Why is creating a trustworthy and creditable brand important in business?

The functions or benefits of a strong brand for the organisation itself, of course, differ from the consumer benefits. Consumers are more likely to accept a new product by a well-established brand, compared to one that is not.

Strong brands never need to spend as much money (or time) promoting their brand. Strong brands command a loyal following, which perhaps is one of the key attributes of a strong brand. This affords the brand the luxury of not having to spend exorbitant amounts on advertising its products. Loyal consumers are motivated to seek out and pay a price premium for their favourite brand.

The Donut Chain Krispy Kreme is a prime example. The brand was built on word of mouth and steered away from expensive traditional forms of advertising such as television. The brand developed a cult following where loyal fans were often willing to drive more than 30 mins to one of its 240 stores in the United States (Morrison 2014J.

Brands are increasingly being recognised as intangible assets under what is termed brand equity.

The success of Apple as one of the most valuable brands in the world seems to be largely dependent on its brand reputation.

Learn more about how you can build up a strong brand name for your business by contacting the business mission by clicking here