One of my favorite explanations of the difference between branding and marketing contains this statement: “Branding creates value, marketing extracts value.” It's a give-and-take equation that works best when both components are working together. But if you’re continuously extracting more value than you’re creating, it’s only a matter of time before you find yourself in the red. So, how do you continue to cash in on the bottom-line benefits of your brand without getting overdrawn? It’s all about balance.
Before we dive in, let’s clarify our terms. In the Venn diagram of branding and marketing, there is generous overlap. In fact, one could argue that most marketing activities also serve as brand-building. But there are distinct differences as well.
Branding is about who you are and what you stand for. Marketing is the act of getting your message out. Branding is a constant and is relatively consistent over time. (Sure, your identity may evolve. You may grow and expand your skill set, even adopt a new look, but you’re still you.) Marketing is dynamic, with specific activities that begin and end. It's more tactical and tangible. Marketing generates action. Branding creates connection.
Making a commercial to promote your cola beverage? That’s a marketing activity.
Evoking a sense of nostalgia and togetherness with just the silhouette of your bottle? That’s the power of branding.
Sending an invitation to an event? That’s a marketing activity.
Accepting or declining based on who it’s from? That’s the power of branding.
There’s a good reason we use the term “brand equity.” A strong brand is money in the bank. And as with any investment or savings plan, building up that equity doesn’t happen overnight. It takes consistency, discipline and an ability to play the long game.
Smart, steady branding grows and compounds over time, building long-term value in the hearts and minds of your audience. Marketing, on the other hand, is making withdrawals from that account. It’s more transactional. You trade in some of that balance to extract value, typically in the form of sales.
Of course, sales are the point. Being able to extract that value is the purpose of branding in the first place. But if the equation gets too far out of balance—if you’re consistently drawing on brand equity built in the past without properly maintaining or actively growing your brand—that principal gets depleted. Without the added intrinsic value of a strong brand, customer interactions become mere transactions, subject to the whims of the moment, and often a race to the lowest price.
An effective branding strategy results in something more valuable than just a household name—it creates loyalty, trust and a community of believers. And while big, high-profile campaigns can certainly help raise awareness and generate traffic, building and maintaining your brand bank typically comes down to a few simple fundamentals.
Have a consistent identity that enables customers to readily recognize you in the wild. It doesn’t have to be fancy, but it should be professional. Set and follow brand guidelines. Understand the difference between building a consistent brand and creating cookie-cutter content. Brands need room to expand, grow and evolve. Like the right suit or a haircut, a good one can serve you well for a long time, but if it’s becoming dated or doesn’t fit well anymore, it may be time to revamp your look.
Your brand is your reputation. Just doing what you say goes a long way. Customers come back because they know what to expect. What do you want your brand to be synonymous with? Branding isn’t just what’s on the surface. A visual brand is a mental trigger that reminds the customer what they can expect from you. (How many times have you heard about a brand that “has gone downhill” since X, Y, Z?) You can’t just coast on a name. A strong brand invests, and reinvests, in the people, materials and processes needed to deliver consistently great products and experiences.
You have something your customers need or want. Products, yes, but what else are they seeking? Convenience? Confidence? Status? Support? Connection to a greater purpose? The ability to make a difference? When you understand the emotional opportunity area as well as your customers’ practical needs and pain points, you can create a stronger, more meaningful connection with your brand. Make room in your marketing for storytelling. “Buy now” banner ads may move the needle, but they’re typically more effective when they’re part of a larger strategy, not a standalone tactic.
Staying relevant also means evolving while remaining true to your roots. It’s not about adopting the flavor of the month (see points one and two above). A strong brand is a rudder you can use to steer your way through the winds of change and adversity.
Branding isn’t about conquest but community, and often even collective identity. Humans are tribal by nature and the most enduring brands have a magnetic quality that draws people to them. A strong brand understands its audience and how to connect in a meaningful way. (Again, make room for storytelling.)
How are you showing up for your customer? Why should they care about your brand? How are you finding them, connecting with them and proving your value? How do you enable their success beyond the sale? What reasons do you give them to come back over and over again, and to refer you to others?
Branding and marketing are two parts of a give-and-take equation. Marketing can get you quick wins, but if you want long-term success, make sure you’re continuing to build on and invest in your brand. Those deposits will continue to grow and compound, yielding dividends well into the future.
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