As a marketer or CMO, you know that building a strong brand is critical to the success of your business. But what exactly is brand value and why is it so important?
Let us explore the key reasons of brand value matters and how they can help brands differentiate in a noisy marketplace.
Importance of Brand Value
Brand value is the unique set of qualities and characteristics that define your brand and set it apart from the competition. It encompasses everything from your brand’s purpose, values, and mission to the quality of your products and services. Brands that carry a distinct brand value are more likely to stand out and succeed in a crowded marketplace. Examples of such brands include Apple, Google and Harley Davidsons. These brands are able to maintain a strong identity and loyal customer base because of their unique brand value.
Consumer behaviour is driven by emotions, and this is where brand value becomes even more important. Consumers are more likely to choose a brand that they feel emotionally connected to, and a brand with a distinct value proposition and purpose stands out among competitors. By developing a strong brand value, you can create an emotional connection with your target audience and differentiate yourself from the competition.
Why is brand value important?
The market is becoming increasingly difficult for brands to get noticed. Brand value is important to drive engagement with the target audience and especially using emotional drive. How does one feel when driving a Porsche vs. a Toyota, Bentley vs Mercedes? When customers feel emotionally connected to your brand, they are more likely to be in the consideration list among your competitors. At the retail level, the competition is very keen during the selection process – from design, descriptions (functionalities), price vs. value would all be run in the process before a product is being picked up. A strong brand value can help brands command premium pricing, customers loyalty that lead to market share and sales.
How can a brand establish a brand value that is appealing to their target audience and yet be authentic. The study done by Harvard Business might give an idea on Value elements:
In the article, the authors identified 30 fundamental elements of value that businesses can use to better understand and serve their customers. The elements of value are organised into four categories: functional, emotional, life-changing, and social impact.
Functional elements of value are basic needs that products or services fulfil, such as saving time, simplifying processes, or reducing effort. Emotional elements of value appeal to customers’ feelings, such as providing a sense of pride, reducing anxiety, or creating a sense of belonging.
Life-changing elements of value transform customers’ lives in significant ways, such as enabling personal growth, facilitating achievement, or providing a sense of well-being. Finally, social impact elements of value are related to customers’ desire to make a positive impact on society, such as supporting a cause or feeling socially responsible.
Having an understanding how ‘The Elements of Value’ drives customers is crucial as businesses can better design and market their products and services to meet those needs. The focus is not just on price and quality, but building stronger relationships with their customers by developing loyal and engaged customer bases is an important part of business development.
For any brand, its value represents the core of the business and the beginning of engaging fans that turn into a transaction. The Elements of Value is an essential part of any successful marketing strategy. Consumers look for clear and distinct brand value that they could be emotionally related to. Are you doing what it takes to stand out in a noisy marketplace, and build long-term customer loyalty?