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Companies spend millions of dollars to generate awareness for their products and market their brands — and what they reap from these expenditures can make or break them.
Brand management is more than the products or services that you sell. It’s what you stand for — remember, your company logo, products, website, or marketing campaigns may change with time, but your brand value must always remain the same.
Consumers are constantly looking to forge emotional connections with brands, hence, it’s important for companies to offer consumers something that they can relate to.
This goes beyond an attractive website or a beautiful logo. Although the external elements of your brand like your name and your voice can help to create brand awareness, it’s your brand value that will deliver real engagement and help you create powerful bonds with your target audience.
In this article, we will be discussing brand value in depth. We will also be sharing what 8 successful brand managers had to say about the importance of brand value.
What is Brand Value?
“ Brand value is the ‘perceived value’, and how often people will choose one brand over alternatives. Brand value is important because when people perceive that a brand is distinct and aligns with their personal values, it’s a really powerful competitive advantage.”
So, brand value refers to the worth of a brand to the consumer. It’s a subject of much debate in the world of marketing, and there are two schools of thought about its definition:
Financial worth: This is the monetary value assigned to a brand.
Perceived worth: The worth that consumers perceive your brand.
Let’s have a look at both.
Financial worth denotes the market value of a brand. It can be calculated based on current and future sales, as well as the potential for future growth. For example, the financial brand value of Coca-Cola is around $78 billion.
On the other hand, perceived worth denotes how important consumers feel your brand is to their life, social status, or job. For example, both Coca-Cola and Pepsi are both soda companies, but many soda drinkers perceive Coca-Cola to have a higher brand value than Pepsi.
When consumers find value in a brand, they can develop loyalty towards it — and this can discourage other companies from joining the market and protect the market share of an existing company. For example, a diaper brand like Pampers is well-known in the market. Other companies may opt for other product lines outside of diapers to avoid competing with well-known companies, which may be detrimental to their bottom line.
If the term brand value makes you think of dollars and cents, you’re partly correct.
When customers know and love your brand, they are willing to pay more. This is known as brand equity. In other words, brand equity is the price above a product’s market value that consumers are willing to pay.
Brand equity and brand value are linked, but strictly speaking, they are not the same thing.
Why Is Brand Value Important?
Let’s imagine you’re negotiating the acquisition or merger of a major brand.
If you were taking over Coca-Cola, you would be buying a lot more than the recipe for a caffeinated, sugary drink. You would be benefiting from the name, logo, and other brand elements that consumers instantly recognize and trust.
Brand value is a fairly modern phenomenon. In the past, consumers relied on product quality and value to make purchasing decisions. However, the advertising boom of the 1960s turned certain businesses into household brand names.
With the emergence of modern marketing, companies could choose to associate themselves with positive characteristics such as style, elegance, trustworthiness, security, and innovation. This is essentially what it means to build a brand — a key element of any marketing strategy today.
Pretty much everyone agrees a strong brand is valuable — the tricky part is putting a number on that value.
How Is Brand Value Calculated?
Your brand is a valuable asset. With other assets in life, such as your house or your car, you can easily do some research and figure out the going rate.
Calculating the value of a brand — also called brand valuation — however, is more complex.
We consider a brand’s value to be a measurable concept encompassing the total net worth of a brand.
Key factors include:
- Brand Recognition: have consumers heard of your brand?
- Brand Image: how do consumers perceive your brand?
- Brand Understanding: do consumers truly understand what is it your brand offers?
- Brand Consideration: do consumers consider purchasing from your brand over the competition?
- Brand Loyalty: do customers stick with you over the competition?
One simple way to gain insight into your brand value is to send surveys to your customers, as direct customer feedback will show you how people perceive your brand.
With brand monitoring software, you can accurately measure your brand awareness and track levels of recognition, popularity, and customer loyalty among specific relevant audience segmentations. This helps you make better-informed decisions related to your brand.
If you are spending your time and budget on brand marketing campaigns, it’s vital to measure the impact of what you are doing.
After all, just like an IT manager or accountant can easily point to cost reductions in technology systems or show increased profitability, modern brand managers need to be able to show how their brand has increased or decreased in value over time.
What Makes A Brand Valuable?
