Apple, Google, Disney and BMW regularly have brand valuations over $100 billion. Facebook’s brand value has been climbing steadily and recently passed the $20 billion dollar mark. Amazon, a brand that was non-existent just more than a decade ago is now worth more than $40 billion.
Remember, these numbers are not the value of the companies – these numbers are the value of the brands.
Awareness – Good brand strategy makes it easier for your brand to be known and to be memorable. Strong brand awareness shortens the sales process and allows you to dedicate your marketing expenditures to strategic activities.
Consideration – When people know and are comfortable with your brand, they are more likely to consider purchasing your products or services.
Intent – While people consider many brands, they only intend to purchase a select few. Strong brand thinking drives consumers from awareness through consideration and finally intent to buy.
Every smart business person knows that brands add real value to large companies, but some seem to think that small and mid-sized brands do not get the same benefit. Here’s a true story, but the company’s name has been changed. A business person named “Jeff” built a large regional painting and construction business, “Renovations by Jeff.” In the beginning, he did most of the consultation and most of the work. As the business grew, he hired sales people. When they met potential customers, the customers would always ask, “Are you Jeff?” Even when prospects liked the proposal, they would say, “will Jeff be doing are work?” When Jeff went to retire, he had a difficult time selling the business, because the value was in his name which could not be easily transferred to a new owner.
A second true story: A young, innovative company developed a remarkable technology. Unfortunately they gave both the company and the technology the same name. As the business grew, both the company and the technology gained recognition in the marketplace. An established company eventually offered to buy the technology. The offer was amazing, but the buyer wanted the technology and the name. And…the buyer wanted the selling company to change its name to something different. The startup was put in a troubling position: Sell the technology and perhaps kill the company, or keep the company name, but sell the technology at a discount.
Both Jeff and the tech company had brand problems that got out of control.
Contact Boom Creative for all of your brand strategy needs.