The Value Of A Brand
The value of brand is something that has been discussed and debated for years. But there is little doubt that brands have become vitally important to almost every sector, both in terms of quality control and product promotion. With that said, it's easy to understand how businesses would be so focused on what a brand can do for them. However, this doesn't mean the power a brand holds is not worth exploring from a consumer perspective as well. In fact, according to a recent study by JWT in partnership with The Economist Intelligence Unit (EIU), 71% of consumers are willing to purchase products from brands they don't know or trust if they share their values simply because they want to support those companies they believe in.
The Value Of A Brand As it turns out, brand value and corporate values are not mutually exclusive. In fact, companies that live up to their slogans or provide the highest quality products often do so because of the company's own values, which gives consumers a better opportunity to choose where they spend their money. " Today's consumer is asking for more from brands – and businesses are now recognizing the power of values-based action ," said Bertrand Benoit, Senior Vice President and Chief Marketing Officer of JWT North America. " Brands have a unique opportunity to use their power for good – and in doing so, attract new customers. " Conversely, businesses that don't align their values with those of consumers are losing more than just market share, they're also losing out on opportunities to keep customers engaged in the long term. While most companies may believe their brand is part of the overall business strategy, only 15% of respondents confirmed that this was the case. Instead, it appears much more likely that a company's brand will be seen as a crucial element for winning or maintaining market share in their niche. As one respondent stated " …the reason I buy from my favorite brands is because of how I feel about them and how they make me feel about myself… ". This is something that no amount of marketing dollars can trump. It's also very likely that customers will be willing to take a stand with a brand as well. In fact, 57% of respondents stated they would be willing to boycott or protest companies or products incongruous with their values, while 50% would even go so far as to file formal complaints in the event they felt their values were being compromised by a business. What's important to remember here is that consumers are not just looking for company values that align with their own. They're also looking for brands to live up to those stated values at all times, every day – and if they're not doing so, there will be consequences. This is something that should be addressed head of time, as there's no telling what a company will find themselves dealing with in the future. " Companies can only maintain their brand value if they continue to guide, nurture and shape the ongoing collective consciousness of consumers ," concluded Mr. Benoit. " Brands are being held accountable for their actions and must evolve to better serve consumers' needs ."
For more information about JWT them please visit: http://www.jwt.com/ What is Brand Management?
A business or organization's brand is its reputation, image and identity. It tells customers who it is and what it represents – in other words, what it has to offer the world.
What is a brand?
A brand is also the sum total of all the perceptions people have about a business or organization, including its products, services and value. The familiar Starbucks logo with its green color, white letters and symbol of two people embracing a cup of coffee is an excellent example. It conveys the message "Connoisseur's Choice." A famous brand is rich with meaning–values consumers associate with a product. For example, the Nike swoosh that runs down the side of their sneakers tells us the shoes are for athletes; Kleenex tissues are for those who need to blow their noses; and Coke is for people who like fizzy drinks.
Why is branding important?
Branding a company is critical because it tells the world who you are and what you stand for. When customers trust you, they feel safe buying your products; when they don't, they're reluctant to do so. And most importantly, people will only buy from a brand that they feel cares about them and their needs.
How does branding change over time?
As an organization grows and develops, so does its brand . As an example: when Coca-Cola began selling carbonated soft drinks in the United States in 1886, consumers were not sure what to make of the new product! Initially, it was called "kola," after a South American fruit. Later the name was changed to Coca-Cola, and the company's most distinctive symbol, the contour bottle, was introduced. Over time, its product has remained virtually unchanged – it's still a carbonated soft drink – but its brand has evolved with consumers' changing tastes. Today, Coca-Cola is not only the best-selling soft drink in the world; it is also a world-renowned brand . (For more information on branding history see "Heralding The Birth of American Business," pages 14–17.)
When should your company develop a brand strategy?
You'll need a clear definition of your business and its objectives when you're ready to develop a sophisticated marketing plan called a "brand strategy. " (For more information on developing a brand strategy, see "Marketing: Planning Your Corporate Image," page 57.) And your brand strategy should be part of a broader business plan called the "corporate identity."
What is corporate identity?
Corporate identity is the sum total of all the ways that you communicate and express your company's mission, vision, values and goals. This communication process combines all marketing efforts. It includes visual elements such as a company's logo, name and building design; verbal messages such as written speeches, press releases and detailed explanations; and audible messages such as recorded telephone answering systems.
How do you develop a corporate identity?
To develop a clear corporate identity that reflects your company's mission, vision, values and goals, you must: Be aware of who you are and what others think of you. Identify core values or beliefs to which people who work at your company can always turn to when they need an answer. Develop an overall brand image, including key messaging and colors that will be used on all marketing materials. Develop specific brand messages to communicate your business's unique message and meaning. There is no single formula for developing a corporate brand strategy . The process varies from organization to organization – dependant on the size of your budget and the resources available for public relations and design work. You may choose to work with a graphic designer on brand-related logo design and color schemes, or hire a public relations firm to develop your company's core messages.
Investing in a corporate brand strategy can help your company stand out from competitors' products. It'll identify the unique elements of your business and help you build relationships with customers, investors and the media. It'll also give you the tools you need to guide employees toward better decision-making about policies and procedures, including ways to improve customer service.
The History of Branding
The word "brand" comes from an old Norse word meaning "to burn." This distinguishes it from the word "mark," which comes from Old German (meaning "to scratch").
Conclusion
This article has discussed the importance of branding in our modern age. With the continued evolution of technology, globalization and global trade, we can clearly see that companies are more important than ever before, especially to the average Joe. Many corporations now have what they call a 'branding strategy', which is an identity plan that creates a sense of loyalty and trust from their customers.
The importance of branding to a company cannot be understated in today's competitive business world.
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The Value Of A Brand