A strong brand is an essential aspect of any worthwhile marketing strategy. It is well known that people tend to stick with brands and branded goods that they know well. A strong brand is needed if you want to find your particular market niche and build up your business.
You may, however, find that a lot of businesses are talking about their brand without ever really understanding what it is that goes into creating a brand – what the fabric of a successful brand is. Sure we know that companies like Coca Cola have a strong brand but they didn’t create it overnight – does your business have the vision (often long term vision) to be able to know who you are and what you stand for? Can you then apply it across your business?
Below are five good reasons why you need to get yourself a strong brand.
Customer Brand Loyalty
It is well known among seasoned marketers that customers may choose a brand because they like the way in which it is presented, but stay with a brand when it satisfies a need. Customer brand loyalty is an essential factor in the success of many companies, the lack of a strong brand could mean mediocrity or death for your company.
When customers are loyal to a brand, many of them would rather go without than accept a substitute. Brands are more like a certain sandwich spread than you might imagine, you either love or hate them. Generally speaking people like what is familiar and will often stick with what they know.
People Like What They Know
A brand attracts customers for a number of reasons; the look and feel of a product is synonymous with a particular brand. A brand speaks to people in terms of its appearance or because it has been mentioned in an advertisement or by a friend. A brand therefore speaks to potential customers and to business rivals on a number of levels.
The colour and shape of a brand speak to people’s senses; they are taken by particular colours. Hearing advertisements or customer recommendations speaks to a customer’s auditory sense – brands have to be strong if they are to appeal to potential customers in this way.
A Strong Brand Inspires Growth
Once you have a strong brand, you no longer have to stick with one product or service, you can add to the range. People will often try something new simply because it is marketed under the brand of one or other of their favourite items. Once a brand is recognised by customers, it is much easier for that company to introduce new products and expect that they will sell well.
Positioning in the Market
It is a lot easier to develop and position products when you have a strong brand. People recognise brand names when they have seen them on the shelves or heard them talked about in the pub or on the radio or television. People associate particular brands with specific benefits, which makes them open to trying something new, which is beneficial to that brand.
A Strong Brand Has its Own Value
When a brand becomes really well known it develops its own value. People are more likely to buy shares in a company whose brand has become a household name, than they are in something completely new. When a brand becomes valuable in its own right, it has achieved when is known as brand equity. Owners of that brand can either sell shares as above, licence others to sell their product, or sell the brand outright.