Branding is one of the essential concepts in marketing a business. Marketing helps a business to establish and develop a brand. Marketing involves the interactive communication process between the company and its customers. This includes market research to determine the needs and wants of the market. But what makes branding a marketing essential? Let’s discuss it further below.
Companies make brands using impressive names, symbols such as logos, other images, and phrases. Branding gives a better meaning to a company’s name and its product. By building a recognized brand in your market, you can reduce your usage of traditional marketing habits. This because your branding strategy itself can increase loyalty and referrals from your customers.
Branding is an important marketing tool used to motivate recognition. When a product and service is branded effectively, it develops its own personality and reputation. A successful branding campaign will surely stand out among its competitors.
Brand Strategy and Equity
Strategic branding is a long-term plan for the development of a successful brand in order to achieve your company’s specific goals. A well-defined brand strategy affects all aspects of a business and directly responds to consumer needs, emotions, and competitive environments. Strategic branding will lead you to a strong brand equity; which means the value of your product and service will allow you to charge a higher amount of your brand.
Branding is an important decision when developing a new product. The brand can add a significant value when it is well recognized and has positive relations in the mind of a consumer.
According to John Williams of Entrepreneur:
‘’ The most obvious example of this is Coke vs. a generic soda. Because Coca-Cola has built powerful brand equity, it can charge more for its product–and customers will pay that higher price.’’
However, marketers must be aware that brand equity is not always positive in value. Some brands acquire a bad reputation that results in negative brand equity. Negative brand equity can be measured by surveys in which consumers indicate that a discount is needed to purchase the brand over a common product.
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