The American Marketing Association (AMA) defines a brand as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.
So what does this mean to you in layman’s terms? A brand is about trust; once your product or service is recognized by the consumer as a trusted product for what it’s was purposed for it becomes a mainstay for its category. This is powerful because the rapport and/or “trust value” can then be transferred to other products, as this transference occurs from one product to another consistently, the consumer begins to purchase various products from your company simply because your product is know for producing quality products.
Why is this so powerful? Simply put, one of the largest, if not the largest (depending on industry and company size) budget companies consider is marketing dollars. It is extremely expensive to break a new product/service to the market irrespective of company size. Nevertheless, if the company has established a trusted brand it takes less money to push the product to the consumer and convince the consumer to try the product. Because the consumer is relying on the reputation of the company, which is known for producing a quality product. This is huge because while other companies are faced with the dichotomy of proving product worth and product quality, the well branded company only has to prove product worth. This equates to more than half of the marketing budget!, this is consistent regardless of type or size of business.
I DON’T HAVE TO WORRY ABOUT A BRAND? WRONG!!!! Here’s why, regardless of your conscious attempt to establish a brand if you stay in business long enough you will develop a reputation in the marketplace. Good or Bad. Branding is merely being aware of your current reputation and steering it properly if you are already established, if you are new to the marketplace its about strategizing the success of your brand and the planning of your brand. Make no mistake, if you do nothing you will establish a brand your merely rolling the dice on your results.
SO HOW DO YOU ESTABLISH A GOOD BRAND?
At S1K we use the following three initial tools: