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Why is Branding So Important in Today’s Growing Marketplace?

Before we begin talking about why branding is so important for businesses today, let’s start with the basics and discuss what branding actually is.

At a very base level, brand is what helps consumers to recognise and remember a company: the logo, slogan, colour scheme and advertising. These are the elements that help consumers differentiate one company from another. However, is it really as simple as that? Are there any other ways in which consumers could remember a certain brand?

Well, yes. Humans have the ability to not only remember things, but also to link emotions and feelings with experiences. This can be a very important way for branding to work. If you enjoyed an experience with a company, you are more likely to remember and use their services again in the future. This is true, even if this wasn’t so effective. This can also work with negative emotions however, so brands can easily destroy their own reputation by causing negative emotions with their customers with bad experiences.

So, to the question: “Why is branding important?”

You have your products/services, you run a competitive pricing structure and are leading the market in your field. So, why is branding still important to you? If you are performing well as a business, that should be enough to be successful. But it isn’t.

Today, the world seems to be moving more to the idea of visuals within marketing. People care about the product, of course, but the marketing can be vitally important. Innovative or visually interesting branding can excite the brain and offer something interesting and worthy of a second look. It has become more than just letting the consumer know who you are. It’s about making a lasting impression.

Why is Branding Important to Consumers/Customers?

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Do you think that todays marketplace is flooded with small-scale brands and multiple businesses that blend in with each other? Brand can help the consumer differentiate between products and services and help them to make smart decisions.

Positive buying experiences by the customer will lead to a feeling of trust and seeing the business as more credible. This may then lead to positive buying behaviour and using the business more often. People who had a pleasant buying experience and are satisfied are likely to view the products they received as of higher value. This puts the business in high regard as they seem to offer better value for money.

The brand of a company is like its profileand the marketplace is like a dating site. Customers walking past are more likely to be interested in the business that have attractive branding that appeals to them. With so many new businesses opening every day, it’s even more important for the companies to distinguish themselves and to entice customers in. After the first shopping experience, a customer is more likely to shop there again. The issue however, is how do you entice them into the shop the first time around?

The branding needs to communicate the style of shop it is: professional or casual, expensive or cheap. It also should be memorable, with brighter colours or interesting designs. Simple fonts or lettering are less likely to be remembered and will blend in to the crowd. Lastly it should be enticing, looking fun or high-quality, to bring users in for their first experience and to help start building brand loyalty.

Few Successful Examples from the Industry

Google is a prime example of both brand loyalty and memorable branding. Millions of people use Googles search engine every day and the brand visuals are memorable yet simple. Google has created a monopoly on interest. Name something you don’t know much about and the first answer you will get is to ‘Google it’. Having your business become a verb is one of the most successful possible results of branding.

Branding has a big impact on psychology of the user. Let’s use the example of the Indian Tobacco Company (ITC). As the same suggests, the company is primality a tobacco manufacturing company. Later, however, the company expanded to making biscuits, noodles and notepads. The idea of a tobacco company manufacturing biscuits may be too strange for users however. They may not feel comfortable buying food from a company that they associate with tobacco. This stresses the point that a company’s branding can cause negative impacts if handled incorrectly. If you sell multiple items, ensure that your company will be associated with them all equally, or to create separate branding for them all. Unless you’re big, however, and can successfully brand lighters, pens and disposable razors all with the same name.

Why Branding is Important for small-scale businesses

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Branding is the identity of a business. Most of the time, small-scale businesses do not realise its importance  because they see branding as only for big business. This false perception limits the potential of the company or product which operates at a small level.  A simple definition of branding is: “the promotion of a particular product or company by means of advertising and distinctive design.”The importance of branding cannot be denied in today’s super-fast world of marketing. Customers may not remember the logo or slogan of your company, but they will always remember their experience with your brand. For this reason, small companies are focusing on building relationships with their customers which can give their brand an identity.

Having said that, marketing and branding are still essential as the competition to provide the best service they can to customers is increasing day-by-day. No matter what size the business is, branding is still important. There are many reasons why branding is also important for small-scale businesses.

Importance of Branding For Small-Scale Businesses

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The Brand name or logo represents what the company stands for. It represent the values of the company. After a time, it becomes easy for the customer to identify the product or service with the brand name (Think Apple and iPhone)

Social Media is huge and offers so many ways to get your message out there. Using the right branding, it can be seen by thousands of people.

Branding correctly also increases the level of trust in your company. Users have a good experience and associate that with your business. However, if they remember the branding, they will start to associate the feelings with the branding itself.

With so many big businesses out there, it can be hard to stand out and distinguish yourself. By utilising branding correctly, you can start to be noticed and remembered and build your audience. With bad branding, you will be noticed less and it will be harder to stand out.

A brand identity can give you a sense of self-satisfaction and pride in what you do and what you represent as a business. It helps motivates the employees to have a sense of belonging.

In a Nutshell…

Think about McDonalds, KFC or Cadbury. Why do so many people buy from these companies without thinking about it. Because they have a sense of belonging with them; their branding and slogans help them to stand out from the crowd and they have positive past experiences with these brands, leading to an emotional connection to them.

Branding is everything. It sums up what a business is about. It not only helps in acquiring new customers, it gives your business an identity and generates revenue for your business. Make your brand and your business idea memorable.

Overall, it doesn’t matter what the size of your business it. What matters is that you want to be proud of it and have people want to remember you. Branding can help that happen.

 

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