Brand strategy has connections that tie back to human psychology, evolutionary principles, and market dynamics. They are the why behind the why of why branding works.
Decision-Making:
Branding clicks. It has a way of connecting in the space between our cognition and decision-making processes. When brands authentically align between the perceptions and expectations of the audience, and with the psychological reasons they make decisions (like seeking consistency or emotional connections), they can be more effective and impactful because they amplify our own biases.
Creating Identity in Crowded Spaces:
Evolution is about more than just survival of the fittest. In nature, evolution is about how species survive because of differentiation. There is something special about a species that is different than that of other species. The same is true for brand strategy. We need to differentiate to survive. In market terms, the identity of our brands (its uniqueness, values, and positioning) ensures our survival amid competition. Branding strategy carves out this unique space where our brands can thrive, and others may struggle trying to do the same thing.
Emotional Resonance:
We talk about clicking into that decision-making space. The click makes consumers feel good because our brains squeeze out a hit of dopamine. It may sound a little crass, but do that often enough and we have a brand addict – a brand evangelist. Brand management is about finding ways to nurture that dopamine hit. If we can fostering and maintain a relationship between our brand and our consumers, they will keep coming back. People often use emotions as shortcuts for decision-making, so brands that can cultivate emotional bonds will drive loyalty and preference.
Market Dynamics:
Branding strategy and management isn't just about understanding consumers but also about navigating the economy and market dynamics. They create the operating system that companies and brands execute from. It is helpful to understand the economic principles of supply, demand, and value perception; this will allow us to better position brands effectively. A good strategy should consider broader forces that may change over time, and see if they can be at the right place at the right time. As an aside, I remember having a Dell PDA back in the time before iPhones became a thing. People looked at me as if I was a two-headed nerdy dragon for using the thing – They would never imagine that within 10 years they would all be using smartphones. Dell arrived too early and couldn’t read the room; they were too far ahead of the curve and their brand strategy reflected that.
Navigating the Forces
We know that branding strategy and brand management are just processes and tools - They help us to navigate the confluence of psychology & behavior, market competition, and societal trends. They are the structured responses that companies (and brand managers) have developed to better understand how to differentiate products and services in saturated markets. We can benefit our companies and our customers when we have a deeper understanding of these dynamics, which will allow us to align our messages better with the very forces they aim to navigate.
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