Four Reasons to Invest in a Strong Brand Name
Consumers buy products based on previous experiences that satisfied a previous need and created a measurable level of trust. If consumers trust your brand, they will not only purchase your products and services, but become advocates and promoters. Let's examine 4 reasons why every business needs to invest in the development and improvement of their brand name.
1. Consistent sales volume and revenues
Building a strong brand name has the advantage of creating a strong image in the minds of the consumer that can lead to consistent repurchase of and preference towards a particular brand. Research uncovered that 60% of adults in the United States say they "try to stick with well-known brands." Think of all the friends and family members who are loyal to one brand of cigarettes, toothpaste, coffee, soap, etc.
2. A premium price advantage and larger gross margins
If you create a strong brand name in the marketplace, your products and services will be able to reap the benefits of employing a price premium. Brand conscious consumers purchase based on brand preference, and if your brand is preferred, consumers will pay the difference in cost. Louis Vuitton, Nike, Apple, Mercedes Benz, Starbucks are just a few organizations that have invested in building strong brands and obtain the benefits of their investment.
3. Strong Product Extension possibilities
Strong brand names have the ability to be applied new products and services and enjoy a faster absorption by consumers. Quick customer acceptance may be gained since people are familiar with the existing brand name and a favorable brand image can be carried over to a new product.
4. Leverage with manufacturers, distributors, and retailers
Businesses that build strong and reliable brand names in the marketplace create negotiating power with manufacturers, distributors and retailers. What do manufacturers, distributors and retailers all have in common? The answer is… all three want to generate additional sales and increase profits. If the market demands your brand; manufacturers, distributors and retailers will go to great lengths to keep your products in their stores. Brand name recognition is power, and power generates profits.
Filed under: Branding and Identity -- Tags: actionable, bottom-line, brand management, brand strategy, branding, brochure, business services, CEO, collateral, consumer, content management, cost driven, cost reduction, CRM, ERM, ERP, free markets, global business, growth, identity, marketing, marketing management, marketing matrix, marketing strategy, measurable, planning, profitability, public relations, relationships, results, revenue, sales, vertical markets
1. Consistent sales volume and revenues
Building a strong brand name has the advantage of creating a strong image in the minds of the consumer that can lead to consistent repurchase of and preference towards a particular brand. Research uncovered that 60% of adults in the United States say they "try to stick with well-known brands." Think of all the friends and family members who are loyal to one brand of cigarettes, toothpaste, coffee, soap, etc.
2. A premium price advantage and larger gross margins
If you create a strong brand name in the marketplace, your products and services will be able to reap the benefits of employing a price premium. Brand conscious consumers purchase based on brand preference, and if your brand is preferred, consumers will pay the difference in cost. Louis Vuitton, Nike, Apple, Mercedes Benz, Starbucks are just a few organizations that have invested in building strong brands and obtain the benefits of their investment.
3. Strong Product Extension possibilities
Strong brand names have the ability to be applied new products and services and enjoy a faster absorption by consumers. Quick customer acceptance may be gained since people are familiar with the existing brand name and a favorable brand image can be carried over to a new product.
4. Leverage with manufacturers, distributors, and retailers
Businesses that build strong and reliable brand names in the marketplace create negotiating power with manufacturers, distributors and retailers. What do manufacturers, distributors and retailers all have in common? The answer is… all three want to generate additional sales and increase profits. If the market demands your brand; manufacturers, distributors and retailers will go to great lengths to keep your products in their stores. Brand name recognition is power, and power generates profits.
Filed under: Branding and Identity -- Tags: actionable, bottom-line, brand management, brand strategy, branding, brochure, business services, CEO, collateral, consumer, content management, cost driven, cost reduction, CRM, ERM, ERP, free markets, global business, growth, identity, marketing, marketing management, marketing matrix, marketing strategy, measurable, planning, profitability, public relations, relationships, results, revenue, sales, vertical markets
