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Brief History of Branding

and the importance of Brand Experience




Note: this was a presentation given to a group of industrial design students on the topic of branding,
with the aim to encourage critical thinking about branding
History? Why should we care?

  • It’s not math or physics with a 1000+ year history
  • With so many “guru’s” critical thinking is... critical
  • Debunking Brand Gospel*?
  • A little history can provide context
  •The problems that “branding” was solving early on are
   not the problems of today

   *Gospel actually means “good news
What are we covering?

  1.A brief history of “branding”, why was it important, and
   what problems shaped the discipline

  2.The importance of Brand Experience, how does the
   early focus of branding practitioners relate to todays

   products and services

   So on to the brief history....
Industrial Revolution: Production Capacity up




The ability to mass produce products outstrips
latent demand, product choice proliferates.
Late 19th to early 20th century
The Depression: Consumers tighten belts




                   $
The depression in the 30’s puts another dent in
the ability and desire of society to consume
War: production capacity Up, more belt tightening




WWII not only increases industrial capacity to
produce goods, but drives society to be frugal
The Perfect Storm




With enormous production capacity and a
frugal culture, companies latched on to a new
communication medium and modern branding
& advertising is born
Modern Branding 50+ years




                                        100,000+

           $                             products
                                       in one store



1900’s   1930’s   1940’s    1950’s     2000’s


                     Modern Branding
                    Really Takes off Here
So What?

• Modern branding is only a 50+ year old discipline, in its infancy, in its “the
  world is flat mode”


• Modern branding was born of the television and the need drive consumption to
  a mass market


• Communicating with a mass market required broadcast


• Fast Moving Consumer Goods has driven branding for the first 50 years


• FMCG - not interactive, not relationship based, all about the product and the
  communication around the product
Branding as a theory comes from fast moving
consumer goods

• Average number of brands in a super
  market went from 20,000 in 1990 to
  over 32,000 in 2002 (Food Institute,
  2002)

• Super Centers 100,000 + SKU’s

• The drive to differentiate a product on
  a shelf is a driving force behind
  “branding” methodologies and the
  rise of agencies

• All about the packaging, all about the
  product, all about volume.

• Visual, Visceral, Emotional
FMCG Brand Experience



For 50 years branding
has been focused here    Product      Communication




                        Environment     Behavior
Aspects of Brand Experience


  FMCG
  brands
                 Product       Communication
focus here




              Environment        Behavior
Aspects of Brand Experience


 Coke
focuses
                Product       Communication
  here




             Environment        Behavior
Aspects of Brand Experience



                                       AT&T
          Product    Communication focuses here


                                      but should be
                                      focusing here,
                                     seriously guys a
                                     new logo won’t
       Environment      Behavior           help
Aspects of Brand Experience



  Starbucks
                  Product       Communication
focuses here




               Environment        Behavior
Aspects of Brand Experience



   Toyota
                  Product       Communication
focuses here




               Environment        Behavior
Aspects of Brand Experience



   Flickr
                         Product      Communication
lives here




                        Environment     Behavior
 Not sure if flickr is
  an environment
Benefits of Holistic Branding

• In 2005, Scion spent the fewest in media dollars for each new vehicle sold at
  $284. Toyota was $422 and Lexus was $875. Compare those numbers to some
  of GM’s cars and you see the power of strong branding. Buick was $751,
  Saturn was $1012, Saab $2,116.

• http://ries.typepad.com/ries_blog/2006/03/the_classic_123.html http://www.originofbrands.com
The Brand Monolith is Being Challenged




 The monolithic brand is another FMCG hangover
Some Ideas to Think about

• How does branding a “service” company differ from a “product” company


• How are customers actually shaping brands that used to be in the control of
  brand managers: Flickr.com Myspace.com Google.com Starbucks


• Branding apple computer vs branding apple retail stores
Couple of recommended books

• The Cluetrain Manifesto
• No Logo by Naomi Klein
• On Brand by Wally Olins
• Life After the 30 Second Spot by Joseph Jaffe
About Karl

 Karl Long is a blogger and marketing consultant and can be
 found here:

 Customer Experience, Marketing, & Strategy -
 ExperienceCurve.com

 The Co-Creative Business Show - CustomersOnFire.com

 email: karl.long@gmail.com

 and is a regular contributer to:

