Branding 101: What does it mean and why it is useful?

Are you familiar with the marketing term branding? You are not? Do not worry after reading this short article you will have a basic understanding of what branding is and why it is useful for an individual or a company.

So let’s go straight to the good stuff.

What is the definition of branding?

Although, there are a lot of definitions of branding on the internet. I put here just 2, which are short, but easy to understand.

Branding is the process of creating a strong, positive perception of a company, its products or services in the customer’s mind by combining such elements as logo, design, mission statement, and a consistent theme throughout all marketing communications.

And second definition by author Marty Neumeier.

He says that a brand is not a logo, a product, a promise, or the sum of all the impressions. But a brand is a result.

It’s a customer’s gut feeling about a product, service, or company. It’s not what you say it is, it’s what they (customers) say it is.

Branding helps individuals and businesses to differentiate themselves from competitors and build stronger connections with their target customers.

Basically, it means that branding is a process of creating positive feelings about your product, service, or company.

Although, the company can influence the customers feeling by changing the logo, colors, design, packaging, price, or whatever.

The most important thing will always be what the given customer thinks of your product, service, or the entire company.

Why is branding useful for a company?

The main reason why you should consider branding is that it can help you differentiate from the competition and create stronger connections with your target customers.

Other reasons can also be:

1.     Brand awareness

Having a strong company brand can make you more known and recognizable to your potential customers.

Think about how many companies you know just by their logos.

2.     Trust and loyalty

Well-known brand is considered in the eyes of customers as better and more trustworthy. And that is why the biggest brands tend to maintain a consistent image across all platforms, from website, social media, packaging, or paid ads. Making customers more likely to choose their brand over others.

3.     Value and reputation

Also products from a well-established brand are considered as higher quality items. And that is why customers tend to pay more money for their products and services. A good brand can also attract more referrals and WOM (word-of-mouth marketing).

4.     New talents

Furthermore, strong brands can attract and retain top talent in the industry. These employees, in turn, can improve the brand’s overall reputation.

As you can see, branding is not just about having a nice logo or slogan. It is much more. It is about creating a stronger connection with the customers.

Branding can elicit an emotional response that goes beyond the transaction.