Branding your business allows your customers to know exactly where to find your products and the level of quality they can expect from you. Additionally, the importance of branding is that it attracts investors. Your potential investors are much more likely to invest in a well-known brand. Your investors will consider it a guarantee that their money is being used by a well-known business, reducing the risk of investment.
What is Branding?
Traditionally, branding your business would involve creating a name and logo for your company that is easily identifiable by customers. Your customers will be able to identify your products and distinguish them from the competitors.
The first step of branding involved designing and creating a logo. Then, you begin advertising your brand to let customers know where to find it. Next, you would work on improving your brand image.
Your positive brand image can be established by setting up customer service and promoting your products. Essentially, the importance of branding is that it introduces your products to customers and allows them to recognize and represent your business.
That not only builds on customer loyalty but also allows you to benefit from the added value of your brand which increases your profits and establishes your business’s market share.
What Is the Importance of Branding?
Every business that you can recall off the top of your head is the products of their branding efforts. Branding not only ensures that people see advertisements for your business but it works to establish your products as the definitive solution (regardless of the competition). Here are some of the benefits you should expect to see once you have started establishing your brand.
A) Establishing your business in existing markets
Your marketing efforts are usually aimed at strengthening your company’s position in the market. The importance of branding comes from the fact that you can use it to establish your business in its current markets. Your potential customers will be much more willing to try out your products once after they become familiar with your brand.
This gives you an edge over the competition where customers might even be willing to purchase your product even if it comes at a higher cost. Additionally, your existing customers will be much more likely to recommend your products to people they know. That is because a well-established brand tends to have a consistent quality which gives users much more confidence in their recommendations.
B) Higher profits through Added Value
In addition to your strong brand being the ultimate form of word of mouth advertising, having a strong brand allows you to benefit from added value. This basically means that your customers will be much more accepting of your higher prices since your branding assures them that they are receiving high-quality products.
It has been established that customers are much more likely to pay more for a name-brand simply because they know that the company offers great added value services in the form of customer support, quality guarantees and the simple fact that the company has a reputation to maintain. That is why companies like Apple are currently sitting at a comfortable 15.8% of the mobile market share while still making customers pay higher prices than the competition.
C) More Investors
Furthermore, your strong brand is very attractive to investors since a well-known brand is expected to produce consistent sales. This significantly lowers their investment risk. Simply put, a well-known brand is much less likely to fail since it is already well established in the market.
This means that it is often a safe investment since a branded company is unlikely to introduce any major changes that might otherwise affect the consumer buying decision. This makes your business very desirable in the eye of investors once you have established your brand.
D) Expansion Potential
In today’s highly globalized market, every business eventually aims to expand beyond their starting country. Having a well-established brand in your original country will allow you to much easily introduce your products into new markets. Thanks to the internet, your new market might already be familiar with your business through the many discussions your existing customers are having about your products or branding.
What is the Importance of Branding Attributes?
Now that you’re familiar with the importance of branding, let’s look at the various brand attributes that affect your business’s overall brand.
Accessibility is one of the core attributes owing to the importance of branding. You can expect any strong brand to be available everywhere. Which also means that your products are available for customers to purchase at their own convenience.
Traditionally, You could achieve that by having various deals with distributors in order to ensure that your product is available in all retail stores. Thankfully, the digital age has made it much easier for your brand to be easily accessible.
By setting up a digital store, you can allow your customers to purchase your products from the convenience of their own home. This reflects positively on your brand as it shows customers that you’ve put in an effort to make your business accessible to them.
Your customers expect your business to cater to their needs. That means that your customers expect your brand to always be relevant.
In order to remain relevant, your business needs to keep up with all the latest trends and alter your products accordingly. When it comes to the customer’s buying decision, a relevant brand is much more likely to be chosen as it shows that your business cares about customer needs.
A consistent brand is one that you know what to expect from it. In terms of quality, a consistent brand creates products of reliable quality that the customer can be confident in repurchasing.
Additionally, when the customer believes in the consistency of your brand, they’ll be much more confident in recommending it to others. This acts as “word-of-mouth” advertising for your company which is arguably one of the best ways to spread your brand image and establish it.
Thanks to many environmental campaigns, we have become much more aware of our impact on the environment. Consequently, customers have become much more interested in “green” businesses which are more friendly towards the environment.
