Why Building A Brand Is More Important Than Your Product
A common trap for companies is that they often focus solely on the properties of their product. It is based on the false assumption that product properties are the only meaningful basis for purchasing decisions and competitive dynamics. Product is the most important asset, but not the only one.
If to compare Product and Brand characteristics, you’ll see that 👇
The product includes scope (Google organizes the world’s information and makes it universally accessible), functional properties (Volvo is safe), quality/value (Zara sews quality fashionable clothes for a low price), and usage factor (Jeep is designed for being the best off-road trail).
The brand includes some additional points:
Country of origin (Audi has German workmanship).
Association with an organization (Microsoft is an innovative company).
“Personality” of the brand (Bath and Body works is a trademark that embodies energy and life).
Symbols (McDonald’s has a symbol of Golden Arches).
Relationship between the brand and consumers (Pepsi is a friend).
Emotional benefits (Nike gives a feeling of energy and health).
Benefits of self-expression (Apple empowers creativity).
When companies care only about the Product, they:
1) Face problems with differentiation.
2) Can be easily copied.
3) Convert only rational buyers.
4) Limit brand expansion strategies.
5) Reduce strategic flexibility.
The key to developing a strong company is to care about both — Product and Brand. As soon as the product is of good quality and scaled, start working on a branding strategy. This path will help you to move from Good to Great if you know what we mean 🙌😉