I received an email from a reader who asked, “what makes a good brand”?
This is a great question and from experience, there are standards of good branding that we need to apply and there are sound business practices that will make a successful business turn into a good brand.
For this post, instead of focusing on what we already know, creative consistency, clear brand message and positioning and differentiation. I decided to focus on what industry leaders, banks, lenders and CEO’s all believe in what makes for a good brand – sales, revenues and profits.
THREE FACTORS ON WHAT MAKES A GOOD BRAND
- Define brand equity based on the response to marketing activity. If you’ve recently launched a new product and you’ve met your sales forecast as predicted, this is a good indicator of good brand equity. For example, for your target audience to buy your product requires brand awareness and brand trust, which suggests you can test the market and command a premium price. If you can increase the price without losing customers revenues will increase, ergo…a good brand. Marketing activity includes the right strategy, pricing, etc, etc.
- Customer satisfaction and loyalty. If your percentage of repeat sales increases year after year, membership for your loyalty programs also sees solid growth and customers ask you to do custom work for them, this allows you to maintain your premium price. Again, a reason for a good brand.
- Total Revenue Less Marketing Costs. At the end of the year, you need to see an increase in revenue due to the marketing activity you’ve planned out for that year. Marketing costs include the cost to manufacture a product or service.
Some will argue the following factors that I highlight here can not accurately measure brand equity to generate financial value for any brand. This is because we can’t properly measure consumer’s loyalty for a brand.
Take the story of Twinkies, an American favourite snack. The maker of Twinkies, Hostess filed for bankruptcy in 2012, the result being that Twinkies has grown out of popularity because customers have migrated to healthier foods. Not so! If you missed it, Twinkies returned to the grocery shelves in 2013 after an outcry of nostalgia.
What To Consider When Rebranding
If your company is in need of re-branding, you need a plan that generates leads to support revenue goals and a good dose of public relations.
In today’s global market space, bringing in someone with knowledge in a diverse amount of marketing tactics, traditional and new, online and offline as well as in different industries will help your re-branding efforts greatly. Also, re-branding efforts mean a company is looking to increase or improve sales lead generation. It is not a creative project that requires you to update the logo and tagline.
It is a time-sensitive project. Rebranding efforts usually mean, it is time to evaluate the market, seek out all marketing opportunities for your products portfolio and successful implement Go-To-Marketing Plan. You need to review and define the company’s marketing goals and strategies that establish how you will reach these goals. In other words, it is back to basics!
Alternatively, contact us to learn how The Marketing Boutique can help you reach your Brand Development goals.