You have often seen people paying thousands of dollars just to get a minimalistic logo designed by a professional. You have wondered why, and what made that logo as simple as Nike’s famous tick so special, or worthy of so much expenditure. The answer to your thoughts is simple i.e. because branding is important.
Branding is basically how your brand (or your products and services) are identified as unique using design and other elements, like a logo, for example. By spending the right amount on branding and not going for the ‘cheap’ branding options, you can make your brand identity stronger in the market to be easily recognizable by the customer. This more established your brand image becomes, the more chances you have to get ahead of your competitors.
However, competitors and brand recognition are not the only reasons why a business would spend so much on branding – there are several reasons why branding is as important as other major activities of a business. Read on to understand what reasons make branding a necessity these days:
Your brand is the sum total of your customers’ perceptions, notions and experience. It is the face, personality and the values espoused by your business – and everything in between. Entrepreneur
Reasons Why Your Business Needs Good Branding:
Branding identifies You:
If people do not recognizhttps://www.brandsdesign.com/portfolio#stationery-design-8e your brand uniquely, do you really have any business going on at all? Obviously, who and what your brand is is reflected by your branding. If your branding is done poorly, people will not really be able to remember, identify, or recognize your brand among others in a market. While you obviously know how important creating your business’s identity is (if you don’t know, search it up; to summarize, the main purpose of establishing brand identity is to separate you from other businesses and to allow customers to know you when they want to buy your product), having a reputed brand allows you to enjoy selling at higher prices as well. For example, if Apple launched a newer, more expensive iPhone model today, people would still buy it because it is an established and reputed brand – that is brand equity.
Branding tells people why you are in the market:
When you are serious about your business and branding, people will know that you mean serious business. By establishing a proper brand identity following the most effective branding guidelines, your intention to stay in the market as an official entity will become stronger. For example, if you are conducting an online business through a Facebook page and are selling products using just your name and no branding, people will be reluctant to pay you a good amount or trust you enough to buy your product. On the other hand, running that same business under a branding name will tell people that you are a business, not just a person, and are reliable in terms of servicing.
Branding improves your competitiveness:
Since the world has turned into a ‘global village’, there are many more opportunities and just as many threats for businesses, especially newer businesses. While you can now use digital marketing and e-commerce technology to cater a global audience and have indefinite growth opportunities, this has also introduced barriers to growth like increased competition. The more prominently you brand your business, the better chances you stand to bag your market’s attention. Similarly, bad branding can just send your brand into a crowd of unrecognized businesses that ultimately fall prey to competitors.
Branding increases your profits:
While many people and businesses perceive branding as an expense, it is actually a very effective element to increase your profits. There are several ways in which branding can help you increase profits. The first reason is that people recognize your brand which makes brand loyalty an easier approach and makes word of mouth promotion more likely. Both of these factors result in increased sales, hence, increased profits for the business. More ways in which branding can help increase the profits on your financial statements are by making you appear more reliable to your customers, or by having attractive branding design or copy elements to attract attention.
Branding can appeal to emotions:
Many research studies have worked on gathering data on consumer behavior patterns, and it has been found that many customers make their buying decisions based on emotive appeal of a brand. If a brand connects to the customers using a common interest like patriotism or ethical concerns, the customer feels more inclined to make the purchase. Similarly, branding can set your business’s ‘emotive appeal’. For example, Body Shop appeals especially to those customers who are concerned about healthy environment, ethical manufacturing, and purer products, which is why they brand themselves as an environment-friendly, healthy, and care-taking brand.
These 5 reasons are only some of the many reasons why branding in marketing is such an important process. Better branding leads to better business.