Branding

[Karen]

What does everyone think of branding a company?

I see several hosting companies use different web sites for the various products they offer. I have seen variations of the company name (companyhosting, companyservers, companyresellers) as well as completely different names for the different divisions.

Any thoughts ? I haven't been able to decide if this is an effective process or not.

Best wishes,

Karen

[tranz]

Why some comapnies decide to brand their offerings differently is due in part to several factors.

You can better target your audience.

You can build up value on another division.

Instead of using a shotgun type of marketing you use a razor-blade. This focuses your efforts and dollars on one area. From there you can then see what works and what doesnt. Allowing you to further refine your marketing efforts and extened you marketing dollars.

It also allows that division to build up its own value. Lets say that you do shared hosting right now and decide to get into managed solutions. Your shared hosting division has 40,000 accounts. A bigger company comes along and offers to pay you 5 times what those 40K clients are generating. You can, sell off just the shared hosting and use the funds to further your managed division.

Also, by creating divisions you are not putting all of your eggs in one basket.