Branding Benefits
To say that you need a brand to be successful is inaccurate. The laundry mat or embroidery shop up the street do not have a brand and they are doing very well. Whether you need a brand is dependent on the goal of your business. For example, if you are a service based business, or simply have a business that is in demand, then having a strong brand is not needed considering customers will seek you out and already know what they want, how they want it, and at what speed and price they want it. Think, where does the local school purchase its school buses? Have you ever seen a school bus manufacturer advertise their brand on television or at local events?
You do, however, need to have a brand if you have significant competition and if you have a niche product which requires educating customers. The goal of a brand is to provide customers with reasons to purchase your product or service over the competition. Without a solid brand, it makes marketing and customer acquisition expensive and time consuming. A brand gives your business its unique character – its look and feel, voice, and identity. Without its image, Nike is just one more shoemaker, and Macy’s is simply another retailer. A good brand should have a foundation based on value and customer engagement. The brand should represent the mission of your business and hold relevancy to your customers.
Perceived Value. Your brand should reflect the goal of your business by highlighting your strengths and encouraging a positive perception. Perceived value influences the amount of money your customer believes your product or service is worth. Whether marketing a service or a product, the results are similar in that both rely on the customer’s perception of your business’s expertise, quality, and reputation.
If your business and your competitors sell the exact same item, built the same way, and from the same materials, it is likely that the business with the better brand value reputation will sell the item at a higher rate because of the perceived value by the customer. If your customer perceives the value of your brand as high, they will likely make assumptions that the products you promote are of high-quality as well.
