Branding is important for all businesses because it makes a memorable impression on consumers, and it also allows your customers to know what they can expect from your company. It is the best way of distinguishing yourself from the competition and clearly communicating the uniqueness of your offer that makes you a better choice. Your brand is developed to be a true representation of who you are as a business, and how you wish to be perceived among your clients and prospects.
There are many tools that are used to develop a brand which include advertising, the interaction of company staff with customers, customer service, after-sales service, corporate social responsibility, reputation, and the visual representations of the brand. All these elements work together to create one unique attention-grabbing profile.
Branding is misunderstood by many by being just the aesthetic component, that is the visual identity. They think branding is just about the visual identity – name, logo, design, tagline, packaging, etc. The concept of branding and its understanding among customers have evolved significantly over the years, and we need to look at all possibilities to develop a strong brand.
Cambridge Dictionary definition of branding is “the act of giving a company a particular design or symbol in order to advertise its products and services.” This was a nice and accurate description of branding long ago, but now it has undergone changes because of the evolution of the branding concept. Many practicing branding experts expressed the view that “brands are essentially patterns of familiarity, meaning, fondness, and reassurance that exist in the minds of people.”
According to another popular definition “branding is the perpetual process of identifying, creating, and managing the cumulative assets and actions that shape the perception of a brand in stakeholders’ minds.” Even though this definition of branding seems to be a little ambiguous, it is much more meaningful than any other definition when we go deeper into its meaning by breaking it down into different parts.
Branding is a perpetual process: Branding is a perpetual process, and it never stops. People, markets, and businesses are constantly changing and the brand must evolve in order to keep pace with them.
Identify, create, manage: There is a structured process to branding. You must first identify who/what you want to be to your stakeholders. Then create your brand strategy to position yourself accordingly, and then constantly manage everything that influences your positioning.
Cumulative assets and actions: Your positioning must be translated into assets – visual identity, content, products, advertisements, etc. – and actions – services, customer support, human relations, experiences, etc. – that project it into your stakeholders’ minds, slowly building up a positive perception.
Perception of a brand: Perception is also known as the reputation of the brand. This is the association that an individual (customer) has in their mind regarding your brand. This perception is the result of the branding process or lack of it.
Stakeholders: Clients are not the only ones that build a perception of your brand in their minds. Stakeholders include possible clients, existing customers, employees, shareholders, and business partners. Each one builds up their own perception and interacts with the brand accordingly.
How branding will help your business?
Branding is absolutely essential to any business because of the overall impact it makes on your company. Branding can change how people perceive your brand, it can drive in new business, and also increase brand value. But it can also do the opposite if it is not done properly or done wrongly.
You can build up a reputation with the help of branding, but the result can be good or bad. Understanding branding and using the branding process carefully means you can manage it properly, and try to control what that reputation looks like. Hence it is recommended to look at branding from the very beginning of your business.
Branding is not an expensive marketing tactic that only big brands use. Branding has a lot to do with common sense and is heavily influenced by the market you are in and the level you want to play at. It involves a consistent mix of different competencies and activities. There is no one-size-fits-all approach for branding.
Branding in practice
Branding is an ever-evolving subject spanning many areas of expertise, like business management, marketing, advertising, design, psychology, and others. Branding also has different layers, each one with its own meaning and structure. Branding is not the same as marketing, but there are many common grounds between the two. They are interdependent and their primary goal is to support the business by increasing clients and revenue.
It is important to have some clarity and expertise regarding different aspects of branding, such as employer branding, country branding, brand design, brand governance, and brand valuation, to name a few.
Major advantages of branding from business point of view
- Branding increases business value and new business opportunities: When you try to generate new business, a good brand will help you. A strongly established brand will give the company more leverage in the industry, and it will attract new investments.
- It generates new customers: Strong branding generally creates a positive impression of the company among the consumers, and they will be willing to do business with you because of the familiarity and assumed dependability.
- Improves employee pride and satisfaction: Working for a well-known and reputed company (brand) makes it more enjoyable and fulfilling among employees.
- Creates trust within the marketplace: This ultimately boils down to the amount of trust that clients can have on the brand. The more you trust a brand, the better your perception about it, and this reputation will lead to a strong relationship in the future. In a highly crowded market, trust is very important because it can make a difference between the intent and purchase.
Proper branding can make a huge difference for your business, and lack of branding can also lead to loss of business opportunities. Hence all businesses should take branding very seriously and engage the right consultants to do it.
