By John Maver
Part of a presentation given to the Renaissance Forum for CEOs
As the old wise marketing guru said “ Branding is the essence of successful marketing.” Brand equity is a precious gem. While not particularly rare it can be very valuable. So how do you tap into this treasure?
Consumers and customers don’t buy products or companies they buy brands. They form relationships with brands. The performance of your company or product, what it does and how it does it, is the core identity for the brand. The brand also has a distinctive personality and character that makes an emotional and trust based connection with the customer and distinguishes it from competitive brands.
“What Is a Customer Relationship? It is an on going conversation in which the customer never thinks of you without thinking of the two of you.”
What does Peters mean when he says the customer thinks of the two of you? I believe that he means that you have established such a positive relationship with that customer that they consider you to be instrumental in their business success. Therefore you are bonded and the equity you have established is very strong.
Brand equity can provide strategic advantages to your company in many ways
Indicator of quality. (Coke vs. cola.)
Command a price premium. (Intel vs. AMD)
Simplify the decision process for low-cost products. (Kleenex vs. facial tissue)
Give comfort by reducing the perceived risk. (Beringer vs. Two Buck Chuck)
Maintain higher awareness and included in most consumers’ consideration set. (Microsoft, Ipod)
Strong defense against competition.
Brand names are company assets that must be invested in, protected and nurtured to maximize their long-term value to your company. Brands have many of the same implications as capital assets (like equipment and plant purchases) on a company's bottom line, including the ability to be bought and sold and the ability to provide strategic advantages.
"What you ARE shouts so loudly in my ears I cannot hear what you say."
Ralph Waldo Emerson
"Your brand is not what you say you are, but what your customer thinks you are."
When people think of your company what image comes to mind?
Maver Management Group