Why Branding is Important in Investor Relations
Many corporate stakeholders don’t realize the tremendous importance of brand equity when it comes to investor relations. In the attempt to attract investors and funding, branding plays an important role in proactively communicating the company business model, and corporate image. Investors are looking for a value proposition, and a return on investment. Innovative and consistent branding communicates reputation, integrity, market standing, and vision. It’s comparable to the equity of a major consumer brand such as Pepsi. The brand equity and image across all media platforms lays a solid foundation for investor confidence and consumer confidence for new products, or product line extensions. Brand equity should be conveyed in advertising and public relations campaigns, and in every marketing component…your logo, corporate colors, slogans, Twitter header, banners, and tag lines. At Advanta Advertising, LLC we believe that branding should be consistent and convey the same image and message. In fact, if a company constantly changes its branding image, it’s sending a negative message. Lack of consistency in branding shows lack of trust and confidence in the company and its brands. Consumers will probably go elsewhere and it’s a red flag for investors. When a new Advanta Advertising, LLC client sought our advice about their branding image, we advised them that their five different corporate logos and five different tag lines were confusing. We told them, it was important to settle on and stick with one corporate logo, and one tag line. It was a hard decision for them to make, but they followed our advice. When The Gap announced its new logo plans on Facebook in 2010, there was an immediate negative backlash. In an attempt to neutralize the backlash, consumers were invited to share their logo designs, and suggestions. It was an inviting, but unsuccessful gesture. Since the negative input continued, Gap appeased consumers and saved a tremendous amount of money by not moving forward with the new logo. The fact that Gap not only listened and responded to consumers was much to their credit. By keeping their old logo, they conveyed a very positive message. It increased consumer trust and further enhanced Gap’s brand equity. Consumers feel that their opinions are valued, and that they are part of the logo. Building value and trust is imperative when attempting to attract investors. This is where a positive corporate image and consistent brand equity comes into play. Creating powerful messaging – with a human touch is one of our many talents. It’s important to get into the mind of your potential investor to determine what benefits they’re seeking, their priorities, and then speak to these benefits with your branding message with what you can do for them so that you’re attracting investors, not chasing them. It’s important to demonstrate the value of your leadership and creative team and their ability to create brands that make a connection with customers. People want to do business with people and brands they can trust, and respect. Investors also invest in people because the team is important, so it’s wise to develop a relationship with your potential investors. Our Advanta Advertising, LLC team guides clients in developing a people connection strategy that builds confidence, trust, and enables clients to attract interest and funding.