A brand is an identity of an organization, service or product. The brand identity must be based on a unique idea. The unique idea must be distinctive of the competition and relevant to the worldview of the target market. It must also be authentic, which means that it is not enough to simply make empty statements.
Competing in price can increase sales in the short term, but it is a dangerous strategy for anyone who takes the construction of a profitable and sustainable business seriously. Brands offer companies the means to free themselves from constant price competition, increase the value of their services, reduce their marketing costs and develop long-term customer loyalty.
Brands increase the value of products and services by differentiating them from the competition, creating positive mental associations and forming emotional relationships with the client. Building a successful and sustainable brand requires careful planning and consistency. You need a strategy the brand strategy is the plan that defines the ideas and stories behind the brands, structure, and relationship of the brands within the organization and the basic elements of identification. These may include elements such as company and product names, the tone of voice, logos, color schemes, etc. It also provides the framework to implement the brands in all the operations of the organization and to use them to work efficiently towards the objectives of the company. It is not just a cosmetic exercise; it is a key element of the business strategy.
Few organizations manage to obtain all the benefits of word of mouth and, what is worse, for many organizations it spreads more negative stories than positive ones. To compensate for the lack of positive publicity, organizations spend vast sums of money on ineffective marketing exercises. Without an effective brand strategy, these exercises are often not focused, inconsistent and not authentic. As a result, they seldom pay for themselves, let alone make a profit.
The beauty of the brand is that, by telling authentic and engaging stories to its customers, it not only makes its products more attractive and valuable, but it gives its customers something to talk about. Human beings, of course, love telling and sharing stories. By giving them good stories to tell, you gain access to what is by far the cheapest and most effective form of promotion is word of mouth.
In a broader sense, the brand is the antithesis of marketing. The development of the brand is the most effective way to generate a positive word of mouth, which makes it cheaper and more effective than traditional marketing techniques.
Marketing is part of the brand development process as it provides a means to disseminate the brand’s history. This explains why there is so much confusion regarding the difference between them. Marketing used to be about the promotion of products and services. Successful marketing now focuses on brand promotion.
The most successful organizations combine an idea of trust and a vision of the future with a solid and organized strategy. Then they use carefully targeted marketing to help tell their story. The success of its brands means that as time passes, the need for formal marketing is reduced and the effectiveness of any existing marketing increases, paving the way for greater profits and organizational growth.
So, brands are a key element for the creation of profitable businesses with long-term sustainability. When they execute well, they increase sales, add value to products and services and reduce marketing costs. They also give focus to a business, increase the morale of the staff and increase the value of the shares.
The article was shared on behalf of Morar HPI, a research agency. The company’s brand team aligns commercial objectives, target audiences and sector dynamics to create new brands and focus on existing ones. Their experiences span core brand strategy to brand communications creation. Visit https://www.morarhpi.com/ for more information and services.