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  • StephenM

10 Major Reasons To Invest In Branding

Let's face it, the whole branding thing can be a bit complicated. In 'Marketingland' there are tons of different definitions for what branding actually is.  Absolute favourites being, 'it's your logo', 'it's your name', 'it's your website', etc. And whilst these elements do form part of your brand, individually they are not your brand...

Let's just forget everything you've heard before and start again here. Okay?

The most evident meaning for the concept of a brand is -

Your Brand is Your Reputation

Branding Image

Obviously, we all want our businesses to have a good reputation, but are there other specific reasons we should be investing in branding? Too right there are. We could write a 'Fifty Shades of Branding' hardback on this subject, but here are some of the more compelling reasons:

Ten reasons you should be investing in Branding

1/ Brands make it easy for your customers to buy

Familiarity breeds contentment.  Buyers don’t need to rationalise the purchase nor go to the bother of seeking out alternatives when they know and love your brand.

2/ Brands allow you to charge higher prices

Brands typically command premium rates over lesser-known products or services.

3/ Brands make it easier for your salesforce to sell

When a customer knows your brand (and likes it), your salespeople will have an easier time than the guy showing up with a completely new proposition.

4/ You’re building brand equity

Strong brands generate exceptional value. 'The intangible worth of the brand is often much greater than the corporation’s tangible assets' - Wally Olins

Brand building is effectively the ongoing investment in your most valuable asset. (Some examples of crazy brand capitalisations - Apple $2.5t; Walmart $420b, Tesla $667b)

List of global brands
Your brand is your most valuable commercial asset

5/ Strong brands attract business, without having to chase it

The reputation and integrity of the brand is already established. The Olympics don’t need to go searching for sponsorship. Neither does Formula One nor the NFL Super Bowl.

6/ Brands speed up the buying decision.

Familiarity means the customer will usually have fewer questions or none at all. With expensive capital goods, costly protracted buying processes are reduced or eliminated altogether. It also holds true with retail consumables. Think about the process of weekly shopping at your local supermarket. What percentage of products do you chuck in the trolley without even thinking about it? That right there is the power of the brand.

7/ Brands set realistic expectations for customers.

With brands, the quality and consistency of quality are already known. No disappointing surprises with future purchases. Brands build trust. We all know a Big Mac or Heinz Ketchup tastes pretty much the same the world over.

8/ Your brand is your key differentiator

Yes, your product may have some unique advantages right now, but sooner or later, your competitors will catch up.  The one thing they can’t match is your brand.  There are many cola drinks out there, but there’s only one Coke. Tons of sports brands but only one Nike.

Brand Differentiation
When other brands zig, you zag

9/ Customers are much more forgiving of brands

Every business, even the best screw up from time to time. When you have a well-known brand, they're more likely to give you that second chance.

10/ Brands make it easier to extend your range of products or services

Success breeds success. Do you think the iPhone or iPad would have had such rapid traction and been as successful had Apple launched them under a completely unknown brand name? Because a brand is successful in one area, consumers are more likely to trust and accept a new product under the same name.

If you’re still reading this, now is the time to stop.

Go to work on your brand!



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