4 Advantages to Develop a Brand

What is a brand? The American Marketing Association defines a brand as a “name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.” So why is brand identity development so important? Developing a brand identity for a business or individual has four advantages.

Brand Differentiation

The primary purpose of a brand is to differentiate your business from the competition by explaining the value proposition of your company. For example, what makes an iPhone different from an Android phone? Their main difference is the operating system followed by other sub factors such as the support system offered by each company or the “openness” within each operating system. Some choose the iPhone because it is faster and providse additional support; while others choose the Android because it provides an open source platform where developers are given more freedom and therefore can design some pretty great apps.

Brand Loyalty

Ever wondered why when given a choice, some people continue to buy a certain product? For example, Bonnie, Business Development Manager at Softway Solutions, always buys Mrs. Baird’s bread; while David Solis, Proposal Writer at Softway Solutions, always buys Express shirts and nothing else; and I, myself, always buy Gain detergent with no questions asked.

Society usually builds loyalty to a brand because it  continuously experiences positive encounters with that brand and, as a result, tends to buy that brand’s product every time without thinking twice about the competition.

Brand Recognition

Developing a recognizable brand can either be accomplished through a visualization or auditory strategy. The visualization strategy, where a brand identity is associated with a logo, helps consumers identify who you are without having to see your name. For example, who is the golden arches, the half bitten apple, the swoosh, Col. Sanders, or a yellow happy face? McDonalds, Apple, Nike, KFC, and Walmart.

On the other hand, with an auditory strategy, phrases are developed and words are associated with brands so that their consumers can easily identify the brand with those words and phrases. Here are some examples: “You Are in Good Hands”, “Buta Bum Bum I’m Loving It”, “Dress for Less”, and “Sports and Outdoors – the Right Stuff the Right Price”? Allstate, McDonalds, Ross and Academy.

Brand Value

Did you know that your brand has a value to it? For example, BMW paid £40m only for the Rolls-Royce name and “RR” logo. In 2009, an article in USA Today reported that Coca Cola was worth $68.73 billion. If business is good, then the longer a company has been in business, the more the brand of the company is worth. Think about it: how much is your brand worth?

Developing brands take time, persistence and most definitely differentiation. If you have not developed a brand for your business, contact  a Softway Solution’s brand specialist to create a strategy to  help you take advantage of all the benefits of having a brand.