When you walk into a mart to purchase a specific product, you instantly know which out of the many options on the shelf is worth your money. Part of this instinctual knowledge comes from your experience with the product and part of it comes from the popularity of the product.
While experience is something that brands cannot guarantee or predetermine, the popularity of their product and your consequent trust in the product is something that they have complete command over.
How so? Well, it’s all branding!
In case that didn’t ring any bells for you, we’re glad to inform you that this post is just for you. Here, we’ll have a detailed insight into what does branding mean as well as why is branding important. So, let’s dive straight in!
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What does Branding mean?
By definition, it’s a marketing practice that brings about greater recognition of a company and consequently boosts sales. It may sound simple when put forward like this, but in the entrepreneurial world, it is a rather complex term.
One could even call it a complete functioning mechanism of a business or company. That’s chiefly because the process of branding involves the use of several tools and strategies.
If we analyze it from scratch, then branding begins with the creation of a logo or symbol, setting up a name, or formulation of a phrase that distinguishes a business from its competitors. These things collectively form the personality, and hence, the identity of a brand. Thus, helping it stand out from the crowd of competitors.
Note that the term company is not synonymous with the term brand. A company refers to the actual workforce, office-site, and the organization that manufactures the products or provides the services. It is something that you build. On the contrary, a brand is something that depends on consumer perception and expectations.
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Types of Branding
When assessing the strategies used by businessmen over the years, you’ll become stunned by their uniqueness and diversity. You see, the branding of a company can be as unique as the company itself. However, you must have outstanding market evaluation and cognitive skills.
For your ease, we have divided the branding types into 5-fundamental categories.
1. Product Branding
As one of the most popular types, product branding refers to the advertisement and promotion of a particular product. Instead of putting itself first, the company puts forward the product. An example of this is Oreos cookies, where the product is more famous than the manufacturer, i.e., Kraft.
In this branding, one has to consider everything from a product’s colors, design, context, and much more. You need to display the product as the premium one available in the market.
2. Corporate Branding
Unlike products, corporate branding emphasizes the brand’s reputation and name. The branding strategies sell the brand instead of the product. Now, each corporate possesses a unique set of values and policies. You have to make your brand the highlight based on these values. For example, Toyota has a reputation for providing advanced yet affordable cars. Hence, all its vehicles follow this criterion.
3. Service Branding
Some service-based business and companies advertise their brand by promoting their expertise in the niche. These services can be the existing ones, one-time promotional campaigns, or even simple customer service. Spreading awareness about your experience and the quality offered can lure in customers too.
4. Personal Branding
Public figures, social media influencers, and celebrities utilize personal branding to advertise themselves. Although personal branding does not increase the client base, it does bring a lot of fame and popularity. One can use this fame wisely to boost a business or opt for methods, such as merchandise.
5. Geographic Branding
People who associate their business with a geographical location seek to connect with the target audience. By sharing a commonplace, the business can establish an emotional link with the customers and boost sales. At times, incorporating geographical references in the brand helps establish authenticity among prospective clients. An example can be the pizzerias that claim their origination in Italy.
5 Reasons Why is Branding Important
Your company knows what branding means. But there’s still an air of hesitance. You and your workmates are not 100% sure if this is something you should be investing your resources and time in. And if you’re already earning well enough without it, the usefulness of branding becomes even more questionable.
Well, the purpose of listing the following five reasons is to clear this overwhelming air of doubts. Trust us – one thing’s for sure: branding is important. It may not feel so right now, but in the long run, it will benefit you substantially.
How and why? Read the following clauses on the importance of branding to fully understand now.
Increases Business Value
You’re working day and night to meet your set target. And you are doing that well.
However, the drawback here is that, as soon as you stop, you generate nothing. If you take a break from your business for a month or two, other companies would take advantage of your absence and will replace you in no time. By the time you’re back, you will have to work from scratch to build a clientele and get back to the same earning track. The entire scenario would have been different if you worked on your branding as much as you worked on generating daily sales.
Summing up, branding increases the value of your business in the long run. As customers begin recognizing your name in the industry, they will look forward to your products or services, making you the only worthy option out of many. Even if you’re out of the scene for a while, they will remember your name and will most likely search for a temporary alternative only to return to you later. Hence, we can say it gives more leverage in the industry.
Given this, branding also makes your business an asset itself. Should you decide to sell your setup sometime, you will get better compensation if the masses recognize your name.
Leads to Growth
Branding creates opportunities for growth in all aspects, whether it be sales, strategy improvising, or employee skills. With branding, you allow the brand a chance to try and test its limitations.
If you are not branding, you are not putting it on the front shelf for the people to see. Once you do, people will get attracted and will like to try your brand too. Hence, with increased clientele, the business can test its existing workplace policies and enhance them accordingly. As a result, it allows the business to grow.
Builds a Separate Audience
Another important reason why you should focus on branding is that it helps in creating a separate community. It allows you to convey the company’s message to a massive audience and gather people of the same interests in one place. Hence, building a community around the brand.
Also, certain branding strategies, such as geographical branding, are aimed at developing an emotional connection with the audience. This particular link increases the trust of customers in the company. Hence, boosting sales and reputation.
Generate Referrals and Sales
Naturally, when you set up a positive reputation through branding, consumers would like to try out your products or services. And if they are pleased, they may become long-term clients.
Achieving this without branding is quite impractical. That’s because when the masses wouldn’t know about your existence and credibility in the market, how & why would they purchase your product.
Your business would only generate business in the vicinity as people pass by and discover your shop or office. Plus, the ever-growing competition in the market also makes survival and sales without branding quite impossible. About ten other companies are providing the same as you. But only those companies are generating sales that are taking a step forward in introducing themselves to the masses.
Builds Strong Employee Morale
Branding automatically leads to the development of a healthy and productive workplace culture. It’s more of a consequent result of your branding struggles.
A strongly branded company is likely to provide its employees with a well-furnished and branded office. Along with this, when a branded company offers transparency of values to its workforce and duly credits the striving staff, the employees are willing to give their best to work. As a result, there’s an improvement in the productivity and efficiency of the company. Moreover, employees feel proud of associating themselves with well-established names.