Why Branding is Important

Why Branding is Important

Why Branding is Important

Very often we, without even realizing it, want someone to control our preferences in everyday matters. People have less time and energy to choose from. Therefore, well-known brands are reference points for us in a growing number of goods and services and an endless stream of advertising.
A wide range of loyal customers is the foundation. Most companies price competition leads to a dead end. In an effort to beat the competition at the expense of lower prices, manufacturers “corrupt” the consumer. That is why this form of competition, basically, becomes a strategy for low price segments. Despite this, much of the loyalty program also uses the price peg of customers, most often based on the accumulation of discounts. Their disadvantage is the very principle of loyalty based on self-interest. After all, with a better offer of competitors, a company can lose such “loyal” buyers in a short time. The basis of any loyalty should be branding – the emotional binding of customers.

Branding of goods will bring the main return as consumers become aware of the ideas that were laid in the trademark. This can be a high quality product, respectability, safety. Consumers pay for compliance with their expectations and for the emotions that the acquisition gives them. It is known that for products and services that are united by the concept of “luxury”, it is the additional emotional component of the brand that is important. Often it prevails over functionality.
For example, a Ferrari car and others like it are not the most suitable means of transportation for traveling along the roads of Russia, however, they enjoy steady popularity. The presence of a queue for Bentley cars does not repel motorists at all, but, on the contrary, is an integral part of the manufacturer’s marketing policy, which forms, apart from price, the brand image “not for everyone”.
This means that by correctly identifying its potential target audience, assessing its preferences and inventing a simple, but emphasizing individuality, an affordable offer, a company can receive at least 80% of the profits only for the brand. In addition, the company, at the expense of the brand, if not forever, then for a long time will “tie” consumers to itself, and it will not have to spend huge amounts of money on aggressive customer search and outreach advertising. But it is important to understand that investing in a brand is an investment that requires considerable time to get a return.
The aggregate value of the largest global brands is fundamental to the global economy – brands are now one of the most powerful tools in the western world and make up a third of all global wealth. The brand, in our opinion, is “the most important single corporate asset”. Some of the largest companies behind the brands are more expensive than some countries.
The total profit is statistically the annual income of the five largest business corporations and more than double the aggregate GDP of the poorest countries in the world. It is therefore not surprising that brands have the influence and power to change society.
The brand depends on how the company will behave. Its creation or decline can affect government policies, social and industrial trends, the global economy, as well as interested parties that are interested in the brand (including investors, employees, customers, and the press).
Branding is important because of its connection and influence on the world in which we live. Brands affect people’s lives simply because they are part of our daily choices and decisions. In today’s world, there is widespread competition for almost all products and services, including charitable organizations and non-profit sectors, and it seems that little has been left untouched by branding.
The aggregate value of the largest global brands is fundamental to the global economy – branding now is one of the most powerful tools in the western world and make up a third of all global wealth. The brand, in our opinion, is “the most important single corporate asset”. Some of the largest companies behind the brands are more expensive than some countries. The total profit is statistically the annual income of the five largest business corporations and more than double the aggregate GDP of the poorest countries in the world. It is therefore not surprising that brands have the influence and power to change society.
From brand depends on how the company will behave. Its creation or decline can affect government policies, social and industrial trends, the global economy, as well as interested parties that are interested in the brand (including investors, employees, customers, and the press).
The sheer strength and wealth of large multinational brands and their comparable power with governments convinced many that the companies behind the brands play a role in society. Brands will not disappear but are likely to become more ubiquitous in different industries and as a global presence. Companies use branding as a way to increase wealth, maintain their business and enhance their reputation. They also want to improve the living conditions and incomes of individuals in order to increase their purchasing power.
A brand makes a company accountable to its audience. Any brand analysis forces a company or institution to look inside and review ways to work. He must analyze his impact on how he delivers his service and how he is perceived to work and differentiate himself. It should not question its value and convince that it behaves in accordance with these values. If the Brand or the owner has not paid for its offer on the market, it will lose integrity and reliability – the necessary properties for a good brand. Internal reflection can lead to improved branding positioning.
People love brands, regardless of whether they support them or not. While some brands inevitably carry financial status that can make them stronger, they are ultimately accountable to their audience. It is this audience that has the power to change and influence the direction of the Brand; determine what is important for their future and, as a result, for the future of the company.

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