The brand: It’s every company’s most valuable asset.

In an economy like we’ve experienced lately, some advertisers turn to price reductions as a defense. For the short sighted it’s a short term solution. It can also be their brand’s long-term demise. You see, there are numerous reasons to brand, not the least of which is value. First, the notion that brand name products fetch higher prices is true, even in hard times. An article a few years ago in The Los Angeles Times quoted a Sr. VP, account guy at BBDO as saying that the number one brand has a 10% price premium over the number two—40% over the store or generic brand. As well, companies with a strong brand image are more valuable.

Executives at Coke were quoted in Fortune Magazine as saying that if Coke was obliterated off the face of the earth, every stick and brick were destroyed, Coke could go to the bank and borrow literally billions of dollars, based purely on the value of its brand. Further more, companies with good brand recognition attract the best employees. Imagine graduating from engineering school and having two offers – one from Joe’s Toilet and Ballcock Works and another from Moen. Which job are you going to take – maybe even for less money? Right, Moen. Our point here is that if you have a strong brand you can reduce prices for short periods and still regain your position.

(Nobody thinks Neiman Marcus is going out of business when it has a sale.) The less notable brand, however, may quickly become a commodity.

OK, it’s easy for Coke and Moen to demand higher prices and better shelf space; after all, they’ve had decades to establish themselves. But what about the smaller business-to-business advertiser? Nothing is different. A brand is a brand. Its value is something that all advertising agencies are expected to grow. We tell every prospect “we will make you famous for your advertising.” If we fail, their products are susceptible to becoming commodities because that is what all resellers want them to be. Here’s a perfect example: a manufacturer of premium pruning tools decided they wanted to sell through the big box channels. (Lowe’s, Home Depot, etc.) They present their line presentation and after a review, they are accepted. Great! Then they learn how little shelf space they’ll be given, with no headers or merchandising because the big box dictates the packaging and the price they’ll pay. But wait, says the tool manufacturer, we’re a well-known brand in the professional tools category—all the landscapers know us. “So what,” says the big box, this is retail and you’re a commodity here—and your only measurement of value is price.

Ouch!

Next in for their presentation are Scott’s, the well-known seed and fertilizer company. Scott’s says to the big box: we’ll need more shelf space because we’re pushing a new seed. And we have new shelf talkers and signage and we’ll need end-caps, too, for our promotions. Oh, and here’s our pricing strategy. The big box says: You got it! Why? Because everyone knows you cannot be a home improvement store without Miracle Grow on the shelf – that’s the value of the Scott’s brand.

So where does an advertiser start to build a brand name? At the beginning. The definition of a brand is “A claim of distinction.” So start with a discovery process to unearth your unique distinctions. We call our proven process “Turning the Telescope™.” It is what it is—a long, hard look inward. We search the company’s history, its founders, people, products, culture, innovations and so on until we’ve distilled everything down to what we call the Brand Franchise—the three to five unique selling points that no one else has. We’ve started sessions with the client telling us “Good luck, there’s no better example of a commodity than us.” Then, several hours later, we leave with the discovery of a great brand – it happens every time. And not for just big guys. Car dealers, health clubs, public golf courses, homebuilders, local banks, colleges, architects, law firms, widget manufacturers, you name it, everyone has a unique essence just waiting to be discovered.

Once the discovery is made, we begin the branding process. We advertise and promote the brand’s newly discovered and deliverable distinction – constantly and consistently. And we rarely ask them to spend more. But every dollar is spent communicating that distinction. Before long, the buyer at the big box says, “Yes, we’re aware of your brand of widget. If it is really everything we’ve heard it is, we’ll make room for you.”

Bingo!

Value.

A great brand grows from inside out.

We have all heard about branding…it's one of the hottest business topics going. But what is it really? We know that it is so much more than logos, color palettes and swooshes. That's branding and the tactical execution of a true brand development process.

But what if you really do take on the worthy and beneficial task of brand development? First, engage the whole process from a thorough strategic brand assessment, then initiate a brand value measurement research study to establish a benchmark for that all important ROI measurement later on, and follow that with participation in a brand workshop for senior leaders so that everyone's on the same page. Once completed, launch our proprietary process called Turning the Telescope™ to discover the true essence of your brand…the 'brand promise,' if you will. What have you done, what have you learned, what have you created?

