Impact of Contribution of Brand Marketing in a Successful IPO

Abstract

The initial public offering (IPO) market is often saturated, and the brand requires more powerful, unique, and attractive investors. Multiple surveys from the large-scale companies show that pre-IPO brand marketing assists in IPO underpricing and may develop IPO trading in the stock exchange. The economic models indicate that these effects are heterogeneous. The company brand should create a class of excitement even when the economy is in recession. The company should ensure that it invests well to develop its brand to stand out even in challenging economic periods. Since many companies willing to go public try to differentiate themselves so that they will be the preferred entity in the market, a company should create an impression in the eyes of investors to stand out from the rest. While the managing team considers the company's financial stability a critical factor, the brand can sometimes significantly create an emotional connection between the firm and the company. The company's brand is a defining factor that drives the customer to choose the product. A brand is a complete value system offering a differentiated benefit to the customer. A company with intelligent leadership always chooses a logo with a graphic element, which resonates with its customer to improve relationships and brand loyalty. This paper highlights how focusing on brand marketing helps attract stakeholders and investors of institutions and underwriters for a successful IPO. Therefore, any company willing to go public should include brand marketing as a critical entity in their business plans for an IPO to be successful.