For understanding what a brand is, you must first understand that your brand does not exist either in your marketing department, or your public relations team, or your CEO's office. It's an image developed or created and exists only in the minds of your customers. A brand is the sum total of all the impressions a customer has, based on every interaction they have had with you, your company and your products.
Every interaction between you and your customer has a story to tell. Consider your product (a big interaction) point to the story that your company is innovative. The aesthetically pleasing design of your product package conveys that you are sophisticated and elite. But what if your customer relations executive is rude or your customer service is hard to contact? What if your CEO makes an off-color joke that's caught on a news camera? Every one of these things is interactions you have with your customers, and every one of them is going to affect how they view your company.
Whatever brand message you choose, make sure that your customers' impressions all point in the right direction. Remember the old marketing adage: "A bad advertisement is worse than no ad at all." By sending consistent, targeted messages your customers will understand exactly who you are and what you can do for them.
There are thousands of reasons behind the need for branding, but first and foremost is to create the good reputation. Whether a company has no reputation, or a less than stellar reputation, branding can help change that.
Branding also helps you beat the heat of ugly competition of different brands.
Branding increases a product’s market value.
It gifts you customer’s loyalty.
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