How does a company that has a ‘solid’ brand fare against a similar company of a less well known brand when it comes to the value of the business?

By Nigel Harse & Rod Hore

Positive brand recognition is worth its weight in gold. If creating and retaining that recognition is achieved cost effectively, you would expect to pay a premium for the company with the greater brand recognition. You would also expect to see the value of that brand recognition being reflected in the quality of the profits, operations and service delivery.

Brand recognition is important and of great value to all stakeholders. A company’s brand is often used as a factor in evaluating a company – public recognition of brand names and attitudes toward brands can be researched and measured.

Advertising copywriter and ad agency founder, David Ogilvy’s, definition of a brand is:

“The intangible sum of a product’s attributes: its name, packaging, and price, its history, its reputation, and the way it’s advertised”.

Our “relationships” with brands aren’t nearly as deep or meaningful as human relationships, but they do share some of the same characteristics. The extent to which you can create a sense of belonging, friendship and dependability is the extent to which you have a powerful brand asset.
Here’s why the effort to brand your company should pay off.

A brand serves as the strongbox for your reputation and good will. Branding is the pathway to creating a strong, distinctive and durable perception in the minds of staff, clients and candidates alike. A brand is a persistent and unique business identity entangled with associations of personality, quality, value, service, integrity and much, much more.

Successful brand recognition should deliver a variety of beneficial outcomes to the business which includes:

An image of experience and reliability – A strong brand creates an image of an established business. A branded business is more likely to be seen as experienced and will generally be regarded as more reliable and trustworthy than an unbranded business.

Premium image and service goes with premium pricing – Branding can lift what you do above the realm of a commodity transaction, so that instead of dealing with price-shoppers you have clients who will expect to pay more for your services. They will also comply with your way of doing things and rarely quibble about your terms of business.

Memorability – This may come from the business using and persisting with an unusual logo or colour combination (FedEx’s purple and orange), distinctive behaviours (McDonalds – do you want fries with that?) Or even with a style of clothing (Virgin Airlines – red uniforms). That sounds simple but is rarely followed. You must develop your own brand identifiers and secure them to your company name in the minds of your entire audience. It’s hard for customers to go back to “that whatsitsname store” or to refer others to “the brickie from the Yellow Pages.”

Loyalty – When people have a great experience with a memorable brand, they’re more likely to use that service again. People who bond with a brand identity are not only more likely to reuse the service, try out other related services and recommend the brand to others but they will also be more likely to resist the lure of a competitor’s price. True brand integrity and identity helps to create and secure loyalty.

Familiarity – Branding has a big effect on potential staff, candidates and clients too. Psychologists have demonstrated that familiarity often induces liking. Consequently, people who have never used your services but have encountered your company identity enough times may recommend your services, even though they have no personal knowledge of your services. It’s true, it does happen!

Attractiveness – If you are looking to attract anyone to your business – you need to be “attractive”. Your brand needs to project an image that enhances your chances of being considered. It is built with consistency of application, constant communication and positive association. It is memorable, front of mind and positive.

A brand is an investment.

Curtsy: http://sites.thomsonreuters.com.au/recruitment-extra/