Brand Building in simple words refers to a set of marketing activities that enhances a Brand Equity and identifies it as a special and unique business entity. Branding has been one of the most important tools of marketing and the best way of promoting an organization as an elite business entity.
Branding is a perfect example of how psychology and management science are crossed together to form an intangible asset for a particular organization. In cases like high profile financial acquisitions and mergers, it is often the brand that is sold for millions of dollars and is more valuable than all the other assets of a company combined together.
This can be exemplified in the financial takeover of several brands like Cadbury, Jaguar, and Four Seasons etc. when millions of dollars were paid just to acquire the ownership of the brands, making a brand the most valuable asset in a business. A business organization must focus on building itself as a brand to improve its worth in the market. Here are a few benefits of brand building.
1. Earning the Customer’s Trust
Goodwill these days is a hard thing to come by, as the customers have become more aware and will not hesitate to switch loyalty. Establishing themselves as a brand has become one of the most sought after thing amongst the new business owners. A promise of quality from the name the people can trust is the most essential quality that most consumers seek.
2. Influence of Choice
Like mentioned above, branding crosses the principles of psychology and management science and presents it as an influencing force for the customers. Brands help the companies bond with their customers. Nike’s famous slogan ‘Just Do it’ has been well identified with millions of athletes across the world and their sheer number of loyal customers have only but risen in recent years.
3. Premium Price Demand
A brand not only provides the consumer a promise of good quality from the very best of companies but also provides companies the right to demand a higher price for their products or services. In a market it is impossible for all the players to provide the cheapest service or product. Branding provides that platform through which a company can differentiate itself from the others and demand a fair price for the high quality of service they provide.
4. Better Quality Recruitment
Branding not only improves the standards of the product or service that a company provides, but also gives the company a right to demand better work from your employees. Brands attract a larger number of trained and skilled staff required by your organization than an unbranded organization. Keeping a close watch on the recruitment and hiring the best personnel is a major fruit of brand building.
5. Easy Introduction Of New Products
Once you have the customers’ trust, it becomes easy for a company to introduce new products and offers to the customers without having to worry about their response. Brand is essential for people to identify the organization as a top notch manufacturer/provider of products/services.
6. Brand Equity
One of the chief objectives of any business organization is to increase its market value. In simple words, the more popular and trusted a brand becomes the more is the brands market value. Building brand equity is important to safe guard the business and the owners from any sort of economic crisis.
7. Lower Marketing Expenses
Brand building’s main advantage lies in its aim to establish a business as a name known in every household for the particular service or product they provide. Once a particular name becomes a brand it significantly lowers down the marketing expenses of a company.
8. Can Help The Brand Become A Generic Name Of The Product
While this advantage is often seen as bad by most business analysts, several brands have become a generic name for a specific type of a product. This exemplifies the power of brand building as a company might never need any form of promotion for itself. Colgate for toothpaste, Coca-Cola for cola drink, Styrofoam for polystyrene, and Xerox for photocopy are a few famous brands that have become a generic name for the type of products they manufacture.
While there are several advantages of brand building, the above-mentioned ones showcase its importance in the best way. Nevertheless, one must be fully aware of the pros and cons of brand building before employing it for his business.
While brand building takes your organizations to new heights it can also increase the burden of delivering the finest to the loyal customers. Please visit http://www.mediagroupww.com if you are interested to create your own brand and market your products or services online.