Benefits of Branding
Provides benefits to buyers and sellers
• Help buyers identify the product that they like/dislike.
• Identify marketer
• Helps reduce the time needed for purchase.
• Helps buyers evaluate quality of products especially if unable to judge a products characteristics.
• Helps reduce buyer’s perceived risk of purchase.
• Buyer may derive a psychological reward from owning the brand, IE Rolex or Mercedes.
• Differentiate product offering from competitors
• Helps segment market by creating tailored images, IE Contact lenses
• Brand identifies the company’s products making repeat purchases easier for customers.
• Reduce price comparisons
• Brand helps firm introduce a new product that carries the name of one or more of its existing products...half as much as using a new brand, lower co. designs, advertising and promotional costs.
EXAMPLE, Gummy Savers
• Easier cooperation with intermediaries with well known brands
• Facilitates promotional efforts.
• Helps foster brand loyalty helping to stabilize market share.
• Firms may be able to charge a premium for the brand.
What is Intangible Brand Value?
There has always been a struggle between marketers trying to convince corporate senior management that the company’s brand is its most valuable asset and should be included in the company’s overall investment strategy to ensure it works its magic. However, what do you say when the men and women in the corner offices ask you to quantify your argument for why the company should invest in branding initiatives? The challenge for marketers has always been finding metrics to measure the value of a brand. Certainly, one can point to brands like Apple and make the argument that the value of branding is too obvious to ignore. However, ignore it they will unless you can prove its worth.
Next time you head into a meeting in...