“Every advertisement should be thought of as a contribution to the complex symbol which is the brand image.” – David Ogilvy
The word ‘brand’ and ‘branding’ is thrown around rather liberally, but what does it really mean? Well, branding is the creation of a holistic symbol that identifies the product and differentiates it from all other similar products. However, the concept of branding—and the idea of branding oneself—can be swathed with uncertainty and can easily be misunderstood by businesses as a marketing gimmick. In reality, branding is one of the soundest investments any business can make—especially if it is in the midst of stagnant growth, dwindling profits, or even just a good old existential crisis.
Still not convinced about investing in branding? Here are 5 ways branding will positively impact your bottom line for years to come and yield exponential returns over the life of your business.
You Know Your Customers
Customers love brands. They recognise them, are surrounded by them, and they go into showrooms searching for one. There are several reasons for this behaviour, the perceived quality of a brand strikes an emotional chord with some and people subconsciously believe that brands make them become a better version of themselves.
For sales, brand perception is one of the most important contributors to performance. Hence, brands like Apple or Nike persistently invest in branding despite the popularity to strengthen their market position.
You Choose Your Customer
A successful branding project involves rigorous market research that helps them create a buyer persona. Instead of trying to appeal to a wider audience, branding enables you to aim more accurately on customers who align with your company’s values, goals, and culture.
This clearly defined customer personas enable you to craft messaging targeted at the right customers. This approach will lay a foundation for customer loyalty and later turn them into brand advocates. Happy customers will spread the word thus amplifying your ROI.
You Command A Premium Price
‘A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is’. Solid branding gives you the authority to position yourself as an expert in your industry. By embracing your core values, you add authenticity which in return allows you to command a high price of your products and services, and it will also boost the price of your shares.
Customer behaviour is one of the most important factors when it comes to any company’s commercial performance, and it has a direct impact on how the brand is perceived. The brands that resonate with customers and are able to justify their worth will always have an added advantage and command higher prices for their products or services.
You Spend Less, Save More
The world we know today is shaken by the coronavirus pandemic and the following economic crisis. In this financial crunch, many ventures are put on hold. What survives are strong brands.
In trying times, it is wise not to waste efforts on a scattergun approach, an in-depth – understanding of your audience enables you to create highly targeted campaigns to your most valuable audience.
Bold and reliable brand identity will increase the effectiveness of your marketing strategy because all your efforts will be seamlessly integrated. Engaging, innovative, and well executed-campaigns naturally generate interest and buzz. An organically discovered brand underpinning the authenticity of the brand and its message is capable of surviving potential hardships and economic turmoil.
You Get More Sales
In today’s oversaturated market where hundreds of competitors breathing down your neck, a well -defined branding gives your sales team the added advantage to close deals with ease. Products with a compelling narrative woven into their brand strategy is a powerful bonus.
The perception of your brand will determine the behaviour of your customers, which in turn determines the way that your brand performs financially. The time and money that you invest in your brand and branding strategy today will build brand equity which will boost the value of your business and when the time comes, the brand itself will be a valuable asset.
Branding is not an overhead expense against your marketing budget, it is a spectrum that adds value, influences decisions, and answers the most crucial question “Why does your company exist?”.
It is a sum of all your attempts to create a persona for your business, and it may not be tangible but its impact is tremendous. Needless to say, only a synergy of branding and marketing will boost the visibility of your business and inspire loyalty and credibility in your customers.