Live For Today?

by Steve Fodor

I heard an interview on National Public Radio recently (yes, I’m a late night, talk radio junkie). Philip Delves-Broughton, an English journalist who attended Harvard Business School, was interviewed about his recent book, “What They Teach You at Harvard Business School.”

There were many interesting points discussed during the 20-minute interview. However, the most interesting point I took away was how the curriculum at Harvard, from the author’s point of view, focuses on business strategies for achieving short-term, immediate gains versus long-term, sustained performance.

Interesting, in light of where the economy is today, and why it’s that way.

It got me thinking about the value of a brand. A brand’s value is not just measured in short-term awareness and sales. It’s measured in real dollars over time. In sales that last decades, not months. In why people will pay more for your brand versus a seemingly similar product at a lower price.

I once heard a “brand” defined as, “the process of creating a constellation of values for forging a strong bond with customers to create loyalty.” Wow. To me, that sounds like investing time and energy to understand why people purchase something for reasons that go beyond price. It’s hard to resist the urge to “live for today” and focus on short-term sales and promotions. Especially in today’s economy. But, in the long run, successful brands always command higher margins. And, in return, strong brands are rewarded with greater customer loyalty, ultimately lowering the cost-per-sale and delivering a greater return on investment over time.

I wonder if they teach that at Harvard?

Flickr Photo Credit: http://www.flickr.com/photos/joeshlabotnik/