Creating brands without knowing: The negative effect

Creating brands without knowing: The negative effect

by | Aug 15, 2023 | Branding, Business, Economy, Marketing

In today’s fast-paced business world, building a strong and enduring brand has become a strategic priority.

However, with the increasing accessibility of design tools and marketing platforms, a worrying trend has emerged: the execution of branding actions without a thorough understanding of their essential fundamentals.

This impulsive approach, lacking technical and analytical knowledge, can lead to a counterproductive effect, undermining efforts and brand perception instead of strengthening them.

Below, we explore three examples that illustrate this phenomenon and highlight the importance of approaching branding with an informed and conscious approach.

1. Mark Disconnected

An entrepreneur, enthusiastic about his new business idea, decides to create a brand without conducting a thorough analysis of his target market and competitors.

Driven by his own personal taste, he chooses colors and visual elements that he finds appealing without considering their relevance to his audience.

The result is a disconnected brand that does not resonate with its target audience and does not convey the company’s values. This lack of research and analysis leads to a superficial and inauthentic perception, driving customers away rather than attracting them.

2. Opportunistic Brand

In an attempt to capitalize on a fashion trend, a company decides to modify its brand identity radically without considering how this will affect its long-term positioning.

Without a solid understanding of the fundamental principles of branding, this company risks appearing opportunistic and disingenuous. While it may gain some initial attention, a lack of consistency with its history and values can alienate its established customer base and erode trust in the brand over the long term.

3. Stalled Brand

An entrepreneur creates a brand without paying attention to the constant evolution of their industry and changing consumer preferences. While their initial approach may be successful, the lack of flexibility and adaptation to emerging trends leads to a stagnant brand.

Without a thorough understanding of how branding can evolve along with the business environment, this brand is relegated to irrelevance as its competitors adapt and thrive.

In conclusion

These examples illustrate the risk of executing branding actions without a deep understanding of its basic principles.

Building an effective brand requires more than mere personal whims or superficial intuition.

The combination of technical, creative and analytical expertise is essential to develop a consistent and authentic brand identity that resonates with the target audience.

Entrepreneurs must recognize that branding is an ongoing process that requires constant research, analysis, and adaptation to make a lasting impact in an ever-changing marketplace.

Brand Essence, Beyond Logos

Brand Essence, Beyond Logos

by | Aug 9, 2023 | Branding, Business, Marketing

In the fast-paced world of branding and brand strategy, we often focus on visual elements such as logos and colors.

But what is a brand? Is it just what we see? In reality, a brand goes far beyond aesthetics.

It is the amalgamation of feelings and thoughts that it evokes in people’s minds and hearts. Let me take you on a brief journey into the heart of what it means to build a powerful brand.

Watch the video, click on the image:

A Brand is Emotion and Perception

Imagine an iconic brand. It could be Apple, Coca-Cola or Nike. What comes to mind? Surely, a flood of emotions and memories. That’s precisely what a brand seeks to achieve: a deep, emotional connection with its audience. A brand is not just a product or service; it is a set of experiences and values that reside in people’s minds.

Three Keys to Influencing Perceptions

Excelencia en lo que Hacemos: No hay atajos cuando se trata de calidad. Si tu producto o servicio brilla en términos de funcionalidad y satisfacción del cliente, estás construyendo los cimientos de una marca sólida. La excelencia crea confianza y, a su vez, cultiva una imagen positiva en la mente del consumidor.

Exceptional Customer Service: Human interactions are the invisible glue that binds brands to their followers. Every customer encounter is an opportunity to demonstrate empathy and authenticity. Treating people with kindness and respect builds lasting relationships and turns customers into loyal ambassadors.

Communicate at the right time: Effective communication is the common thread that connects all facets of a brand. But communicating at the right time is critical. Knowing which social network to use and when to use it. Keeping customers informed about news, promotions and changes shows commitment and creates positive expectations.

A brief reflection

In this fast-paced world, we often forget to stop and reflect on how we relate to brands. Looking beyond the shiny surfaces and flashy logos, we discover that a brand is a set of emotions and thoughts that influence our decisions.

What emotions do you feel about a brand you love? What thoughts do you associate with it? Reflect on how these brands have managed to resonate with you and consider how you can apply these lessons to your own brand strategy.

In conclusion

Ultimately, a brand is the symphony of emotions and perceptions it provokes in people. Through excellence in your products, warm treatment of people and strategic communication, you can intentionally shape these impressions. Remember, a powerful brand resides not only in colors and shapes, but in the hearts and minds of those it serves.

The difference between strategy and strategic planning

The difference between strategy and strategic planning

by | Jul 11, 2023 | Business, Economy, Leadership

In today’s highly competitive business environment, the terms “strategy” and “strategic planning” are often used interchangeably.

However, according to Roger L. Martin, author of the book “Playing to Win,” these two concepts are distinct and should not be confused.

