What Is Branding?
Branding is the process of generating a distinct brand and image for a product or service in the minds of consumers through continuous advertising campaigns. Branding seeks to develop a large and distinct market presence that attracts and retains loyal customers. It is a method for businesses to distinguish themselves from their competition and leave a lasting impact on their clients.
A brand for a company is like a reputation for a person. You earn a reputation by trying to do hard things well.-Jeff Bezos (Forbes)
Why is Branding Important?
It helps to establish a unique identity and presence in the market, which can help to differentiate a company’s product or service from those of its competitors. This can be particularly important in highly competitive markets where there are many similar products or services available.
branding helps to create a lasting impression in the minds of consumers. By consistently presenting a unique and compelling brand image, companies can establish an emotional connection with their customers, which can lead to increased customer loyalty and repeat business.
branding can help to build trust and credibility with consumers. A strong and well-known brand can give consumers confidence in the quality and reliability of a company’s product or service. This can be especially important for companies that are selling products or services that are new or unfamiliar to consumers.
branding is an essential part of any business’s marketing efforts, as it helps to establish a unique identity and presence in the market, create a lasting impression in the minds of consumers, and build trust and credibility.
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.– Warren Buffett. (Inc)
87% of consumers said consistent branding across all online and traditional platforms was important.
30 Branding glossary
- Brand equity -Brand equity is the commercial value that a brand delivers to a company by influencing the attitudes and behaviours of its stakeholders.
- Brand identity- A name, symbol, or design that distinguishes one product, service, or entity from another is referred to as brand identity.
- Brand image- Brand image is a set of connotations that stakeholders associate with a brand identity.
- Brand promise – the customer value proposition or benefits presented to the customer and/or consumer by the brand.
- Brand purpose – this answers the question of why a brand exists in terms of making a positive effect in people’s lives.
- Brand valuation- Brand valuation is the Net Present Value (NPV) of future cash flows resulting from the brand as an intangible (separable) asset, such as the avoided royalty payments through trademark and associated intellectual property ownership (e.g., brand guidelines).
- Brand value- Brand value is the increased Net Present Value (NPV) of future cash flows resulting from a branded business and product over an unbranded business and product based on the impact on all stakeholders (e.g., customers, employees, suppliers, financiers, channel partners, etc.). In layman’s terms, the value of deploying the brand to management, the bottom line, and shareholders.
- Branding- Branding is the process of generating names, symbols, characters, and slogans that (1) help identify a product and (2) create distinctive positive associations that differentiate it from the competition by (3) creating additional meaning (value) in the minds of consumers.
- Consumer- A consumer is a person or entity who uses a product or service.
- Culture- Culture is the tone and manner in which things are done inside an organisation.
- Customer- A customer is a person or entity who buys goods or services.
- Customer-based brand equity- Customer-based brand equity is defined as “the differential effect of brand knowledge on consumer response to brand marketing” (Keller, Journal of Marketing, 1993).
- Customer/consumer experience – a customer’s or consumer’s overall impression of a company and its products and services over the course of their relationship.
- The mapping of the customer experience across all touchpoints (particularly those “moments-that-matter”) between the customer and/or consumer is referred to as the consumer/customer journey.
- Customer value proposition (CVP) – the total of benefits that a seller promises to a customer in exchange for payment or other value transfer.
- Differentiation – the net value of customer views of a brand, product, or service that distinguishes it from the competitors.
- Employee-based brand equity – Employee-based brand equity is defined as “the value a brand gives to a company as a result of its effects on the attitudes and behaviours of its employees” (Tavassoli, Sorescu & Chandy, Journal of Marketing Research, 2014).
- Employee branding- Employee branding is the process by which employees become aware of, commit to, and are motivated and equipped to provide the promised brand experience to clients and consumers.
- Employee Value Proposition (EVP)- the benefits that an organisation promises in exchange for the talent, experience, and engagement that employees offer to the organisation.
- Employer brand – the image of a company in the minds of potential and present employees as a fantastic place to work.
- Experience- Perceptions of an event, incident, or interaction that leave an impression.
- Intangible asset – a non-physical asset recognised in a company combination such as a patent, trademark, or goodwill.
- Mission statement – a simple written explanation of the current business purpose to provide direction and guide decision-making: what business are we in, i.e., what do we strive to deliver for our customers and other stakeholders?
