Before delving into the subject of nation branding, it is essential to appreciate its origins.
Branding is a business management concept customarily applied by organisations to develop significant differentiation for their products and services to attain relative competitiveness in their chosen markets (Isibor, 2014:47). A brand is more than the name given to a product.
Rather, it captures the underlying idea that pushes the design and development of product and service offerings under that name (Kapferer, 2008:6). A simple and universally accepted legal definition submits that a brand relates to a symbol or a label attesting to the exact source of a product or service to differentiate it from other competing products. He further notes that brands were originally intended to protect manufacturers from theft. The origins of branding are rooted in marks burnt into the hide of cattle, which made it easier for its owner to identify his/her animal in the event of theft. ‘Brands’ were also used to identify the origin of olive oil or wine presented for trade in pre-historic Greece. Different sources signified different value or quality in the eyes of potential buyers, who would associate the product stock with the reputation of the producer or supplier.
The different definitions of brands fall in two categories. On one hand, the focus is placed on the physical or visual manifestations of a brand. On the other, the thrust is holistic and intended to address aspects outside the apparent and conscious graphic facets of a brand, capturing the heart, core, or essence of a brand. Dinnie (2008:152) assertion that an ‘effective brand relates to a name, icon, graphics, or a fusion, that helps create a positive impression on a product from a given organisation to give it a sustainable differentiated advantage.’ Lee (2009:51) holds the view that brands are prized invisible assets that extend beyond product names and symbols, implying that branding is a strategic issue, and not merely a naming and graphic problem.
Lee (2009:67) suggests that a brand is the total manifestation of collective activities performed around a product, idea or a place and the ultimate experiences of the targeted consumer. In addition, Kapferer (2008:21) defines a brand as ‘a set of cognitive connotations,
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believed by brand consumers, which complements the perceived market value of a product’.
The observation made is that associations with the product should be unique, strong, and desirable in the mind of consumers. The definition does not emphasise the product in question because branding is a concept based on perceptions. As Hannigan and Richards (2017:97) aver, branding is meant to influence perceptions through emotions and images as it brings symbolic and emotional qualities to the branded city or destination.
Contemporary approaches to brand management emphasise the product or service as the principal subject of perceived value, and role of promotion in the formation of concrete and ornamental attributes in order to positively influence perceptions. Fan’s (2006:121) definition underscores cognition (mental associations) over and above the significance of deep fervent appeal. Essentially, a brand is that which stimulates consumers to make a choice. Other definitions of brands suggest that brands represent an amalgamation of physiognomies and benefits that are both “functional and non-functional”. Lynch and De Chernatony (2004:12) also propose a definition that suggests a combination of “functional and emotional” aspects that assure a distinct, positive experience.
It has been observed that the new world order has become ‘an attention economy’, where proliferation and clutter is making buying decision very difficult. Consumers are either constrained by time or uncertain as to how to determine the best choice. Brands are thus able to deliver the much-needed assurance and confidence to consumers. They are useful in decision-making, reducing time and risk. Kapferer (2008:12) weighs in and highlights several perceived risks that impact consumer decision making. He identifies financially (price), functionally (performance), experientially, psychologically (self-concept), and socially (social image) related risks. This underscores the importance of building brand salience and belief in a brand’s distinctive points.
A brand’s power to influence buyers relies on mental associations that consumers have when the brand is mentioned. Beyond mental associations, Kapferer (2008:13) observes that the influence and significance of a name derives from the sensational and psychological connotations that it cultivates in consumers’ minds over time. These associations define the brand image, and include such aspects as:
a) Brand territory (observed competency, similar products or services, its league) b) Level of quality (basic, intermediate, superior, extravagance)
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c) Most outstanding value (observed positioning) d) Characteristic consumers sought
e) Brand personality and image
Dinnie (2015:54) has warned that since brands do not exist in a vacuum but in cluttered environments, if they are to be successful, they must consider the context of the prevailing market space. Brands therefore need to interact creatively with their environs in a process referred to by Holt (2006:34) as ‘cultural branding’. The essence here is that brands must be rooted in and in keeping with the cultural aspects of their environments. Strategic issues on branding, according to Kapferer (2008:13), are that brands need to be recognisable and their benefits (perceived and real) need to be significant, exclusive and reliable. This is what, in his view, brings about sustainability in the brand. Ries and Ries (1998:34), who view a brand as a singular idea or concept that a product or service provider (nation) owns in the mind of a prospective customer or client, echo this sentiment. The implication of this understanding is that branding is perceptual and occurs in the mind of targeted consumers. Blanchard (1999:21) contends that a brand is, in basic terms, the personification of a product, service, organisation, or nation.
2.1.2 What is Branding?
The origin of branding dates to the late nineteenth century, with the development of branded consumer goods (De Chernatony, 2001:34). The practice of branding has grown in scope beyond consumer products to services, multinational corporations, individuals, tourist destinations, cities, and nations (Kapferer, 2008:13; Dinnie, 2008a:152). The branding of a destination defines its core ideology or DNA and ultimately its character to a targeted consumer. A company or place may transform its business model or the way it relates to and competes in different markets, with its ideals remaining unchanged over time.
