The six financial advantages for brand identity

For at least the last decade, the theme of "branding" marketing dominated discussions to the point that the concept has many definitions and explanations. This distribution has not necessarily increased the credibility of the branding as a marketing function, but instead seems to confusion about the actual value, the branding bietet-- have created, if the value can also be measured. Most business people would probably agree that it is branding important, and develop an "identity" for their organization part which should long-term planning. Organisations in today's economy are however under enormous pressure from interest groups to focus on current financial results.

For this reason, it was the challenge of branding to measure the financial benefits to an organization of both short- and long-term perspectives. How to wear the branding for the financial health of an organization? And if it does not contribute, is branding hold any value at all or is it only a good theme for the latest marketing guru book?
This article will provide you with insight into six financial benefits, which contributes a strong brand identity to an organization. This article also explains, such as brand differentiation and brand valuable tools for increasing a company's operating margin can be relevant.
What is brand identity at all?
Before its financial advantages addressing, we offer this short definition of the brand identity. Represents a company's brand identity, such as the company wants to be perceived on the market, what the company stands for, and at the most important is, implies a promise to the customer.

The value of a strong brand

Based on the research in his book, building strong brands, Dr. David Aaker cited a number of financial and non-financial advantages for the development of a strong brand. AVS sifted through these advantages and discovered that six of them direct impact on the financial performance of an organization have. Each of these services can be measured, and they are dependent on each other, which means that if the first advantage can be achieved, the Organization will support five in achieving the remaining.
Our research also showed that the achievement of a linear process is the six advantages. Take advantage of achieving 1 will support the Organization 2 use to achieve, and so on. In addition (and probably the most powerful of all use) If an organization has made it all the six financial benefits back to the first advantage and repeating the process as a continuum. This is a powerful process as his journey through the continuum being reviewed as a company, the brand is stronger and stronger. Any line through the continuum produces more financial benefits for the organization. This process of brand continuum gets AVS.

Here are the six financial benefits for a strong brand presence:

Benefit 1: A strong brand identity commands one charge. Why is someone prepared more for Lexus than pay thousands of dollars for a Toyota? They are virtually the same product with the exception of some additional options and accessories. "You can buy also exotic cars from Jaguar, Volvo and Range Rover." "And everyone is done by Ford - and you should not be surprised to discover that they share even parts."
The value proposition is wrapped around the brand. The Lexus, Jaguar, Volvo and Range Rover brands are worth more in the minds of consumers regardless of whether the product works actually better.

Advantage 2: A charge created the perception of quality. This follows the ancient axiom "you get what you pay." If a Lexus costs more than a comparable product, it must be because the Lexus offers better quality. Right? Not necessarily. There are many low-cost, high-quality vehicles available, but people still have more numbers for what they perceive to be a better or higher quality brand. So life in the axiom.

Advantage 3: perceived quality has shown that customers positively affect consumption. Consumers tend to choose brands that are they perceive quality brands. This connects also buy or brand loyalty to repeat. Consumers are generally continue to purchase brands that they repeat time to reward with a good experience when compared to the evaluation process.

Advantage 4: Dr. Aaker research is perceived quality of the most important single contributor to a company's return on investment (ROI), the more influence than market share, R & D, and marketing expenditure. Perceived quality contributes to profitability partly by improving prices and market share. Perceived quality will improve, and improve the Organization of ROI.

Advantage 5: Customer concern value with quality. This is closely linked to advantage 2. If a brand is perceived, to better quality as one other brand, tend to realize that the higher quality mark is a better value customers.

Facilities 6: perceived quality can be a point of differentiation. Smart companies are constantly looking for ways to distinguish their brand of competing offers. Perceived quality can be used to distinguish and select back to take advantage of the company for loop 1 and charge a premium for their strong brand.

Brand differentiation and brand relevance

Brand differentiation and brand relevance important are both on their individual merits. A strong brand identity arises only when an organization importance combines its differentiation. McKinsey & company defines brand differentiation as a ".." .. .the ability for a brand apart from its competitors to stand. A brand should be as unique as possible. Brand health is built and maintained by provides a set of differentiation promises to consumers and deliver to take advantage of those promises. Relevance is the actual and perceived importance of the brand to a large market segment. "Teaching the personal suitability for a brand to consumers and is strongly tied to the market penetration."
Uncovering the brand differentiation and relevance by a non-partisan brand differentiation analysis is important to differentiate your brand from competitor brands. Within the analysis it is important to discover the brands consumers than antes, driver, neutral and fool's gold would categorize.
Antes are features that are very relevant for consumers, but also provided by competitors. Drivers are very relevant for consumers and also unique from competitors. Combination antes and drivers together forms the basis for a strong brand identity. According to the young & Rubicam brand asset valuator have company, their brand differentiation with competing brands to increase that a 50 percent higher operating margin on average to undertakings with which can reduce their brand differentiation.
In summary that invest in building a strong brand identity a continuous process. The economy of today requires organizations to maximize their financial efficiency. Work through the brand continuum ensures that a brand provides the financial value required, the competition to keep an organization.