The term branding is enveloped with a lot of ambiguity and discordance. The definition of branding is not just limited to the visual identities and symbols but has evolved with time and has many folds to it. Branding can be defined as the steps and strategies involved in creating a perception of a brand and its products/services. These include visual identities (logo, packaging, etc.), mission and vision, marketing communications, and every other asset which contributes towards building the perception.
Why is Branding so important?
Many industry experts and marketers preach branding as visual identities, which is an age-old definition. Understanding the core meaning of the term 'Branding' is important before creating awareness about it or talking about its importance. It is a principal subject for every organization which affects both their top line and bottom line.
It should be designed with a lot of planning, a calculated approach, and collective efforts from key stakeholders. It will thus result in a strong branding strategy that builds a strong foundation for an idea to develop.
Here are a few points that state why it is important:
Increases Valuation of the organization – A good reputation of a brand boosts sales and makes it credible. This draws the attention of the investor and takes the brand to new heights.
Reach and expand the target audience groups – A good strategy identifies the right target audience who would need the product or service. It also helps in scaling up the audience category by solving those problems that are not addressed by the competitors. It can always keep a brand walk ahead of its peers in the industry.
Build a strong relationship with customers – The appropriate strategy will retain the existing customers. The reason being the trust they hold in the brand. It is essential to provide the end-users with an unforgettable experience and develop a strong bond that turns them into brand evangelists.
Elements of Branding
Like Rome was not built in a day, branding strategy can’t be drafted overnight. It is tedious and needs continuous effort. All the stakeholders come together and participate in fabricating a strong branding strategy. Here are the ten key elements which are a part of the brand-building exercise:
Brand Identity – Brand identity is a collection of visual elements that symbolize a company's ideals and help customers remember and differentiate a brand from hundreds of others. It aids in the formation of customer perceptions of a firm, the development of loyalty and trust, and the creation of a memorable brand. E.g.,- Logo, Tagline, Brand Colours, etc.
Brand Image – Brand Image can be defined as the impression of the brands in the minds of the audience. It is perceived by the audience based on their interactions with the brand. David Aaker, a leading branding academician proposed the definition as: “A set of associations relating to things like product attributes, benefits or price organized in a meaningful way”.
Brand Positioning – Brand Positioning is the perception that a brand wants to create in the mind of the audience about its services or products. It also defines the set of audiences it is targeting with its offerings. It differentiates the brand from its competitors and helps in building a unique selling proposition.
Brand Personality – Brand Personalities are the attributes that define the characteristics of a brand and thus its personality. It brings certain human qualities and emotions that the audience associates with a brand. E.g.: - A luxury brand, A youthful brand, etc.
Brand Equity – Brand Equity is the value of the brand in the eyes of the audience in comparison to its generic equivalent. It includes both financial and strategic aspects. The revenue, shares, marketing, and branding plans, all the strategic decisions help build brand equity.
Brand Experience – It is the combination of all the feelings and emotions of a consumer at every touchpoint with the brand. All the cumulative emotions from the target audience create this experience. It is a summary of a target audience’s journey of finding about the brand till their conversion as consumers.
Brand Differentiation – It is the strategy designed to communicate the brand’s unique features that help the audience distinguish them from their competitors. It highlights the brand and has an added advantage over others in the industry.
Brand Communication – Brand communication is an important tool for the company that helps them to interact with their target audience, create awareness about product/service, enlighten them about the values, fundamentals, and strengths, and convince them to use the brand’s offerings.
Brand Gap – It is the measurement metrics where a brand can compare what has it promised to deliver to the target audience and what has it been delivering. It is necessary to keep a tab on the promises and customer satisfaction to ensure the target audience are not drifting away from the brand because of the discrepancy.
Brand Extension – It is the strategy that a brand adopts when it wishes to expand its product line or use the same brand name to venture into a new category that could provide completely different offerings. This is a strategic move taken by the brand when it realizes that it has the scope to address the needs and demands of the customers with low risk and high results.
Conclusion
It is time to break the myths around branding. It is not just the visual aesthetics of a brand but also includes the strategic move that enhances the reputation and identity in the market. It is rightly said by Tom Goodwin :
Brands are essentially patterns of familiarity, meaning, fondness and reassurance that exists in the minds of people.
The branding elements are those pillars and touchpoints that a brand should revisit as it keeps evolving. Branding is not just an experience for customers but also an experiential journey for the brand’s creators. Ideas translate into actions, and actions build the 'Brand'.