Branding that Means Business: A great reader that's worth reading earlier in your career (2.5/5)

Rating: ⭐⭐🌟

📚 GoodReads Info 📚

Summary Link to heading

I wish I had read it earlier in my engineering career and entrepreneurial journey.

It’s a great book that helps build foundational intuition around branding, but is not very tactical if you already have that baseline.

As a technical leader who spent many years doing software engineering, it took me some time to understand the importance of product, the customer, the business, distribution, marketing and branding. Having already learnt those lessons the hard way, this book acted as a reinforcing agent to solidify those lessons with a few new learnings. But, it didn’t fundamentally shift my thinking.

It wasn’t mind blowing, but the content was still good and helpful. I stared getting a bit bored by the 4th chapter. It felt more like a PhD dissertation than a novel. A podcast episode or an essay could have been enough rather than writing a whole book.

My only complaint about the book is that they referenced huge brands: Apple, Google, AirBnb, Coca-Cola, etc. Though those brands act as north starts, and leverage the same lessons, it would have been nice to reference smaller and more niche brands along the way as well. We need to see the stepping stones :)

Key Takeaways & Reflections Link to heading

  1. Brands only matter if they matter to humans: This is interesting because it the not so distant future, we’re going to have to target AI agents with brands. I’m foreseeing mix between SEO and human emotions.
  2. Brands attach to well defined identities: Being funny is a personality trait, but being a comedian is an identity. Some are vegan for Life. some are born to ride. Etc… Attaching to an identity is a powerful way to build brand loyalty.
  3. Branding is social currency: Financial capital lets you buy some things, but social currency id priceless.

On Branding Link to heading

Brand Types: Premium, Luxury & Exclusivity Link to heading

I’ve always used these terms interchangeably, but this book helped provide clarity on the difference. Not only that, I’ve also started thinking of what kind of brands, products or companies I’d like to build later in career.

Right now I’m working on a commodity business that didn’t even make the list. I’d love to move up the ladder to building a premium product, a luxury brand and ultimate an exclusive community.

Premium: You pay more, but get what you pay. Lululemon and BMW are great examples of this. High quality products, providing real value that last for a long time.

Luxury: This is primarily achieved through pricing. The brand has to be premium, at a minimum, but also exudes an additional emotion through higher pricing. The price may or may not be reflected in the product, but you are still likely overpaying for it.

Even though luxury may come with the same utility as a premium brand, it comes with, it is accompanied by a different emotion, like a lamborghini or a Rolex.

Exclusivity: This is a premium brand, at a minimum, but adds exclusivity through new feelings and emotions like FOMO. The infamous Birkin Bag is a classic example.

I remember reading somewhere that all content needs to either teach you something or make you feel something. When it comes to product, it either needs to provide you with some utility or make you feel something. There’s no question that exclusivity makes you feel something.

Somewhat ironically, I was listening to the acquirer’s podcast on Hermez right after reading this book. All of my key takeaway were direct validation of the importance of exclusivity.

Cultivating and Embodying Brand Meaning Link to heading

Brand meaning exists in the construct of the customer, not in a construct of the world.

If you’re in charge of building a brand, you can give it a random meaning, but it’d be pointless.

If the brand also has an image, going to meaning from image is nontrivial. The image doesn’t define what it’ll mean to consumers.

The job of a brand leader (founder, marketer, etc) is to collaborate with the users or customers, identify when/where the meaning arises, catch onto it, scale it, and then cultivate it.

It’s kind of like a mission statement or culture doc at a company. The leadership team can write anything they want, but they have to act on it. Similarly, you can say what the brand meaning is, but if the consumer doesn’t embrace it, it’s not going to be meaningful to them.

Once a brand is mature, becoming a cultural educator is one of the most powerful things it could do. This comes after success, and how a brand really becomes a hero that leaves a legacy and drives change.

Building Brand Loyalty Link to heading

The hardest part of building brand strategy is achieving brand loyalty.

Brands earn loyalty by distinguishing themselves with their actions.

Brands need to be consistent in their stream of communication. It’s how they earn trust, achieve a sense of competence, build a community, and exude warmth. The later is the key to understanding brand intention and capability.

When trust is low, you need to leverage type one thinking: analytical. When trust is high, you can leverage type two thinking: intuitive. This removes the cognitive overhead of thinking when brand is top of mind.

To summarize, when you have brand loyalty, you don’t even have to do marketing.

Favorite Moments, Fun Facts, Anecdotes and Food for Thought Link to heading

Halo Effect Link to heading

The Halo Effect is a cognitive bias claiming that positive impressions of people, brands, and products in one area positively influence our feelings in another area.

I realize how biased I am to this. Anytime Apple ships a new product, I assume it’s high quality and tested. Anytime OpenAI ships a new product, I assume it’s super innovative. Anytime Microsoft ships a new product, I assume it’s targeted at enterprise and will make a ton of money. Anytime Coca-Cola ships a new product, I assume it’s a hit with the masses and that they don’t bias to health.

The halo effect is real!

More info on wikipedia.

AirBnB Link to heading

I’ll keep this short because Brian Chesky is all the rage nowadays after Founder Mode came out.

We all know he has taste and is a great visionary, but putting that aside…

Aside from cheaper prices, the one thing Airbnb delivered from the beginning is a sense of belonging between the hosts and guests. It also gives a sense of belonging to the place you’re staying at.

At this point, I prefer hotels because they’re cheaper, simpler, have more amenities and are more comfortable.

