There has been a lot written about branding, but I thought I’d take a fresh look at the subject and ask the simple question, “Why are buyers attracted to brand names?”
Five basic reasons come to mind:
(1) Brands imply safety. If a name is recognizable, it doesn’t sound experimental. For example, which firm would you trust to provide a drug for your rare medical condition, Goodman Pharmaceuticals or Abbott Laboratories?
(2) Brands imply widespread distribution and acceptance. Lots of people have purchased, and lived to tell about it!
(3) Brands command higher prices, and profits, because we expect their costs to be higher, especially those invested in quality control.
(4) Brands, of course, imply distinctiveness. Bayer Aspirin may contain exactly the same ingredients as a generic, but at least unconsciously, we sense there must be something extra or special in the recipe.
(5) Brands seem big and successful, and most people want to identify with this. It lends them a feeling of strength.
I’ll never forget when I was bidding on a large consulting contract against a division of Xerox, which was known at the time for excellence in sales training. I lost out to this company, partly because their rep asked our prospect “What would happen if Gary gets your business and is then hit by a truck?”
Actually, unknown to the buyer, this is an insurable risk. Moreover, and this is one of the ironies you come to relish in business, the division of Xerox that I was bidding against “died” before I did—it was sold off.
Not only that, but Xerox went on to invest a ton in MY sales training, shortly thereafter.
Still, the prospect I didn’t sell, took the “safe” route, and went with the bigger name at the time, demonstrating the power of branding.
Dr. Gary S. Goodman, President of Customersatisfaction.com, is a popular keynote speaker, management consultant, and seminar leader and the best-selling author of 12 books, including Reach Out & Sell Someone® and Monitoring, Measuring & Managing Customer Service, and the audio program, “The Law of Large Numbers: How To Make Success Inevitable, ” published by Nightingale-Conant. He is a frequent guest on radio and television, worldwide. A Ph. D. from USC's Annenberg School, a Loyola lawyer, and an MBA from the Peter F. Drucker School at Claremont Graduate University, Gary offers programs through UCLA Extension and numerous universities, trade associations, and other organizations from Santa Monica to South Africa. He holds the rank of Shodan, 1st Degree Black Belt in Kenpo Karate. He is headquartered in Glendale, California, and he can be reached at (818) 243-7338 or at: email@example.com .
For information about coaching, consulting, training, books, videos and audios, please go to: http://www.customersatisfaction.com