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The five stages of a brand

It’s raining, school is back and just like that, it seems the season has changed. As we move toward the final quarter of this newsletter, I shall look forward not back, over the coming few months we will dive into customer & market research, discuss keeping up with trends and learn how to build a marketing plan for next year, I hope that sounds of interest.

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September 6, 2024 6 mins

This month I’d like to share the narrative of a seminar we did a few months back showing a typical evolution of a small business brand in five stages.

“Brand” is a strange word, it’s kind of all-encompassing, like the word “content”. Your brand is how people feel about you, what they expect from you, and how they would describe you to a friend. So it’s little wonder there are wide variations in its service delivery.  

Vu is 15 next week, and as I don the Vu Online party hat, I reflect that we have worked with 100s of brands from startup to household name over the last decade and a half, all on a journey to make money, create jobs and hopefully do some good in the world. 

Moreover, we too have been on the same journey, fifteen years and we still haven’t completed our vision with Vu, a true pioneer of marketing impact.

Along the way we have seen many of the same trends over and over, so here’s an (admittedly abridged) guide, with some tips for wherever you are on your brand journey…

Stage 1/5 – Startup

As a bright eyed owner-operator, everyone’s a potential customer and “yes” is the answer to every opportunity that comes your way. 

Busy juggling multiple roles: doing the work, selling the services, and handling all the paperwork. This intense phase leaves little time for strategic planning, and the stark reality is that around 20% of businesses don’t survive their first year. 

The choice is clear: expand and thrive or face the risk of burnout or bust.

How do we move forward?

First tip. Easy, do great work. 

Quality work leads (and always will) to referrals and income, especially important when you have no time or budget to market with.

From a brand perspective, visual credibility is key to appearing more professional, start by creating brand guidelines and (please, please, please) get professional images.

Stage 2/5 – Transactional

A Transactional Brand is primarily focused on aesthetics, with a nicely designed logo and a strong emphasis on looks. While it may differentiate itself through high-end visuals, this approach often remains surface-level, prioritising its appearance over deeper connections or customer engagement.

Customer relationships tend to be more transactional, with customers chosen on budget. However, this focus on financial transactions means you may get bartered down or not always attract the right fit, leading to master/slave relationships.

How do we move forward?

Recognize that everyone is selling something—so why should customers choose you? 

Don’t say customer service, no one ever says they give bad customer service and “quality” is assumed, so to unpick what is different, you must begin to understand the needs of your customers. 

By clearly addressing your customers’ needs and showing how your product or service provides solutions, your marketing becomes more outward-facing. This approach differentiates your brand beyond just price.

Stage 3/5 – Targeted Brand

The Targeted Brand focuses on delivering customer satisfaction through a positive perception of the brand experience. By understanding its audience and their needs it can leverage a problem-solution hook to draw in customers.

The type of customer this brand serves is niche, with specific needs that must be addressed. They aren’t just buying a product or service—they’re purchasing a solution that directly meets their requirements or resolves their pain points.

How do we move forward?

It is worth saying at this stage most organisations consider their marketing done. 

For those moving towards purpose and impact, brands must align with their customers on shared values and connect on a deeper level. 

It’s now about showcasing a broader vision of social impact, addressing wider societal issues beyond just solving customer problems.

Stage 4/5 – Purposeful Brand

A Purposeful Brand is driven by core values and a community-focused vision. It commits itself to addressing wider societal issues. It likely won’t need to shout loudly, subtly reinforcing its credibility through accreditations and frameworks that assure quality and align with these goals.

A Customer aligned with a purposeful brand shares its values and feels a deep connection to its mission. For conscious consumers, especially future generations, this alignment is crucial, as they seek brands that reflect their ethical beliefs and long-term concerns.

How do we move forward?

To become a brand of impact, brands should align with the biggest challenges faced by their generation, the UN Sustainable Development Goals (SDGs) are a great resource. 

By embracing a vision of community change and taking meaningful action toward societal impact, these brands work towards a better future for all.

Stage 5/5 – Impactful Brand

An Impactful Brand is living its values, driven by intent, and where action is inspiring a new vision for something different. Marketing is easy, its about showcasing real-world outcomes and telling the stories of the tangible impact the brand has made. 

A Customer is actively engaged in community efforts or activism, driven by the desire to contribute to a greater good. This strong alignment leads to increased loyalty and sales, as customers see the brand as a contributor to their own beliefs.

An Example: Patagonia

Patagonia exemplifies an impactful brand by making the earth its only shareholder, and paying for ads telling consumers not to buy their products. 

They focus on repair, recycling, and lifecycle analysis to reduce their environmental impact, encouraging sustainable behaviour over sales, and reinforcing their purpose-driven identity.

I should say I am not endorsed by Patagonia, just in awe of their approach.

In summary then

I am always intrigued by what a new client may want when they come to us for branding: high-end visuals, internal/external alignment, a change of message or a pivot in market, all will vary depending on their concept of branding and stage of development.

We can align these five phases with the ease in which we typically process information: What, How, and Why.

What is the Product or service, the tangible thing you provide. 

How is the USP, the thing you do differently that makes your offering stand out.

Why represents your Purpose – the reason behind your work, the inspiration that drives you each day. 

Just because why is harder to discover, doesn’t mean that it should be left to the end of a linear journey, what would happen for your organisation if you followed Simon Sineks advice and started there?

Do you know anyone who may be interested in this project?

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