Brand Investment Builds Equity

admin | September 13, 2008

To create and build a brand you need to continuously invest in the development of a brand, a brand is not built over night nor is it built after a single marketing campaign or initiative.  Strong brands are built over a period of time through steady investment.

According to Steve Mckee in an article written in Business Week he stated that marketing should be seen as an ‘investment not an expense’ he confirms that the successful development and creation of a brand is an ongoing process of growth, or enlargement by a gradual buildup, this is commonly referred to as ‘brand accretion’.

 

The principle of brand accretion is based upon the premise that the more you consistently invest in a brand, the better the long term results will be.  Mckee goes on to say that “everybody accepts the principle of accretion when it comes to real estate, the stock market, and even collectibles”. 

 

People know that to invest in solid assets, you hang on to them and watch the value of your holdings grow over a period of time.  Then why is it that many people do not realise that building a successful brand is based upon a process, it is not about throwing money at a single marketing initiative, campaign or brand identity design, the principle of brand accretion is based upon the premise that in order to build brand equity a business needs to invest in it’s brand steadily and consistently.

 To read further information about brand accretion and the importance of investing in marketing and branding initiatives over a period of time see The Case for Brand Accretion.    

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