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Your Brand: Can You Know Its Worth?
By: Gerard E. Mayers
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This piece might seem like one about advertising, but it has a PR application and connection. The story I am referencing in my blog today originally appeared on LinkedIn, and was authored by David Edelman.

Us flacks all know how important perception is with respect to how our B2B and B2C consumers view the products, or brands, we help pitch. David Edelman’s article seems to confirm this. In the piece he quoted Kasper Ulf Nielsen, an executive partner at the Reputation Institute, as saying: “People’s willingness to buy, recommend, work for and invest in a company is driven 60% by their perceptions of the company, and only 40% by their perceptions of their products.” (Italics, mine).

Whoa. This is huge. This goes back to some of my earlier pieces about perception and also about why a brand’s internal consumers are as, or perhaps more, important than a brand’s external consumers. This also goes to the heart of corporate reputation.

Edelman further noted, “CEOs and executives have understood for a long time that a company’s brand is important and goes way beyond just a logo and tagline. ... It turns out that companies can determine how much a brand is worth. We’ve seen this most recently in the bidding war breaking out for Steinway, which is a brand that transcends time and technology. It has legendary cache, in a way that fabled brands like Kodak or Polaroid did not....

So how did Steinway develop such a valuable brand? Well, it starts with an excellent product. But to build a valuable brand, the company’s value and story must go beyond a single technology or product at a point in time. Coke, Nike, Starbucks all have this. There is an emotional resonance that justifies a premium.”

Edelman also shared his own thoughts on the importance of a company’s brand in this digital age: “I actually believe that a company’s brand is becoming more important in today’s digital economy. There are so many choices that customers need to make today — products, services, upgrades, channels, etc. The digital revolution has led to a proliferation of touchpoints with brands. It can be overwhelming, so a company’s brand is a critical and reassuring reference point for a customer.”

So branding is everything, even in PR.

“It’s also important to bear in mind that this isn’t just a B2C story. The power of brands for B2B companies is critical as well. B2B companies with strong brands outperform weak ones by 20 percent,” Edelman said.

For the complete article about how much a brand may be worth, see here.

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About the Author
Gerard E. "Gerry" Mayers writes about PR and other relevant topics for PR professionals. A former PR manager for Sensor Products, Inc. (currently based in Madison, NJ), he lives in Milford, NJ.
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