industries that have little differentiation will often result in high churn and necessitate large advertising spends to stay profitable.
9. Risk Mitigation: A strong brand can help mitigate the impact of negative events or crises. When a company has built a positive reputation over time, customers are more likely to forgive and continue supporting the brand during challenging times. We see this all the time, one misstep and all that loyalty you painstakingly built over time can vanish in a second. Double this if you are an industry that already has a negative connotation associated with it. Taking the time to build trust with your customer base will make any speed bumps in the future far easier to navigate.
10. Long-Term Growth: Effective branding ideation isn’t just about short-term gains; it’s about building a foundation for long-term growth and sustainability. A strong brand can withstand market fluctuations and changes in consumer preferences.
More than ever, society moves at whiplash speeds, what is accepted, and the norm today may be banished to the scrap heap next week. Building this into your company’s DNA from the inception sets you up with an armor of sorts that can take the hits and come out unharmed over time. Staffelter Hof Winery, located in Germany, has been producing wine for over 1,150 years and while I’m not so sure they intended for this back in 862 C.E., one has to think there is something more than just good wine working in their favor.
Ultimately, this foundational process known as branding ideation has a considerable impact on a company’s ability to attain market share, scale, and persist over time. Put the effort in from the earliest stages and you will be able to persist for many years to come.
Author | Tyler Vaughn