Why Branding Important?
There are various definitions of branding defined by marketing gurus; from a marketing technique that helps companies establish a unique presence in the marketplace whilst differentiating from their competitors; to the sum of all the words, pictures, values, perceptions, stories and expectations that surround a business ~ a ‘promise’ of what your customers can expect from you. The following are the key elements of building your brands that are essential for all SMEs to know:
There are many similarities in the way large and small businesses achieve success. As both require a well-established “brand name” to create increasing value and effectively market their products or services, establishing a strong brand name is fundamental for any business to compete and grow.
Brand-building plays an important role of defining your organisation in the public eye. It is an integral part of an SME’s marketing mix and expenditure. Successful SMEs traditionally display a strong entrepreneurial spirit, and leverage that spirit through a defined culture in order to provide innovative services and products. In fact, brand image must be consistently delivered and supported by the organisation’s values and culture. A well-structured strategic planning process requires full consensus on brand strategy and develops integrative sales and marketing promotion programs which must align with the overall business strategy in order to create brand value.
6 Reasons Why A Strong Brand Is Important For Your Small Business :
1. Branding Improves Recognition
One of major components of your brand is your logo. As the “face” of a company, logo design is critical because that simple graphic will be on every piece of correspondence and advertising. A professional logo design is simple enough to be memorable, but powerful enough to give the desired impression of your company.
2. Branding Creates Trust
A professional appearance builds credibility and trust. People are more likely to purchase from a business that appears polished and legitimate. Emotional reactions are hardwired into our brains, and those reactions are very real influencers.
3. Branding Supports Advertising
Advertising is another component of your brand. Both the medium chosen and demographic targeted for advertisements builds a brand. Too narrow an advertising focus, and a company risks being “pigeon holed” and losing their ability to expand into new markets. Too broad a focus, and the company fails to create a definable impression of the company in the minds of would be customers.
4. Branding Builds Financial Value
Companies who publicly trade on a stock exchange are valued at many times the actual hard assets of the company. Much of this value is due to the branding of the company. A strong brand usually guarantees future business. Whether a company is in the position to borrow funds for expansion or rolling out to an IPO, being perceived as more valuable will make the process advantageous for the owner of the payday loans online company. The greater a company’s devotion to build its brand value, the better the financial return from its efforts.
5. Branding Inspires Employees
Many employees need more than just work— they need something to work toward. When employees understand your mission and reason for being, they are more likely to feel that same pride and work in the same direction to achieve the goals you have set.
6. Branding Generates New Customers
Branding enables your company to get referral business. A large reason ‘brand’ is the word used for this concept is that the goal is an indelible impression. As the most profitable advertising source, word of mouth referrals are only possible in a situation where your company has delivered a memorable experience with your customer. The most profitable companies, small and large, have a single thing in common. They have established themselves as a leader in their particular industry by building a strong brand.
Source : Small Business Resource Centre
With the right branding and “packaging”, a business can greatly expand its sales potential. However, most SMEs undervalue the importance of branding.
The following are some tips to keep in mind when creating value through brand building: Know your clients’ needs better than anyone else Plan your marketing strategy, prioritise, and stick to your plan Fuel the strategy with a culture that reflects your brand position Translate these into all branding and communication activities