Have you ever wondered what branding is? How does it work? And why is it so crucial for many businesses all across the world? If so, then you’re in the right place!
The concept of branding is one of those marketing concepts that are very vague and can quickly become confusing, even to those who have studied marketing before.
Throughout this article, we will explore what branding is and how it contributes to the success of every business through clear answers and examples.
To fully understand branding, we must first have an understanding of what branding is. Let’s get started!
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What is branding?
Branding is the process of creating and enforcing a particular understanding of an organisation, company, product or service among consumers by creating a brand theme. A branded theme can consist of specific images, logos, fonts, and colours to be applied throughout the entire company. The purpose of this strategy is to help people quickly identify and experience a brand, so they can choose it over the competition by clarifying what this specific brand is and is not. In order to achieve this objective, brands must always deliver products that live up to the promises they make to customers and stakeholders.
Why is branding important?
In order for a business to succeed, branding is crucial. When done correctly, branding can change how people perceive your brand, drive new business, and increase the value of your brand – but it can also do the opposite if done incorrectly or not at all.
Check out the main reasons why branding is so important for your business below.
1. Branding allows you to grow your business
There is more to branding than just fancy marketing terms. Companies have become more interested in branding in recent years, and some now include it on their balance sheets.
Why is that? It is because a valuable brand is crucial to the development of a profitable business. The brand will be adapted and modified over time, but a strong brand that has the ability to adapt will survive any test of time and ensure future business. Consider Coca Cola, Apple and McDonald’s to understand the value of a brand. Besides enabling you to keep existing customers, a brand strategy should also aid you in attracting new ones. Therefore, your sales will rise!
A good definition of brand strategy is the considered intent for the positive role a company wants to play in the lives of the people it serves and the communities around it. — Neil Parker
2. It increases business value
When the branding process is complete, the brand is formed, which includes its reputation and value. A strong brand translates into value when it has a strong reputation. The value can be measured through influence, premium price, or mindshare. Branding is also a monetary asset and must have its own spot on a company’s balance sheet since it increases its overall worth. Brand valuation is as important as branding itself, despite this being a controversial topic and a difficult task for many companies.
3. Branding helps people identify your business
Branding is more than a name, a logo design, or a catchy strapline – it is everything that represents the essence of your organisation. For example, branding can include the following:
Imagine a brand as an individual. People have their own personality, style of dressing, way of communicating, friends, characteristics, and stories to tell. The characteristics that make us unique are also what makes brands unique.
A great example is Minute Maid, a company that achieved a strong visual brand identity through its packaging design. Back in 2009, they redesigned their packaging for their premium range of products so that they could be easily identified on shelves.
Their aim was to create an identity that is cohesive and unified across many product lines, cultures, and countries.
4. It creates brand loyalty
A brand’s reputation is ultimately determined by the level of trust that its customers can place in it. If you trust a brand more, your perception of it will be better, and that will make its reputation and, therefore, the brand stronger.
It helps you to build trust with your target market, creates loyalty among them, so they continue to do business with you. A key element of branding is your values. As these values are embedded in your brand, you are able to create an emotional connection with people and how your brand affects their feelings.
Buying Nike for example, will make you feel trendier and more capable. Nike communicates its values in an effective way, and a lot of our buying power is based on our feelings.
5. Branding generates new customers
A brand’s reputation precedes it, just as it precedes the reputation of an individual. When a brand has established a certain perception in the market, an uncontrollable chain of propagation begins. Word of mouth reinforces or tarnishes a brand’s reputation and reinforces or tarnishes perceptions about the brand. As a result of a positive reputation, new customers may come into contact with the brand, and already have a positive association in their minds, making them more likely to purchase from the brand over the competition.
6. It’s the key to attracting top talent
Branding your company helps it attract and retain quality talent. You help your audience to understand “why I should work for you” in a way that shows why your company is a great place to work.
An excellent example of a company that attracts and retains employees is Google. They advertise all their perks (free meals, nap pods, international careers) on the website. In addition, Google Careers’ tagline, “Do cool things that matter,” could convince anyone to work there.
All of these are all important aspects of your brand that make you, you. Like every individual is different, so is your branding, so remember to share these unique qualities.
Remember that a company’s marketing and presentation make them leaders in their field, so take the time to think about your branding and why you are so important to your target audience.