Branding allows a company to get referral business. Would it be possible for you to tell a friend about the new shoes you love if you couldn’t remember the brand? A large reason ‘brand’ is the word used for this concept is that the goal is an indelible impression. As the most profitable advertising source word of mouth referrals are only possible in a situation where the company has created an unbreakable link between the fine product or service and the company that provided it.
Branding also allows a company to pick up easy new business by standing out from the crowd. Imagine that a person needs to buy a baseball bat but has never actually held one. There are many, many manufacturers out there, but it is a near certainty that the person has heard of Louisville Slugger. While the person may go with a different bat based on individual needs, the advantage of being the first company to enter a person’s mind in a given industry is simply impossible to overstate.
The most profitable companies in the world all have a single thing in common. They have established themselves as a leader in their particular industry – they have built a strong brand.