Today, the market is full of countless companies selling a similar generic product. This has led to the increased importance of branding in business.
The customer today buys the brand. He chooses the product with the brand he is most familiar with or which has been successful in getting his attention through its communication. And if he likes the product, he knows which brand to choose the next time he goes shopping.
The role of branding has changed over time. Earlier it was used to differentiate the product from others in the market. But today, branding not only differentiates the product from others, but it also adds a set of personality traits to the product and automatically positions it in the market according to what position its brand occupies in the minds of the target audience.
Why Is Branding Important?
One cannot ignore the advantages of branding as it has an overall positive impact on a company. It changes how the target market perceives the product, gives it a recognisable identity, helps in driving new business, and compliments the marketing strategies.
Here are a few of the reasons why branding is important for a business –
Gives An Identity To The Product
The main purpose of branding is to name the product, assign it attributes (logo, colours, voice, etc.), and develop a personality that has a distinct identity. Branding transforms a generic product into something that is recognisable and easily memorable.
Differentiates The Product From The Competition
Different brands have different identities. Branding helps in differentiating the product from the rest and position it in a way the company wants. This is done by developing a distinct outlook by working on brand identity, brand message, and brand tonality.
Since branding assigns recognisable attributes to the product, it increases its recall. It adds the ability to assign an experience or characteristic to the brand before and after the sale has taken place.
Since a brand assigns a recognisable identity to the product, it increases the customer’s trust in it as they now can identify whom to blame or promote according to their experience with it.
Branding increases the trust as the customers get an identity to sue if the promises are not fulfilled.
Increases The Overall Market Value
The brand has its own value as a separate asset (called brand equity). Brand equity is the increased in the value of a product just because a brand name is associated with it.
Moreover, a brand can be sold as a separate asset too.
Attracts New Customers
A strong brand attracts more customers like a magnet. Strong branding means there is a positive impression of the company in the minds of the customers. This triggers voluntary referrals through word of mouth and viral marketing.
Boosts Employees Trust And Satisfaction
When employees work with a renowned brand, their satisfaction increases and they are more motivated to work hard.
Working for a reputable brand gives them surety of good salary, recognition, and better opportunities in future.
Support The Marketing Strategies
Referral marketing, influencer marketing, affiliate marketing and even advertising strategies only succeed if they are complemented with an identifiable brand.
Marketing strategies require an identity to promote and the brand is what gives an identity to the product.
Helps The Business To Expand
A reputable brand can be expanded easily and new products can be added in the product mix of the same brand. This gives a kickstart to the marketing and sales of new products as they receive the goodwill of the existing brand.
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A startup consultant, a dreamer, a traveller, and a philomath. Aashish has worked with over a 100 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.