Is allocating large sums to developing a brand a wise way to spend your money?...

Brand image has become an industry in its own right but can its costs be justified? I for one believe that it is the quality, innovation and good value of the product that establishes its brand in the market and not the other way round.

What do you think?

Joe
http://www.figurewizard.com
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http://www.figurewizard.com Free Business Forecasting and Planning Online

Re : Is allocating large sums to developing a brand a wise way to spend your money?

I have never been a fan of institutional advertising aimed at building a brand. If you are going to advertise then try direct response advertising - something that is aimed at driving prospects to contact you. It has all the of raising awareness to your overall brand but also, with the call to action, you get leads and feedback on what works and what doesn't.

It can be a long, lonely road just trying to raise awareness for a brand without also trying to create sales.

Pop over to my blog and take a look at two of the business development superstars I focus on.
1 - Jay Abraham - marketing mastermind and firm advocate of direct response advertising
2 - Rich Schefren - who is doing some great work on how to get attention using Web 2.0.
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Paul Simister Your Profit Coach helps you to build a bigger, better business with more profit. See the business coaching blog http://businesscoaching.typepad.com

Re : Is allocating large sums to developing a brand a wise way to spend your money?

I have always been totally amazed at the sums of money large companies literally sink into developing brand awareness.

They spend a fortune getting a new logo developed costing millions and millions through an advertising agency and to my eye it gains them little.

Chris

Re : Is allocating large sums to developing a brand a wise way to spend your money?

Couldn't agree more Chris - I am often surprised when I read of rebranding exercises that cost millions, or logos that cost a fortune for instance.

The classic case must be that strange logo for the 2012 olympics, didn't it cost hundreds of thousands... imagine how many small businesses could be run for a year on that sort of funding!

Lianne

Re : Is allocating large sums to developing a brand a wise way to spend your money?

Since we all agree this seems strange, why do they do it?

Sasha

Re : Is allocating large sums to developing a brand a wise way to spend your money?

Total waste in my opinion!

Steve

Re : Is allocating large sums to developing a brand a wise way to spend your money?

Another vote for them wasting their money, I suppose it just shows what a great sales pitch the marketeers give in terms of it adding value.

But it is odd that companies are so tight with money in other areas and yet will think nothing of sinking loads of money into this sort of exercise, because the consultants know best after all!

Tim