The Benefits Of Branding

The Benefits Of Branding



The Benefits of​ Branding
Branding is​ the process of​ creating distinctive and​ durable perceptions in​ the minds of​ consumers .​
a​ brand​ is​ a​ persistent, unique business identity intertwined with associations of​ personality, quality, origin, liking and​ more .​
Here’s why the effort to​ brand​ your​ company or​ yourself pays off .​
1 .​
Memorability .​
a​ brand​ serves as​ a​ convenient container for​ a​ reputation​ and​ good will .​
It's hard for​ customers to​ go back to​ that whatsitsname store or​ to​ refer business to​ the plumber from the Yellow Pages .​
in​ addition​ to​ an​ effective company name, it​ helps when people have material reminders reinforcing the identity of​ companies they will want to​ do repeat business with: refrigerator magnets, tote bags, datebooks, coasters, key rings, first aid kits, etc .​
Memorability can come from using and​ sticking with an​ unusual color combination​ (FedEx's purple and​ orange), distinctive behavior (the gas station​ whose attendants literally run to​ clean your​ windshield), or​ with an​ individual, even a​ style of​ clothing (Author Tom Wolfe's white suits) .​
Develop your​ own identifiers and​ nail them to​ your​ company name in​ the minds of​ your​ public .​
2 .​
Loyalty .​
When people have a​ positive experience with a​ memorable brand, they're more likely to​ buy that product or​ service again​ than competing brands .​
People who closely bond with a​ brand​ identity are not only more likely to​ repurchase what they bought, but also to​ buy related items of​ the same brand, to​ recommend the brand​ to​ others and​ to​ resist the lure of​ a​ competitor's price cut .​
The brand​ identity helps to​ create and​ to​ anchor such loyalty .​
Consider the legions of​ car owners who travel up to​ 2,000 miles at​ their own expense to​ attend a​ Saturn celebration​ at​ the company's plant in​ Spring Hill, Tennessee .​
That's loyalty .​
and​ supposedly, more people have the motorcycle brand​ Harley-Davidson​ tattooed on​ their body than any other brand​ name .​
That's out-of-this-world loyalty .​
3 .​
Familiarity .​
Branding has a​ big effect on​ non-customers too .​
Psychologists have shown that familiarity induces liking .​
Consequently, people who have never done business with you​ but have encountered your​ company identity sufficient times may become willing to​ recommend you​ even when they have no personal knowledge of​ your​ products or​ services .​
Seeing your​ ads on​ local buses, having your​ pen on​ their desk, reading about you​ in​ the Hometown News, they spread the word for​ you​ when a​ friend or​ colleague asks if​ they know a​ ____ and​ that's what you​ do .​
4 .​
Premium image, premium price .​
Branding can lift what you​ sell out of​ the realm of​ a​ commodity, so that instead of​ dealing with price-shoppers you​ have buyers eager to​ pay more for​ your​ goods than for​ those of​ competitors .​
Think of​ some people's willingness to​ buy the currently in​ brand​ of​ bottled water, versus toting along an​ unlabeled bottle of​ the same stuff filled from the office water cooler .​
The distinctive value inherent in​ a​ brand​ can even lead people to​ dismiss evidence they would normally use to​ make buying decisions .​
I​ once saw one middle-aged Cambridge, Massachusetts, intellectual argue to​ several colleagues that Dunkin' Donuts' coffee tastes better than Starbucks' .​
So contradictory was this​ claim to​ the two companies' reputations for​ this​ demographic group that the colleagues refused to​ put the matter to​ a​ taste test .​
5 .​
Extensions .​
With a​ well-established brand, you​ can spread the respect you've earned to​ a​ related new product, service or​ location​ and​ more easily win​ acceptance of​ the newcomer .​
for​ instance, when a​ winery with a​ good reputation​ starts up regional winery tours, then adds foreign ones, each business introduction​ benefits from the positive perceptions already in​ place .​
6 .​
Greater company equity .​
Making your​ company into a​ brand​ usually means that you​ can get more money for​ the company when you​ decide to​ sell it .​
a​ Coca-Cola executive once said that if​ all the company's facilities and​ inventory vanished all around the world, he could walk into any bank and​ take out a​ loan based only on​ the right to​ the Coca-Cola name and​ formula .​
7 .​
Lower marketing expenses .​
Although you​ must invest money to​ create a​ brand, once it's created you​ can maintain​ it​ without having to​ tell the whole story about the brand​ every time you​ market it .​
for​ instance, a​ jingle people in​ your​ area have heard a​ zillion​ times continues to​ promote the company when it's played without any words .​
8 .​
for​ consumers, less risk .​
When someone feels under pressure to​ make a​ wise decision, he or​ she tends to​ choose the brand-name supplier over the no-name one .​
As the saying goes, You'll never be fired for​ buying IBM .​
By building a​ brand, you​ fatten your​ bottom line.




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