Branding can influence customers’ desire to purchase, donate, pay taxes, and purchase behavior. More powerful branding is more desirable to customers—For instance, Vinyl banners improve visibility of your products to customers. Through loyalty and name recognition, your brand can earn the trust of customers.
Read through to learn more about branding and the power it can give your company.
The Power of Branding: What Is Brand Power?
Brand power is an asset, just like other company valuables. However, it is intangible and acts as the face of the company in showing familiarity, products and services value, and dependability in a specific market.
Brand power involves crafting worthy products and services that stand out from competitors in a competitive market. What brands power do is shift the core attention from the products and service to the company relevance. This way, the company does less product and service marketing. Thus, customers’ desire to buy the company’s products increases.
Strategic branding will elevate a company to higher levels beyond the reach of its immediate competitors. Thus earning long time customer loyalty, even if you increase the price of your products and services.
What Makes a Power Brand?
Three essential elements make up a power brand:
The consumer market considers a company with these three essentials a high-brand company. Therefore, the market holds them in high regard.
While the market supplies generic products, powerful brands strive to make the product much more in terms of uniqueness, experience, and how they stand out from the rest. Rather than focusing on the product itself, they focus more on the experience of using it. From advertising, marketing, and packaging, to delivery, they do it uniquely to bring out an elevated value in a product. This experience is what makes powerful brands sell and succeed.
What Power Does Branding Have?
Branding has more power over the company’s name recognition and reputation. Below is what power branding can do.
Define Your Offering
The current digital era requires a business to stand out and define its products and services to prosper. A brand can define your products, and services without much marketing—the brand speaks for itself, as customers do not need much convincing.
A well-defined offering makes it easy for customers to make purchasing decisions. Therefore, the customers are more likely to buy your offerings willingly without any research or convincing.
Differentiate Your Company From Competitors
Do you know that more than 82% of investors consider brand recognition before investing in your company? Also, about 77% of consumers buy products and services because of their brand name. These statistics tell you what brand power can do for you in a competitive market.
Businesses go through different phases, And more often, you’ll go through hard times. However, if you have a powerful brand, you’ll navigate these hard times without many problems—you’ll still sell.
Increase Brand Equity
Every business aims to grow. You’re sure of increased productivity, sales, and brand equity with an established brand. You can sell more and make more profits with a strong customer base. Branding will help customers prefer your products and services over competitors; thus, they will purchase more from your company, translating to increased brand equity.
Maintain a Dedicated Following
The long-term success of any business depends on customer loyalty and following. A company with a large customer base is more likely to prosper and grow, thus developing to greater levels. More important is the customer’s loyalty.
A dedicated following is important to products, just like it is important to celebrities. The right brand power will help you create engaging services and products that are well-received in the market. The brand will help you consistently draw customers closer to your products and services, thus keeping them loyal.
To improve your brand, you must add new features to your services or products. Powerful brands try to incorporate new features into their products and services to improve user experience. Through this process, they can maintain a large loyal customer following over the long term.
How to Value a Brand
A brand is an intangible asset to a company; thus, it is necessary to value it. Below are the approaches you can implement to value a brand.
Product to Product
This approach takes into account the company’s pricing power. You’re supposed to determine how much you can charge for a premium above your competitors’ similar products. You multiply the premium by the units sold to get the brand value.
Stripping Out Assets
This approach involves the determination of brand equity in the company. To do so, you subtract the company’s tangible and intangible assets from the enterprise value. The amount you’re left with represents your brand equity.
The Intensive Approach
This approach is a more insightful way to determine brand power. It is broad, takes more time, and may not be practical to individual investors. It combines the above approaches with proprietary measures to determine brand power.