The Difference Between Business and Brand
Photo by Melanie Pongratz on Unsplash
Selling branding services to someone who has a limited understanding of the difference between a business and a brand can be quite challenging. No, not challenging….straight up hard AF! It's understandable though. Very few have been exposed to this knowledge, unless they have undergone years of study on the topic. For many people, their business is synonymous with their brand, with the belief that simply commissioning a custom logo will magically create a brand.
I have a business + Commission a custom logo = Boom, I have a brand!
When you go to a store and see familiar brands like Adidas, Nike, and McDonald's selling products with their logos on them and making a profit, it's easy to assume that any business with a logo is a successful brand. While this assumption is not entirely incorrect, it's not entirely accurate either. Technically, every business with a logo is a brand, but it's crucial to ask why someone chooses to buy from one business over another that sells a similar product. This is where it gets interesting. Even if two businesses sell the same t-shirt made of the same material, the price point can be vastly different based on the brand it carries. So, why is that the case?
The key lies in the fact that businesses are transactional, while brands are emotional. In a transaction, there's typically no emotional or other drivers attached to the decision-making process beyond getting the best deal. When you're bargaining at a yard sale or bazaar, for example, you're simply looking for a bargain, and once you've got it, it's a simple case of "pleasure doing business with you."
On the other hand, brands create communities, build allegiances, and inspire loyalty and fandom. Look at the difference between Apple and Android users, or the passion of Star Wars fans, sneaker collectors, and Justin Bieber's fan base. These groups share a passion for a specific brand, which creates an emotional connection that goes beyond a simple transaction.
While both businesses and brands generate revenue, brands have a lot more to offer customers. When a business becomes a brand, it creates a community that shares values, philosophies, and a vision. These community members become super fans who do marketing for the brand and spend more money with the business, becoming loyal customers for life. A good brand has the power to emotionally connect with people on a deeper level, creating an obsessive desire to purchase merchandise, attend concerts, and tell all their friends about it.
Think about the time you first discovered your favorite artist or a favorite song. What happened? You connected with it emotionally, and then likely listened to the song repeatedly while telling everyone about it. You bought more music by that artist, went to concerts, and even dragged your friends along. This is the power of a brand, and it's why businesses should strive to become brands.
Photo by Hanny Naibaho on Unsplash
Brand is larger than business. Brand is a legacy, when done right. But both business and brand are equally important.
For entrepreneurs, it's crucial to focus on developing both their brand and business. Your business enables you to fulfill the needs within the community your brand creates, while your brand allows you to connect with more people whose needs your business can solve. By growing both simultaneously, you can achieve your business objectives. While these concepts can function independently, the most successful companies have a dedicated following and recognition around their brand. Therefore, it's important to invest time in establishing and building your brand alongside your business.
