Branding versus Advertising

We are often asked what the difference between branding and advertising is, as our work of positioning and naming companies and products is an essential component of branding.

Branding is demonstrating, advertising is explaining. What you fail to demonstrate you are forced to explain. In business, as in all aspects of life, it is more powerful and effective to demonstrate rather than to explain.

Advertising is shouting, branding is a whisper. When you whisper, people lean forward.

Here is a perfect example, while technically in the form of an ad, this is branding. No explanation, just demonstration

Focus Groups & Naming

We have always insisted that focus grouping names has a negative effect on the outcome. Our favorite Steve Jobs quote conveys the same idea in terms of product creation.

Via the May 25, 1998, issue of Business Week:

…it’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them. That’s why a lot of people at Apple get paid a lot of money, because they’re supposed to be on top of these things.

It’s true, you either know what you’re doing or you don’t.