Brands are about mediation. Most exchanges, whether personal or commercial, are power games. In business there is nothing like authority to command buyer behavior. The two ends of the marketing continuum- the seller on the one hand and the buyer on the other- struggle to gain control over each other. Pursuit of self interest is not a bad idea. The competition strips the marketer of his power and favours customers. Marketing seeks to reverse this. Power is acquired, authority is formally given.
The Brand Equity survey of the Most Trusted Brands lists the top ten this year as: Colgate, Lux, Airtel, Lifebuoy, Nokia, Dettol, Britannia, Vodafone, Maggi, and Closeup. What does it mean to have a trusted brand? Probably there is connection between trust, power and performance. Trust allows a brand to gain power over customers which ultimately translates into superior financial performance. By building trust marketers can easily knock off rivals from customer consideration and thereby create monopoly in the competitive setup of the markets. Branding in this sense is about monopoly creation. Monopoly is detested for its suboptimal economic outcomes . That is the reason why most free economies have anti monopoly and pro competition legal framework.
From the customer perspective brands are important. There is pervasive trust deficit in almost all walks of life. The institutions are not able to keep up with the emergent changes. Take the political upheavals in Egypt and Libya, the financial crises enveloping the global economy, September 11, Mumbai attacks and terrorism, scams and corruption in political system and neighbour relations. How is one to live in this environment of suspicion, doubt and distrust? This impacts both physical and psychological well being. It causes tremendous strain and fear. A sense of loss of control pervades one’s existence.
Set against this background, at least in consumption situations, brands symbolize consistency and certainty. Brands are tension reducing mechanisms. Amidst uncertainty brands are assuring and comforting. Imagine existence in a world without brands. The luxury to short cut buying would not exist. You would not have reached out for your tried and tested brands. Brands simplify life by providing opportunities to develop short cuts. The mental eloquence so saved is used to resolve other conflicts.
The branding agenda has evolved over time. Branding began for the purpose of ‘identification’ (a mark on cattle helped identify the ranch). As production and consumption roles got divorced and markets came into existence, this function assumed significance. For many, branding is about creating ‘trust marks’. This is about delivery of reliable products or services. German and Japanese companies ushered in this era. But now certainty of performance is not a differentiator in many product categories. It is a common denominator. Accordingly marketers in their bid to control buyer behaviour and gain power, approach branding with an aim to create ‘love marks’. Branding in this sense is about transcendence beyond what is embedded in the goods or service element of the brand. The idea is to liberate the brand from its ‘productness’ and put it on space of ‘non contest’ by embedding it with a ‘transformational’ capability. A brand, from this perspective, becomes a very personal and intimate experience.