Read To See Why Branding Is Good For Your Company?
In a conference recently, a graphic designer and I sat down where people were swapping business cards. I checked out his logo, and he studied the name on my card.
"I know that business logo. We've been in touch before," I said.
"That's right. I know your name," he said.
Though we weren't able to determine when or why we'd exchanged mail previously, we guessed it was at least five years back. Neither of us has an exceptional memory. Instead, he had created a distinctive visual identity for his design services, and I had devoted effort to linking my name with creative marketing.
For at least five years his look and my status had lurked in the other's memory banks, whilst thousands or hundreds of thousands of other business identities had come and gone without leaving a substantial trace. Why? Memorability. It illustrates a key element of successful branding.
What is Branding?
Branding is the technique of creating unique and durable perceptions in the minds of people. A brand name is a persistent, unique business identity intertwined with associations of personality, quality, origin, liking and more.
Although many people relate brands with major companies, the smallest of businesses may use branding techniques with great benefits. When a home-based craftspersons ties a beautifully designed tag on all her products telling the story of who she is and where her creations originate from, she's branding her work. When the local market packages groceries in bags bearing its business logo in place of generic "Thank you!" or ordinary bags, it's branding. When your logo is exhibited with any of your internet marketing opportunities, it's branding.
Although we associate brands with national names such as Crest, Huggies or Healthy Choice, branding doesn't necessarily need the budgetary resources of Procter & Gamble. Branding doesn't even require a product or a tangible delivery system. Branding comes with repetition and that is easily done with any
internet marketing procedure.
Methods of branding include association of a company with logos, distinctive colors, slogans, musical sounds or songs, unusual features, mascots, the labels, a memorable name, behavioral hallmarks and much more, easily executed for the home based business as well.
Why Branding Pays Off
Time, money and effort spent on branding pays back many times over when the process plays out intelligently. Here's why:
1. Memorability. It's much easier to remember the branded company compared to the "what's its name?" one.
2. Loyalty. When people have a positive experience with a memorable manufacturer, they're more likely to purchase that product again as opposed to competing brands.
3. Familiarity. Psychologists have shown that familiarity induces liking, and this makes even non-customers more likely to suggest a brand name they are aware of.
4. Premium graphic, premium price. Branding can lift what you sell out of the realm of a commodity, with buyers willing to pay out more for the well-branded products.
5. Extensions. With a well-established brand, you can spread the respect you've earned to a related new product, service or location more easily.
6. Greater company worth. Making your company into a brand name usually implies that you can secure a higher price for the company when you decide to sell it.
7. Lower marketing expenses. Although you should put in money to create a brand, once it's made you get a bigger bang for every marketing buck using it.
8. For consumers, less risk. People tend to choose the brand-name supplier over the no-name one when scared of the consequences of a mess up.
For all those reasons and more, branding fattens your net profit.