When leaders of emerging and grass-roots business hear the word “branding,” many perceive it as a fancy way to express creating a logo and putting it on things.
At the same time, the ones who understand branding more holistically as the establishment and definition of a product’s identity – including character traits and personality – often have trouble understanding how effective branding can affect their bottom lines.
It turns out it means a lot … one of leading branding experts says so.
David Aaker, Ph.D. – who is hailed around the world as the “Father of Modern Branding” and is the other of 16 highly-acclaimed industry books – says that a company’s brand equity, or value, can equal anywhere from 10 percent to 60 percent of a company’s financial value.
“Even 10 percent of the value of a business will usually represent an asset worth building and protecting,” Aaker writes in an essay on the Linkedin social platform. “And when it’s higher, the need to protect the brand-building budget becomes more compelling.”
Aaker’s informative essay can be read by clicking here.