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What Is Branding and Why Is It Important for Your Business?

08/05/2022 | Ross Marshall
 

Branding is important for every business. The question is why? What makes branding so important? How does it affect your business?

Branded products or services are those that are associated with a particular company or brand name. This means they have a recognizable logo, tagline, colour scheme, etc. They also tend to be more expensive than non-branded items.

Branding is important because it helps customers identify your company and distinguish it from competitors. It also helps potential clients decide whether to trust you or not.

What’s a brand?

Brands are the most important part of any company. They help companies stand out from competitors. They make customers feel comfortable and confident about buying products. Your brand consists of a number of elements that make up the unique presentation of your business. For example, your brand should include:

  • Your business’s name
  • Mission statement
  • Logo
  • Colour Scheme
  • Fonts
  • Imagery including photos, illustrations and video content
  • The type and tone of written content

What is branding?

A brand is an intangible asset that identifies a product or service as belonging to a particular company. Brands are created when a company creates a unique identity for itself by associating itself with certain products and services. Brands are used to create positive associations with consumers. Brands help companies differentiate themselves from competitors. Companies use brands to increase sales, market share, and profitability.

Branding is the perpetual process of identification, creation, and management of the cumulative assets and actions in stakeholders’ minds. If you compare the official Cambridge definition to the one I’ve provided above, you’ll notice that the latter (my version) gives a deeper insight into what branding really means. My definition also includes the idea of visual identity but goes beyond it by including the whole concept of brand building.

Brands are always evolving. They are always changing and adapting to new trends and technologies. A brand should be designed to fit your business needs and help you reach your goals.

There is a structured process to creating brands. You must first identify who/ what you want to be to stakeholders. Then you must create your brand strategy to align with those stakeholders. Finally, you must continuously manage everything that influences your brand positioning. Your brand positioning must be translated into tangible assets (visual identity, content, products) and actions (services, customer support, human relationships, experiences).

A brand is an image that people associate with your company. Customers, employees, shareholders, business partners, and other stakeholders each form their own opinion about your company based on what they see and hear. Your company should be aware of these perceptions and work to change them if necessary.

Why is branding important?

Brands are important to companies because they help them stand out from competitors. A brand helps people understand what a company does and why it exists. A brand can be used as a tool to drive new business, increase brand value, and even influence public opinion about a company. But, brands can also cause harm if not handled correctly.

Branding should start as soon as possible. You need to make sure that people know who you are and what you do. Your brand will help people understand your company better. A well-branded company will attract more customers than an unbranded company.

Brands are not expensive marketing tactics used only by large companies. Brands involve a consistent mix of different skills and activities. A high-level consultant or flawless implementation may be more expensive than at lower levels. However, branding an international, multibillion-dollar company will be more difficult and resource-intensive than a local business. There is no one size fits all approach.

Creates trust within the marketplace

Brands need to establish realistic and attainable promises that position them in a certain way in the market and then deliver on those promises. If the promise is being delivered, trust builds up in stakeholders’ minds. Trust is an essential factor in highly competitive markets.

Set you apart from the competition

Regardless of what industry you‘re in, competition is fierce. Whether you‘re opening a bike repair store, selling CBD infused products, or becoming a social media strategist – branding helps you stand out from your competitors.

Establish brand recognition

Brand recognition is important because people remember brands. A lot of times, when people think of a certain company, they think of a specific product. When people think of McDonalds, they think of french fries and burgers. When people think of Coca-Cola, they think of cola. People associate these products with the companies. So if you want people to know who you are, make sure you put your name out there.

Build brand trust

Brand trust is important both for your business image and within your industry. Over 60% of online adults want companies they buy from to present themselves as trustworthy and authentic. Your brand should communicate your values and promises to your audience. Transparency and authenticity encourage people to believe in you and your brand.

Establish employee pride

Employees who stand behind their brand are good for business. They help shape public perception of your brand, and this has positive implications across the whole company. Your brand should make workers feel a strong sense of belonging, overall job satisfaction and pride. This encourages them to authentically promote your brand across all types of media and platforms.

What are the elements of branding? —

Mission Statement

Your mission statement should be concise and provide a clear picture of what your business does and why people should care about it. Your brand values should inspire customers to buy from you.

With the mission and vision statement as the pillars of your company, your brand strategy comes together into a tangible document that reflects and supports your business goals, differentiates you from competitors, resonates with customers, provides a template for decision making and precipitates ideas for future marketing campaigns, and includes all the stylistic elements that make up your branding, including your colours, fonts, and tone of voice.

Logo

Your logo should represent your company. You need to make sure it represents your company well. Think about what your company does and how you want people to perceive you. Use that to drive the design strategy.

Website

Designing your website is also a key branding step, but it’s more than just choosing colours and fonts. You need to make sure that your site reflects who you are as a company, and what makes you different from other companies.

Colour Scheme

You can use any colours you like, but keep in mind that some colours may work better than others depending on the type of business you’re running. For example, red works great for fast-food restaurants, while blue works best for clothing stores.

Fonts

The font used on your website needs to reflect your brand. If you’re using Helvetica Neue Light, then you’re probably selling computers. If you’re using Gotham, then you’re probably an art gallery. Make sure you choose fonts that will look good in various sizes, and that match the rest of your branding.

Tone of Voice

When you talk to someone about your company, do you sound enthusiastic? Do you speak slowly and carefully? Does your tone change when talking about one aspect of your business versus another? These are all things to consider when creating your tone of voice.

There’s no one size fits all approach to branding. Depending upon your business and industry, there may be additional assets needed such as business cards, product packaging, or event flyers. Assessing your business and your unique requirements, and then developing additional branding assets accordingly.

Conclusion

Branding is the strategy to create an image of a product. A brand is the perceived image created by the company. This article helps us understand what branding is.

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