A Brief Introduction to Branding and 4 Reasons Why It is Good for Your Business
As we can see clearly, the word “Branding” is closely similar to the word “Brand”. According to Oxford Dictionary, Brand is a type of product manufactured by a particular company under a particular name, while Branding is the promotion of the product or company by means of advertising and distinctive design. Through these definitions, we can conclude that both words are in fact related as Brand is the result of the practice of Branding.
Oxford Dictionary also defines Branding as the action of marking with a branding iron. Looking back in time, Branding was actually a practice of marking livestock such as cattle or horses with a heated iron as a sign of ownership. Branding iron itself is a piece of metal stick with a shape on its end. Most of the shapes used back then were either a combination of alphabet, numerical, or obscure symbols that were designed by the owner in order to easily differentiate their livestock with others. The increasing number of livestock owners was one of the reasons why people use this method.
The practice of branding evolves as time goes by. Presently, we are in the era of entrepreneurship. The number of businesses and companies is growing. Hence, we associate branding with business and marketing strategy. We recognized branding as a process of creating or finding the personality of a business; it’s almost like a self-discovery journey, done through research and exploration of your business idea as well as its value and also its objectives or goals, the finding will then developed into the identity of your business which forms as its name, logo, tagline, color, websites, and everything else that represents your business personality. Just like how the framers designed the shape of their branding iron back then.
Going by its definition and aims, we can say that branding is one of the most important processes in the earlier stage of a business yet what exactly are the advantages that makes it good and important for a business? Let’s reveal them down below.
1. Improve Brand Awareness and Recognition.
Recognition and awareness are two of several aspects that indicate the success of your brand. These two are basically related to each other, brand recognition is a component of brand awareness. Both focus on the customers’ knowledge of a brand. Well executed branding process is the key to achieve the improvement of recognition and awareness from your targeted customers. Why?
Well, as previously mentioned, branding is the earliest process that you will undertake in building a business; it involves research, development, and creation of the brand identity. This process is ultimately necessary because it is the time when identity such as name, logo, personal color, and tagline are created. These elements are things that will help your targeted customers know you better. Hence, choosing a good, unique, and meaningful name, color, tagline, and also designing a masterpiece logo is the sign of a good branding process. This will lead to the improvement of customers’ knowledge and customers’ ability in recognizing your brand.
2. Help Establish and Develop Brand-Customers Bond.
Your effort in gaining recognition will go to waste if you don’t continue by developing a strong relationship between your brand and your customers. Yes, recognition is not enough. It’s incomplete without the attachment. So, how can one develop a solid brand-customers bond?
Again, the answer is no other than branding. Customer experience is one of the important aspects in brand marketing. Yes, marketing is also part of the branding process. By collecting and analyzing the experiences of your customer, you will know their feedback. The analysis of their feedback and the realization of their needs and demands are the manifestation of bonding. Without you even realizing, you have listened, interacted, and prioritized your customers.
3. Attract New Customers, Talents, and Stakeholders.
A successful implementation of branding will guide your brand into its fame. People will immediately recognize your brand just by the name and logo. You don’t need extra effort to introduce it to potential customers anymore. They just know it and they keep coming. Other than that, you will also get recognition from talents and stakeholders. Seeing how your brand has managed to stay with its personality throughout its journey and how great your brand reputation is, they become eager to work with you.
4. Increase Business Value.
Your customers’ loyalty, your business partners’ trust, and your employees’ commitment are part of the value of your business. They show how worth your business is. Good branding throughout the business journey will result in the increasing of the value. As the value increases, your reputation will also improve. It will be easy for you to expand your business.