Why Is Branding is Important
Brands are built over a period of time. They aren’t built overnight.
It’s true – branding is the key to any company, whether they sell coffee or industrial parts or clothing. But convincing your organization or clients that branding is necessary for all components of their business to succeed can be a bit more difficult than deciding exactly what colors best represent their brand mission.
Here are three reasons why branding is important, extracted from Dave Holston’s Brand Strategy course.
- Branding provides a competitive advantage
Whether you’re a non-profit or a for-profit, your organization needs to compete for resources, funding and talent, and audience attention. To win your category, organizations plan and implement strategy-a roadmap that outlines specific actions and measures for reaching their goals and out maneuvering their peers for needed resources. When done correctly, the organization’s brand mirrors their strategic plan, and helps promote strategic areas and initiatives that will move the organization forward.
- Brands provide a stable asset
Products might fail, companies are bought and sold, technologies change on a daily basis, but strong brands carry on through all these changes. Brands are the most sustainable asset of any organization, and when aligned with the overall strategy of the organization they can function as the central organizing principle for the organization’s decision making.
- Brands provide economic value
The value of organizations is divided into two areas: intangible and tangible assets-brands being intangible assets. A study of organizations in the S&P 500 index showed that over a 30-year period between 1975 and 2003 the overall corporate value of intangible assets increased from 17% to 80%. Brands are the most prominent of these assets.
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