Author Bio:- Harry James is a freelance blogger and a professional content writer. He love’s to write on any niche, currently working as a content analyst at Timac Inc.
Whether you are selling coffee, industrial parts or clothing branding is a must-have ingredient for success and growth of your organization. There is a common misconception that branding is all about logo and slogan, but it is much more than that.
You cannot overstate the importance of branding, beyond logo it creates your identity, help customers to recognize you, increases value and provide direction and motivation to your employees. It is the symbol of happiness, comfort, loyalty to create lasting impression on your customers.
It is the bit overwhelming to understand what exactly is included in branding. By definition, it is a blueprint for your business and the way your customer perceives you.
Branding can be a bewildering challenge for almost all marketing managers because they don’t completely understand the strategic benefits of authentic branding. They assume that branding confined to name, logo and proprietary graphics and most certainly they don’t realize the full potential for applying core branding principles to improve marketing and communication practices. Before walking through the brand development process read this article and knows some exciting yet valuable insights of branding.
1. Branding Provides a Competitive Advantage
In this highly competitive global business environment, is it essential for you to outshine and stand out of the crowd? Obviously yes!
Either it is a profit or non-profit organization, all have to compete for resources funding, talent, and audience attention. The emergence of Internet and technology added more fuel to the fire and made competition more intense than ever before. Shortly you not only have to compete on local grounds but you would be fighting in a global village. The only way to win your category is to start building branding.
2. Brands Provide a Stable Asset
Technologies evolve, products get failed, companies vanish as a result of merger and acquisition but strong brands carry on through all these changes. Brands are considered to be most substantial and most sustainable asset of an organization. If it is appropriately aligned with an overall strategy, it can function as a central part of decision making. Take the example of Coca-Cola doing its rounds well for almost 120 years while most of the other valued brand has the lifespan of 50 years and most corporations all over the world last only 25 years. Branding is the customer experience, it is a name attached to your company, it is your identity, or in short, it is your valuable intangible but stable assets which help you to be in the market for years.
3. Strong Brand Adds Value
A prosperous and robust brand adds value
The overall corporate value of intangible assets has increased from 17% to 80%. Business week magazine concluded that brands account for more than one-third of the shareholder value. Let’s take the example of Facebook, Apple, Coca-Cola their brand name worth more than their premises equipment or products. Coca-cola brand name alone worth $67 million, it accounts for more than a stock market value of the organization.
Brands add value much more than the physical value because brands play the central role in attracting employees, partners, and most importantly audience. Trademarks are the only asset which helps organizations to cut through the clutter of marketplace, create awareness for the teams and support them in attracting and developing the mutually beneficial relationship with customers, suppliers and the public.
4. Brands Set Expectations
Our world is based on promises. The airline mechanic promise to do a thorough job of checking and rechecking the aircraft to make sure that the journey is safe. Restaurants promise to deliver fresh, hygienic food, even our teachers’ promises to educate. Most of the time there are legal repercussions that bind people to fulfill their obligations but most of the time maintain pledges and vows due to their own moral and ethical code. In our world, there is an unspoken contract between people working and living together that they will do what they are saying to do. Same is true in case of companies, products, services, and brands. Particularly brands set the standards for customer expectations.
A consistent and robust branding allows customers to know exactly what they have to expect each time when they encounter brand. Branding is a professional appearance to build credibility and trust among people because people like to purchase from legitimate sources. Your brand is your promise to a customer it’s a spoken contract that spoke louder than words.
5. Strong branding Generate Referrals
People love to share experiences. They love to communicate about the things they like and the products they use to maintain the status quo, to build self-image or just to let another know about their preferences and choices. In any case, high branding can create referrals or viral traffic to your business. People eat, listen and wear brands they continuously communicate with the brands they like most. In fact, according to research, almost 84% consumers suggest they always or sometimes purchase based on personal recommendations.
Imagine a customer fall in love with a particular product or brand, but when he comes out to recommend it to a friend he forgot the brand name, this is why high branding is an essential ingredient of your business, as it creates word of mouth among people and markets to generate your lasting impression.
6. Branding Generates New Revenue
When it comes to generating referral and word of mouth, nothing can beat the effectiveness of branding. No doubt branding is one of the most effective marketing because your logo, marketing, and reputation work cohesively to form your incredible impression on consumer minds. It attracts customers and makes them loyal to your brand for a more extended period.
Most profitable companies either they are big or small have one thing in common. They have established themselves as market leaders in their respective field by building the firm brand. Word of mouth and referral generation is most profitable and promising sources of advertisement which can increase the number of customers visiting your store. Strong brand by creating referrals increase number of customers and create a continuous stream of revenue for an organization.
7. Branding Supports Your Marketing Efforts
Branding is all about telling others who you are? And marketing is building awareness. In broader sense marketing is an essential component of branding. The medium and channel you have selected to spread knowledge as well as demographics which you are targeting help others to build your brand. Too narrow marketing focus means you will risk being pigeonholed and you will lose your ability to expand in new markets. Too broad marketing focus leads to an inability to create a definite impression of your company among consumers. Therefore, careful planning is important for the successful execution of marketing strategies.
8. Branding Motivates Employees
Strong brands hire motivated employees that have an inspiration to carry forward the mission and vision of the organization. Same is the case right in case of employees. When brands feel pride, employee morale and productivity would be high.
Most of the time employees need more than work they need some motivation and inspiration to work towards. The brand is the only asset which can help you make your employees gain valuable insights about the mission and vision of your organization and make them feel pride and feel in the same direction for the achievement of organizational goals and objectives.
9. Branding Promotes Recognition
Effective branding promotes recognition of the business. Consistent, easy to recognize brand help you to make others feel more at ease purchasing from you. People adhere to familiarity. If your brand is successful in finding the soft corner of the heart and minds of the consumer as quality provider, then get ready for the repeat purchase.
A significant component of your brand is a logo. How instantly we recognize the golden arches of McDonald’s or simple yet powerful eagle of the USPS. The logo is the face of the company; therefore, logo design is critical. This simple graphic will represent your company on every piece of correspondence and advertising. So put time and some effort to come up with professionally designed great logos.
10. Branding Creates Trust
Professional appearance of your brand will build credibility and trust among consumer. We all want to purchase from the sources that are polished and legitimate. Our brain is hardwired with emotional reactions, and these responses are the real influencers to trust a brand. Other than trust, people connect with the name emotionally; they feel good when they purchase their favorite brand.
At the heart of branding is the promise which organization makes to their audience. The brand promise communicates about you, your beliefs, and your unique value which you are providing but the ability to fulfill those pledges at each stage of the relationship is a defining factor for success or failure of a company.
The reasons as mentioned above suggest branding is essential than ever before, but you cannot manifest a good brand overnight. Strong branding is the result of meticulous planning, development, and growth. It requires time, efforts and energies more than monetary investment and this is the why many startups and small companies neglect it without realizing its impact.