Coke. Nike. Saturn. All are recognizable brand names that elicit an instantaneous response thanks to their branding.

While branding is nothing new, recent studies are raising some interesting issues about branding practices and the techniques employed to inspire customer loyalty.

"Advertising from the 60s, such as 'Buy this coffee because it tastes better,' was about the product and its attributes." said Mark Kay of Marketing. "Advertising strategies have changed over the decades."
At a recent School of Business Brown Bag Seminar, Kay discussed his paper, "Branding and Corporate Profits, or Does it Pay to Lie?" and examined issues raised in a PBS Frontline documentary "The Persuaders," which focused on how market researchers, consultants and copywriters are spending millions of dollars to persuade consumers what to buy, whom to trust, and what to think.

There have been studies about the physiological affects of branding that note the power of brands in shaping how products are experienced. Kay suggests that the study of brands is more akin to the study of stories or mythology than it is to the physical sciences. He says that in today's competitive business environment, corporations are not selling products, but selling experiences. Nike, for example, sells the experience--the "attitude" to "just do it."

"It's not only about the product itself, it's about how the product inspires people with a certain way of thinking," Kay explained. In some cases, branding can lead to an almost cult-like following. Kay notes that Harley-Davidson is a company that is not only about a product, but about a lifestyle, and other companies are adopting similar tactics. General Motors held a picnic for its Saturn car owners, and this later became an advertising tool, featuring the picnic in commercials.

"The company created a gathering for Saturn owners and call their customers part of the 'Saturn family.' " he said. "Some people see what Saturn has done as negative because it's only about making money and commercialism. But consumers enjoyed the experience; they liked the unique opportunity of meeting other Saturn car owners."

During the seminar, Kay referred to an infamous quote from the book Under the Radar by Jonathan Bond and Richard Kirchenbaum that compares consumers to cockroaches. Kay explained, "To compare people to cockroaches sounds terrible, but the authors were making quite a positive statement. The idea is that you spray them with ‘marketing' and after a while, they get immuned--people will not be continually fooled by marketing tactics, they are smarter than that."

Consumer loyalty also comes into play when a company finds itself in the middle of controversy. Several years ago, Nike received some negative press for the way it was manufacturing sneakers and lying about it. The company, however, did not suffer sales losses. Kay suggests that negative behaviors do not always affect sales. "Some things indicate that corporations do suffer consequences, like Anderson with the Enron scandal," he said. "But on the other hand, there is evidence to show that companies are not always affected by negative publicity."

Kay's interest in branding came about while he was conducting research on sustainability. Kay notes that organizations need to develop a strategy of growth without destroying the environment, and business schools should be at the forefront of this idea. "Sustainability simply means running a company without wasting resources and placing a burden on future generations. In fact, companies that demonstrate ethical responsibility can be very profitable."

He cites companies such as The Body Shop, which is against animal testing and believes a business has the responsibility to protect the environment in which it operates, and Stonyfield Farms, which is committed to using only pure all-natural and organic ingredients, as sustainable corporations. Kay, who presented a paper on sustainability at a conference in Chicago last summer, is applying for a sabbatical to study these types of companies.

Kay holds a Ph.D. in marketing from the City University of New York, an M.A. from the University of Chicago in religious studies, an M.F.A. from the University of Chicago in art and design, and a B.F.A. from the School of the Art Institute in Chicago. He says it's his diverse education and interests that have led him to his current path. "Issues about branding hit a chord with me," he said. "I associate a lot of things in my background with the study of brands. It is a broad area of research."

The Brown Bag Research Seminars, Kay says, are important forums for the campus community to stimulate interest in ideas. "We do these seminars to stimulate faculty to present research and to get feedback on their work." As for his research, Kay said. "The study of branding is not about taking the side of business. Academics represent the value of truth. It's about seeing multiple perspectives, examining all the evidence. That's what a university is all about."