In this commentary we will discuss: “How Small and Mid Sized Firms Grow” we will discuss the value of building a brand name.
What is the value of a brand name and is it worth the time and expense of creating one? All large companies have at least one brand name, logo and image. It can be worth quite a bit if it represents something of value, whether that value is real or at least has perceived value. But it is not worth much if it doesn’t’ connote something of value to ones audience. In fact it can have negative value if ones brand name is tarnished, such as Philip Morris which had to change its name to Altria, or Blackwater which is now Xe. Some people will pay a lot more, for a brand name that is prestigious even if it is sold for a lot less under a private label. For example, do you really think articles with a designer label are actually designed by the personality that carries its name? Or is the product that is sold in an upscale store any different from the identical one sold by your neighborhood outlet?
So now let’s look at real value that is created by a brand name that really means something. The first step is to bring tangible value to your brand in terms of quality, service, guarantees, reliability and value. This is engineering value into your product or service. This is done every day by all sorts of companies and this is not that hard to do, given sufficient thought. One can use terms like “organic” or “environmentally conscious” that promotes just the illusion of health or good citizenship (think BP redefining its initials as “beyond petroleum”). Then there are the true demonstrable savings one can quantify with a value proposition that will save them money, such as “our people can do the job 25% faster and better then our competition”, or “we have an unconditional money back guarantee if our product does not last for at least 5 years”. But be sure of your claims that you make as contingent liabilities may follow you.
The next step is to come up with a good and often catchy brand name like Google, Amazon or Apple and spend the time and money to promote it. Today’s social media can often do the job faster and cheaper then traditional ads (how many newspapers are left in your town?) A well designed strategy is essential and services like Yelp and Angie’s List, but this is a double edge sword so poor quality can kill your brand. Top draw service and quality can also create a great word of mouth viral marketing campaign. Then there are key word search engines that can produce great results and is related to branding.
In our next blog we will discuss how to create intellectual property.
To see all articles in this series please go to http://optimal-mgt.com/blog.
Optimal Management is the premier management consulting company to the staffing industry. We act as mentors to owners and managers to maximize their sales, profits and value of their company. We become an extension of our clients operations and are there for all of their staffing and business needs, from sales, marketing and compensation plans, to finance, M&A, general management and everything in between.