Greg Dolan is co-founder and CEO of Keen Decision Systems. He can be reached at greg.dolan@keends.com.
Thirty-three percent. That’s how much you can boost your company revenue1 if you present your brand consistently.
A well-established presence in the marketplace means you can: charge a premium price for products or services; build customer loyalty; and make it more difficult for competitors to attract the same base because consumers perceive the products of well-known brand names as better than those of lesser-known ones.
However, as we head into a potential recession, many businesses reflexively cut back on discretionary expenditures such as marketing, which owns the company brand, and advertising. History tells us it’s a mistake to do this.
Research2 reveals pulling back on advertising hurts a brand in the long term, with sales crippled both during and after a recession.3 This was accurate during the 2008 recession, where it took brands that shut down their advertising three to five years to recover their market share. However, brands that sustain advertising investment and maintain a brand presence during a downturn can increase sales during and after.
A strong brand starts with brand equity. This is the added commercial and social value that a product or service carries over the same product or service without the name. This value can include the consumer’s awareness of the brand, associations with it and perception of quality. The added value can be positive or negative.
Businesses with high brand equity have a distinguished reputation and brand recognition among consumers, making it easier to launch new products or expand into new markets. Brands can even sell or license their brand to generate additional revenue. A prominent brand typically equals success.
Building brand equity requires a long-term, strategic approach that focuses on creating positive customer ass...