NEXT-GENERATION BRAND LOYALTY

Branding is not just about creating a name or logo; it is a multi-layered journey that spans historical origins, global changes, consumer perceptions, and sustainability

“I wrote this branding story because I believe that in order to understand where brands are today and where they are headed in the future, it is necessary to analyze their past correctly.”

BRANDR

The origin of the word “brand” comes from the Old Norse word “brandr,” which means “burning piece of wood.”

It was not used as a verb until it acquired the meaning of “marking permanently with hot iron,” but in the 17th century it began to be used in the sense of “marking” and increasingly in the sense of “claiming ownership.”

REGISTRATION

Trademark registration became a business standard in the 18th century, first in the Netherlands, then in Europe and America. Today, a brand is defined in many dictionaries as a “legally protected name or design.” Brand registration has become a standard practice even for small businesses.

DIFFERENTIATION

In the first half of the 20th century, brands began to differentiate themselves by using unique logos, symbols, and brand characters, which became a defining factor. Logo and packaging design also became recognized as professions. During this period, the concept of USP (Unique Selling Proposition) gained importance. One of the first examples was P&G’s floating soap, Ivory. Subsequently, many brands aimed to influence consumer preferences by embracing their unique characteristics.

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With the spread of television in the mid-20th century, TV commercials also became very effective and appealing. Although production and broadcasting costs were high, the impact of advertising attracted a great deal of interest. Brands that ran intensive television advertising campaigns increased their awareness, sales, and customer loyalty. This period went down in marketing history as the rise of mass media. Advertising became an industry in its own right.

BRAND MANAGEMENT

As brands have become the core value and driving force of companies, professional brand management has come to the fore. First in America, then all over the world, marketing organizations became widespread. While production was responsible for quality and efficiency, the sales team was responsible for distribution and visibility, R&D was responsible for innovation, and finance was responsible for balancing income and expenses, the marketing department became responsible for brand management.

4P

Following these developments, a holistic approach to marketing was adopted, and the 4Ps concept entered our lives: Product – Price – Promotion – Place. This meant that the marketing team would no longer focus solely on communication but would see the bigger picture. They would closely monitor the market, conduct research, brief R&D on new products, prepare marketing plans, and manage communication and campaigns.

POSITIONING

Jack Trout observed that in the past, almost every TV advertisement was effective, but in today’s world of information overload, advertising recall rates have declined. He therefore argued that brands must adopt a specific position and deliver consistent messages. Positioning theory spread throughout the world in the 1980s and laid the foundation for many commercial successes until the 2000s. However, as everyone began to use similar methods over time, it became insufficient on its own.

BRAND SENSE

When every brand does similar things, it becomes difficult to differentiate. This led to the idea that brand communication should target other senses as well. People should be able to see, hear, taste, smell, and touch brands. Martin Lindström opened a new door with his communication theory targeting the five senses. Pleasant scents began to be detected in stores and on shelves, and materials providing a natural touch were used in packaging.

BRAND IDENTITY

At the end of the 20th century, the world began to globalize and new markets opened up. Products began to be sold in Asia, Africa, and the Middle East. These markets had different demands; however, it was not right to adopt a different approach in every country. Thus, the idea of brand identity came to the fore, and brand guidelines were developed. The unchanging and adaptable elements of brands were clarified. For example, food brands ran Christmas campaigns in some countries and Ramadan campaigns in others. However, the core elements of the brand (e.g., pleasure, enjoyment) and its personality (e.g., sincerity) remained consistent across all markets.

BRAND EXPERIENCE

In the 2000s, digitization became a defining trend on a global scale. The use of the internet and social media has rapidly spread, and online sales have increased. It is no longer enough to put products on shelves, advertise, and display them. People are more demanding. Brand loyalty has declined during this process. The younger generation, in particular, prefers to order from digital marketplaces rather than going to supermarkets. They demand more experiences, more entertainment, and satisfying brand interactions, and they want to share these on social media. Companies have also reorganized their operations accordingly. It has become critical to manage the brand correctly at every touchpoint and convert it into sales with attractive campaigns. The number of loyal customers who always buy the same product when they go to the market has decreased. Consumers can quickly compare prices and promotions at all points of sale before making a purchase decision. Points of sale also provide information to consumers through all channels.

BRAND ACTIVISM

As companies globalized and grew, new problems emerged as they sourced products from different sources. Child labor and working conditions became topics of debate in some countries. The sources of certain raw materials became hot topics on social media. Companies have turned to issues such as sustainable agriculture by defining themes of higher purpose. While some consumers believe in these initiatives, others find them to be mere window dressing. It seems that traditional corporate social responsibility projects are no longer convincing people. The younger generation, in particular, demands more sincere and realistic projects. This is changing the criteria for brand loyalty. In addition, while big brands used to offer higher quality products, today it is possible to access products of similar quality from all over the world. Quality alone is no longer a determining factor.

SUSTAINABILITY

The threat of climate change is affecting both the world and brands. Many experts point out that global supply has increased more than necessary, and that such high production creates excess demand and harms nature. The planet cannot sustain this excessive burden. Renowned marketing expert Philip Kotler has begun writing about the concept of “demarketing,” which argues that the consumption of certain products should be reduced. In other words, the marketing of some products should actually aim to reduce their consumption. This approach will also become a new factor in brand loyalty.