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Brand as Strategic Capital: From Substantive to Programmed Identity 🇺🇸

Brand as Strategic Capital: From Substantive to Programmed Identity 🇺🇸

🌐 Also available in: 🇪🇸 Español

Original source: xmastv


This video from xmastv covered a lot of ground. Streamed.News selected 8 key moments and summarises them here. Everything below links directly to the timestamp in the original video.

Ever wondered how the brands you know and use daily manage to position themselves in your mind without a long history? The answer lies in a sophisticated strategy of artificial and programmed identity, indispensable in the modern economy.


Brand as Strategic Capital: From Substantive to Programmed Identity

In the contemporary era, brands have transcended their traditional role to become the most valuable capital for any corporation. Moving beyond the generational consolidation of the past, where intrinsic quality, like that of Lindt chocolates, built a reputation over time, today's companies must construct a programmed identity from their very inception. This imperative is driven by market speed, which no longer allows for the slow maturation of a brand through tradition, compelling organizations to consciously articulate their strengths and weaknesses for effective communication.

This evolution stems from a post-World War II paradigm shift, where marketing assumed a prominent role in a supply-driven society. In this scenario, the public does not articulate its needs; instead, the company is responsible for creating and anticipating them. According to Steve Jobs' perspective, this dynamic, though "chilling," reflects an undeniable truth in shaping mass consumption, highlighting the primacy of proactive brand building in the current economic landscape.

"The public doesn't know what it needs, and it's the company that has to provide it. The phrase is chilling, but it's the plain truth, and it comes from Steve Jobs, who can't be called a failure."

▶ Watch this segment — 37:28


The Primacy of the Imaginary Over Reality in Contemporary Brand Building

In the current context, the realm of the imaginary and beliefs has gained decisive preponderance over objective reality. This "semiosphere"—the intricate web of images, signs, myths, and untruths—exerts a more substantial influence than concrete facts, shaping a reality where the willingness to believe outweighs the imperative of rational verification. This dynamic, intrinsic to image theory, implies that persuasion is achieved through emotional and imaginary triggers, not rational arguments, compelling brands to operate within this register to ensure their message is received.

Contemporary society, characterized by the abstraction of financial capital and a mass consumer market, is governed by this logic of belief. In this environment, the value of companies often lies more in their image than in their material assets. Planned obsolescence affects not only products but also the individual, who is continually transformed under the influence of consumer narratives. Large distribution networks understand this mechanism, employing "routing" techniques in supermarkets and prioritizing product image changes, demonstrating the centrality of the imaginary in shaping consumer behavior and even politics.

"It's easier to believe than to realize. And that's the theory of the image: that it's a belief, and until that belief takes root, no scientific data, statistics, or numbers will persuade."

▶ Watch this segment — 30:08


Brand Image as a Construct of Actions and Omissions: The 'I Love New York' Case

Brand image is a complex construct, derived from both explicit actions and tacit omissions of an entity. Its strength lies in internal conviction, as no one can persuade others of something they are not intrinsically convinced of themselves. This principle is eloquently illustrated by the slogan "I Love New York," primarily conceived as a message of self-esteem aimed at New Yorkers themselves during a period when the city was associated with crime. The power of this internal reaffirmation message, a creation of Milton Glaser, transcended its initial purpose, expanding globally.

The global success of "I Love New York" transformed this message of local pride into a universal emblem, replicated by numerous cities not as plagiarism, but as an extension of its original influence. This phenomenon underscores the ability of a well-established brand to operate independently of its specific product, as demonstrated by Japanese corporations like Yamaha or Nike, whose brand precedes and validates any diversification of their offerings. In this sense, a brand can even pre-exist the definition of its products, positing its reliability as its primary asset.

"No one convinces others of something they aren't convinced of themselves. 'I Love New York' is an internal slogan, it's for the damn New Yorkers to finally believe in themselves."

▶ Watch this segment — 47:56


Internal Credibility as a Brand Pillar: The Maradona Model and City Branding

The effectiveness of a brand, whether for a company or a city like Paraná – for which Norberto Chaves collaborates with Carlos De Luccia – fundamentally depends on the internal conviction of those who develop and transmit it. Consistency and persistence are essential attributes for building a solid and valuable identity. In this process, objective truth does not prevail; instead, it is verisimilitude: that which is credible and takes root in the collective imagination. Only in exceptional cases, such as that of Diego Maradona, does innate talent possess such real power that it imposes itself, breaking down barriers of disbelief without the need for conventional image management.

For ordinary companies, especially SMEs, it is crucial to invest in the imaginary dimension of their brand, even within their financial limitations. They cannot afford to neglect this aspect, as belief in the value of a product or service is the engine driving its acceptance. The Maradona phenomenon, where his footballing genius negated any need for communicative mediation, is an exception that highlights the importance for other organizations to actively build this belief, cultivating an image that, while not always "true," is undoubtedly "plausible" and powerful.

