Why the world’s most successful companies treat brand as their most valuable asset?
Decades of marketing research tell that big and strong brands grow faster, sell more, and cost less to advertise.
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Brand strength determines advertising ROI.
The biggest multiplier of marketing effectiveness is the size of the audience your brand can reach and convert. Strong brands:
- Compete in bigger markets
- Win more mental availability
- Convert more buyers, at higher margins
Source: Paul Dyson, Top 10 Factors Driving Advertising Profitability
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Brands grow when their presence exceeds their Market Share (SOM).
Brands grow when more people are aware of them and consider them during buying decisions. To increase market share, a brand needs to reach beyond its existing customers and make itself visible to a wider audience.
The more people who know about the brand, the more potential buyers it can convert over time.
Double Jeopardy Law:
Small brand = Fewer and less loyal customers
This marketing law shows that it is normal for smaller share brands to suffer twice - to have fewer users, who are also less loyal - when compared to their larger share competitors.
