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MSU dean, Richard Semenik says it’s a brand new world for business owners

At this time of the year, ranchers across the state are branding livestock. Rich Semenik, dean of Montana State University’s College of Business suggests that Montana businesses do the same thing.

by Carol Schmidt, MSU News Bureau

Business branding, or developing a symbol or feature that identifies a distinct seller’s goods or services, doesn’t belong solely to the IBMs and Targets of the world, says Semenik, who is a co-author of one of the world’s most popular textbooks on branding. Promoting one’s product through a well-thought-out brand can benefit businesses of all sizes.

"Branding cuts through the (advertising and promotion) noise," according to Semenik, whose "Advertising and Integrated Brand Promotion," is in its third edition and used in more than 500 universities around the world.

Semenik explained that in the competitive marketplace, businesses must fight harder to make certain their products stand out from the crowd. Today, hospitals, universities, non-profit agencies, mom-and-pop stores and even individuals looking for jobs have jumped onto the branding bandwagon. Branding has become one of the most popular terms used in business today and good brands become cultural icons. Think Nike, Microsoft, Coke.

As in branding of livestock, it is important to have a clear, easily recognized brand, Semenik said. However, good marketing brands satisfy multiple requirements in one shorthand image. For instance, marketing brands alert consumers to a company’s values and attributes of its product.

Semenik explains that branding also goes one step further than simply getting a product’s name out, or promoting product recognition.

"Branding is the process that lets you control that recognition," Semenik said. "With branding, you are able to very carefully decide the set of images you want for your business and the belief systems you want a person to have about your company. Branding takes you beyond description of a product to identity and image. A good brand also offers critical information about a product, such as location and price.

"With good branding, the consumer has a clear idea what that brand stands for."

Semenik explains that product brands have been around for a long timesince Procter & Gamble first branded Ivory Soap in the 1800s. The concept of branding businesses as a mainstream topic of marketing has been discussed since about1965. In approximately 1990, the concept of branding became recognized for its potential as a strategic tool.

Two good examples of national brands that do an excellent job are Mercedes and Chevrolet, he said. "These are very different brands in the mind of the consumer"

Semenik said that often brands change with time. "One of the great stories of the last 30 years is the demise of the Cadillac brand," he said. "It was the very top of the luxury market in the ’60s. Today, Cadillac represents less than 10 percent of luxury car sales. Now the brand is working very very hard to re-enter the luxury market."

Automobile brands are somewhat of a specialty for Semenik, who grew up in Detroit, the son of a technical writer who worked for Chevrolet. Semenik worked his way through college in the Chevrolet factory. He thought he might be a writer, like his father, but while taking a sophomore psychology class in the "Theories of Persuasion," he became hooked on advertising, eventually earning a bachelor’s degree in advertising at the University of Michigan and a graduate degree at Michigan State. He worked for a New York ad agency, but a part-time teaching job at a local college appealed to him and he went on to get his Ph.D. at Ohio State. His doctoral thesis was on the branding process.

"I am really interested in the complexity and diversity of functions of branding as a strategic tool for business."

Semenik taught at the University of Utah, where he was head of the marketing department. He began writing textbooks, beginning with "Principles of Marketing" and has been a marketing consultant for major companies throughout the country and taught his concepts around the world.

Montana businesses interested in developing their own brand might consider these tips offered in Semenik’s book:

*Promote brand recall. A good brand will help customers think of your brand before a competitors.

*Link the brand to an emotional identity. Emotions help link customers to a brand.

*Strive for consistency. If a brand is inconsistent, it is not valuable.

*Link key attributes to the brand name.

*Promote quality in the brand. This helps consumers know what they are getting. For example, Nordstrom or Wal-Mart.

*Define a brand image. Rely predominately on visual images rather than words and argument.

*Promote brand loyalty. A consumer that is loyal to a brand is more important than a new customer.

*Update brands when necessary. "Branding is a brilliantly conceived reflection of cultural values and mood, which is why brandings have to keep changing," Semenik says. He looks to brands becoming a bit more conservative in the future. "A sense of security is a good thing for brands right now," he says.

"There are people who hate branding, who believe it is superficial," Semenik says. "But good branding makes a company more effective and it makes shopping more efficient for customers. Branding promotes commerce and stimulates the economy."

Contact: Richard Semenik (406) 994-4423

This article is available on the Web at: http://www.montana.edu/commserv/csnews/nwview.php?article=995

A high resolution color photo is available at: http://www.montana.edu/commserv/csnews/hires.php?img=407

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