What’s in a brand anyway?

Submitted by Mitch Seigel on Wed, 4/17/2012

A recent meeting with a manufacturer reminded me of an experience years ago when I was buying my first stereo. Independent components were in at the time. The most important piece was the receiver, which determined the power and options for the rest of your system....

When I went into the section of the electronics store to check out the receivers, I was blown away at just how many companies made receivers. There must have been fifteen in all. I started narrowing things down by the options they offered, as well as the look of the unit. I only was familiar with about two to three of the fifteen or so brands on display. I couldn’t make a decision and left without buying my first receiver.

When I went home I talked with my father about the situation. He worked in the electronics industry at the time. I told him I couldn’t narrow my choices to less than nine receivers. He proceeded to tell me that of the nine choices I had remaining; only three companies were the actual manufacturers, while the other six bought their products from one of those three.

It was an important moment in my life, realizing that in most industries; only a few companies make the product and several more market the product. In some cases the branding that is done by a company who only markets the product can out muscle the company who makes the product. In that case, both companies win. My father’s lesson helped me narrow my choices down to two, and then it was a matter of options and price. That Pioneer brand receiver is sitting in my office right beyond me as I write this blog, and thirty eight years later, it is working as good as when I bought it.

What are your challenges when it comes to branding? I look forward to hearing your comments. Until next time …