A Coca-Cola executive once said that if all the company’s facilities and inventory vanished all around the world, he could still walk into any bank and take out a loan based only on the right to the Coca-Cola name and formula. Yet even today’s biggest, most established brands were once new to the market.
Aside from increasing company equity, branding is a wonderful investment for the future of your business because it leads to lower marketing expenses in the future; once a brand is created you can maintain it without having to tell the story of your brand every time you market it. Additionally, branding provides consistency by providing a framework to integrate all the ways you present your business. Without your thoroughly defining how you would like for your business to be perceived, how can that message be clearly translated to your customers?
A strong brand demonstrates the uniqueness of what the brand owner is able to offer in the marketplace and creates the impression that the product or service associated with the brand possesses certain qualities or characteristics that set it apart from the competitors. It provides a vital differentiator, especially where the product or service is widely offered.
Brands are valuable to businesses because they are valuable to customers. Consumers tend to purchase brands because they perceive it to be a greater value, or because they trust the brand. Because psychologists have shown that familiarity induces liking, branding is imperative since it helps your audience remember your product. Branding creates loyalty and advocacy, promising to deliver a consistent level of quality and reliability, and creates an emotional bond and can lift what you sell out of the realm of commodity.