What you've done is laudable. You've taken the first and most important step that you could take, and that's believing that proper brand development will lead to improved brand value and company value down the road. You've learned what your brand promise is…or, better yet, you've provided a forum for your brand promise to surface and be discovered.

But the key question is what have you created? Well, it's very simple…you've created an opportunity to move forward and reap the benefits of, maybe, one of the most important, sensible business decisions you've ever made. Or, you've set yourself up to fail miserably.

Why? Because brand development initiatives will almost always fail because you do them (or don't do them) and then forget about them. Or, you take all the energy and effort, and throw it out into the marketplace. But what did you forget?

That you build a brand from within first and always. The brand never grows from the outside. Sure, the outside world benefits and can see your brand promise come alive and serve well. But without nurturing, growing and fertilizing your brand promise from the inside out, you'll never have a brand that truly adds value to your company.

Take the Ritz Carlton, for example. Know that their brand promise is "ladies and gentlemen serving ladies and gentlemen." Think that started with an ad campaign or a direct mail program announcing this new approach? No way. It started from within, from the essence of the company to establish the attitude, approach and style of customer service. It starts with the way you hire your people, with the way you train them, with the objectives and goals you set and the results you expect. It starts with training and desire and a purpose. Because that's what a true brand promise is. It's not a slogan or a logo. It's the evidence that's provided by your company that supports your brand promise. Think toilet paper is less expensive at Wal-Mart? You bet. "Always low prices"—that's the brand promise. Think BMW cars are highly engineered cars for serious drivers? Spot on. They are the "ultimate driving machine."

It's the really true secret of brand development. All the hoopla about building your brand and branding and the corporate identity systems is merely noise in the night unless you really dig deep into your organization.

It starts in your gut—developing, refining and instilling your brand promise…long before you ever go out the door with your first retail shop, ad campaign, product delivery or campaign rhetoric.

So what makes a brand strong? In a recent issue of HR Magazine, an article entitled "Branding Together" stated that if you thought the answer was money spent on ad campaigns, that you should think again. "Consider that Starbucks…hardly ever advertises. It relies on employees as evangelists. That's why HR's total involvement in marketing the company brand internally is vital—through training, communication and staffing. Employees need to be excited about the brand, able to communicate and connect with it, and then radiate that message to customers. Without employee buy-in, the brand's external promise falls flat in the real world of daily customer interaction. Customers hear one thing in the marketplace and experience another with the company. That disconnect can be deadly. Just visit the graveyard of failed attempts to re-brand the likes of Polaroid, Kmart and United Airlines."

It all really comes down to what we call Brand Touchpoints. Many times we forget that, as marketers, we touch and connect with our prospects and customers in so many ways. And each time we touch them in the pre-purchase, purchase and post-purchase experience, we provide them some more evidence to make another emotional decision about our company, our brand and our eventual, continuing relationship with them. Think not? Remember the last surly retail experience you've had? The long line at a counter? The poor information delivered late or not at all? The incorrect billing statement or invoice? All driven and controlled by employees. Given the right dedication and commitment to building a brand the proper way, it's all avoidable.

That's why our Brand Establishment Process, Turning the Telescope, is so effective. It starts the process by searching inward into the heart and soul of your organization to identify and celebrate what really makes your company's product and service unique and different…and then discovers what truly separates you from your competition. Now that's brand development.

And then long before that first ad runs or TV spot airs, you've reinforced, coddled, cajoled and developed this essence within the company to make sure that your true ambassadors and your true brand associates are ready to reflect your brand promise in everything they do. Think we're kidding? We had a Ritz Carlton bellboy put down his green plastic tray of dirty glasses, walk across a lobby and introduce himself to us after he overheard us wondering out loud where a certain bar was in the hotel. He then proceeded to take us to the elevator, open the doors, punch the appropriate floor and direct us in clear and simple directions how to reach our destination. Wasn't asked, wasn't told, wasn't overly paid. Just did it! Ladies and gentlemen serving ladies and gentlemen. Now that's how you build a brand.