4.01 – Recognising What Branding Is & What It Does For You
Understanding the Importance of Branding
You might think that branding is reserved for giants like Coca-Cola or Nike, but branding is crucial for businesses of all sizes. It isn’t just about having a large budget or a global market. Branding involves developing and consistently communicating a set of positive characteristics that consumers associate with your name. When these characteristics meet a need that customers have been trying to fill, your business can reach its sales goals more easily.
Recognising What Brands Are & What They Do
Consider the following facts about what brands are and aren’t:
- A brand is a set of beliefs. It’s a promise that customers believe.
- A brand isn’t just a logo. A logo is a symbol that identifies a brand. When people see your logo or hear your name, a set of images arises that defines your brand in their minds.
Your brand is essentially the mental image your target audience has when they encounter your name or logo. This image is shaped by every impression they have, whether good or bad, true or false. By making consistent and positive impressions, you’re building your brand.
Even basic elements like your street or online address contribute to your brand perception. Customers, prospective customers, job applicants, reporters, bankers, suppliers, and others form impressions based on every interaction with your business. These impressions collectively create your brand image.
Unlocking the Power and Value of a Brand
Branding simplifies the selling process because people prefer to buy from those they know and trust. A strong brand conveys that promise and builds trust.
With a well-managed brand, your business is already familiar to potential customers, allowing you to spend more time making sales rather than introductions. Here are three ways brands fuel success:
- Name Awareness: Sets your business apart from competitors.
- Consumer Selection: People prefer brands they have heard of and trust.
- Profitability: Trusted brands can command premium prices.
Brands enhance the likelihood of business success, making them invaluable in a competitive market where many businesses fail early.
Tipping the Balance Online
Without a brand, you must establish credibility before every sale. This is challenging both in person and online. Brands are essential for different reasons depending on whether your sales are primarily online or offline:
- Online Sales: Brands provide credibility. Customers buy online based on the confidence they have in the brands they recognize.
- Offline Sales: Brands aid findability. Even offline businesses need to be prominent and credible online. Chris Anderson, author of “The Long Tail,” says, “Your brand is what Google says it is.” If customers can’t find you online, they may conclude that your business isn’t significant.
Branding is essential for facilitating sales and driving success, regardless of whether your transactions occur online or on Main Street
