THE VALUE OF GOOD BRANDING

1. Customer Recognition
   One of the key values that good branding brings to a business is increased customer recognition. Designing an easily identifiable logo, that best reflects your business, is a great way to develop customer recognition. Presenting a brand, with the help of a logo, consistently across all platforms can increase revenue by up to 23%. A consistent brand image ensures it is easily recognizable for the consumer. The logo does not represent the brand directly, rather, it will invoke the association, or the perception embedded in consumers’ minds which links to the brand. Images of the brand that do not directly reference it are a great way to build customer recognition and build positive sentiment surrounding the products. Greater recognition will also strengthen the company position in comparison to its competitors.
2. Customer Loyalty
   As it is well known, customers develop loyalty to brands that they feel align best with their values. Your company values should be easily recognizable in your branding in order to draw in and maintain customers from your target market. Users who purchase basic necessities, such as toothpaste, from a particular brand are also more likely to purchase related products from that brand. Such customer loyalty helps to build competitive advantage against other brands in similar categories.
3. New Product Acceptance
   The value of having a strong brand is transparently evident when a company introduces a new product onto the market. With a great branding strategy and already developed customer loyalty, consumers are more likely to respond positively to new products and are willing to try them out. 59% of shoppers prefer to buy new products from brands that are familiar to them. Using the same brand for different products implies that the same values and quality will be used for each product.
4. Building Competitive Advantage
   A strong and recognizable brand with a consistent identity across all platforms and departments helps to ensure that a company stands out from its competitors. Differentiating your brand from its competitors based on the values that you align with or the ability of your product is key. This provides your company with a competitive edge as it lends a greater sense of credibility to all products developed through your one brand.
5. Brand Equity
   Finally, the financial benefits of good branding cannot be overlooked considering how significant they ultimately are. Brand equity is the added value that accrues to a product as a result of investments made when branding and marketing your product. Regardless of whether consumers have used a product before, they are more likely to purchase from a company that has a reputable reputation within the market. This provides the company in question the opportunity to charge premium prices based on their established reputation within the market. Despite higher prices, consumers are more likely to purchase products from brands that they trust.

As the market continues to be saturated with new products daily, establishing a strong branding strategy has never been more important. The value of good branding can be seen in virtually every aspect of any company, from its ability to increase market reach to its direct financial benefits. All companies should invest in their branding strategy in order to best reflect their own values, while reaching the needs of their target market. If your company needs assistance in developing or updating your brand, don’t hesitate to get in contact with a world-leading team of marketing professionals and develop a comprehensive marketing strategy.

Image source: Shutterstock- 458254888