Unfortunately, the converse is also true. Brand equity can be accounted for in a financial sense as part of the valuation of your company. Your stock value can be impacted by the value of your brand. And, as has always been the case, your brand gives you a cushion to make mistakes and be forgiven by the marketplace. Here are 7 reasons to build and protect your brand.
Strong brands are better at keeping customers and attracting new customers.
Brands have the ability to command a price premium and higher margins versus unbranded competitors. The marketplace value of your brand allows you to work with your distribution channel as an equal, not as a hostage. A strong brand can be leveraged into new product opportunities with a greater chance of success than new entries with unknown names. When you stumble, as everyone does occasionally, the market is more willing to forgive and give you a second chance. A strong brand, a good name, can provide leverage in new ways of doing business, such as on the Internet.