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When you see the swoosh symbol, you instantly think of Nike. But what if Nike opened a hotel? You could probably imagine the sleek design, the focus on fitness, and the sporty atmosphere. Now, think about Hyatt launching a line of sneakers. It's hard to picture, right? That's because, as marketing guru Seth Godin explains, there's a crucial difference between a logo and a brand.
Photo: Seth's Blog
Logo vs Brand
"So let's talk about the difference between a logo and a brand," Godin begins. A logo is just a symbol, a visual representation of a company. A brand, however, is much more. It's a promise to the customer. It's the expectations and experiences that come to mind when people think about your business.
Godin illustrates this with the example of Nike and Hyatt. Nike's brand is so strong that even if they ventured into a completely different industry, like hotels, we'd still have a clear idea of what to expect. This is because Nike has built a distinct brand that goes beyond just their logo.
On the other hand, Hyatt is primarily known for its logo. If Hyatt tried to launch sneakers, we wouldn't know what to expect because their brand isn't as distinct. They haven't established a clear promise or expectation in the minds of consumers beyond their current industry.
The Value of a Brand
Godin points out that having a brand means you've earned something valuable. It's about creating something distinct that people recognize and trust. If your brand isn't distinct, you're essentially selling a commodity and trying to charge a little extra for peace of mind.
"So what it means to have a brand is you've made a promise to people, they have expectations, it's a shorthand. What should I expect the next time? And if that is distinct, you've earned something."
Take hotels, for example. Godin mentions that companies like Hyatt, Hilton, and Marriott often face the challenge of being compared by price. When you're booking a hotel, why would you pay $200 extra to stay a block away if there's no significant difference in the experience? This is where the true value of a brand comes in.
"The value of a brand is how much extra am I paying above the substitute"
If you're not willing to pay more for a particular brand, then that brand doesn't hold much value. A strong brand commands a premium because people believe in the promise and the experience it delivers.
Real-World Examples of Strong Brands
Think about Apple. When you buy an Apple product, you're not just buying a piece of technology. You're buying into a brand that promises innovation, quality, and a seamless user experience. This is why Apple can charge a premium for its products—people are willing to pay more because they trust the brand.
Another example is Starbucks. It's not just about the coffee; it's about the experience. The ambiance, the service, and the brand's commitment to quality make customers willing to pay more for a cup of coffee compared to other cafes.
Building a Strong Brand
To build a strong brand, you need to focus on making a clear and consistent promise to your customers. Here are a few strategies to consider:
Define Your Brand Promise: What do you want your customers to think and feel when they interact with your brand? Make sure this promise is clear and consistent across all touchpoints.
Create Distinct Experiences: Go beyond just selling a product or service. Create memorable experiences that reinforce your brand promise.
Be Consistent: Consistency is key to building trust. Ensure that every aspect of your business, from marketing to customer service, aligns with your brand promise.
Invest in Quality: A strong brand is built on quality. Make sure your products or services consistently meet or exceed customer expectations.
Conclusion
Understanding the difference between a logo and a brand is crucial for any business aiming to stand out in a competitive market. As Seth Godin explains, a logo is just a symbol, while a brand is a promise that creates distinct expectations. To build a strong brand, focus on delivering consistent, high-quality experiences that people are willing to pay extra for.
In the end, the true value of a brand lies in its ability to command a premium and create loyalty. So, whether you're a small startup or an established company, remember that building a brand is about earning trust and delivering on your promises. As Godin puts it, "If it's not distinct, let's admit you make a commodity and you're trying to charge just a little bit extra for peace of mind." Aim higher—build a brand that people believe in and are willing to pay more for.
Listen to Seth Godin: