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5 Reasons to have a better brand for successful business. The reason No. 5

The brand is an intangible asset. Following the site Investopedia: “An intangible asset is an asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today’s marketplace.” Simply saying —Brand adds value to your business.

S&P 500 index showed that “over a 30-year period between 1975 and 2003, the overall corporate value of intangible assets increased from 17% to 80%.” A study by Interbrand in association with JP Morgan concluded that on an average, brands account for more than one-third of shareholder value.

Does that mean that the value of most businesses comes from intangible assets? If so, then brand must be the most evident of these assets.

Check this table based on information from Businessweek, Interbrand, JP Morgan league table –

Brand Value

You may say, that your business is not big enough, or you are not going to sell it. But here is food for thought. Why is that brand adds so much value to the cost of the company? Do you think they just pay for logo and couple of font/colour combinations? Hell, no. This additional price is given by recognition, trust and love of the customers, in fact, millions of buyers.

A bit of history by Wiki:

“During the 1970s, American cola giant Coca-Cola abandoned operations in India rather than accepting a forced sale of 60% of their equity to an Indian company. Following this, the Parle brothers, Ramesh Chauhan and Prakash Chauhan, along with then-CEO Bhanu Vakil, launched “Thums Up” as their flagship drink, adding to their portfolio of older brands “Limca” (lime flavour) and “Gold Spot” (orange flavour).

In 1993, “Coca-Cola” re-entered India after a prolonged absence, spurring a three-way “Cola War” with “Thums Up” and “Pepsi”. That same year, Parle sold out to Coke for the US $60,000,000. Some assumed Parle had lost the appetite for a fight against the two largest cola brands; others surmised that the international brands’ seemingly endless cash reserves overwhelmed Parle. Thums Up had an 85% market share when sold.”

Even today majority of Indians would prefer to refresh themselves with “Thums Up” (well, it’s marginally less sweet than Coke, so there is no difference in the product). Guess it’s called customer’s love 🙂

Check all 5 reasons to have a better brand:

No. 1 “Branding helps you create a unique impression and gives you a chance to be memorable.”
No. 2 “The brand is in sharing the values and attracting like-minded people to your products and services.”
No. 3 “Good brand motivates your team and customers”
No. 4 “Branding helps you advertise effectively &creates a connection between the product and the customer.”
No. 5 “Brand adds value to your business”

5 Reasons to have a better brand for successful business. The reason No. 4

Branding helps you advertise effectively. We often divide advertisement on the basis of image building or brand advertising and selling promotions. In fact, a brand impacts both of them but let’s see it in details.

The brand advertisement is meant to build the statement. It creates an Image in the customer’s mind and usually uses compelling photography with a clean persuasive copy. Such ads must regularly be posted as they share an excellent quality. They do not sell any goods; they build a connection between the customer and the product/company/brand. Such campaigns require a big fat budget.

Promotional advertisements, on the other hand, may make money faster as they directly talk about your products. Even if they will not have your logo, colours, messages, they may sell. But if you make your brand elements and design work for it, your customers will start building an association between the product and the brand. It focuses on values of your brand and attracts Your Audience, as it wants to be associated with these values. That way you will spend less money and enhance selling ads with additional value.

You may ask why we need the first type of ads at all? Well, promotional advertisements are not created to impress your customer, they sell. So if you will try to shift customers focus from product to brand, people may not react to it and you will lose the advantage of selling advertisement.

So in both cases, the brand creates a connection between the product and the customer. Without branding recognition and trust features, you may end up spending on advertising much more.

Save money, invest in the brand, be consistent and memorable.

Check all 5 reasons to have a better brand:

No. 1 “Branding helps you create a unique impression and gives you a chance to be memorable.”
No. 2 “The brand is in sharing the values and attracting like-minded people to your products and services.”
No. 3 “Good brand motivates your team and customers”
No. 4 “Branding helps you advertise effectively &creates a connection between the product and the customer.”
No. 5 “Brand adds value to your business”

What is brand and branding? The meaning and definition.

To find out what is branding, let’s first remember the definition of a brand.

The brand is the image created in a customers’ mind. It forms when the customer experiences product or service related to a particular company and consumes its messages through the various information channels.

Accordingly, the branding is a process which involves a lot of things. Some of them are — Name Creation, Identity creation (Logo, corporate style, site, etc.), Defining Target audience, creating Brand personality, the Voice and Visual Communication rules. Once all this is established and a positioning statement is set, the most interesting part takes place. Following the brand guidelines, advertising agency creates an image of the brand in the customer’s mind via messages, images, actions and more.

Once you understand the brand process, everything looks clear. However, you can sell with advertisement only once. All next sales will be based on the quality of the product and service. Customers may not remember the promotion which forced him or her to buy the product, but he or she will always remember the experience.