Valuable brands have a few things in common. A brand is considered valuable if it’s:
- Highly recognizable: this means people know who they are
- Positively perceived: consumers have a good view of them
- Popular: people actually buy and use the products or services
- Have a loyal following: customers are ambassadors of the brand
According to Glen Bhimani, the CEO and founder of BPS Security, having a valuable brand is essential to the growth and prosperity of any growing company. He explains:
“Brand value is extremely important because it dictates how much you can charge for your service or product. People expect certain prices from different kinds of brands, and the more widely known your up-scale brand is, the more you are able to charge.
“If you haven’t built up your brand value yet, start by getting some marketing expert consultation on your current brand. The more of a cohesive brand you have, the greater your brand value so it’s important to have a cohesive brand across all your marketing assets.”
As we can see, brand value not only allows you to reel in new customers but also impacts how much you can charge for your products and services. The higher the perceived value of your brand — both its tangible and intangible assets — the more likely it is you’ll be able to charge higher price points.
6 Tips to Help Build Brand Value in 2022
According to Walter Landor of Landor & Fitch, “products are manufactured in the factory, but brands are created in the mind.”
It may be easy to calculate the physical value of your products, but it’s consumer perception that will determine the value your brand has in the marketplace. This means that it’s important for you to build value into your brand and communicate that value to your customers.
The following are some of the ways through which you can build or achieve brand value:
“
If You Want To Succeed, Never Underestimate Your Competition
1. Improve the Consumer Experience
Amazon is the leading brand in the world, with a value of $415.8 billion. But, how did it get there?It worked on its user experience.
Amazon is well-known for providing a great brand experience. Consumers love the speed and convenience of buying books, gadgets, and other items on its site.
The point is, make it easy for customers to buy from you. If customers are not impressed when interacting with your brand or if the process of making purchases is too complex to follow, then there will be no reason for them to remain loyal to your brand.
So, you should take a look at your platforms and processes. Is it easy to use and navigate through your website? Is it mobile responsive? Is your customer service team effective?
If you work on the above areas and others, you will improve your user experience and build your brand value.
2. Understand your Target Audience
If you need to build a strong brand, you MUST understand your customers and appeal to their needs. This means that you should create original and creative ads that go beyond products and features and tap into customer emotions.
Apple, one of the top brands in the world, discovered this trick and employed it in its marketing campaigns. When the brand launched the iPod, it used the tagline, “1000 songs in your pocket”. It didn’t focus on product features or technical specs.
Apple has shown that it truly understands its customers. The brand designs sleek and easy-to-use products that have a value far beyond their technical quality.
Understanding who your customers are and meeting their needs is ideal for building brand value. This will give you ideas about what you should say to them.
Building brand value also requires finding a group of people who actually care about what you are saying. You should target people who will find your brand and products valuable, instead of casting a wide net. So, you must know the channel where your target audience is and customize your brand message for that channel.
3. Be Unique
You must put in effort for your brand to stand out, which may mean breaking free from your comfort zone.
Be willing to challenge the current standards of the market and go where your competitors can’t — or won’t. Having a unique brand identity will help you to distinguish yourself from your competitors. But how can you remain unique?
The answer is simple. By sticking to the core values of your company.
4. Work from the Inside Out
To build your brand value, you must employ a technique called “remarkable marketing”. It’s the art of building things that are worth noticing into your product or service.
For example, nobody will be amazed by a brown cow, as the world is full of brown cows. So, how can you stand out from the herd? By being the purple cow.
To build a strong brand value, focus on superlatives. The happiest employees, the most innovative, the best customer service, etc.
5. Keep your Tone of Voice (ToV) Consistent
Brand consistency is very key in building brand value. The more often you present the personality of your organization to prospective buyers, the more likely it is they’ll remember you.
If you use the same tone, language, and syntax in your output, you’ll do away with confusion and allow your audience to establish easy associations with your content.
Create a formal set of ToV guidelines to guide the creation of future content and ensure that your blogs, emails, and social posts all speak with one voice.
6. Use High Standards for Design
Design is essential for visual communication. How you use shapes, colors, and fonts or lay out elements on your website, product package, or email campaign will determine whether your brand is perceived as valuable or not.
The way you package your brand will determine how it is perceived and interpreted. Your company may be small but a “strong visual branding system” can make it seem more powerful or create the impression of a large company’s strength on consumers.
On the other hand, if you use a bad design, you will destroy your brand value.
to be continued
Article Source: https://latana.com/
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