Now that I have your attention, let’s talk about brand. I mean, who wants commodity pricing?
That’s why, as a business owner, understanding the value of a brand is crucial. Why would someone pay you more for your product or service than what the other guy charges for seemingly the same thing? Enter the concept of brand equity. Simply, it means the owner of a well-known brand name can generate more money from products with that brand name than products with a less well known name can generate.
For more on the topic, here are some insights from the man I consider the godfather of brand equity, Professor David Aaker: What Is Brand Equity and Why is it Valuable? I first became a fan of his when I thoroughly consumed his book Managing Brand Equity more than 25 years ago. A summary:
The most important assets of any business are intangible: its company name, brands, symbols, and slogans, and their underlying associations, perceived quality, name awareness, customer base, and proprietary resources such as patents, trademarks, and channel relationships. These assets, which comprise brand equity, are a primary source of competitive advantage and future earnings.
What have you done for your brand lately? Is it supporting the kind of margins you’d like? Without long-term brand building, market success can be elusive indeed.
Do you know everything you should about your corporate or product brand? Maybe it’s time to evaluate it. Where do you really stand in your marketplace? In the minds of your prospects?
Perhaps you’re ready to launch a new brand, reposition an existing business, or upgrade your firm’s image. Regardless, there’s one thing you can count on: market leaders get that way because they build brand identity and brand equity, methodically and relentlessly.
There’s a way to do it right, starting from day one. And it pays off where it matters the most: in higher margins and multiples.
Want to talk brand building and brand equity? Hit me up!