Branding Takes on a New Meaning
The American Marketing Association defines a brand as, “a name, term, design, symbol, or any other feature that identifies one seller’s goods or services as distinct from those of other sellers.” Historically, the term “brand” has been used to associate organizations with tangible names and symbols, but as the world has become increasingly connected, the term has adopted intangible values and raised new demands. Now, brands are far more complex than a few physical associations, rather, brands are, “created and influenced by people, visuals, culture, style, perception, words, messages, PR, opinions, news media and especially social media.” (Cohen, 2020) The definition of “brand” has evolved into the sum total of how someone perceives a particular organization or individual, and the practice of “branding” refers to the art of shaping that perception. (Cohen, 2020)
Creating Value
Looking into 2022 and beyond, an important strategy for successful brand building is creating intangible assets. According to the 2022 Edelman Trust Barometer, businesses are the second most trusted agents of positive and effective change, whereas government and media have severe public distrust. (Edelman, 2022) Today, brands are expected to be the leading organizations for driving social change around the globe and implementing sustainable practices in all areas of operation. 58% of consumers buy or advocate for brands based off their beliefs and values, and 60% of people choose to work at an organization because of the same reason. Not surprisingly, 88% of institutional investors subject environmental, social, and corporate governance (ESG) to the same level of scrutiny as financial operations and performance. (Edelman, 2022) Social and environmental leadership is no longer an added bonus to a brand; it is an essential intangible asset that an organization must have to build a positive brand perception in the minds of stakeholders.
Two key trends in building brand intangibles in 2022 are company leaders acting as the face of change, and organizations bridging the authenticity gap. Referring to the 2020 Edelman Trust Barometer, CEOs are expected to be the faces of change, meaning they communicate their public policies to internal and external stakeholders using personable channels like face to face or live video. Brands with organizational leaders using high-context communications have an advantage in building intangible brand values like trust and loyalty. 81% of consumers say CEOs should be personally visible when discussing the impact of their organization on society, and 60% of employees say they expect CEOs to speak publicly on social and environmental issues. (Edelman, 2022) There is an expectation for CEOs to inform and shape conversations and policy debates around the economy, wage inequality, global warming, discrimination, education, and more. (Edelman, 2022)
The emergence of brand leaders coincides with the next major global branding trend, bridging the authenticity gap. Global reliance on digital communication has closed the distance between organizations and stakeholders, thus a natural demand of authenticity has grown in today’s consumers. In a survey done in the US, UK and Australia conducted by Stackla, 90% of consumers said authenticity was important when deciding which brands they supported. (Stackla, 2019) While 91% of marketers claimed their content was authentic, 51% of consumers said less than half of all brands they interacted with created content that resonated with them as authentic. There is a divide between what brands think is working, and what truly is working amongst their audiences. Organizations and their leaders must find alternative ways to understand their international audiences and build universally authentic perceptions.
Sources
Cohen, H. (2020, October 6). 30 branding definitions. Heidi Cohen. Retrieved February 18, 2022, from https://heidicohen.com/30-branding-definitions/
Edelman. (2022). 2022 Edelman Trust Barometer. Edelman. Retrieved February 19, 2022, from https://www.edelman.com/trust/2022-trust-barometer
Stackla. (2019, June 19). Consumer & Marketing Perspectives on Content in the Digital Age. Stackla. Retrieved February 19, 2022, from https://stackla.com/resources/reports/bridging-the-gap-consumer-marketing-perspectives-on-content-in-the-digital-age/