I regularly come across companies that have not invested time or energy into their branding. They then struggle to compete with their competitors and stand out in the minds of their customers. Good branding can be the deciding factor that allows a good company to grow instead of becoming stagnant and dying.
For most business leaders, the term “branding” makes you think of logos and colors. For many, branding is perceived as the visual components of the business identity. However, branding is so much more.
Where the name comes from
It goes back to when people would take a hot iron and brand cattle to prove ownership. Each brand was a unique symbol that cattle owners used to represent themselves because writing a name on a steer was impractical. Since then, branding has evolved to include what you want people to think and feel when they see or interact with your company, not just a symbol as a stand-in for your name.
A large part of branding is how you differentiate your company from others. It’s what makes your company unique in the eyes of your customer.
What is branding
Branding Mag explains branding best, so I’ve pulled out great points, but you can read the whole article here.
“For the most part, a strong understanding of branding requires a decent grasp of business, marketing, and even (human) relational basics. Branding is such a vast concept that a correct definition that truly encompasses everything that it represents would not bring too much clarity to the subject just by itself. But, for the sake of lowering the propagation of obsolete, incorrect, and incomplete information about branding, we offer a more complete definition:
Branding is the perpetual process of identifying, creating, and managing the cumulative assets and actions that shape the perception of a brand in stakeholders’ minds.” Source
Such a great definition.
But branding doesn’t affect my bottom line, or does it?
Good branding has a direct and positive impact on your bottom line.
“Branding is important when trying to generate future business, and a strongly established brand can increase a business’ value by giving the company more leverage in the industry. This makes it a more appealing investment opportunity because of its firmly established place in the marketplace.” Source
The goal of branding creates trust in the marketplace because it is all about your reputation. How much do your customers trust you, your company, and your offering? The more a customer trusts your brand, the better the brand’s perception becomes, which results in a stronger brand.
And once your customers trust your business, you will see more referrals and word-of-mouth growth. Branding makes it easier for your customers to be familiar with and feel confident in your business.
“Branding can change how people perceive your brand, it can drive new business, and increase brand value – but it can also do the opposite if done wrongly or not at all.” Source
Now what?
It is easy to understand how beneficial good branding is for your business. However, this article only scratches the surface on the multilayered nuance that is good branding. But don’t assume that only big companies with lots of money can do branding correctly.
I encourage you to ask your customers what sets your company apart from your competitors and why they buy from you. If the answers aren’t what you were expecting, vary from person to person, or don’t match your current branding, then it’s time to get help. Poor branding can cost you exponentially more in reputation, trust, and your ability to gain new customers than the investment of receiving an expert’s help.
Let’s talk
If you are concerned that your lack of branding is hurting your business, I can help. Contact me today for a free one-hour consultation. Developing a brand and branding strategy are some of the many things Glover Strategic Marketing can help you achieve. There is no obligation and no pressure, just a frank discussion of your company’s needs and goals. So what are you waiting for?
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