- Net Present Value (NPV) – the future cash receipts associated with an investment, discounted by a given rate of return.
- Positioning is the strategic intent (goal) or design for a distinct brand image among a specified target demographic.
- Royalties – rent-like payments provided to the legal owner of a brand (or other asset) by people who seek to make use of it, for example, to generate revenue.
- Sales funnel- The visual representation of the customer interaction with a brand, product, or service in the form of an inverted funnel or pyramid, ranging from “customer states” such as awareness, consideration, trial, repeat purchase, adoption (e.g., habit or loyalty), or other sales outcomes such as up-selling and cross-selling.
- Trademark – a distinguishing mark or feature particularly typical of or connected with a person or entity.
- Values – these describe your desired culture and can be “who values,” which describe the organization’s character or spirit, often anchored in its heritage; “what or “end” values, which link to the organisational purpose; and “how or “mean” values, which are a code of behaviour that defines the manner in which the organisation intends to accomplish its aims, the highlighted norms, principles, or common set of beliefs.
- Vision statement- Based on the organisational purposes, a vision statement defines why a firm is doing what it is doing and where a well-executed mission will take them. Best used as a motivating vision of a desirable future state, in order to unify and motivate all stakeholders.
Free Branding Courses- Hubspot Branding Courses, Brand Management: Aligning Business, Brand and Behaviour(Offered By University of London & London Business School).
Products are made in a factory but brands are created in the mind.– Walter Landor
7 Types Of Branding with examples?
- Product Branding- This sort of branding focuses on developing and promoting a certain product’s or product line’s reputation and identity. Product branding frequently entails the creation of a product name, packaging, and marketing efforts aimed to distinguish the product from competitors and foster customer loyalty.
- Corporate Branding- This type of branding is concerned with establishing and promoting a company’s or organization’s reputation and identity. Corporate branding frequently entails the creation of a brand identity, which includes a logo, colour palette, and messaging, and can be used to establish credibility, separate a company from competitors, and promote consumer loyalty.
- Service Branding- This type of branding focuses on developing and promoting a service’s or offering’s reputation and identity. Service branding frequently entails the creation of a service name, branding features, and marketing efforts aimed to distinguish the service from competitors and build client loyalty.
- Personal Branding- This type of branding is concerned with the development and promotion of a personal reputation or identity. Personal branding is especially crucial for those who are self-employed or wish to promote themselves as thought leaders in a certain industry.
- Geographic Branding- This sort of branding focuses on establishing and promoting a certain location’s reputation and identity, such as a city, region, or country. Place branding frequently entails the creation of a place name, branding features, and marketing activities aimed to distinguish the location from competitors and establish favourable connections.
- Cause Branding- This type of branding is concerned with establishing and marketing a specific cause or movement’s reputation and identity. Cause branding frequently entails the creation of a cause name, branding elements, and marketing efforts to raise awareness and support for the cause.
- Event Branding- This branding focuses on establishing and promoting the reputation and identity of a single event or series of events. Event branding frequently entails the creation of an event name, branding elements, and marketing efforts to generate interest and attract attendance.
The elements of brand identity
- Logo: A logo is a graphical element that, along with its logotype (distinctive typography), forms a trademark or business brand. A logo can be an ideogram, symbol, or emblem that represents a brand’s values, mission, or identity.
- brand name: A brand name is a set of words that you use to identify your company and what you offer to the public, therefore separating yourself from your rivals.
- Colour palette: The colours employed in a brand’s visual identity can help to portray its personality and ideals. A colour palette may include a core brand colour as well as multiple secondary colours used in marketing materials.
- Typography: The typefaces employed in a brand’s visual identity can influence its overall appearance and feel. The typography of a brand may consist of a primary typeface and one or more secondary typefaces that are utilised in various marketing materials.
- Imagery: The images and graphics used in a brand’s visual identity can aid in creating a consistent look and feel across all marketing materials. Photographs, illustrations, icons, and other graphic elements may be included in these images.
- The tone of voice: A brand’s communication language and style can help to portray its personality and ideals. The tone of voice of a brand might be official or casual, serious or amusing, and should be consistent throughout all communications.
- Story: The narrative that defines a brand’s purpose, values, and history is known as its story. A well-crafted brand story can assist in forging a stronger bond with customers and stakeholders.