Failing to Grasp These 5 Brand Building Issues May Put Your Business in a Tough Spot

1. What is the core task of marketing for a brand?

Mr. Feng said that: “This is a very interesting question. In brand marketing, it is crucial to understand that mastering core tasks significantly influences customer choices and drives them towards purchasing the company's products and services.”

Brand impact can be divided into two key aspects:

• First, ensuring that potential customers convert into actual buyers.
• Second, ensuring continued customer loyalty, leading to repeat purchases.

2. What is the significance of brand valuation for a company?

Brand valuation plays a practical role for companies, typically involving five key aspects:

Strategic Decision-Making: Brand valuation informs both strategic and tactical management decisions. The results provide an objective assessment of the brand's ability to generate value, helping companies align their strategy and invest wisely in areas that will enhance value creation.

ROI Evaluation: It helps evaluate the return on investment (ROI) for specific brand-building activities and guides the allocation of investment across various branding efforts.

Financial Transactions: Many financial transactions, particularly abroad, require brand valuation. It can even appear on the company’s balance sheet as an asset, reflecting in financial reports as an investment. In some cases, brand value can be used as collateral for bank loans.

M&A Transactions: In mergers and acquisitions (M&A), the brand often represents a valuable asset and driving force within the deal.

Licensing: Brand valuation is also crucial in business licensing, either for internal management across subsidiaries or when licensing third parties to use the brand.

Companies that fail to understand the importance of brand valuation often struggle with whether or not to invest in long-term brand-building efforts, which, if mishandled, can lead to poor results.

Brand valuation, when recognized by financial institutions and society, will help brands truly thrive.

3. Does the emotional value of a brand meet the core needs of consumers?

When consumers choose a brand, they seek to maintain trust and consistency. Psychologists have identified a core psychological need for consistency. In many cases, the products we purchase reflect our identity.

Brand marketing often seeks to answer key questions such as:

• Who are we as a brand?
• What do we stand for?
• What matters most to us?

These messages create a connection between the brand and consumers, reinforcing loyalty.

4. What is the role of brand marketing? 

The goal of brand communication is to convey the brand’s values, symbols, culture, and core messages through advertising, PR, corporate social responsibility, and social media. The most important task is to embed the brand's core values in the minds of consumers.

5. What are the differences between business model, operating model and profit model?

A business model outlines where products come from, how much they cost, who the customers are, and how profits are made. Operational models focus on organizing resources and maximizing efficiency, while profit models focus on controlling costs and maximizing returns.

In short, the business model integrates the operational and profit models, guiding the company's strategy. Brand building must evolve accordingly, becoming a strategic priority for larger companies that already have a strong market presence.