Over the last decade we have experienced great changes in the world, both socially, economically and politically. We are facing a very rapid transformation of man and his relationship with the environment, with everything that surrounds him. Undoubtedly, brands are not on the margins and must anticipate in order to be truly meaningful to people. According to the “Meaningful brands 17” report, Spaniards would not mind if 75% of brands disappeared. Faced with these alarming data, we must think that they must be managed according to a new reality.

If the term economy can be associated with the effective management of resources for the creation of wealth, there is no doubt that brands are catalysts for the economic results of any business, regardless of its size or condition.

Under the concept of “Brand Economy” I have grouped 4 fundamental levers that make up the “economy of brands” and that will help strengthen them by providing business value:

1. The Economy of the Heart

Connecting with people involves stimulating their emotions, connecting with their hearts. Companies that want to move forward will need a redefinition of their business capable of strengthening their purpose (Brand Purpose) by reaching a higher level of connection with people. Developing it starts with the identification of the relationship between the two, starting from a base of authenticity. People don’t buy what you do, they buy why you do it. That is, people do not connect with a company’s products or services, they are emotionally linked to the reasons why these companies exist.

2. The Experience Economy

Emotions are the key to winning people over. The customer wants to feel like a protagonist and tries to reaffirm their identity by co-creating with brands. This significant change implies the transformation from a unidirectional framework to a multidirectional reality based on engagement that leads us to the total management of the brand experience. Companies should think of brands as relationship builders rather than transaction builders. The former focus on the long term, the latter focus on the specific.

3. The Economy of Words

We are entering an era where businesses are more flexible and collaborative, where brands tell their own stories and invite customers to be part of that community. Being part of a great experience makes it easy to tell great stories and share them with others. In this reality, brands face the challenge of finding their own voice. Verbal identity is a fundamental part of the essence of a brand and all of them should have their own defined. For a long time, most brands have focused on building their visual identity, but very few have taken the firm step to integrate their own verbal identity into their brand strategy.

4. The Reputation Economy

We are already in a new cycle where the brand and its reputation are the territory for which companies, institutions and countries compete and will compete. International experts agree that today up to 80% of the total value of an Organization resides in its intangible assets. This is a new business management framework in which the perceptions of a company and/or its brands determine the behaviors of consumers and the rest of the company. Stakeholders as opposed to the opinion that they make of the quality of their products or services. What we do is more important than what we say we do.

 

The economy is the engine of the civilized world as we know it today. The ideal economy should combine a material part with an immaterial part, in the same way that brands connect companies and people. This is the power of the brand economy.

If you want to know more about the economics of brands, you can download this
report
.

 

Carlos Puig Falcó

President of Branward®

Photos: Shutterstock


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