- Jan 12, 2014
- 1 Comment
Why is brand important? Simple. The brand is a business assets, which like all business assets needs to be properly managed and looked after.
The asset value of brands is widely recognised because they are proven to generate high quality earnings that directly affect the overall performance of the business and thus influence share value. That is why at Interrelated we often refer to brands that keep their promise as being strong performers. Because they naturally encourage loyal buyers who will return at regular intervals.
It is fair to say that brands, with their ability to secure future income, can be classified as productive assets in exactly the same way as any other traditional assets of a business (e.g., people, plant, equipment, cash, investment, and so on). Therefore the benefit of a strong performing brand (to its owner) is that forecasting cash flows becomes easier with repeat customers, and this means the brand owner can plan and manage the development of the business with greater confidence.
In summary the brand is a business assets which, like all business assets, needs to be properly managed and looked after to ensure it continues to return financial added value to the business. This tends to be realised in the following ways;
A raison d’être and differentiation from the competition.
Positioning a focused message in the hearts and minds of target audiences.
Becoming employer of choice, thus attracting the best team and ultimately the desired customers.
Inspiring a consistent approach to the marketing efforts and thus reinforcing an image of credibility.
Creating a culture that drives emotional attachment and strong loyalty.