When it comes to branding, the larger danger is spending too much, rather than spending too little.
It’s a myth that having lots of brands and plenty of branding is good for business. After a certain point, both brands and branding cease to be useful–and, in fact, can be positively toxic. To understand why, though, it’s first necessary to differentiate between “brand” and “branding.” You’ll see why in a minute.
Advertising has only one objective: to achieve real business goals more effectively than would be achieved without it. These goals can be branding, sales, pricing power, or some other key performance indicators.
Brand is important. No question of that. A strong brand can make it enormously easier to sell. However, the notion that “branding” can create a great brand is a myth. Worse, it’s a myth that can cost you a lot of money, without getting much in return.
By “branding”, I mean the panoply of marketing activities like brand-focused advertising, packaging, marketing materials, logos, taglines, and so forth. In almost every case, money spent on these activities is money wasted.