The Power of Brand
The digital world of Andrew Peter Carson. Curiosity. Armed & Lethal. From Newport, Rhode Island. Studied in Madrid, Berlin and Beijing - Thunderbird School Of Global Management & American University. Brander, Marketer, Social Media Marketer, Vision Builder, Experience Architect, Creative Problem Solver, Language Learner.
What is Brand?
One easy way to think about brand is as your company's personality. If your company were a person, then how would he or she act? How would your company dress, talk, have fun? This is actually a good first exercise to picture and understand your brand.
In business it is always a financial manager's job to relate business operations to relevant investors or stakeholders. On the opposite side of business sits the brand manager, who is focused on relating business operations to the customers. The brand manager manages such a complex relationship through every front-facing aspect of the business: product packaging, design, marketing, social media, advertising, in-store experience and even HR.
Evidence of Brand
To find physical traces of brand in today's economy we have to look for evidence of perceived value. Perceived value is any such worth that cannot be physically touched but is merely captured in a viewer's belief in the presence of value. A company's brand, at the end of the day, is not a tangible asset. However a company's brand can sometimes account for a majority of a company's worth.
| Example # 1
For our first example lets look at the Market-to-Book ration of the S&P 500. This ratio measures the difference between how much a company is worth based on actual accounting principles (its assets, liabilities and equity) against the market perception.
Click to enlarge. Source: Oceantomo.com
In this graph we can see a measure of Market-to-Book ratio that compares tangible and intangible assets.
In 2009 we can see that intangible assets account for 81% of market value. This means that more than a majority of market value is derived from patents, royalties, trademarks, relationships and brands. If anything this proves that a brand is worth cultivating and growing as a performing financial asset.
“Branders are the bankers of perceived value. We are happy to deposit in your account everyday because we have our own set of economic rules. In the perceived value economy there is no inflation and supply is unlimited. We can print money out of thin air - the sky is the limit. Demand is only driven by our customer’s imagination and in this economy we can all be prosperous at no extra cost to anybody.”
| Example #2
Benefits of Brand
Unified Business Strategy
Brand strategy is business strategy. A company has strengths, products, services, ads and employees, but combining these together - what unites all these characteristics? If you can't explain your brand, you can't explain your strategy.
Customer Perceived Value
A brand is a symbol of trust. Customers are willing to pay more for that trust and for self-expression. Both parties benefit, customers get more value and companies operate with higher margins.
Future Equity
Financially, a strong brand represents a predictable stream of future profit. Customer loyalty and repeat purchases stabilize any business to survive unpredictable market changes.
How can you tap these benefits? High margins, low churn, high customer loyalty, secured future revenue, quick customer adoption of new branded products. Contact me for more information on a brand assessment, competitor & customer analysis and appropriate communication materials & goals to develop a well-positioned brand.