What is branding in business?
The first thing you should understand is that branding does not exactly have to do with the logo, name, trademark or any other symbol of your company. Moreover, it cannot exist within the department of marketing only. I would say that all of these are nothing more than just components of brand development strategy but not the only things affecting it.
So, what is branding actually? Commonly, it is focused on the creation of awareness for a company, as well as the products or services it provides customers. In other words, branding contributes to the creation of the brand's image in your customers' minds.
Well, if not a slogan or logo then what helps customers form this image? That's the reasonable question with a little-blurred answer. In short, your brand's image depends on the total amount of all the impressions your customers get when interacting with anything connected with your business.
This way, the impressions the customers get can be based on a bunch of factors such as interaction with your product, the company or you personally. The last point is actually the reason why entrepreneurs all over the world start blogging and being interviewed actively. They are developing personal brand that way and to be closer to their target audience at the same time.
Each interaction tells customers something about your brand. So, if they're convinced a product or a service is advanced and innovative those traits become a part of your brand in their minds. Let's say that if you have a beautiful and easy to use e-commerce website, your brand may be perceived as experienced or even world-class. In contrast, if your design is poor and inconvenient you may look cheap and amateurish for your customers.
A few words about the design importance (Source: Kinesis)
Importance of branding to an organization
Nowadays, it is hard to underestimate the influence of a robust brand since the fight for customers is getting more intense each year. So, you should pay attention to brand building strategy since this process leads to a better understanding of business objectives, as well as allows you to align your marketing strategy.
Efficient brand marketing is able to generate new loyal customers along with increased revenue. Except for customer loyalty, it also brings loyal employees since a strong brand gives people something to believe in. Nevertheless, the brand effectivity can be measured not only by the number of purchases but the experience it provides customers with as well.
Let's consider the example of Coca-Cola and Pepsi as confirmation that shows the real power of branding, as well as how to create brand awareness correctly. In 1975, the marketers from Pepsi conducted a curious campaign. They proposed to people in various public places drink two sips of cola from cups that were not marked. After, they were asked which drink they liked most of all. Almost everyone has chosen the cup with Pepsi inside, so the winner was obvious.
The thing is that despite the fact consumers considered Pepsi to be better, Coca-Cola was dominating over Pepsi in market share. So does now, over 40 years after this campaign.
Scholars decided to study physiological reasons on why that choice was made by consumers. Without going into medical details, they conducted their tests with the help of a machine, tracking brain activity.
At first, they were sticking to the original conditions - participants had no idea what they were drinking. The outcomes were exactly the same as after the campaign in 1975 - they liked Pepsi more but now it was proven by the machine.
On the next stage of their research, scientists told participants what exactly they were going to drink. Then, the machine defined that Coke was the winner. As it turned out, drinking the known beverage our brain does not evaluate the taste itself, but memories and experience connected with a particular brand. Scientists pointed out that was the consequences of branding.
Interesting, huh? That is one of the best brand stories showing the importance of branding and it seems like several new reasons to start thinking through your branding strategy. By the way, this example of brand power is applicable to any sphere, be it the digital industry with its mobile apps and games or even farming with its foodstuff.
Emotions that drive customers to purchase (Source: SMITH)
More in full article - Brand Development Strategy
