Why is Branding Essential to Business Success?

What is Branding?

Branding is often misunderstood and over-simplified. Often, business owners and managers think of branding as simply the visual aspect of a business, such as a logo, colors, and font, but there is so much more to effective branding.

"On the outside, your brand may seem like it consists only of elements such as logos and colors, but your brand is actually the entire identity of your business. Your brand gives your personality," As Forbes states. "With the right branding, you have the chance to get some control over how people perceive your business, so you don't want to overlook this."

Brandingmag provides a great definition: "Branding is the perpetual process of identifying, creating, and managing the cumulative assets and actions that shape the perception of a brand in stakeholders' minds."

Branding should make your business memorable, show what your company stands for, let customers know what to expect from your business, distinguish your business from your competitors, and communicate what makes your brand a better choice.

So, you can see why effective branding must include much more than just the visual aspect of your business. A logo can't accomplish all that. Several elements, including advertising, visuals, customer service, reputation, and social responsibility, must work together to create a unique brand all your own. In addition, all stakeholders – potential and existing clients, employees, business partners, vendors, etc. – must have a clear perception of your brand.

It's also important to remember that things change – businesses, industries, advertising, etc. Heraclitus said, "The only constant in life is change." Ben Franklin said, "When you are finished changing, you are finished." Therefore, effective branding needs to be consistent but, at the same time, flexible.



Why is Branding Essential to Your Business Success?

Once you understand branding, you can begin to see why it is essential to your business's success. Here are just a few benefits of effective branding:

• Helps people recognize your brand – If people positively remember your brand, they're more likely to turn to your business when purchasing your product or service.

• Builds trust – People buy from businesses they trust, and if you create a brand that resonates with them AND delivers on its promise, you build trust.

• Increases business value – It may be hard to quantify the value of a brand, but a good solid brand does increase the value of your business. A good brand gives you more leverage in your industry, makes investing in your business more attractive, and increases the overall value of your business.

• Creates referral business – A strong brand that generates a positive impression encourages referral business because people like doing business with companies they are familiar with and consider dependable and trustworthy. And they like sharing that business with friends and family. Creates loyal customers – Branding helps give your business a human side that customers can relate to and want to do business with. "In many ways, you can appeal to people's emotions through branding and make them feel more connected to your company," Forbes states. "Branding allows you to build relationships with your audience, which can eventually turn them into loyal customers. You can create a brand that people actually care about and put yourself ahead of businesses that aren't using this to their advantage."

• Attracts better employees – Creating a positive brand helps attract and retain better employees. Forbes states, "A company with great branding will have an easier time getting employees to feel involved with something more than just a job."



Start Growing Your Business With a Great Brand!

If you want to increase sales and grow your business by going beyond visual branding, PMI can help. Call us today at 484-297-6395, or contact us online for a free branding consultation.