The 5 Benefits of Branding in Marketing
- Written by News Co
Branding is the act of creating a symbol, name, or design that an audience can easily understand the company through. Branding can also include logos, colors, mascots, and even customer service that a brand has created to communicate their services and attract customers. When you think of Facebook, do you think of the color blue? When you think of McDonalds, do you envision the gold arches? These associations you may have are actually the branding of the companies. So, what kinds of benefits come with a company branding their business? Let’s look at five ways that branding is important in building a business. Next Thursday takes us through this process:
- Branding communicates the business value.
One of the core reasons why businesses should brand themselves is to communicate with potential customers what the product or service is and what value is being offered. Businesses can do this through verbal and nonverbal communication. The company name, logo, tagline, and imagery are all part of the branding of a business and are the first glimpse a customer has into what is being offered. These elements are all ways in which the business communicates its value to the customer. Branding can inspire and motivate people to buy the products and can even communicate the personality of the business to the customer. Taking advantage of branding is a way to directly communicate to the customer why they should buy from the business and immediately impress the consumer. If the branding of a company falls flat as boring, confusing, or conflicting, this can lose potential customers before they even try the products or services that are being offered.
- Branding sets expectations.
Branding is important because it sets expectations for the products and services that are offered. Have you ever noticed that a lot of chain stores and restaurants have the same exact store layout, design, and menu at each location? This is brand consistency which is crafted purposefully so that the customer knows exactly what they can expect every time. When the customer knows that their experience will be consistent each time they make a purchase they will likely return again knowing exactly what they are going to do, what they want to buy, and how it is going to make them feel. What they have in their mind will be soon followed up perfectly with reality. If this expectation is consistently held up, the customer likely won’t be disappointed with their experiences at this company and will continue to come back if they like the products or services that are being offered.
- Branding builds employee loyalty.
When a company is branded well through meaning, imagery, and purpose, it not only brings benefits to customers but also to the employees that work for the brand. Branding gives an identity and overall significance to the company that workers can feel they are a part of. Depending on what the company does and stands for, branding can bring workers together as a whole to collectively reach a goal or purpose that is bigger than themselves. When a company has a strong brand it can inspire the employees to do better work, help others, make the company more money, and stay working at the company for a longer time. It is also common for people to work for companies that they strongly identify with, and this is hard to do if a business is not branded in a strong way. People are also more often loyal to their company if they believe it has a very high status or positively held public opinion due to its branding.
- Branding makes people remember.
One goal of branding is to make a business easy to remember. When a company or business is branded strongly, it makes it easier for people to recall them as an option when they are considering what products or services to buy. On the other hand, it is hard for anyone to make purchases from brands that they can’t remember. For example, when someone considers where to buy a new table for their home, a set of different stores may immediately come up in their mind as the obvious available options. This is called the “consideration set”. Businesses that are branded are much more likely to come up in this set of options since they are easy and quick to remember. Whatever is thought of first has the highest chance of getting the customer, thus making that business more money.
- Branding increases credibility.
When a business has good branding it helps it establish itself as credible in the eyes of customers, competitors, and within the industry that it is in. This means that customers will take the business at its word, trust that they will uphold their promises, expect that the products and services will be up to par, and will be confident in making purchases through the business. Other businesses in the same industry will perceive the branded business as a more legitimate entity, may feel more comfortable partnering or collaborating with them, and will take the business as a serious competitor within the market. Credibility from good branding also helps customers trust the people that provide services or products through the business. This creates easier and quicker transactions, more positive experiences, and an overall trust in the communication process.
Branding is an important part of creating a great business and should be taken as a serious and ongoing process for both small and big entities that are looking for success. Creating great branding is an excellent way to show consumers the value of a business quickly, set expectations with what people can expect, increase employee loyalty, make people remember the business, and increase the overall credibility of the business. Without branding people will have a hard time remembering what the business is, what it stands for, and what its purpose is, which can be a crucial roadblock if encountered. So before you start on your journey of branding your business, think to yourself, “What is the story and how can I use design to tell that story?”
