Branding is a word used so liberally nowadays that it’s easy to forget its origins. Etymologically, brand is a Germanic word that means ‘to burn’. It came to mean a mark of ownership since branding irons were used to mark the hides of cattle to determine which beasts belonged to which owner. In most cases the word branding signifies something rather different nowadays. But these skin-deep origins are still in evidence.

Branding in a modern business context exists because of commercial considerations. The same was true with branding cattle. Cattle were important. They were the earliest form of money, with some of the first metal money taking the form of bull’s horns as a result. Unbranded cattle could belong to anyone or be assumed by anyone that applied their brand. This was especially true in free-roaming plains like those in the USA where, famously, a certain cattle owner with the surname Maverick refused to brand his cattle. This gave rise to the use of ‘maverick’ for pretty much anything that resists convention. It is often said that Maverick’s refusal was out of concern over hurting the animals.

But it is just as likely that cattle ownership – very much an incidental sideline for Maverick – held little interest for him. Maverick had broader business interests and did not consider his cattle to be a commercially-important activity. Those that saw their herd as an investment branded their cattle.

Branding as we understand it today is a term with its origins in fast moving consumer goods (FMCG). The rise of individual packages gradually overtook selling in bulk containers, and brands became a marks of origin applied to packs rather than hides. But in some important ways brands in FMCG and elsewhere do the same job today that cattle brands did way back: they prove not only ownership but responsibility. If we don’t know the origin of something it is much harder to be assured of its quality and to get response when something goes wrong. If a loose bull rampages through a town, knowing who owns it means knowing who to go to to get the problem sorted. Likewise we need the same traceability with products and services.

In this way branding and reputation are synonymous. This is why the great majority of things we buy are either branded or purchased through a branded source. We value that traceability and transparency. In our branded world, mavericks are rare. Muji, for example, claims to eschew branded goods, but Muji is in itself a powerful brand.

There is, of course, no rule that says non-branded goods bought in a non-branded context (say off an anonymous market stall) aren’t every bit as good as their branded equivalents. But in most cases we will only buy such goods where they are sold at a distinct discount to their branded equivalents. This observation, the recognition that branding is fundamental to adding value, has led many companies to focus on brand management as their foremost skill. Brand management can include everything from promoting the brand to designing the products, but increasingly manufacturing and client-servicing are outsourced to third parties. The irony is that this more skin-deep focus on the pure practice of branding can dilute the power of a brand.

In electronics, for example, the outsourcing of manufacture has led to an increase in quality across the board. If one factory makes flatscreen TVs for a number of different brands the standards of the most quality-focused brand are likely to have the greatest influence on factory policies and the quality of all products produced. When this happens people still want to buy a brand but are less fussy about WHICH brand. Put simply they know the goods will all be made in pretty much the same factories to very similar quality standards. The same applies to service brands. If your customers all end up being dealt with by the same identikit call centres that are used by your competitors differentiation all but disappears.

This leads us to an important conclusion. The most powerful branding tool is not words or even images; it is actions that make the real difference. What your brand does differently and what you do differently in creating, developing and managing it are key. The pressure to outsource a call centre or add a feature just because a competitor has it

can be very great indeed. And both may be the right thing to do. But with each and every move it is vital to reflect on whether you’re strengthening or weakening your brand.