Your choice to go “green” will not only help the environment, but it will also create a unique selling point for your business. Many customers say that they will choose a “green” product over the alternative even if its new to them.
Every business has a responsibility towards the environment. When you aim for sustainability, you not only fulfil your obligations towards the planet, but you also let your customers know that your products are here to stay.
A successful business stays ahead of the competition. You can achieve innovation by making your own trends instead of following others. Innovation ensures that your business is always ahead which makes your business stand out in the eyes of the customers.
You can create a strong brand for your company by being known for your innovation. You have probably heard of companies like Apple which are known for always staying ahead of the competition. Unlike other companies, Apple creates products that create a need in customers instead of settling for satisfying the customer’s existing needs.
6- Niche Appeal
When considering creating a brand for your business, you might find it appealing to embrace your niche in marketing your brand. A niche is a specific interest that your business caters to.
You can create your brand around your product’s niche in order to show your customers that you are fully devoted to them. Eventually, you can expect all individuals interested in that niche to regard you as the go-to standard for that niche.
Your brand can only be as strong as the number of people that recognize it. When it comes to your brand recognition, your placement of advertisements and marketing campaigns can make or break your brand. A big part of your brand build will involve deciding on where to place your advertisements in order to attract your target audience.
Generally, when it comes to digital marketing, you’ll find that advertising on websites where your target audience is commonly found is the best option. This includes social media pages, forums or even through influencers sharing your target audience.
The Importance of Branding: Success Stories
There are many examples of business that achieved their success through the proper establishment of their brand. These businesses were able to establish themselves as leaders in their relevant fields.
Here are some popular success stories that will surely motivate you to begin establishing your very own brand.
An app that was initially marketed towards travellers looking for a temporary place to stay while they travel became a huge success when they rebranded themselves. They rebranded themselves as an app that allows you to find a “home” and focused more on the benefits they provide to every local community.
You have probably heard about the backlash they received from local communities. They felt that Airbnb was supporting predatory homeowners that would buy multiple houses just to rent to travellers. This had caused a significant rise in local house prices due to the decrease in the availability of houses.
Their focus shifted towards reassuring local communities that they exist to make their towns more welcome to travellers. They showed them that the app made their towns more accessible. This not only drives more visitors and business, but it will also benefit the community instead of taking away from them.
Now, let us look closely at how they found their branding and how it allowed them to become the market leaders that they currently are.
A) Better Late Than Never
The company had been running for almost 6 years before they finally found their branding. This shows that branding is always relevant no matter how long your business has been going, it is never too late to find and start working on your brand.
Airbnb interviewed their hosts in order to learn from their experiences, they used that information to create stories that they published as content. That content showed the world that Airbnb is an inclusive community that helps both travellers and renters meet and learn about each other’s cultures.
B) Content Is Your Friend
Once they have acquired enough stories, Airbnb decided to publish their “Airbnb citizen” series. These are stories from hosts and users of Airbnb. This serves to not only promote their service but also shows that they are a positive influence on local communities.
C) Visualize Your Story
Once they had a good idea of their brand, it was time to create a logo that accurately represents that. The logo you currently see is called the Bélo. The genius of this simplistic logo is that it has room for interpretation. And Airbnb has fully embraced that.
They encourage their users to add their own twist to the logo. Much likes houses, the person’s touch is what allows it to become a home. That is why many users take pride in customizing that logo and making themselves at home.
This is precisely why Airbnb has gained much success throughout the year. They started as a simple app that allowed people to find a place to stay. Through branding, they became a community based on sharing culture and experiences. They have not only earned the love of their users, but also the support of everyone.
The importance of branding comes from the incredible benefits it provides for your company. By establishing your brand, you make it much easier for your customers to find you. This also makes it much easier to target your audience.
Additionally, the importance of branding comes from its ability to build a reputable name for your company. One that your customers trust and can confidently recommend to their friends. This is perhaps one of the best ways to get your business out there.
You will also see the importance of branding when you have decided to expand out of your local market. You will find that many customers are already excited about trying out your products.
In this digital age, it has become very easy for you to start working on your brand. Starting from creating an online presence through making your own website, establishing your social media presence and then creating content to engage both existing and potential customers.
The importance of branding has made it one of the integral parts of any digital marketing effort. And soon enough, you will see the benefits for yourself. If you’d like to learn more, be sure to check our guide on brand building.