Brand image refers to the perception of the public towards the firm’s products and services.
Branding weaves such a strong web of quality, trust and honesty in the minds of the consumers that the latter are mesmerized by it.
A prudent firm focuses on brand positioning to stay ahead of its competitors in the industry.
Price premium is the additional revenue collected by the firm for its brand value in the market.
Once your firm is developed into a full fledged brand, there’s no looking back.
As illustrated in the above diagram, a normal firm would see a decline in demand as soon as they increase their prices.
On the other hand, your brand will see an increase in demand if the prices are soaring.
Why?
Because customers are so mesmerized by your brand magic that they seem willing to shell out more bucks to buy your goods.
All this is possible in today’s times, thanks to branding.
I must confess that the initial branding expenses might be heavy, especially if you have an online business.
But as a brand is built, we have observed a sharp reduction in the total marketing costs.
Marketing is done to remind the consumers constantly of your promise to meet their requirements.
But once your brand name is registered in the minds of the masses, they see no other product or service other than yours.
Your solutions become a household name over time, thanks to good product/ service quality, word of mouth marketing etc.
And thus, savings set in!
There’s very little doubt that branding boosts sales.
But the best part is when brand loyalty sets in.
Brand loyalty is the habit of consumers to buy products/ services of a particular firm again and again and again.
The first time users come repeatedly to purchase your firm’s products.
What happens next is crazy:
Repeat customers spread the good word and bring more customers, who also over a period of time, become repeat customers!
And the process goes on and on and on…
This is the power of an effective branding strategy!
Again! All this depends on how you model your branding strategy and put it into effect.
Every business guns for consistency so that their day to day operations are not affected.
Regular fluctuations lead to irregularities in the functioning of the firm.
A stable environment gives them a wide scope to think with cool heads and draw future plans.
Branding invokes a sense of trust and maturity in the market, which makes the consumers believe that your products are of supreme quality.
As a result, even in times of adversities, your brand continues to enjoy the masses’ support.
As mentioned in the price premiums point, irrespective of your pricing and volume creation, your sales will not be affected.