Branding is a marketing practice, which lets a company create its own name, design, or symbol for forming a unique identity. Many small businesses overlook branding as they think they are just a business and branding is for the companies with huge capitals. However, it is just a mistake they are committing because they are limiting the chance of converting themselves into a brand.
Just getting a fancy logo and business cards is not branding, having things like pens, files, diaries, mugs, etc. with your brand logo or name will help your business have its own identity among the target audience. Branding increases a business’s value, motivates the employees, and builds trust among the customers. Let us explore the benefits of branding in detail.
1. Branding Improves Recognition
The primary reason of branding is to ensure your brand is recognisable. If a person sees the logo of your company, they should instantly know that the logo belongs to your company.
Create a unique logo that is easy to spot and identify. The logo or the brand name should be small. Put that logo on your product, website, social media posts, etc. to associate with your product. Some names and logos induce emotions in people and have a better chance to keep the people attached to the brand. You can also distribute promotional items like pens, mugs, note pads, etc. to generate familiarity amongst your target audience.
Since we have said that branding does not limit to name and logo, the way your product looks or the way your employees interact with the customers contribute to branding. Even the packaging plays an important role. These distinctive characteristics can contribute massively to your brand recognition.
2. Branding Builds Trust
The foundation of any long-term relationship is trust, be it an emotional one or a professional relationship with your investors and customers. Trust is built with honesty, effective communication and genuine efforts, and branding ensures that your business is a professional and dedicated brand.
If a person was to come across your product in a supermarket and it is well packed and has an attractive name, they will expect your product to be good. Nobody likes to invest their hard-earned money in a product that does not display sincerity in its maker.
Similarly, you are less likely to crack a business deal if your company looks unprofessional. Greeting your future investors and clients with branded stationery like pens, notepads, envelopes, etc. will help in increasing their trust for your company.
3. Branding Increases Revenues
Suppose you sell cookies. A person comes and buys a packet from you and really likes it. The person would want to buy cookies from you again but if you do not have a brand, your potential customer would not be able to contact you. The person would not be able to refer your cookies without a name.
Branding gives your product or service an identity. If your branding is strong, the customers are more likely to trust your brand and buy from you. Existing customers will believe in your brand even more and will refer your product or service to others if they are satisfied. And there is no better way of promotion other than word of mouth.
If your brand name is strong and popular, you can charge higher for your product or service. This is because the customers trust you that if you are charging higher, you will provide better services.
For example, companies like Apple, Starbucks, etc. do not need promotion and can charge high for their products just because of their brand name. People do not go to branded companies just for their products but for their after-sales service, employee behaviour and because they feel valued.
Thus, branding is vital to keep current customers content, attract new customers, and explain why you are charging more.
4. Branding Motivates Your Employees
Branding creates a sense of belongingness among your employees. If you have a good brand name, the employees will proudly boast about working in your company. Their friends and family will also praise them for working in a good brand. This will motivate them to work harder.
If you are trying to build a brand, motivating your employees to work more efficiently will greatly help. They will know that you want to grow your business and include them in your growth. They will be motivated to contribute harder to the brand’s growth.
To remind your employees about your motive to flourish as a business, you can give them products like laptop bags, t-shirts, pens, bottles, mugs, etc. with your brand name. Doing so will generate a sense of pride in them whenever they use your branded product. If you are recruiting new employees, and give them branded merchandise, they will feel honoured to be a part of your company.
If your employees are happy to work in your company, they will talk to their friends and family about it. This will spread your brand name among their peers as well.
5. Branding Aids Advertising
Advertising is the most important part of a business, and in today’s world, advertising wisely is the key. It is because the internet not only has become the biggest platform for promoting but also has opened several other doors for advertising.
Advertising without a product identity is impossible. You cannot promote your product until it has a brand associated with it. Whether you select door-to-door sales, online advertising, offer free samples, or advertise on TV, magazines, and radios, you need a name and a logo to represent your product or service.
Selling also becomes easier with branding as it tells the customers what the company stands for and the sales agents do not have to repeat the company’s motives, details, etc.
Conclusion
Branding is the face of your product. Good branding will establish the product or service as worthy of client’s money. A strong brand will also make it easier to attract investment while developing a sense of belongingness amongst its investors and clients.
Thus, branding is the primary step to take if you plan to grow your business in the long run.