I think the tide is beginning to turn. Small business owners are beginning to understand the meaning of “brand” and “branding”. The two words are, of course, entirely different things.

We use a couple of different definitions for “brand.” One definition is technical: “a proper name that stands for a common word in the mind of the consumer.” Coke (proper name) stands for cola (common word). Kleenex (proper name) stands for tissue (common word). And so on.

Another definition is more practical: “the promise that you keep.” In other words, the sum-total of your consumer’s experience with you. It’s how they remember you…the emotions they associate with you, the images they think of when they hear your name, that knee-jerk reaction when you come up in conversation.

Both definitions say the same thing, just in different ways. In any case, the data is irrefutable- megabrands are shrinking, while microbrands are exploding. Even on a local level (I’ve heard this three times now in the past week from local business owners), small business owners are learning that they must “brand” themselves and not just advertise themselves.

Which brings us to “branding.” If “brand” is a common word, or a set of experiences, memories, emotions, images, and reactions, then “branding” is the act of intentionally creating those things. It’s the steps YOU, as a business owner, can take to encourage positive interaction with your consumers. It’s the act of building a relationship between an idea (your business) and your consumer.

This act is best exemplified when you stop to consider what a successful brand looks like. There are countless definitions, I’m sure. I ran across one this morning that I like better than any other I’ve ever read: a successful brand is a brand whose self-esteem value far exceeds its utility.

Nicely put. Do you drive a Mercedes because it gets you from point A to point B? No, you drive a Mercedes because it makes you feel good. If getting from point A to point B mattered most, we’d all be riding scooters. If utility mattered most, then Prada would be out of business. So would Heinz Ketchup and Breyer’s Ice Cream. And we’d all be drinking Absolut. But…utility isn’t what matters most. Thus, we drink Grey Goose. And we feel quite good about it.

So, the question concerning “brand” and “branding” is really quite simple: what are you doing to increase the self-esteem value of your brand? Does your brand create an experience for me such that I’ll forget that I can get the same utility for half the price elsewhere?

Makes ya think…