Marketing vs branding: why most companies get the balance wrong

Executive overview

Most companies invest in branding before they've earned the right to. Branding shapes how people feel about a product — but that only works once people already know the product exists. Marketing is what gets you there: telling people what you offer and why they should buy it.

Marketing is the rocket that gets you out of the atmosphere; branding is the capsule that carries you once you're there.

The difference between marketing and branding

• Marketing: telling people what you sell and why they should buy it
• Branding: shaping how people feel — colours, music, mood, identity
• Branding only works when customers are already familiar with your product
• Branding is a luxury; marketing is how you make money

The 80/20 rule for allocating your focus

• Spend 80% of effort on marketing, 20% on branding
• Below $250k revenue: 100% on marketing, no branding spend
• If your company is declining, you're likely over-investing in branding
• A practical marketing action: email your customers daily, feature one product, explain why they need it