Four Benefits of a Strong Brand to Business Organizations
A strong brand definitely a crucial asset for an organization. In this article, we will learn more about 4 benefits of a strong brand to business organizations.
Build Customer Loyalty
According to Kotler & Keller (2015), a brand is a promise between the firm and the consumer. In return for customer loyalty, the firm promises to reliably deliver a predictably positive experience and set of desirable benefits with its products and services. This means by having a strong brand, the company can retain its customers easier. Customers are usually attracted by the values that the brand provides. As soon as they get continuous positive emotional experience from a brand, they will feel attached to the brand. They can come back to buy the same product, and even they might promote the product to other prospective customers. This action might lead to the next benefit, increase customer recognition/awareness.
Increase Customer Recognition/Awareness
The loyal customers of a strong brand are great assets for the company. They might help the company to promote their product more by promoting the product to their relatives, families, friends, or other prospective customers. Social media allows them to reach wider future prospective customers outside their network. A strong brand usually has a distinguished brand’s trademark color, packaging, slogan, logo, and other physical attributes that appealing to the customers. The customers will recognize the brand instantaneously just by seeing the logo, packaging, or other physical attributes of the product.
Builds Financial Value
The brand also performs valuable functions for firms, it simplifies product handling by helping organize inventory and accounting records. A brand also offers the firm legal protection for unique features or aspects of the product. (Kotler & Keller, 2015). By protecting the brand intellectual property rights, the company can invest in the brand and treat it as a financial asset.
Competitive Advantage
A strong brand can help differentiate the product in a crowded marketplace. Even though the competitors of the company might copy the product design, they can’t match the impression created by a strong brand in the minds of its loyal customers (White, 2020). This means, a strong brand can be a powerful tool to secure a competitive advantage.
References:
Kotler, P., & Keller, K. L. (2015). Marketing management. Pearson Higher Ed.
White, D. (2020, March 11). 32 benefits of branding: Why you must have a strong brand? Techfunnel. https://www.techfunnel.com/martech/benefits-of-branding/
Dan, & Jason. (2020, April 19). The 4 challenges that affect a brand’s global reach. Global Marketing Professor. https://globalmarketingprofessor.com/the-4-challenges-that-affect-a-brands-global-reach/
Note:
This article is written based on University of The People Marketing Management (BUS 5112) written assignment by Fristy Tania in September 2021
