Branding in Service Markets: S-D Logic and Brand Strategy

Introduction and Research Questions

No "brand" or global economy exists in a vacuum. In countries throughout the world, significant and evolving fiscal components vitally contribute to long-term trends occurring in both brands and economies, particularly in sizeable emerging economies (Vargo & Lusch, 2006; Haig, 2011). Although branding theory has been primarily developed in the context of consumer products, most economies demonstrate that the majority of companies sell services rather than products. As Haig (2011, p. 3) notes, "Branding 'presells' the product or service to the user." Through investigating the evolution of branding theory in the service realm, this paper seeks to enhance understanding not only of branding in service markets but also of service-dominant (S-D) logic.

Just as marketing increasingly influences most aspects of consumers' lives, brands and branding have become significant components in the contemporary progressive marketplace. Organizations like the WTO, as well as many others, regularly utilize branding marketing and management practices. In turn, branding has become critical to structuring commercial and economic activities throughout the world. Some marketers even argue that brands rank among the most significant ideoscapes in the globalization process (Heding, Knudtzen, & Bjerre, 2009).

This paper addresses the primary research question: How may branding be effectively implemented in service markets? The following four sub-research questions support the primary research question:

1. What characteristics compose the concept of branding?
2. How does S-D logic correlate with service markets?
3. What are a number of challenges to effectively implementing branding in service markets?
4. What considerations may strengthen branding in service markets?

The objectives of the paper are to: (a) conduct a literature review identifying the characteristics of the branding concept, the evolution of branding theory in the service realm, S-D logic and its relationship to service markets, challenges to effectively implementing branding in service markets, and considerations that may contribute to more effective service branding; (b) analyze and discuss findings from the literature review, including similarities and contrasts; (c) present conclusions relating to the findings; and (d) make recommendations for effectively implementing branding in the service market as well as for future research.

Bad branding may cause good products to fail. Similarly, bad branding may negatively impact good services. Consequently, understanding how branding works in service markets, as well as what differentiates good branding from bad, comprises a credible concern for research. Just as no brand or global economy exists in a vacuum, no study can materialize without reaching out and drawing from other relevant studies.

Characteristics Composing the Branding Concept

Even though consumers may not be able to purchase youth, they can buy products. Consequently, commercial messages routinely assert that particular products will convey what consumers really want. TV commercials typically represent the product as something more than the actual product — things important to the consumer such as sex, success, and youth. For example, the context for the marketing of a car may include a "successful crowd of people in an upscale neighborhood, or the man who buys the car gets the woman, or the woman who buys the car is young, beautiful, and desirable while she's driving it" (Sharpe, 2005, p. 657). Marketing attaches those and other meanings to products.

Marketing sells a benefit or an image more attractive and bigger than the actual product. Attaching a benefit or an image to a product allocates that proposed larger meaning to what the organization desires to sell. As car manufacturers and dealers desire to sell cars, they design their marketing efforts to sell something bigger first, and then by association, they sell the cars. This concept relates directly to branding (Sharpe, 2005). The majority of brand definitions have been based on the following, which Aaker proposed in 1991 (Pike, 2010):

"… a distinguishing name and/or symbol (such as a logo, trademark, or package design) intended to identify the goods or services of either one seller or a group of sellers, and to differentiate those goods from those of competitors." (Pike, 2010, p. 129)

A brand constitutes a design, name, sign, term, or a unifying combination of them, designed so consumers may readily distinguish and identify a product or service from competitors. "Brand names communicate attributes and meaning that are designed to enhance the value of a product beyond its functional value" (McDowell & Batte, 2005, p. 17). The brand provides a symbol that makes it easy for the consumer to rapidly identify a product while simultaneously facilitating the repurchase process.

Pike (2010) asserts that branding constitutes more than the presentation of symbols. The concept of brand identity includes the self-image the organization desires for the brand, while brand image depicts the actual image of the brand that consumers hold. The marketer uses brand positioning elements — the product's name, symbol, and slogan — "to cut through the noise of competing and substitute products to stimulate an induced destination image that matches the brand identity" (Pike, 2010, p. 130). Analyzing the level of congruence between brand image and brand identity, in relation to brand performance measurement, presents a measure of brand equity.

Branding depicts a concept inherent in marketing. "[B]ecause the customer perceives the product as being valuable . . . branding is more about the customer than it is about the product. It's the personality of the product that people relate to" (Sharpe, 2005, p. 657). People readily associate Allstate Insurance with the tagline "You're in good hands," and link State Farm Insurance, Allstate's competitor, with "Like a good neighbor, State Farm is there" (Ibid.). This reflects an emotional relationship that customers experience with a product's personality.

Name recognition as well as the familiarity of a company logo often helps promote sales of a particular product. Branding, however, encompasses more than a particular company name, logo, product, or customer service. "It's about the customer's perception of the product and the relationship with the personality of the product. . . . It's more about loyalty and confidence and all of the things that make a relationship good" (Sharpe, 2005, p. 657). According to Warnaby (2009), place branding — an emerging field — not only draws from classical branding theory but also from relationship marketing, services marketing, tourism marketing, and urban planning.

Whether marketers design promotions to sell customers on visiting particular places, purchasing certain cars, or buying another product, they must ensure customers do more than merely recognize the brand. Customers must be motivated to act. The marketing message must be consistent to be effective, and to build brand loyalty, the message must be repeated. When repeated loudly and consistently enough, the message begins to not only sound right to customers — it begins to resonate in their minds (Sharpe, 2005).

The brand also serves as a substantial financial and political power at the macro-level of culture, particularly as it relates to globalization concerns. Just as the growing impact of marketing touches most aspects of consumers' lives, brands and branding have likewise become "an increasingly dominant market economic and commercial ideoscape" (Heding, Knudtzen, & Bjerre, 2009, p. 210). With organizations like the WTO implementing branding in their marketing and management practices, branding will likely remain central to structuring commercial and economic activities globally.