You are either a brand or a commodity
Tags: Marketing, Design, Branding, Brand Strategy

Irrespective of the sector whether real estate, food, automobiles or fashion, the market always tries to force companies and products into a commodity. This is because commodities, like corn or steel, are price driven, and consumers still want the lowest possible price. Take Walmart for example. They’ve done a brilliant job forcing most of their products to behave like commodities. They can wipe out their competition and gain even more price-conscious consumers because they can get products cheaper than almost anyone would

Every small business knows that it’s better to be a brand than a commodity. But what is the difference between a brand and a commodity?

The Difference

Expectations! That is the simple difference between them. When people use or choose a brand, they have an expectation in mind, reverse is the case for a commodity. If Mr. Cole chooses Apple products over Samsung it’s simply because the former meets his expectations not withstanding the cost.

When consumers purchase commodities they try as much as possible to consider cost by going for the least expensive alternative. This simply implies that commodities are products that can easily be substituted for another commodity.

Demand exist for commodities quite alright but there is no qualitative difference across a marketplace.

In contrast, brands create differentiated products which are highly desired by their customer base. Their customers have some degree of brand loyalty, seeking out those specific goods in the marketplace. Brand customers are less likely to substitute products based on price or availability.

Its important to know that brands are built to meet or exceed consumers expectations. How is this achievable?

Brands Connect With Emotions

Humans are fundamentally emotional creatures. The greatest brands, from Apple to Starbucks to Coca-Cola incite immediate emotional reactions just from seeing their logo or hearing their name. They speak our language of emotion and incorporate themselves into our belief systems.

Brands like Starbucks can take a cheap commodity like coffee and get people to buy a $5 cup as part of their daily routine. There are countless ways to get a more inexpensive caffeine fix, and yet Starbucks enjoys legions of loyal fans all over the world. This is because they’ve keyed into a core component of running a top-notch brand: customers get a consistent, positive emotional experience every time they interact with the company.

The critical question for strengthening your brand is to answer the question “how does my company make people feel?”. If you have a great answer to this question, your brand is well on its way to success.

Research shows that the major reason why people like Apple products is because they make the consumer feel like they are a better person for having their product.

Visibility

In addition to an emotional connection, there are three key elements that top brands share: their visibility, size, and brand equity.

Brands are visible. Commodities are invisible. For a brand to stick to the mind of consumers it has be visible. This entails physical locations, outlets, online presence, advertising, brand equity and size. Just to ensure your brand is seen out there. Taking McDonalds for example, with over 14,000 restaurants in the United States these days, you can never be more than 115 miles away from the nearest McDonalds.

But always remember that the goal is to focus on long-term growth over short-term profits while maintaining consistent branding and quality.

Brands Put Long-Term Promise Over Short-Term Profits

Brands create differentiated products which are highly desired by their customer base. Consumers buys promise that meets their expectations.

Does Apple have the best computers in the market? Some might say they do. The simple fact is their customers believe their products are better than anything else, and they’re willing to pay whatever Apple cares to charge.

This is the power of a successful brand. It convinces people to value what you offer for far more than a similar product from a competitor.

Apple would be nowhere if they didn’t hold up their end of the bargain with premium product design and an inviting user interface which is what they boast of, but it’s their brand that ultimately drives their enormous profits.

Conclusion

Phenomenal brands don’t happen overnight or without a lot of painstaking work. Cherish your brand and guard it with your life. It is your lifeblood, even if your business isn’t firing on all cylinders at the moment. Your brand is your identity: if you don’t actively define it someone else will, and it will be nearly impossible to redefine.

Credits: DIY Marketers, Lucky Break Consulting

— Danosagie