A brand is that name that people relate to when a product is mentioned. For instance, talk about smart phones and someone thinks Apple, mention computers and someone thinks Dell or HP, mention soft drinks and someone thinks Coca Cola, say electronics and someone thinks you are talking about Sony. So What is your Brand worth?
Brand worth is the value attached to a brand. Some brands actually have monetary value; an astonishing value for ‘just a name’. It is a mark of the extent of their market dominance, which is key to any existing business with goals to achieve and objectives to realise. With the rising level of competition across all niches of production, marketing is taking a whole different turn. Competition based on who produces what and of which quality has been replaced by how well you present your product to your customers, both existing and prospective ones. This calls for building your own uniqueness and popularity, despite the fact that you’re dealing in products of the same nature and quality other counterparts bring to the market.
Understanding Brand Value: What is you brand worth?
Aside from monetary value, Brand Value means a lot to any business. Let’s focus on the significance of a brand;
It determines your future success
The possibility of growth of your business in future lies in how well your customers will have known you. For any business to propagate, it needs to have a balance between customer retention and earning new ones. A well-established brand can earn you both simultaneously. You have a substantial number of loyal customers who top your marketing efforts up with endorsements to their friends.
It earns you loyalty
If the quality of your products speaks as loudly as your brand, it is more likely that a first-time consumer of your product will be satisfied enough to come back for it and settle for it. Buyers tend to stop the search when they use popular products and are satisfied with them. If you have worked hard enough to earn a name out there, you are more likely to have customers who come and never leave.
It earns you customer preference
Supposing a shopper decides to try something new and when they walk into their favourite shopping point, they find several similar products on the shelf with relatively the same price. Of course they won’t have to dwell in the dilemma for long. They will pick the most popular one amongst them, the one they have heard of the most. If that is your product, then you are not lucky there; your brand will have sold you! You earn customer preference by letting them know you even if they aren’t using your product yet.
It gives you market control
When you are a chief brand in your area of production, you have control over market factors such as prices. You can regulate the price without having to worry about loss of customers, since they believe you sell everything at its value. It also enables you to advertise less, hence you spend less while promoting your products.
It earns your business a favourable competitive environment
When it comes to competition, a recognised brand has two advantages over other businesses. First, it dominates the market, hence it sells more than its direct competitors. Second, its market size is not affected by entry-level participants. Every new venture in your niche means a loss of customers. Your market size, though, may not be significantly depleted by the loss of such customers as the case is with other ‘’common” brands. Basically, the loss of 100 customers may not have the same weight on all businesses. While it may be insignificant for you, it may mean half market depleted for another business.
A brand is the primary marketing tool for any business. At the current level of technology, producing quality is not a market issue any more. Establishing a recognised brand is, and it should be enlisted in the primary objectives for you as an entrepreneur. As you market your products, market your name twice as much.
At Red Lounge Agency we are passionate about create inspiring branding for the sake of empowering your brands as well as producing the perfect emotive visual stamp for your business. Contact us for more information.
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