These two terms are often used interchangeably but that is far from the truth. While they both interact with one another, they are not the same. Understanding the difference is the start of building a successful business.
This example is originally from Seth Godin's Book, This is Marketing. The example has been expanded on from our own perspective.
If Nike opened a hotel....you would know exactly what it would look like, feel like and what it’s personality and messaging would be.
On the other hand if Hyatt started selling tennis shoes we would be clueless as to what they would look like.
The reason is... Nike has a brand.
If the brand is strong enough that its values and personality are so clear they would translate to anything...that is a brand.
On the other hand Hyatt is a commodity. They are competing in a market of similar business who all do the exact same thing with no differentiation. This becomes an issue because now, they are in a price race. Who can offer more for less? When there is no excuse to charge more...they become a commodity with very little control over pricing and they have much smaller margins in everything that they do.
Nike has built this through time, consistency and a clear strategy from the beginning. This is what creates loyalty and an extremely successful business.
Branding has been the value in every business that excels. The brand is not the logo, it is everything the business does and how they make customers feel. This is extremely important. This is what allows businesses to charge more and gain much more success. They are able to build loyalty and admiration of their brand so that they make automatic sales every time they release a new product.
A logo is just a mark. The brand behind the logo is what makes the mark truly successful over time.
The logo is so important but it can not ever stand as it should without a thoughtful and strategic brand. This is the mistake we see so often. The logo is important but when it is the only focus and the branding lacks, the business will suffer.