Brands are valued at millions, even billions of dollars. It attracts investors and businessmen who are willing to invest their time and money into the company. Brands create strong customer loyalty, makes a company reputable and sought after. So why is a brand so powerful? What role does it play in giving valuable functions to the company?
Firstly, brands offer legal protection necessary for creating and preserving trademarks. Through brand, there is a legal protection for unique features and aspects of the product. Brands help companies retain intellectual rights to their unique product, ensuring that only they will have the rights to create the product. Brand name can be legally registered through trademarks, while manufacturing processes can be patented. Designs, logos and packaging can be copyrighted. Ensuring companies have protected intellectual property rights is a guarantee that people can safely invest in a company knowing that the benefits from the company will only be reaped by them.
Secondly, brands can be used as a competitive advantage in marketing. Although products and manufacturing processes can be duplicated or imitated by competing companies, lasting impression and brand image that has already been implanted in the customer’s mind through marketing and product experience cannot be duplicated. From this perspective, brands give companies more advantage. Years of investing in marketing, creating good consumer experience has benefits exclusive and can only be reaped by the company that owns the brand.
Thirdly, brands offer security for many aspects to the company. Brands ensure the security of substantial future revenue. This is done through brand loyalty. To consumers, brand signal a level of quality and experience so that satisfied consumers can easily identify the brand and purchase the product again. Unique associations and brands that set themselves apart from competitors can build strong brand loyalty. Consumers consistently use the products, providing security for future revenue knowing that the brand has continuous demand in the market. This can also be used as competitive advantage for companies to get ahead and enter markets that are difficult for other companies to penetrate.
In conclusion, brands are important and significantly valuable to companies because it gives legal property rights exclusive to the company, providing security for sustained future revenue, and gives the company strong competitive advantage in marketing.