What is the importance of building a brand?
Brand Equity is the difference between what a branded item can charge over what an unbranded item can charge.
A product can be manufactured. A Brand is what the customer buys.
A product can be duplicated. A Brand is unique.
Think of it this way, when a person buys a brand, they aren't buying the product (which can be duplicated) they are buying the guarantee of quality that the brand provides.
A brand becomes successful when it owns a catagorie, or mind share.
Mind Share is brand awareness or popularity with the customers. Examples: Google, Band Aid, Coke, Xerox, FedEx. All posses such strong mind share that they have become verbs. People Google instead of do an Internet search. They put a Band Aid on an open wound (instead of adhesive bandage) and they Xerox things instead of making copies. All are strong brands.
To build a brand you have to create trust. Not just trust that you are some highley moral or ethical business (which does help), but trust that your product is going to be the same in quality and service every time the customer buys it. A "brand name" keeps them from guessing whether it is going to work or not.
Can a person be a brand. Absolutely.
Donal Trump is a brand. He has become synonymous with wealth and a high standard of living that he is now able to sell his name as a brand. Donald doesn't write all those books with his name on it, he loans his name to the author, who is willing to pay because he knows people will buy the book based on the Don's name. He doesn't own Trump Towers. He gets $5 million per each letter of his name on the building. Wouldn't that be nice?
My favorite brand is Dave Ramsey. He built a business off of practical advice. He has a radio and t.v. show, book deal, licenses his educational material and does speaking tours. But one profit center most people do not think of when they think of Dave is his Endorsed Local Providers (ELP's). He gets a referral fee from each client he sends his ELP's, which are all over the country and in many different industries. And why is he able to charge a referral fee? And why do people use his ELP's? Because people trust him, and he is his brand.
So what are some steps you can take to build a brand?
1. Create Mind Share - through a name or slogan
2. Create a Logo
3. Develop and maintain a good reputation - build trust.
4. Create a brand personality
5. Communicate brand personality to target market.
This isn't an all inclusive list, but it is a good place to start. The most important is brand awareness and trust.
A good book on the subject is Al Ries's 21 Imutable Laws of Branding
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