Role of Branding in the Success of a Business
Looking out into the world today, it’s easy to see the fierce competition between companies for similar products and services. Only those companies are winning these wars who are investing more heavily and strategically in their brand-building endeavors. This situation has increased the role of branding in the success and survival of any business.
Branding is the process of creating an appealing identity of your business and then increasing its credibility and visibility through various marketing activities. Your identity may include the name, tagline, and even logo or icon as a part of our visual identity.
As the world has come online, branding is more important now than ever in the past. Most of the people now look for the brand and its reputation while buying any products or services. A unique identity helps to identify your brand and differentiate it from other competitors. No branding, no differentiation, and hence no long-term profitability. People don’t have relationships with products, they are loyal to brands.
When Tata Motors bought Range Rover and Jaguar from Ford, what did they buy? Did they buy raw materials and factories? No, they bought the brands. A brand is the most valuable asset of your business, and it must be carefully crafted to resonate with your targeted customer base. Although brand building holds a lot of importance in your business, some major role of branding is further discussed in this article:
Recognition & Awareness
Branding makes people aware of your business so that they can easily recognize it among other products and services. It can help your business to stand out from the competitors and get noticed in the middle of the huge crowd. All these things can only be possible through unique brand identity.
Whether it’s your name, trademark, or symbol; all the elements are considered while talking about a brand. Your brand identity is how you showcase the values, strength, purpose, and of course products and services of your business. Everything that your organization demonstrates should be easily recognizable throughout the brand.
Establish Trust and Credibility
As people get to recognize your brand, they will start to increase their trust in your business. A professional appearance with stunning design and valuable content in your brand building strategy will help the company build trust with consumers. Businesses with proper branding create the impression of being industry experts and hence establish trust among clients.
Most of us would like to buy a product from a credible source where our trust lies. A strong and mindful branding campaign can nurture the positive perception of your brand among the people. It can build trust and makes your brand credible among people.
Earn Advocacy & Loyalty
Great brands have always clarity of what they stand for, and that’ why their customers are always their loyal participants. Investing in your brand is not just about spending money, it’s also about building an entity that resonates with your customers. It must communicate what your business stands for and calls to your community.
Advocacy is not what you can easily buy somewhere by spending money. It is earned over time through relevant strategies of brand building. Brands can rally people for or against something. The best brands connect with people both rationally and emotionally, and that can be difficult for companies in a purely digital environment.
Reduce your Excessive Marketing Cost
Both advertising and marketing are the major components of brand building. Strong branding of a business can support your marketing efforts and hence reduce the cost of these campaigns. We have already witnessed so many businesses that are investing highly in their marketing activities but not getting the desired return. This is because people don’t trust their offerings.
All those businesses who have not invested properly in their branding will not get support of their efforts towards advertising. That’s where the role of branding becomes more important. It can create an automatic mode of marketing for your brand, which is word of mouth marketing created by advocacy as discussed above.
Increases Monetary Value of Business
The brand has its own value as a separate asset, also known as brand equity. This value can be increased only by strong branding. If your company has great brand value, the customer will just pick up your product without any bargaining, even though its price is high. When an investor comes to invest in your business, he will also decide your value based on your current brand identity.
The value of a product increases in the market because a brand image is associated with it. This makes it a more appealing investment opportunity as it appears more established in the marketplace. As explained in the above example, why Tata Motors bought Jaguar and Range Rover form ford? Just because of the brand value. This is also because of a set of personality traits added by strong branding.
Reduces the Retention
The best way to work on the scalability of your business is to retain both your current employees and customers. If you are a big brand like Microsoft or Dell, it is very easy for you to retain your workforce. When an employee works for a renowned brand, he will feel a huge pride and satisfaction towards his job.
Working for a reputed brand gives them a surety of high package, recognition, and better opportunities in the future. A happy client or customer can always generate more referral business for your company. So, it’s your responsibility to give them a strong reason to feel good about your business.
Branding plays an inevitable role in the success of a business. Especially in the time of current economic challenges, brands perform better as compare to unbranded products. And in these tough times, there are still great brands being built. Many entrepreneurs still recognize opportunity and their brands will thrive in the coming years.
The role of branding is not limited to differentiating your business from others; it is also about how people perceive your brand. Building brands can develop an incredible value for companies and corporations.