Thursday, June 16, 2011

Branding Part 3 of 3: Image

This is our third part in the three part series on branding. In this final series we are going to talk about brand image.

What is a brand image? It is the impression about your brand that a customer has which is created by brand messages and experiences.

Customers impression of your company = brand messages + experiences

What you want to do is deliberately create a favorable impression on your prospective customers and manage that impression for higher profits.

Next, we are going to discuss multi-tier branding: This is where you create a brand and several sub-brands to further strengthen you position in the marketplace.

For example if you have a online publishing company, you can brand the company as X. Then lets say you have a series of products about golfing you release, you can brand all of these products as Y. Further you can brand each individual product as their own individual brand.

This helps to build brand strength. We see examples of this with Apple. We have Apple, IPad, IPhone, IPod, etc.

This use of multi-tier branding helps to differentiate your products in the marketplace. Furthermore it acts as a way of strengthening your brand as each product adds to the brand value of all the other products.

Its important to always remember that a successful brand is really a relationship between a customer and a company.

What you want to focus on is building long term trust. Simply going after the sale can weaken your company in the long run. If you manipulate or decieve your customers, you are going to lose your customers.

Furthermore they will tell other people negative stories about your brand. Finally you will eventually lose market share to companies who think long-term. If one company is just going after the sale, they may initially have higher profits.

However when you look at the lifetime customer value the company who develops trust has a much lower customer acquisition cost and makes more money off each customer.

So not only does it cost less for a company who develops trust to acquire a new customer, but they also make far more money off each customer they acquire.

This is a deadly combination in any marketplace that allows long term brands to stomp companies who only think short term.

No comments:

Post a Comment