Brand names are assets to any firm or organization. Colleges and universities, whether public, private nonprofit, or for-profit, are no different. Those that have national name recognition can attract a broader and more talented pool of applicants, more tuition revenue, and more donations.

Because a strong reputation often shows that the college or university has been successful in pursuit of its mission, a reputation once developed is a potential revenue good that can be profitably exploited. Somewhat ironically, it is the school's reputation for its unprofitable activities, such as research and many elements of instruction, that often permits it to make profits in other activities. For example, by lending its good name to other revenue-raising programs – such as continuing education or product certification or endorsements – a school can expect to enhance its revenue. Critical to success in higher education, however, is the perception that the school's primary priority and mission is the welfare of the student and the production and dissemination of knowledge and not merely money. Overexploiting the brand name can result in greater short-run revenues at the expense of long-run reputation, as happened when Johns Hopkins University decided to endorse skin care products for cash (see Chapter 12). Thus, “successful” brand management involves a trade-off between leveraging the brand – making use of it to generate revenue – and simultaneously sustaining its value. A public or nonprofit college or university is very much like a private firm in facing this continued balancing problem.