 The MarketingProfs Daily Fix - blog.marketingprofs.com

 Futurelab Marketing Strategy - blog.futurelab.net

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Brief History Of Branding

  • 1. Brief History of Branding and the importance of Brand Experience Note: this was a presentation given to a group of industrial design students on the topic of branding, with the aim to encourage critical thinking about branding
  • 2. History? Why should we care? • It’s not math or physics with a 1000+ year history • With so many “guru’s” critical thinking is... critical • Debunking Brand Gospel*? • A little history can provide context •The problems that “branding” was solving early on are not the problems of today *Gospel actually means “good news
  • 3. What are we covering? 1.A brief history of “branding”, why was it important, and what problems shaped the discipline 2.The importance of Brand Experience, how does the early focus of branding practitioners relate to todays products and services So on to the brief history....
  • 4. Industrial Revolution: Production Capacity up The ability to mass produce products outstrips latent demand, product choice proliferates. Late 19th to early 20th century
  • 5. The Depression: Consumers tighten belts $ The depression in the 30’s puts another dent in the ability and desire of society to consume
  • 6. War: production capacity Up, more belt tightening WWII not only increases industrial capacity to produce goods, but drives society to be frugal
  • 7. The Perfect Storm With enormous production capacity and a frugal culture, companies latched on to a new communication medium and modern branding & advertising is born
  • 8. Modern Branding 50+ years 100,000+ $ products in one store 1900’s 1930’s 1940’s 1950’s 2000’s Modern Branding Really Takes off Here
  • 9. So What? • Modern branding is only a 50+ year old discipline, in its infancy, in its “the world is flat mode” • Modern branding was born of the television and the need drive consumption to a mass market • Communicating with a mass market required broadcast • Fast Moving Consumer Goods has driven branding for the first 50 years • FMCG - not interactive, not relationship based, all about the product and the communication around the product
  • 10. Branding as a theory comes from fast moving consumer goods • Average number of brands in a super market went from 20,000 in 1990 to over 32,000 in 2002 (Food Institute, 2002) • Super Centers 100,000 + SKU’s • The drive to differentiate a product on a shelf is a driving force behind “branding” methodologies and the rise of agencies • All about the packaging, all about the product, all about volume. • Visual, Visceral, Emotional
  • 11. FMCG Brand Experience For 50 years branding has been focused here Product Communication Environment Behavior
  • 12. Aspects of Brand Experience FMCG brands Product Communication focus here Environment Behavior
  • 13. Aspects of Brand Experience Coke focuses Product Communication here Environment Behavior
  • 14. Aspects of Brand Experience AT&T Product Communication focuses here but should be focusing here, seriously guys a new logo won’t Environment Behavior help
  • 15. Aspects of Brand Experience Starbucks Product Communication focuses here Environment Behavior
  • 16. Aspects of Brand Experience Toyota Product Communication focuses here Environment Behavior
  • 17. Aspects of Brand Experience Flickr Product Communication lives here Environment Behavior Not sure if flickr is an environment
  • 18. Benefits of Holistic Branding • In 2005, Scion spent the fewest in media dollars for each new vehicle sold at $284. Toyota was $422 and Lexus was $875. Compare those numbers to some of GM’s cars and you see the power of strong branding. Buick was $751, Saturn was $1012, Saab $2,116. • http://ries.typepad.com/ries_blog/2006/03/the_classic_123.html http://www.originofbrands.com
  • 19. The Brand Monolith is Being Challenged The monolithic brand is another FMCG hangover
  • 20. Some Ideas to Think about • How does branding a “service” company differ from a “product” company • How are customers actually shaping brands that used to be in the control of brand managers: Flickr.com Myspace.com Google.com Starbucks • Branding apple computer vs branding apple retail stores
  • 21. Couple of recommended books • The Cluetrain Manifesto • No Logo by Naomi Klein • On Brand by Wally Olins • Life After the 30 Second Spot by Joseph Jaffe
  • 22. About Karl Karl Long is a blogger and marketing consultant and can be found here: Customer Experience, Marketing, & Strategy - ExperienceCurve.com The Co-Creative Business Show - CustomersOnFire.com email: karl.long@gmail.com and is a regular contributer to: The MarketingProfs Daily Fix - blog.marketingprofs.com Futurelab Marketing Strategy - blog.futurelab.net