However, I do still associate AirBnB as the brand that creates a sense of belonging.

Asian culture as an example of adapting brand to regionality Link to heading

Crossing fingers in Vietnam is a bad sign.

Wearing green in China means your partners disrespectful or unfaithful.

In Asia, Pizza Hut is a high-end restaurant shop where multimillion dollar deals are made.

All of this is to say that the same omen, sign, brand or association will mean different things in different parts of the world. International brands need to adapt.

Interestingly, since crypto is so “internet native”, then the brand is inherently global by design. But, on second thought, Korea is really big on trading. Africa is really big on building financial instruments. Argentina is really big on hedging their currency risk. The US and Europe is where the R&D takes place. As I’m writing this, I realize that even in crypto, regionality and culture plays a crucial role in the success of a brand.

Advice Column as a Lens into building brand strategy Link to heading

I’ve never thought about this but advice columns give a insight into what’s happening in the world TODAY. It’s akin to the advantage X has over other companies building foundation models.

When it comes to brand strategy, building or meaning, it’s a great way to get signal, inspiration, idea and learn.

Iron & Gold Jewelry Link to heading

I learned that the production of iron jewelry peaked in the early 1800s, read on…

The prussian royal family urged citizens to donate their gold jewelry for iron as a form of support and charity during one of the Napolean wars. In return, the citizens were given iron jewelry as a form of gratitude inscribed with “I gave gold for iron”.

Iron was the color of mourning but became the color of patriotism. Gold became the color of greed. It’s called the Berlin iron jewelry.

This is a classic example of the importance of the feeling a brand or product evokes irrespective of its price or utility.

America: Where the rich & the poor are one in the same Link to heading

I don’t exactly remember what part of the book it was, but at one point they were talking about the history of Coca-Cola. It let me to do a bit of research, it led me to this article article, and ultimately to this quote:

What’s great about this country is that America started the tradition where the richest consumers buy essentially the same things as the poorest. You can be watching TV and see Coca‑Cola, and you know that the president drinks Coke, Liz Taylor drinks Coke, and just think, you can drink Coke, too. A Coke is a Coke and no amount of money can get you a better Coke than the one the bum on the corner is drinking. All the Cokes are the same and all the Cokes are good. Liz Taylor knows it, the president knows it, the bum knows it, and you know it.”

In short, whether you’re a truck drier, knowledge worker, the president or Warren Buffet, we all drink the exact same coca-cola.

The Edelman Trust Barometer Link to heading

The Edelman Trust Barometer is one of the most fascinating things I’ve ever found and I’m extremely surprised I’ve never heard of it before.

Here is ChatGPT’s quick summary of what they do:

The Edelman Trust Barometer is an annual global survey and report published by Edelman, a prominent public relations and marketing consultancy firm, that measures public trust in various institutions, including government, business, media, and non-governmental organizations (NGOs). Since its inception in 2001, it has become one of the most closely watched barometers of public sentiment, tracking how economic, political, social, and technological changes influence people’s faith in the institutions that shape their daily lives.

I spent a bit of time looking into their 2024 report and its both legit and fascinating. I’m going to do a deep dive dedicated just to this in a separate post.

Facebook & Google Link to heading

We never think about gmail or Facebook having built in exclusivity, but they did.

In the early days, gmail was an invite only product. Not only that, but facebook was limited to specific college groups.

Amazing how things change over time!

Adidas and puma Link to heading

Two iconic brands that have no association with each other.

But, as a fun fact, the founders were brothers who had build a company together for the better part of a decade before splitting up into Adidas and Puma.

Lots of cool details about the Dassler Brothers Feud.

Brand Positioning: Literal & Figurative Link to heading

When we say “Brand Positioning”, we’re talking about figurative positioning in society, culture and our minds.

But, where a cereal box is located in the asile (top, bottom, middle, etc) can literally affect how we perceive it.

Favorite quotes Link to heading

“If the brand isn’t excellent, it may as well not exist.”

This quote speaks for itself.

“Instead of asking, what will change our next 10 years ask what will stay the same.”

This quote is by Jeff Bezos but this book was my first exposure to it.

This is going to be my go-to question whenever I have the opportunity to speak to old-school legends.

My personal answer: The only thing I can really bet on is human desire and natural tendencies.

“When you can have any item in the world, the brand matters just as much as anything else.”

When you look at huge commoditized businesses like Walmart, Chevron, Coca-COla, Toyota, etc, it’s a race to the bottom with respect to pricing on things like groceries, oil, drink and cars.

This is one way to build a business worth hundreds of billions of dollars, but it’s not the only way.

Businsses like LVMH, Rolex, etc are worth just as much via a completely different strategy.

There are multiple ways to skin a cat, and apparently build a business too.

“But what we have come to appreciate in the world of marketing and innovation is that with the advancement of technology, replicating the functional aspects of a product can be easy. But to replicate a deep understanding of a brand’s principles, which also might have historical significance for the consumer, is much more difficult.”

Replicating brand functinoality is easy.

Replicating brand principles is hard.

“For brands, whose very existence depends on establishing meaning and distinction, commodification is kryptonite”

Commodification is kryptonite for Brands.

“But this doesn’t happen when brands treat customers like they are simply a sales transaction. Rather, brands must interact with their customers as humans, in a way 19that feels like having dinner with your best friend or family. It’s akin to creating memories together.”

Customers need to be treated like humans.