 

 

We will delve into Martin’s perspective on why strategy is not the same as strategic planning, and explore the implications of this distinction for companies aspiring to succeed in their respective industries.

 

Strategy and strategic planning definitions

To understand the disparity between strategy and strategic planning, it is crucial to understand their definitions.

Strategic planning usually refers to the process of setting goals, defining objectives and outlining the steps to achieve them. It involves forecasting and budgeting, and often leads to a detailed roadmap for the future.

Strategy, on the other hand, involves making decisions about where to compete and how to win. It is a concept that requires a deep understanding of the business environment, the competition and the company’s unique capabilities.

Strategy as a choice

As Martin explains, strategy is fundamentally about making decisions.

A sound strategy helps a company differentiate itself from its competitors and leverage its unique capabilities.

It involves answering critical questions such as which customers to serve, what needs to satisfy and how to provide value in a differentiated way.

Strategy sets the direction of the organization, guiding decision making and resource allocation.

However, strategic planning tends to focus more on the execution and implementation of predetermined objectives than on strategic decision making. It tends to be more concerned with the process of creating plans, budgets and schedules, without necessarily exploring the underlying logic and competitive advantage.

The strategy is to make decisions

He goes on to tell us that strategy is fundamentally about making decisions.

A sound strategy helps a company differentiate itself from its competitors and leverage its unique capabilities.

It involves answering critical questions such as which customers to serve, what needs to satisfy and how to provide value in a differentiated way.

Strategy sets the direction of the organization, guiding decision making and resource allocation.

Strategic planning, however, tends to focus more on the execution and implementation of predetermined objectives than on strategic decision making.

The pitfalls of strategic planning

Strategic planning is undoubtedly important for organizations to align their activities and ensure effective execution, although Martin argues that overemphasis on this process can lead to strategic failures.

When companies rely solely on strategic planning, they tend to stick to existing formulas and follow industry conventions.

This approach does not usually take into account the changing dynamics of the market or encourage innovation and adaptation.

Strategy, on the other hand, forces organizations to think critically about their industry, their competitors and their value proposition.

It encourages companies to continually question their assumptions and be open to new possibilities.

By emphasizing strategy over strategic planning, companies can foster a proactive and dynamic mindset that allows them to stay ahead of the curve.

The role of strategy in sustained success

Martin’s argument is that strategy, as a discipline, should be a continuous practice and not a one-time event.

Developing a coherent and robust strategy requires constant analysis, learning and adaptation.

It involves engaging with the broader business ecosystem, understanding changing customer needs and exploring new opportunities.

Strategic planning, which is important for execution, must be a tool at the service of a well-defined and evolving strategy.

By prioritizing strategy over planning, organizations can remain agile and responsive, enabling them to seize emerging opportunities and navigate industry disruptions effectively.

Closing

In the book “Playing to Win”, Roger L. Martin emphasizes the distinction between strategy and strategic planning.

While strategic planning focuses on the execution and implementation of predetermined objectives, strategy is about making decisions that differentiate a company and drive its success.

While both aspects are necessary for organizational success, an overemphasis on strategic planning can hinder a company’s ability to adapt and innovate.

By recognizing strategy as an ongoing discipline, companies can foster a mindset that promotes strategic thinking, agility and sustained success.

Adopting this perspective enables organizations to navigate uncertainties, identify new opportunities and stay ahead in an ever-changing business landscape.

Opportunity cost, how it affects businesses

Opportunity cost, how it affects businesses

by | Jun 21, 2023 | Business, Economy, Leadership

In economics, opportunity cost is the cost of an alternative that has not been chosen.

In business, this means that every decision a company makes has an opportunity cost, which is the value of the next best alternative that was not chosen.

For example, if a company decides to invest in a new product, the opportunity cost is the potential revenues and profits that could have been generated by investing in a different product or project.

Opportunity cost is an important concept for companies to understand because it can help them make better decisions about how to allocate their resources.

By carefully considering the opportunity costs of each decision, companies can ensure that they are making the most of their resources and maximizing their profits.

Here are three real-world examples of how opportunity cost can affect companies:

  • A company decides to open a new store in a busy shopping mall. The opportunity cost of this decision is the potential revenues and profits that could have been generated by opening a store in a different location, such as a less busy shopping center or downtown area.
  • A company decides to launch a new advertising campaign. The opportunity cost of this decision is the potential revenue and profit that could have been generated by investing in a different marketing campaign, such as a social media campaign or a direct mail campaign.
  • A company decides to develop a new product. The opportunity cost of this decision is the potential revenues and profits that could have been generated by developing a different product, such as a new line of clothing or a new computer application.

In each of these cases, the company must carefully consider the opportunity costs of each decision before making a final decision. In this way, it can ensure that it makes the most of its resources and maximize its profits.

