Branding is the key to success

I write to you from 30,000 feet on my way home from an 8-day trip across India. Al and I did a series of all-day seminars in Bangalore, Delhi and Mumbai. (More next week on why cities like Mumbai should never have changed its name from Bombay.)

The events were organized by the Times of India, India’s largest and most prestigious newspaper company, the same organization sponsored my first trip. This was our fourth trip to India.

It is always amazing to me how well-received our marketing ideas are outside the United States. In all three locations, Al and I spoke to packed ballrooms of business executives, entrepreneurs and students.

I doubt we could round up 50 people at home in Atlanta to listen to us all day. Why?

Because outside the United States, marketing is a big deal. Outside the U.S. countries look at America as the marketing capital of the world.

Today success or failure is determined by the power of a company’s brands. The U.S. has a reputation as the best builder of brands. Far better than any other country in the world.

The U.S. has more top global brands than any other country. 12 of the top 15 brands are from America. Brands like Coca-Cola, Microsoft, IBM, Intel, Disney, Marlboro and General Electric.

As marketing consultants and authors from the U.S. we command respect and admiration. But here in the U.S. we are practically ignored by top management. Why?

Because in America marketing is not considered important. Management, human relations, customer service are all considered of higher importance that marketing.

Jack Welch, perhaps the most influential manager of our times, wrote a bestselling book called “Winning” that doesn’t mention marketing at all.

Building strong brands is the key to success, in our opinion, not better products or better people.

Of course, Jack Welch didn’t need to build a strong brand when he was running General Electric. GE already was a strong brand, the fourth most valuable brand in the world, according to Interbrand, the leading brand valuation company.

How many of the 100 most valuable brands are from India? None.

That’s why we were invited to present our branding ideas to executives in Bangalore, Delhi and Mumbai.

Building brands is the key to success. In America, in India and in your company.

Next week, I’ll write more about my ideas for positioning brand India.

Comments

[Laura]

Great discussion, I enjoyed reading all of the entries.

A brand is owning a position in the mind of the consumer, it is an internal exsistence. Therefore having your name on a box or trademarked doen't mean it is a brand. Until you have established meaning the mind of the consumer you have not built a brand. Power and money is found by owning brands. Selling on price is not a way to build a brand or make money. I'll write more on India next week. I got sidetracked by the Super Bowl this week.

[Jayesh]

Hi Laura,

You are right on both points and unfortunately they are the linked to result in the other...

Indian marketing executives are obsessed with Multinational brands specially American brands. Majorly because most of the clients in top ad agencies have atleast one or two american clients who direct these professionals to work in simlar and tried methods with minor tweaks. Not realizing that the Indian consumer is so different.

if only the admen showed more understanding towards the Indian consumer and customized their solutions, a superbrand may emerge from India someday as well.

[Vita]

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couldn't agree less, honesty and integrity of the people involved in a brand are the most important. better brands come from the conversation

[Mary Schmidt]

Okay. I'll bite. If a brand isn't people and product, just what is it?

[ninefish]

you said: "Building strong brands is the key to success, in our opinion, not better products or better people."
I couldn't agree less, honesty and integrity of the people involved in a brand are the most important. better brands come from the conversation that customers have with each other, and with the people that are the brand. we are desperate for better products and better people not for a better understanding of "the brand". we despise the distance between the brand and the customer, but we become advocates for great design, for human brands, for things that speak to our own needs. the idea that building brands to be succesful is based on a corporate focus. instead we should focus on customers, they will make succesfull brands. it doesn't matter how great a brand is unless it's moving product. customers buy product, customers make great brands. all too often this happens despite of the marketing that brands do.

[Caleb]

Well, it's good to know that third-world markets will benefit a lot from branding. I think economic growth can be ignited if companies from developing economies will focus on building their brands rather than
imitating the line extensions and conglomerate bonanza.

It's true that focus will effectively assist companies in these countries to have a competitive edge in an international scale. Such competence will surely bring about valuable economic benefits.

[Caleb]

Well, it's good to know that third-world markets will benefit a lot from branding. I think economic growth can be ignited if companies from developing economies will focus on building their brands rather than
imitating the line extensions and conglomerate bonanza.

It's true that focus will effectively assist companies in these countries to have a competitive edge in an international scale. Such competence will surely bring about valuable economic benefits.

[Guruprasad V]

Hi,
I'm from India.Even in India, marketing doesn't seems to be that much hot what you've mentioned in your article.In India, we've lot of me-too products and line extensions. Corporate India is obsessed with buzzwords rather than brand building.