Have you ever wondered why Coca-Cola and Pepsi Cola spend around $4 billion on marketing each year?
Think about it. These two giants are famous everywhere; people around the globe from all walks of life drink their products.
However, they still spend billions every year to get their name out there.
Because they know the importance of having a strong brand, and in this article, we’re going to talk just about that.
Brands Can Stand the Test of Time; Products Cannot
If you’ve been keen about how products come and go, you should know by now that products, regardless of how great they are, don’t last forever. However, brands do — to some extent.
I know it’s quite hard to believe, but can you recall Samsung’s first phone? How about Apple’s?
Yeah, it’s quite hard to remember, but what we do remember is that these brands make outstanding phones. They didn’t market just their products but who they are as a company.
Branding is about the service that comes along with the product, the support, the convenience; everything around the product or service is branding.
To put that into context on the importance of having a strong brand — we buy brands, not products.
We know that whenever Samsung or Apple launches a new phone, it’s going to be as good or better than the previous ones. Not just because of the phone per set but because of the stuff that comes with it. Heck, it even has an impact on our social status. Brands are that powerful.
Apart from people buying your products, branding has other benefits that most entrepreneurs don’t know. Here are five of them:
Branding Increases Company Value
Let us get back to why Coca-Cola and Pepsi spend billions despite already being successful. These industry leaders understand that having an influential brand name is almost a guarantee that your business will have an exceptional future.
It attracts investors, increases sales, and gives this perception that your company wants to build a genuine connection with your customers.
Granted that your marketing expenditures won’t yield anything tangible, it does, however, increase your company value through how people see your brand.
Look, when people consider your brand as reliable and top-notch, you will have more control over product pricing. In a nutshell, it means that even if you only need $10 to manufacture your premium wallet, you can sell it for $1,000, and people will still find it justifiable because of how they perceive your brand.
Branding Makes Your Business Recognizable
This benefit is ridiculously conclusive. However, many entrepreneurs still ignore the power of being easily recognized.
I don’t blame them.
If you think that recognizability only applies to your logo, brand name, and color scheme used for your brand, then you’re going to ignore this benefit too.
Branding isn’t superficial. You have to consider that customer support is part of branding as well. People remember how brands treat them before knowing the brands’ aesthetics.
Take Apple, for example. They designed their stores to give you this professional, expensive atmosphere. Their staff knows everything about the products they sell and treat their customers like all of them are earning a six-digit paycheck each year. That is one of the biggest reasons why you associate all of their products as luxury items, even when they do have budget units available.
So the true essence of being a recognizable brand isn’t just about the physical aspect but the undertone it has.
Branding Allows You to Market New Products Faster and Make Customers Loyal
One of the best things about marketing your brand is that you collectively promote all of your products even when they’re non-existent.
If Coca-Cola suddenly decides to drop a new drink under a new sub-brand, people will buy it. Even if they haven’t promoted this new product, people, out of curiosity, will buy it.
The answer is simple: trust.
As you build your brand, provide exceptional service, treat your customers like family – people will trust your brand. This trust is so powerful that as long as the product you launch states that it’s under your brand or even a subsidiary of it, people will feel at ease. They’ll go, “This grape juice must be good. After all, it’s part of The Coca-Cola Company.”
Spending time and money on promoting your brand instead of a particular product is key to putting your business to new heights. It may seem like you’re not gaining anything at first, but it’s going to yield incredible results in the long run. If you’re interested in improving your branding without all the technical stuff involved, contact us now!