Advantages of Strong Brand.Docx

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What Are the Advantages of a Strong Brand? A brand is an intangible asset that provides many benefits for businesses. Building a strong brand requires marketing effort, time and patience. When a business has a strong brand, it makes it difficult for competitors to enter into the marketplace. A strong brand influences the choices made and products bought by customers. Once a company has built a strong brand, it must maintain a positive reputation. Premium Price Companies with strong brands can charge more for their products and services because the brand is valuable in the eyes of consumers. Some customers won't even consider purchasing alternative products because they do not believe they will receive the same value. For example, a customer may choose to buy a premium cup of coffee from a national coffee chain instead of buying coffee at a local corner store. The reason is that the national coffee chain has built its brand and established in the minds of customers that the premium cup of coffee is worth the price because of the quality offered to the customer. Loyal Customers A company with a strong brand establishes loyal customers throughout the years. A company also can increase its income by introducing new products to the market. Customers who are loyal to a name-brand company are more likely to try the new product, as opposed to someone who is not loyal. For example, a popular burger place could offer a new smoothie drink at a premium price. Many loyal customers will purchase the new drink because they are pleased with the products they already buy from the company. Loyal customers also draw new customers for the company through word of mouth. Market Share A customer with a strong brand has a high market share because of its reputation, and this makes it difficult for new entrants to enter the marketplace. Companies can increase their marketing efforts

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