Companies are nothing without branding, but what makes this marketing identifier so crucial to its financial success? When you think of your favorite restaurant chain, clothing store, or social media app, there are probably multiple aspects that come to your mind. It could be the custom jingle that plays during ads and commercials, or the signature logo associated with the organization’s name.
The recognizable features that you associate with famous companies are part of their brand, which can be defined as a business and marketing concept used to help customers identify the particular company or product. The effectiveness of a company’s brand is vital to its success due to brand value, a fundamental measurement of financial worth that can directly impact a company’s future.
So, what exactly is brand value? A simple definition would be the monetary worth of your company brand if you were to sell it. The brand value determines the payout you would receive if the company were to be sold, so establishing an attractive brand is imperative for each organization’s survival. But why is it necessary for every business?
Brand Values Make Companies Recognizable
Branding is a fundamental quality responsible for the recognition of a company. You are more likely to remember a specific meal subscription service if its advertisements are colorful, its slogan is catchy, and its overall style stands out as unique and exciting.
Each company has its peculiarity that its brand values can and should reflect. Since businesses rely on revenue from sales, it’s evident that perfecting the image which helps customers identify their product is crucial. For example, the slogan for a particular athletic shoe brand is a common enough phrase to remind people of its products and, more importantly, help them recognize that those products are associated with that company.
To be noticed, companies have to stand out. This recognition manifests in various elements and aspects. Not only do unique services and products make brands exceptional and memorable, but a whole lot of other factors can also secure that uniqueness. Take colors, for instance. A business using a completely different color spectrum–say, very peri color code–than its competitors–e.g., red or yellow color code–will grab attention and make the brand unforgettable in a customer’s eye.
Trust is Established, Resulting in Loyal Customers
A company that doesn’t put effort into building an attractive brand should not expect consumers to assume that it would put effort into serving their needs. The amount of consideration an organization puts into creating a respectable image and reputation reflects directly on the service it will provide to its customers.
Picture the website of a prominent, successful retailer; its marketing team has recruited excellent web designers and copywriters to hone its image. Now imagine a separate company’s website- except without any apparent effort to instill trust in consumers by putting any thought into how the website is perceived. Which company would seem more trustworthy?
Marketing Can Be Improved By A Great Brand
Advertising is another indispensable part of a company’s success. It is also linked to the company’s brand value in that it increases the worth of the business through the management of its image. Marketing is defined as the action or business of promoting and selling products or services, with every advertisement having to match the brand’s style. Otherwise, it won’t reach the selected audience. Brand values can help advertisers create the most effective strategy to reflect their branding and match the company’s energy.
Many consumers do not consider the emphasis that companies must place on their brands to boost the monetary value and ensure investment prosperity. Most of what comes to mind as reasons for the success of various companies is directly connected to their brand values. Businesses are undoubtedly better off when they are brand-focused, as it is the key to guaranteeing financial security for the foreseeable future.