What is a Brand?
What is a brand? Why is it important? What is a branding strategy?
There is a great deal being talked about 'the importance of branding' in marketing and design posts at present - much of which I find misleading and unhelpful. In this post I hope to put into plain words the case for developing a brand strategy, and some pointers on how to make a start. Firstly, though it is worth dispelling the myth that a 'brand' is a 'logo', it isn't...
Your brand is the entire experience your customers (and potential customers) have with your company. It’s what you stand for, the personality that you convey and the proposition you set. In short it is:
Branding is important because:
Successful branding also creates “brand equity” - the amount of money that customers are willing to pay just because it’s your brand (think Apple computers!). In addition to generating sales and income, brand equity itself makes your company more valuable in the long term.
Best case
Customers know exactly what you deliver
It’s easy to begin dialogue with potential customers because they understand what you stand for
You ‘close deals’ more quickly
You can charge a premium because your market recognises your better and is willing to pay for it
Worst case
It’s difficult to communicate with potential customers and convince them to buy
They have no impression of you and why you are better
What you say, how you say it, and what you do, contradicts itself and confuses your clients
Competitors who communicate more strongly and consistently have a competitive edge.
Competitive positioning (differentiation)
If it is clear how your offering is different from that of your competitors it’s easier to generate (the right type of) customers and guide them to buy. Without differentiation it can take more time (and therefore money) to explain why customers should choose you. As a result you can often end up competing on price. There are really only three main types of business proposition:
• Product Leadership
These are companies that are dedicated to innovation and quality - constantly working on new ideas and product improvements to bring to the market. They know what their competitors are doing and they strive to stay ahead in order to capture a greater share of the market
• Operational Excellence
A no frills service, just a good product sold at the lowest possible price. These are companies that focus on operational excellence and efficiency, so they can continually offer the best price in the market.
• Customer Focus
These are companies who focus on getting to know their clients so that that can deliver the best service/solution to their customers over time – they constantly strive to deliver on their promises in every interaction they have with their clients.
All of the above is straight-forward common sense, certainly none of it is 'rocket science'. True, it is difficult to be objective when looking at ones own business, but it is really worth investing in building a brand strategy (either on your own, or with the help of and external agency). Get it right and you will definitely reap the rewards...
There is a great deal being talked about 'the importance of branding' in marketing and design posts at present - much of which I find misleading and unhelpful. In this post I hope to put into plain words the case for developing a brand strategy, and some pointers on how to make a start. Firstly, though it is worth dispelling the myth that a 'brand' is a 'logo', it isn't...
Your brand is the entire experience your customers (and potential customers) have with your company. It’s what you stand for, the personality that you convey and the proposition you set. In short it is:
- The style/tone of language and images you use
- The type of messages you give on all your sales material (including the website)
- The way in which you (and your employees) interact with your customers
- Your customer’s opinion of you (against that of your competition)
Branding is important because:
- It differentiates you - helps you to stand out from your competition
- It defines you - positions you within your market sector
- It details you - consistently informs your customers and prospects why they should buy from you
Successful branding also creates “brand equity” - the amount of money that customers are willing to pay just because it’s your brand (think Apple computers!). In addition to generating sales and income, brand equity itself makes your company more valuable in the long term.
Best case
Customers know exactly what you deliver
It’s easy to begin dialogue with potential customers because they understand what you stand for
You ‘close deals’ more quickly
You can charge a premium because your market recognises your better and is willing to pay for it
Worst case
It’s difficult to communicate with potential customers and convince them to buy
They have no impression of you and why you are better
What you say, how you say it, and what you do, contradicts itself and confuses your clients
Competitors who communicate more strongly and consistently have a competitive edge.
Competitive positioning (differentiation)
If it is clear how your offering is different from that of your competitors it’s easier to generate (the right type of) customers and guide them to buy. Without differentiation it can take more time (and therefore money) to explain why customers should choose you. As a result you can often end up competing on price. There are really only three main types of business proposition:
• Product Leadership
These are companies that are dedicated to innovation and quality - constantly working on new ideas and product improvements to bring to the market. They know what their competitors are doing and they strive to stay ahead in order to capture a greater share of the market
• Operational Excellence
A no frills service, just a good product sold at the lowest possible price. These are companies that focus on operational excellence and efficiency, so they can continually offer the best price in the market.
• Customer Focus
These are companies who focus on getting to know their clients so that that can deliver the best service/solution to their customers over time – they constantly strive to deliver on their promises in every interaction they have with their clients.
All of the above is straight-forward common sense, certainly none of it is 'rocket science'. True, it is difficult to be objective when looking at ones own business, but it is really worth investing in building a brand strategy (either on your own, or with the help of and external agency). Get it right and you will definitely reap the rewards...
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