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
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)
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.
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.