"What's important is what's plausible, not what's true. Sometimes they coincide in cases of utmost honesty; he's a public figure, a tremendous actor, and his artistic power sweeps everything away, requiring no communication or public relations manager."

▶ Watch this segment — 33:40


Consistency and Perseverance Forge Brand Culture Amidst Leadership Turnover

Building a robust brand image demands unwavering perseverance and internal consistency. It is not enough to simply 'be'; it is imperative to 'appear,' and to maintain this appearance constantly to forge a corporate culture that generates effective and lasting communicative inertia. This strategic maturation process requires time and the alignment of all corporate stakeholders, allowing tradition to take root in public consciousness and embed the brand in the collective imagination.

However, this effort is frequently undermined by excessive executive turnover. New managements, upon taking charge, often break with the meticulously constructed identity. This dynamic, which displaces those with accumulated knowledge and brings in "newcomers" lacking a deep understanding of the brand, is catastrophic for institutional coherence. Instability in leadership can dismantle generations of work, fragmenting the company's narrative and diluting its symbolic value in the eyes of the public.

"Perseverance means not going in fits and starts. That's why you have to think it through very carefully beforehand, because once you're on a regular slide, it's difficult. So, it only proposes strategic action, requiring a little time for internal consistency to mature among all company stakeholders."

▶ Watch this segment — 35:30


The Brand as the Predominant Intangible Asset in the 21st Century

Norberto Chaves, a renowned corporate identity specialist, emphasizes that in the 21st century, the brand has transcended its traditional function to become the most valuable asset for the most significant global companies. Unlike previous eras, where physical assets constituted the bulk of corporate wealth, contemporary corporations find in their brand the primary driver of their valuation and competitiveness. This transformation is a fundamental pillar for understanding and approaching any commercial initiative in the current economic landscape.

This paradigm shift underscores that a company's identity and public perception are more crucial than its material possessions. A brand's ability to generate recognition, trust, and loyalty has become the central axis of value creation. Understanding this preeminence of the intangible is vital for businesses, as it guides strategies not only towards the production of goods or services but also towards building narratives and meanings that resonate with the public and distinguish the entity in a saturated market.

▶ Watch this segment — 29:28


"City Brand" Requires Local Pride and Valuing Pre-existing Attributes

Building a solid "city brand" fundamentally depends on the belief and pride of its own inhabitants in the message they project. Norberto Chaves criticizes a lack of self-appreciation in Argentina, where lament often takes precedence over the exaltation of positive values. To construct an effective urban identity, a rigorous diagnosis is essential to identify a locality's distinctive attributes and its "positive subsoil," capitalizing on them to generate high-value events that elevate its cultural and tourist profile. The elimination of initiatives like the Mar del Plata Film Festival illustrates the negligence in valuing these assets.

A successful city brand strategy must be based on pre-existing positive values, which do not need to be invented but rather detected and enhanced. Cities like Buenos Aires, known for tango, also boast a vast theatrical and cultural offering that has not been sufficiently communicated globally. A local government should act as a strategist, highlighting these positive focal points and creating synergies with cultural events such as film or music festivals. These actions, by adding related and non-dispersed values, allow for the consolidation of a coherent and attractive urban identity, projecting a distinctive and lasting image.

"There is no truly stable pride. An Argentine would never say 'Argentina is the greatest in the world,' because the greatest in the world is Everest, and that's not very complicated. But it's about detecting that, shall we say, positive subsoil, the positive aspects beneath the surface, and growing from there."

▶ Watch this segment — 43:52


Mercedes-Benz Argentina Faces Sales Challenges Amidst Unstable Economic Environment

Héctor Fratony, a director at Mega Automotores, details the company's strategy for navigating Argentina's complex economic landscape, marked by generational change and volatility. Mercedes-Benz's extensive product range, spanning from compact utility vehicles to high-power trucks, allows the company to adapt to sectoral fluctuations, offsetting declines in one area with strong performance in another, be it agriculture, the meat industry, or long-distance transport. This diversification provides an advantage in maintaining demand despite macroeconomic challenges.

Nevertheless, vehicle sales are hindered by price dollarization and a shortage of inputs, leading to delays and complicating predictability. Fratony emphasizes the importance of responsibility and client trust, preferring not to undertake long-term sales commitments in dollars if delivery cannot be guaranteed, thereby avoiding future problems. The company maintains a solid structure, seeking controlled growth and committing to private employment, despite uncertainty about future economic plans and currency scarcity.

"I always say the same thing: today we could make commitments to sell long-term in dollars, zero risk. And we know what would happen, so we say no. I consider that an act of responsibility. So, we work responsibly, and we have earned the appreciation and credibility of our clients."

▶ Watch this segment — 21:44


Summarised from xmastv · 56:56. All credit belongs to the original creators. Streamed.News summarises publicly available video content.

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