One of the most common methods of gaining marketing advantage and being able to charge premiums for your product or service is to build a strong brand. A strong brand offers many advantages:
● Increases product recognition and trust - For example, brands can be visually recognizable from its packaging, logo, shape, sound etc.
● Builds loyalty - Brand loyal customers are less likely to switch to alternative products
● Helps With Product Positioning - This can happen in two ways. The first is where the brand is associated with the product category and/or positioning. For example, Domino’s Pizza for fast delivery. The second method is when customers associate benefits with a particular brand or categorization. For example, Skype has become synonymous with video conferencing etc.
● Aids in Introduction of New Products - Brands can be leveraged for line extension and product category extensions
● Builds Brand Equity - Strong brands can lead to financial advantages as they can be bought and sold