Brands
Brands are shared ideas about organizations and what they offer, representing a signficant share of the value of a companies intangible fixed assets and contributing to increased market share and price elasticity.
"Brand value represents on average 20% of a business's market capitalization, part of the intangible assets that on average represent 84%" —The brand, the most valuable business tool ever invented
"Brands account for close to a third of a company's value. For the highest performing brands, it can be more than 50%" — Kantar BrandZ’s Brand Valuation Methodology (2024)
"Brands that people are strongly predisposed to have 9x volume share, 2x higher price paid, 4x more likely to grow sales volume" — Kantar
Brands can establish persistent perceptions of difference via:
- Price (value brands)
- Product
- Physical Presence (convenience brands)
- Mental presence (interesting brands)
"Brands with higher awareness levels have a growth efficiency advantage over others. Meaning the stronger your brand, the further an incremental dollar of performance marketing spend will take you." — Growth efficiency, marketing's existential metric
"For low-consideration purchases, brand effects dominate." — Growth efficiency, marketing's existential metric
"Marketing actions affect sales performance through their differential impact on attitudinal metrics... We find that marketing-attitude and attitude-sales relationships are predominantly stable over time but differ substantially across brands and product categories" — Consumer Attitude Metrics for Guiding Marketing Mix Decisions
"Brands are a necessary evil: they add a layer of complexity to the buying decision, but they also allow for routines... such habits make buying easier" — How Brands Grow by Byron Sharp
"Brands, well-built and surgically focused offer the necessary vision and direction to build sustained advantage for organisations. That can then be delivered by every customer experience, digital or otherwise." — Richard Huntington
"A prestigious brain imaging study has shown that the same brain area, the so called medial prefrontal cortex, gets activated both when we assess a ‘socially oriented brand’ and when we judge the intentions of people. This demonstrates the extraordinary influence of a brand: even our brain, beyond our conscious awareness, may see brands as powerful as the influence of our friends. Thus a ‘caring’ brand may be as strong in influencing consumers’ behaviour as a conversation with consumers’ friends." — What role do brand cues have in brand equity?
"Our 'beliefs' about brands are nowhere near as stable and consistent as we think. As Ehrenberg-Bass Institute for Marketing Science's work with re-contact surveys has shown, individual opinions about brands are much more volatile than top-line tracking data suggests... People answer research questions in a 'probabilistic' way. They may lean slightly in favour of one brand or another, but they don't have fixed beliefs" — How Not to Plan