On logos and branding

Branding, like advertising, is one of those things many people simply can't quite believe actually works. Or at least they don't think it works on them. A brand is not something you can touch or hold. It's more concept than concrete.

But when I think about branding I think of the consistency of the BMW hood or the hidden arrow in the FedEx logo. I see the waves of water in the Dasani logo. I see white earbuds, swooshes on sneakers and the "Golden Arches." Alligators on polo shirts and the Yankees in pinstripes. Or the symbolic power and beauty of the Red Cross logo. I associate green and yellow with John Deere, orange with Home Depot and yellow with Best Buy.

A brand identity is a powerful thing that, when done well, can help associate a company with ideas and connotations that tell a story, reinforce marketing concepts and provide a clear, consistent message to consumers.

Oh, and my children can spot those "Golden Arches" from at least two miles away.

McBranding

There was a time when skeptics scoffed at the notion that a baseball actually curved. It must be an optical illusion, they said.

This provoked the famous pitcher Dizzy Dean. "All right," he challenged, "go stand behind a tree and I'll hit you with an optical illusion."

Similarly, some people today question all the money companies spend on advertising and branding and wonder whether they'll ever see a return on their investment. "Is there anyone who doesn't already know about McDonald's? Why do they need to advertise?"

A fascinating new study on McDonald's packaging shows us that advertising may be a sneaky curveball. We all have our doubts that it works on us, but it likely influences our purchasing decisions and brand perceptions more than we even know.

Keep your friends close, but your competition closer

I had an economics professor tell me this story once. I have no idea if it's completely accurate or taken from a book, but years later I still find it interesting.

McDonald's has a pretty successful track record. Rarely do you see a McDonald's location go out of business. When McDonald's is considering opening up a new location, they spend thousands of dollars and commission a study to look at factors such as:

• How far away is the closest McDonald's?
• What's the average income of the surrounding neighborhood?
• Is it a commercial or residential area?
• How much would the real estate cost?
• How much traffic does the road get? At what times of the day?
• What speed are the cars going?

Here's what Wendy's does:

• Open franchises next to McDonald's.

If the area can support a McDonalds, in all likelihood a Wendy's will thrive there too. And now they've saved all that time and effort researching locations. Take a look around in your town and as you travel. They are often in very close proximity.

So how does this apply online? Don't turn a blind eye to your competition. Learn from their successes and failures. Subscribe to their e-newsletters or RSS feeds. Use tools like Alexa and Google News Alerts to keep track of what they are doing. But also collaborate with them when it makes sense. After all, there's probably room on your street corner for both Big Macs and Frostys.