Why build a brand?

Taiwan has started to focus on brands. This blog has always supported the branding efforts of Taiwanese tech firms and would encourage them to do it properly. So why brand? Found a great article on the Interbrand website about branding where IE Singapore deputy chief executive officer Ted Tan explains why branding is important in a 2004 Today article. The article may be old but the ideas remain relevant.

What is Branding

The legal definition of a brand is a "trademark or distinctive name identifying a product or manufacturer". However, in today's fast-paced and rapidly-changing marketplace, a brand is simply a promise. When consumers look at a brand, they see a promise of performance.

"Branding is about perception," said Mr. Tan.

"In branding, perception is reality. A successful branding programmes is one that is able to create a certain perception about the brand in the consumers' minds.

"For example, most people perceive Volvo as the safest car in the world, and if they want to buy a safe car, the first brand that comes to mind is Volvo. Therefore, Volvo's branding programme s a success because it has made the brand stand for something in the consumers' minds."

Over time branding can add value to enterprises by building strong emotional links with customers and this, in turn, results in higher levels of loyalty.

Why should companies build a brand

According to IE Singapore, evidence indicaes that strong branding leads to increased profitability, brand loyalty, market share and higher stock prices.

The article continues:

All companies can go on the brand-building route

A common misconception about brand-building is that only large companies with abundant resources can afford to build brands.

However, branding is something that all companies can undertake right from the start. The reason is very simple.

Effective branding is the reason why companies become successful brands.

Branding can benefit companies tremendously. Lets hope Taiwan firms can get involved and start branding more effectively.

Today: Branding for Success [Link opens PDF file]