What Determines a Brand’s Value Part 1

When you talk to most people about brand management, they speak in terms of basic marketing. Others think of basic branding—coming up with a hip name, obscure logo and fluffy positioning.

Brand management is about building brand value. It’s about making a brand worth more than it costs to maintain it. Managing a brand is like managing a business. For several brands, that is the business.

I’ve identified 18 components that determine a brand’s value. I’ll discuss them over three posts, with this one being the first.

The actual brand and product you are selling. There are several types of products—consumer goods, services, social causes, images—all intended to serve existing and anticipated needs. Understanding what your product is and the actual needs it serves is key to defining your brand.

The brand’s positioning. In defining your brand, you have to create an expectation of what it is going to do and represent. It is what differentiates you from the competition. The brand’s positioning tells the story and guides the overall strategy.

The target consumer. Identifying your brand’s target consumer goes well beyond basic demographics. Knowing who your real consumers are pushes psychographics to its limits, describing a typical day, month, year in their lives. Only then can you speak directly to them.

Your promotion strategy. How you package your branded product, craft and communicate your message and allocate the resources behind it are the heart of your promotion strategy.

The product and brand design. Form and function of a product give long-term credibility to the brand. The logo, packaging, materials and how you use them must reinforce the brand’s image.

Consistency of the brand message. Everything—absolutely everything—about the brand must be consistent with its central message.

We’ll cover the next group of six tomorrow.

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2 Responses

  1. […] a Brand’s Value Part 2 Posted on April 1, 2008 by cpmccrory Yesterday, I wrote about the first 6 of 18 components that contribute to a brand’s value. We continue today with the next […]

  2. […] set of components making up a brand’s value. You can find the first twelve in my posts from Monday and […]

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