The ultimate goal of all branding is to build great brand equity, which is the totality of what people feel and think about your brand over an extended period of time.
Once you have high brand equity, there are many advantages:
- Brand loyalty: one of the main goals of advertising is to create habit-forming behavior in your customers, so they continue to buy and use your product without even thinking about it. Some would argue that it’s creating an addiction in people to buy your product without reason, but it’s just as likely that people love your product because it satisfies them.
- Price inelasticity: If people love your brand, they won’t need a discount or sales promotions to do it – they’re willing to pay full price and, sometimes, even more than full price.
- Long-term profits: Loyal customers are more profitable as disloyal customers, because you don’t have to spend money to woo them back or educate new ones. As well, it’s harder for your competition to compete if your customers love your product over time and become immune to competing messages.
- Brand extensions: Once your product has a well-developed image, you can use the same name over again in the same or another product category, just as Coca-Cola, Kit Kat, and Jell-O have done.