In essence this article is about the power of words. To be more specific it is about branding.

It seems that branding is the new kid on the block that everybody talks about. It really is worth our attention for that exact reason.

Brands can be used for positive or negative purposes. On the positive side, brands help us make  better decisions and save us time and money in the long run. On the negative side, it can lead us to making bad decisions and costing us time and money. It can have positive impact for both producers and consumers of the image.

I am going to examine the following four scenarios using real life examples:

• a brand having a positive impact on a producer of a brand
• a brand having a positive impact on a consumer of a brand
• a brand having a negative impact on a producer of a brand
• a brand having a negative impact on a consumer of a brand

I am going to look at the case of Mac vs. PC as it seems illustrate the positive and negative effects of branding on both consumer and producers the best. Also, everybody should be very familiar with the ongoing battle between a Mac and a PC :)

Microsoft vs. Apple

For years, Microsoft has dominated the software market with Windows. Because of the dominance, it was able to monopolize the market and reap substantial profits. When it came to making a choice, you probably did not even think about it twice and just bought Windows. The name of Microsoft on the software made the decision easy.

On the other hand, for years Apple was suffering because of a bad reputation it had. Buying a Mac did not even cross anybody’s mind when choosing an operating system. Apple was clearly experiencing the negative effects of branding.

In the mean while, consumers were at the whim of Microsoft. When it made a good version of Windows, everybody was happy. Companies were saving money and time, consumers were happy with the product and the decision that they made. However, at times Microsoft would make products such as Windows Millennium or Windows Vista, which made the businesses and consumers want to just drop Microsoft products and never look at them again.

Yet, we were the ones making a decision on buying the products because of the established brand.

Then, Apple made a turnaround. Someway, somehow it made it’s way back to consumer’s minds and Microsoft finally had some serious competition to the Windows OS. Because of the brand image that the Apple started building, many people switched to Macs. They started thinking twice before just buying a PC with Windows on it. And so, Apple was doing great for last couple of years. It introduced products such as iPod, iPhone and so on. People were buying them like hot pancakes, not thinking about it twice. In this case, the Apple was winning big.

It seemed like consumer would just buy anything that Apple made. A very similar story to Microsoft’s. Regardless of how much benefit the product actually had, people just bought it.

For that exact reason, Microsoft and Apple became comfortable with their brands and started producing half baked products, which hurt many consumers financially. If you are thinking Microsoft, think Vista; if you are thinking Apple think iPad and countless versions of iPod.

Lessons Learned

When we benefited it was because of branding. When we were hurt it was because of branding. There is an important lesson to be learned here.

Companies and the products that they produce change. Yet, the image the we have of that brand usually lags behind. Sometimes, it never really changes.

That is even more of a reason to be aware of changes not only in our own preferences and needs, but to be aware of how companies/entities that stand behind the branding change. Many times, the image the company originally established does not live up to it’s current status. That is the difference between reality and perceived reality.

Are you looking beyond brands, piercing the image that the companies want you to see? Do you check if it is congruent? Is what you see, what you get?

It really goes far beyond just firms and their products. The same exact concept applies to individuals, governments, countries, social groups, television companies, friends, families and schools. So, become aware of brands that are currently in your mind and ask: “Is this image congruent with what the company/firm/friend/country/social group really stands for at this moment?”

Remember: people change and so are the entities that they represent.

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Image: paperocks a.k.a evalinda