1. It can drive more traffic to your Web sites
If consumers identify certain descriptive words or slogans that represent your brand, it makes your company much more visible within the online marketplace. The more ways that people can describe and identify your brand, the more search results will be found in sites like Google and Bing. A great example of this is McDonalds. The following keywords/phrases would easily find the company on search engines:
• I’m Lovin’ It
• Golden Arches
• Big Mac
• Ronald McDonald
• Put a Smile On
• Happy Meal
2. It gives your company more credibility
Plain and simple, people go with what they know. If faced with a decision between two different products with similar price points, people will most probably always go with the better-known brand. Consumers have a very strong influence on one another and if a company has built their brand around a specific product or service, people will talk (good or bad). The more positive chatter, the greater chance your company has at becoming a credible organization and one within which consumers will become loyal to. There is a phenomenon called brand religion that explains this behavior. This means that the value of a company’s brand becomes so high that consumers will remain loyal to it even if it costs much more or its stock has depleted.
3. Helps your company to develop a recognizable identity
One piece of effective branding is that you have created an identity that can be recognized by the masses. Do you recognize all of the logos on the rest stop sign when driving on the highway? If yes, it means that that brand has done a good job in developing a recognizable brand identity. If you have made the products or services of your brand to represent something specific, your consumers will expect that consistency for all of your products/services. For example, Coach is a highly recognizable brand, and their products are identified as a high-end and good-quality alternative.
4. Makes your consumers view you in a certain way, and affects their behaviors
Being a recognized brand also comes with a lot of responsibility. People start to expect certain things from your brand, and they can turn on you just as easily if you disappoint them. An example of this would be finding out that a company that positioned themselves as a very environmentally responsible organization that prided themselves in using all green and natural products, was using artificial growth hormones on their animals, and emitting chemicals into the atmosphere. If your consumers viewed you as the way you marketed yourself (green and all natural), and you indulge in behaviors that prove otherwise, your consumers will most probably switch to a different brand no matter how loyal they had been to you previously. A strong brand also allows the transfer of the brand to new products, meaning your consumer will assume that because your brand has created the product, it will be as good as their other products that they love so much.
5. Distinguishes your company from competitors
This simply means that your entire brand make-up including products, designs, logo, and overall mission is unique to other companies in your field. Making sure to stand-out is important, especially in such a saturated market. A great example of a company that has made their brand distinguishable from their competitors is Apple. Not only do they develop high-tech and highly functional unique products, but they are the people that other brands mimic. Their products are so unique from their “competitors” that it almost seems as though they aren’t competing. Apple and HP are both computer companies, but Apple products are so different from other computer products that they almost can’t be lumped in the same category.