Understand the mark of a true brand.
When we talk about brand, sometimes we can see it in people's eyes: they're visualizing a brand, and they're seeing a swoosh. And in the traditional sense, they'd be right. After all, branding is a truly American concept. It started when cattlemen of the great, Wild West literally put their mark on their 'product lines.'
But today we know brand is a whole lot more than a mark. Or a slogan. Or a character. Today, it's a sophisticated concept, even a science, of definition, performance and measurement. And it's a concept that's still evolving. While there are a whole lot of individual components that may indicate a company's brand, in total, it's still an intangible. Yet it has a tangible value.
Understand it's not as easy -- or as simple -- as it looks.
Current business research shows that the vast majority of chief executives agree that brand is vital to their business and it repeatedly ranks as one of the top priorities on the executive agenda. Beyond that, there's a lot of confusion about what it is and how to do it. We continually note how companies make brand promises to customers with little or no attention as to how (or if!) those promises are delivered.
Adding to this complexity is the dawning of a more sophisticated consumer. They're smarter, they're better informed and they aren't easily persuaded. And in almost every category, they have a lot of choices. Organizations have to do a whole lot more than just make a claim of distinction (although it's a great place to start). They have to prove it. These savvy customers want to see evidence of distinction.
Understand that it may require a paradigm shift.
We're talking about harnessing the potential of brand, which can add tremendous stature to your products and substantial contribution to your company's worth. We can help you define your brand, but in a sense, that's the easy part. The challenge -- and the power -- lies in how you deliver on your brand promise. We see this ability to deploy a relevant brand essence as an organization-wide initiative that will reach the length and breadth of the company and substantiate itself internally even as it proclaims itself externally. This will require focus and continual application and refinement of the brand lens in every aspect of your strategy and operations. And we guarantee it will yield amazing results.
Understand what you have to gain.
A brand that inspires customer loyalty and devotion can command premium pricing. A strong brand value will directly correlate to corporate worth. Companies who have a strong brand have greater new product success, better leverage with channel partners, better recruiting success, stronger employee loyalty and heightened internal focus. A great brand can earn loyal customers who discount competitors in the purchase process, request your brand by name, recommend your brand, accept new products and services and refuse substitutes. Your brand strength will facilitate co-branding partnerships, make an attractive licensing candidate and help mitigate a brand crisis more effectively.
In a study conducted by Equitrend, brand equity was measured for its impact on ROI over time. Brand equity is defined as a combination of consumer awareness of the brand, the brand's perceived quality, consumers' association with the brand and brand loyalty. The result: firms experiencing the largest gains in brand equity saw their ROI average 30 percent, while those with the largest losses in brand equity saw their ROI average a negative 10 percent. A 40 point spread. Understand?
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