The Importance of Brand: Why Elty Was Created in the First Place.
Marketing budgets aren’t set in stone — they ebb and flow with market conditions. When customers tighten their belts, companies may focus on value propositions and discounts to maintain “appeal”. Conversely, economic booms might see a shift towards aggressive marketing tactics to capitalize on increased spending. In slower markets, prioritizing cost-effective channels and customer retention efforts becomes crucial. Tighter budgets are a reality in weak markets, but some forward-thinking companies view downturns as opportunities to grab market share through strategic marketing. For many, “Strategic Marketing” might mean cutting down all those channels that are not moving the needle, right here, right now. In this article we’ll try to explain that there isn’t a more strategic activity than building a strong brand.
For those who don’t know me, my name is Alessia Morichi and I oversee Marketing and Communication at DaVinci Salute and I am the guardian of our new brand Elty (elty.it), a health services platform to take care of yourself and your loved ones. My career path reflects a focus that combines growth marketing and brand building across various industries. I’ve helped launch startups or their first product go-to-market, spearheaded product marketing initiatives and growth, and revitalized brand presence through brand reputation activities while at big tech companies. During these years, I have been in many conversations in which it seemed there was a common misconception that growth (previously known as performance marketing) and brand building are at odds with each other.
The big marketing dilemma: brand vs performance.
After taking a Brand Management course by Oxford Learning Lab and a Growth Academy Certification, as a curious soul, I couldn’t resist joining a workshop co-hosted by Andrew Chen when the pandemic hit a few years ago.
Andrew Chen is partner at Andreessen Horowitz focused on tech, author of the book “The cold start problem” and one of the people who forged the concept of Growth Loops. It was the last question in the Q&A session and I went straight to the point: “Brand vs performance. What to do and when?” In short, Chen responded that companies that make it past 18 months need to invest in brand.
His emphasis on branding excited me — it was exactly what I needed to hear and the audience, in my mind, needed to hear it as well. However, a new dilemma emerged: do companies have a problem related to the varying interpretations of “brand” itself?
A big big YES! Many people think a brand is about fancy colors and logos (what the branding gurus call visual identity), while others are all worried about the costs of getting their name out there with brand awareness campaigns or simply about the tech costs attached to any change.
What’s brand and why does it matter?
A brand is more than just that. It’s the overall perception people have of a company, product, or service. It encompasses everything from its personality and values to its customer experience and reputation. A strong brand builds trust, love and loyalty with its audience. Studies have shown that Brand Love is the n.1 factor that motivates people to repurchase a product or service. (Source: International Journal of Financial Accountability, Economics, Management, and Auditing ISSN (2788–7189) Int. J. Fin. Acc. Eco. Man. Aud. 5, №3 (MAY-2023)
Indeed, the most forward-thinking companies shifted their focus from building a MVP to creating a “minimum lovable product”. (Credit for this concept to the inspiring Jianna Zhang, who led product in many successful companies such as Dropbox, Airbnb, Webflow and Linktree).
Last, a Boston Consulting Group research shows that companies with a strong brand identity reach top talents faster than their competitors and they experience a decrease in turnover by 28%.
How do economic downturn and tight budgets relate to the brand?
A frequent misstep during financial strain is cutting brand-related budgets OR resources, mistakenly viewing them as non-essential.
Without doubt, the biggest barrier to action during tough economic times (apart from the size of your budget) is the mindset of a company’s senior management. Even if funds are available, managers who don’t value marketing may be unwilling to maintain existing levels of support for brands, let alone condone increases in spending. The need to prepare quarterly financial reports for investors will keep them focused on the bottom line. When innovation and marketing budgets are scaled back, little appears to be lost in the short term even though the evidence suggests that many brands will suffer as a result. If, however, your management team is entrepreneurial in spirit and your analysis suggests your brand could gain long-term advantage from increased marketing spend, then now might be a good time to pitch your case. Identify exactly what that additional budget will achieve and what the likely return will be. A savvy management team may realize that they are not risking too much by supporting the brand; in fact, they may actually increase the company’s standing in the eyes of financial analysts, investors key opinion leader and the press — who appreciate the value of a strong brand — and ultimately they may win user’s heart who will be retained at higher life time value.
Working on corporate brand and its marketing is a true leadership task that requires far-reaching input and commitment, passion, and grit. The outcome of this long-term work is a sharp brand, stronger bonds with customers, and a truly united organization — all giving you a significant edge over the competition, leading to increased brand love, the ultimate driver of repeat purchases. This is why we put and keep putting so much effort into our most recent consumer facing brand, Elty (elty.it)