Here are some tips to help companies understand and manage opportunity cost:

  • Identify all possible alternatives. Before making a decision, it is important to identify all possible alternatives that could be chosen. This will help the company understand the full range of opportunity costs associated with each decision.
  • Quantify opportunity costs. Once all possible alternatives have been identified, the company must quantify the opportunity costs of each decision. This can be done by estimating the potential revenues and profits that each alternative could have generated.
  • Once the opportunity costs of each decision have been quantified, the company can make a decision that maximizes profits. This means choosing the decision that has the highest potential return on investment.

By understanding and managing opportunity cost, companies can make better decisions on how to allocate their resources and maximize their profits.

Your ego can hurt the company

Your ego can hurt the company

by | Jun 13, 2023 | Branding, Business, Marketing

A big ego can be a good thing in some situations….

It can give you the confidence to take risks and succeed.

But when it comes to running a company, a big ego can be a huge liability.

Here are some of the ways ego can hurt your company:

  • Lead to poor decision-making. When executives are more concerned about their own reputation than the success of the company, they are more likely to make decisions based on emotion than logic. This can result in bad investments, missed opportunities and even financial ruin.
  • Creating a toxic work environment. When executives constantly put themselves first, they can create a hostile and stressful work environment for their employees. This can lead to high turnover, low morale and decreased productivity.
  • Damage the company’s reputation. When managers are seen as arrogant or self-serving, it can damage the company’s reputation with customers, investors and the general public. This can make it difficult for the company to attract new business and raise capital.

Here are some examples of how management ego has hurt companies:

  • In 2008, Lehman Brothers CEO Richard Fuld refused to sell the company even when it was clearly in trouble. Fuld was so convinced of his brilliance that he believed he could turn the company around. But his ego led him to make a series of bad decisions that ultimately led to the collapse of Lehman Brothers.
  • In 2016, Uber CEO Travis Kalanick was forced to resign after a series of scandals. Kalanick was known for his aggressive and demanding management style. He created a toxic work environment where employees were afraid to speak up. This eventually led to a revolt by Uber employees and investors.
  • In 2018, Tesla CEO Elon Musk was forced to resign as chairman of the company. Musk had a history of making controversial statements and engaging in erratic behavior. This ultimately led to a shareholder revolt and a settlement with the Securities and Exchange Commission.

These are just a few examples of how executive ego can hurt companies.

If you are a manager, you must be aware of the dangers of ego and take steps to keep it under control. Otherwise, you may jeopardize your company.

Here are some tips to keep the ego at bay:

  • Be humble. Remember that you are not the only person who matters. There are other people just as smart and talented as you.
  • Be receptive. Don’t be afraid to listen to what others say, even if you don’t agree with them.
  • He’s willing to admit you’re wrong. It’s okay to make mistakes. The important thing is to learn from them.
  • You are willing to give credit where credit is due. Don’t take all the credit for success. Share the credit with your team.

If you follow these tips, you will be able to control your ego and contribute to the success of your company.

Grow your business brand equity

Grow your business brand equity

by | Jun 6, 2023 | Branding, Business, Marketing

Brand equity for a business is the effect on revenue beyond the product.

It is based on name, reputation, and image. Strong brand equity can help a company to:

  • Attract new customers
  • Increase customer loyalty
  • Get a higher price
  • Expanding into new markets
  • Reducing marketing costs

How does brand management benefit companies?

Brand management is the process of creating and maintaining strong brand equity.

It involves developing a clear brand identity, positioning the brand in the marketplace and communicating the brand’s value to customers.

Brand management can benefit companies in a number of ways, including:

  • Increased sales: A strong brand can help a company attract new customers and increase sales.
  • Increased profits: A strong brand can help a company obtain a premium price for its products or services.
  • Cost reduction: A strong brand can help a company reduce marketing costs, as customers are more likely to buy from a well-known and trusted brand.
  • Increased market share: A strong brand can help a company increase its market share.
  • Improved employee morale: Employees are more likely to feel proud to work for a company with a strong brand.

Five real values of brand equity in global companies

In today’s global marketplace, brand equity is more important than ever. A strong brand can help a company to:

  1. To attract new customers. In a world where there are more choices than ever, consumers are more likely to choose a brand they are familiar with and trust. A strong brand can help a company stand out from the competition and attract new customers.
  2. Increase customer loyalty. A strong brand can help a company build customer loyalty. Loyal customers are more likely to buy products and services from a company again, even if lower-priced alternatives are available.
  3. Get a higher price. A strong brand can help a company command a premium price for its products and services. Consumers are often willing to pay more for products and services from brands they trust and value.
  4. Expand to new markets. A strong brand can help a company expand into new markets. When a company enters a new market, it is often at a disadvantage against established brands. However, a strong brand can help a company overcome this disadvantage and gain market share.
  5. Reduce marketing costs. A strong brand can help a company reduce marketing costs. When a company has a strong brand, it is often easier to reach new customers and generate sales. This is because consumers are already familiar with and trust the brand.

Conclusion

Brand equity is a valuable asset for any company.

It can help a company attract new customers, increase sales, reduce costs and expand into new markets.

 

If you want to grow your business, it is important to invest in brand management.