What Is Branding? Why Is Branding Important?
Whether individual companies, institutes, companies or large corporations, good branding is a holistic boost for every business. Often, companies do not value a proper analysis of their branding strategy. That’s why they stand on the spot for months before the stone actually gets rolling.
However, small changes in communication and presentation based on an empirical brand strategy can work wonders. But it’s much more than just logo and graphic elements that make up a regular corporate design. Branding is about creating a complete customer experience. It is what makes your brand a world that your customers embrace.
Why is branding important?
It is possible for a product or service to be created and sold without having a defined name. Only through its quality can it conquer some sectors of the market. But how does it differ? Will consumers remember it? What happens if there is another product exactly the same?
Currently, the market is flooded with products that are overwhelmed by the selection, people choose and pay high prices only to obtain products that they have heard or trusted and believe that they provide a higher value than others. If consumers consider that all the products in a category are virtually the same and that no offer is clearly better than the others, they will simply take whatever is available at the lowest price. That is a reality that limits profits and that marketers evade.
To speak of the brand is to refer to an intangible object; it can be composed of name, symbols, colors, forms, all mixed in a concept that emerged from the creativity of a person. These objects can add value to your product or service without even changing its composition or quality.
So, what makes branding so important? Here are some reasons:
- Branding tells you how protected you are from new competitors: Knowing the value of your brand and comparing it with the entry cost of a new competitor will give you an idea of how vulnerable your product or service is to the entry of new competitors. If the value of your brand is close to the cost of entry, it can be effortless for new competitors to enter this market and take a share of it.
- Good branding allows you to sell your business better to potential investors: A business plan is much more attractive when the investor can know how much of the return is the result of the brand.
- Good branding is a measure of brand management. Over time the value of the brand can vary both for better and for worse. This will depend mainly on the efforts of the marketing manager to make consistent its position in the market. Therefore, the variation in the value of the brand within a period can create a criterion on the effectiveness of management for marketing teams.
The benefits of good branding
A well-devised branding strategy can bring many benefits to both a business and its customers. It is based on the master plan of your business identity. Your employees can work more purposefully and more towards goals, and your business will recognize its growth potential faster.
Your brand identity will also create social relevance and inspire people. Ultimately, it will make sure that you sell better, get more orders, and have a strong standing. Here are some benefits of having a good brand strategy.
Good branding enhances customer recognition
A brand strategy is not just about the clean execution of a corporate design. It is about the constant reflection, with which your vision and your values are implemented correctly. Many people have strong “spam filters” which they know how to handle strategically to attract attention. Attention creates relevance, and with the recognition of relevance, people get to know your company or product and examine your offer. Good branding opens people’s attention. They get to know brands, as well as memorize visual and content structures.
Good branding motivates staff
Having a good brand call also motivate your employees to reach milestones. The genius of a branding strategy is that, before it has an effect on customers and potential partners, it must first have a strong impact on the team and the company structure.
Essentially, the branding strategy should reflect the company’s own ways of thinking, ideas and working structures. This is called employer branding. And it’s also about lived values and internal structures. This paves the way for a clear way of thinking in the team and shapes the future strategy in the brand identity.
Good branding can save your business money
We often have quick ideas in everyday life that we want to implement quickly. It’s easy to jump from idea to idea and impulsively implement what we think is right. A clear branding strategy helps your business match your ideas to the actual master plan. You quickly realize whether the concept was excellent and fits into the entire user experience or works against what you want to achieve and be in the future. This saves above all time and money.
Branding has a psychological effect
Before people are willing to deal with content, ideas, products, and prices, we need to get their attention. Imagine a busy shopping street with hundreds of people pushing themselves past shops, in order to find your business. With your logo and colors, customers can immediately recognize your business out of the corner of their eyes in a fraction of a second.
Branding creates customer loyalty through referrals
People no longer decide on a company or a product simply because of existing offers. Rather many people end to research before they buy. If you have created a brand whose ideas and values people identify with and whose products and ideals they call good, potential and existing customers would like to spend money.
This is because they will be buying an emotional experience. They will then love to tell their friends and families about your brand, whether clothing, a service provider, where they have felt particularly well cared for or a product that they liked particularly well.
When rebranding, consider linking it with a unique digital marketing strategy. There are many digital marketing companies that can help tailor your marketing needs with your brand.