Contrary to common misconception, a brand is not the same as a company’s name or logo. While these are both elements of a company’s brand strategy, a brand is a much broader concept that consists of all the aspects and operations of a company.

A brand is a mental image of a company, product, service or individual. A company can influence its brand image through its actions, but ultimately it is the customer and the surrounding stakeholders that decide what the image will be.

A strong brand is a company’s most valuable asset. It tells the personnel, customers and stakeholders why the company exists (purpose), what sort of a future it believes in (vision) and why its objective is worth striving towards (mission).

A brand is also one of the best management tools. It sets the direction and provides a shared framework for all operations. It also demonstrates what the company is about, what it does, who it serves, how it communicates and how different things within the company are linked to each other. Engaging the personnel in the change through an inspiring brand story allows even a large-scale transformation to be accelerated and led with shared goals.

The managers of every company should consider the operating logic based on which their company is run. For example, a food company easily sees itself as a food production enterprise, even though it would be better to run it as a brand house.

The values at the heart of a brand are linked to the company’s reputation and employer image. A good employer image helps recruit the best talent.

A strong brand image gives a company a distinctive position amongst its competitors, engages customers and creates pricing power for products and services. Pricing power, in turn, is reflected directly in the company’s performance. A well-known brand with a strong image will also allow a company to expand to new business areas.