Matheny and Audrain (2007:3) posit that branding is the expression of systems and associations, shared business atmosphere and market offerings, which translates to explicit identity artefacts such as colours, symbols, insignia, illustrations and messaging. The whole exercise seeks to create a positive impression in the minds of the targeted customers to influence their behaviour towards the brand. The Brand Management Checklist (2003:4) supports the earlier perspective that a brand is not an icon, a name, a slogan or a mission
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statement. Rather, it is a promise to deliver value to specific targeted brand consumers. Gray (2006:34) says (effective) branding goes beyond building visual identities and images to creating of a ‘consumer delighting culture’ through internal marketing and stakeholder engagement. Doer and Schultz (2007:12) suggest that organisations seeking to enhance the reach and power of their brands in the marketplace should leverage the internal strengths of their brands. The authors observe the need to brand the people, similarly, to personalise their organisation and management of the customer brand experience. Just like people within an organisation, the nationals or citizens of a given nation represent the brand when they meet with foreigners.
Consumer brand experience, a key issue in branding, relates to the sum of all experiences arising from consumer interactions with a brand. Whilst the term brand relates to the perspective of the organisation, brand experience relates to the perspective of the consumer.
Sutton and Klein (2003:11) aver that where a brand is a bundle of functional and emotional benefits, attributes, icons, names and symbols that, in combination, constitute the meaning of a product, a service or (a nation), a brand experience is a consumer’s experience with a brand.
According to Van Auken (2002:21), an effective branding process should provide reasonable answers to the following questions:
a) What do consumers think the brand offers? What do consumers associate with the brand?
b) Is consumer understanding of the brand what the supplier wishes it to be? What could be the gaps, if any, between consumer perception and what suppliers wish them to know?
c) How is the product offer differ from competitor offers? Is the brand any different?
What is compelling about the brand?
d) Do people trust the brand to deliver that offer? Can people (local and foreigners) really believe the brand claims? What personality do they attribute to the brand?
e) What do they equate the brand to in terms of their familiar mental pictures?
f) How does their perception alter after buying the brand? Are there any gaps between perception and reality?
Considering the foregoing questions, it is evident that branding is a challenging undertaking and not merely a marketing communication issue.
31 2.1.3 The Significance of Branding
The significance of branding in contemporary economies relates to the weight given to brands in corporate valuation. This is self-evident in all the emerging markets (Abimbola, 2010:177) particularly the BRICS, where such brands Tata, Petrobras, and Haier have emerged as super global brands. It is interesting to note that success in brands is a function of their ability to connect with the market. The failure by brands such as Motorola and Nokia to sustain competition in the dynamic smartphone space is traced to their obsession with engineering, disregarding the non-functional aspects of their brands. On the other hand, effective branding and brand management had a game-changing effect for HSBC and Apple in their respective markets. Ashworth, Kavaratzis and Warnaby (2015:7)observe that effective engagement with modern-day economic realities requires a co-value creation strategy involving all stakeholders. Concerted and coordinated stakeholder interactions foster development of positive perceptions of, and perspectives on, the identity of organisations and their products.
Extant literature justifies the need to brand products, services, organisations, cities and nations. The objective of branding is to create positive perceptions about products, services, and organisations in the minds of the consumer. Re-branding usually seeks to regain lost market share and, at times, to counter the adverse impact of competitive activity. Bauer, Bloching, Howaldt, and Mitchell (2006:44) opine that successful branding should therefore deliver relevantly differentiated and unique customer-based value. When done properly, branding should not solely be a response to competitor activity but also to a shift in customer needs. It is vital to consider the realities of life in branding (Haig 2003:21; Van Auken 2002:12 and Jaffe, 2015:286) because consumers make their purchase decisions based on their perception of the brand rather than the realities of the product. If their perception of the brand is not favourable, they are unlikely to purchase such products from their respective suppliers. The same scholars note that consumer benefits sought (value derived from a brand experience) are subjective, varying from functional, emotional, and experiential to self- expressive. Knowledge of the target group of brand consumers therefore becomes a necessity to ensure an effective branding process. Attempting to satisfy everyone is often a recipe for branding disaster. Gray (2006:56) observes that most branding efforts are driven more by competitor actions than by the need to adjust to and satisfy the evolving needs of the customers with the capabilities of the internal human resources. Branding should be taken as
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an integral part of the overall corporate strategy. Failure to do so may explain why some branding efforts fail.
Sutton and Klein (2003:78) aver that brands serve as mental shorthand for consumers deciding how to spend their money. It is therefore primal for marketers to align their brands with market trends. Since markets are inherently dynamic and constantly changing, Bauer et al. (2006:92) and Sutton and Klein (2003:67) propose that, effective brand architecture today may be very inappropriate in future. The continuous redesign and reconfiguration of brands (re-branding) is essential to remain attractive and relevant to the consumer.
According to Keller (2017:185), one of the principal objectives of branding is to produce a unique impression of a product based on relevant and significant dimensions valued by consumers. Given that relevance and consumer situations are always changing, it is imperative to track the targeted consumers and make changes to meet their needs. Bauer et al.
(2006:92) opine that strong brands assist organisations to boost their market share and operating margins ahead of their competitors, and that owing to their trust and confidence building effect, brands reduce business risk and usher stability and growth in earnings.