There is a lot of misconception when it comes to brand and its value. Many people will mix “brand” with the term “product”. But there is a big difference, and it is vital to know what it is and how it applies to your business.
Brand and its value
By definition “a brand is a name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers”. David Ogilvy, the “Father of Advertising,” defined a brand as “the intangible sum of a product’s attributes.” Brand is much more than just a logo or company name. It is the perception customers have about your products or services. It is the feeling and emotion they attribute to your company’s proposition. It is this feeling and perception that customers have which adds value to your brand.
It is relatively easy to explain the value of a brand using the simple example of a handbag. Imagine you are in a shop and you see two handbags. At first glance, the bags look the same; both are made of the same materials, have the same colours and fixings. The shop assistant comes up to you and asks how much do you think the handbags are worth? Let’s assume that in your opinion each of the bags is worth £50. The shop assistant opens one of the handbags and revels a label saying PRADA. Do you still think this bag is worth £50, or do you think that all of a sudden the perceived value of this item went up exponentially? I thought so.
Using this very simplified example, I demonstrate the potential value of your brand and how the feeling associated with it can change the value of your product. And by the way, did you notice the difference between the brand (PRADA) and product (handbag)? A brand can be a much broader term than a product, and it can encompass many different products from a company’s portfolio.
To be clear, PRADA is the name of a company and a recognisable brand at the same time. But this is not always the case; Cheerios is a brand of cereal but they are owned by Nestle – which is the company.
How to care for your brand
Note, however, that brand can also have a negative value. If your brand starts to be associated with bad quality products, bad service or inappropriate tactics, then the value of your brand may suffer. Look at Volkswagen and the emissions scandal, or Nokia and its demise. So it is paramount that you care for your brand and ensure that it is always associated with the values you want to project to your audience.
Consistency
One of the easiest ways of caring for your brand is consistency. Next time your marketing executive comes to you and complains, saying that the logo is the wrong colour or ratio, don’t ignore them. They are taking care of your brand. Consistencies of messaging and care of presentation all speak to the quality of your brand. If you can’t ensure that your logo is displayed correctly, why should your customer believe that you will provide service or product of utmost quality? How can they be sure that you will pay attention to the required level of detail? After all, you can’t even bother to get your logo right. Do you see what I mean?
Your messaging also needs to be consistent. If you are in the business of precision and quality, then ensure that all articles, social media posts and adverts align with this. Ensure that it is highlighted not only in product or service you sell but also in your promotions. And of course, practice what you preach. If you say that you provide the best service in town then make sure that it is indeed the best. Remember the impressions you give in your communications must reflect the impressions customers get when they deal with you and your business.
Visibility
If you want your brand to be recognised, then you need to make certain that you present the brand at any possible occasion. This might be at:
- Trade shows and exhibitions,
- On your literature,
- In your digital communications
- On your product, as well as
- On your invoice, business card or letterhead
The more visible your brand is, the more recognisable it becomes. Your customers and prospects start to form an opinion and impression of your brand. In this way, you might even, at some point; achieve the status of an aspirational brand. You might say this doesn’t often happen in B2B industries, but that perception might be incorrect. There are many levels and things people aspire to, and one of these might be your product or simply cooperation with you and your company.
In today’s digitalised world is it relatively easy to make your brand visible. By utilising social media well, you can build brand recognition and reach many of your potential customers in a comparatively short amount of time.
I would urge you to make sure that your brand is visible at any given possibility.
Book value
Book value is not something that is often discussed in marketing, as the term originates from finance. It is, however, an essential part of any business that might consider a sale of its brand, products or the entire organisation. Book value of a company is the difference between that company’s total assets and total liabilities. This includes intangible assets, like trademarks and brand value (goodwill). You will find that many acquisition giants will be very interested in your company book value before they make a decision to acquire your company. Hence, it is crucial to consider your brand value in this aspect. I am sure you know of many companies who bought products or businesses and retained their original name/brand. The book value or the brand value/recognition in the market might be the main reason for that.
In summary
As you can see, the brand is much more critical to your operations than just a company name and a logo. Even though it might be challenging to establish and define your brand, it is one of the most important marketing functions and one that should never be neglected.