The Importance of Branding07/08/2020
Branding, by definition, is a marketing practice in which a company creates a name, symbol or design that is easily identifiable as belonging to the company. This helps to identify a product and distinguish it from other products and services. Branding is important because not only is it what makes a memorable impression on consumers but it allows your customers and clients to know what to expect from your company. It is a way of distinguishing yourself from the competitors and clarifying what it is you offer that makes you the better choice. Your brand is built to be a true representation of who you are as a business, and how you wish to be perceived.
There are many areas that are used to develop a brand including advertising, customer service, promotional merchandise, reputation, and logo. All of these elements work together to create one unique and (hopefully) attention-grabbing professional profile.
Branding is absolutely critical to a business because of the overall impact it makes on your company. Branding can change how people perceive your brand, it can drive new business and increase brand awareness.
- Branding Gets Recognition
The most important reason branding is important to a business is because it is how a company gets recognition and becomes known to the consumers. The logo is the most important element of branding, especially where this factor is concerned, as it is essentially the face of the company.
- Creates Consumer Preference for the Product or Service Behind the Brand
A wide variety of products leads to confusion. One way purchasers manage these issues is by leaning towards brands they know and trust. Genuine and widely known brands are viewed as less risky to buy from. Hence, customers believe that the products from brands that are intensively marketed would always perform better.
- Generates Increased Revenues and Market Share
When a firm does extensive marketing or branding, its revenues and market share increases. This means that the firm can become stronger than it was before. It can use its power to enter new geographical markets, do co-branding and gain new distribution opportunities.
- Helps the Company Survive Temporary Crises
Toyota, a brand with the best quality, has had some genuine product quality issues in 2009, which created a PR nightmare. However, the company has spent numerous years conveying its “quality” image, which has helped the organization oversee the crisis and re-establish trust in their products.
- Expands the Organization’s Estimated Worth
An organization’s physical resources and the number of workers do not contribute much to its market value. What actually matters is the brand’s equity. John Stewart, the previous CEO of Quaker says “If the business splits up and I give you the land, bricks, and cement, and take the goodwill and trademarks, I’d still stand better than you.” The company’s worth shows the importance of branding.
- Keeps New Competition Away
A market segment that is targeted by popular brands is a huge hurdle for most new competitors. If you are the first one to create and target a segment, you will gain tremendous benefits.
- Increases Employee Productivity
When your brand is well-known, people will want to work for you. This opens your company up to the top talent and provides you with the most qualified and skilful employees for your company. Once you have the best people for the job, your company’s productivity level will increase as well.
- Increases Profitability by Commanding a Higher Price
This is one of the most important reasons for the significance of marketing. Clients tend to be more willing to pay a premium for a well-established brand’s product compared to a similar item from a brand that isn’t as well-known.
When you are a huge firm and the biggest customer of your suppliers, they will never want to lose you. You can use this power to insist that quality products are on time and to bargain over prices as well. Often they will take a pay cut just to keep working with your company.
- Helps the Company Attract New Distribution for its Products
A popular brand with known customer loyalty has little issues discovering distribution partners, on a local and global scale. Everyone wants to work with a brand where the client demand and return on investment are high.
When employees work for a well-known brand, they showcase a sense of loyalty and purpose. This means that the employee turnover rate would drop dramatically because employees believe in what their company is doing and are proud of it.
- Makes a Remarkable And Unique Brand Image
A brand goes well past the offering of a tangible product. If your business is unique from the rest, you will attract a market in which your competitors are not able to compete.