Why is a strong brand important to your business...

1. Whyis a
Many otherwise savvy business people take a far too narrow
view of what a brand means to a company. Beyond just a
memorable logo, good branding increases the value of a
company, provides employees with direction and motivation, and
makes acquiring new customers easy.
strong brand
importantto your business
Thursday, 14 March 2013

2. Whatis a
brand?
The short, unhelpful answer is: everything.
To expand, it is the sum of people's perception of a company's customer
service, reputation, advertising, and logo.
There are companies that have excellent products and services that people
avoid due to poor customer service. As acquiring a new customer is far more
difficult than retaining an existing customer, customer service should be at the
forefront of the concerns of any company with an eye to the future. In addition
to remaining a financial asset happy customers also serve as the most highly
converting free advertising available. While a person may or may not buy
based on an advertisement, their purchase is a near certainty when they
receive a heartfelt testimonial from a trusted and respected friend.
Thursday, 14 March 2013

3. Another large factor in the creation of a brand is the company's reputation.
This reputation encompasses both the impressions of consumers and
other businesses and is an ongoing concern. "What do you think about Nike?"
Asking this question from the mid 80's to the early 90's would fill a person's
mind with images of Michael Jordan flying toward the hoop and that would
color the answer. Asking the same question from the late 90's to the early
2000's would bring to mind allegations of sweatshops and worker abuse also
coloring the answer.
Advertising is another component of the brand. Both the medium chosen and
demographic targeted for advertisements builds a brand. Too narrow
an advertising focus, and a company risks being "pigeon holed" and losing
their ability to expand into new markets. Too broad a focus, and the company
fails to create a definable impression of the company in the minds of would be
customers.
The last major component of a brand is the logo. Is there a person alive who
doesn't instantly recognize the golden arches of McDonalds? How about
the simple but powerful eagle of the USPS? As the "face" of a company, logo
design is critical because that simple graphic will be on every piece
of correspondence and advertising the company uses. Logo design is an art
that enables the resulting logo to be simple enough to be memorable,
but powerful enough to give the desired impression of the company.
This is why building the image of a company that is scrupulous
in its operation, both legally and ethically, is crucial.
Thursday, 14 March 2013

4. Howdoes a
Building a powerful brand increases a
company's value, it provides direction and motivation for
employees, and it enables customers to easily choose that company
for a business relationship.
brandhelpa company?
powerful
Thursday, 14 March 2013

5. Companies who publicly trade on a stock exchange are valued at many
times the actual hard assets of the company. A certain amount of this value
can be attributed to strong branding of the company. A strong brand
simplifies future business. Whether a company is in the position to borrow
funds for expansion or rolling out to an IPO, being perceived as more
valuable will make the process advantageous for the owner of the company..
For getting the most out of employees they need more than just work, they
need something to work toward. Companies with a strong brand
have established a direction that employees can follow without being told in
minutia exactly how to do so. For example, knowing the company is devoted
to build a happy client base through extremely responsive customer service
inspires employees to make that happen.
Having a strong brand is like turning the company logo into a flag that the
rest of the company can rally to. The greatest companies got where they are
by pointing their people in the same direction, working toward the same
goals.
The greater a company's devotion to build its brand value,
the better the financial return from its efforts
Thursday, 14 March 2013

6. The power
Branding assists a company in building
referral business. Would it be possible for you to tell a friend
about the new shoes you love if you couldn't remember the brand? A large
reason 'brand' is the word used for this concept is that the goal is an indelible
impression. As the most profitable advertising source word of mouth referrals
are only possible in a situation where the company has created a powerful
link between the fine product or service and the company that provided it.
to generatenew business
strong brandof a
Thursday, 14 March 2013

7. Branding also allows a company to pick up easier new business by standing
out from the crowd. Imagine that a person needs to buy a baseball bat but
has never actually held one. There are many, many manufacturers out there,
but it is a near certainty that the person has heard of Louisville Slugger.
While the person may go with a different bat based on individual needs, the
advantage of being the first company to enter a person's mind in a given
industry is simply impossible to overstate.
The most profitable companies in the world all have a
single thing in common. They have established themselves
as a leader in their particular industry - they have built a
strong brand.
Thursday, 14 March 2013

8. Economic benefits
A good brand not only helps people identify with an organization,
it has been proven to have the power to increase its value.
When your brand has a strong presence in the marketplace, you
reap a range of economic benefits, including the following....
strongof a
brand
Thursday, 14 March 2013

9. • Premium pricing: Consumers pay more for branded items that
they believe have higher value and lower risk than lesser-known
alternatives.
• Lower cost of sales: Consumers of valued brands make repeat
and frequent purchases. As a result, customer-acquisition costs are
amortized over a long-term client relationship.
• Lower cost of promotion: Consumers of valued brands become
ambassadors who spread positive word-of-mouth at no cost to the
brand.
• Higher market share: Valued brands acquire loyal customers who
recruit more customers to the brand, increasing the brand’s share of
market while reducing customer-development costs and building
immunity to competitive attacks.
• Lower employee turnover: Great brands attract passionate
employees, who pass their enthusiasm to satisfied consumers, who
in turn make employees’ jobs more enjoyable, reducing employee
turnover as a result.
• Higher stature: Valued brands enjoy a high level of awareness and
esteem in the minds of consumers, industry leaders, community
leaders, news editors, and financial analysts and investors, which
leads to yet higher brand preference and marketplace prominence.
Thursday, 14 March 2013

10. Whatprice a
strong brand?
As the world of brands becomes ever more cluttered and competitive, the
marketer’s task of building and maintaining strong brands becomes
increasingly difficult.
Business owners wants concrete evidence of return on marketing investment.
Yet the challenge of demonstrating a brand’s true value is complex. What
proof do we have that strong brands really provide a financial benefit to
brand owners and shareholders?
Brand Identity is all about creating perceptions. In an age where Brand
matters more and more, everyone viewing a business or product from the
outside (and the inside) forms an opinion of the Brand. It makes business
sense to ensure that perception is not only a good one - but the right one!
And in that context, what price not having a strong brand!
Thursday, 14 March 2013