Branding and the Importance of It
There are lots of examples of companies with solid brands being able to put a massive mark-up on their products, solely based upon the value of their brand. It’s not just the technical spec, or what the product does, it’s also the desirability of the brand which sells it.
We can see this very clearly when you look at branded food products vs value options at your supermarket. Many studies have been conducted to show that when people don’t know which one is which, they have difficulty actually determining which is which. This clearly shows everyone that it is the brand which causes the value of the branded option to exceed the value option by a significant margin.
There are also numerous other examples of these situations, throughout virtually every industry, which clearly illustrates the value to businesses of developing a brand. Remember though, a brand is there to develop recognition amongst the target market, and that can be both a positive or a negative.