Captain's Log Entry 7471.7—The value of strong brands and branding is clear to everyone familiar with names such as Coca-Cola, Apple, IBM, BMW, Ericsson, Armani, Louis Vuitton, and Disney. Brand owners spend and work continuously to protect their brand identities from misuse and damage.
In competitive industries, branding plays a central role in competitive strategy.
The companies that own these names have built successful brand names over many years. Their brands now work as powerful assets for market pricing and selling. Why do they spend so much and work so hard to build strong brands? And, why do they pay so much attention to protecting their brands from misuse, damage, or slander?
The answer, of course, is that strong branding pays off at the bank. The financial payoff stems from customer qualities that every company founder, officer, and marketer aims for: strong brand equity and strong brand loyalty.